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Bakery Report 2011 - Lantmannen Unibake

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<strong>Bakery</strong><br />

<strong>Report</strong><br />

<strong>2011</strong>


”<br />

With bread all<br />

sorrows are less<br />

Miguel de Cervantes, Don Quixote<br />

Ingredients<br />

4<br />

Who we are<br />

6<br />

CEO Statement<br />

10<br />

Tasty, healthy, fast and fresh<br />

12<br />

Competitive power with bread<br />

Lantmännen <strong>Unibake</strong><br />

<strong>Bakery</strong> <strong>Report</strong> <strong>2011</strong><br />

Printed in 3,000 copies.<br />

March <strong>2011</strong><br />

Editor: Monica Klepp Bjerrum,<br />

Lantmännen <strong>Unibake</strong>.<br />

Local parts edited in local units.<br />

14<br />

Philosophy of the bakery<br />

16<br />

Experts in whole grain<br />

18<br />

Looking into the bakeries of the future<br />

20<br />

International scope<br />

Design: Datagraf<br />

Print: Datagraf AS<br />


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

3


4<br />

Who we are<br />

3,894 Employees 18 Countries 26 Bakeries 733 mEuro turnover 2010<br />

83 <strong>Bakery</strong> lines 400,000 Tonnes of bread each year<br />

Agriculture<br />

Sector<br />

Part of the<br />

Lantmännen Group<br />

Legal affairs<br />

Board<br />

President & Group CEO<br />

Machinery<br />

Sector<br />

Owned by<br />

Lantmännen<br />

Energy<br />

Sector<br />

Lantmännen <strong>Unibake</strong> is owned by<br />

Swedish Lantmännen, which is one of the<br />

Nordic area’s largest Groups within food, energy<br />

and agriculture. The Group, owned by 37,000<br />

Swedish farmers, focuses on R&D<br />

and sustainable development to be a<br />

strong and long-term partner, taking<br />

responsibility for the entire chain<br />

from field to fork.<br />

Strategy & Business<br />

Development, R&D<br />

Food<br />

Sector<br />

Lantmännen<br />

<strong>Unibake</strong><br />

Lantmännen<br />

Kronfågel<br />

Lantmännen<br />

Cerealia<br />

Lantmännen<br />

Doggy<br />

The Lantmännen <strong>Unibake</strong><br />

Corporate Structure<br />

CEO: Bent Pultz Larsen<br />

Frozen Bread Business<br />

Production Denmark<br />

Sweden<br />

Norway<br />

Finland<br />

United Kingdom<br />

Germany<br />

Belgium<br />

Poland<br />

Hungary<br />

Russia<br />

USA<br />

Sales offices Spain<br />

Holland<br />

France<br />

Bakehouse, UK<br />

Australia<br />

South Africa<br />

Partly owner Japan<br />

Associate Korea<br />

company<br />

Corporate<br />

Support Functions<br />

Fresh Bread Business<br />

Denmark Production<br />

Poland<br />

Estonia (Leibur)


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

Lantmännen <strong>Unibake</strong> is a leading<br />

international bakery group with<br />

expertise in frozen and fresh bakery<br />

products for foodservice and retail.<br />

We solve tomorrow’s challenges in<br />

the bakery business and set new<br />

standards for possibilities with bread.<br />

All based on a desire to bake pleasure<br />

into peoples’ lives.<br />

Our aim is to make bread a profitable<br />

business for our customers<br />

through high quality products and<br />

superior solutions.<br />

What we do<br />

From our 26 bakeries mainly situated<br />

in Europe and supplemented<br />

by overseas production in USA we<br />

offer a full range of bakery products<br />

for in­store bakeries, service stations,<br />

restaurants, cafés, hotels, coffee<br />

shops, canteens, retail chains, catering<br />

and food service companies.<br />

The Executive Management Team (from left): Magnus Krook (Division Director Germany),<br />

Peder Christensen (Chief Operations Officer), Brian Guldbrandt (Chief Business Officer),<br />

Stine Aare Jensen (Chief Financial Officer), Bent Pultz Larsen (Chief Executive Officer), Peter<br />

Hermes (Chief Commercial Officer), Erik F. Nielsen (Chief Strategy Officer, Vice President)<br />

