Akzente 01/2015 - June 2015

Akzente News from Nordzucker | Issue 1 | June 2015

Increase efficiency Towards a market without quotas

Tapping potential

“The market will set the direction�

Developing structure

Interview with Hartwig Fuchs about new strategies Page 6

Dr Lars Gorissen about the future market for raw materials Page 12

Nordzucker does away with regional divisions Page 16

6 teaspoons of sugar a day: in March 2015, the World Health Organization (WHO) announced a new ­target to help fight obesity. The recommendation is based on an old 1950s study of tooth decay which was described as “unclear” by the WHO itself.

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| EDITORIAL |

“We must work to turn Nordzucker into a company that keeps on ­generating sustainable profits.”

Dear shareholders, Dear readers, After a long period of dramatic losses, sugar prices now seem to be stabilizing – albeit at a very low figure. Large stockpiles of sugar in the EU and around the world have the effect of depressing prices. If we want to operate at a profit even in these difficult circumstances, one thing above all is of crucial importance: we must aim for higher efficiency, both in the immediate future and in the long term.

Though the conditions we are currently experiencing are, admittedly, unprecedentedly extreme, we must work to turn Nordzucker into a company that is capable of generating sustainable profits even when sugar prices remain low for an extended period of time. Other raw materials are affected by price fluctuations, and such variations will soon be a normal feature of the EU‘s sugar market. We must adapt to this new situation if we want to see our company‘s success continue despite low sugar prices. We must become more streamlined, more efficient and leaner. We must examine our cost structures, identify where we can cut spending and where we can leverage potential. We must change our thinking to compete in a new, open market.

As things stand today, Nordzucker is a company without debts, so we are in an excellent position to address these challenges and make the necessary changes. We can survive this period of adversity, though it may well continue into the coming financial year. We will show you, our shareholders, how we will once again become a company that operates at a profit, and sustainably at that. It is vital that we tackle the challenges we are facing today, but we are all confident that we will succeed.

Ask me today what we have so far achieved in our mission to transform Nordzucker into a company that is fit for the quota-free market, and I can tell you that, despite all of the difficulties, we will soon pass the halfway mark. Our direction is certain, and we have already set our targets for the crucial second half of this process. You can learn more in this edition of Akzente.

Best regards,

Portioning, pressing, drying: sugar cube production in Arlöv.

Hartwig Fuchs

Akzente June 2015

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| CONTENTS |

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We’re making progress!

How top beet farmers are adapting to new market conditions.

Smart cookies: Bahlsen’s a hit with mobile munchers.

PANORAMA

PANORAMA

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Nordzucker’s new organizational structure

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Four areas under one roof – SHEQ

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Title story: Tapping potential and harnessing synergies – Interview with Hartwig Fuchs Increasing efficiency: our way ahead Taking Nordzucker to the next level – Dr Michael Noth’s views Mats Liljestam: Customers deserve the complete package “The market will set the direction”: talking with CAO Dr Lars Gorissen 20 · 20 · 20: A cut above the competition with big yields Axel Aumüller: “Getting the best possible results faster”

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Occupational safety prize for two innovations at Nordzucker

CLOSE-UP

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Coffeehouse 3.0: Biscuits to go – we pay Bahlsen a visit

SWEET STORIES

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Grown on the ground for the height of pleasure

Imprint Published by: Nordzucker AG, Küchenstraße 9, 38100 Braunschweig, tel +49 531 2411-348, fax +49 531 2411-378, akzente@nordzucker.de; Editorial team (ed): Bianca Deppe-Leickel (bdl), Susanne Dismer-Puls (sdp), Lubomir Fischer, Mariann Mellström (mm), Tanja Schneider-Diehl (tsd), Marion Stumpe, Nina Tatter (nt), Björn Windfall; Layout: Sieler Kommunikation und Gestaltung GmbH, Frankfurt; Printed by: Leinebergland Druck GmbH & Co. KG, Alfeld Image credits: Bahlsen, Berufsgenossenschaft Rohstoffe und Chemische Industrie (BG RCI) Armin Plöger, Susanne Dismer-Puls, Karsten Martensen, Nils Hendrik Mueller, Günter Nimptsch, Nordic Sugar (Apelöga), Nordzucker, Thomas Preuß, Shutterstock

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A rose by another name: Strawberries belong to the rose family – and that’s not the only surprising fact about them.

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People at Nordzucker: Danas Matulis provides support to Lithuanian beet farmers and helps run the local 20 · 20 · 20 club.

Cover picture IN BRIEF

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Company news

PEOPLE AT NORDZUCKER

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Danas Matulis from Agricenter Lithuania

CLICKED ON

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A look online

RECIPE

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Summer special: Ice pops

Making the breakthrough: sugar beet at the four-leaf stage A sugar beet seedling needs soil temperatures of at least eight degrees for between eight and fourteen days in order to sprout. If conditions are good, it can reach the four-leaf stage within about four weeks. Or at least that’s the normal scheme of things. Nordzucker’s farmers and advisers spent weeks counting the delicate new plants in spring 2015. Though drilling took place on time in March, growth was patchy and slow in many fields.

Germany was particularly badly affected: siltation and dry, hard soil surfaces prevented the plants from sprouting. Growers faced a dilemma: should they wait or intervene? Would there be enough plants or should they act fast and sow anew? A tough choice: reseeding costs the same as the first batch, i.e. about EUR 250 per hectare for the seeds and then some EUR 100 in machinery and labour costs.

Akzente June 2015

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| PANORAMA |

Hartwig Fuchs Chief Executive Officer

“Even if we know that prices will rebound, we must be aware of the fact that we will face difficult conditions again at some point.”

Tapping potential and harnessing synergies New strategies for a changing market Nordzucker is facing major challenges.

A combination of falling prices and large stockpiles in the EU and internationally have put a significant dent in earnings: the company expects to make a loss at the end of the current 2015/16 financial year. Chairman of the Executive Board Hartwig Fuchs talks about Nordzucker’s plans, challenges and opportunities.

Mr Fuchs, what changes will the sugar market see?

