Overview wessanen april 2011

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Overview wessanen april 2011

  1. 1. Royal Wessanen nv Who we are: an overview (updated: April 2011) “ To make our brands most desired in Europe”
  2. 2. Royal Wessanen - who we are <ul><li>A long and rich history as a food company </li></ul><ul><li>Incorporated in 1765; Royal since 1913; listed on Euronext since 1959 </li></ul><ul><li>2010 revenue €712 mln; over 2,200 employees </li></ul><ul><li>Headquartered in Amsterdam </li></ul><ul><li>Operations in the Benelux, France, Germany, UK, Italy, USA </li></ul><ul><li>A leading player in the major organic food markets in Europe </li></ul><ul><li>2 non-core segments </li></ul><ul><ul><li>Frozen Foods: A leading producer/marketer of frozen snacks in the Benelux </li></ul></ul><ul><ul><li>ABC: A leading producer fruit drinks/cocktail mixers in the US </li></ul></ul>
  3. 3. Revenue 2010 €712 mln WE Grocery Revenue €231 mln EBITDA €12 mln Avg. Capital Employed €66 mln FTE’s 435 Frozen Foods Revenue €116 mln EBITDA €9 mln Avg. Capital Employed €56 mln FTE’s 505 WE HFS Revenue €273 mln EBITDA €11 mln Avg. Capital Employed €95 mln FTE’s 837 ABC Revenue €93 mln EBITDA €2 mln Avg. Capital Employed €46 mln FTE’s 382 Corporate centre & non-allocated EBITDA €(11) mln FTE’s 63
  4. 4. A long and rich history 2015 will mark 250 th anniversary of Wessanen <ul><li>Incorporated in 1765 around river De Zaan, when Adriaan </li></ul><ul><li>Wessanen started to trade in mustard, canary and other seeds </li></ul><ul><li>Around 1910 introducing first consumer products like </li></ul><ul><li>oatmeal and cocoa </li></ul><ul><li>Distinguished title Royal in 1913 (98 years ago!) </li></ul><ul><li>Listed on Euronext Amsterdam since 1959 </li></ul><ul><li>Seventies, eighties, nineties - range of acquisitions, like </li></ul><ul><ul><li>1986 - Tree of Life, Inc </li></ul></ul><ul><ul><li>1993 - Merger Bols and Wessanen (split 1998) </li></ul></ul><ul><ul><li>2000/01 - Acquisition Distriborg, Zonnatura, Natudis </li></ul></ul><ul><ul><li>2002 - Divestment Leerdammer </li></ul></ul><ul><ul><li>2006 - Divestment Delicer/Delicia </li></ul></ul><ul><ul><li>2010 - Divestment Tree of Life, Inc </li></ul></ul><ul><li>Strategic reorientation in 2009  focus on organic food in Europe </li></ul>
  5. 5. Key figures ¹ Continuing operations; ² Attributable to Wessanen equity holders 309 269 Average capital employed 150 177 Shareholders’ equity 2,276 29 (6.1) 19.8 5.3 712 FY 2010 175 Net debt 13.3 ‘ Normalised’ EBIT ¹ (219.7) Net result ² 2,139 (44.4) 703 FY 2009 EBIT ¹ Average number of FTEs Revenue ¹ In € million
  6. 6. Organic food market is still attractive <ul><li>Consumer perspective </li></ul><ul><li>Organic food engaged mainstream consumers </li></ul><ul><li>Penetration 70%  consumption per capita low </li></ul><ul><li>Mainstream consumer willing to pay price premium (~20%) </li></ul><ul><li>Consumers seek clear consumer benefits from organic </li></ul><ul><li>Market perspective </li></ul><ul><li>Total European organic market €19 bn in 2010 </li></ul><ul><ul><li>Historically, growth ±10% p.a. up to 2008 </li></ul></ul><ul><li>In 2010, organic markets showed limited growth </li></ul><ul><ul><li>Particularly HFS being weak </li></ul></ul><ul><li>Organic food industry dynamics become similar to conventional ‘FMCG’ markets </li></ul><ul><li>Per capita consumption still low </li></ul><ul><ul><li>Organic 2.6% of total spending on food/beverages </li></ul></ul>
  7. 7. Organic food - an evolving European market place <ul><li>One single European certification </li></ul><ul><li>Organic has hit mainstream consumers </li></ul><ul><li>Next generation organic products have to deliver clear consumer benefits </li></ul><ul><li>Consumer price based on perceived value and consumer benefits </li></ul><ul><li>Private label has become more a price reference point </li></ul><ul><li>‘ Organic’ image builder for grocery </li></ul><ul><li>More competition between HFS and grocery </li></ul>
