Caribbean - IBFAN

Nutricia
Jan Bennink
Chairman and CEO
Royal NUMICO N.V.
Rokkeveenseweg 49
2712 PJ Zoetermeer
The Netherlands
Tel: +31 79 353 9000
Fax: +31 79 353 9620
Website: www.numico.com
Products include:
FORMULA:
NUTRICIA–Nutrilon, Nutrilon Premium,
Nutrilon LF, Nutrilon Soya, Nutrilon AR,
Nenatal, Nutriben, Nutricia Soya,
Nutriprem, Bebelac, Bebelac EC,
Kissing My Baby, Malish, Malutka,
Nutricia Infacare, Vital Infantil, KAS
1000, L-K Infantil, Bago Prematura.
COW & GATE–Cow & Gate Premium,
Cow & Gate Follow-On, Cow & Gate
Step-Up, Cow & Gate Next Step, Cow &
Gate 2 Plus, Omneo Comfort.
SARI HUSADA–SGM, Vitalac.
COMPLEMENTARY FOODS:
Cow & Gate jar foods, Cereal Nutricia,
Crème Nutricia, Nutrix, Bambix, SGM.
Logos & Icons:
utricia, the largest Dutch baby food manufacturer, belongs to the
Royal NUMICO holding company (1998) coined after Nutricia,
N the mother company, Milupa, a German baby food manufacturer
(bought in 1995) and Cow & Gate, acquired by Nutricia in 1981. The
range of Bebelac products (formerly by Lyempf) are now marketed
under the Nutricia label. This report looks at all companies under
NUMICO, except for Milupa which is analysed separately as it sticks
to its own brand names and promotional schemes.
Debt burdened NUMICO has been undergoing a restructuring drive,
after an expensive adventure into the North American vitamin
business. Divestment activities saw the sale (at a huge loss) of its
nutritional supplements subsidiaries, GNC (US), and Vitamex
(Sweden). NUMICO now intends to once again focus on baby food
and clinical nutrition in order to become a “high-growth, highmargin
specialised nutrition company”. It offloaded Nutricia India,
described as a ‘low-margin start-up dairy and baby food operation’
which saw losses in the first half of 2003 and also discontinued
Mococa dairy production in Brazil.
Hoping to save costs on its baby food production in Western Europe,
NUMICO plans to reduce its plants from 16 to 9 by 2005. The
company wants to take advantage of Poland’s entry into the
European Union by tripling production at its Polish plant. Nutricia
Polska already exports 30% of its production to non-EU countries
but will now increase exports into the EU.
Net sales in the baby food sector increased by 5.6% in 2003 to
€1,016 million. The market grew especially in the UK, Ireland and
Belgium. The growth outside Europe was even stronger, some 12%
with Russia, Turkey and Indonesia being the top buyers. Most of the
growth, production-wise, was in formula (7%) while cereals and
jarred food only increased by 3%. In 2003, Nutricia Belgium was
forced to recall over 100,000 bottles of Olvarit baby food when
shards of glass were found in a bottle.
In February 2004, IBFAN was alerted to a commercial campaign by
Nutricia in China. The campaign, due to start in March, intended to
give away 50,000 CDs with famous children’s songs in order to
entice mothers to buy Nutricia baby formula. Nutricia’s Director in
China said: (with these CDs)… “we have gold in our hands”.
IBFAN-ICDC launched a protest as the scheme was a clear violation
of the Code as well as the Chinese law. Nutricia promised to modify
the campaign “to comply with Code” and at the time BTR goes to
press, the CD campaign remains suspended.
NUMICO claims to abide by the International Code and has issued
“Guiding Principles for the Marketing of Infant Formula”.
Unfortunately these Principles only govern the marketing of “starter
infant formula”. This is clearly in contradiction of the scope of the
Code which encompasses “all breastmilk substitutes”. The Guiding
Principles also fall short of other minimum requirements set by the
Code and fails to pay any attention to subsequent World Health
Assembly Resolutions which enjoy the same status as the Code.
68 International Baby Food Action Network -- IBFAN