At a glance
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Proteins, fats, vitamins B2 and B12, minerals, sugars... milk
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Royal FrieslandCampina daily provides millions of consumers all over the world with dairy products containing valuable nutrients from milk. The quality of every step in the chain is determining for the success of the entire chain. It starts with grass, the daily diet of cows. The cow is able to transform grass into a valuable foodstuff: milk. This milk is then processed into a wide range of dairy products, ranging from yoghurt, custard, dairy-based beverages, cheese, butter and infant nutrition to ingredients for the food industry. Satisfied customers and consumers are a prerequisite for the continuity of FrieslandCampina and, consequently, for the farms of the member dairy farmers. The chain is complete.
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Strategy route2020: sustainable growth and value creation 6
Providing the growing world population with the right nutrients is the
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challenge for the coming decades. By offering trustworthy, relevant Better nutrition for the world, a good living for our farmers, now and for generations to come
and nourishing dairy products, FrieslandCampina contributes to the safeguarding of food and nutrient security. The purpose statement – nourishing by nature – stands for better nutrition for the world, a good
Leverage the Dutch dairy heritage and unique milk chain in a sustainable way to win the hearts and minds of our customers and consumers
living for our farmers, now and for generations to come. FrieslandCampina’s unique dairy chain underpins its activities. In order to remain successful, the focus must remain on sustainable growth in the most valuable product market combinations and attention must also be paid to product market combinations that use a lot of milk supplied by the members. At the same time, it is important that the company continues to be managed in a very cost-conscious way to ensure the availability of the means to achieve this envisaged growth. Having an efficient organisation is an important prerequisite for optimum processing and valorising of all the milk supplied.
Expand the leading positions in growth areas
Protect the volumes in home markets
Highly engaged, capable people who work effectively together
Build future markets
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The dairy farmer. Well cared-for cows are the basis for high-quality milk. The better a cow feels, the more readily she gives milk and the healthier she remains. Dairy farmers care for their cows and calves day in, day out. They also pay a lot of attention to growing the feed for their animals. The majority of this feed is the grass and corn grown on their own farms. The skill and professionalism of its member dairy farmers underpin the quality, safety and sustainability of FrieslandCampina’s wide range of dairy products.
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The cooperative tradition FrieslandCampina is one of the world’s
Royal FrieslandCampina N.V. All these member
The 19,000 member dairy farmers jointly form the
the Supervisory Board of the company. The Chairmen’s
largest dairy companies and its cooperative
dairy farmers are independent entrepreneurs.
Cooperative. The Cooperative’s geographical area of
Meeting is comprised of the 21 district chairmen, who act
operations has been divided into 21 districts, each of which
as a sounding board for the Board.
tradition dates back more than 140 years.
On behalf of its member dairy farmers,
has a District Board. The Cooperative’s members appoint the
Via Zuivelcoöperatie FrieslandCampina U.A.
FrieslandCampina strives for sustainable
Boards of the 21 districts. Together the 210 members of the
The Cooperative holds all the shares in the capital of
District Boards form the Cooperative’s Member Council. The
Royal FrieslandCampina N.V. The activities of the various
the member dairy farmers in the Netherlands,
growth and value creation.
Board has nine members and together with four Supervisory
subsidiaries have been divided into five business groups.
Board members from outside the Cooperative jointly form
Founding of Arnhemse Melkinrichting
Friesche Vlag, Dutch Baby and Bonnet Rouge are registered for international markets
Founding of CCF in Leeuwarden
Merger of C oberco, Friesland Dairy Foods, De ZuidOost-Hoek and Twee Provinciën
Founding of Coberco in Zutphen
Acquisition of Nutricia Dairy & Drinks Group
2014
2012
2004
2001
1997
1965
1919
1913
1879
Germany and Belgium own 100 percent of
Friesland Foods receives Royal designation on its 125th anniversary
Acquisition of Alaska Milk Corporation Philippines
Organisational structure
Acquisition of Olam Ivory Coast and DEK srl in Italy
Zuivelcoöperatie FrieslandCampina U.A.
holding all shares in
Members Districts Member Council
2015 2008
Merger of Friesland Foods and Campina
Founding of the first dairy co-operatives
Founding of the De Meijerij Veghel / De Melkindustrie Veghel
Campina brand introduced
Founding Campina Melkunie
Acquisition of Südmilch (Heilbronn)
International launch of formation of international Campina brand and co-operative
Acquisition of Zijerveld and Veldhuyzen B.V. and G. den Hollander Holding B.V.
