Transcript Animex Brand Portfolio - Hess Business Consulting

ANIMEX
Introduction
2010
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Corporate Animex; Smithfield
Smithfield
100%
Animex
100%
AgriPlus
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Smithfield Is the World’s Largest Pork Producer
Rabobank, 2010.
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Smithfield Basics
Key facts
Support to Animex
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Strategy: hogs + processed meat
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Large, exclusive breeder base
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Operations in the US, Europe, and
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Knowledge transfer
China
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Financial backup
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NYSE listed
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Net sales FY 2010*: US$ 11bn,
Smithfield Locations
#3 worldwide, #1 in pork
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Net loss FY 2010: (US$ 101M)
* FY 2010: April 2009-March 2010
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Animex Is Poland’s Largest Meat Producer
Nestle
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Net sales FY 2010*: 3,1 bn PLN
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13 production plants
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4x red meat
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4x white meat
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2x feed
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1x chicken hatchery
Net Sales
[bn PLN]
Danone
* FY 2010: April 2009-March 2010
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2x feather
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Employees: 7,700
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Distribution in all channels
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Exclusive access to largest Polish breeder base
(owned by Smithfield)
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All required quality certificates
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Turnaround 1/2
.
.
150
7 000
100
5 000
50
3 000
0
1 000
-50
-1 000
-100
PBT
Sales
-150
.
-3 000
2001 - 2002
2003 - 2004
2005 - 2006
2007 - 2008
2009 - 2010
.
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Turnaround 2/2
„Socialist-style” management
Today’s management
Independently managed production plants;
operations and accountability on plant level;
internal competition
Centralized sales, cooperation and knowledge
transfer between the plants; consolidation of
logistics and finance, management by objectives
Culture of survival and short-term sales
maintainence
Execution-oriented culture
Customer is unimportant („they will come
to us and buy anyway”)
Customer focus, among other employing
professional customer satisfaction surveys
Maintain current sales, no ambition to
develop sales and earnings
Increasing sales volume; balanced
product mix
„Costs are inevitable”, „money comes and
goes”; investing in „fancy things”
Cost control, cost benchmarking, focus on
existing assets’ payback; financial discipline ,
control of liabilities and receivables
„Everybody has to have a job”,
qualifications didn’t really matter
Building high performance team
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Investment in human capital
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INSEAD (France) – top management training
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Award „Investor in Human Capital” (received by only 10 companies
in Poland)
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Human resources development
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Assessment
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Training
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Project development
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Master Academy (100 participants)
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Foremen Academy (in progress – planned 340 participants)
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Meat & Poultry Brown Belt Training Program, Iowa State University
(17 managers participated)
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Business Ethics, Smithfield Code of Conduct
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One of Smithfield’s most treasured assets is its reputation for integrity
and fairness.
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Smithfield wants to be responsive to the concerns of the communities
in which it operates and exercise the highest degree of honesty and
integrity in its dealings with others .
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Therefore Smithfield has developed a Corporate Code of Conduct and
Business Ethics, which is the basis of its and its subsidiaries operations.
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Animex employees are trained on the Code’s content and application.
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There is an Annual Certification Process in place which requires each
employee on managerial position to certify they know the Code and are
not aware of any breach of it by any employee.
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There is an Employee Ethics Hotline – toll free and anonymous – for
reporting non-compliance with the Code.
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Poland, our home market
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Poland vs. US States
Key Parameters
„EU Europe”
27 states
„Non-EU Europe”
27 states
Kiruna, Sweden
1.100 mi
Key facts about Poland:
• Area: 121.000 sq mi (like New Mexico, #69 worldwide);
Yekaterinburg, Russia
1.600 mi
• Population: 38.5M (like California, #31 worldwide),
Galway, Ireland
38% living in rural areas;
1.200 mi
• GDP: $567 bln (like Illinois; #23 worldwide);
• GDP per capita: $15.000 (#52 worldwide).
Lisbon, Portugal
1.700 mi
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Poland: A Country Becomes Wealthier
Average Gross Salary [monthly, in PLN]
Structure of Household Expenses [in per cent]
10%
10%
11%
12%
9%
10%
7%
7%
7%
4%
4%
7%
4%
4%
17%
17%
7%
43%
7%
41%
10%
4%
5%
11%
4%
5%
17%
18%
7%
7%
39%
37%
12%
12%
7%
4%
6%
18%
6%
34%
7%
11%
12%
12%
Other
15%
15%
15%
Transport & communication
8%
5%
5%
9%
5%
5%
9%
5%
6%
9%
5%
6%
20%
20%
21%
19%
20%
5%
5%
5%
6%
6%
6%
28%
28%
28%
28%
28%
27%
12%
14%
15%
15%
15%
14%
13%
13%
14%
14%
8%
5%
6%
8%
5%
5%
8%
5%
5%
8%
5%
5%
18%
20%
21%
6%
5%
31%
30%
13%
8%
4%
6%
22%
6%
34%
Education & leisure
Healthcare
Furnishing, household
equipment and routine
maintenance of the house
Rent, electricity, heating etc.
Clothing & footwear
Food & drink (non-alcoholic)
1995
GfK, 2010.
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Meat Is The Largest Polish Food Market
Meat and meat products
~30 bn PLN
Alcohol
Soft drinks
Sweets
Culinary
Dairy
Nielsen, Animex.
