ANNUAL REPORT 2008 - Eckes-Granini Group
ANNUAL REPORT 2008 - Eckes-Granini Group
ANNUAL REPORT 2008 - Eckes-Granini Group
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AnnuAl rEport <strong>2008</strong>
| Our Vision |<br />
Leading European fruit juice and fruit<br />
beverage company, based on strong<br />
Number 1 / Number 2 brands, with an<br />
excellent reputation for successful<br />
innovations.<br />
Profitable and sustainable growth, via<br />
organic growth and acquisitions, mainly<br />
in Europe.<br />
With a motivated and competent team<br />
in a very attractive company characterized<br />
by an open and entrepreneurial culture.
| Corporate Boards |<br />
Supervisory Board of <strong>Eckes</strong> AG<br />
Peter Thiel Chairman<br />
Dr Karl Brings Deputy Chairman<br />
Michael <strong>Eckes</strong><br />
Bernard Huber<br />
Dr Holger Karsten<br />
Stefan Kobold<br />
Executive Board of the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> GmbH<br />
Thomas Hinderer Chairman<br />
Michael Augustin Supply Chain<br />
Sidney Coffeng Marketing, R&D, Export & Corporate Communication<br />
Heribert Gathof General Manager <strong>Eckes</strong>-<strong>Granini</strong> Germany & Austria<br />
Albert Grätz Finance, Controlling, M&A<br />
Sabine Holtkamp Human Resources, Organizational Development<br />
Jean-Marc Thevenin General Manager <strong>Eckes</strong>-<strong>Granini</strong> France
| National Organizations |<br />
Austria <strong>Eckes</strong>-<strong>Granini</strong> Austria GmbH Kröllendorf/Austria<br />
Denmark Valsølille Most Aps Glostrup / Denmark<br />
Estonia Marli Eesti AS * Tallinn / Estonia<br />
Finland Oy Marli Ab * Turku / Finland<br />
France <strong>Eckes</strong>-<strong>Granini</strong> France SNC Sarre-Union/France<br />
Germany <strong>Eckes</strong>-<strong>Granini</strong> Deutschland GmbH Nieder-Olm/Germany<br />
Hungary SIÓ-ECKES Kft. Siófok / Hungary<br />
Latvia SIA Marli Latvia * Riga / Latvia<br />
Lithuania UAB Elmenhorster Vilnius * Vilnius / Lithuania<br />
Norway Brämhults AS Oslo / Norway<br />
Spain <strong>Eckes</strong>-<strong>Granini</strong> Ibérica S. A. Barcelona / Spain 51 %<br />
Sweden Brämhults Juice AB Brämhult / Sweden<br />
Switzerland <strong>Eckes</strong>-<strong>Granini</strong> Suisse S. A. Henniez / Switzerland 51 %<br />
Romania <strong>Eckes</strong>-<strong>Granini</strong> Romania S. R. L. Bucharest / Romania<br />
100 % interest unless otherwise indicated<br />
| * Marli Eesti AS was officially renamed <strong>Eckes</strong>-<strong>Granini</strong> Eesti AS effective December 18, <strong>2008</strong>.<br />
Oy Marli Ab was officially renamed <strong>Eckes</strong>-<strong>Granini</strong> Finland Oy Ab effective February 1, 2009.<br />
SIA Marli Latvia was officially renamed SIA <strong>Eckes</strong>-<strong>Granini</strong> Latvija effective January 13, 2009.<br />
UAB Elmenhorster Vilnius was officially renamed UAB <strong>Eckes</strong>-<strong>Granini</strong> Lietuva effective March 19, 2009.