General Meeting of Shareholders
Board Supervisory Board
Acquisition of the activities of Anika Group in Russia
Executive Board Corporate & Support
2013
2001
1993
1989
1947
1926
1880 Nine farmers take over a cheese factory in the Dutch Wieringerwaard
Royal FrieslandCampina N.V.
Chairmen’s Meeting 1
Acquisition of mozzarella producer Fabrelac in Belgium
Acquisition of IDB Belgium N.V.
1871
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Founding of joint venture Friesland Huishan Dairy
Consumer Products Europe, Middle East & Africa 1
Consumer Products Asia
The Chairmen of the 21 District Councils
Consumer Products China
Cheese, Butter & Milkpowder
Ingredients
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The transport. The milk is transported from the farm to one of FrieslandCampina’s production facilities in a milk truck. The quality of the milk must be the same when it arrives at the production facility as it was when it left the farm. The milk truck driver plays a major role in ensuring this. From inspecting the milk in the storage tank at the farm and taking samples to the hygiene within the milk truck itself. The transport is becoming increasingly sustainable through the use of cleaner fuels or even the generation of energy via solar panels on the milk trucks.
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Milk 14
Milk, by nature, contains valuable nutrients
FrieslandCampina uses the natural nutrients
cheese and cheese help people to remain
such as proteins, vitamins B2 and B12 and
from milk as the basis for a broad range of
physically active. Proteins are important for
dairy products. In this way FrieslandCampina
the build-up and maintenance of the muscles
minerals such as calcium. This is why milk,
wants to make its contribution to a healthy
and calcium is needed for strong bones. Milk
as are vegetables and fruit, fish, oil and
and varied diet for everyone.
and cheese also contain vitamin B2 and B12,
grains, is part of a healthy diet. Yoghurt and
Dairy and physical activity fit in well
properly and to provide the muscles with
cheese are recommended as healthy nutrition
together: the nutrients in dairy products
energy.
as well. A healthy lifestyle with enough physical activity and a varied and healthy diet is important at all ages, young and old, everywhere in the world.
which help the nervous system to function
such as milk, buttermilk, yoghurt, soft curd
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The employee. Investments in improving the quality of the products and the safety at the production facilities in order to achieve optimum valorisation of the milk are continuous. The skills and professionalism of the employees are determining for FrieslandCampina’s success. Inspiring and motivating employees, encouraging entrepreneurship and providing a safe working environment are priorities.
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Working at FrieslandCampina 18
FrieslandCampina is an international company
Within route2020 this is translated into a way of working
with a strong local character: people-oriented,
that revolves around alignment, accountability and action.
approachable and open. FrieslandCampina is
of safety, to take on challenges together, to develop together,
convinced that it can get more out of milk
to take responsibility themselves and to effectively act and
and achieve its ambitions only with motivated
forms the basic principle in this.
and well-trained employees. The aim of
Employees are encouraged to act as role models in the field
take decisions. FrieslandCampina’s code of conduct, Compass,
FrieslandCampina puts considerable effort into achieving the
FrieslandCampina’s company culture and
safest possible working environment for its employees. The
working environment is to enable individual
global safety programme within FrieslandCampina ensures
talents to maximally develop themselves and,
safety.
at the same time, make a contribution to achieving the company’s ambitions.
a proactive approach towards continuous improvement of
FrieslandCampina is always looking for new talent in all possible disciplines throughout the company. All employees are valued for their skills and supported in fully developing their knowledge and expertise. This helps FrieslandCampina and its people to achieve their goals.
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Quality and safety. The quality and safety of milk and products are FrieslandCampina’s highest priority. Together with the cooperative’s member dairy farmers, FrieslandCampina commands and controls the entire milk production chain from the farm to the end product – from grass to glass. This guarantees the quality, safety and sustainability of the products.
