Valeofoods, Nov. 2013

1. 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
2

3. 1. Who We Are & What We Do
3

4. The Birth of Valeo Foods
November 2010
September 2011
Origin Foods and Batchelors
merger to form Valeo Foods
Valeo Foods acquires
Jacob Fruitfield Group
4

5. Valeo Foods
•
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
5

6. Integration – Establishing the Platform
One integrated
Sales Force
New structures &
streamlined
processes
HQ & distribution
integrated
Single IT
platform
Best-in-class
commercial team
Significant
Systems upgrades
Top 5 supplier to
Irish grocers
6

7. Ranked on Value sales in each bracket
Valeo is the No 1 ambient food supplier in
Ireland
v
v
Under €75m
€75m - €100m
€100m - €150m
7
€150m - €250m
Over €250m

8. Valeo is A Brand Driven Business
No.1 biscuit brand
No.1 canned
brand
No.1 flour
brand
No.1 juice
brand
No 1
or strong No 2
in all our key
categories
No.1
marmalade
brand
No.1 dried
fruit brand
No.1 pasta
brand
No.2 dry
sauce brand
No.2 ketchup
brand
8

9. Augmented by Partner Brands
Complementary
to Valeo
category
positions
9

10. Supported By Strategic Relationships
with our Key Customers
Customer
JBP
Category Partners
PL
Manufacture
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
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11. Flexible & Efficient Manufacturing Operations
Delivering Competitive Advantage
2 Key sites: Cabra and Portarlington
11

12. 2. A Changing and Challenging
Environment
12

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%
13
(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
14

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
15

16. Irish Grocery Market Context - Private Label
Private Label
38.0%
37.5%
37.2%
37.0%
36.5%
36.0%
35.5%
35.5%
35.0%
34.5%
34.6%
34.0%
Oct 11
Oct 12
Oct 13
16
(Source: Kantar Worldpanel )

17. Fresh and Ambient Food are growing within Grocery
+1.9%
+1.8%
-1.6%
+0.6%
-2.9%
+0.7%
-5.3%
(Source: Kantar Worldpanel )

18. Consumers’ coping strategies
2007
6%
31%
63%
2013
Example: Shoppers making more trips, but smaller trips
4%
37%
58%
Shoppers making 218 trips per year in
2007 vs 246 trips in 2013
(Source: Kantar Worldpanel March 2013 )

19. Market Dynamics
Value Conscious Consumer
Suppliers / Brands
Retailers fighting for footfall and share

20. 3. Growth through Transformation
and Innovation
20

21. Our Model - The Virtuous Circle
Generating
Operational
Efficiencies
Driving
Category
Growth with
Customers
Focus on
Core Brands
Renovating
& innovating
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22. Focus on Core Brands - “The Magnificent 7”
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23. Everything Is Based On Insight..
Telephone Research
Focus Groups
Assisted Shops
Digital Media
Workshops
Focus Groups
23
Consumer
Preference Tests
Focus Group
Screening

24. Odlums & Shamrock - Renovating to
Differentiate
September 13
24
September 13

25. Odlums & Shamrock - Innovating &
Stretching
25

26. Roma & Erin- Renovating to Differentiate
September 13
26

27. Erin, Roma & Batchelors - Innovating &
Stretching
September 13
November 13
27

28. Jacobs - Innovating & Stretching
September 13
August 13
October 13
28

29. Investing Behind Core Brands
ad
o b s TV
Ja c
Odlums exclusive
sponsor of the The Great
Irish Bake Off
Airing in October to
December 2013
29
vert
Airing in October to
December 2013

30. Driving Category Growth with Customers
Example – Insight To Execution :
Tesco Home Baking Fixture
Consumer
insight
Category
strategy
Customer
execution
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Customer
JBP
Accelerating
category
growth

31. A €5M Brand Transformation Programme
Creating
Renovating
44
220
New Products
Packs
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32. 4. Building on this Growth
Platform
32

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
33

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
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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
35