• Largest supplier of high value-add food ingredients for the North American bakery industry
• Limited share of the bakery market on other continents
• Main product lines: emulsifiers (lactic acid derivatives), enzyme based functional blends, bases & mixes (incl. frozen dough) and fortification
Bakery segment today
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Bakery segment growth driven by
• innovation and market insights…
• ……that let us create value propositions for our customers
• and build our business through key account management approach
Outperforming the market in tough US economy
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Enabling factors
• Deep bakery industry expertise
• Highly responsive and agile production capabilities
• Largest and highly knowledgeable sales force
Bakery segment core strengths
Competitive advantages in market place
• Customization and formulation skills to deliver unique products that meet individual customer needs
• Leading positions of core platforms in the North American markets
• Best in class innovation capabilities
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Product portfolio delivers key food integrity attributes of freshness, taste, mouth-feel and aroma
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Well positioned to meet consumer and customer needs
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Strengthen the core US franchise
• Close partnerships through key account management
• Continue to invest in marketing, accelerating our customers’ growth International expansion leveraging the company’s global footprint
• Roll out superior bakery knowledge into selected markets
• Use local experts to gain fast market access (distribution/ local supplier acquisition)
• Support our North America- based customers expanding into new countries Innovation and new product pipeline
• Commercialization: Ultra Fresh Sweet and Ultra Fresh Premium Advantage
• Feasibility: leverage Purac anti-mold and Calcium Propionate technologies
• Product line extension: other fermentation based Food Integrity products
Three focused strategies for Bakery
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• Ultra Fresh is a platform of complex enzyme blends that delivers supreme freshness
• It was developed through our application expertise
• First commercial sales in Q2 2013, growing rapidly
• Sustained freshness through product lifecycle
• Increased variety to meet multiple family members taste
• Enhanced flavor, taste and texture
• Increased sales through expanded sales window up to 30%
• Reduce stales and waste up to 50%
• Improve manufacturing/labor efficiencies
Using innovation to capture food integrity opportunity
Benefits for customers
Benefits for consumers
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Leveraging relationships to grow with our major North American customers
• Our customers require a regional supply, and a continuous flow of innovations to improve products or lower costs
- Helping Flowers expand from a regional to a national presence in our core US market
- Supporting Bimbo’s expansion from its US/Mexico base into targeted countries in Asia, LatAm and Europe
Targeted market entry strategy for global expansion with functional blends portfolio
Roll out superior knowledge into selected markets
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• Leader in quality value-add North American bakery ingredients market
• Extensive formulation capabilities will be enhanced with fermentation capabilities
• Superior market knowledge and expertise, leading to close customer partnerships
• Three pillar growth strategy - Strengthen the core US franchise - Strong pipeline of product innovations - International expansion into targeted geographical markets leveraging the
company’s global footprint
• In ongoing difficult market conditions, the Bakery segment will continue to outperform the market and deliver strong financial performance
Key takeaways
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