VI NTAG E 2013

ALTIA

MAGAZINE

#2

ALTIA V I NTA G E 2 0 1 3 2

ALTIA MAGAZINE

#2

VI NTAG E

THE LEADER

APÉRITIFS

STRATEGY

Licence to serve

The plastic explosive

Thirst for change

To enable and encourage

A taste of things to come

The bubble that never bursts

Sharing the best vacation memories

EDITOR-IN-CHIEF

MANAGING EDITOR

CONCEPT AND PRODUCTION

PROJECT MANAGEMENT

DESIGN DIRECTOR

WRITERS

PHOTOGRAPHERS

COVER PHOTO

ASSISTANT DESIGNERS

PRINTED BY

Anu Salmi-Savilampi

Milja Fromholtz

Miltton Oy

Rebeca Romero, Antti Salomaa, Varpu Varpela

Janne Melajoki

Caroline Dewar, Ian Fenton, Patricia Ongpin-Steffa

Caroline Dewar, Heiki Laan, Juho Paavola, Tomi Parkkonen

Shutterstock

Hanna Bruno

Libris, Helsinki 2014

VINTAGE #2

CONTENTS

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Contact information: Altia Oyj, PL 350, 00101 Helsinki. Street address: Porkkalankatu 22 A, 00180 Helsinki.

Switchboard: +358 207 013 013. altiacorporation.com

Sharing the best moments

Short and sweet highlights

The importance of picking your battles

Unveiling Partner Brands’ new full service concept

A shift in the way Altia packages its wares

Two recently-recruited managers give their impressions

Experimenting with coaching as a leadership style

The trends that are shaping the industry

Detailing a profound change in attitudes to champagne

How does the perfect holiday taste?

4

e at Altia have noted a strong ongoing trend towards a culture of sharing. With the rise of social networking, people are using the internet to share all sorts of things, from stories and experiences

to goods such as cars, tools or even apartments. What’s prompting this shift? First of all, sharing makes life easier. It’s useful, not to mention fun. It also happens to be the reason for Altia’s existence - ‘Sharing the best moments’ is the brand promise we seek to fulfill each day.

Moments may not be as tangible as objects, but sharing them is arguably as important and valuable as sharing concrete things. Everybody knows that shared joy is a double joy, but shared sorrow is only half a sorrow.

Historically, the shared economy is said to be just over a decade old. In contrast, the instinct to share moments goes back too far to trace. It’s so deeply ingrained in human nature that it’s not likely to ever vanish. In fact, signs point to the contrary – as societies continue to progress, people’s need to gather together and share moments is growing all the time.

Through our recognised brands, both our own and our partners’, Altia offers the right toast to mark those moments that are worth remembering, whether it’s a cosy evening at the summer cottage, a long-awaited holiday, a wedding feast or a Nobel Prize Banquet. We believe sharing the best moments is a solid basis on which to build our future with our partners, customers and consumers.

This second issue of Altia Vintage communicates the many ways that we at Altia strive to bring you the best beverages for the most meaningful moments you share. We hope you enjoy reading it. 

Hannu Tuominen, Interim CEO, Altia.

“Sharing makes life easier. It’s useful, not to mention fun.”

THE LEADER4

Sharing the best moments

PHOTO TOMI PARKKONEN

W

5ALTIA V I NTA G E 2 0 1 3

Altia’s recently revamped Viinimaa web

site has been a proud success, with

increasing visitor numbers demonstrating

that Finnish consumers find it relevant and

useful in their efforts to learn more about wine

and food culture.

Catering to everyone from beginners

upwards, Viinimaa offers an easy and enter-

taining way to increase one’s knowledge of

wine. The responsive site, accessible conven-

iently using any device, also covers current

trends in food and drink. Recent hot topics

include sparkling cocktails and punch recipes,

for example.

Altia’s partners have also shown a strong

interest in the site, coming to see it as an

excellent channel for cost-effective commu-

nication with targeted consumer groups.

Viinimaa visitors can learn a great deal, for

example, from recipes, stories, and videos

centred on Altia’s partners’ products.

Viinimaa has also been gradually

expanding beyond the digital realm with its

unique Viinimaa bar-in-bar concept. These

locations, so far based in cafes and delis in

Turku, Kuopio and Pori, are implemented

in close cooperation with Altia’s horeca

customers, and serve wines available in Alko

stores. The latest Viinimaa bar-in-bar will be

opened in Tampere during spring 2014.

Wine culture on the web and beyond

Putting logistical excellence on the map

2013 saw a radical shift in Altia’s logistics operations, as the company’s Swedish facilities were

consolidated at a newly-constructed site in Brunna, 30 km north-west of Stockholm.

The new premises combine the operations of Altia’s warehouses in Årsta and DHL/Örebro

into a single 21,000 m2 facility, providing clear long-term benefits for the company’s customers

and partner brands.

With a 10-year lease for the site signed in 2012, construction was completed in autumn 2013

and transfer of operations immediately commenced. Brunna’s 20 transport gates and 96 rows

for outbound shipments now see a turnaround of some 40 trucks per day. Over the course of a

year, these new premises can expect to serve 140,000 customer orders.

This drive for increased quality and efficiency is designed to strengthen the company’s

competitive edge in the Swedish market. “Logistics is an in-house competence we aim to

preserve and constantly develop,” explains Veli-Matti Passinen, Director, Customer Service

& Logistics. “The huge investment in Brunna shows the measure of our commitment, and

the advantages to our customers and partners will be demonstrated clearly in practice soon

enough.”

APÉRITIFS 5

Short and sweet highlights from Altia’s 2013

Brunna, Altia’s new logistic centre, is situated 30 km north-west of Stockholm.

