The World Food & Beverage Companies Top 100 - 2008 - by Serge Guégan - Food Intelligence - France

By Food Intelligence

The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 2

1. World Food Companies Top 100 Profile • Top 100 Total Net Sales ≈ € 1000 billions (84% in F&B) • Northern America (USA + Canada + Mexico) accounts for 51% of this Total (with 41 groups) compared to the 29% of EU (35 of which 9 French) and the 8% of Japan (15) • 62 “specialized” firms in four sectors : agribusiness & ingredients (21), dairy (15), meat (12) and beer (14) • 61 are listed, 26 private, 15 cooperative (of which 10 European firms) • Attractive financial performance : – 2005-2007 Net Sales AAGR : + 8,7% – Net Income : often greater than 10% even 20% () : fiscal year ending in 2007 or in 2006 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 5

2. WFC TOP 100 by World Areas 1,8% 0,8% 0,7% 0,4% 0,4% 3,7% 2,3% 6,9% 8,1% 28,7% 46,0% As percentages of Top 100 total net sales USA (+ Bermuda) EU Japan Switzerland Canada Korea (S) Mexico Australia New Zealand Singapore Philippines Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 6

3. WFC Strategic Winning «Game» Functi Indulg onal ence Conve nience Enviro Health nment Ethics :  image : : Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 7

4. Global WFC Top 10 1 - CARGILL 2 - NESTLÉ 3 - ARCHER DANIELS MIDLAND 4 - PEPSICO 5 - KRAFT FOODS 6 - UNILEVER 7 - BUNGE 8 - TYSON FOODS 9 - COCA-COLA 10 - MARS Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 8

5. Private WFC Top 10 1 - CARGILL 2 - TYSON FOODS 3 - MARS 4 - LOUIS DREYFUS 5 - SUNTORY 6 - MCCAIN FOODS 7 - LACTALIS 8 - ASSOCIATED BRITISH FOODS 9 - FERRERO 10 - DOLE FOOD Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 9

6. Cooperative WFC Top 10 1 - CHS 2 - VION 3 - FONTERRA 4 - DANISH CROWN 5 - DAIRY FARMERS OF AMERICA 6 - ARLA FOODS 7 - SÜDZUCKER 8 - LAND O'LAKES 9 - ROYAL FRIESLAND FOODS 10 - CAMPINA Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 10

7. Agribusiness WFC Leaders ADM WILMAR 35,1 BUNGE INTAL 4,2 20,9 LOUIS AWB 4,9 DREYFUS 13,6 CARGILL DUPONT 70,4 Agr. & Nutr. CHS 5 8 BAYER CROPSCIENCE MONSANTO 6,8 5,7 SYNGENTA (Novartis) 6,4 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 11

8. Ingredients WFC Leaders 7,4 6,9 6 5,8 4,6 3,1 Not in the Top 100 2,7 2,4 2,4 2,1 2 1,8 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 12

9. Diversified WFC Top 6 NESTLÉ 58,4 KRAFT 27,4 UNILEVER 21,3 GENERAL MILLS 9,9 CONAGRA 9,6 SARA LEE 8,2 Sizes of bubbles & Figures : Food & Beverage Net Sales in € Billion Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 13

10. Dairy WFC Top 6 NESTLÉ 16,3 UNILEVER 8,6 DANONE 7,9 DEAN FOODS 7,8 LACTALIS 7,3 FONTERRA 7,2 Sizes of bubbles & Figures : Food & beverage Net Sales in € Billion Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 14

11. Meat & Poultry WFC Top 6 TYSON FOODS 20,4 SMITHFIELD FOODS 9,5 JBS-SWIFT 9,2 VION 7,3 NIPPON MEAT PACKERS 6,7 DANISH CROWN 6,5 Sizes of bubbles & Figures : Food & Beverage Net Sales in € billion Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 15

12. Beer WFC Top 6 SABMILLER 14,8 INBEV 13,3 HEINEKEN 11,8 ANHEUSER- BUSCH 9,9 ASAHI BREWERIES 9,9 KIRIN 7,8 Sizes of bubbles & Figures : Food & Beverage Net Sales in € billion Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 16