It is still difficult to make short- and medium-term predictions. At present, there is a surplus on the market – partly due to last year’s record-breaking harvest 6

– as warehouses are full and imports remain high. There are few export opportunities to outside the EU. Looking at the rest of the world, the situation is similar: internationally, supply is outstripping demand for the fifth year in succession. As a result, it is likely that stock levels will reach an all-time high.

Surpluses in major sugar-producing countries such as Brazil, India and Thailand are not the only factor: these states want to reduce pressure on their local markets, so they have created a raft of export incentives. India, for example, actively pays export subventions. Pricing pressures on the international market are also exacerbated by the weakness

of Brazil’s currency. In other words, the news is not good.

However, we know that the sugar market goes through cycles, so we are certain that prices will pick up again in the medium term. This year, the scaleback of crop acreages within the EU in particular will play a major role in cutting production and, by extension, reducing sugar supplies.

Times are tough for the sugar industry across the EU. Not only are producers struggling with the overall market conditions, but competition for market share has stepped up ahead of 2017’s deregulation.

Surviving this period of depressed prices is not our only concern. We must also understand that the time has come to analyze

Analyzing processes and reducing burdens.

our company’s performance in terms of efficiency and effectiveness. Even if we know that prices will rebound, we must be aware of the fact that we will face difficult conditions again at some point. For us, the current situation represents an opportunity to strengthen our competitive standing and seize every opportunity so we can benefit from consolidation in the market, which is virtually a certainty.

Y ou want to analyze Nordzucker’s ­efficiency and effectiveness. How will you do this?

Presumably we won’t be able to avoid making a loss this year, but our mission is to ensure we are capable of generating profits even if market prices are against us. To do this, we are reviewing all of our processes to see just how much they contribute to satisfying customers and how customers pay for them. If the results are positive, then we will work to make the processes as streamlined and efficient as possible. If the results are

negative, we will discontinue the services in question. Some of the things we are looking at are our purchasing processes, range of products and the division of work across our sites. We don’t just want to improve what we already have, but we are also looking to see where there is more dead wood we can prune.

While we hope our plans will result in immediate savings, they are also designed with a view to the long term.

Nordzucker is actually in a good position. Our size works in our favour, our business model has functioned well in recent years, we have no debt burden, and our employees are well educated.

T his year will see less land under ­cultivation in order to ease the strain on the market. How big is this reduction? Do you plan to expand beet cultivation again next year?

Following negotiations with our farmers, crop acreage is considerably down on 2014’s figures in 2015. Our assumption

is that we can expand beet cultivation and sugar production once more relatively quickly, i.e. in 2016. As production levels are going to drop, we are again confronted with the issue of possible closures at some of our plants.

However, I would like to make one thing clear: plant closures are currently not an option for us. Part of our preparation for market liberalization is our ­intention to make the most of the opportunities that will result from the ­abolition of export limits. Long-term ­international demand for sugar will ­increase, and we will bear this in mind.

We produce sugar of the finest quality.

Sustainability is especially important to us, be it connected to environmental issues or the quality of our products at every step of our processes. With this as our starting point, we will focus on delivering exactly what our customers need and so get Nordzucker ready for the future. �

Interview conducted by Bianca Deppe-Leickel

Akzente June 2015

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| PANORAMA |

Axel Aumüller Chief Operating Officer

“Every work-related process is under review.”

Smart planning is one way to reduce stock levels.

Increasing efficiency: our way ahead Potential annual savings of at least EUR 50 million The price of sugar is currently extremely low. If we want to generate profits, we will have to analyze our cost structures again and identify savings. At the start of 2015, Nordzucker launched a new efficiency campaign. Called FORCE, it combines a whole range of measures and activities that are all designed to promote efficient business practices.

“Our new efficiency programme will help us slash spending quickly, a vital step in light of the current market conditions”, says Chief Operating Officer Axel Aumüller “The programme also

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has other goals: showing that lean management is a task for staff at every Nordzucker site, establishing lean management at our plants, and overhauling old structures and processes to make them streamlined and up to date. Every work-related process is under review.

For this reason we are preparing extensive for the future when quota regulations are abolished.”

In budgetary terms, the efficiency programme aims to cut spending by at least EUR 50 million a year. “We want to achieve an even better match for demand by modelling our production

and sales plans closely on market requirements” says Aumüller.

Another step will be to analyze the Nordzucker product portfolio and so bring it into line with customer needs.

This will simplify production and logistics processes and reduce expenses. Other measures include reviewing administrative activities, staff deployment at plants and the procurement of services and goods.

Various teams are working intensively on the initiatives at present, and the first findings and specific measures will be presented this summer. � bdl

Taking Nordzucker to the next level Dr Michael Noth Dr Michael Noth Chief Financial Officer

“Enhancing efficiency is a crucial goal that each and every one of us must work towards.”

“We are undoubtedly facing an extremely challenging year. Prices are very low, while stocks in the EU are high due to overproduction and insufficient opportunities for export. Increasingly, developments on the international market are making themselves felt here. In Brazil, cheap oil makes producing bioethanol instead of sugar less lucrative. This results in a glut of sugar. The Real’s weakness makes it easier for Brazil’s producers to export to other countries despite low international prices. All of these factors have an impact on our market and, with this, on the prices we can command for our products.

Our situation has undergone a ­radical change, requiring us to rethink our approach: we must let our business activities be guided completely by the

market and our customers’ needs. Our goal is to become faster, leaner and more flexible.

Enhancing efficiency is a crucial goal that each and every one of us must work towards. Not only do we want to reduce spending to an absolute minimum in the 2015/16 financial year, we also want to reshape our company so it is more streamlined and cost efficient in the long run.

Following a series of analyses, we believe that repeated savings of at least EUR 50 million a year is a realistic target.