ALTIA V I NTA G E 2 0 1 3 6

I n early March, Altia initiated

a project to transfer all of

its wine and glögg operations

from Svendborg, Denmark to

Rajamäki, Finland. The bottling

volume at the Rajamäki facility,

which amounted to 52 million

litres in 2013, is expected to

increase to about 71 million litres

Aworld-famous Amarone

wine, Masi Costasera

Amarone is used by many

winemakers as a reference for

their own production. Despite

numerous aspirants, Costa-

sera remains unequaled. On

November 1st 2013, Masi

unveiled a limited edition label

for the 1998 vintage of Costa-

sera, which features a unique

work of art by the Swedish artist

Ernst Billgren. The Boscaini

family, who have been behind the

Masi winery for seven genera-

tions, commissioned the label as

part of the Costasera Contempo-

rary Art project. Every two years

Masi will enlist an internationally

renowned contemporary artist to

reinterpret Costasera’s distinc-

tive label. Altia represents Masi

in Sweden and Estonia.

in 2014. Previously the plant

had a record volume of approxi-

mately 61 million litres. Altia will

continue to undertake its logistics

operations in Svendborg.

By consolidating production

at its modern Rajamäki plant,

Altia aims to optimise its supply

and efficiency further. In addition

to decreasing operational costs

significantly, efforts are also

being focused on enhancing

quality. Environmental benefits

will also be gained through the

use of an advanced method

of cleaning the lines, which

minimises the use of water and

washing liquid.

Ramp-up proceeding as planned in Rajamäki

Masi – A unique label for a singular wine

Altia expects to achieve cost

savings as soon as the lines are

reopened in March. As a result

of higher utilisation rates on the

bottling lines, the company’s

overall plant utilisation rate

will improve by roughly 20%.

Approximately 200 additional

inventory items will now be

produced at Rajamäki.

“We are working with a

good network of suppliers who

are helping us make this kind

of ramp-up possible. Several

companies are supporting us

in terms of design, equipment

and technical expertise,” says

Tuomas Akkanen, Operations

Development Manager.

APÉRITIFS6

Upping Stockholm’s house wine ante

A visit to Stockholm wouldn’t be complete without a trip to one

of the city’s world-renowned restaurants. But it might come

as a surprise that such diverse eateries as Riche, Teatergrillen,

Teaterbaren, Sturehof and Taverna Brillo are in fact all part of

the same group: Svenska Brasserier.

It’s not just great food on the table either: in 2013, Philipson Söder-

berg extended their collaboration with the group. The deal includes a

two-year contract for house wine, red and white; house Chablis and

house Sancerre.

Svenska Brasserier made the very informed choice of Jean-Luc

Colombo AOC Côte du Rhône, “Les Abeilles”, in both red and white

varieties. “This is a leap forward in quality compared with its previous

house wines, which were Vin de Pays d’Oc,” added Andreas Carlsson,

Key Account manager at Philipson Söderberg.

The house pouring Chablis will be Domaine des Malandes, from a

27-hectare domaine owned by Lyne Marchive, a partner of Philipson

Söderberg’s for three years now. The Sancerre will continue to be Henri

Bourgeois Les Baronnes, and Masi Campofiorin will also be served by

the glass (and bottle) across the group.

7APÉRITIFSAPÉRITIFS

Claims to the throne

for their expectations, perceptions, guesses

and commentaries on the new flavour on the

drink’s Facebook page and web site.

The ensuing buzz made sure that Blossa

was seen in almost every conceivable store by

mid-October. Around 2,000 responses were

received to the mystery taste challenge, and

on the 13th of December, just as Christmas

preparations were nearing crescendo, the

taste was finally revealed: a delicious blend

of raspberry and rosehip. Traditional and

seasonal, yet fresh and modern, Blossa 13

answered those high consumer expectations

nicely. Who knows where the drink’s restless

charms will lead next Christmas?

During 2013, Altia implemented a new

claims process in order to improve

customer and consumer service. The new

process, which has been taken into use across

all business units, ensures that customer

claims are systematically routed to the correct

individual area at Altia for quick solution.

Customer feedback follows the same path,

allowing the entire company to improve based

on how customers perceive their perfor-

mance.

”Our aim is to reply to all requests within

the same day, or the next day at the very

latest,” says Eeva Joki, leader of the Finnish

Customer Service team. Her team is dedi-

cated to finding solutions for all claims

as soon as possible, never leaving a case

unsolved. “I have worked at Altia for 10 years

and I know a whole bunch of people here. I

could say that I know the right address for

each claim we receive,” she says.

The new collaborative process highlights

the concept of internal customership, helping

Altia employees to understand how they can

serve and assist each other in the big picture.

“We are all each other’s customers at Altia,”

Eeva explains. “I strongly believe that how

quality is perceived depends on the func-

tioning of the whole supply chain.”

Blossa brings the mystery back into Christmas

Since 2003, the annual Blossa Glögg, a

seasonal mulled wine popular in the

Nordics, has become one of the hallmarks

of Swedish Christmas. With flavours varying

from year to year, previous launches have seen

a palpable sense of excitement amongst the

shop shelves as consumers, eager to sample

the new taste, try to make sure they won’t be

left out in the rush.

For Blossa 13, however, things went a little

differently. To provoke a little thought on the

topic of ingredients and flavours, as well as

instil the product with a hint of mystery, the

year’s flavour was not revealed on the drink’s

packaging. Consumers were, instead, asked

7

Viña Tarapacá planted its first vineyards

at the foot of the Andes in 1874. Over

a century later, the winery began exporting

its great wines beyond Chile. Fast-forward

to 2013 and Tarapacá Santa Cecilia Merlot

Carmenère has become the seventh best-

selling red wine at Alko stores in far-off

Finland. The same product topped Altia’s red

wine sales for the year, supported by strong

representation in the hotel, restaurant and

catering sector. A satisfactory 6% growth

in sales in the Tarapacá range, despite a

declining market in 2013, further proves

Finns’ enchantment with the complex and

balanced Chilean imports.

Tarapacá finds love in Finland

8 APÉRITIFS

It’s hard to picture a more prestigious event than the Nobel Banquet. Held since 1934 in the

Blue Hall of the Stockholm City Hall, this gathering hosts more meaningful contributors to the

advancement of the human race than are ever present together elsewhere.

This year’s banquet was particularly notable for Altia, as two of its products were served as

accompaniments to the Nobel menu. Philipson Söderberg had the honour of providing the dessert

wine: Moscato d’Asti NIVOLE from Michele Chiarlo in Piedmont. This accompanied a chocolate

silhouette with nougat and sea buckthorn composed by Conrad Tyrsén and Ted Johansson of

Dessert & Choklad Stockholm.

