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Business review 2009<br />
Strategic raw material positions<br />
Over the past few years <strong>Refresco</strong> has been building a strong<br />
position as a supplier of direct juice, also know as NFC (Not<br />
produced From Concentrate) juice. Recognizing the ten<strong>de</strong>ncy<br />
of the consumer to prefer NFC juice as opposed to juice from<br />
concentrate compelled us to expand our position further than<br />
our own NFC orange juice facility in Oliva (Spain). <strong>Refresco</strong><br />
entered into a strategic partnership with some of its Brazilian<br />
suppliers and became inspired to create a close cooperation<br />
on NFC with Grupo Leche Pascual in Spain. Backward integration<br />
has not been, and will not be, part of <strong>Refresco</strong>’s strategy.<br />
However, having the ability to guarantee raw material positions<br />
in growing markets is crucial for us to provi<strong>de</strong> the best service<br />
to our customers across Europe.<br />
The availability of Brazilian and Spanish NFC orange juice is<br />
seen as an important tool for <strong>de</strong>veloping one of our core markets.<br />
In many markets, our profile in relation to our customer<br />
base is much more supply-chain oriented than it was in the last<br />
few years. Next to managing cost price, quality and <strong>de</strong>livery<br />
performance, optimization of the total supply chain is increasingly<br />
important.<br />
Realignment of our portfolio<br />
Over the past few years, <strong>Refresco</strong> has increasingly moved<br />
from being mainly a juice producer to being a producer of all<br />
non-alcoholic beverages. This shift was most clearly visible in<br />
the last two years. Although juices still occupy a large share<br />
of the portfolio, with the acquisition of Schiffers Food in 2009,<br />
the presence of carbonated soft drinks (CSDs) and still drinks<br />
has grown and has consi<strong>de</strong>rably strengthened the portfolio.<br />
The acquisition also gives <strong>Refresco</strong> the opportunity to increase<br />
its private label propositions with regard to international<br />
retailers. What is more, it offers the company a more evenly<br />
spread risk profile from a purchasing perspective and enables<br />
us to leverage on purchasing and manufacturing synergies.<br />
The platform for further growth in the total portfolio of nonalcoholic<br />
beverages has been established.<br />
“We will stay focused<br />
on producing non-alcoholic beverages<br />
in all kinds of one-way packaging types for our customers in Europe.”<br />
Matching our strategy, we will stay focused on producing<br />
non-alcoholic beverages in all kinds of one-way packaging<br />
types for two types of customers in Europe – in manufacturing<br />
private label for retailers and co-manufacturing for A-brands.<br />
Throughout the entire supply chain we will invest in relations<br />
to optimize costs and consequently to improve our supply<br />
chain management.
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