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Wessanen overview ppt sept2012


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An overview (updated per Sept 2012) of what Wessanen is, what we do and where we stand for. Includes market overview and sustainabiltiy

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Wessanen overview ppt sept2012

  1. 1. Royal Wessanen A leading player in organic food in Europe An introduction to who we are, what we do and where we stand for @RoyalWessanen
  2. 2. In a nutshellA leading European organic food player Own operations in Benelux, France, Germany, Italy, UK + export operations Pioneering brands | indulgence & nutritional Well-managed supply chain | Strong focus on quality, innovations, brands Factories in UK (tea), Germany (vegetable spreads) (cereals/bars/spreads/honey) and Italy (soy drinks) Turnover about €600mln (2011) | 1,600 employeesOrganic food market Attractive part of food market | growing | low per capita consumption | market size €21bn No colouring/flavouring | GMO-free | no artificial fertilisers | animal health Unique certification system | grown and processed according to EU regulation 2
  3. 3. 2011 revenue €594 mlnGrocery HFS (Health Food Stores)Revenue €244 mln Revenue €248 mlnNorm.EBIT €18.0 mln Norm. EBIT €5.0 mln 41% 19% 40%Frozen Foods Non-allocated & eliminationsRevenue €113 mln Revenue €(11) mlnNorm. EBIT €2.3 mln Norm. EBIT €(11.5) mln Discontinued operations ABC Revenue $... mln Norm. EBIT $... mln 3
  4. 4. Wessanen FY2011 overview Revenue EBIT before exceptionals excl non-allocated 2,3 113 244 5,0 €589mln €14mln 18,0 248 Grocery HFS FF Grocery HFS FF FTEs (at year end) Average Capital Employed 63 11 379 63 51 501 1,582 €208mln 639 84 4 Grocery HFS FF HQ Grocery HFS FF HQ
  5. 5. ContentPage6. What is organic? / markets9. A rich history11. Our Vision, mission & strategy15. Strategic objectives 2012-1423. Our business principles / sustainability 5
  6. 6. What is organic?! Strict criteria to be allowed to be labelled organic Demonstrably free from GMO, pesticides and growth hormones Strict rules on animal welfare Severe restrictions on fertilisers, herbicides and pesticides Severe restrictions on additives and processing aids All about being produced and processed in line with organic principles Organic products promote health and well-being Holding benefits for the planet and for future generations All about nutrition and taste ! Organic food is controlled by a unique European certification system At Wessanen, our vision is to make our organic brands most desired in Europe 6
  7. 7. Attractiveness organic food markets European organic food an attractive, growing segment  Size €21 bn; 2011 growth around 6%  <3% of total European food market Increasing consumer appreciation Still low per capita consumption  European Union €30 p.a.  Switzerland €150, Denmark €140, Austria €115, Sweden €85  Germany €75, France €55, Netherlands €50, Belgium €40  UK €25, Italy €20, Spain €15 Consumers increasingly convinced of benefits of organic food regarding health, taste and environment Grocery and Health Food Stores channels developing at different growth path  Decline percentage of households shopping in HFS channel in the Netherlands halted 7
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  9. 9. A long and rich history 1765 - Incorporated around river De Zaan  Adriaan Wessanen started to trade in mustard, canary and other seeds Around 1910 introducing first consumer products such as oatmeal and cocoa 1913 - Distinguished title Royal (99 years !) 1959 - Listed on Euronext Amsterdam 2009 - Strategic reorientation  focus on organic food in Europe 2012 - To make our organic brands most desired in Europe 2015 - Marking 250th anniversary of Wessanen 9
  10. 10. Transformation 2009-12In € mln 1,586 KK, LR, Righi, PANOS1600 TOL NA ABC * Frozen Foods1200 Kalisterra Tree of Life UK Clipper (March 12) 800 712 706 694 Health Food Stores (HFS) Grocery 400 0 2009 2010 2011 2011 Pro FormaAs of 2009: focus on organic food in Europe 10
  11. 11. Our Vision “To make our organic brands most desired in Europe” GROCERY HEALTH FOOD STORES 11
  12. 12. Our Mission “Our organic food, your natural choice” 12
  13. 13. Three business models Business Description Countries, Brands & Entities Sourcing/developing, marketing France: BjorgGrocery and selling own brands Benelux: Zonnatura, Biorganic, Merza Brands • Including distribution to distribution UK: Clipper, Kallo, Whole Earth centers and/or stores Germany: Whole Earth, Culinessa, Bjorg Italy: Bjorg, Efficance Sourcing/developing, marketing France: Bonneterre, EvernatHealth Food Stores (HFS) and selling own brands to HFS NL: Ekoland, De Rit Brands • Via wholesaler in Germany Germany: Allos, Tartex, De Rit • Direct to stores (France, NL) Sourcing, category management, France: Bonneterre, Biodistrifrais Whole- sales and distribution to HFS stores NL: Natudis, Kroon sale • Focus on full range (ambient and Belgium: Hagor fresh) of products • Focus on high share of products per store 13
  14. 14. Driving our brands in 2 channels Health Food Stores GroceryProfile Small – independent - large exclusively Professional chains - organic core assortmentProfile organic assortmentDevelopment Concentration - modern formats Dedicated shelf results in strong growthDevelopmenOpportunity Attract & activate mainstream consumers - Build credibility and profile through strongOpportunity innovative concepts organic ranges Our Focus i) Building powerful brands - large ranges - Focus on fewer, bigger brandsWessanen moving from push to pull marketing Aggressive growth - powerful in-store marketingFocus ii) Wholesale (NL, BEL, FR) iii) Retail formulas (NL) All countries 14
