valeofoods, nov. 2013
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Bank of Ireland Agri-Food Conference Kilkenny
21 November 2013
2
Agenda
1. Who We Are & What We Do
2. A Changing and Challenging Environment
3. Growth through Transformation and Innovation
4. Building on this Growth Platform
3
1. Who We Are & What We Do
4
The Birth of Valeo Foods
November 2010 Origin Foods and Batchelors
merger to form Valeo Foods
September 2011 Valeo Foods acquires
Jacob Fruitfield Group
5
• Now the largest ambient food supplier to Irish retailers
• 342 employees
• A predominantly branded business
• Two large Manufacturing Sites
• Ireland’s largest temperature controlled ambient
distribution facility
Valeo Foods
6
Integration – Establishing the Platform
Single IT
platform Significant
Systems upgrades
HQ & distribution
integrated
Best-in-class
commercial team
One integrated
Sales Force
Top 5 supplier to
Irish grocers
New structures &
streamlined
processes
7
Valeo is the No 1 ambient food supplier in
Ireland
v
Ra
nk
ed
on
Va
lue
sa
les
in
ea
ch
bra
ck
et
v
Under €75m €75m - €100m €100m - €150m €150m - €250m Over €250m
8
Valeo is A Brand Driven Business
No.1 flour
brand
No.1 juice
brand
No.1 pasta
brand
No.2 ketchup
brand
No.2 dry
sauce brand
No.1 dried
fruit brand
No.1
marmalade
brand
No.1 canned
brand
No.1 biscuit brand
No 1
or strong No 2
in all our key
categories
9
Augmented by Partner Brands
Complementary
to Valeo
category
positions
10
Supported By Strategic Relationships
with our Key Customers
Customer JBP Category Partners PL
Manufacture
✔ ✔ ✔
✔ ✔ ✔
✔ ✔ ✔
✔ ✔ ✔
11
Flexible & Efficient Manufacturing Operations
Delivering Competitive Advantage 2 Key sites: Cabra and Portarlington
12
2. A Changing and Challenging
Environment
13
Total Grocery market sales have grown over 52w by +1.1% to
almost €9bn, with recent 12w growth of +0.6%
Total Grocery - market value & YoY %chg
+0.4% +1.1%
(Source: Kantar Worldpanel )
14
Market dynamics
• Very competitive market in a challenging economic
environment
• Price sensitive consumers trading down
• Private Label growth
• Discounters growing footprint and share
• Multiples fighting for footfall and share
15
Strong presence of local and
international brands • Food market characterised by the strength of local brands
• Larger Irish groups hold strong positions in certain staple
categories
• Glanbia, Kerry
• Multinational groups also represented
• Nestle, Kraft, Unilever
16
Irish Grocery Market Context - Private Label
34.6%
35.5%
37.2%
34.0%
34.5%
35.0%
35.5%
36.0%
36.5%
37.0%
37.5%
38.0%
Private Label
Oct 11 Oct 12 Oct 13
(Source: Kantar Worldpanel )
Fresh and Ambient Food are growing within Grocery
+0.7%
-5.3%
+0.6%
-2.9%
+1.8%
-1.6%
+1.9%
(Source: Kantar Worldpanel )
Consumers’ coping strategies Example: Shoppers making more trips, but smaller trips
6% 31% 63%
20
07
4% 37% 58%
20
13
(Source: Kantar Worldpanel March 2013 )
Shoppers making 218 trips per year in
2007 vs 246 trips in 2013
Value Conscious Consumer
Retailers fighting for footfall and share
Suppliers / Brands
Market Dynamics
20
3. Growth through Transformation
and Innovation
21
Our Model - The Virtuous Circle
Generating
Operational
Efficiencies
Focus on
Core Brands
Driving
Category
Growth with
Customers
Renovating
& innovating
22
Focus on Core Brands - “The Magnificent 7”
23
Everything Is Based On Insight..
Telephone Research
Focus Groups
Assisted Shops
Digital Media
Workshops
Focus Groups
Consumer
Preference Tests
Focus Group
Screening
24
Odlums & Shamrock - Renovating to
Differentiate
September 13 September 13
25
Odlums & Shamrock - Innovating &
Stretching
26
Roma & Erin- Renovating to Differentiate
September 13
27
Erin, Roma & Batchelors - Innovating &
Stretching
November 13
September 13
28
Jacobs - Innovating & Stretching
August 13
October 13
September 13
Airing in October to
December 2013
Jacobs TV advert
29
Investing Behind Core Brands
Odlums exclusive
sponsor of the The Great
Irish Bake Off
Airing in October to
December 2013
30
Driving Category Growth with Customers
Example – Insight To Execution :
Tesco Home Baking Fixture
Category
strategy Customer
JBP
Customer
execution
Accelerating
category
growth
Consumer
insight
31
A €5M Brand Transformation Programme
Creating
44New Products
Renovating
220Packs
32
4. Building on this Growth
Platform
33
Growing our Brands
•Continued to drive from Growth Platform
• Invest in People and Processes
•Brand Investment
•Continued Renovation
•Win-win with Customers
•Pipeline of Innovation
34
Growing our Footprint
Double Our Turnover
M&A Criteria
• Ireland, UK, Continental Europe
• Category leading brands either #1 or #2
• Complementary products/categories
• Ease of integration
• Opportunities for cost/growth synergies
35
Key Messages
•Combined three iconic Irish food businesses to form
Ireland’s largest ambient food company
•Economic environment continues to be challenging
•Significant shifts in Consumer behaviour are here to
stay
•These challenges demand strategic focus
•Valeo focus on Brand growth through transformation
and innovation
•Build on this growth platform and broaden horizons
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