That said, we have been anything but idle in recent years: solid revenues and farsighted budgeting enabled us to repay all of our debts when times were good. As a result, we are in a position to make the most of the opportunities arising from our market’s consolidation.” �

Akzente June 2015

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| PANORAMA |

Mats Liljestam Chief Marketing Officer

Offering the complete package to our customers The end of quotas calls for a new way of thinking What factors will decide success as of 2017? – Will it be prices, suitable services or more a matter of what added value customers can expect from their supplier? An interview with Chief Marketing Officer Mats Liljestam about Nordzucker‘s targets and how to focus on customers.

Mr Liljestam, what will Nordzucker have to do once sugar quotas expire?

Our most important task will be learning how to make plans without ever using the word “quota”. I have worked in the sugar industry for 22 years, so I know just how big a role quotas play in the sector’s thinking. The market has already started to change, and we have responded by starting to modernize our strategies. All the same, we still have a long way to go. Competition will continue to increase and the number of sugar producers in Europe will fall. These are challenges we are ready to take on. First and foremost, we are fully aware that we require a new way of thinking, and we are already hard at work making the necessary changes here. The central question underpinning our actions must be this: how much sugar can we sell? It is something we must keep in mind whenever we talk to customers. It is also a question that we need to ask ourselves when we are planning how much beet we want to plant and process.

In other words, quotas will no longer determine production levels in the future

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– instead, they will be based on comprehensive sales plans. This will be a significant change and also represent a major challenge.

W hat do you think when you hear the term “customer focus”?

To me, it is of course a question of meeting customers’ expectations. At the same time, it has another component: coordinating the expectations of both sides whenever we talk to our customers. We need to know how much sugar is needed, what quality is needed, when it is needed, what we can do better and where we can maybe provide support by contributing our expertise to product development. Customer focus is not a matter of sitting down and saying ‘We’ll do whatever you want’. That kind of approach just won’t work in the long run.

Selling sugar means more than simply talking about prices: offering services is part and parcel of our brief as well.

These include consultancy, logistics, catering to special product requirements – the full package, you could say.

S o prices don’t play the biggest role in purchase decisions?

No. Prices aren’t the deciding factor, even though people often say they are.

I always claim that, on 364 days in the year, what’s important is the service that you offer, if deliveries are reliable, if quality concerns are met – if we follow through

“The more precisely we can meet demand, the better it is for Nordzucker.”

When it comes to sustainability, Nordzucker delivers the goods.

on our promise to our customers, in other words. Sustainability is an issue that also plays a major role for our customers, as their own customers, i.e. consumers, in turn expect production processes to take sustainability into account.

In this regard, we are an excellent partner for companies in the food industry.

These issues are what dominate the decision-making process 364 days a year.

The price is important on just one day, the day the supplier is chosen. After that, the services we offer a customer are what’s important – they are what ­decide our future. The price is like a door that you have to go through in order to provide customers with your services.

And the services we provide are good!

Y ou mentioned sustainability just now. Why do our customers place such importance on production-­ related sustainability?

To a degree, it is something that consumers expect. However, sustainability is a much bigger issue – it is also about

protecting against risks. Our customers know how important it is for them to be able to show where they get each of the ingredients that go into their products and explain how these ingredients are produced. We can offer them the necessary proof of sourcing. In Europe, we are one of the two or three leading sugar producers in terms of sustainability. We know that our customers value this – we can tell from our excellent relationships with them.

Nordzucker has adopted a new, ­functional organizational structure.

How will this benefit our customers?

Our reorganized structure will improve our internal communication processes and therefore give us a better overview of the market. When looking at Europe, our sales unit will no longer see a host of different, separate islands – instead, Europe will be a single unit, like on a map. Our customers are also active across Europe and some even operate on an international scale. In the past,

one customer might have been served by three regional teams because it had plants in three different countries. Now this customer account is handled by a single team at HQ. Similarly, it is HQ that decides which plant supplies the customer with sugar. We have concentrated each customer’s information at a single, central location and are therefore in a better position to support them because we have a clearer idea of what they want and what additional services we can offer. In addition, it is now easier for our customers to access our entire range of products, which includes a host of specialities that were previously available only within certain regions. This is another example of our “one company” approach. We no longer think in terms of regional portfolios, and the more precisely we can meet demand, the better it is for Nordzucker. While we might now have a more functional organization, this does not mean that we are making changes to our brand strategy: we intend to retain our two brands of SweetFamily and Dansukker. �

Interview conducted by Nina Tatter

Akzente June 2015

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| PANORAMA |

Dr Lars Gorissen Chief Agricultural Officer

“Regardless of the system we establish for ourselves, it will be the market that decides our success.”

“The market will set the direction” Chief Agricultural Officer Dr Lars Gorissen talks about future challenges on the raw materials market 2017 isn‘t far off – what changes will it bring for beet farmers? Throughout the group, we‘ve already started making preparations, but some issues still need to be clarified. Tanja SchneiderDiehl talks to CAO Dr Lars Gorissen.

Looking at the global market, can sugar beet really compete with sugar cane in the long term?

Yes, it can, and one key to this comes in the form of the overall production chain.

We know every detail about where our products come from, what seeds were used, who planted them, where they planted and what the planting conditions were. We can say when the beets were harvested and what day they were delivered to what plant. This represents trans12

parency of the highest order and outstanding sustainability standards, thereby setting us apart from producers outside the EU who are unable to provide this information for their imports. Many of our major customers have set themselves the target of sourcing all raw materials from 100 per cent sustainable producers by 2020, and we are the perfect partners to support this target thanks to Europe’s demanding standards for cultivation. Nevertheless, we still have to improve sugar beet’s competitiveness 20 · 20 · 20 – is crucial for this.

What effect will rising market volatility have on beet cultivation?

One thing is certain – as of 2017, the conditions facing us, our farmers and our shareholders will change dramatically.

Volumes and prices will be dictated solely by the market and by the level of competition between companies.

To cope with this, our planning and ­production processes will take their cues from demand and customers’ needs. Given the greater influence of the international market, we will also have to maintain our competitiveness even if sugar prices are low. All of this means that we will have to keep our cost base as low as possible so we can compete with other companies. Ultimately, everyone within the value chain will have to adjust their budgets.

While our beet farmers are familiar with this kind of situation from developments in the market for other agricultural commodities such as wheat and rapeseed, we will still have to provide

New growth opportunities as of 2017.