To follow that sumptuous combination, Grönstedts Cognac was served with after-dinner coffee.

As the Nobel menu’s guiding principle is to incorporate a touch of Scandinavia, the selection

makes sense: this venerable cognac has been a part of Swedish tradition for 150 years.

Liquid gold at the Nobel Banquet

8

In 2013, Altia began by sponsoring in full

the restoration of the Pihtla windmill – which

has been turned into bird-watching station

with accommodation for ornithologists – and

supporting the renovation of the Leedri mill,

the traditional centrepiece of the local commu-

nity’s Midsummer celebrations.

Preserving Estonia’s windmill heritageOn the ancient island of Saaremaa, which

has been inhabited since the time of the

Vikings, a number of traditional windmills are

creaking into life once again.

Saaremaa Vodka, with its windmill-deco-

rated label, is Altia’s leading brand in Estonia.

To strengthen the island’s heritage and

become more involved with the local commu-

nity, Altia and Saaremaa Vodka supported the

restoration of Saaremaa’s iconic windmills.

Under the long-term agreement signed

with Saaremaa Tourism Development

Centre, Altia will sponsor the restoration and

maintenance of these important historic

monuments. The windmills are invaluable

cultural symbols of the famous island, and are

a magnet for locals and visitors alike.

By supporting the restoration and renova-

tion of these unique sites, which are dwindling

in number, Altia is also helping to preserve

the craft of windmill construction – an ancient

skill still practiced in Saaremaa.

The renovation process of Pihtla wind-mill (right) began in April 2013. The restored windmill was ready in October, and an opening event was held to cele-brate. Next in line is the Ilaste windmill, which will be rebuilt in 2014.

Guinea hen mosaic, carrot variation with Gotland truffle,and chanterelle duxelle with truffle mayonnaise

Turbot cupola stuffed with Norwegian lobster,tartelette with lobster on a bed of cream cheese and spinach,

pointed cabbage terrine, lobster sauce and almond potato purée

Chocolate silhouette with nougat and sea buckthorn explosion

WineChampagne Gaston Chiquet Cuvée Tradition

Brut Premier Cru

Château l’Hospitalet La Reserve Rouge 2011Coteaux du Languedoc la Clape

Nivole Moscato d’Asti 2012Michele Chiarlo

CoffeeGrönstedts VO

Facile Punsch

Stenkulla Brunn Mineral Water

Stadshusrestauranger in collaboration with Chefs Andreas Hedlund and Fredrik Björlin as well as Pastry Chefs Ted

Johansson and Conrad Tyrsén, Dessert & Choklad Stockholm

Nobel Menu 2013

9

commit to applying to their supply chains

in a step-by-step development approach.

“In South Africa,” says Göran Klintberg of

Systembolaget’s Supply Chain Management,

“housing for employees was one of the prob-

lems we saw repeatedly. There, employees

mostly live where they work, renting from

estate owners, and this tendency is somewhat

problematic.”

There was also the challenge of commu-

nicating the code’s intent. “Several South

African producers feel that they are being held

responsible for overall working conditions in

the country. In response, we continue to point

out that the code’s aim is simply to raise the

bar in terms of the various areas it covers,

from human rights to working conditions and

environmental issues.”

Though the updated code for 2014 has yet

to be revealed, Göran is sure of the direction

things are taking. “We’ve been seeing the code

becoming more and more comprehensive

and relevant to real-life partner concerns, so

it’s clear that any changes will be to that same

effect.”

Aspiring to more responsible wine production

This year, auditors acting on behalf of

Swedish monopoly Systembolaget turned

their attention to South Africa. The Business

Social Compliance Initiative (BSCI) Code of

Conduct, to which the alcohol monopolies of

Sweden, Finland and Norway are signatories,

requires the auditing, over a two year period,

of suppliers representing two thirds of produc-

tion located in so-called “risk countries”.

The code is not a set of legal requirements,

as few wine suppliers in certain territories

can comply fully with its principles. Instead,

it’s a list of standards that business partners

APÉRITIFS

Summer in a bottle

Fresita is an original blend of Chilean

sparkling wine and natural hand-picked

strawberries. No wonder berry-loving Finns

have fallen for its approachable and delicious

taste. Fresita is currently one of the best-

selling sparkling wines in Alko stores. With

the emergence of a sparkling wine culture

in recent years, consumers have grown

accustomed to sharing a toast to add a little

spirit to the day. Fresita has gained its own set

of loyal followers, with nearly 20,000 fans on

its Finnish Facebook page, while the Viinimaa

web site features new ways to serve and enjoy

this delightful, fruity beverage.

Codorniu s most legendary cava may have a vaguely Nordic-sounding name, but the origins of

Anna de Codorníu are deeply rooted in Catalonia, Spain. They go back to the 16th century, with

the story of a family of winegrowers headed by Jaume Codorníu. Anna de Codorníu was the last

member to hold the family name. After her descendant Josep Raventós visited Champagne in the

1860s, he applied the traditional method for making sparkling wine, but used a blend of Macabeo,

Xarel·lo and Parellada grapes. Born in 1983, the cava named Anna de Codorníu was the first to

incorporate the Chardonnay varietal. It is Codorníu’s most iconic cava, delicate and elegant with

unmistakable freshness. Over the last three years, Anna de Codorniu has performed steadily well,

with a yearly growth of 21% in volume within Altia.

9

An iconic cava thrives in the Nordics

The link between Bollinger and James Bond

goes back to 1956, when the champagne

appeared in Ian Fleming’s novel, “Diamonds

are Forever.” The relationship between the

two icons endures to this day. Altia attributes

the increase in sales of Bollinger champagne

in 2012 to the release of Skyfall, the latest 007

film to hit cinemas. Robust growth continued

in 2013 due to assertive advertising and public

relations.

Pricing initiatives at Altia have also ensured

that despite an increase in taxes, consumers

needn’t pay more to enjoy their beloved

bubbly. As a result of these efforts, Bollinger

single-handedly drove champagne sales in

Alko stores last year. Without the brand, the

category’s performance would have declined.

Bollinger champagne is sold in all 350 Alko

stores throughout Finland.

