Dole foods south carolina final presentation 1

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Dole foods south carolina final presentation 1

  1. 1. Katie Platzbecker Amanda Peters Raghav Mehra Andy Schwark L O O K I N G F O R W A R D November 3, 2007
  2. 2. Background AGENDA Analysis Recommendations Implementation Plan Question & Answer Conclusion
  3. 3. Who are we? <ul><li>The world’s largest producer and marketer of fresh fruit, fresh vegetables and fresh-cut flowers </li></ul><ul><li>The world’s largest producer of bananas and pineapples </li></ul><ul><li>An industry leader in packaged fruit products, ready-to-eat salads and vegetables </li></ul><ul><li>A responsible company that cares about Its customers and communities </li></ul>Background
  4. 4. Who are we not? <ul><li>An industry leader in juice sectors </li></ul><ul><li>A primarily specialty/organic foods producer </li></ul><ul><li>A self-sufficient produce supplier </li></ul><ul><li>A produce retailer </li></ul>Background
  5. 5. Key Facts <ul><li>Privately held since 2002 </li></ul><ul><li>Maintains Food Operating Divisions in 38 countries around the world </li></ul><ul><li>Food Marketing Divisions are located in 76 countries </li></ul><ul><li>Some primary competitors include Chiquita, ConAgra Food Service, Bruce Church, Lamb-Weston Inc. </li></ul>Background
  6. 6. With continually evolving consumer demands, how do we increase market share while maintaining profitability and brand integrity? Statement of Problem
  7. 7. Integrating healthy products to appease new market demand Critical success factors drive decision making Creating efficient distribution channels Maintaining brand image and quality reputation Critical Success Factors
  8. 8. Maintain robust supply chain and distribution network Expand to include vegetable and other nutritional blends Continue community outreach and corporate aid Incorporate more varied exotic fruits into production Increase market share and control aspects of the fruit market Metrics of Success
  9. 9. <ul><li>Health-Conscious is in ! </li></ul><ul><li>High Demand for Natural, Preservative-Free Foods </li></ul><ul><ul><li>“ Positive Nutrition” </li></ul></ul><ul><ul><li>Super Foods </li></ul></ul><ul><li>The Scene in Numbers: </li></ul><ul><ul><li>65 % of Paneled Consumers Try to Eat More Healthily! </li></ul></ul><ul><ul><li>Demand for Super Foods Doubled from 2001 to 2011 </li></ul></ul><ul><ul><li>Pomegranates: 500 % Increase </li></ul></ul><ul><ul><li>Soy Use Tripled from 2001 to 2006 </li></ul></ul><ul><ul><li>Blueberry Sales: Up 132 %! </li></ul></ul>Consumer Trends
  10. 10. 3.5 % 2.5 % 1.5 % <ul><li>Continued Growth in Global Juice Market </li></ul><ul><ul><li>2005 Total Revenues: $52.5 billion </li></ul></ul>Industry Analysis
  11. 11. <ul><li>EU Market: CAGR of 4.3% and $ 21.7 billion </li></ul><ul><li>US Market: CAGR of 2.1% and $ 21.9 billion </li></ul><ul><li>Success in nectar and fruit drinks </li></ul><ul><li>Higher demand for NFC </li></ul><ul><li>Market performance slated to accelerate </li></ul>Industry Analysis
  12. 12. 2.65 % 2.55 % 2.40 % 2.35 % Industry Analysis
  13. 13. Global Juice Competition Industry Analysis
  14. 14. Expand to new sectors Introduce new products Create an efficient supply chain Build on Social Responsibility 1 2 3 4 Recommendations
  15. 15. <ul><li>Organic Food </li></ul><ul><li>Positive Nutrition Movement </li></ul><ul><ul><li>All Natural, No Preservatives </li></ul></ul><ul><li>Juices </li></ul><ul><li>Vegetable Juices </li></ul><ul><ul><li>Low calories </li></ul></ul><ul><ul><li>More Complete Nutritional Blend </li></ul></ul><ul><li>Price Differential </li></ul>New Sectors
  16. 16. A Health-Conscious European Distribution Partner <ul><li>Distribution to New, Pro-Health Chains </li></ul><ul><li>Exki: a Belgian organic food retailer/restaurant </li></ul><ul><li>EU Entry Point: Antwerp </li></ul>