All products are based on ancient<br />

baking traditions and a strong philosophy<br />

about trustworthy raw materials,<br />

world class food safety and<br />

the optimal baking conditions to<br />

create high quality bread.<br />

The assortment covers all meals<br />

around the clock comprising Danish<br />

pastry, croissants, fast food bread,<br />

soft dough products and all types of<br />

bread and consumer­packed bread<br />

for retail. 75 % of our turnover is<br />

sold for bake­off ready to be baked<br />

and freshly served at the customers.<br />

We do it The <strong>Unibake</strong> Way<br />

Lantmännen <strong>Unibake</strong> has developed<br />

into a large, international bakery<br />

group, taking responsibility and getting<br />

things done with a straightforward<br />

and uncomplicated attitude.<br />

We call it The <strong>Unibake</strong> Way, which<br />

means that<br />

1. We keep our promises<br />

To our customers, employees, owners,<br />

suppliers and the world around<br />

us.<br />

2. We keep it simple<br />

Our attitude is uncomplicated and<br />

so are our solutions.<br />

3. We are entrepreneurs<br />

With individual commitment, local<br />

initiatives and global cooperation we<br />

make new ideas come alive.<br />

5


6<br />

Since Bent Pultz Larsen got this<br />

kayak as a present from the staff for<br />

his 60th birthday it has been a favourite<br />

hobby for the busy CEO. – A wonderful<br />

trip around the bay an early summer<br />

morning is the best time for reflection.<br />

It is even better than golf,<br />

says Bent Pultz Larsen.