| Contents |<br />
1. Foreword 2<br />
2. Business Year <strong>2008</strong> 5<br />
3. People at 14<br />
<strong>Eckes</strong> <strong>Granini</strong><br />
4. Our Countries 24<br />
Overview 24<br />
Germany 26<br />
France 28<br />
Austria 30<br />
Baltic States 31<br />
Finland 32<br />
Hungary 33<br />
Romania 34<br />
Scandinavia 35<br />
Spain 36<br />
Switzerland 37<br />
Export 38<br />
5. Key Business Figures, 40<br />
Commentary<br />
6. Internet, Publishing Data 42
2 Foreword<br />
| <strong>Eckes</strong>-<strong>Granini</strong>:<br />
Long-term strategic orientation pays off |<br />
In the fi rst business year following our decision to<br />
focus on the European fruit juice business through<br />
the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>, <strong>Eckes</strong> AG has established<br />
a fi rm foundation for future success. On the basis<br />
of our long-term strategic orientation, we took a<br />
signifi cant step forward toward achievement of our<br />
Vision 2010.<br />
Business activities in <strong>2008</strong> were devoted above all<br />
to the implementation of our long-term value-added<br />
strategy. This included the consistent focus on our<br />
strategic brands, which form the core of our business.<br />
One aspect of this policy involves a systematic retreat<br />
from the trade label sector. The sale of these operations<br />
in France and the Sarre-Union plant in Alsace<br />
was a part of this programme.<br />
Other measures adopted within the context of our<br />
value-added strategy, included the streamlining of<br />
our country portfolio. The <strong>Group</strong> sold the Uslada<br />
brand and has thus discontinued its direct marke ting<br />
operations in Russia. The future acti vities of the<br />
granini brand in Russia will be managed by the<br />
Business Unit Export.<br />
Due to the streamlining of portfolios in France and<br />
Russia, <strong>Group</strong> volume sales and turnover decreased in<br />
<strong>2008</strong>. Adjusted to account for these effects, turnover<br />
in the core fruit beverage business rose by 4%. Earnings<br />
before interest and taxes increased signifi cantly.<br />
We are pleased with the development of our business<br />
during the past year. We performed better than our<br />
competitors in the brand segment and strengthened<br />
our position as one of the leading producers of<br />
branded fruit beverages in Europe. Our substantial<br />
investments in advertising support for brands and<br />
products has “paid off” in the most positive sense.<br />
Our expenditures in this area have risen continuously<br />
by more than 20 % over the past three years.<br />
The <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> is a healthy, independent<br />
family enterprise which is now ideally prepared to<br />
meet the challenges of the years to come. We will<br />
continue to pursue our successful long-term valueadded<br />
strategy in the future.
From left to right: Michael Augustin, Jean-Marc Thevenin, Heribert Gathof, Thomas Hinderer, Sabine Holtkamp, Sidney Coffeng, Albert Grätz.<br />
Success would not have been possible without the<br />
commitment and hard work of our competent,<br />
highly motivated employees. “People make the<br />
difference.” And we have made this one of our<br />
core values for good reason. We are convinced that<br />
people really do make the crucial difference. Our<br />
organization is shaped by people – in all positions,<br />
departments and countries – who strive with passion<br />
to achieve our common goal. We wish to take this<br />
opportunity to thank each and every one of them.<br />
Our corporate identity and culture are embodied in<br />
our <strong>Eckes</strong>-<strong>Granini</strong> Purpose, which was defi ned and<br />
articulated for the entire <strong>Group</strong> in <strong>2008</strong>. We know<br />
that our Purpose makes an essential contribution to<br />
the realization of our corporate goals, and provides<br />
the framework for future action.<br />
We look ahead with confi dence to the year 2009.<br />
Although we are well aware that we will be opera ting<br />
in a very diffi cult business environment and<br />
that short-term setbacks may occur, we also know<br />
that we are well prepared for the challenges to<br />
come. The sustainable basis we have achieved in all<br />
areas of our business will remain the key to our<br />
success over time.<br />
The <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> is ideally equipped for the<br />
future. With our well-qualifi ed, highly motivated<br />
employees, with the courage to pursue new directions<br />
and passionate devotion to our brands, we will<br />
continue to move our company forward.<br />
The Executive Board<br />
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong><br />
Vorwort<br />
3
| Sustained value-added strategy bears fruit –<br />