Bollinger and Bond – a match made in movie heaven

10

PICKING YOUR BATTLESAltia’s interim CEO outlines the short-term wins intended to give the company a new confidence and a surer footing.

get the numbers into a healthier situation.”There is a structure underlying these

efforts, specifying where these short-term victories are to be made within Altia’s markets and product categories, and encompassing partner brands as well as those the company owns. Every available competitive advantage is to be leveraged, and Tuominen highlights travel retail and border trade as areas where he expects to see quick wins made, building on 2013’s successes.

Independence and identityA special emphasis is also being put on partnerships, reinforced by the appoint-ment of Søren Qvist as Senior Vice Pres-ident, Partner Brands. The intention here is to convince existing partners that Altia continues to be the right choice to add value to their business.

“We have sales companies working with us in Norway, Sweden and Finland, each with their own identity and customer base,” says Tuominen. “None of these say ‘Altia’ on the door, though they’re under our umbrella, and it’s important that we revitalise the independence of these companies and their people.”

Independence and self-sufficiency are key here: “Encouraging everyone to take pride in delivering stronger results improves the service we provide to our partners. And another objective, of course, within the area of partnership – besides making sales and marketing progress in the field – is to attract new suppliers.”

Greater presence in cognacAltia’s recent investments in cognac repre-sent another focus. By acquiring Grön-

“Altia has had its problems recently,” admits Hannu Tuominen. “We developed very well for some time, and were able to improve our profits for a few consecutive years. But since 2011, the profits have been falling and the sales, at best, remained static.”

Tuominen, Senior Vie President, Supply Chain and Industrial Services, took charge as interim CEO when Antti Pankakoski was released from his duties in November 2013. A dramatic turn of events, but the company lost no time in assessing where they had gone wrong in a timely, clear-headed fashion.

“We lost out most in three areas,” he explains: “white spirits in Finland, particularly in competition against border trade; partner brands; and wines.” To compound matters, total alcohol consumption in Finland has been in decline, and consumer behaviour has shifted towards drinks that contain less alcohol.

Tuominen sees his role as preparing the ground for the new CEO, Pekka Tennilä, by restoring profitability and developing confidence within the organisation. “We needed a quick, practical response to the situation,” he tells us. This took the form of a short-term battle plan highlighting four areas that will lead the turnaround.

Focus on the present“Our first priority area is very simple, and needs very little explanation. It’s the notion of giving our sales a much-needed injection of energy. This is all about identifying quick wins where we can play to our existing strengths – and make no mistake, we do have them – to build up momentum and

stedts, Renault and Larsen, the company signalled its intention to deepen its involve-ment within this area. Thanks in particular to Larsen, the most recent acquisition, which took place in September 2013, Altia now has access to the cognac supply and production infrastructure in the region of Cognac itself.

“We really have more of a presence in Cognac now,” Tuominen enthuses. “We’re invited to the right tables. The grape growers, distillers and other key players there now see us as a more professional agent. They know we’ve invested a lot in their industry and that’s an important step.”

It’s also of strategic importance that Altia employs its own master blenders: “Our in-house expertise has grown and we are more tangibly a part of the cognac community, while on the marketing side these brands represent very valuable trademarks. In our regions, these are strong names with heritage behind them that we can ably build on.”

Moving faster in wines and spiritsThe issue of agility in both the wine and spirits sectors is also being addressed. In wines, a new generation of purchasers has been gravitating towards smaller producers to the detriment of the more established names that Altia offers. “The monopolies, particularly in Sweden, have observed this also,” Tuominen tells us, “and their order sizes have shrunk in response. This means short-term availability, which is fine for small producers, but we were too stiff earlier to jump on the trend.”

A new wine business entity has been set up under Björn Lönnberg (Director,

STRATEGY10

TEXT IAN FENTON PHOTO SHUTTERSTOCK

11

Wine). The aim of this setup is to speed up development, in order to respond to the market faster and increase Altia’s chances of achieving listings.

“In the past we had our wine experts divided between sourcing, product development and marketing. Now we’ve brought them all together, so the very same people who deal with the grape growers and wine samples also visit the customers.”

Changes within Altia’s production chain will also have an effect here, and Tuominen points out that the relocation of bottling functions from Denmark to Rajamäki for efficiency reasons will bring costs down.

In spirits too, a recent appointment will solidify Altia’s aims. As Senior Vice President, Altia Brands, Michael Bech-Jansen is tasked with helping the company defend its position in spirits through marketing and product investments, renewal of the regional brand portfolio (ably exemplified by the development and launch of products like Valhalla) and core brand strategies. Accelerating the time to market is a necessity here also.

With each of these focus areas now in place, Tuominen emphasises the importance of actively following the company’s progress: “We’re making weekly and monthly checks of the effects these developments have on the ground. ‘Short-term wins’ really have to work in the short term, and hopefully they will provide the foundations for the growth our teams are pursuing.”

STRATEGY 11

NET SALES BY BUSINESS SEGMENT%

Altia Brands 40.4 (42.7) Partner Brands 29.2 (27.5) Industrial services 30.4 (29.8)

NET SALES BY COUNTRY %

Finland 47.3 (44.8) Sweden 31.3 (33.4) Others 21.4 (21.8)

ALTIA V I NTA G E 2 0 1 3 12

BOTTLING & PACKAGING

NEW PRODUCTDEVELOPMENT MARKETINGSALES

LICENCE TO SERVE

• Long experience as brand

builders

• High-level planning to secure

positioning

• Largest media coverage and

spend

• Promotional access to over 20

million potential consumers

• Securing clear consumer

focus via Altia’s own market

intelligence team

• Largest sales force in the

region

• Complete geographical reach

• Participation in 150+ trade

fairs in the region

• Covering all sales channels

• Huge network and access to

key decision makers

• Consumer trend-based

suggestions

• Involvement in both design

and product development

• Highly modern facilities with

state-of-the-art packaging

machines

• Local bottling securing a longer

shelf life

• “Fridge-friendly” bag-in-box

• Large variety of bottle shapes

• Full-range PET

• High level of flexibility, and

ability to pack both 6- and

12-bottle cases

For Søren Qvist, you only live twice: once in charge of Altia’s Danish, Baltic and other open market operations, and once heading up Partner Brands, where he is ready to unveil a new full service concept.