Making sure that beet production is as sustainable and low-cost as possible.

them with support in the run-up to 2017 so we can all deliver the flexibility and market focus the changes will entail.

The transformation coming up in 2017 will also offer a lot of advantages, for example the opportunity to expand into new, international markets. I am certain that our production will, at the very least, remain at the same level it is at now following 2017. And if everything goes well, we will even see things improve. The outlook is, actually, quite heartening.

Will we be able to maintain sugar beet supplies to our plants in Germany when the new system of supply rights is in place?

When the quotas expire, the delivery rights we are all familiar with now will

no longer apply – instead, they will be replaced by share-linked supply rights in line with holding companies’ articles of association. Nordzucker AG is obliged to put the details of these articles of association into practice. This will account for the bulk of our beet requirements.

However, there will still be a considerable “free” volume of beet that is not covered by contracts with the owners of supply rights. Changing articles of ­association will help ensure that it is not possible to transfer supply rights separately from permission to use beetgrowing land. Any grower interested in this “free volume” should be entitled to it without having to sign a lease or make a payment. This will enable us to offer farmers without sufficient supply rights the chance to grow beet with a degree of planning certainty at no extra cost.

If demand for this free volume is higher than our requirements, we plan to allocate it in line with economic criteria, i.e. optimum availability levels for each of our processing plants. We are prepared to shoulder the costs of this allocation as a result of changes to the articles of association, so we would pay for transporting all “contractual” beet deliveries (beet covered by supply rights and included in the free volume) from the field to the plant. Regardless of the system we establish for ourselves, it will be the market that decides our success. That is, in effect, the real challenge we face in connection with our plants’ beet supplies. �

Interview conducted by Tanja Schneider-Diehl

Akzente June 2015

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| PANORAMA |

20 · 20 · 20: We’re making progress!

“High yields are incredibly important for competitive beet cultivation even in times of adverse market conditions. 2014’s record-breaking harvest shows we’re making progress for 2020. Right now, improving crop yields is more important than ever before, so Nordzucker is using its international 20 · 20 · 20 network to step up the knowledge transfer about sugar beet. We’re pressing ahead with our field visits and trials, and our cultivation advisers are concentrating their efforts on improving efficiency by recommending new fertilizer strategies, crop rotation, catch crops, etc. We know that beet can produce yields of over 20 tonnes per hectare. Even upwards of 25 tonnes per hectare are possible.“ � Dr Andreas Windt, Agricultural Consulting Manager

Persisting competition with big yields How beet farmers are adapting to new market conditions Every mistake made in the field whittles away at yields. Anyone who wants a bigger harvest therefore has to make more correct choices. How are farmers preparing for the transformation 2017 will bring? Akzente spoke with three leading Nordzucker farmers about their experiences and plans.

It takes two pairs of eyes to see clearly

Jeppe Martensson returns from spreading fertilizer to his farmyard in Hviderup in Southern Sweden. No matter where he drills beets, he always has a view of the chimney of the sugar plant in Ortöfta.

In 2014, Martensson planted 150 hectares of sugar beet and subsequently harvested 14 tonnes per hectare. He therefore decided to halve beet cultivation this year. “In 2004, we only got less than 10 tonnes,” the 58-year-old says. Good soil is, in his view, of prime importance.

“Drainage has to function properly as well. And the soil needs to have the right pH and potassium levels.” He advises caution when dealing with wet earth.

“You’ll never get anywhere if you’re impatient. With sugar beet, everything depends on timing.” While he has long had a good feeling for when to act at

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the right time, he still doesn’t make decisions alone even after 29 years in the beet business. “You always discuss things, either with the Swedish Agricenter, with colleagues and with our adviser.” Wether to decide when to start sowing, when the best time for the three rounds of spraying is, or when using a mechanical hoe is the most effective option.

Leaving nothing to chance

570 kilometres further south, Volker Antholz waits for fog to lift from the countryside around Schaumburg in Lower Saxony. Six years before the target date of 2020, he has already reached the 20 tonne mark. His delivery dockets from 2014 show that his yield averaged 20.96 tonnes per hectare last year. “We sowed early and were able to deliver late,” he says, visibly pleased with his best season ever. “In the mid90s, ten tonnes were the most anyone here could produce.” The Nordstemmen Agricenter and local advisers provided invaluable support. Even today, he is still thankful that Agricenter manager Franz Hesse called him to suggest quickly switching to a rhizomania-tolerant seed

variety following a severe drop in harvest sizes. The use of antifungals resulted in yet another leap in his yields. Today, Antholz GbR needs just 20 hectares of sugar beet, corresponding to 10 per cent of the family’s total farmland, to produce enough for their quota delivery rights. “Chocolate soil” is a German phrase for excellent soil, but it’s not a term Antholz, 49 years old and from Horsten, likes.

“I can only exploit these advantages if I put in more work and always keep an eye on what makes sense economically.

High crop yields mean higher nutriment levels, i.e. I have to precision feed my beet and react immediately when there is a risk of leaf diseases. In other words, big beet harvests aren’t something I can just leave to chance.”

Open to innovations

Henryk Olejniczak grows sugar beet near Poznan – 27 kilometres from Opalenica.

For over 80 years, beet cultivation and dairying have been practised on the 70-hectare farm. Olejniczak’s main concerns are water and how early sowing can be used to avoid problems arising from frequent springtime dryness. If rainfall, normally 650 millimetres in

No less than 550 kilometres separate the farms where Jeppe Martensson (pictured seated above), Volker Antholz (top right) and Henryk Olejniczak (right) grow sugar beet. While none of the three men has a magic recipe for bumper crops, they have lots of ideas how ambitious farmers can all work towards getting 20 tonnes per hectare by 2020. “Together for twenty tons in 2020”, or 5T for short: that’s the name of Nordzucker’s 20 · 20 · 20 project in Scandinavia.

t­ otal, is spread well throughout the ­season, then the beets perform at their best: 2014’s harvest came to an impressive 14.9 tonnes per hectare. What’s his recipe for success? “Organic fertilizers, clever and sparing use of water, and heading to the fields immediately when the Agricenter issues a fungus warning.”