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

<strong>Unibake</strong><br />

on the right<br />

course<br />

The second year of a recession tends<br />

to be difficult to handle. By comparison,<br />

the first year is easy, when<br />

everybody is focused on change, and<br />

it seems rational to pull the brake.<br />

The second year is different, and<br />

2010 was a second year.<br />

Focused on the business and tuned<br />

in on the signals from the market,<br />

we have been leading Lantmännen<br />

<strong>Unibake</strong> through the recession and<br />

into a future, which offers a wide<br />

range of possible scenarios. Sometimes<br />

it feels like all known parameters<br />

have suddenly been turned<br />

upside­down. The prices of raw<br />

materials fluctuate dramatically, exchange<br />

rates undermine the profit,<br />

families change their values and their<br />

buying habits. And all this makes<br />

me conclude that we have never seen<br />

more potential opportunities for<br />

the watchful and the skillful than<br />

right now. The flipside of the coin<br />

is the huge challenges looming, and<br />

gene rally it is fair to say that it has<br />

become harder to earn a profit by<br />

making bread.<br />

2010 was a reasonable year<br />

We have done quite well in 2010<br />

under the given circumstances. We<br />

are not fully satisfied with the result,<br />

but nevertheless we have come quite<br />

close to our goals.<br />

During the year we have acquired<br />

two new companies to our business.<br />

As part of the internationalization<br />

of our bakery structure we have invested<br />

in a fast food bakery in Hungary,<br />

reinforcing our position in the<br />

Central European market. The new<br />

bakery in Hungary secures us an<br />

ideal production platform and direct<br />

access to a well­established sales and<br />

distribution network throughout the<br />

Central­European region.<br />

In 2010 we also became the majority<br />

shareholder in Bakehouse, UK’s<br />

leading supplier of sweet and savoury<br />

pastries and specialty breads.<br />

With Bakehouse we got emer ging<br />

businesses in Australia and South<br />

Africa. The acquisition made the UK<br />

our biggest market. ><br />

”<br />

Despite the difficult<br />

market situation we<br />

are happy to note that<br />

we have succeeded<br />

in increasing the<br />

market share in<br />

several important<br />

markets and<br />

segments.”<br />

7


8<br />

><br />

New bakery structure<br />

being implemented<br />

The fierce competition and the<br />

fluctuating exchange rates make it<br />

more important than ever to bake<br />

our bread and pastry close to the<br />

customers. Therefore we have started<br />

a major restructuring of our baking<br />

facilities to bring us closer to the<br />

most important markets. In England<br />

we are close to opening a brand new<br />

bakery featuring all the modern process<br />

technology that will enable us<br />

to deliver locally produced Danish<br />

pastry to the British market.<br />

The new baking capacity in the UK<br />

means that we will close down the<br />

Fristrup­bakery in Denmark and<br />

move the majority of the production<br />

to the new bakery in Bedford.<br />

Furthermore, we have closed down<br />

the bakery in Glostrup, Denmark,<br />

moving the production of fast food<br />

products to Finland, Germany and<br />

Hungary.<br />

2010 has been characterized by a<br />

number of internal development projects.<br />

First and foremost we are in the<br />

process of implementing an international<br />

ERP system that will connect<br />

all business units and support our<br />

philosophy of ONE <strong>Unibake</strong>. Furthermore,<br />

we have carried out LEAD<br />

projects in 11 bakeries and the rest of<br />

our sites are planned for <strong>2011</strong>.<br />

Market development step by step<br />

The financial crisis and the ensuing<br />

recession have resulted in changing<br />

consumer habits and new requirements<br />

from the customers. Consumers<br />

are increasingly acting as<br />

professional buyers, planning their<br />

shopping in detail, and making strategic<br />

choices. Consumers prefer the<br />

same high quality as ever, but wait<br />

to buy the products until they get a<br />

discount. Hard discount stores are<br />

sprouting everywhere, and downtrading<br />

to cheaper goods is also a<br />

significant trend.<br />

B2B customers bear the brunt in<br />

the crisis­ridden market. A decrease<br />

in travelling in almost all markets<br />

and the conversion into discount<br />

are general trends. Customers are<br />

cutting down inventories, investing<br />

in efficient logistics solutions and reducing<br />

the number of suppliers.<br />

The market for bread is impacted<br />

by the recession. However, bake­off<br />

in particular is expected to grow<br />

in the future. Traditional fast food<br />

is stagnant at the moment but expected<br />

to grow when the Eastern<br />

European countries are back on their<br />

feet, and new fast food products like<br />

sandwiches and savouries are also expected<br />

to grow.<br />

Despite the difficult market situation<br />

we are happy to note that we have<br />

succeeded in increasing the market<br />

share in several important markets<br />

and segments.<br />

I would like to highlight the progress<br />

and good results in Russia and<br />

Poland, which support our decision<br />

to invest in Hungary. Despite the recession<br />

in the UK the future in this<br />

important market looks good with<br />

our new set­up. Our activities in the<br />

US develop according to plan with a<br />

lot of promising opportunities. During<br />

2010 we divested our business<br />

units in Japan and Korea to focus<br />

our business in Europe and North<br />

America. However, we still sell a lot<br />

of products to Asia through new cooperation<br />

constellations.<br />

A promising outlook<br />

I am an optimist as regards the<br />

future. We do our best to keep our<br />

eyes wide open to be able to react<br />

quickly to important trends and<br />

changes in the market. Flexibility is<br />

our trade mark, and I am sure that<br />

this special ability will make us one<br />

of the winners in the bakery business.<br />

We are investing in the right<br />

development projects, which will<br />

make us even stronger and more<br />

customer­driven, and my greatest<br />

worry is whether we will be able to<br />

invest enough to match the demands<br />

of the markets.<br />

Last year we initiated our ONE<br />

<strong>Unibake</strong> strategy to create an even<br />

stronger and more united bakery<br />

group.<br />

The people in Lantmännen <strong>Unibake</strong><br />

are great, and we are a good family. I<br />

enjoy the spirit and the enthusiasm<br />

of the organization, and I am confident<br />

that our ambitious strategy will<br />

bring us safely into the future. All of<br />

it to remain the customer’s preferred<br />

supplier and one­point of contact.<br />

Bent Pultz Larsen<br />

CEO Lantmännen <strong>Unibake</strong>


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

Finance<br />

mEURO 2006 2007 2008 2009<br />

Net Sales<br />

Sales<br />

Wheat Bread 32%<br />

Other 9%<br />

Croissants 8%<br />

Danish Pastry 11%<br />

478.0<br />

Categories<br />

Fast Food 29%<br />

Rye Bread 11%<br />

595.6 725.7 727.3 733.8<br />