  17. 17. <ul><li>High-End, Nutrition-Oriented Retailers </li></ul><ul><li>The Fresh Market, Whole Foods, Publix Grocery Stores </li></ul><ul><li>East Coast Concentration-facilitates supply chain management and maintains freshness </li></ul>The Fresh Market Network… American Distribution Partners
  18. 18. <ul><li>Organics have grown at a rate of nearly 20% per year for the last seven years. </li></ul><ul><li>Market expected to expand from $26 billion in 2001 to $80 billion in 2008. </li></ul><ul><li>Countries with higher disposable income tend to spend more on organic foods than poorer countries. </li></ul>Organic Food Sector
  19. 19. <ul><li>US & EU make up 95% of organic food retail sales ($25 bn worldwide) </li></ul><ul><li>Organic markets more mature in EU. Growth Rates are averaging 7.8% </li></ul><ul><li>US growth rate has been more than 20% annually </li></ul>Current Organic Food Market
  20. 20. Expand to new sectors Introduce new products Create an efficient supply chain Build on Social Responsibility 1 2 3 4 Recommendations
  21. 21. Selecting New Products
  22. 22. Selecting Sourcing Company
  23. 23. Markets Sourcing
  24. 24. <ul><li>Fewer Trade Barriers: </li></ul><ul><ul><li>CAFTA or other FTA member </li></ul></ul><ul><ul><li>Greater Protection for Investments </li></ul></ul><ul><li>Countries with Existing Dole Presence </li></ul><ul><ul><li>Contacts/Relationships </li></ul></ul><ul><ul><li>Lesser Overall Investment </li></ul></ul><ul><ul><li>Infrastructure In Place; Faster Shipping </li></ul></ul><ul><li>Climatic Restrictions </li></ul><ul><ul><li>Limited Growth Regions </li></ul></ul>Source Country Criteria
  25. 25. Expand to new sectors Introduce new products Create an efficient supply chain Build on Social Responsibility 1 2 3 4 Recommendations
  26. 26. Shipping Routes
  27. 27. Reduce Inventory levels High Quality Standards Shorten Lead Times Precise forecasting Avoid inventory obsolescence Carbon Neutral Supply Chain Customer Satisfaction DOLE Foods Reverse Supply Chain Supply Chain Improvement
  28. 28. <ul><li>Costa Rica – World’s First Carbon Neutral Country by 2021 </li></ul><ul><li>First mover in this sector </li></ul><ul><li>Project with the Costa Rican government to offset the company’s carbon dioxide emissions. </li></ul><ul><li>Efficient transportation and changes to its agricultural processes </li></ul>Carbon Neutral
  29. 29. <ul><li>Little to No Waste! </li></ul><ul><li>Ethanol Production: Discarded Husks or Shells </li></ul><ul><li>Agricultural Fertilizers: Discarded Shells/Seeds </li></ul><ul><li>Health/Wellness Sector: </li></ul><ul><ul><li>Seeds: rich in oils; soap production </li></ul></ul><ul><ul><li>Roots/Bark: use in medicine </li></ul></ul><ul><ul><ul><li>Diabetes/diarrhea treatment </li></ul></ul></ul>Harvest Byproducts
  30. 30. Expand to new sectors Introduce new products Create an efficient supply chain Build on Social Responsibility 1 2 3 4 Recommendations
  31. 31. <ul><li>Corporate Philanthropy: </li></ul><ul><ul><li>Nutrition Programs </li></ul></ul><ul><ul><li>Education/Adopt-a-School </li></ul></ul><ul><ul><li>Medical Welfare </li></ul></ul><ul><li>Independent Farmers </li></ul><ul><li>Environmental Care </li></ul><ul><ul><li>Carbon Neutralization </li></ul></ul>Build on Social Responsibility
  32. 32. 2008 2010 2012 2014 2016 2018 Marketing Finance Bulk Purchasing Implementation Mergers and Acquisitions Source Countries CAFTA/CR Ecuador Chile Brazil Other Amazon Basin Products Seek Opportunities Open 3 Stores Evaluate; Open up to 5 stores 35 total 45 total 50 total Markets Supply Strategy 58 total 75 total 100 total Sub-Contract Sub-Contract Joint Venture Joint Venture Acquisitions Educational Ed/Health Taste/Quality. Price Commoditized Juice Juice/Blends Blends/Fresh Assorted Mix Assorted Mix US/EU Australia Japan/Asia. Middle East Africa
  33. 33. 16.4% 9.5% 4.9% Growth Financial Analysis
  34. 34. Financial Analysis Net Profit Margins Del Monte 3.12% Chiquita (2.92)%
  35. 35. Long Term Debt 2001: $816, 124 2004: $1,837,000 Financial Highlights