He also makes extensive use of Nordzucker Polska’s training courses and a­ dvice service.

“They all help me make the best use of beet varieties, fertilizer and crop protection.” The 57-year-old wants to at least maintain cultivation and yield levels in 2015. Henryk Olejniczak’s peers farm less land: Jeppe Martensson wants to return to his usual acreage in 2017, while Volker Antholz takes his cues from wheat prices, and his 20 years of experience in the ­extremely volatile potato market give him a positive outlook on the end of sugar beet quotas. “A lot depends on the rules laid down by EU and national laws,” he says. “And on how Nordzucker ­reacts, of course!” � sdp

20 ·20 ·20: Where we stand Sugar yields in the Group*, in tonnes per hectare 20.0 18.0 16.0 14.0 12.0 10.0 8.0 2011

2012

2013

2014

2015

2016

2017

Top 20 per cent of farmers (actual)

Average (actual)

Top 20 per cent of farmers (target)

Average (target)

2018

2019

2020

* excluding Finland

Akzente June 2015

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| PANORAMA |

“Getting the best possible results faster” Three become one: Nordzucker does away with its regional divisions Aiming to become faster, leaner and more efficient, Nordzucker overhauled its internal structures at the end of 2014. The company disbanded its division into separate regions and instead created a system with lines of responsibility organized according to function.

How has this changed things for our plants? An interview with COO Axel Aumüller.

Mr Aumüller, what differences has our new structure made at production?

In the past, our company was subdivided into three for the regions of Eastern, Northern and Central Europe, which meant we had three production units.

Within each region, everything ran smoothly, but what if someone needed to work “cross-border”? There had been a gap in information. Now, two people are in charge of production. They have an overview of all of our plants because their positions are based on their function, not on their location, and they are in charge of activities in every country.

Sharing knowledge with people at plants and offices in another country is now much easier, and this helps us work more efficiently. We have also established a clearer division between production and investments. Now, production handles plant management and preparing for the next campaign.

W hy did you separate production and investments?

Previously, our investment activities were closely connected with our production unit – too closely, in fact. Within each region, whoever was in charge of production weighed every decision up carefully, for example where to install an evaporation dryer or juice purifier. They

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Axel Aumüller Chief Operating Officer

“We only have limited resources for investments, so a central unit can make better decisions when allocating them for maximum possible efficiency.”

did everything they could for their respective region, but ultimately they only thought about their own region.

We only have limited resources for investments and maintenance, so these funds must be used to the greatest advantage for the company as a whole.

When we reorganized the company, we decided to create separate units for investments and maintenance.

By freeing the decision-making process from fixating on a specific region or on treating each of them the same, we can make sure that every decision benefits the entire company. In a regional structure, it is natural for employees to work for the benefit of their own regions

only. A central unit can see things differently, and it can make better decisions when allocating limited resources for maximum possible efficiency.

Let’s stick with the topic of investments: what has changed for our colleagues at Technology & Innovation (T&I)?

In the past, staff in this team merely served as advisers on investment projects. Now, however, they participate in the entire planning process for every investment that affects our main process, i.e. juice purification or crystallization.

They are the people with the best grasp

The functional organizational structure... ...is an organizational model that structures a company’s activities based on operational functions such as procurement, production, sales and administration. For Nordzucker, this means that activities are now organized based on functions, regardless of national borders.

This signals an end to our previous subdivision into regions. As a result of the functional organizational structure, all of the activities in one area, irrespective of the country, are pooled together in one area. This makes it easier to share information and utilize synergies. � nt

Four areas under one roof – SHEQ Pooling knowledge – improving together

As a result of the functional organizational structure that was introduced at Nordzucker at the end of 2014, the areas of safety and health, the environment and quality assurance have been reorganized within our Group. They are now covered by the SHEQ unit. SHEQ stands for safety, health, environment and quality.

“The areas covered by the SHEQ unit are not new, of course. All of us have already been involved in these areas at Nordzucker; they just used to

be part of various different departments and processes. As a result of our new organizational structure, they have now been functionally merged, which means that we have clear lines of responsibility.

This new organizational structure makes our processes more transparent and safer,” says Joachim Rüger, head of the new unit.

“In this way, we ensure that we adhere to all internal or external guidelines, i.e. in the form of customers’ demands, legislation or the Code of Conduct, and that we incorporate all of the lessons learned into a continuous process of improvement.” � nt

Occupational safety prize for two innovations at Nordzucker

of how much preliming is necessary for juice purification or how extensive the main liming step needs to be to maximize plant performance. To me, the goal is to ensure that we make the best use of the knowledge present in all of our units for every production- and technologyrelated project. This is why major investments, i.e. the construction of evaporation dryers, are now handled separately, and it is also the reason why our purchasing department makes the final procurement decisions, not employees at Production or T&I. �

Interview conducted by Nina Tatter

With “chains as a safety guard in large fixed containers”, Elmar Lampe from the Klein Wanzleben site was awarded the sponsorship prize by the German Raw ­Material and Chemical Industry Employers’ Association (BG RCI). Lampe’s work makes working in extraction towers safer, and he received his prize at Frankfurt am Main’s old opera house on 24 April. Also joining in the celebrations were Andre Gädke, Jens Müller, Andreas Born, Mario Barenscheer,

Picture: BG RCI/Armin Plöger

Harnessing the best knowledge at each unit, no matter the project.

Thomas Rex, Sebastian Rose, Martin Töws and Lothar Steinmann from our Uelzen plant. They were awarded the special sugar industry prize for a “moveable operating platform for centrifugal repairs”. This moveable platform enables work on the ballheads in centrifuges to be carried out safely.