UK 16%<br />

Countries<br />

Denmark 29%<br />

Sweden 11%<br />

Norway 10%<br />

Rest 11%<br />

Belgium 6%<br />

Germany 5%<br />

USA 6%<br />

Poland 6%<br />

Fresh/frozen<br />

Fresh 25%<br />

2010<br />

Frozen 75%<br />

9


10<br />

Trends<br />

Tasty, healthy,<br />

fast and fresh<br />

Arjan de Boer<br />

Trendsspotter from<br />

Shoot my Food<br />

”<br />

The trick is to make<br />

it easy for the consumer<br />

to handle<br />

a freshly baked<br />

croissant, a cup<br />

of coffee and a<br />

mobile telephone at<br />

the same time on<br />

the way to work.”<br />

Arjan de Boer from the trend agency<br />

Shoot my Food, publishing the Food<br />

Inspiration Magazine, travels around<br />

the world to map the most recent<br />

developments in the eating habits of<br />

consumers. With his camera and his<br />

notebook he roams the streets of cities<br />

worldwide, visiting fast food restaurants,<br />

gas stations, and hotels to track<br />

down what is important to consumers<br />

right now. All over Europe the development<br />

in consumer trends seem to<br />

be similar. But what do they look like?<br />

Sustainable food<br />

According to Arjan de Boer the<br />

younger generations in particular are<br />

concerned about the sustainability of<br />

their food. They care about the impact<br />

of food production on climate and<br />

natural resources. They are concerned<br />

about the increasing number of people<br />

that the planet has to feed. They want<br />

to have confidence in the companies<br />

that produce the food they eat; they<br />

are concerned about animal welfare<br />

and child labour. In other words, they<br />

expect sustainability in the whole value<br />

chain from cradle to grave.<br />

Slow food – served fast<br />

Consumers are tired of unhealthy<br />

fast food. On the other hand they<br />

have less and less time.<br />

– Apparently a paradox, but the<br />

situation opens new opportunities,<br />

says Arjan de Boer. The art is to<br />

put effort into the preparation and<br />

then make it easy for people to enjoy<br />

the meal on the go. He underlines<br />

the small things that can make the<br />

whole difference.<br />

– A high­quality napkin, big<br />

enough to avoid crumbs from the<br />

bread all over the car. All­in­one<br />

solutions for breakfast, which more<br />

and more people take on the way to<br />

work so that it is easy to handle a<br />

freshly baked croissant, some fruit<br />

and a cup of good coffee at the same


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

time. Therefore the packaging is so<br />

important. When you buy a quick<br />

meal it has to be like receiving a gift,<br />

premium quality and care inside and<br />

outside, says Arjan de Boer.<br />

The concept of slow food also<br />

comprises a desire for healthier<br />

products. High nutritional value,<br />

few empty calories and few additives.<br />

This is why whole grain<br />

products are on the rise across<br />

Europe. Baked with white wheat<br />

and with the right mix of flour,<br />

whole grain bread is fast becoming<br />

a favourite among health­conscious<br />

consumers, even in countries that<br />

Fresh, healthy<br />

and tasty products<br />

elegantly presented<br />

appeal to women<br />

do not have a strong tradition for<br />

whole grain.<br />

The feminine gas station<br />

While more and more customers<br />

at the gas stations are women, the<br />

ambience and assortment of the gas<br />

stations still mostly appeal to men.<br />

Consequently, women flee the gas<br />

stations as quickly as possible, leaving<br />

a lot of lost opportunities behind.<br />

– Fresh, healthy, and tasty products,<br />

elegantly presented appeal to<br />

women. Shopping at gas stations is<br />

very much based on impulse, and<br />

traditional fast food does not appeal<br />

to women. On the other hand,<br />

freshly baked bread is a winner<br />

among the women, says Arjan de<br />

Boer.<br />

He also studied trends at hotels.<br />

What he sees is an increasing demand<br />

for self­service.<br />

­ Hotel guests want to eat, where<br />

and when it suits them. It is ok if<br />

you have to do something yourself<br />

to fix a snack or a light meal if you<br />

arrive late – if the assortment and<br />

facilities are clean and inviting, and<br />

the food on offering is fresh and<br />

delicate, says Arjan de Boer.<br />

11


12<br />

Competitive power<br />

with bread<br />

The smell of freshly baked bread attracts people and makes them buy more. It is all about<br />

offering the right choice during the day and combining it with knowhow of what makes the<br />

difference for your specific business. With our service concept we make tailormade solutions<br />

for each customer with focus on baking, merchandising, sales and boosting profit. We<br />

have solid experience with creating business results for our customers in almost all sales<br />

channels.<br />

Baking results with<br />

in-store bakeries<br />

An active in­store­bakery creates<br />

atmosphere and life in any shop.<br />

With the pleasant smell of freshly<br />

baked bread and pastry the senses are<br />

stimulated towards impulse buying.<br />

By combining the optimal product<br />

assortment and professional product<br />

presentation we help customers increase<br />

sales in the bakery category by<br />

up to 25%. For this reason even the<br />

discount sector has started to show<br />

interest in running their own mini<br />

bakeries in the shops. At the moment<br />

we are developing an in­store<br />

concept for discount shops, bringing<br />

the nice smell into the shops with a<br />

limited number of resources.<br />

Baking results at gas stations<br />

Gas stations in general are in a fantastic<br />

development. An increasingly<br />

part of their earnings comes from the<br />

food business, and bakery is a key<br />

strategic product category to attract<br />

the consumers. People arrive not<br />

only to buy gas but also for a quick<br />

snack or meal or for food to bring<br />

home. A freshly baked assortment<br />

for every meal during the day increases<br />

impulse sales and cross sales.<br />

We consult and teach gas stations<br />

how to organize, run and expose the<br />

food & drink sections to get optimal<br />

turnover. It is clear how a softening<br />

of the traditional masculine environment<br />

makes a big difference and also<br />

welcomes the female segment to the<br />

shop. Healthy sandwiches, indulgent<br />

snacks and good coffee combined<br />

with traditional fast food makes the<br />

difference.<br />

Baking results in<br />

the fast food business<br />

Fast food is one of our key competencies<br />

with a market leader position<br />

in several countries. No other companies<br />

can offer such a big variation<br />

of products and so many possibilities.<br />

In burger buns we cover everything<br />

from the classic and basic bun to<br />

the gourmet experience. The same<br />

goes for hotdog buns, sandwiches,<br />

etc. With all baking technologies inhouse<br />

and a strong set­up with fast<br />

food bakeries around our company<br />

we are able to adjust almost any<br />

parameter in the products: shapes,<br />

sizes, ingredients, fibres, grain, spices,<br />

packagings, toppings, looks and organic<br />

or conventional products. We<br />

also make products for special events<br />

or branding activities.