The market:<br />
Value increase despite declining volumes<br />
While the European fruit beverage market recorded<br />
a value growth in <strong>2008</strong>, volume sales were down<br />
slightly from the preceding year. The increase in value<br />
is due to rising prices during the fi rst half of the year<br />
and to the persistently strong demand for premium<br />
products in the chilled fruit beverage segment.<br />
Business in the markets for fruit beverages of relevance<br />
to <strong>Eckes</strong>-<strong>Granini</strong> (data from the retail food<br />
trade in 11 core countries) developed in line with<br />
the European market as a whole, as value rose by<br />
5.4 % in <strong>2008</strong> despite a moderate decline in<br />
volume sales (-2.1 %). *<br />
The trend toward chilled beverages continued as<br />
expected. However, following a promising start early<br />
in the year, the smoothie segment lagged behind<br />
expectations, as sales declined signifi cantly toward<br />
the end of the year.<br />
The demand for natural fruit beverages remained<br />
strong in the refreshment segment. In terms of packaging,<br />
consumers continued to favour the convenient<br />
PET bottles over glass and carton packaging units.<br />
earnings rise signifi cantly |<br />
In this market environment, the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong><br />
succeeded in maintaining its leading position in the<br />
European fruit beverage market with a value-based<br />
market share of 12.3 % (2007: 12.4 %). * The <strong>Group</strong><br />
therefore performed better than many other brand<br />
producers in <strong>2008</strong>.<br />
Forecasts for 2009 indicate that markets will remain<br />
under pressure due to the global economic crisis, as<br />
became evident toward the end of <strong>2008</strong>. This trend<br />
was also accompanied by rising demand for lowerpriced<br />
consumer products.<br />
|* Market data for the retail food trade: Austria, Denmark,<br />
Estonia, France, Germany, Hungary, Lithuania, Romania,<br />
Spain, Sweden and Switzerland (market fi gures for Finland<br />
are not available)<br />
Business Year <strong>2008</strong><br />
5
6 Business Year <strong>2008</strong><br />
Key Figures 2006 2007 <strong>2008</strong> Diff.<br />
Volume sales in million litres 1,067 1,153 1,086 - 5.8 %<br />
– of which fruit beverages (core business) 978 1,035 960 - 7.2 %<br />
Net turnover in million EUR 818 921 917 - 0.4 %<br />
– of which fruit beverages (core business) 802 899 889 - 1.1 %<br />
Earnings before interest and taxes (EbIT) in million EUR 37.0 38.3 48.4 + 26.2 %<br />
Employees * 1,457 1,527 1,445<br />
| * Full-time equivalent<br />
The <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>:<br />
Consistent focus on core business<br />
In the face of a persistently challenging market environment,<br />
the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> recorded positive<br />
overall results in <strong>2008</strong>. Total volume sales declined by<br />
5.8 % to 1,086 million litres (2007: 1,153 million litres).<br />
Volume sales in the core fruit beverage business were<br />
down by 7.2 % to 960 million litres (2007: 1,035 million<br />
litres). However, accounting for the planned divestments<br />
– the withdrawal from the Russian market and<br />
the sale of trade label operations in France – volume<br />
sales in the core fruit beverage business actually rose<br />
slightly in comparison to 2007 (+ 1 %).<br />
A major growth driver in <strong>2008</strong> – the year of its 50th<br />
anniversary – was the hohes C brand, which grew<br />
volume sales by 6 % to roughly 225 million litres in<br />
Germany. The Finnish Marli brand also performed well,<br />
with volume sales up 5 % following gains of roughly<br />
20 % in 2006 and 2007. In the wake of strong growth<br />
in the preceding years, volume sales of the international<br />
premium brand granini and the French Joker brand<br />
remained stable at 2007 levels.<br />
Total turnover for the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> nearly<br />
matched the previous year’s level at 917 million<br />
EUR (2007: 921 million EUR). The same applies to<br />
revenues from the core fruit beverage business, which<br />
amounted to 889 million EUR (2007: 899 million EUR).<br />
Adjusted to account for divestments net turnover in<br />
the core fruit beverage business actually rose by 4 %.<br />
Strong brands drive significant earnings gain<br />
Earnings before interest and taxes (EbIT) for the<br />
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> rose by a substantial 26 % (an<br />
absolute increase of 10.1 million EUR) to 48.4 million<br />
EUR in <strong>2008</strong> (2007: 38.3 million EUR). This is clear<br />
confirmation that consistent pursuit of the sustained<br />
value-added strategy during the past several years has<br />
indeed borne fruit.