2015 saw the employers’ association present its occupational health and safety awards for the eighteenth time. This year, a total of 689 men and women submitted 297 separate entries. 51 people were awarded sponsorship and special prizes. The sponsorship prize for occupational health and safety comes with a total endowment of EUR 100,000 – of all the occupational safety prizes in Germany, it is the one with the largest total amount of prize money. � ed

Akzente June 2015

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| CLOSE-UP | | NAHAUFNAHME

Facts & figures Bahlsen GmbH & Co. KG Products Confectionery (biscuits, cakes, bars) Established 1889 Head office Hanover Umbrella brands Bahlsen, Leibniz National brands Brandt (D), Krakuski (PL), Kornland (AT) Plants Barsinghausen (D), Varel (D), Berlin (D), Skawina (PL) Sales revenues EUR 515 million (2014), approx.

50 per cent in Germany Sales volume 132,000 tonnes Employees 2,636

Coffeehouse 3.0: Biscuits to go Bahlsen‘s a hit with mobile munchers The building at Podbielskistrasse 11 is a very special place in Hanover. Both imposing and inviting at the same time, this fusion of café and transparent modern office complex is where Bahlsen receives its guests. Today, 280 people work at the headquarters of the company that started life as Hannoversche ­Cakesfabrik in 1889. The energetic son of a cloth merchant, Hermann Bahlsen chose the suburb of List as the site for his company in 1911.

The building’s ground floor is the nerve centre of the family-run firm. “This is Bahlsen’s first production hall – a place with a very special aura,” says Karsten Grove with a twinkle in his eye. “It’s a good place for ideas and thinking without barriers .” Surrounded by office storeys, the hall has a high glass ceiling and its wall tiles sport a motif reminiscent of an old-fashioned biscuit. It’s also a hive of activity: mixers, conveyor belts, shaping machines and ovens hum and clatter 18

as they work. Grove, head of development at Bahlsen, explains: “We’re making samples for new trial biscuits. They have to go out today.”

New biscuits for every day of the year Grove oversees the work of bakers, food technicians and engineers as they develop new recipes. “Testing takes place in three steps,” he says. “We start with one kilo of dough to see if the idea works.

Then we use ten kilos to see if the recipe is successful on our miniature baking line.” The new creation undergoes a host of tests at the headquarter – tasting, calculations, baking, pressing and packing – and if it passes them all, the company’s dough makers perform the final check before Bahlsen decides whether or not to launch a new product. These experts use 1,000 kilos for ­ a real production batch at Varel, Berlin, if a lot of chocolate is involved, at Skawina in Poland or in Barsinghausen. Having made its name with the world-famous

“Leibniz-Keks”, the company now wants to develop new versions of its biscuits, cakes and chocolate bars that will be everyday treats for people around the world. Not just in its homeland of Germany, where it is the undisputed leader, but also in growth markets such as China, the Middle East and the US. Say goodbye to crumbs and sticky fingers Christian Bahlmann, company spokesperson at Bahlsen, points out that growth opportunities are limited in Germany.

The company generates a good 50 per cent of its revenues in the country, but other important markets alongside ­Poland, Austria and Italy include Benelux, the UK and Spain, which are home to Bahlsen subsidiaries. Bahlmann joined the firm two years ago at the age of 42.

He says, “The afternoon ritual of having coffee and biscuits is dying out.” Today, people like biscuits as a “small treat for in-between”. They also want them “to go”

Built in 1911: Bahlsen’s headquarter in the heart of Hanover.

– this means enjoying them while on the move, but without leaving a trail of crumbs or having chocolate-smeared fingers. Bahlmann says many consumers use them as “a kind of meal replacement, if you skip lunch but need a quick energy boost because you have to wait until the evening before eating a decent meal.”

Closer to customers and markets To mark its jubilee in 2014, Bahlsen stepped up its investments and launched one of its largest reorganizations in 125 years. Bahlmann outlines the company’s new objectives: “Becoming more international and getting closer to customers and markets.” Certain competencies were transferred from the headquarter in Hanover to the national subsidiaries.

“We want to respond faster and cater as much as possible to regional preferences, such as the breakfast biscuit popular in Italy or the Mediterranean region’s merenda, a snack at about 4 p.m. Then there is the Arab world’s fondness for very sweet

confectionery and the Chinese tradition of bringing gifts when you visit someone,” he says. Operating out of its Shanghai office, Bahlsen introduced a lovely biscuit box decorated with dragons that has proved to be a hit in China.

Downsizing packets and biscuits The company overhauled its product range and packaging, and it totally transformed the Bahlsen brand. Bahlmann states that no less than EUR 40 million went towards advertising in 2014. EUR 12 million was invested in the firm’s plants.

“This restructuring has started bearing fruit,” he says before going on to describe 20 new products – including adaptations and new flavours – that the company plans to launch in 120 countries as of 2015 “to make life sweeter”. Grove says, “When we’re working at our best, we need about six months to go from an idea to stocking shelves.” Tam Tam, Be Happy, Blondies, Brownies and Cookies: these are the names of the company’s latest creations, and they

“We have a duty to daydream here,” says Karsten Grove, head of development at Bahlsen. A colleague takes a small mixing bowl and adds sugar (produced by Nordzucker), eggs (free range) and flour (from an inspected contract-bound producer, traceable from Hedwigsburger Okermühle to the field).

Grove doesn’t want to reveal anything else.

“And you can be certain we have sampled every spice ever known.”

are also available from its online shop at www.bahlsen.de. Single portions and miniature versions of many products can also be found in shops. Bahlmann says, “It’s not just the packets that are getting smaller. By bringing out smaller biscuits, we’re encouraging people to be more aware of what they enjoy and also avoid wastage.” What’s Bahlsen’s motto? “Life is sweet.” With that in mind, head developer Grove does not believe that Bahlsen will skimp on the sugar it uses in its recipes. “Sugar brings sweetness, but it also adds volume and a host of other important baking qualities,” he says. “There’s nothing that can replace it.“ � sdp

New takes on the Leibniz biscuit (“Only the real ones have 52 teeth.”) As of 2015, Bahlsen wants to make people’s lives sweeter in 120 countries around the world with its classic cookie (created in 1891) and a range of pioneering new biscuits.