Having recently made the transition from managing Altia’s Open Markets to the position of Senior Vice President, Partner Brands, Søren Qvist can be said to have a comprehensive view of the compa-ny’s sales and marketing operations. His new

mission will be to show existing partners that Altia continues to be the right choice to add value to their business, while attracting new ones with the same strong actions.

“I’ve been with Altia since 2007,” he says, “which is why I’m very familiar with how the company works, all the way from one business area to the other.”

For Qvist, market experience has highlighted the importance of understanding one’s customers, achieving the closeness needed to follow both their current needs and future concerns. “Partner Brands’ operations will find inspiration in the structure

of Open Markets, where everything happens on the spot. From one hour to the next you could have a new situation and you need to react to it. To make the best possible move, you need to be right there next to your customers, serving their needs fully.”

Qvist sees his main task as developing this closeness even further, breaking down silos to ensure a more flexible, dynamic response to market opportunities. This is the foundation of Partner Brands’ revised service concept (see below).

“Naturally, our wine tenders are often very carefully detailed, by region and other traits,” Qvist explains, “but there can be huge variety within those areas, and that’s why we need to be the partner that our customers keep coming back to. We need to carry a little more weight in the running for these tenders, getting more deeply acquainted with the monopolies’ structures and needs and altogether exerting more influence.”

FULL SERVICE CONCEPT

TEXT IAN FENTON

PHOTO WICKMANN+BENDTSEN

13ALTIA V I NTA G E 2 0 1 3

DISTRIBUTIONCOUNTRY

SPECIALIST TEAM

ACCESS TO CUSTOMERS

DEDICATED CONTACT PERSON

• For regional partners we offer

a single point of contact

• Access to all markets through

one resource

• Experienced specialists in both

wine and spirits

• High competence level

• Access to all business levels

from executive to production

• Securing access to decision

makers via strong network

• Coverage of all categories and

business segments in each

market

• Regular key accounts

meetings

• Full-scale business setup in

each market

• Deep understanding of the

markets

• Ability to drive and develop

segments

• Spotting trends as they

emerge

• Full coverage in all Nordic and

Baltic markets

• Efficient route to market

• Flexibility to scale all

businesses, in terms of both

size and speed

• Best warehouse coverage in

the region

“To make the best possible move, you

need to be right there next to your

customers, serving their needs fully.”

14 ALTIA V I NTA G E 2 0 1 3

I n 2012, Altia used polyethylene tere-phthalate (PET) – more commonly known to most of us as recyclable

plastic – to bottle 9.7 million units of its various products. In 2013, that figure more than doubled, rising to 20.3 million. It’s an astounding number, but why such a big leap, and why now?

“We’ve bottled certain white and brown spirits in PET for years already,” says Arja Liimatainen, Director, Regional Brands & Marketing, “but they are really booming at the moment.” The effect of PET bottling on consumer uptake is unmistakable: “Every single product that switches pack-aging format from glass to PET grows in sales,” she explains.

Altia has been following consumer behaviour in relation to different pack-aging methods for some time, and saw 2013 as an optimal moment to make major launches in PET. “Consumers have demon-strated strong approval of PET bottles in white and brown spirits. Appeal is on the increase in wines too.”

Perhaps general environmental concern is a factor here, but in the spirit market, so is practicality. Consumers benefit from the fact that PET bottles are easier to handle, lighter, and less breakable. The same convenience is also advantageous to Altia’s retail partners, as positive feedback

from the monopolies has shown. Once the strong stakeholder approval

was noted, it was time to make some major investments, beginning with the bottle itself. Arja takes up the story: “In preparing a new bottle for our spirits lines, we wanted to utilise Finnish competences and compa-nies, so we had it specially designed in Finland for Altia. The bottles are also blown in Finland, so we’re able to use local resources to the greatest possible extent.”

Big investments were required on the production side too. At Rajamäki, Altia’s main facility, an entirely new production line for PET bottles was implemented, which has enabled the company to follow through on its growing plastic packaging ambitions.

PET represents what can only be described as a win-win scenario for Altia in the long term. Besides the strong consumer appeal and apparent sales boost, PET bottles are 89% lighter than their classic glass equivalents. In 2013 alone, this has generated a 4.2 million kg weight reduction in Altia’s cargo transportation.

As to the future, Arja seems quite sure of the direction: “Most of our white spirit products, along with many brown spirits, will be moved to PET.” With figures like the above, it’s hard to see glass making a comeback.

THE PLASTIC EXPLOSIVE

TEXT IAN FENTON

PHOTO ALTIA

In the past year, a huge shift has taken place in the way Altia packages its wares.

7686_Nederburg Awards_A1.indd 1 2012/10/29 4:54 PM

7686_Nederburg Awards_A1.indd 1 2012/10/29 4:54 PM

ALTIA V I NTA G E 2 0 1 3 16

and helping the company make the right decisions.

Rather than looking backwards, we also need to have a

forward-looking perspective, being on top of events all

the time, identifying risks and opportunities. That’s the

kind of attitude I want to develop in my team, but the

same also applies elsewhere: there are a lot of good things

happening and right now we need to prioritise and crys-

tallise our direction.

MB-J: I think it’s critical that we prioritise. It’s a cliché,

but we need to do fewer things better, generating better

results, and we need to do them in markets where we

can implement things quickly. Often we don’t have the

chance to move fast in the monopoly markets in Finland,

Norway and Sweden, but we can be quicker in what we

call open markets: Denmark, Latvia, Estonia, the export

department, travel retail.

MP: The short-term focus is definitely on generating

growth to turn things around in these markets. I think

that’s the key thing for everybody to remember during this

interim period. In a way, this will give us the momentum

to change.

SO WITH THAT IN MIND, HOW DOES THE NEAR FUTURE LOOK?

MP: I think there’s actually a danger in talking too

much about the future. We should be concentrating

on the here and now. We have many of the strengths

we need: we have strong brands, and a strong heritage

in our local markets. There’s a lot to do right now – in

the present moment – and that approach will help to

empower people and support their successes.