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

Hot news<br />

News that makes everyday life a little<br />

easier and more tasteful.<br />

A range of healthy personalities<br />

The Hatting retail assortment in Denmark and Norway<br />

has been given a boost from a new range of<br />

organic whole grain bread developed in cooperation<br />

with leading nutrition experts. The mix of new<br />

Hatting products and well-known favorites loaded<br />

with fibres and whole grain have attracted new<br />

Intense<br />

burgers<br />

Why not bake the taste of Mexico<br />

directly into the bread? EXTRA Taco<br />

from Korvbrödsbagarn is a great success<br />

on the Swedish market, where<br />

the combination of cumin, garlic and<br />

chili gives an intense sensation of taste.<br />

EXTRA Taco is one example of how<br />

premium products within the fast food<br />

category grow and take new directions<br />

enhancing the possibilities within this<br />

classic assortment.<br />

segments and consumers to the supermarkets’<br />

freezer with great success.<br />

Attracting<br />

new shoppers<br />

with pastry<br />

Three new, tailor-made pastries from Lantmännen<br />

<strong>Unibake</strong> are now available at one of the UK’s major<br />

retail chains. The products were carefully developed<br />

to appeal to a broad segment and to attract<br />

new shoppers to the category. We have worked<br />

with appearance, exciting flavor combinations and<br />

shape. 30% of the growth our customer experienced<br />

in the Danish pastry category last year was<br />

attributed to the launch of these new products.<br />

Rye bread<br />

in disguise<br />

All the healthy characteristics of rye bread, but soft and<br />

mild like sandwich bread. Now there is no excuse to skip<br />

the recommended daily intake of fibers and whole<br />

grain. With the new sandwich bread sold to consumers<br />

in Denmark and Sweden we have succeeded in developing<br />

a rye bread full of fibers while at the same time<br />

fulfilling the preferences of the consumers. Simply the<br />

perfect bread!<br />

13


14<br />

Philosophy<br />

of the bakery<br />

Most people have an opinion<br />

about the quality of bread.<br />

That is good. We are happy<br />

when people are interested<br />

in good bakery products,<br />

since it is our passion.<br />

Please join us on a journey<br />

into the philosophy behind<br />

our products together with<br />

five specialists.<br />

Palle Kjær Pedersen, Innovation Manager, Lantmännen <strong>Unibake</strong> Denmark<br />

Every product starts in the artisan bakery<br />

Every new bread or pastry product has been created by a passionate baker who loves his craft. With<br />

professional pride, creativity, expertise and pure craftsmanship we develop every detail of the products:<br />

the crust, the crumb, the shape, the colour, the smell, the taste, the texture. We make everything from<br />

scratch, and it always starts in our artisan bakery. Here we develop thousands of new bread and pastry<br />

types every year. Only the very best are transferred to the bakery lines, where we apply the exact same<br />

care and principles only in larger scale. It is extremely rewarding when our experiments result in a flow of<br />

thousands of perfect copies from the bakery lines.<br />

Mette Kann, Corporate Quality<br />

Director, Lantmännen <strong>Unibake</strong><br />

Much can go wrong<br />

in a bakery<br />

This is why food safety has the highest priority<br />

at Lantmännen <strong>Unibake</strong>. Through decades<br />

we have refined and developed our routines<br />

and systems to fulfill the strictest requirements<br />

from customers around the world.<br />

At our bakeries we manage the ingredients<br />

carefully, we keep the bakeries clean and<br />

tidy, we control all processes in every detail,<br />

and we run our business with extraordinary<br />

high levels of hygiene. All suppliers have<br />

to sign our Supplier Code<br />

of Conduct. We have<br />

quality managers in all<br />

bakeries, who make<br />

sure that production is<br />

carried out according<br />

to our standards every<br />

day. Furthermore, we<br />

develop our quality and<br />

food safety procedures on<br />

a continuous basis to even<br />

higher standards.


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

Anders Frøberg,<br />

Service Concept Consultant,<br />

Lantmännen <strong>Unibake</strong><br />

Intelligent<br />

convenience – the<br />

key to good results<br />

When I travel around the world teaching baking<br />

techniques, decoration and presentation<br />

of the <strong>Unibake</strong> products, I am proud of the<br />

quality that <strong>Unibake</strong> represents. We make the<br />

same products millions of times, and even so<br />

they always have the same look, taste and<br />

shape. The customers can trust us<br />

to provide the quality they expect<br />

when they open a carton from<br />

<strong>Unibake</strong>. Convenience is important<br />

elements in the development<br />

process. Uniform baking<br />

times and baking temperatures<br />

for most of the products make<br />

it easy, and decoration glazing<br />

and syrup included with<br />

the pastries – that is<br />

quality to me.<br />

Peder Christensen, Chief Operations Officer,<br />

Lantmännen <strong>Unibake</strong><br />

Bake off means fresh<br />

Piet Van Beveren, R&D and Quality Director, Lantmännen <strong>Unibake</strong> Benelux<br />