  15. 15. ContentPage6. What is organic? / markets9. History11. Vision, mission, strategy15. Strategic objectives23. Business principles / sustainability 15
  16. 16. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Grow core brands • Grow core categories • Build strongholds in new markets • Country specific growth strategies • Launch fewer, bigger, better innovations • Execute acquisitions shortlistProfitability • Central sourcing savings • Pricing strategies towards customersimprovement • Improve operational excellence with SAP • Filling own factoriesEnablers • Improve talent performance management / building connected leadership • Simplify how we are conducting business • Activate Organic Expertise Centre (OEC), integrate Quality 16
  17. 17. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Brand activation e.g. • Bjorg during ‘Atelier bio’ weeks in France • Gayelord Hauser 17 Atelier bio nut Leclerc Albi
  18. 18. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Brand activation e.g. • Ekoland in Amsterdam area Atelier bio nut Leclerc Albi 18
  19. 19. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Category innovations e.g. • Bjorg tea • Zonnatura Kikker and nut bars • Whole Earth chocolate spreads • Ekoland fruit juices 19
  20. 20. Strategic objectives 2012-14Strategic focus ActivitiesTopline growth • Acquisitions (Clipper) • Assortment line-up and brand activation • Preparing for European roll-out in early 2013 Clipper ‘Congo’ TV ad aired in spring 20
  21. 21. Strategic objectives 2012-14Strategic focus ActivitiesProfitability • Gross margin improvement - in particular in Grocery - both in 2011 and 2012improvement • Deployment of SAP in France, the Netherlands, UK • Germany and Clipper planned for • Filling the factories in Germany with product categories such as breakfast cereals and pasta sauces 21
  22. 22. Strategic objectives 2012-14Strategic focus ActivitiesEnablers • Leadership programme in first half 2012 for top-65 of Wessanen • Practical toolbox to accelerate the execution of the strategy • 4 CBT teams to boost innovations • Organic Expertise Centre up-and-running 22
  23. 23. ContentPage6. What is organic? / markets9. History11. Vision, mission, strategy15. Strategic objectives23. Business principles / sustainability 23
  24. 24. Wessanen business principles Compliance with laws: being a responsible partner in society, acting with integrity towards all stakeholders and others who can be affected by our activities Environment: in line with commitment to sustainable development, we will do all that is reasonable and practicable to minimise adverse effects on the environment Product safety: we aim at all times to supply safe products and services Free market competition: we support free market competition as basis of conducting business; we observe applicable competition laws and regulations Child, bonded and forced labour: under no circumstances we are making use of forced or bonded labour; we do not employ children in violation of relevant conventions of ILO Human rights: we support and respect human rights and strive to ensure that our activities do not make it an accessory to infringements of human rightsWe expect suppliers and business partners to comply with the above principles 24
  25. 25. Commitment to minimise environmental impact Committed to minimising impact on environment by measuring and monitoring the effects of our operations All our organic products are free of GMO We are working on reducing our CO2 footprint and usage of water Additionally, organic products do not use pesticides, therefore contributing to a decrease ISO 14001 is an internationally recognised standard for embedding processes to analyse and reduce our impact on the environment 25
  26. 26. Wessanen’s supply chain 26
  27. 27. Palm oil - member RSPO Palm oil is important, versatile raw material for food  Only be cultivated in tropical areas of Asia, Africa and South America  Concerns that demand causing expansion of plantations into eco-sensitive areas Since March 2011 Member of Roundtable on Sustainable Palm Oil (RSPO)  Global multi-stakeholder initiative  Encouraging sustainable production/use palm oil  Wessanen commits to organisation’s objectives In 2011, we developed policy to govern palm oil sourcing and guidelines for implementation in partnership with our suppliers Committed to switching palm oil to RSPO certified sustainable palm oil during 2012-13  RSPO certified segregated palm oil for organic  GREEN PALM certificates for conventional 27
  28. 28. Organic Expertise Centre (OEC) Establishment internal expertise center - named OEC - in 2010  To stimulate exchange of knowledge / experience that is widely available within Wessanen  To educate and inspire our internal / external stakeholders in organic values Specialists join forces and work on pan-European issues To legitimise our position in organic world by championing the organic case Focal areas will be:  Training (incl. training package for newcomers)  Knowledge building by teaming up with external researchers and experts  Lobbying to promote organic food  Communication for more general awareness / knowledge of organic food 28
  29. 29. Employee engagement  WEacademy  2012 Leadership development programme  Focus on strategy execution, connected leadership  Employee turnover is a key focus area  Competency model deployed  Defines behaviour expectations for all employees  Translates ambitions/values into behaviour conventions and skills100% 120 875% 6 8050% 4 4025% 2 0% 0 0 Executives Managers Associates 2009 2010 2011 2009 2010 2011 29 Men Women Injury severity rate Injury frequency rate
  30. 30. Royal Wessanen nv