Eastern Europe – Significant...
Transcript of Eastern Europe – Significant...
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Eastern Europe – Significant Opportunities
Our Business Model For Sustainable Growth
Russia – Building Platform to Fuel a Growth
Conclusions
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Source: AC Nielsen, ERC, Company Data
Per Capita Consumption (kg) 0-3 years
1616
France
Germany
Italy
Czech
Poland
Russia
Romania
Hungary
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Market Value € mln
Source: AC Nielsen/company data
Incl. Russia, Poland, Ukraine, Czech/Slovak, Hungary, Baltics, Romania
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Source: AC Nielsen/company data
Cereals
Milks
Meals
Size of Market
250
347
503
Growth of Segment
33%
21%
27%
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Toddlerisation
Innovation
Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
M
i
l
k
s
Premiumization
Increase usage
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Toddlerisation
Innovation
Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
Milks
Premiumization
Increase usage
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Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
Milks
Premiumization
Increase usage
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Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
Milks
Premiumization
Increase usage
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Estonia
Slovak
Hungary
Poland
Romania
Lithuania
Latvia
Czech
Ukraine
Russia
Bulgaria
1
Source:AC Nielsen
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I postpone my purchase
I go to another shop tobuy my brand
I seek advice from HCPor someone else
I will buy another brand
Source: Global U&A, GFK 2003
MILKS
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Milks: Establish leadership first
Cereals: Win point of entry into food
Meals: From position of strength drive weaning food
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MilksMilks FoodsCereals
72%13%17% of sales
FoodsMeals
72%13%18% of sales65% of sales
Source:company data
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Milks Numico 42.7% 44.4% + 170Nestle 34.5% 35.2% + 70
Meals Numico 16.0% 14.7% - 130Nestle 21.0% 21.3% + 30
Cereals Numico 35.7% 38.4% + 270Nestle 24.7% 24.3% - 40
∆bps
Value Market Share (Numico Universe)
Source:AC Nielsen/company data
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70%
5%
25%
45%33%
22%83%
1% 16%
Specific baby Non-baby food Breast milk
Source: U&A 2006
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%Share of Stomach
Age (months)
Add Value/- quality / ingredients
- convenience
Increase
Usage
Toddlerization
Products until 3 yrs instead of 18 months
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Market Value € mln
Source: AC Nielsen/company data
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Market Shares Total Baby Food (value)
Source: MEMRB
2006 MAT
2007 MAT
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Source: MEMRB 2007
Milks Cereals Meals
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1. Focus on key categories – milks and cereals
2. Increased investment in: ‘best in class’ marketingdistribution expansionmanufacturing to step-change cost base and innovation speed
3. Cover „white spots“ :in product portfoliogeographically in CIS (once points 1 and 2 are achieved)
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Source: company data
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Very strong market position
Continuous investment in brands and consumer insight s
Focus on innovation (very good pipeline)
Very strong, motivated and winning teams
Leverage Danone/Bledina opportunities
Strong Double Digit Growth
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