Good bread is made from good ingredients. It is as simple as that.<br />

We can only bake our high quality products when we work with<br />

high quality ingredients. Our requirements to quality, taste and baking<br />

characteristics are so high that only the very best ingredients<br />

make it to the bakery. We quick-freeze the products straight<br />

from the oven, before the ageing process in the bread sets<br />

in. This is the key to completely fresh products, ready<br />

for bake off when the customers want a delicious bite.<br />

Bake off offers the opportunity to bake around the clock,<br />

adjusted to sales and demands so that the products are<br />

always freshly baked.<br />

Sensing the dough means everything<br />

In the bakery all physical circumstances affect the quality of the bread: the weather, the humidity, the<br />

flour, the quality of the ingredients, the machinery and the temperature. No robots can ever do this<br />

work. Our bakers constantly adjust the baking process with expertise and precision according to the<br />

circumstances. There is a human being behind every product, assisted by modern technology to monitor,<br />

measure, scan and transport the thousands of products that flow from our bakeries every day.<br />

15


16<br />

Experts in<br />

whole grain<br />

Tina Lindeløv<br />

Innovation Manager,<br />

Lantmännen Schulstad<br />

Denmark<br />

Tina Lindeløv is Innovation Manager<br />

in our fresh bread division,<br />

Schulstad in Denmark. She has<br />

worked with innovation and product<br />

development for 10 years and<br />

is one of our key experts in whole<br />

grain. During the years she has<br />

seen the bread market develop and<br />

many trends come and go.<br />

– The whole grain trend has been<br />

around for several years and seems<br />

to be growing stronger. From our<br />

dialogue with the customers we see<br />

a clear trend towards healthy bread<br />

types with whole grain. This is very<br />

positive due to the proven health<br />

benefits of the fibre, vitamins and<br />

minerals that characterize whole<br />

grain, says Tina Lindeløv.<br />

Focus on natural health and taste<br />

Lantmännen <strong>Unibake</strong> has highly<br />

specialized competences in utilizing<br />

whole grain and other raw materials<br />

for maximum health and taste.<br />

– Whole grain is not just one thing.<br />

We constantly develop new bread<br />

types, which would never have been<br />

recognized as whole grain just a few<br />

years ago. We can do this because<br />

we can combine the raw materials<br />

so that the bread achieves the right<br />

nutritional balance, while preserving<br />

the premium taste, says Tina.<br />

Among other things, Lantmännen<br />

<strong>Unibake</strong> cooperates with the grain<br />

mills to develop new ways of grinding<br />

and to create new combinations<br />

of grain types.<br />

– Traditionally, whole grain bread is<br />

made from wheat and rye, but we<br />

are also considering barley, which<br />

has promising properties when<br />

mixed with other grain types. The<br />

trick is to find the right balance, always<br />

keeping the good taste and the<br />

natural health as the core elements,<br />

says Tina Lindeløv.