MB-J: This year is a very tactical one for the company,

and as soon as we start to achieve and celebrate these

smaller wins, we’ll start to get into motion.

As I’ve been visiting people around the company

during my introduction, one of the things I have empha-

sised is that we should ask ourselves something every

single day: “What can I do today that will have an impact

in 2014?” I believe if we can answer this question, we’re

on the right path.

WHAT WERE YOUR FIRST PERCEPTIONS AS A NEWCOMER TO ALTIA?

Matti Piri: This company is in an interesting phase.

Expanding, and broadening the portfolio of products,

represents quite a big move in this market. We’ve been

ambitious about the targets for growth, and that chal-

lenge caught my interest immediately.

Michael Bech-Jansen: My perception was that

Altia sometimes sees itself as bigger than it is. Moving

forward, we should remember that Altia isn’t as large as

the global players, which in fact is our competitive advan-

tage. We can be quicker, and more agile, in what we do.

HOW DO YOU RESPOND TO THE COMPANY’S CURRENT CHALLENGES?

MB-J: I quickly realised that the company is under-

going a significant change. I wasn’t aware of the size of

that change before I joined, but I’ve come to understand

why it’s needed.

I’ve also been positively surprised by the willingness to

change and the commitment and resources which have

been dedicated to transforming the company. That’s one

of the major topics I have experienced during the begin-

ning of my time here.

MP: We have our challenges, but the only way is

upwards – the only way is to turn things around and

improve our situation. That’s what motivates me and I

can see that it energises the people around me too.

WHAT’S UNIQUE ABOUT ALTIA’S SITUATION?MP: Compared to my previous positions, what’s nice

about Altia is that the company is in a stage of becoming,

so for somebody like me who wants to make my own

mark, there are a lot of things that can be developed and

much that isn’t necessarily ready yet. The company is

simply in a different phase of development than what I’m

used to and personally I find this very exciting.

Looking at my own organisation in finance, yes – we

want to be world class, we want to develop ourselves, with

the finance side becoming more of a business partner

Thirst for change

TEXT IAN FENTON

PHOTO TOMI PARKKONEN

For two senior managers recently recruited to Altia, their first couple of months on the job had to be sufficient time to get to grips

with a challenging situation, and come up with some answers.

17ALTIA V I NTA G E 2 0 1 3

While Matti Piri (right), Altia’s recently-appointed CFO, and fellow newcomer Michael Bech-Jansen, who took the mantle of Senior Vice President, Altia Brands, may be relatively recent arrivals, there’s one thing they are both in little doubt of: the company’s potential.

ALTIA V I NTA G E 2 0 1 3 18

KRISTEL:“I had been searching independently for these types of courses about a year ago and was inter-ested in participating. When the course was offered at Altia, it was very good timing for me because it was the type of course I would have taken anyway.

The training aimed to give us an understanding of what coaching means. Now I can say I have a clear picture of the difference between coaching and mentoring. Although we learned quite a few ways to use coaching in our daily lives, the focus of the course was on our performance as profes-sionals and how we as managers can improve and develop our colleagues’ skills.

Through coaching I can help people under-stand what they should do. As a leader, my task is to encourage the members of my team and enable them to know what is required of them, but I also need to let them think for themselves. I believe that in daily life what’s needed is a combination between mentoring and giving colleagues the time and space to be independent and find solu-tions on their own.

Through the course I have definitely gained a better under-standing of how peoples’ minds work. When an environment is unstable, people don’t function to their fullest capacity. They can’t innovate, as they are worried all the time.

For me as a manager, this means I have to ensure that the people on my team feel secure. By motivating them in their everyday work I can help them deliver better results in their tasks.

Customers and suppliers definitely benefit too when we at Altia are motivated, positive, innovative and collaborative.

If I had to share the most important lesson I gained from the training it would be to listen to others. Let people talk, and let people listen. Quite often we talk too much and don’t allow other people to share what they think.”

WHO? Kristel Mets is Managing Director of Altia Estonia, and previously led Altia’s Latvian organisation. She has been working for the group for seven years.

TO ENABLE AND ENCOURAGELeadership development is one means through by Altia seeks to enhance its performance culture. Two managers share their learning experiences in using coaching as a leadership style.

A ltia’s most recent personnel survey results show that employees find their work meaningful and enjoy the relaxed and friendly working atmosphere within the company.

However, Altians’ responses also reveal that they see room for improvement in how objectives and direction are communicated.

One initiative that seeks to address this sentiment is training for managers, which aims to strengthen the company’s leadership culture by enhancing engagement and performance. By cultivating its leaders, Altia also enhances its Performance Culture, an aspect of the Group that was pinpointed as a strategic focus area in 2012.

Altia believes that coaching is a key element in effective leader-ship. For this reason, the company is currently providing an inten-sive training program for its managers that focuses on coaching as a leadership method. The course is designed to enable participants to hone their skills over an extended period of time. After a face-to-face workshop, the participants practice the skills in their teams and then come back to share their experiences virtually. Addition-ally, managers can continue learning in virtual practise sessions and get one-on-one feedback on their coaching skills. Two groups completed the program in 2013.

Kristel Mets and Veli-Matti Passinen are two of the 22 managers who participated in the training last year. We asked them to share their experiences on the course.

TEXT PATRICIA ONGPIN–STEFFA

PHOTOS HEIKI LAAN, ALTIA

“As a manager, I have to ensure that the people on my team feel secure.” Kristel Mets

19ALTIA V I NTA G E 2 0 1 3

TEXT PATRICIA ONGPIN–STEFFA

PHOTOS HEIKI LAAN, ALTIA

VELI-MATTI: “I saw the training as a good opportunity to learn and develop my own thinking. I believe leadership development is a continuous process of learning and personal growth for me, for my team and the whole organisation.

As a manager and leader, different tools and skills are needed depending on the situation.

Courses like these don’t only improve the skills of individuals, they also help us progress in our journey to become better leaders by giving us input on our behaviour. When training is done right, participants get excited and start to share their experiences. They become change agents without even realising it.

For Altia to achieve its targets as a company we have to constantly improve our performance. Leadership is an integral part of that, and this is why leadership development is an important part of our agenda.