Akzente June 2015

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| SWEET STORIES |

Grown on the ground for the height of pleasure Potted red berry cake

Enjoy strawberries with SweetFamily It’s that time of year again! Whether they’re from your garden, a pick-your-own farm, a market stall or supermarket, red, juicy strawberries are simply irresistible. You can either eat them straight away or use them to make a wonderful treat to enjoy at a later point in time.

Interesting fact: the garden variety so familiar to us today was first cultivated in 1750 after crossing several wild New World strains.

Another interesting fact: strawberries belong to the rose family, so their fruit is not a berry per se. The technical term for it is an “accessory fruit”, and the small

yellow pips on its surface are the actual seeds. And one more interesting fact: strawberries contain more vitamin C than oranges and lemons. They’re also an excellent source of folic acid, calcium, magnesium and iron.

In other words, there are a lot of good reasons to enjoy their taste! Potted red berry cake is just one example – why not try out our recipe? How about strawberry compote with cream cheese, or strawberry smoothies with vanilla ice cream? These and other ideas are available online at www.sweet-family.de. �

ed

Ingredients (for 12 small glass jars with sealable lids) 120 g soft butter 375 g mixed berries (strawberries, raspberries, redcurrants, blueberries) 90 g SweetFamily setting agent for fruit desserts 100 g SweetFamily icing sugar

1 sachet vanilla sugar

3 eggs (m) 170 g flour (type 405) 2 tsp baking powder

Preparation: Preheat oven to 180 °C (160 °C with fan).

Coat inside of each jar (volume: 120 ml) with 20 g of soft butter. Wash and sort berries. Place 225 g of berries in a mixer with SweetFamily fixing agent and purée for 15 seconds into a pulp. Add remaining whole berries.

Place remaining butter, icing sugar and vanilla sugar in a mixing bowl and whisk until foamy. Add eggs and whisk in. Blend in flour and baking powder. Fill glasses to one-third with dough mix and bake for 25 minutes on middle rack.

Remove glasses from oven.

Pour berry mix over hot base. Seal jars and leave to cool.

Tip: These potted desserts are perfect for picnics or as small gifts, and they keep for several days if stored in your fridge.

Quick trick for berries You can use the SweetFamily setting agent for fruit desserts to transform your favourite fruits into a tangy compote or tasty topping without even having to cook. Not only do the results taste great, but they require virtually no work! Whether you’ve got several guests or are with just one other person, serving portions can be as large or small as required. � ed

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| IN BRIEF |

New guideline

Dr Mathias Böker Head of Sugar Factory, Werk Uelzen

Unsound advice: the WHO’s sugar intake recommendation

New management at the plant in Uelzen

At the start of March, the World Health Organization (WHO) published its new sugar intake guideline. In it, the organization recommended that sugar should account for just 10 per cent of a person’s daily energy requirements.

Christian Kionka, Head of Communications & Public Affairs, says, “We believe that this figure is neither useful nor scientifically sound. The WHO’s new recommendation is based on outdated, poor-quality studies into tooth decay. It does not include new information from the fields of dental health or nutrition. Setting a limit for sugar intake is not necessary for a healthy diet or maintaining a balanced weight. This is a matter of a person’s overall diet and activity levels. Total energy intake is one of the factors that determine whether a person becomes overweight, not an individual foodstuff.” �

On 9 February 2015, Dr Mathias Böker (54) officially took over as head of the Uelzen plant. The move sees the experienced production and technology manager and operations manager at the Uelzen plant replace director Sven Buhrmann (50) who, after five years as Head of Investment & Maintenance & Major Projects, has transferred to the company’s headquarters in Braunschweig. � ed

ed

High-ranking visitor

Economics minister learns about sugar market today Sigmar Gabriel, Germany’s Minister for Economic Affairs, paid a visit to Nordzucker in Braunschweig on 2 April.

Talking with the minister, our CEO Hartwig Fuchs explained Nordzucker’s position in the European sugar market, which is coping with the nosedive in prices, export limits, imports, production levy and government support for beet cultivation in a host of uncompetitive countries. Other topics included energy policies and the WHO’s new sugar intake guideline, which also came in for criticism from the minister. Also present at the interesting and lively discussion were Schladen’s mayor Andreas Memmert, who arranged the meeting at short notice, Dieter Woischke, Chairman of the Central Works Council, and Christian Kionka, Head of Communications & Public Affairs. � ed

Dedicated

Nordzucker supports sports initiative at schools With its donation of EUR 12,000 in total, Nordzucker has pledged to support for the “Braunschweig model” for three years. This scheme is in place at all-day schools, and it received a positive evaluation from the city’s sports association at the end of April. The project started with a “sports carousel” in 2013, Allday schools offered a sports club together with the city’s

sports association, community foundation and clubs for one school year. Up to ten different sports were offered on a weekly rotating basis. Over 1,000 children signed up and learned about sports such as judo and hockey. The community foundation also provided 70 children and teenagers from low-income families with grants to pay for club membership and their kit. � ed

Akzente June 2015

21

| PEOPLE AT NORDZUCKER |

Danas Matulis Adviser at Agricenter Lithuania “I go out to the farmers, give them advice on what variety will bring the best yield per hectare and which crop protection products they should use. Every case is different, that’s what makes it so interesting”, said Danas Matulis, cultivation adviser in Kėdainiai. Since summer 2012, he has worked at the Agricenter there. Danas Matulis grew up in northern Lithuania and now lives in Kaunas – around 50 km from Kėdainiai – where he also studied agribusiness in the city. “I have always been surrounded by agriculture, even though my parents weren’t farmers. Many of my

22

friends came from farms though, and agriculture is very important in the region where I come from. I also believe that it is one of the most important branches of the economy as it is the one that produces food. My work takes me to the very heart of this.”

