Food Division
Food Division The Food Division comprises the branded food companies managed by <strong>Dr</strong>. <strong>Oetker</strong> GmbH, which are active in some 40 countries, as well as other companies operating in the end consumer and bulk consumer segment. In <strong>2011</strong> the Food Division generated sales revenue of Euro 2,337 million, an increase of 0.8 % on the previous year. Adjusted for currency and other effects, sales grew by 2.3 %. Capital expenditure stood at Euro 111 million, up Euro 40 million on the previous year. The number of employees rose by 1.9 % in the same period, to 11,488. <strong>Dr</strong>. <strong>Oetker</strong> After the German economy had grown by a price-adjusted 3.6 % in 2010, gross domestic product rose again last year, adding 3 % in real terms. This restored the economy in Germany to the level prior to the economic and fi nancial crisis in 2008. The indebtedness of a number of industrialized nations in the course of the past year led to uncertainty on the capital markets, causing growth to lose momentum in the second half of the year. In this environment, disposable income increased as a result of the rise in wages and boosted purchasing power. Growth in Germany is increasingly sustained by domestic demand. Prices for key agricultural raw materials, by contrast, came under renewed pressure worldwide and impacted prices to the fi nal consumer. The performance of the <strong>Dr</strong>. <strong>Oetker</strong> national companies varied greatly. Overall, however, <strong>Dr</strong>. <strong>Oetker</strong> GmbH achieved a satisfactory result in sales and revenue terms. As in the previous reporting year, the ambient food segment maintained its position well in <strong>2011</strong>, holding market leadership in all ambient food ranges. The product group decorations, which was taken over from Schwartauer Werke, was successfully converted to the <strong>Dr</strong>. <strong>Oetker</strong> brand. The introduction of the new ready made cakes segment was accomplished with equally pleasing results. Following the successful launch of stone-baked pizza Tradizionale in 2010, <strong>Dr</strong>. <strong>Oetker</strong> extended distribution of this innovation to other countries and has already notched up the fi rst successes here. In Spain a good position in the pizza business advanced to one of leadership, and in Finland <strong>Dr</strong>. <strong>Oetker</strong> once again held its ground as the number one in this segment. To this can be added the expansion of the pizza business in Brazil and South Africa, as well as in the Australian market. The chilled products range posted a respectable sales performance, achieving full-year market leadership in Germany and Italy for the fi rst time. In particular, the introduction of Paula Mini strengthened the positions of ready desserts and led to further gains in market share. Sales generated by the international affi liates last year, down 1.2 %, were marginally below those of the previous year, giving them a 65.3 % share of total revenue (2010: 66.3 %). The background to the decline, in particular, was the sale of the yoghurt business in Great Britain and Russia; adjusted for these effects, sales rose by 2.8 %. The Italian company cameo recorded a slight gain in the <strong>2011</strong> fi nancial year. In the chilled products segment the affi liate achieved market leadership in Italy, relegating the erstwhile market leader to second place. Food Division 8 9