Through coaching we are better able to bring the intelligence out of people. You open the atmosphere and get knowledge, input or solutions from individuals and teams. It’s a more collaborative way to get further. Through a good coaching process, the person makes the right decisions on their own. That enables much better buy in.

Ultimately, we exist because of our customers. By improving our leadership skills and performance in this manner, we can offer our customers even better products and services for their needs.”

WHO? Veli-Matti Passinen is currently the acting head of the Altia Supply Chain. In addition to this role, he is also Director of Altia’s Customer Service & Logistics organisation. He has worked at Altia for just over five years.

Mutual trust is essential

P eter Straadt, partner at professional coaching company

AS3, explains that the target of a coach is to help people

reach their full potential in their working lives.

“Coaching aims to bring new perspectives into a person’s

horizon. A good coach works with someone to help them

understand their situation and find new approaches on their

own. This strengthens people’s ability to achieve their objec-

tives while staying true to their own values,” Straadt explains.

He shares a piece of advice that could be useful to both

leaders who act as coaches as well as to the recipients of the

coaching: “The more you invest into coaching the more you get

out of it. The more focused you are and the more energy you

give, the more you get back in results,” Straadt asserts.

He provides one caveat, however: “Coaching can only work

if there is a situation of mutual trust – a good coach makes

people feel that they are in good hands,” Straadt says.

AS3 served as Altia’s partner in delivering workshops for

personnel in change situations in 2013. AS3 Companies have

specialised in providing counselling for management and staff

since 1989.

To ensure that all Altia’s managers get the chance to participate in the training, the program continues to be offered to those interested. Four more classes will be available to participants in spring 2014.

“Through coaching we are better able to bring the

intelligence out of people.”Veli-Matti Passinen

ALTIA V I NTA G E 2 0 1 3 20

Milla Sorsakivi and Fredrik Bergström share insights on the trends that are shaping the industry’s present and future.

TEXT PATRICIA ONGPIN–STEFFA

PHOTOS ALTIA, SHUTTERSTOCK

TODAY

1 Storytelling. The practice of telling stories predates civilisation itself. However, the use of stories

in marketing and branding is a relatively new development, one that’s now visible in the alcohol industry. To stir consumers’ interest, stories don’t have to be limited to tales of a long heritage. “Even new brands have good stories to tell, say, about their origins, craftsmanship, the people who grow their ingredients or other details that convey authenticity,” Milla Sorsakivi explains.

2 Upgrading. A growing number of people are becoming conscious of their consumption and planning

their purchases more deliberately. They may consume less, but when they do consume, they often see it as an opportunity to splash out and indulge. And on certain occasions, only the best will do. Evidence of this tendency is seen in some categories where sales have grown even as volumes have fallen. “The sales of premium priced red and white wines in bottle have increased on all Nordic monopoly markets,” Fredrik Bergström reveals.

3 Lightness. From more subtle flavours in beverages to the lightweight PET used to bottle

them, the desire for a feeling of lightness is taking on many forms. For instance, a major trend towards lower alcohol content is seen in the ongoing popularity of ready-mixed vodka drinks. Light wines have shown remarkable growth in the UK, but drinkers in the Nordic countries have yet to take an interest in them. In Finland and Scandinavia, the yearning for the lighter side of things is demonstrated by the preference for a more delicate pink hue in rosé wines.

4 New flavours. There is nothing new under the sun, as the proverb states. Yet the thought doesn’t

curb consumers’ appetite for new tastes. “There’s an endless curiosity and desire for something new. Even after finding something they like, consumers still try to find something new the next time they purchase,” Bergström says.

A TASTE OF THINGS TO COME

21ALTIA V I NTA G E 2 0 1 3

It seems inevitable that consumers will play an even more instrumental role in the future. “Consumers do want to be influ-encers, to be taken seriously and listened to. A shift of this kind is bound to happen because it can already be seen everywhere else,” Sorsakivi predicts.

1Femininity. When it comes to tastes, female and male consumers tend to be divided, and traditionally,

it’s men who have favoured whisky. A survey of the whisky shelf shows row upon row of masculine-looking bottles. However, young women are beginning to develop a taste for brown liquor, particularly in Sweden. “There are a lot of wonderful flowery whisky tastes and notes. I think those are the ones that really captivate female consumers. It might be easier to get women to try these products if they were a bit more feminine and approachable,” Sorsakivi proposes.

2The full experience. When you go to a bar, chances are you’re looking for more than just a drink. You

expect to be served by a skilled bartender who might even put on a bit of a show as he prepares (and garnishes) your beverage. The atmosphere, the music and the crowd all contribute to the experience. While alcoholic beverages are its source of revenue, Altia recognises that they’re not the main issue for most consumers today. “We seek to build around products and create whole experiences for consumers,” Sorsakivi explains.

3Greater transparency. People expect businesses to communicate with them and be open. More

importantly, they expect companies to be accountable for the impact they have on society, the economy and the planet. “Consumers aren’t only interested in how we make things and where our products come from any more. They want to know what’s behind our brands and understand how we operate,” says Sorsakivi.

“For example, when we get feed-back, we need to be able to explain what happens to it,” she continues. These requirements will influence the way Altia interacts with consumers even more over the coming years.

4The consumer as influencer. Consumers are increasingly shaping the industry, instead of

things working the other way around. The tide has already turned in many industries, but in the Nordic countries, the alcohol industry is restricted by the existence of monopolies. However, these institutions aren’t immune to change, as Bergström elaborates: “In 2013, Systembolaget changed their distribution model, and Alko is planning to take a similar model into use in 2015. Both are becoming much more consumer driven than before.”

TOMORROW

ALTIA V I NTA G E 2 0 1 3 22

holm’s Grand Hotel, has been in a great position to observe changing attitudes to champagne in recent years: “Five to ten years ago, people tended to see drinking champagne in a restaurant, or even a trip to a restaurant in itself, as a special, celebratory event. This way of thinking has changed, though, and now good restaurants are busy every night, with champagne selling well even during the week.”

Lagergren sees this as a more modern, interna-tional take on fine dining, which has reached Stock-holm after spreading outwards from cities like New York and London. But like Professor Alho, the sommelier has caught the champagne bug, and longs to see its consump-tion spreading even beyond the level of everyday luxury: he has even compiled a special wine menu to accompany the Grand Hotel’s dishes – cham-pagne with every course!