574<br />
Turnover 2001 – <strong>2008</strong> in million EUR<br />
01 02 03 04 05 06 07 08<br />
23.7<br />
677<br />
704<br />
678<br />
718<br />
818<br />
Earnings before interest and taxes<br />
(EblT) in million EUR<br />
25.6<br />
37.4<br />
35.8<br />
921 917<br />
43.6<br />
37.0<br />
868<br />
Volume sales 2001 – <strong>2008</strong> in million litres<br />
871<br />
890<br />
841<br />
896<br />
1,067<br />
1,153<br />
1,086<br />
01 02 03 04 05 06 07 08<br />
38.3<br />
48.4<br />
01 02 03 04 05 06 07 08<br />
Business Year <strong>2008</strong><br />
7
8 Business Year <strong>2008</strong><br />
One of the most important steps along the way has<br />
been the decision to focus on the strategic brands that<br />
form the core of the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>’s business.<br />
The retreat from the trade label business in France<br />
must be viewed within this context.<br />
The process of streamlining the country portfolio is<br />
another key aspect of this strategy. Accordingly, the<br />
<strong>Group</strong> sold the Uslada brand and has thus discontinued<br />
its direct marketing operations in Russia. Activities<br />
in support of the granini brand will be managed by<br />
the Business Unit Export.<br />
Although <strong>Group</strong> volume sales and turnover decreased<br />
in <strong>2008</strong> due to the streamlining of portfolios in France<br />
and Russia, earnings before interest and taxes rose<br />
substantially.<br />
The sustained success of the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> is<br />
also attributable to increased investments in advertising<br />
support for its strategic brands. Substantial invest-<br />
ments in advertising support for brands and products<br />
have risen by over 20 % during the past three years.<br />
The <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> will continue to ensure and<br />
promote sustained growth in company value through<br />
investments in its strategic brands in the future.<br />
Our existing core business was strengthened by expanding<br />
into the dynamically growing chilled premium<br />
fruit juice segment through the acquisitions of Ulti in<br />
France (January <strong>2008</strong>), Elka in Germany (March <strong>2008</strong>)<br />
and zamba in Switzerland (December <strong>2008</strong>).<br />
With all of these measures, the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong><br />
took major steps forward toward achievement of its<br />
Vision 2010 next year. The goal is to increase company<br />
value signifi cantly on a sustained basis.<br />
Pursuing new directions with successful<br />
innovations<br />
With respect to brands and products, considerable<br />
emphasis was placed during the past year on strategic<br />
measures for which preparations had already been<br />
initiated in 2007. These included the development<br />
of a stronger presence in the refreshment beverage<br />
segment through the introduction of such innovative<br />
products as granini Rãcoarea Fructelor (Romania),<br />
Marli kupliva (Finland) and hohes C Naturelle in<br />
Germany. The launch of granini Smoothies in the<br />
chilled cabinet fell well short of expectations due to
Strategic brands 86 %<br />
granini 28 %<br />
hohes C 23 %<br />
Joker 16 %<br />
Other strategic brands 19 %<br />
| * Base: Core business fruit beverages<br />
a signifi cant decline in demand. The Marli Vital Protect<br />
health shot was successfully introduced under the<br />
Marli brand in Finland. Its health benefi ts are based on<br />
the natural antioxidants in the combination of berries<br />
contained in the product.<br />
On the other hand more than half of the innovations<br />
presented during the past year were concentrated<br />
in the <strong>Group</strong>’s core portfolio. A healthy core business<br />
is the foundation for long-term growth in new segments.<br />
Many of the most important innovations in the<br />
core portfolio are trend-oriented products designed<br />
to optimize the existing range, such as the addition of<br />
hohes C Mild Multivitamin to the successful hohes C<br />
Mild Juice concept.<br />
The exotic Orange-Pitahaya variety was introduced<br />
as part of the granini “Fruit of the Year” concept<br />
in Switz erland and Spain. The new granini Apple-<br />
Cranberry trend variety was launched in Germany.<br />
Net sales shares by brand in <strong>2008</strong> (fi gures rounded)*<br />
Tactical brands 3 %<br />
Other turnover 11 %<br />
Furthermore, new product concepts like Joker Bienfaits<br />
(France) have been launched in the innovative Ovaline<br />
carton: unusual fruit combinations that offer antioxidants<br />
as an added health benefi t.<br />
A completely new product was created specifi cally for<br />
