infant nutrition - aak · 6 . china: new infant milk powder policy . august 2013 “fonterra”...
Post on 08-Oct-2019
3 Views
Preview:
TRANSCRIPT
Infant Nutrition
Karel Stoschek Director Infant Nutrition
Infant Nutrition – January to September
2
32
48 52
6655
010203040506070
2010 2011 2012 2013 2014
Volumes ('000 MT)
1659
82104
123
020406080
100120140
2010 2011 2012 2013 2014
Operating profit (SEK million)
0.50
1.231.58 1.58
2.24
0.00
0.50
1.00
1.50
2.00
2.50
2010 2011 2012 2013 2014
Operating profit per kilo (SEK)
3
The first 1,000 days
Infant milk formula includes all essential nutrients and energy for infants to grow and develop normally
Vegetable oils and fats provide the essential building blocks for the body, including the brain and the eyes
Oils and fats account for 50% of the energy in the formula
Toddlerhood Baby Breast feeding Pregnancy
4
Global baby food retail value Estimate 2014
44.8US$ B.
2.7US$ B.
5.4US$ B.
8.9US$ B.
61.8US$ B.
0
10
20
30
40
50
60
70
Global market Other babyfood
Dried babyfood
Preparedbaby food
MILKFORMULA
Standard formula 30%
0-6 months
Follow-on formula 23%
6-12 months
Toddler formula 39%
+12 months
Special formula 8%
Premature, allergy
Source: Euromonitor International, Sep 2014
72%
5
Infant milk formula market Estimate 2014
Source: Euromonitor International, Sep 2014
2.4 million MT/yr infant milk formula ~660,000 MT /yr oils & fats
Consolidated market: Top 4 companies have 57% share Top 10 companies have 73% share
29% global value share Local companies increasing share >100 brands in the market
6
China: new infant milk powder policy
August 2013 “Fonterra”
China FDA announced they will review the IMF
production policy
December 2013 China FDA revised version
of policy
May 2014 China FDA published the list of
companies that passed the audit
September 2014 NZ companies got import
licences back to China
China FDA audits for IMF producers
Audit in China - integrated supply chain:
Local toll-production stopped
Local base-powder production stopped
Local packing operation stopped
Outcome:
China FDA approved 82 Infant Milk Formula
producers
They are approved for 2014-2017
1/3 of producers’ licenses not renewed
7
China market remains attractive
Source: Euromonitor International, Sep 2014
8
17
25
0
5
10
15
20
25
2010 e2014 e2016
China infant milk formula retail value
22,3 %
24%
76%
0%
20%
40%
60%
80%
100%
IMF
Top-5 brands
Other
China infant milk formula - brand share Future consolidation expected
407
727
989
0
200
400
600
800
1000
2010 e2014 e2016
China infant milk formula total volume
15,6 %
Market growth remains attractive Market value is likely to grow faster than volume
Future market consolidation expected
E-commerce channel expanding
’000
MT
$ Bn
The first choice for value-added vegetable oil solutions Single oils Organic (approved by COFCC)
MCT
Low 3MCPD
Go to market
The natural choice for healthy development Customised oil blends
The ideal combination
Security from start to finish
Specifications guaranteed
8
INFAT is sold by Advanced Lipids a joint venture of AAK and Enzymotec.
A clinically-proven ingredient
One step closer to human milk
9
AAK Customer case
End consumer
Toll producer
Brand Owner
Customer Pain: With Brand owner:
Food safety
Tailored fat composition
CSR
With Toll producer:
Correct quality
Effective logistics solution
Product analysis
AAK co-development: With Brand owner:
Sourcing the raw materials
Global view on market
Developing an unique blend
With Toll producer:
Regulatory and specifications
Logistics solution
Tailored service package
10
Expanding organic category
0
20
40
60
80
100
120
2010 2011 2012 2013 2014
Source: Mintel, November 2014
New launches – Organic baby food
Organic baby food market is strong in EU
Fast growing in China and Asia AAK is the only company in Europe to have a certificate from COFCC to produce vegetable oils for organic infant milk formulas for China Akonino® Organic
11
Average annual volume growth 2010-2016 (Euromonitor total milk formula volume growth)
Global growth rate: +7% by volume
Source: Euromonitor International, Sep 2014
-1%
+6%
+10%
+4%
+16%
+7%
+4% +1%
12
AAK increasing market share
CAGR (MT) 2010 - 2014
0%
5%
10%
15%
20%
Market AAK
13
AAK position for future growth
Category Growth Trends
Economic growth and job creation
Increase number of women in workforce
Middle class and dual-income family emerge
Increasing spend on premium nutrition
Commitment on quality
Continues investment in customer co-development
Balanced portfolio to match customer needs: Semi-speciality blends
Speciality blends
Speciality single oils
Geographical development: Malaysia
Brazil – greenfield
China – greenfield
Europe – preparing for customers’ capacity increases
top related