Mika Ala-Fossi - Atriagroup.com

What is Product Leadership?Atria Finland’s Strategic Choice:Claiming Product Leadership1. Taking care of and strengthening Atria brand’s contents and brandpromise• Tasty solutions for succesful meals: ”Good Food – Better Mood”• Domestic meat – always from nearby• Transparency, ethics, responsibility2. Taking care of existing products’ competitiveness• Meeting given quality• Availabilty to consumer• Competitive prices• Cost effective production• Persevarence3. Consumer knowledge and new products• Taste and quality• Fast and easy• Healthy• Transparency and safety• Average price• ProfitabilityMika Ala-Fossi9.12.2011Juha Gröhn

Kauhajoki Slaughterhouse in 20139.12.2011 Mika Ala-Fossi

Kauhajoki Bovine Slaughterhouse• One of the biggest slaughterhouses in Europe- In Europe there are bigger slaughterhouses only inNetherlands and Italy.- Kauhajoki is the 4. biggest slaughterhouse in Europe, sharingthe place with three other plants• Technology meets the highest recent requirements• In Kauhajoki Atria combines it’s long experience inbovine slaughtering with the latest technologicalnovelties• It’s possible to handle different sized animals from smallcalves to big bulls in the process9.12.2011 Mika Ala-Fossi

Kauhajoki Bovine Slaughterhouse• Techniques related to animal welfare, hygiene,efficiency and safety at work have been improved ashigh as possible- Beginning the slaughter process from top part to lower partbefore hide removal improves hygiene and safety at work- Stunning in two new type of stunning boxes• Improved animal handling helps to achieve e.g. better meat quality• Safe working positions for workers- Automatic, fully controlled and optimised refrigerationcircumstances- Ergonomic, electrical lifting surfaces.9.12.2011 Mika Ala-Fossi

Growing consumer demand onresponsibility and transparency• 20 % of Finnish consumers are concerned of the ethics inmeat production. The concern of animal breeding conditionsis growing.• Sourche: TNS Gallup, Elintarviketieto 2009• Consumers need more information of meat origin to supporttheir shopping decision- 70 % of consumers need more information of meat origin beforeshopping- 64 % of consumers are interested in animal welfare and animalwell-being when shopping- 61% of consumers need more information of the productionconditions• Source: MTT ja Kuluttajatutkimuskeskus, March 2010, Riskasennetutkimus2011• Atria family farm –concept gives the consumerinformation of the meat origin by showing the farm. Italso gives more information of the poultry productionchain.8.12.2011 9.12.2011 Mika Ala-Fossi

Atria Family Farm• Gives the consumer a possiblity to ”take a peak” in the poultry farmwhere the meat is produced.• In the beginning of year 2012 the name of producing poultry farm isvisible on the filé packings. There is also a special bar code(UpCode) where you can load more information of the farm.• True traceability• 65 Finnish family farms are producing Atrias poultry.9.12.2011 Mika Ala-Fossi

Slaughtering oforganic bovine at AtriaOrganic Meat• Atria Organic Meat fulfils organic criteria. Itmeans free-range meat, crossbred and milkcattle• Organic provisions guide organic meatproduction• Value parts are always tenderized (fillets, sirloinand roasts)• All organic farms have a production contract withAtria. They are committed to ethical farming andenvironmental requirements of sustainabledevelopment• 1.1.2012 Atria launches new organic FoodService products• In retail there is organic ground meat (400 g) forconsumers. Biggest organic food product in Finland.• Productisation is a challenge because of inadequate rawmaterial and irregular supplyMika Ala-Fossi9.12.2011Juha Gröhn

Household expenditure in Finland in 2010Entertaiment, culture andeducation12 %Mixed goods and servicesHotels, cafes and 9 %restaurants6 %Food12 %Drinks and tobacco5 %Clothing and shoes5 %Transportation13 %Health5 %Furnishings andhousekeeping5 %Housing28 %9.12.2011 Juha Mika Ala-Fossi Gröhn

Factors affecting buying decisions -SPONTANEOUSFactors affecting meat buying decisions- Spontaneous answers0% 10% 20% 30% 40% 50%Price, affordabilityDomestic, originQuality, meat contentFreshness, datePurpose of useSuitable package size, availabilityFat per centDesireTasteAppeareanceOffersWell-known brand or producerEasy anq quick to prepareHealthiness, lightnessPrice-quality ratioSalt contentEarlier experiencesOther content relatedOtherMeat 2002 Meat 2008 Meat 2009Lähde: SuomenGallup ElintarviketietoOy 20099.12.2011 Juha Mika Ala-Fossi Gröhn

Factors important toconsumers when buying food70 Suitable price-quality ratioLähde: TNS Gallup Values&Vision / Ruoka 20116050403020100Excellent tasteNourishingDeliciousFamily members like it tooAffordableSuitable package size/ portionHealth enchancingNo additivesProduced nearbyEasy to useEasily availableQuick to prepare/ eatEnvironment friendlyOrganic producedCheapEthical producedDisease preventingParticular manufacturerIndividualLähde: TNS Gallup / Ruoka 20119.12.2011 Juha Mika Ala-Fossi Gröhn

Meat consumption in Finland during1980-2010 and prognosis for 2011-2016 kg/personkg/personkg/person8075706560555045403530252015105Meat totalPorkBeefPoultry001980 82 84 86 88 1990 92 94 96 98 2000 2002 2004 2006 2008 2010 2012 2014 2016Source: Suomen Gallup Elintarviketieto Oy80757065605550454035302520151059.12.2011 Mika Ala-Fossi

• Meat consumption andproduction in Finland hasincreased year-on-year9.12.2011 Juha Mika Ala-Fossi Gröhn

Meat Market Review• The poor profitability of pork production hasresulted in a decline in production- -5–6% in 2011 according to forecasts- Further but more moderate decline in 2012• Frozen stocks better than last year• Demand for beef high- Frozen stocks have practically run out• Price level of beef and pork on the rise in Finland9.12.2011 Juha Mika Ala-Fossi Gröhn

9.12.2011 Mika Ala-Fossi