children: a 100 % fruit snack in the practical squeeze<br />
pack. The product is sold in Austria and Germany<br />
under the FruchtTiger brand and in Hungary as an<br />
addition to the SIÒ VitaTigris line. This new fruit snack<br />
satisfi es the demand for a healthy all-fruit product that<br />
children will enjoy and parents will appreciate for the<br />
added benefi ts it offers as a healthy, nutritious and<br />
convenient between-meal treat.<br />
Business Year <strong>2008</strong><br />
9
10 Business Year <strong>2008</strong><br />
Supply Chain:<br />
Long-term investments in the future<br />
The <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> made sustained investments<br />
in several different production plants during the past<br />
business year in order to equip these facilities for the<br />
future in the interest of long-term business success.<br />
In keeping with the rigorous focus on brand business<br />
and the decision to sell off the plant in Sarre-Union,<br />
the investment programme for the French facility<br />
in Mâcon included quality assurance and efficiency<br />
enhancement measures focused primarily on branded<br />
products in PET bottles. A comprehensive investment<br />
programme devoted largely to quality assurance and<br />
efficiency enhancement was also initiated at the<br />
Brämhult plant acquired in 2007. This project is scheduled<br />
for completion by the end of 2009. Last but not<br />
least, the third PET filling line in Germany was installed<br />
at the production plant in Bröl in order to meet the<br />
strong demand for products in PET bottles.<br />
Other activities in <strong>2008</strong> included further progress in<br />
the process of centralizing the European purchasing<br />
department initiated in 2007 and further improvements<br />
in quality assurance processes.<br />
Raw material prices, which had already risen substantially<br />
in 2007, remained well above the average of previous<br />
years in <strong>2008</strong>. Raw material prices also remained<br />
highly volatile throughout the year.<br />
Human Resources:<br />
Thinking globally, acting locally<br />
In the spirit of the “Leadership in Change” concept<br />
initiated and implemented in 2006, the International<br />
Leadership Programme (ILP) was continued as an<br />
established, ongoing programme for <strong>Group</strong> management<br />
personnel during the past year. Important<br />
aspects included open dialogue and consistent efforts<br />
in support of networking and integration, particularly<br />
of new employees, within the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>.<br />
The goal of the programme is to create a common<br />
culture of leadership while taking cultural differences<br />
into account.<br />
The International Development Programme (IDP) was<br />
added to the portfolio of personnel development tools<br />
in <strong>2008</strong>. Conceived specifically for the <strong>Eckes</strong>-<strong>Granini</strong><br />
<strong>Group</strong>, the IDP is designed for selected employees<br />
who hold key positions in different departments<br />
within the various national organizations and are<br />
thus effectively networked. These individuals serve as<br />
multipliers in support of the realization of Vision 2010,<br />
with a strong focus on entrepreneurship and leadership.<br />
Consequently, cooperative action and effective<br />
communication – within national organizations and<br />
especially across national boundaries – are key aspects<br />
of the training programme. Emphasis is placed on<br />
the application of learning to participants’ day-to-day<br />
work and the contribution every participant can make<br />
to realization of Vision 2010 in his or her own area<br />
of responsibility.
The Leadership Feedback system, introduced as an<br />
additional human resources tool in 2007, was expanded<br />
to cover other corporate levels. Within this context,<br />
employees learned how to provide feedback to their<br />
supervisors. The objective of this measure is to make<br />
communication between supervisors and subordinates<br />
more effective and effi cient. It also aims to promote<br />
the development of shared concepts of tasks and<br />
goals while strengthening personal commitment.<br />
Striving for consistent growth in company value<br />
in the face of increasingly tough challenges<br />
On the whole, markets are expected to come under<br />
even greater pressure in 2009 as a result of the anticipated<br />
effects of the global fi nancial crisis. In spite<br />
of the challenges posed by this increasingly diffi cult<br />
market environment, the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> will<br />
continue to pursue its long-term strategy devoted to<br />
continuous growth in company value.<br />