  8. 8. Our Vision <ul><li>“ To make our organic brands most desired in Europe” </li></ul><ul><li>Our organic brands … </li></ul><ul><li>… provide you the organic benefits and experience of pure nutrition & real taste, </li></ul><ul><li>… contribute to social & ethical values and </li></ul><ul><li>… offer a variety relevant food products which are affordable </li></ul><ul><li>Most desired … </li></ul><ul><li>… by the growing organic mainstream consumer and our core consumer base </li></ul><ul><li>… because of our pioneering and prominent organic brands across Europe </li></ul><ul><li>… in grocery (both dedicated & mainstream shelf) and specialty channels </li></ul><ul><li>… as organic authority towards all relevant stakeholders </li></ul><ul><li>… in our chosen markets: France, Benelux, UK, Germany and Italy </li></ul>
  9. 9. Our Mission <ul><li>“ Our organic food, your natural choice” </li></ul><ul><li>Why should consumers buy into our organic food? </li></ul><ul><li>Organic food is good for you, our living planet and the next generation </li></ul><ul><li>An important feature of organic food is that it is sustainable in every aspect </li></ul><ul><li>Our pioneering organic food brands make the difference </li></ul><ul><li>What makes our organic food your natural choice? </li></ul><ul><li>We want to make the difference with daily organic grocery shopping </li></ul><ul><li>We want to contribute to making our dietary pattern more organic and making the world of food a bit more organic </li></ul><ul><li>We need to make organic nutritious, tasteful and affordable for </li></ul><ul><li>consumers </li></ul><ul><li>Because of the three motives above, our organic food makes sense </li></ul>
  10. 10. Roadmap focused on 3 different business models Brands in Grocery Description <ul><li>Sourcing/developing, marketing and selling of own brands to grocery </li></ul><ul><ul><li>Including distribution to distribution centers and/or stores </li></ul></ul>Countries, Brands & Entities France: Bjorg, Benelux: Zonnatura, Biorganic, Merza UK: Kallo, Whole Earth Germany: Whole Earth Italy: Bjorg <ul><li>Sourcing/developing, marketing and selling of own brands to HFS </li></ul><ul><ul><li>Via wholesaler in Germany </li></ul></ul><ul><ul><li>Direct to stores (France, NL) </li></ul></ul>France: Bonneterre, Evernat NL: Ekoland, De Rit, Fertilia Germany: Allos, Tartex, De Rit Brands in HFS <ul><li>Sourcing, category management, sales and distribution to HFS stores </li></ul><ul><ul><li>Focus on full range product portfolio and high share of products per store </li></ul></ul>France: Biodistrifrais, Kalisterra NL: Natudis, Kroon Belgium: Hagor UK: TOL UK Whole-sale In HFS Business
  11. 11. Our building blocks <ul><li>There are six important assets on which Wessanen’s success is built, </li></ul><ul><li>reasons why our brands will be your natural choice and why </li></ul><ul><li>Wessanen can make its organic brands the most desired in Europe: </li></ul><ul><ul><li>Passionate people </li></ul></ul><ul><ul><li>Pioneering brands </li></ul></ul><ul><ul><li>Customer partnerships & multi-channel approach </li></ul></ul><ul><ul><li>Network of strategic supplier partnerships </li></ul></ul><ul><ul><li>European scale </li></ul></ul><ul><ul><li>Unique expertise & industry authority </li></ul></ul>
  12. 12. European brand-platform-category map <ul><li>Organic Nutrition </li></ul><ul><li>Dairy alternatives </li></ul><ul><li>Biscuits (nutrition) </li></ul><ul><li>Bread replacers </li></ul><ul><li>Cereals </li></ul><ul><li>Tea </li></ul><ul><li>Spreads (nutrition) </li></ul><ul><li>Organic Taste-Indulgence </li></ul><ul><li>Spreads </li></ul><ul><li>Biscuits </li></ul><ul><li>Cereals </li></ul><ul><li>Juices </li></ul><ul><li>Organic Taste-Cooking </li></ul><ul><li>Condiments </li></ul><ul><li>Bouillon, Stock & Gravies </li></ul><ul><li>Meal components </li></ul><ul><li>Ready meals </li></ul>France Grocery HFS TBD TBD TBD Netherlands Grocery HFS Germany Grocery HFS UK Grocery HFS TBD TBD Other Europe Grocery HFS TBD Consumer Benefit Platform <ul><li>Organic Basics </li></ul><ul><li>Multi categories </li></ul>TBD TBD TBD TBD TBD TBD TBD TBD
  13. 13. Requiring strong central steering and different organisation and governance model Financial Holding Strategic Architect Strategic Orchestrator Operator Financial Strategic guidelines Strategic development Operational Stand-alone business Shared skills Shared business systems Same business systems Degree of Business Integration Nature of Corporate Guidance Wessanen in transition Maximize value creation by adapting governance model, decision rules and effciency and effectiveness HQ support functions