Matulis works on the 20 · 20 · 20 initiative at Nordzucker and counsels farmers in a 20 · 20 · 20 club. In addition, he also writes news reports for the AgriPortal in Lithuania. “Roughly three times a week, my colleagues and I post news reports in the portal.” Matulis also values the international cooperation involved in his work and has already spent two months working in Nordstemmen as part of Nordzucker’s internal exchange programme. � nt

| CLICKED ON |

A look online at Nordzucker, SweetFamily and Dansukker

Monthly inspiration: the SweetFamily newsletter SweetFamily Newsletter Rezepte - Produkte - Ideen - Ratgeber NEWSLETTER MAI 2015

Enjoy summer – SweetFamily is starting its series of mouthwatering recipes for cakes, biscuits and jams Elder trees are in full bloom, and rhubarb and berries are now in season. This is the time of year to enjoy syrups, jellies, elderberry pie (just like granny used to make) and so much more. You can make them as presents, as samples for friends or as something to enjoy yourself. So, where were those recipes again?

Inspiration for every occasion – new ideas every month Starting now, the SweetFamily newsletter will regularly feature great new recipes for a host of tempting creations. Every month, we will have handy hints and tips for every occasion and season, so you won’t have to look far for great culinary ideas! You can sign up for our newsletter and its recipes (tested by us) right now at www.sweet-family.de.

Biscuits, buns, cakes and compotes – no matter what you fancy, we have the perfect suggestion for you.

International cuisine from dansukker.co.uk If you’re a fan of food from around the world, take a look at Dansukker’s Englishlanguage website, www.dansukker.co.uk.

It’s a goldmine of inspiration, with scores of wonderful recipes for you to browse.

Some are for seasonal dishes, while others are irresistible throughout the year.

Baked goods, preserves, drinks or spicy dishes from across the globe – the website has them all.

Right now, Dansukker has super suggestions for fun and games at children’s parties and tells you how to make the yummiest ice cream quickly and easily. It’s also showcasing scores of cake recipes that are not just simple and practical, but also have a real touch of class. They’re just the thing if you want to serve up a spread quickly, for a party at home or if you want to surprise your co-workers at the office with a cake. If your tastes tend more to the savoury, Dansukker has quick and easy recipes for bread and buns, showing you how to jazz up sourdough with fennel, aniseed and other spices. Simply visit the website and feast your eyes on all those suggestions. Be warned, however: clicking can seriously stimulate your appetite. We know this from personal experience! � ed

Lieber SweetFamily-Fan Mit dem Start der Erdbeersaison kommt die unbändige Lust, die frisch auf den Feldern gepflückten Früchte gleich zu leckeren Kuchen, Desserts, Smoothies und Konfitüren zu verarbeiten. Letztere bekommen übrigens mit unserem SweetFamily Gelierzucker für Erdbeeren Geschmack des Jahres "Vanille-Holunderblüte-Geschmack" einen überraschenden Pfiff. Vanille unterstreicht die fruchtige Süße der Erdbeeren und der typische Holundergeschmack rundet das Aroma mit einer besonderen Note ab. Stöbern Sie doch gleich mal in unseren Erdbeerrezepten.

W ir wünschen viel Spaß beim Ausprobieren und gutes Gelingen.

Ihr Süße Küche-Team

Gelierzucker für Erdbeeren Geschmack des Jahres

zum Produkt

Eine gute Frage

Ihre Meinung ist gefragt!

Bei Erdbeermarmelade gibt es keine zwei Meinungen: sie schmeckt immer.

Und durch Kombination mit anderen Früchten oder Aromen entstehen im Handumdrehen neue leckere Kreationen.

La Lassen Sie uns jetzt wissen, mit welchem Geschmack Sie Ihre selbst gemachte Erdbeerkonfitüre am liebsten verfeinern möchten.

zur Abstimmung

Wir sehen rot

Strawberries forever

Mit Erdbeeren beginnt die frischeste Backzeit des Jahres: Obstkuchen. Alle Zeichen stehen jetzt auf rot, es wird geputzt und geschnippelt und alle freuen sich auf Erdbeerkuchen. Ob Torte, Biskuitboden oder kleine Tartelettes - der Variation sind keine Grenzen gesetzt.

Schauen Sie doch gleich mal auf unsere Rezeptseiten.

Mit Erdbeeren backen

zu den Rezepten

Erdbeere

Rund um die Frucht

Die Saison ist eröffnet: erö Endlich wieder Erdbeeren satt, endlich wieder selber pflücken und endlich wieder naschen ohne Reue. Machen Sie mit Erdbeeren, was Sie wollen - sie lassen sich wirklich vielfältig verarbeiten. Neben vielen Rezepten finden Sie bei uns auch Wissenswertes rund um diese Frucht. Schnuppern Sie doch einfach mal rein.

Erdbeere

mehr erfahren >

Der nächste Newsletter erscheint im Juni.

Und hier noch drei Rezepte für die absoluten Erdbeer-Fans:

Dansukker: great ideas for children’s parties

Erdbeer-ProseccoFruchtaufstrich (1)

10 Min. zum Rezept

Joghurt-Panacotta mit Erdbeeren (0)

ca. 20 Min. zum Rezept

Erdbeer-Smoothie mit Holunderblütensirup (3)

15 Min. zum Rezept

Mouthwatering marinades for summer barbecues

Akzente June 2015

23

SUMMER SPECIAL

Ice pops

Ingredients for 6 – 8 ice lollies

Strawberry and mint: 300 g (about 600 ml or 6 deciliters) stra wberries 200 ml water 90 g Dansukker Granulated Sugar 75 g Glucose (if you cannot find it just exclude) Grated ginger, approx. 2 cm Juice and zest of 1 lemon, rinsed well 1 bunch of fresh mint, chopped

Preparation

Rinse and chop the strawberries. Bring the water to the boil with the sugar and glucose. Add the ginger, lemon zest and lemon juice. Add ¾ of the strawberries and boil for 5 minutes.

Sieve the strawberries and set aside.

Cook the strawberry juice for a further 10 minutes. Add chopped mint to the cooked strawberries and fold in the juice and remaining fresh strawberries.

Pour the mixture into ice cream moulds and freeze for at least 3 hours.

These fun little ice lollies offer endless opportunities for variation. Find more recipe’s here: http://www.dansukker.co.uk/uk/ inspiration/all-year-round/summer/ make-your-own-ice-cream.aspx