The current trend in favour of chilled products is likely<br />
to weaken in the short run under the infl uence of the<br />
global economic crisis but can be expected to regain<br />
strength over time. The demand for natural, refreshing<br />
fruit beverages should remain constant. <strong>Eckes</strong>-<strong>Granini</strong><br />
has established a good position in the non-carbonated<br />
thirst-quencher and refreshment segment with such<br />
successful concepts as hohes C Naturelle, granini<br />
Rãcoarea Fructelor and SIÓ fresh & fruit. Carbonated<br />
beverages, including granini Fruit Spritzer and Marli<br />
kupliva, also appear to offer very promising future<br />
growth potential.<br />
The <strong>Group</strong>’s core business will be strengthened in<br />
2009 by additional product innovations and line<br />
extensions. The fruit snacks for children successfully<br />
introduced under the FruchtTiger and SIÓ VitaTigris<br />
brands in Germany and Hungary, respectively, will be<br />
available under the Mehukatti brand (Finland) in 2009.<br />
Focal points of activity in supply chain management<br />
will include additional investments in Mâcon and<br />
Brämhult and further adjustments to quality assurance<br />
processes. Plans in this context call for certifi cation of<br />
all production facilities in compliance with the International<br />
Food Standard (IFS). Following the successful<br />
conversion of granini from glass to PET bottles at<br />
nearly all relevant facilities in Europe, the project will<br />
also be implemented in Spain in 2009.<br />
Business Year <strong>2008</strong><br />
11
12 Business Year <strong>2008</strong><br />
| Important events in <strong>2008</strong> |<br />
January.<br />
An extensive programme of investments devoted to<br />
enhancing quality and effi ciency is launched at the<br />
Brämhult production plant in Sweden. The project<br />
is scheduled for completion in late 2009.<br />
Production capacities at Elmenhorster in Lithuania are<br />
expanded in <strong>2008</strong> with the installation and commissioning<br />
of two carton fi lling systems (Tetra Prisma in<br />
January and SIG Combibloc in April).<br />
Existing core business is strengthened by expanding<br />
into the dynamically growing chilled premium fruit<br />
juice segment through the acquisitions of Ulti in<br />
France (January <strong>2008</strong>), Elka in Germany (March <strong>2008</strong>)<br />
and zamba in Switzerland (December <strong>2008</strong>).<br />
February.<br />
The granini Rãcoarea Fructelor line of refreshing,<br />
non-carbonated fruit beverages is launched in the<br />
Romanian market – a signifi cant step forward for the<br />
granini brand in Romania.<br />
April.<br />
In keeping with established corporate strategy, the<br />
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> shifts its focus onto strong<br />
brands in France as well. In the process, trade label<br />
operations in Sarre-Union are sold and substantial<br />
investments are made for the purpose of improving<br />
quality assurance, effi ciency and production capacity<br />
at the production facility in Mâcon.<br />
April / May.<br />
Managers, corporate executives and employees join<br />
together in defi ning the <strong>Eckes</strong>-<strong>Granini</strong> Purpose, the<br />
“common identity” of our company. The purpose<br />
clearly identifi es what we stand for and articulates<br />
the values and convictions that form the foun dation<br />
and the guiding principles of our actions.<br />
July.<br />
A second cold-aseptic PET bottling line is installed<br />
and commissioned at the production plant in Bröl.<br />
This is the third such production line introduced by<br />
<strong>Eckes</strong>-<strong>Granini</strong> in Germany. This investment responds<br />
to the increasingly strong demand for products in<br />
PET bottles.<br />
August.<br />
The hohes C brand celebrates its 50th birthday. For<br />
generations, hohes C has been virtually synonymous<br />
with ready-to-drink orange juice that is rich in natural<br />
vitamin C. <strong>Eckes</strong>-<strong>Granini</strong> celebrates the milestone<br />
anniversary with a big party for all employees.<br />
The <strong>Group</strong> sells the Uslada brand in Russia to Rarität<br />
Ltd. and has thus discontinued its direct marketing<br />
operations in Russia. The future activities of the granini<br />
brand in Russia will be managed by the Business<br />
Unit Export.<br />
October.<br />
The groundbreaking ceremony signals the start of<br />
construction for the new administration building<br />
for the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> GmbH in Nieder-Olm<br />
(Germany). Provided work proceeds as scheduled,<br />
employees will move into their new offi ces during<br />
the later half of 2009.
