The Ferrero Group and the Ferrero Hazelnut Company Introduction Speaker: Franco Nicola
The Ferrero Group - Key Facts 2014 WORLD WIDE 1946 - ALBA Founded 1n 1946 Present in 53 countries 74 consolidated companies 20 production plants More than 34.000 collaborators Products sold in more than 160 countries
Ferrero Production Plants in Italy 1946 - ALBA (CN) 1960 - POZZUOLO MARTESANA (MI) 1988 - S. ANGELO DEI LOMBARDI (AV) 1987 - BALVANO (PZ)
Ferrero Production Plants in Europe 1975 - CORK (IRELAND) 1989 ARLON (BELGIUM) 1997 - BELSK (POLAND) 2009 - VLADIMIR (RUSSIA) 1960 VILLIER ECALLES (FRANCE) 1956 STADTALLENDORF (GERMANY)
Ferrero Production Plants in America, Australia and Asia 2006 - BRANTFORD (CANADA) 2013 - MANISA (TURKEY) 2013- S.José Iturbide (MEXICO) 1975 - QUITO (ECUADOR) 1977 - LITHGOW (AUSTRALIA) 1996 - BUENOS AIRES (ARGENTINA) 1997 - POCOS DE CALDAS (BRAZIL)
Ferrero Production Plants Ferrero Social Enterprises CAMEROON SOUTH AFRICA INDIA
Group Turnover (Billions of Euros) 5.392 5.742 6.214 6.345 6.617 7.218 7.670 8.100 8.412 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Source: Internal
Chocolate Confectionery (US$ millions) 18.480 LEADERSHIP IN: Germany, Italy, France, Portugal, Singapore, Hong Kong, South Korea and Taiwan Net Sales 2014 14.350 10.911 10.466 7.485 4.022 Source: ICCO 2014
The Group s 10 international Big Brands Volumes sold year 2013/14 (in thousands of quintals) Nutella 3.825 Kinder Chocolate 900 Ferrero Rocher Kinder Bueno Kinder Surprise Kinder Milk Slice Kinder Pingui Raffaello Kinder Délice Tic Tac 680 616 438 350 282 270 267 259 More than 70% of the turnover was gained thanks to the Group s 10 international Big Brands. but 60% of the turnover was gained thanks to the Group s HAZELNUT BASED PRODUCTS. Source: Internal
Hazelnuts are Ferrero s most critical raw material (million ) HAZELNUTS MILK & DAIRY PRODUCTS COCOA VEGETABLE FATS SUGAR OTHER COCOA OTHERS EGGS FLOURS AROMES/FLAVOURINGS ALMONDS ~80% 0 200 400 600 800 1000
Hazelnut Global Supply (avg last 5 years) USA (Oregon) 34.000 tons (3 %) GEORGIA 25.000 tons (2 %) AZERBAIJAN 30.000 tons (2 %) ITALY 120.000 tons (12%) TURKEY 650.000 tons (70 %) Source: FAO OTHERS (Spain, France, Iran, ) ~5-10%
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Main Features & Challenges One Country provides almost 3/4 of the world production; In the last decade production and demand have been balanced World consumption is constantly increasing. High volatility of prices with constant trend of increase ; Confectionary industry is the main utilizer of hazelnut (50%); Social & environmental sustainability issues; Stability on production and quality standards; Diversification on sourcing (risk mitigation); Traceability.
Main Features & Challenges Ferrero is the largest hazelnut user globally, purchasing about 30% of the world supply To ensure sustainable high quality hazelnut supply in the medium term, since early 2000 s Ferrero has undertaken a strategy aiming at developing new production scenarios and strengthen the entire hazelnut supply chain: Vertical integration of the supply chain Promotion of GAP and sustainability criteria Development of new production scenarios
Ferrero Hazelnut Company A more than 1 bln company, ~ 3.000 empolyees with a global footprint 1. Farming 2. Processing 3. Purchase 4. Transformation 5. Sales < 2000 2007 2009 2011 2015 2002 Central Procurement STELLIFERI 2012 STELLIFERI 2012 Join Venture for semi-finished pdts 2015
Recent Acquisitions World leader in Hazelnut trade and transformation 5 plants (all in Turkey) Ca. 1000 employees 3 commercial offices (Turkey, UK, France) Italian leader in Hazelnut trade and transformation 3 plants (2 in Italy, 1 In Turkey) Ca. 200 employees 2 commercial offices (JV in Italy and Turkey)
HCo as open system in inbound and outbound (B2B clients) Ferrero Quality Hazelnuts B2B Market Quality Hazelnuts & other hazelnut semi-finished products
Ferrero Hazelnut Company A more than 1 bln company, ~ 3.000 empolyees with a global footprint 1. Farming 2. Processing 3. Purchase 4. Transformation 5. Sales < 2000 2007 2009 2011 2015 2002 Central Procurement STELLIFERI 2012 STELLIFERI 2012 Join Venture for semi-finished pdts 2015
Our present and future Outgrowing projects SERBIA Own Farm / Nursery Owned AgriFarms GEORGIA Own Farm / Partnership CHILE Own Farms / Nursery ARGENTINA Own Farm / Nursery SOUTH AFRICA Own Farm / Nursery AUSTRALIA Own Farm / Nursery
Cile Chile
Argentina
Georgia Georgia
Australia Australia
Sud Africa South Africa
Serbia
Our present and future Outgrowing projects OREGON Commercial Partnership ONTARIO (CA) Institutional Partnership FRANCE Commercial Partnership SERBIA Own Farm / Nursery MACEDONIA Pilot GEORGIA Own Farm / Partnership Owned AgriFarms Institutional Partnership Commercial Partnership Projects under evaluation ITALY Institutional Partnership AZERBAIJAN Pilot MEXICO Pilot INDIA Pilot CHINA Pilot CHILE Own Farms / Nursery ARGENTINA Own Farm / Nursery SOUTH AFRICA Own Farm / Nursery AUSTRALIA Own Farm / Nursery
The Ferrero Farming Turkey (FFT) OBJECTIVES Commercial and Procurement Good Agricultural Practices (GAP) Post Harvest Quality Full traceability Social Practices 2013-2015: Pilot Projects 2015-2018: Supply Development Objective: 100.000 Farmers
Boosting Hco Agro Improvement, Innovation and R&D Farming Processing Purchase Transformation Sales Agro Improvement and Innovation Processing and Transformation R&D 46 APPLICATIONS RECEIVED 1/3 from foreign countries (TK, ISR, SPA, CHI, AUS, CAN, GER, POR UKR, UK) 2/3 from Italy
Innovative technologies
WAREHOUSING BEST PRACTICES FOR PRESERVING HAZELNUT QUALITY (+4 C + NITROGEN)
DRONES FOR POLLINATION: SUCCESSFUL TEST IN CHILE
MECHANICAL OPERATIONS TRACKING VIA DEVICES IN GEORGIA
FULL-MECHANIZED DE-HUSKING SYSTEM IN GEORGIA
Hazelnut is the Ferrero Family signature on most of the products Thank you very much!