380000 tonnes fresh products - Bama

Ready, steady,
drive!
More flowers in
all the channels
A “quick meal” in a kiosk or at the petrol
station is no longer synonymous with
an unhealthy meal. Quite the opposite
in fact. Not only do busy people choose
healthier alternatives, they want their
fruit cut and their food prepared.
When the KPS Division was established as
a separate business area for kiosks, petrol
stations and the service market, whole
fruits and flowers were the most important
products. Now we are delivering ever more
comprehensive solutions in the form of
ready-cut products and ready-to-eat light
meals. KPS has based this good development
on experience and market expertise.
Several varieties of ready-to-eat light meals
have been developed in close cooperation
with the Industry Division.
Innovative thinking
One of the major focus areas in 2006 was
the implementation of a new concept for
ready-to-eat light meals in special displays
at Shell Fresh. The first 100 of a
total of 160 stations started up in 2006
with great success for both the customer
and supplier, which resulted in strong
volume growth. The implementation will
continue in 2007 and the development so
far indicates a new major boost. Esso, with
its On the Run concept focusing on healthy
foods, also showed growth of 22.9 per cent
in 2006. The Hydro stations also report
the same trend, where growth was just
under 20 per cent.
Massive focus on channels
It is the massive focus on food in these
channels that made a significant contribution
to the KPS Division’s good results in
2006. Easily accessible, healthy, more fruits
and vegetables, and prepared meals will
continue with greater strength this year.
Over one third of the KPS turnover was
through the petrol chains in 2006.
Big in the service market
BAMA Horeca and KPS cooperate closely with
the Industry Division on the development
of concepts and products adapted to their
respective chain customers. After the BAMA
Group acquired Nordic Lunch in 2006,
which is a company that has established
a good position as a supplier of fresh,
light meal solutions for airports and convenience
stores in Norway and Sweden,
new synergies and forms of cooperation
were realised. BAMA is thus in a position
for further growth in the service market.
KPS is integrated as an independent unit
in the Horeca Division. n
KEY FIGURES:
Turnover:
Growth:
NOK 146 million
22.9 per cent
After a long period of focus on flowers
BAMA is now seeing the results of its
efforts through deliveries to grocery
stores, the KPS market, and the Floriss
franchise chain.
BAMA wants to win by making its customers
winners. This includes flowers as well. The
goal is to become a market leader through
competitive prices as well as chain and
customer-adapted concepts. BAMA is delivering
increasingly fresher fresh products.
Flowers are fresh products and are handled
in the same manner as the fruit and
vegetable products.
Flowers in grocery stores
One of the major focus areas has been
flowers in grocery stores. An increasing
number of customers choose to buy flowers
during their daily grocery shopping trips.
There was good growth of 10.6 per cent in
2006 in the grocery division, a development
that appears to be growing stronger in the
current year. There has been significant
growth in recent years for kiosks, petrol
stations and the service market. The sales
stabilised in 2006, and there was a slight
increase.
To establish an even greater focus on flowers
BAMA has chosen to strengthen its focus
through Gro Blomster. The flower sector
shall be organised and developed here for
BAMA’s Grocery, KPS and Horeca divisions,
as well as the total flow of goods that also
includes purchases for the Floriss chain. An
amplification of our focus on flowers means
that further growth in specialist stores, KPS
and grocery stores is expected. Flowers
have a greater market share of the total
turnover in Europe than in Norway, but
we are on our way.
Floriss is increasing
BAMA has built up its new flower business
over time. The Floriss concept has found
its form and the figures show solid growth.
From 2005 to 2006 the net turnover
increased from NOK 195 million to NOK
225 million. The profits of our franchisees are
satisfactory. In recent years the consumers’
knowledge and awareness of Floriss
increased significantly. Floriss shall be perceived
by consumers as a modern specialist
store with high quality products and competitive
prices.
Floriss aims to open around seven new
stores in 2007, in addition to the 78 stores
already established. Higher turnover growth
has been budgeted for 2007 than in 2006.
Floriss has established itself as a significant
brand and a leading player in the market. n
KEY FIGURES
Turnover:
Growth:
NOK 334 million
7.9 per cent
Percentage of total turnover
Operating revenues in NOK million
Operating revenues in NOK million
Percentage of total turnover
200
350
309
334
175
150
146
300
250
257 257
279
1.2 %
125
119
200
100
84
102
150
75
50
25
0
58
+48.7 %
+44.2 %
+22.3 %
+16 %
2002 2003 2004 2005 2006
100
+22.9 %
100
50
0
+342.3 %
+0.3 %
+8.3 %
+11 %
+7.9 %
2002 2003 2004 2005 2006
Share of healthier and fresh meal solutions is increasing in the service market.
70 per cent of the flower volume is grown in Norway, 30 per cent is imported.
BAMA Annual Report 06 BAMA Annual Report 06
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