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Guarantee throughout the chain 22
Every customer and consumer everywhere
Foqus
The guiding principles of the quality control are the statutory
Foqus planet
around the world must be able to trust that
FrieslandCampina has its own integral quality system, called
stipulations supplemented with additional demands. The
Through the Foqus planet programme, FrieslandCampina
Foqus, to safeguard the safety and quality of its products
various international standards, such as GMP+, HACCP, ISO
offers its member dairy farmers the instruments to run their
every product is of an impeccable quality.
throughout the entire production chain. With Foqus,
9001, ISO 22000, FSSC22000, OSHAS 18000 and ISO 14000,
businesses in a sustainable way and to produce safe and
FrieslandCampina wants all its production
FrieslandCampina offers consumers, customers and the
are integrated into Foqus, so that both FrieslandCampina’s
high-quality milk. Foqus planet consists of three parts, being
authorities the guarantee that the products and production
customers and the consumers can be assured that the
basic requirements, grazing and sustainable development.
and distribution companies to take the same
processes meet the most stringent standards in the fields of
products are safe, of the highest quality and produced in a
Here four themes are central: Business, Cow, Feed and Milk.
approach towards safety and quality, whatever
food safety, quality, safety, working conditions, fire protection
responsible way. The Foqus stipulations are reviewed, and
Various programmes help member dairy farmers to generate
and environment. An extensive programme of training
if necessary revised, each year to ensure that the system
extra income and further stimulate sustainability at the dairy
and wherever they are producing.
courses and audits helps safeguard the implementation and
always reflects the latest knowledge and insights.
farms.
continuous monitoring of Foqus in the production facilities, on the member dairy farms and at the suppliers of basic materials.
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Innovation. FrieslandCampina has the high-quality expertise and technology needed to implement innovations throughout the entire chain. Ingredients of milk are used as basic materials for various products in the food and pharmaceutical industries. Product development and process innovation are put at the disposal of FrieslandCampina’s customers, generally in direct cooperation projects. This leads to healthy, nutritious and tasty food products that really highlight all the goodness of milk.
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Respond to needs 26
Innovation within FrieslandCampina is driven
FrieslandCampina’s innovations are aimed at dairy products
Innovation Centre in Wageningen
by insights into the needs of consumers and
that, in a sustainable way, contribute to the growth,
FrieslandCampina has brought together its expertise in
development, health and well-being of consumers around the
the fields of innovation and research & development in the
industrial customers, social developments
globe, both young and old.
Innovation Centre in Wageningen, where experts of various
in the fields of nutrition and sustainability,
disciplines, such as research & development, marketing, sales An important focal point of the research & development
and supply chain, work together. In Wageningen, the centre
and the knowledge of the experts within
activities is reduction of the added sugar content in products.
of the agrofood knowledge infrastructure, FrieslandCampina
FrieslandCampina in the areas of nutrients,
This is important to make the products healthier and to
can work together more easily with scientists and other
help prevent unnecessary calorie intake. Lowering the
companies operating in this sector. Innovation takes place in
milk components, milk processing, products,
sugar content affects the taste and texture of products.
ever larger, open forms of cooperation.
packaging, dairy farming and sustainability.
To compensate for this, recipes have to be adjusted, which demands a relatively large amount of research and
FrieslandCampina Development Centre in Singapore
development. Reducing the salt content of cheese is another
The FrieslandCampina Development Centre in Singapore
focal point. In addition to using existing techniques, such
concentrates on the development of dairy-based beverages
as shorter brining times, FrieslandCampina worked on the
and infant nutrition, specifically oriented towards the
development and implementation of new technologies for
Asian consumers. The Development Centre is the logical
reducing the salt content of cheese.
link between the Innovation Centre of FrieslandCampina in Wageningen and the Asian market.
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Sustainability. Corporate social responsibility and sustainability play major roles in pursuing the route2020 strategy. Nourishing by nature – better nutrition for the world, a good living for our farmers, now and for generations to come – connects the daily activities and values that FrieslandCampina believes are important. They give guidance to all people involved as well as to the operating processes through the entire chain. Therefore policies with respect to corporate social responsibility and sustainability have been fully integrated into the updated route2020 strategy.
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The CSR strategy 30
Provision of food for the growing population
Better nutrition for the world
Now and for generations to come
Besides, FrieslandCampina encourages member dairy farmers
is a huge challenge and has implications
Dairy is an important part of daily nutrition for many people
The objective of FrieslandCampina is to make sure that
to generate sustainable energy, for example by means of
all over the world. With its high-quality milk and milk products
the emission of greenhouse gases in the year 2020 will be
wind turbines, solar panels or biomass and by issuing green
for people, animals as well as for the
FrieslandCampina wants to make a contribution to food and
equal to or lower than in 2010. This also applies in case of an
certificates. Animal welfare and biodiversity are important to
environment. How can sufficient affordable,
nutrients security. Additionally, FrieslandCampina wants to
increase of the production. In order to realise climate-neutral
FrieslandCampina as well. Therefore there is a commitment
help reduce the growing number of obese people, in particular
growth, FrieslandCampina is working on several initiatives
to lengthening the lives of the dairy cows and to dairy
nutritious food be produced? Fertile soil and
children. FrieslandCampina does this by making high demands
for an efficient and sustainable production chain. This means
farmers purchasing sustainable soy (RTRS or equal) for cows’
clean drinking water are scarcities in many
on the composition of its products, by providing education and
sustainable dairy farms, purchasing sustainable (agricultural)
feed.