13. Leaders In Some Other Sectors Mars Diageo Wine & Spirits Cadbury Schweppes Suntory Confectionery Ferrero Pernod Ricard Hershey Constellation Brands Wrigley Bacardi Lotte LVMH a Maruha General Mills Seafood – F&V Dole Sara Lee Bakery Nissui Yamazaki Baking Chiquita Bimbo Nichirei George Weston Del Monte ABF Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 17

14. Strategic Stakes & Challenges  Growing world demand for food & fuel … • Meet the growing demand for food to feed a growing world population and for alternative fuel sources  But … anemic « occidental » large markets • Be more innovative to boost anemic traditional large food markets in developed countries  Devalorization (« desecration ») of food • Face the rapid downgrading of food products « values »  Weakening of brands • Find leverages to catch the interest & regain the fidelity of consumers … Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 18

15. Strategic Stakes & Challenges  Power of mass retailers • Adapt to the growing power of mass retailers without becoming big subcontractors  Globalization / Uniformization • How to preserve the food company identity while getting global ?  Negative image of « transnational » WFC • WFC are accused of starving the world, causing malnutrition & obesity, (« junk food »…), creating artificial needs, killing local diversity, degrading nature, accelerating rural exodus, etc.  Health and Environment • Take the challenge of environment & health on a sustainable way, bringing long term true benefits to consumers and beyond to humanity Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 19

16. Six Strategic Business Groups I- Diversified 19,4 I + II + III 329,8 IV + V + VI II - \"Agrindients\" 11 III - 231,3 \"Be(er)verage\" 8 IV - V- VI - 168,7 \"Bakery & Dairy Meat & Poultry Snacks\" 5,7 6 8 84,8 84,6 : Number of companies 95,7 19,4 : Average size of companies (total net sales) 329,8 : Group total size (total net sales) Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 20

STRENGHTS WEAKNESSES & THREATS STAKES & CHALLENGES Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 21

STRENGHTS WEAKNESSES & THREATS STAKES & CHALLENGES Sizes of bubbles & Figures : « Dairy » Net Sales in € billion Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 26

Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 27

foodintelligence@foodintelligence.fr By Serge Guégan / http://www.foodintelligence.fr FOOD INTELLIGENCE Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 28

Food Intelligence Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 29

This “World's Top 100 Food Companies 2007” was carried out starting from the Food Intelligence global database “WFC 1000” (World Food Companies 1000). The ranking gives for each firm its global net sales and its food net sales. The rank awarded to the company is a function of food net sales exclusively. Net sales are expressed in € million (millions of Euros). The figures are those of the last closed fiscal year (ending in 2007 or in 2006) published by the companies (very exceptionally estimated by Food Intelligence). The conversion basis of a currency is its average exchange value in Euros during the whole year 2006 (taking into account 2007 full year average would have been partly logical but too much unfavourable to many non EUROLAND based companies). Food Universe The “food” (and beverages!) products sphere adopted by Food Intelligence rests in fact on a widened meaning of the “agri-food” term. This universe includes all the activities taking their source in agriculture, fishing or aquiculture, whatever are the final stage (processed or not…) and the final use of the foodstuff - food/feed or not (bio-energy, materials, molecules…) - given that “traditional” non-food (e.g.: “conventional” textile like cotton, decorative horticulture…) - except as a minority and dependent activity - should be excluded, if possible. For “ethical” reasons tobacco industry has been excluded… The universe includes the “internal” inputs of the end products (e.g.: raw materials of course, but also seeds, animal selection & breeding or animal nutrition, ingredients, etc…). It can also include, but only as a minority or dependent activity, products having a simple role of “maintenance”, protection, improvement or growth of the plants or animals (e.g.: fertilisers, plant health, animal health…). Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 31

But it does not include, in theory, the “external” inputs of the end products (in particular: packaging, tools, production or transformation equipment, agricultural machinery…). Non-renewable energy and renewable energy having a non- agricultural origin are excluded. The “food” universe not only includes physical “products” but can also include “services”, in particular those intended for the farmers… Companies Food Intelligence took only into account the companies carrying out at least 50% of their activity (in terms of sales) in the agri-food industry (in the broad sense, as indicated above) except if this activity, even minority, is clearly identifiable (preferably in a specific structure…) and, above all, clearly considered as a strategic business / segment for these groups. For this reason groups whose distribution / logistic (e.g.: food retailing) or foodservice activities are in a majority in their total sales are normally excluded, except when food manufacturing activities are clearly identifiable (as explained above) and…measurable! A contrario, when these activities are in the minority they can be integrated with food businesses in the perimeter of “food” net sales… Big beverage companies which are acting principally and directly as “bottlers” (under Coca-Cola, Pepsi and the like brands), even if they also sell under proprietary brands, are not eligible for our ranking. Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 32

