MKT case study frieslandcampina mr piet hilarides

Introduction to the Dutch Sustainable Growth Coalition
Tomorrow is green seminar

Hanoi, 10 May 2016


Tomorrow is green


Topics for today

Introduction to FrieslandCampina and our
purpose

The Dutch Sustainable Growth Coalition

Sustainability at FrieslandCampina

3


19,000 ambitious
member farmers
are the owners
of FrieslandCampina

4


FrieslandCampina: global player
in dairy ‘From grass to glass’

3rd largest global dairy cooperative
● Annual sales EUR 11.3bn
● 6th processor of milk globally
with 11 bln kg milk/year
● 19,000 member farmers
and 22,000 employees
● 80 Factories in 32 countries
● Sales in 100 countries
● Nourishing 1 billion people all
over the world with dairy
products containing valuable
nutrients

5


Friesland
Foods
receives Royal
designation
on its 125th
anniversary

Acquisition of
Zijerveld
and Veldhuyzen B.V. and
G. den Hollander Holding B.V.

2020
Acquisition Olam

Ivory Coast and
DEK srl in Italy.

2001

1993

1989

1979

1947

1926

1880

1871

Acquisition of IDB Belgium N.V.

2014

2008

We have a long
history…

2013

2012

Acquisition of
Alaska Milk
Corporation
Philippines

2004

2001

Merger of Coberco, Acquisition
Friesland Dairy Foods, of Nutricia
Dairy &
De Zuid-Oost-Hoek and
Drinks
Twee Provinciën
Group

1997

Founding of
Coberco in
Zutphen

1965

Friesche Vlag,
Dutch Baby and
Bonnet Rouge

are registered
for international
markets

1919

Founding of
CCF in
Leeuwarden

1913

1879

Founding of
Arnhemse
Melkinrichting

Founding
Campina
Melkunie

Nine farmers take
over a
cheese factory in
the Dutch
Wieringerwaard

Oprichting
van de eerste

zuivelcoöperaties

Founding of
the De Meijerij
Veghel / De
Melkindustrie
Veghel

Campina brand
introduced

DMV Campina
and Melkunie
Holland
introduced

Acquisition
of Sudmilch
(Heilbronn)

International launch of
formation of international
Campina brand
and co-operative

6


Our purpose

Better nutrition for the world…
● Provide food for the growing population from
7 to 8.5 billion people in 2030
● Optimise nutritional value of our dairy products
● Provide affordable nutrition in selected markets

…a good living for our farmers…
● Be an attractive cooperative for our member farmers
● Provide dairy development support in selected areas
to increase yield, safety and quality of milk and farming
● Enhance attractiveness for young farmers

…now and for generations to come
● Invest in the long term growth and
health of the company
● Grow in a climate neutral way
● Reduce the usage of scarce natural resources
7


The story of milk

8


Topics for today

Introduction to FrieslandCampina and our
purpose

The Dutch Sustainable Growth Coalition

Sustainability at FrieslandCampina

9


We are 1 of 8 initiators of Dutch
Sustainable Growth Coalition
The DSGC aims to drive sustainable growth along three lines:
 Shape: connect economic profitability with environmental and
social progress by integrated sustainable growth business models
 Share: aim for joint advocacy of sustainable growth business
models both internationally and nationally
 Stimulate: Influence policy debate on enabling sustainable growth
to find solutions to the environmental and social challenges

10


The DSGC member companies
have committed to take action
Optimize business strategies towards sustainable growth
Meet specific, transparent and measurable targets
Commit to peer learning through sharing good practices
Play catalyst role to ensure long-term sustainability
Inspire transition to sustainable growth

Shape

•
•
•
•
•

Share

• Identify national and international platforms to advocate
best practices among Dutch and international:
• Businesses
• Investors
• Government
• Civil society
• Consumers
• NGOs and universities

Stimulate

• Aspire to be a coalition of thought
leaders and give views on what drives
sustainable growth
• Develop policy recommendations to
influence government policies to
create conditions for sustainable
growth

FrieslandCampina case on
Manure recycling

11


DSGC driven by commitment
from the Top

15 April 2016: FrieslandCampina CEO Roelof Joosten presents vision paper
“Netherlands as Circular Hotspot” to Dutch Prime Minister Mark Rutte