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Our products and brands
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Categories, Products
Hot-Dog (trade & consumer form)
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Categories, Products
Dried-Smoked Sausage, Traditional Sausage (trade & consumer form)
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Categories, Products
Smoked Products (trade & consumer form)
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Categories, Products
Smoked Products (trade & consumer form)
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Categories, Products
Canned Products (trade & consumer form)
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Categories, Products
Convenience Food (trade & consumer form)
fresh & frozen
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Categories, Products
Fresh & Semi Meats (trade & consumer form)
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Exclusive Access To Largest Polish Hog Base
Contract Procurement
Smithfield Procurement
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Production, Procurement, Quality
RED MEAT
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Slaughter:
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Slaughter:
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Cattle: 54 K heads
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Chicken: 37,4 mln heads
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Hog: 1,9 mln heads
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Goose: 1,1 mln heads
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Turkey: 36,8 K tons
Livestock procurement :
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WHITE MEAT
Appr. 1.000 contract farmers
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Quality systems
Livestock procurement :
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Contract farmers (92%)
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Positive List System (Japanese)
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PSQ (implementation in
progress)
Own production of broiler birds
(80%)
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Own production of feed (44%)
Traceability
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Complete traceability compliant
with UE requirements
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Quality systems
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GHP
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GMP
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HACCP
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Broad and Diversified Portfolio
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Red meat, white meat
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Nielsen, 2010.
Leader in hypermarkets
Brands valued by both customers and consumers
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Fresh meat and poultry
Marinates and other culinary meats
Deli meats, cold cuts
Canned meats
Ready meals, convenience food
Packed meats for self-service, „unpacked” meats
for deli counter
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Pork, beef, veal, chicken, turkey, goose
Fresh meat, semi-processed, processed
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Leadership in Packed Deli Meats
Animex Brands
Strategic brands – Krakus, Morliny, Yano
Regional brands (Poland only)
Private label products
Strong marketing support
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Animex Brand Portfolio
Product, Price, Positioning
Brand
Product Range
Price
Segment
Limited range:
 Dry sausages, deli hams, canned
meat, pate, smoked products;
predominantly red meat
 Semi-processed/ culinary meats
Premium
Image / Positioning
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Traditional, top quality,
something special
Claim: „Deli meats as they
used to be”
TV
Extended range:
 Hot dogs, all types of deli; red and
increasingly white meat
 Semi-processed/ culinary meats
 Convenience food
Premium /
Mainstream
Wide range:
 All types of deli, white meat only
 Convenience food
 Canned pate
Mainstream /
Economy
Widest range:
 All types of deli, red and white meat
 Semi-processed/ culinary meats
 Convenience food
 Canned meat
Mainstream /
Economy
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Modern, innovative,
convenient, for the
demanding consumer
Claim: „Never enough fun”
TV
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Good value for money,
always something for every
consumer
Claim: „The best for
everyday shopping”
No particular positioning
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Animex Brand Portfolio
Consumer Perception and Brand Strength
Awareness: Four within Top 6 Brands
92%
Any Animex brand
Sokołów (umbrella)
81%
Morliny
66%
Krakus
61%
Morlinki
49%
Indykpol (umbrella)
47%
Berlinki
45%
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Distinct Ownership of Quality
Morliny
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Dry sausages
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Kabanosy
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Form ed
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Pate
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Sm oked, ham s
Hot dogs
Trad. sausages
Nine of ten Polish consumers know
at least one of Animex’ brands.
Four of six top recognized brands
belong to Animex.
Sokołów is the best recognized
single consumer brand.
Salam i
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In consumers’ view, ...
 Krakus makes the best dry sausages and
kabanosy;
 Morliny make the best hot dogs;
 Producer #1 scores on sausages and
salami;
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Consumer research, 2010.
Producer
Sokołów 1 Producer
Indykpol2
Krakus
There is no brand that „owns” hams and
smoked products.
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Leadership in Retail Chains (1/2)
Category Ownership in Dry Sausage and Hot Dogs
Total Packed Deli Meats
Dry Sausages
Hot Dogs
Nielsen, 2010.
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Leadership in Retail Chains (2/2)
Packed Deli Meats Value Share Between 25% and 40%
Total
Chain 1
Chain 3
Nielsen, 2010.
Chain 4
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Private Label Development
Annual Turnover With Poland’s Largest Retailer
+60%
+68%
+65%
+33%
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
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Export customers – long-term relations
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USA – Krakus ham
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Seven Eleven
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Japan – hot dogs
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Lipari
Jewel
Wal-Mart
Germany – Yano canned products
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Aldi
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Rewe
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Edeka
Japan – pork loin, bellies
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IKEA
UK – processed meat, Morliny
brand
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Tesco UK
Morrison’s
ASDA
Iceland
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Denmark – hot dogs, sausages,
hams
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Netto
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Coop
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SuperGros
Lithuania - hot dogs, sausages
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Maxima
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Animex export approvals
We have export permissions for more than 70 important countries of the world.
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European Union – all plants
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Other European countries
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Japan – all red meat plants, Dębica, Opole, Iława
South Korea – all red meat plants, Iława
Vietnam – all plants
Hong Kong – Szczecin, Starachowice, Ełk, all
white meat plants
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Ivory Coast – all red meat plants, Iława
Ghana – all red meat plants
Congo – all red meat plants, Iława
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USA – Szczecin, Starachowice, Morliny
Canada – Ełk, Morliny, Iława
Mexico – Starachowice, Iława
Central & South America
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Africa
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North America
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Asia
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Switzerland – Starachowice, Morliny, all white
meat plants
Turkey – Dębica
Norway - Morliny
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Cuba – Starachowice
Guatemala - Iława
Nicaragua - Iława
Columbia - Iława
Australia & Oceania
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Australia - Iława
New Zealand – Szczecin, Iława
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Thank you for your attention
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