Geschäftsjahr <strong>2008</strong><br />
13
| People make the difference at <strong>Eckes</strong>-<strong>Granini</strong> |<br />
One of our essential beliefs is that “people make<br />
the difference”. This means two things. First of all,<br />
it means that it is people who shape our company’s<br />
success and who get things moving at <strong>Eckes</strong>-<strong>Granini</strong>.<br />
But it also relates to how people interact with each<br />
other and how the company – supervisors and corporate<br />
management – respects its employees, takes<br />
them seriously and involves them in processes and<br />
decisions.<br />
What is so special about the people who work for<br />
<strong>Eckes</strong>-<strong>Granini</strong>? They are authentic and committed<br />
to the company’s goals. It is also immediately obvious<br />
that they identify closely with the company and its<br />
brands and products. Qualities such as self-initiative,<br />
passion and the will to seize opportunities and create<br />
new solutions for the benefit of all are actively<br />
demon strated by employees in all departments and<br />
at all levels of the corporate hierarchy.<br />
This working atmosphere is fostered among other<br />
things by flat hierarchies that facilitate direct communication<br />
between employees and their super visors<br />
and corporate management. Strong emphasis is also<br />
placed on personal development. Employees are<br />
consistently developed in keeping with their skills<br />
and potential. Advancement across departmental<br />
boundaries also plays an important role – as people<br />
move from Controlling to Marketing, for example,<br />
or from Marketing to Human Resources and Organizational<br />
Development.<br />
Actively promoting dialogue and networking<br />
People at <strong>Eckes</strong>-<strong>Granini</strong> are supported and promoted<br />
with the aid of special instruments, such as the “International<br />
Development Programme” for employees in<br />
specific key positions and the “International Leadership<br />
Programme”, in which managers from all national<br />
organizations receive advanced training and the opportunity<br />
to benefit from the experience of others in the<br />
areas of strategy, leadership, people management and<br />
change competence.<br />
Dialogue and networking among national organizations,<br />
departments and employees are actively<br />
pro mo ted on a sustained basis. That is the focus of<br />
numerous international events, such as the Leadership<br />
Forum 2007, at which 80 managers and executives<br />
from all national organizations gathered to explore<br />
and discuss leadership concepts and the organizational<br />
analysis conducted in advance of the Forum.<br />
One of the outgrowths of these activities was the<br />
Purpose process launched in <strong>2008</strong>, in the course of<br />
which we defined our company’s “common identity”.<br />
It was important to us to clearly identify what we<br />
stand for and articulate the values and convictions that<br />
form the foundation and the guiding principles of our<br />
actions. “It was overwhelming to see just how much<br />
we have in common – in spite of the existing cultural<br />
differences”. This response by one employee to the<br />
language of the <strong>Eckes</strong>-<strong>Granini</strong> Purpose reflected the<br />
feelings of many employees. This was a major step<br />
forward in our efforts to bring our ambitious goals<br />
and our strong emphasis on achievement closer to<br />
our employees at the emotional level. Thus the link<br />
between strategy and Purpose will contribute significantly<br />
to successful realization of our Vision 2010.
Pride in performance and success<br />
We truly believe that people make the difference.<br />
The performance potential of our employees is the<br />
key success factor – their knowledge and experience,<br />
their creativity and innovative drive, their fl exibility<br />
and agility, their motivation and the commitment to<br />
creating values and meeting the challenges of the<br />
future. The interplay between the demands a company<br />
places on its employees and the support it gives<br />
them, between inspiration and shared identity, makes<br />
<strong>Eckes</strong>-<strong>Granini</strong> a successful company and an attractive<br />
employer. Pride in performance and success leads to<br />
heightened productiveness and effi ciency in the work<br />
process. We want to move forward, rather than stand<br />
still, and thus we regard it as the company’s obligation<br />
to do everything in its power to enable employees to<br />
develop and apply their full potential.<br />
Modern health management involves a holistic approach<br />
to health, well-being and the capacity to perform,<br />
and applies it to the context of the workplace.<br />
It is also important to promote heightened health-consciousness<br />
among employees and enable them to deal<br />
with a constantly changing working environment.<br />
Taking employee responsibility seriously<br />
Responsibility for performance and the quality of life<br />
and work is an important aspect of corporate culture.<br />
That is why the Health Management project was<br />
established as a transnational, long-term programme.<br />
Employees are actively and constructively involved. The<br />
fi rst step will be to conduct an anonymous employee<br />
survey in cooperation with a university that plays a<br />