Topics for today

Introduction to FrieslandCampina and our
purpose

The Dutch Sustainable Growth Coalition

Sustainability at FrieslandCampina

13


Challenges of food and nutrition
security
De groeiende wereldbevolking

Growing world
population

Enough

farmers to
produce food

Scarcity of
natural
raw materials

Common goal: Long term solutions to food and
nutrition security in South East Asia
14


Our Strategy is locked into
detailed action program
Purpose
Our unique
milk chain

Better nutrition for the world and a good
living for our farmers ,now and for generations to come
Leverage our Dutch dairy heritage and unique milk chain in a sustainable way
to win the hearts and minds of our key consumers and customers
Better nutrition for the
world

Good living for our
farmers

Now & for generations to
come

Strategic
pillars

Themes

Better products
Responsible marketing
Transparent nutrition labeling
Education on diet & exercise

Optimal milk valorization
Economic performance
DDP quality & quantity
DDP skills & knowledge

Climate-neutral growth
Source, produce sustainably
Animal health & welfare
Meadowgrazing + biodiversity

Corporate governance, CSR implementation teams
Business
foundations

Dairy Sustainability Framework, Stakeholder dialogue, partnerships, external reporting
Health & safety, employee and member farmers engagement, CSR Training, Awards
Product quality & safety, minimum standards, supplier code, business code of conduct

Our CSR strategy in SEA is driven by Our
vision: Nourishing by Nature

Nutrition
Drink.Move.Be.Strong
SEANUTS
New nutritional products
through innovation
Schoolmilk programs

Farmers
Dairy Development
Program

Sino-Dutch Dairy
Development Centre
Financing with
Rabobank Foundation

Sustainability
Sustainable sourcing
2020 goal
Energy and Supply
chain efficiency

16


Multi-sector Collaboration to
address challenges

Retailers

Govt.
Regulator

Farmers

Academia

Consumers

Food
System
Value
Chain

Logistics

F&B
compani
es

NGOs
Distributors
17
17


Some of our partners in Asia
and Vietnam

Retailers

Govt.
Regulators

Farmers

Academia

Consumers

Food
System
Value
Chain

Logistics

F&B
companies

NGOs
Distributors

18

18

Let’s take a closer look at some of
our initiatives in South East Asia


Drink.Move.Be.Strong campaign
across Southeast Asia

In partnership
with:

Inspired by:


A partnership with a purpose…

In 2015, over 200 schools joined DMBS in Vietnam
Our message of healthy lifestyle and diet has reached more than 68
million children across Malaysia, Indonesia, Thailand and Vietnam
- 21 -


Our multi-stakeholder partnership
has been recognized
We won 3 international awards in 2015
for our pioneering work in the region

The Gold Standard Awards
"Corporate Citizenship for Regional
Programme 2015"
FrieslandCampina Asia, Singapore

Our healthy lifestyle and diet initiatives

2015 Asia-Pacific Gold Stevie® Award
"Corporate Social Responsibility Program
of the Year"
FrieslandCampina Asia, Singapore
Our healthy lifestyle and diet initiatives

CMO Asia 5th Best CSR Practices
Awards 2015
“Best Use of CSR Practices in FMCG”
FrieslandCampina Asia, Singapore
Our healthy lifestyle and diet
initiatives

22
22


Our Dairy Development Program
supports 45,000+ dairy farmers

Dairy development program in
Vietnam
• Support over 3000 farmers
• More than 35,000 cows
• Intensive training program
• Over 100,000 MT/year of high
quality fresh milk
• Sustainable Dairy Zone in Hanam

Visiting FrieslandCampina
President Truong Tan Sang said:
“Building a new countryside of
Vietnam is an important strategy of
the State, and you have remarkable
contributions to this cause.”
23


We target climate-neutral growth
globally…
Minimize use of natural resources
• Energy efficiency improved 0.4% in 2015
• Water usage reduce 0.6% in 2015
• Green energy from 43% to 65% of total in 2015
• 4.3% lower Co2 emission per kg in production
World class waste management
• Waste recycling from 67% to 72% in 2015
Sustainable sourcing
• Sustainable agricultural ingredients from 23% to
26%
Valorize manure by circular means


…and in Vietnam

Water wastage processing
system in our manufacturing
facilities in Vietnam is able to

treat domestic and industrial
solid waste.

The amount of waste and
water wastage has been
reduced by over 25% in 2015
compared to 2010.

We have reduced energy usage by 15%, water usage by 25%
and CO2 emissions by 40 % compared to 2010