“You should start with a fresh champagne with a lot of acidity before you begin dinner,” he recommends. “That activates the palate. For the first course you should also have something acidic, maybe a champagne with more body. And with the main, you can have a vintage, full-bodied champagne with a lot of pinot noir.

“If you’re having butter-fried fish, an oak-aged cham-pagne with a lot of body makes

“Champagne’s strongest association with luxury and glamour comes from France’s Belle Époque, which lasted from the 1870s until the First World War. This was the era in which the upper classes really came to like champagne: they would organise all kinds of festivities and champagne was every-where, both in private houses and in luxurious restaurants like Maxim’s in Paris, not to mention Brussels, London, or Vienna…”

Once we have Professor Olli Alho, cultural commentator and retired director of Finnish national radio, talking about his favourite passion, the floodgates are truly open. Champagne seems to exert a fascination, turning casual consumers into devout followers, but such fans are accompanied in their enjoyment by an altogether more frivolous set: those who drink it to make a statement.

“In the 1950s and 60s, we begin to see cham-pagne emerging again,” Alho tells us. “Thereby hangs the story of the middle class getting enough money and self-confidence to buy the kinds of things that formerly only the rich could enjoy. People began to mould their lifestyles to resemble the upper classes.”

The same behaviour, of course, continues today, as people use symbols to project an image, consciously or unconsciously, and champagne, along with other luxurious pastimes, provides a visible signal of newly won status and increasing economic power.

In some ways, this aspirational behaviour is the foundation of champagne drinking ’s modern age. While luxury-oriented brands still exist, the bulk of us today will at least have enjoyed champagne as the mark of festive occasions in our lives: perhaps, if we are lucky, even as a semi-regular treat.

Johan Lagergren, head sommelier at Stock-

THE BUBBLE THAT NEVER BURSTSWith attitudes to champagne undergoing a profound shift,

two enthusiasts get to grips with the drink’s past, present and future.

TEXT IAN FENTON

PHOTOS SHUTTERSTOCK

a beautiful combination, particularly with the fish we serve here in the Nordics. And for dessert, a champagne with some sweetness is wonderful.”

Lagergen assures us that his champagne-menu diners leave feeling light-hearted and happy, in contrast to those who drink more heavily with their food. Perhaps this is the secret key to champagne’s continuing popularity: those bubbles simply make people happy.

23

“Now good restaurants are busy every night, with champagne selling well even during the week.”Johan Lagergren

ALTIA V I NTA G E 2 0 1 3

ALTIA V I NTA G E 2 0 1 3 24

SHARING THE BEST VACATION MEMORIES

KRISSEntrepreneur, Estonia (On the right)

LOTTA-LIINAResearcher and PhD Candidate, Finland

JANExecutive, Sweden

A TASTE FOR ITALIAN WINES“I travel quite often, and I’ve always enjoyed it. When I travel for business I generally don’t get to see so much of the destination. Instead it’s mainly about flights, airports, hotels and offices. I don’t get to experience so much of the local culture or what the city has to offer.

I have three grown up children, so my wife and I tend to holiday together. We both enjoy travelling. Personally, I like exploring Italy. I’m a big fan of Italian wines, particularly those from the Piemonte region.

One memorable vacation for me was about three years ago on the Amalfi coast at a small village called Portofino. It’s a beautiful area with wonderful food.

I was taking an Italian language course over the first two weeks, and my wife came down to join me for the last ten days. We stayed at a little hotel with an amazing view over the water, and all of the boats. They have every kind of seafood, and fantastic vegetables which are much fresher, richer and more flavourful than what we’re able to get in Sweden or Scan-dinavia.

I don’t think we will be going there again any time soon but I would definitely like to revisit the place at some point.”

TRANQUILITY AND NATURE“I travelled to Northern Mozambique, to the Cabo Delgado region last spring. I had come from Cairo, a hectic and commer-cialised city. Northern Mozambique is less industrialised and allows one to re-con-nect with nature. A somewhat remote place – disconnected from the world for good and for bad. Places like this make you go back to the fundamentals of life.

I stayed in a beautiful eco-lodge that is very much engaged with the local commu-nity. The name of the place is Guludo Lodge. There was no electricity there. Sure they could have brought in a huge power generator just for the lodge, but their idea is not to have electricity until the village has it. It was also unique that one could make contact with the local people and the staff working at the lodge.

Also, everything there is locally produced – every single thing. And then you get fresh fish from the sea.

But perhaps the most exceptional thing about the place was its quietness and closeness to the rhythm of nature. One woke up with the sun and went to sleep not long after sunset. This is what I mean by the fundamentals of life. “

INSPIRATION AND COMPANY“For me, trips fulfil different purposes and are special for different reasons.

One that is memorable for being the most romantic was last year when I visited my sister in Dubai. I had a wonderful time bonding with her, and on one of the last days of my stay she said we were going to a fancy dinner place named Pierchic.

We got all dressed up, and when we arrived we walked down this very long wooden bridge to the restaurant, which is on the water. What I didn’t know was that my boyfriend had planned the whole thing with my sister and her husband. He had flown down to surprise me and propose!

He was coming down from the other end of the bridge. I had expected him to be so far away, and most people don’t fly down for only three days! I didn’t think it was him. I was so shocked, and a million thoughts were running through my brain.

My sister didn’t say anything at first, then she said, “Kriss, look who else is here!” I was completely dumbfounded. It was so amazing and sweet. It was in November, 25°C and the moon was full. It was absolutely picture perfect.”

There are a million great places to visit in the world. We asked three people from Altia’s market areas what makes a perfect holiday.

TEXT PATRICIA ONGPIN–STEFFA

25ALTIA V I NTA G E 2 0 1 3

Alkohol är beroendeframkallande

CHILL OUT PET, SMART CHOICE.

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Chill Out PET matches the most food courses from

grilled salmon to chicken salad or a juicy steak. The

smart PET bottle is smaller, lighter to carry and it is

easily recyclable. Chill Out PET can be found in

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Enjoy responsibly.

www.annadecodorniu.es

Anna is unique