information about healthy food and a healthy lifestyle and by
basic materials and reduction of the use of energy for the
areas in the world and the pressure on the
making it easier for the consumer to choose for healthy food.
production of dairy products.
environment is only increasing. Will there still be enough farmers to produce our daily
A good living for our farmers
food? Will they be able to generate sufficient
FrieslandCampina aims at adding as much as possible
income to provide for themselves and for their
to the income and the continuity of the dairy farms of
families? These global challenges and the
its members. FrieslandCampina has over 140 years of
basic principles for the route2020 strategy
to further develop dairy farms in specific countries in Asia,
value to the milk in order to make a maximum contribution
experience in dairy farming and uses the knowledge gained
together form the basis of the CSR strategy.
Africa and Eastern Europe through, among others, the
Nourishing by nature: better nutrition for the
Programme FrieslandCampina focuses on sharing knowledge
Better nutrition for the world, a good living for our farmers, now and for generations to come Leverage the Dutch dairy heritage and unique milk chain in a sustainable way to win the hearts and minds of our customers and consumers Better nutrition for the world
A good living for our farmers
Now and for generations to come
Dairy Development Programme. In this Dairy Development
world, a good living for our farmers, now and
and expertise concerning the sector. Local dairy farmers
for generations to come.
Vietnam, Malaysia, China, Russia, Romania and Nigeria, are
(mainly small farmers), particularly in Indonesia, Thailand, supported in improving the quality of the milk, increasing the productivity per cow and bringing their milk to the market.
• Better products • Responsible marketing • Transparent nutritional value labelling • Healthy lifestyle education
• Optimal milk valorisation • Economic performance & profitability • Improved quality & quantity of milk in Dairy Development Programme • Improved knowledge and skills in Dairy Development Programme
• Climate-neutral growth • Sustainable purchasing • Sustainable production • Animal health & welfare • Meadow grazing • Biodiversity
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The consumer. FrieslandCampina daily provides millions of consumers all over the world with dairy products containing valuable nutrients from milk. However, milk is more than a natural source of essential nutrients. Milk has been part of the daily diets of large groups of the world population for thousands of years. Through the centuries, different cultures and customs have led to new applications in response to people’s habits, needs and tastes.
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Brands 34
Consumer
Food service
Ingredients
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The top 10 consumer brands in revenue in euro 1 Friso
worldwide
2 Frisian Flag
Indonesia
3 Peak
Nigeria
4 Dutch Lady
Vietnam, Malaysia and Singapore
5 Alaska
Philippines
6 Campina
Netherlands and Belgium
7 Rainbow
Saudi Arabia and United Arab Emirates
8 Frico
worldwide
9 Landliebe
Germany, Hungary and Austria
10 Foremost
Thailand
The top 5 industrial products in revenue in euro 1 DMV Excellion (caseinates) 2 Kievit Vana Capa (creamers) 3 Domo Vivinal GOS (galacto-oligosaccharide) 4 DFE Pharmatose (pharmaceutical lactose) 5 Kievit Vana Grasa (fat powders)
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All over the world. FrieslandCampina is a multinational dairy company with a wide offering of dairy products and leading brands in more than 100 countries. FrieslandCampina has locations in 32 countries. The activities of FrieslandCampina have been divided into five market-oriented business groups, being Consumer Products Europe, Middle East & Africa; Consumer Products Asia; Consumer Products China; Cheese, Butter & Milkpowder and Ingredients. The company globally achieves annual revenue of over 11 billion euro.
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Business groups 38
Consumer Products Europe, Middle East & Africa The Consumer Products Europe, Middle East & Africa business group provides consumers and professional customers in Europe, the Middle East and West Africa with dairy products, such as dairy-based beverages, yoghurts, desserts, infant nutrition, butter and branded cheese. In the Netherlands and Belgium, the business group also sells fruit juices, fruit drinks and sports drinks. The business group is active in 17 countries (Netherlands, Belgium, Germany, France, Russia, Hungary, Romania, Greece, Spain, Italy, United Kingdom, Saudi Arabia, United Arab Emirates, Egypt, Nigeria, Ghana and the Ivory Coast).