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

Pushing the limits<br />

We are constantly testing different<br />

flour combinations and pushing the<br />

limits for how much whole grain we<br />

can use in bread and still keep the<br />

good taste.<br />

– Today we can bake whole grain<br />

bread which has almost the same<br />

taste and texture as traditional white<br />

bread. Our Levebrød Fuldkornsbrød<br />

from Lantmännen Schulstad for<br />

example contains 45 % whole grain,<br />

which is more than most rye bread.<br />

At the same time it offers the characteristic<br />

mild taste and the white<br />

crumb that consumers love about<br />

wheat bread, says Tina Lindeløv.<br />

The healthy trend<br />

Increased focus on health has made<br />

whole grain one of the strongest<br />

trends in the bread market. Over<br />

the years, consumers have become<br />

more and more aware of the nutritional<br />

benefits of whole grain and<br />

today, the demand for whole grain<br />

products is bigger than ever.<br />

Alongside the increasing demand<br />

for whole grain, consumers challenge<br />

the bread industry to come<br />

up with new, healthy and tasty<br />

products. At Lantmännen <strong>Unibake</strong><br />

we invest a lot of work in developing<br />

the whole grain category.<br />

In Scandinavia whole grain has<br />

been an integrated part of the diet<br />

for centuries and its benefits are acknowledged.<br />

But whole grain is no<br />

longer restricted to Scandinavian<br />

consumers; on the contrary, we see<br />

” We have just launched a revolution within<br />

the rye bread category. Through innovation<br />

we have succeeded in developing rye<br />

bread that combines all the healthy qualities<br />

of the traditional rye bread with the<br />

soft and airy quality of white bread. We<br />

expect a lot from the new bread which<br />

fulfills the dreams of many consumers<br />

about the perfect bread.”<br />

whole grain bread<br />

finding its way to<br />

the plates of more<br />

and more consumers<br />

in countries<br />

where whole<br />

grain is not part of<br />

the tradition.<br />

One of the reasons<br />

for the success of<br />

whole grain is<br />

the fact that we<br />

develop new products<br />

that meet<br />

the taste of people,<br />

who do not yet have<br />

a tradition for bread<br />

with seeds and the red,<br />

slightly bitter wheat<br />

which is often used<br />

in Scandinavia.<br />

17


18<br />

Looking into<br />

the bakeries<br />

of the future<br />

The requirements to the efficiency of<br />

the bakeries are growing all the time<br />

as are the requirements to the quality<br />

of the products. This means that we<br />

have to constantly develop and refine<br />

our production. Never before have<br />

we been so ambitious as regards our<br />

production facilities, never before have<br />

we invested so much in so many large<br />

projects and never before has the future<br />

looked more promising.<br />

Structured processes with LEAD<br />

LEAD, which is the Lantmännen<br />

interpretation of Lean, has been implemented<br />

in nearly all bakeries, and<br />

the rest are planned for <strong>2011</strong>. The<br />

implementation of LEAD makes<br />

the bakeries more professional with<br />

more structured work processes. The<br />

employees are deeply involved in the<br />

LEAD projects at their bakeries, and<br />

the active involvement has increased<br />

the motivation in the daily work,<br />

improved the working environment<br />

has also reduced absence due to sickness.<br />

Besides the normal content of such<br />

projects we have added an extra dimension,<br />

which we call “bottleneck<br />

analyses”. This is where we work<br />

with process innovation to develop<br />

tailored, intelligent solutions that<br />

make us even better at details. We<br />

investigate the details of the production<br />

and map the areas where we by<br />

adjusting small things can become<br />

even better.<br />

Transparent supply chain<br />

with new ERP system<br />

During 2010, we have developed<br />

a new all­comprising ERP system<br />

which will enable us to work seamlessly<br />

together across functions and<br />

countries. The purpose of the new<br />

system is to achieve more transparent<br />

processes, especially within the<br />

supply chain. The system will be put<br />

into operation in the first<br />

countries during <strong>2011</strong>,<br />

and after that the<br />

implementation<br />

will be<br />

rolled out in<br />

our business<br />

units worldwide.<br />

The<br />

project will<br />

leverage new<br />

opportunities<br />

within logistics<br />

as well.<br />

By 2020 we<br />

will reduce our<br />

CO2 emission by<br />

33%<br />

compared to 2009<br />

New levels of food safety<br />

Food safety has always enjoyed top<br />

priority in the business model of<br />

Lantmännen <strong>Unibake</strong>, and during<br />

2010 the effort in this area became<br />

even more visible with the new strategy.<br />

During the year all European<br />

bakeries were BRC certified, and<br />

the goal is to achieve grade A everywhere.<br />

In <strong>2011</strong> we expect USA on<br />

this level too. Furthermore, we have<br />

defined a number of extra requirements<br />

in our food safety manual,<br />

among other things strict requirements<br />

to safety equipment and extremely<br />

high hygiene requirements.<br />

The goal is to implement the food<br />

safety manual in all bakeries before<br />

2013.<br />

Climate from mindset to action<br />

As part of the Lantmännen Group<br />

we have set a goal to reduce our<br />

CO2 emissions by 33 percent before<br />

2020. To reach this goal we<br />

have to focus on reducing<br />

the energy consumption<br />

of the production<br />

and simplifying<br />

the logistics. We are<br />

in the process of<br />

developing a CO2<br />

toolbox for production,<br />

which all<br />

units will implement.<br />

The climate challenge<br />

is complex and we have


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

Building a new<br />

super-bakery in the UK<br />

The British love Danish pastry and with our new bakery in Bedford we will get state of the<br />

art facilities in this important market. Every corner of the bakery is designed for streamlined<br />

production with climate-friendly solutions and the highest level of food safety.<br />

A team of British bakers have been trained by colleagues from Denmark in how to produce<br />

high quality pastry. It is a completely different thing to work with laminated products than<br />

with bread so transfer of competence is an important part of establishing a new bakery.<br />

made a strict prioritization to go for<br />

results that benefit the environment<br />

as well as the business.<br />

We have also made a climate declaration<br />

for our ten biggest products to<br />

be able to determine where we have<br />

the highest potential for improvement.<br />

Talented people<br />

Talent and competence are needed<br />

to lead an international food company<br />

with high ambitions like<br />

<strong>Lantmannen</strong> <strong>Unibake</strong>. Therefore,<br />

we have made talent management a<br />

priority. Currently we are mapping<br />

the talent potential of the company,<br />

and we are offering international career<br />

paths to the employees. The key<br />

words of the ONE <strong>Unibake</strong> strategy<br />

as regards HR development are development,<br />

knowledge sharing and<br />

internationalization.<br />

Our production philosophy<br />

Reliability<br />

We work systemati cally to improve<br />

our supply chain in order<br />

to minimize our production<br />

costs and optimize our ability<br />

to deliver in any situation.<br />

RELIABILITY<br />

SUSTAINABILITY<br />

Sustainability<br />

We have an increasingly strong focus on<br />

sustainable practices. Together with the<br />

Lantmännen Group we develop sustainable<br />

solutions to reduce our impact on<br />

the climate and the environment.<br />

FOOD SAFETY<br />

QUALITY<br />

19<br />

Food safety<br />

We never compromise on<br />

food safety. Our system<br />

is fine-tuned to meet the<br />

expectations from even the<br />

most demanding customers<br />

anywhere in the world.<br />

Product<br />

quality<br />

All details in the production<br />

process influence the taste<br />

and customer experience.<br />

We constantly optimize<br />

all stages and every little<br />

detail to ensure the best<br />

quality product.