  36. 36. <ul><li>Possible Joint Venture Endeavors/Acquisitions: </li></ul><ul><ul><li>Costa Rica: Boletin Rambutan </li></ul></ul><ul><ul><li>Puerto Rico: Panoramic Fruit </li></ul></ul><ul><li>Dependent on Popularity and Supply Needs </li></ul>Additional Considerations                                                                   
  37. 37. Questions & Answers
  38. 38. Deliver Sustain Design Diagnose Identify <ul><li>Identify key issues and decide which are the most relevant: </li></ul><ul><ul><li>Health food becoming new trend in the food market, replacing calorie counting </li></ul></ul><ul><ul><li>Growing interest in Amazonian and other exotic fruits </li></ul></ul><ul><ul><li>Potential supply chain inefficiencies </li></ul></ul><ul><ul><li>Growing demand for socially responsible corporations </li></ul></ul>Sustain Key Issues
  39. 39. <ul><li>Foundation of Dole Nutrition Institute </li></ul><ul><ul><li>Goal: Eat to Live </li></ul></ul><ul><ul><li>R & D: Health Benefits </li></ul></ul><ul><ul><li>Nutrition Education: 5-A-Day Program </li></ul></ul><ul><li>The Dole Nutrition System </li></ul><ul><ul><li>Serving Customer’s Holistic Nutritional Needs </li></ul></ul><ul><li>Health Positioning Marketing </li></ul><ul><ul><li>Our FDA Message </li></ul></ul>A Health-Conscious Company That Puts Customer Well-Being First! Dole plays a crucial role in helping consumers eat healthier… -- David H. Murdock
  40. 40. Dole is connected to healthy consumers… <ul><li>Reaching Out to Customers Online </li></ul><ul><ul><li>Superfoods </li></ul></ul><ul><ul><li>Nutrition Institute </li></ul></ul><ul><ul><ul><li>Recipes </li></ul></ul></ul><ul><ul><ul><li>Resources </li></ul></ul></ul><ul><ul><ul><li>Nutrition News You Can Use </li></ul></ul></ul><ul><ul><li>California Health and Longevity Institute </li></ul></ul><ul><ul><li>Make a Nutritional Smoothie! </li></ul></ul>
  41. 41. <ul><li>Diagnose the key issues with alternatives to mitigate any risk they pose to our company </li></ul><ul><ul><li>Keep a strong stake in the health food market and find new ways to grow our market share </li></ul></ul><ul><ul><li>Identify Amazonian and exotic fruits we will include in our product mix </li></ul></ul><ul><ul><li>Indicate areas in the supply chain that can be improved </li></ul></ul><ul><ul><li>Ensure that our company respects our employees, the environment, and communities </li></ul></ul>Deliver Design Diagnose Identify Sustain BACKGROUND
  42. 42. Dole is a responsible corporation! <ul><li>Corporate Philanthropy: </li></ul><ul><ul><li>Nutrition Programs </li></ul></ul><ul><ul><li>Education/Adopt-a-School </li></ul></ul><ul><ul><li>Medical Welfare </li></ul></ul><ul><li>Independent Farmers </li></ul><ul><li>Environmental Care </li></ul><ul><ul><li>Carbon Neutralization </li></ul></ul>
  43. 43. <ul><li>Dole is a major producer of known superfoods </li></ul>
  44. 44. Country Sourcing Strategy 20 3 29 7 23 20 11 27 9 27 27 Ecuador 18 23 21 25 27 1 15 22 13 26 25 Honduras 17 24 7 26 28 7 5 18 24 19 24 Costa Rica 14 14 25 18 23 14 1 20 31 23 23 Guatemala 11 1 23 23 19 7 17 25 30 20 22 Argentina 23 9 3 22 23 5 19 21 14 15 19 Dominican Republic 6 12 28 19 17 3 28 16 29 28 18 Uruguay 4 25 22 27 4 16 10 19 11 17 12 Colombia 1 15 17 29 14 25 20 5 14 2 9 Jamaica 15 22 10 11 2 5 3 26 23 18 7 Peru 2 10 12 20 11 7 12 24 6 13 5 Mexico 16 4 4 3 11 7 2 14 10 8 2 Chile 5 11 19 4 1 3 23 4 28 1 1 Puerto Rico Closing a Business Enforcing Contracts Trading Across Borders Paying Taxes Protecting Investors Getting Credit Registering Property Employing Workers Dealing with Licenses Starting a Business Ease of doing business  
  45. 46. Carbon Neutral Supply Chain <ul><li>Pineapple and Banana Supply Chain (Costa Rica) </li></ul><ul><li>Growing, packaging, transporting, distributing </li></ul><ul><li>Main markets in Europe </li></ul><ul><li>Costa Rican government's call to be a carbon neutral country by the year 2021 </li></ul>
  46. 47. The Juice Niche Market

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