The Future of the Organic Industry - Pro Luomu€¦ · 2016 458 65 327 47 21 2011 352 29 37 26 258...
30
The Future of the Organic Industry - The Midsona Perspective -
Transcript of The Future of the Organic Industry - Pro Luomu€¦ · 2016 458 65 327 47 21 2011 352 29 37 26 258...
The Future of
the Organic Industry
- The Midsona Perspective -
A walk in the park or …?
We take interest in what we eat
We care for the planet
Organic sales are up
Organic packaged dry food
Lifestyle
105
2021f
Sports nutrition 48
409
Organic hair and body care
605
43
2016
458
65
327
47
21
2011
352
29 37
26
258
5% 5-6%
7% 8-9%
8% 5-6%
5% 4-5%
7% 9-10%
Total
Source: Euromonitor, Desk research, Interviews
The European market is forecasted to
increase 5-6% p.a. during 2016-2021f as
health awareness increases spending 11-16 16-21f
Good Growth For ”Health Products”
Organic food ahead of the trend
Market growth by country (SEK bn, fixed 2016 prices)
2011
352
55
50
43
38 32
18 13 12
44
42 23
17 16 13
55
2016
458
70
68
58
50
48
72
21 17
15 14
76
73
94
94
605
2021f
29 19
Sweden
Finland
Netherlands
Spain
France
Italy
UK
Germany
Other
Ireland
Norway
Belgium
Austria
Denmark
Switzerland
Total 11-16 16-21f
5%
6%
5%
7%
5%
3%
6%
5%
5%
5%
5%
6%
6%
6%
5%
4%
5-6%
4-5%
c. 8%
7-8%
5-6%
4-5%
5-6%
6-7%
2-3%
4-5%
2-3%
7-8%
4-5%
6-7%
c. 6%
6-7%
Source: Euromonitor, Desk research, Interviews
The Food Industry is Dominated by Global Giants
They struggle with growth
Say it Out Loud!
Artifical colors and preservatives
Pesticides
Preservatives
High sugar content
Growth hormones
Gluten
GMO
The Consumer Wants Natural and Organic
Response
M&A activities (Plum Organics, Bolthouse Farms)
Consumer focus to build brands
Streamlining of cost
They are coming after us
Major cost savings programs
Very selective investments
Opex from 18% to 11%
Large scale mergers and cost savings
WhiteWave
- Leader in organic and plant baseed foods
- Strong in the USA
Move into organics and health
What about Finland?
Over 11 % of the total cultivated area
is cultivated organically
12 million hectares of forests and
peat bogs are certified for organic
wild food collecting (world’s largest)
Biggest sellers are fruit, dairy
beverages and vegetables
Organic products are most
commonly bought from grocery
stores (86%)
Source: Proluomu.fi
Organic sales in Finland
163
202 215
225 240
273
309
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015 2016 2017
Million €
- Organic sales grew 50 %
2012-2017
- Organic market worth 309
MEURO in 2017
Source: Proluomu.fi
5 3,6
1,2 1
6,5
3,4 3,3 3,2 2,6
9,9
8,7
1,7 2
8,4
8,3 8,3
4,7
3,2
DK SE NO FI CH DE AT NL FR
Still low compared to rest of Europe (2016 figures)
Share organic
of packaged
dry food
Share of total
organic food
Source: Euromonitor, Desk Research, Interviews
How to improve? Shelfspace and visibility
How to improve? Consumption in public sector
How to improve? Working together with positive PR
The Trade
The Suppliers
Organisations
The Midsona way
Short facts
Listed on Nasdaq,
Stockholm,
Mid Cap
Turn-over 2017
2,173 MSEK
Turn-over 2018
(proforma)
3,100 MSEK
Focus on
Organic
Midsona estimate
Leading within
health and well-
being in the
Nordic countries
55% of our
products are
organic
Full scale businesses in
Sweden, Norway,
Denmark, Finland
and Germany
Focus on Northern Europe
Increased focus on organic
25
Note: 2017 figures in EUR converted to SEK at 2017 average rate of 9.63
The organic segment now represents more than half of Midsona’s total sales
Midsona Sales (2017) Pro Forma Sales (2018)
Organic products42%
Healthfoods33%
Self care products25%
Organic products55%
Healthfoods26%
Self care products19%
Market leading brands Leader in organic dry foods
No. 1
Three Strategic Business Units
Organic Innovation
Organic
superfood
Healthy
Organic
Snacking
Our organic
teas now in
plastic-free
packaging Affordable
Organic
Beauty
Care
Summary
Good growth prospect for organic food globally
Finland is growing, but from a low level
Opportunity to work together in Finland
- Visibility
- Innovation
- PR