Consumer Products Asia The Consumer Products Asia business group provides consumers in Asia with dairy products such as infant nutrition and dairy-based beverages. The business group is active in eight countries in Asia (Philippines, Hong Kong, Indonesia, Malaysia, Singapore, Thailand, Myanmar and Vietnam). Many products are produced locally. Several products, such as Friso infant nutrition, are exported from the Netherlands to Asia.
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Consumer Products China
Ingredients
The Consumer Products China business group
The Ingredients business group develops
provides consumers in China with dairy products
nutritious and functional ingredients that add
such as infant nutrition and dairy-based
value to existing products. The business group
beverages. Prior to becoming an independent
supplies natural ingredients based on milk,
business group on 1 January 2016, Consumer
cheese whey and vegetable basic materials
Products China was part of the Consumer
to industrial customers in the infant nutrition
Products Asia business group.
branch, the food industry, the pharmaceutical industry and the young animal feed industry worldwide. The Ingredients business group has offices in 11 countries (Netherlands, Germany, United States of America, Indonesia, China, Singapore, Japan, Brazil, Egypt, New Zealand and India).
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Export 42
Cheese, Butter & Milkpowder The Cheese, Butter & Milkpowder business group sells cheese, condensed milk, infant nutrition, butter and milk powder worldwide. The product range comprises a wide variety of Gouda, Edam, Maasdam and foil cheeses, both as whole cheeses and in pre-packed pieces
History has taught us that the Dutch climate, soil, location and green pastures plus the skills and entrepreneurship of farmers offer an excellent basis for dairy farming. The Netherlands and dairy are inextricably linked. These dairy products are sent to the farthest corners of the world.
and slices, different types of butter and milk
The Netherlands is an important exporter of dairy products.
powders. The business group has offices in six
The Dutch dairy sector represents a substantial part of the
countries (Netherlands, Germany, Belgium,
in particular to emerging markets such as China and Africa.
France, Italy and Spain) and exports to more than 100 countries.
Dutch economy. The export of dairy products is still growing,
With an export value of 5.1 billion euro in 2015, FrieslandCampina represents a considerable share of this.
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Worldwide 44
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North and South America 384 revenue*
United States Brazil
Europe
Africa and the Middle East 6,188 revenue*
169
13,025
employees
employees
6
69
facilities
facilities
Figures 2015 * in millions of euro
Netherlands Germany Belgium Greece Hungary Romania Russia France
Spain Italy Austria United Kingdom
1,290 revenue*
1,157 employees
6 facilities
Nigeria Ghana Ivory Coast United Arab Emirates Saudi Arabia Egypt
Asia and Oceania 3,403 revenue*
7,698 employees
35 facilities
Indonesia Malaysia Singapore Thailand Myanmar Vietnam Philippines China
Hong Kong India Japan New Zealand
Key figures 2015 46
11.3 billion euro revenue 22,049 employees Offices in
32 countries
Export to over
NL
BE
DE
100 countries
19,006 member dairy farmers own the Company Millions of consumers every day
Royal FrieslandCampina daily provides millions of consumers all over the world with dairy products rich in valuable nutrients from milk. With annual revenue of 11.3 billion euro, FrieslandCampina is among the largest dairy companies in the world. FrieslandCampina produces and sells consumer products such as dairy-based beverages, infant nutrition, cheese and desserts in many European, Asian and African countries through its own subsidiaries. Apart from this, dairy products are exported throughout the world from the Netherlands. Products are also supplied to professional buyers, such as cream and butter products to bakeries and catering businesses in Western Europe. FrieslandCampina sells ingredients and semi-finished products for producers of infant nutrition, the food industry and the pharmaceutical sector all over the world. FrieslandCampina has locations in 32 countries with over 22,000 employees. The products of FrieslandCampina find their ways to over 100 countries. The company has its Central Office in Amersfoort, the Netherlands. The activities of FrieslandCampina have been divided into five market-oriented business groups, being Consumer Products Europe, Middle East & Africa; Consumer Products Asia; Consumer Products China; Cheese, Butter & Milkpowder and Ingredients. The Company is fully owned by Zuivelcoöperatie FrieslandCampina U.A, with 19,000 member dairy farmers in the Netherlands, Germany and Belgium one
June 2016
of the largest dairy cooperatives in the world. Royal FrieslandCampina N.V. Stationsplein 4, 3818 LE Amersfoort, Netherlands T +31 33 713 3333
www.frieslandcampina.com