  14. 14. Strategic objectives 2011-2013 <ul><li>Top-line growth </li></ul><ul><ul><li>Market share gains in core categories and brands </li></ul></ul><ul><ul><li>Add-on acquisitions </li></ul></ul><ul><li>Improve EBIT-margins </li></ul><ul><ul><li>Increase gross margins (central Sourcing savings, richer product mix) </li></ul></ul><ul><ul><li>Manage non-core brands for cash </li></ul></ul><ul><ul><li>Increase capacity utilisation own factories </li></ul></ul><ul><ul><li>Reduce overhead costs </li></ul></ul><ul><li>Grow our export business and aim to establish footprint in other European countries </li></ul><ul><li>Improve operational performance / Establish cross-country organisation </li></ul><ul><li>Raise the overall talent bar / Increase people engagement </li></ul>
  15. 15. Wessanen Europe Grocery <ul><li>Focus on organic food being sold via grocery. </li></ul><ul><li>Active in Benelux, France, Germany, Italy and UK via own operations. </li></ul><ul><li>The grocery channel involves sourcing, development, marketing and </li></ul><ul><li>selling of own brands to grocery retailers. Deliverance of our products </li></ul><ul><li>both to distribution centres and directly to stores. </li></ul><ul><li>Our brands include Bjorg, Whole Earth, Kallo, Zonnatura and Biorganic. </li></ul><ul><li>Revenue €231 mln (2009: €221 mln) </li></ul><ul><li>FTEs 435 (of which in the Netherlands 37) </li></ul>
  16. 17. Point of Sales PR 100,000 Samples Promotions Print Radio Ambient near outlets Whole Earth - Munich introduction Second ’City campaign’ after successfull launch Hamburg
  17. 18. Wessanen Europe HFS <ul><li>Focus on organic food being sold via Health Food Stores (HFS). </li></ul><ul><li>Active in Benelux, France, Germany and the UK; also export </li></ul><ul><li>Two business models: </li></ul><ul><li>Brands involve sourcing, development, marketing and selling of </li></ul><ul><li>our own brands to HFS. Distribution is either via wholesalers (in </li></ul><ul><li>Germany) or direct to stores (France, the Netherlands). </li></ul><ul><li>ii) Wholesale involves sourcing, category management, sales and </li></ul><ul><li>distribution to HFS. Full-range product portfolio and high share of </li></ul><ul><li>products per store. </li></ul><ul><li>2010 revenue €273 mln </li></ul><ul><li>FTEs 837 (of which 203 in the Netherlands) </li></ul>
  18. 20. <ul><li>Hilversum </li></ul><ul><li>Zwolle </li></ul><ul><li>Almere (opened 31 March) </li></ul><ul><li>Apeldoorn (opening in summer) </li></ul><ul><li>5-10 openings per year </li></ul>
  19. 21. Frozen Foods <ul><li>Produces and markets frozen snack products in out-of-home, grocery and </li></ul><ul><li>foodservice channels in Benelux and via export. Strong market positions. </li></ul><ul><li>Beckers Benelux: production in Katwijk (spring rolls) and Deurne (bread </li></ul><ul><li>snacks). Production and sales of strong brands like Beckers and Bicky in out </li></ul><ul><li>of-home, grocery and foodservice channels in the Benelux. </li></ul><ul><li>Favory Food Group (64.1%): production facilities in Bocholt (B) (meat </li></ul><ul><li>snacks) and Deurne (meat and breadcrumb snacks). </li></ul><ul><li>Production basic snack assortment for Beckers and production and sale </li></ul><ul><li>private label products to major retailers and out-of-home wholesalers. </li></ul><ul><li>2010 revenue €116 mln </li></ul><ul><li>FTEs 505 (of which 369 in the Netherlands) </li></ul>
  20. 23. American Beverage Corporation (ABC) <ul><li>In North America, one of the leading producers of non-carbonated </li></ul><ul><li>value-priced fruit drinks (Little Hug) and premium cocktail mixers </li></ul><ul><li>(Daily’s) </li></ul><ul><li>A variety of products from kids’ drinks to cocktail mixers. It is </li></ul><ul><li>based in Verona (PA), where it also has a large production plant. </li></ul><ul><li>ABC operates within both grocery and out-of-home channels using an </li></ul><ul><li>extensive network of brokers and distributors to market and sell its products </li></ul><ul><li>throughout the United States. </li></ul><ul><li>We intend to divest, in principle, ABC in 2011 </li></ul><ul><li>2010 revenue €93 mln </li></ul><ul><li>FTEs 382 (yearend 2010) </li></ul>
  21. 25. Royal Wessanen nv “ To make our brands most desired in Europe”

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