20<br />

International<br />

Bakehouse<br />

Australia<br />

General Manager:<br />

Greg Harnwell<br />

Sales office: Glebe<br />

Lantmännen <strong>Unibake</strong><br />

The Baltics<br />

Sales Manager:<br />

Franceska Kirkila<br />

Sales office: Riga<br />

Lantmännen <strong>Unibake</strong><br />

Benelux<br />

Division Director:<br />

Jean Dinet<br />

Bakeries: Londerzeel,<br />

Mouscron, Brussels<br />

Number of employees: 369<br />

Lantmännen <strong>Unibake</strong><br />

Denmark<br />

Division Director:<br />

Trine Egsgaard<br />

Bakeries: Hatting,<br />

Holstebro, Hasselager,<br />

Fristrup, Doense<br />

Number of employees: 689<br />

Lantmännen Schulstad<br />

Denmark<br />

Division Director:<br />

Carsten Lyngsø Thomsen<br />

Bakeries: Pandrup,<br />

Avedøre, Viborg<br />

Number of employees: 733<br />

Lantmännen <strong>Unibake</strong><br />

Finland<br />

Division Director:<br />

Marko Laine<br />

<strong>Bakery</strong>: Vantaa<br />

Number of employees: 59<br />

Lantmännen <strong>Unibake</strong><br />

France<br />

Sales Manager:<br />

Beátrice Fregier<br />

Sales office: Miramas<br />

Lantmännen <strong>Unibake</strong><br />

Germany<br />

Division Director:<br />

Magnus Krook<br />

Bakeries: Verden,<br />

Harrislee, Suhl<br />

Number of employees: 279<br />

Lantmännen <strong>Unibake</strong><br />

Hungary<br />

Division Director:<br />

Márta Galácz<br />

<strong>Bakery</strong>: Budapest<br />

Number of employees: 44<br />

Lantmännen <strong>Unibake</strong><br />

Norway<br />

Division Director:<br />

Trond Aarø<br />

<strong>Bakery</strong>: Langhus<br />

Number of employees: 106<br />

Lantmännen <strong>Unibake</strong><br />

Poland<br />

Division Director:<br />

Jacek Gorecki<br />

<strong>Bakery</strong>: Niepore˛ t<br />

Number of employees: 190<br />

Lantmännen Axa<br />

Poland<br />

Division Director:<br />

Grzegorz Stupnicki<br />

<strong>Bakery</strong>: Poznan<br />

Number of employees: 303


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

scope<br />

Lantmännen <strong>Unibake</strong><br />

Russia<br />

Division Director:<br />

Ekaterina Zaplatina<br />

<strong>Bakery</strong>: Yegorievsk<br />

Number of employees: 119<br />

Bakehouse<br />

South Africa<br />

National Account<br />

Manager: Monia Parker<br />

Sales office: Montague<br />

Gardens<br />

Lantmännen <strong>Unibake</strong><br />

Spain<br />

Division Director:<br />

Luis Roca<br />

Sales office: Barcelona<br />

Lantmännen <strong>Unibake</strong><br />

Sweden<br />

Division Director:<br />

Lasse Gustafsson<br />

Bakeries: Örebro, Mantorp<br />

Number of employees: 364<br />

Lantmännen <strong>Unibake</strong><br />

The Netherlands<br />

Commercial Manager:<br />

Hans Van Den Bosch<br />

Sales office: Driebergen<br />

Bakehouse<br />

United Kingdom<br />

Managing Director:<br />

Tony Brown<br />

Sales office: Bagshot<br />

Lantmännen <strong>Unibake</strong><br />

United Kingdom<br />

Division Director:<br />

Søren Landtved<br />

Sales company: Bakehouse<br />

Bakeries: Milton Keynes,<br />

Bedford<br />

Number of employees: 439<br />

Lantmännen <strong>Unibake</strong><br />

USA<br />

Division Director:<br />

Scott Kolinski<br />

<strong>Bakery</strong>: Florida<br />

Sales office: Chicago<br />

Number of employees: 143<br />

21


22<br />

The Baker<br />

” He takes the best<br />

from nature, mixes it with<br />

know-how, and adds love<br />

and a little magic.<br />


<strong>Bakery</strong> <strong>Report</strong><br />

<strong>2011</strong><br />

23


www.lantmannen-unibake.com

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