As far as possible Food Intelligence only took into consideration the whole industrial group and not such or such subsidiary belonging to it… However, given the independence of their different food subsidiaries some conglomerates had to be excluded - at least partially - of the scope. For example it was clearly the case for a part of Mitsubishi food activities. As a matter of fact we didn’t consider the Mitsubishi food companies as a unique food business but as different entities. That’s why whereas Kirin (whose own food net sales amount 7794 millions Euros) appears in the ranking, the other subsidiaries (each having insufficient food net sales) - like Sanyo, Nosan or Princes - don’t appear in this classification (although it would have been the case if we had taken into account as the whole the entire food activities which all are part of the “Essential Living” division whose aggregate net sales reach nearly…34 millions Euros!). Of course, beyond the widened vision to which Food Intelligence has given priority, the extent to which such or such group has been taken into account in this ranking is more a question of “bon sens” than a question of theoretical definitions or even of common criteria and segmentations people are accustomed to use or think with. More information : http://www.foodintelligence.fr wfc.food.top100@foodintelligence.fr foodintelligence@foodintelligence.fr 33 (0)2 28 13 03 67 : contact : Serge Guégan Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 33

I - Total Net Sales2 II - Food Net Sales4 III - II/I Rank1 Company Country Type Listed Businesses (€ Million)3 (€ Million)3 (%) 1 2 3 4 5 6 UNILEVER UK/NL 39 642 € 21 327 € 53,8% public yes diversified foods 7 8 9 10 © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 36

I - Total Net Sales2 II - Food Net Sales4 III - II/I Rank1 Company Country Type Listed Businesses (€ Million)3 (€ Million)3 (%) 11 12 13 14 15 16 17 18 19 ASAHI BREWERIES Japan 9 912 € 9 912 € 100,0% public yes beer 20 © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 37

I - Total Net Sales2 II - Food Net Sales4 III - II/I Rank1 Company Country Type Listed Businesses (€ Million)3 (€ Million)3 (%) 21 22 23 24 25 26 27 CHS USA 11 442 € 8 010 € 70,0% cooperative yes agribusiness 28 29 30 © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 38

I - Total Net Sales2 II - Food Net Sales4 III - II/I Rank1 Company Country Type Listed Businesses (€ Million)3 (€ Million)3 (%) 31 32 33 34 35 36 MONSANTO USA 6 826 € 6 826 € 100,0% public yes agribusiness 37 38 39 40 © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 39

I - Total Net Sales2 II - Food Net Sales4 III - II/I Rank1 Company Country Type Listed Businesses (€ Million)3 (€ Million)3 (%) 41 42 43 44 SCOTTISH & 45 UK 6 095 € 6 095 € 100,0% public yes beer NEWCASTLE 46 47 48 49 50 © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 40

I - Total Net Sales2 II - Food Net Sales4 III - II/I Rank1 Company Country Type Listed Businesses (€ Million)3 (€ Million)3 (%) 51 52 53 54 55 56 57 58 59 60 © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 41

NOTES (1) : See the \"World Food Companies Top 100 - 2007\" ranking methodology above (II) (2) : Last declared or annouced annual net sales (fiscal year ending in 2007 or in 2006) ; very exceptionally \"generaly admitted\" or own Food Intelligence estimates. (3) : Net sales are converted in Euros (€ millions) on the 2006 full year average exchange rates basis (taking into account 2007 full year average would have been partly logical but too much unfavourable to many non EUROLAND based companies) (4) : Food net sales declared or announced by companies or exceptionnally estimaded by Food Intelligence. (5) : Full Version Only © Food Intelligence - http://www.foodintelligence.fr - The World’s Food & Beverage Companies Top 100 - 2008 Janvier 2008 © Food Intelligence - Serge Guégan - WFC Top 100 2008 46

The World Food & Beverage Companies Top 100 - 2008 - by Serge Guégan - Food Intelligence - France

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