leading role in research in this fi eld in order to assess<br />
the workplace environment and develop a complete<br />
picture of the current situation within the organization<br />
as a whole. On the basis of these fi ndings, effective<br />
measures can then be developed and implemented on<br />
a systematic, country-by-country basis.<br />
There is much that can be said about the culture and<br />
the people in a business enterprise. An authentic<br />
picture is conveyed, however, only if the employees<br />
themselves are allowed to express their views. On the<br />
following pages, colleagues from different national<br />
organizations, departments and positions, people who<br />
have served the company for many years and are well<br />
acquainted with it, and people who have just recently<br />
joined the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> offer their impressions.<br />
People at <strong>Eckes</strong>-<strong>Granini</strong><br />
16
| We bring the best of fruit for a healthy<br />
and enjoyable life. |<br />
| Our Beliefs |<br />
The consumer is at the heart of all we do.<br />
Offering healthy and natural fruit beverages of superior quality.<br />
The power of granini combined with local hero brands.<br />
The magic of our brands.<br />
People make the difference.<br />
Diversity and cross-pollination make us smarter.<br />
There is no performance without fun.<br />
Always improving the quality in all we do.<br />
Building business for the long term to secure our independence.<br />
People at <strong>Eckes</strong>-<strong>Granini</strong><br />
17
18 Menschen bei <strong>Eckes</strong>-<strong>Granini</strong>
| Employees in dialogue |<br />
The following people described their thoughts:<br />
(The original interview was conducted in English.)<br />
Sabine Holtkamp, <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>,<br />
Senior Vice President HR & OD, with the company<br />
for over 19 years.<br />
Sabine Vorberg, <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>,<br />
Director HR & OD, on the Human Resources staff<br />
for nine years, previously in Marketing for<br />
<strong>Eckes</strong>-<strong>Granini</strong> Deutschland.<br />
Alexis Saric, <strong>Eckes</strong>-<strong>Granini</strong> France,<br />
Director key Account Management, with the<br />
company for eight years.<br />
Heinrich Prinz Reuss, <strong>Eckes</strong>-<strong>Granini</strong> Germany,<br />
Director Legal Affairs & Trademarks, joined<br />
<strong>Eckes</strong>-<strong>Granini</strong> in April 2007.<br />
Jarek Kluszczynski, <strong>Eckes</strong>-<strong>Granini</strong> Austria,<br />
Chief Financial Offi cer for nearly three years,<br />
previously Finance Controller at the Polish<br />
subsidiary of <strong>Eckes</strong>-<strong>Granini</strong>.<br />
Pascal Philipp, <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>,<br />
Managing Director Export, previously Chief<br />
Financial Offi cer at <strong>Eckes</strong>-<strong>Granini</strong> Germany, then<br />
Director International Business Development/Sales<br />
Retail at <strong>Eckes</strong>-<strong>Granini</strong> Germany, nine years of<br />
service with the company.<br />
A SENSE OF BEING PART OF A WHOLE THAT kNOWS NO NATIONAL BOUNDARIES<br />
What is Purpose?<br />
Pascal Philipp: The Purpose initiative was a good<br />
way to defi ne common ideas and values held at<br />
<strong>Eckes</strong>-<strong>Granini</strong>, since the company has grown through<br />
acquisitions and we have had to integrate many different<br />
corporate cultures into one. At <strong>Eckes</strong>-<strong>Granini</strong>,<br />
employees retain their cultural background, but we<br />
share common ideas.<br />
Sabine Holtkamp: I think it’s very important for a<br />
company to emphasize values – values for shareholders<br />
and employees alike. What our company needs is result<br />
and goal orientation, on the one hand, and people who<br />
have social competence and emotional intelligence, on<br />
the other. Our Purpose encompasses both.<br />
What was your experience during the rollout<br />
stage of Purpose?<br />
Sabine Vorberg: Two years ago we performed an<br />
organizational analysis in which about 150 employees<br />
provided feedback about our corporate strategy and<br />
vision. We asked whether we were on track or needed<br />
to make adjustments in some areas. We presented the<br />
results at the Leadership Forum. One manager stood<br />
up and said, “For me, the strategy is very clear, the<br />
company is on track. But we are missing the emotional<br />
dimension. It is not all about facts and fi gures. There’s<br />
something in the company that you can feel. There<br />
are common beliefs and ideas.” We decided that we<br />
needed to give more concrete shape to our common<br />
beliefs and defi ne the <strong>Eckes</strong>-<strong>Granini</strong> spirit behind the<br />
facts and fi gures.<br />
People at <strong>Eckes</strong>-<strong>Granini</strong><br />
19
Alexis Saric: Let’s put it this way: a lot of companies<br />
are able to sell juice, but only we are able to create<br />
such emotional brands and generate such feeling for<br />
the consumer. That’s because of the people behind<br />
the brands. That’s one of our common beliefs – people<br />
make the difference.<br />
Jarek Kluszczynski: I think it’s really important for<br />
people to believe in the vision and understand how<br />
important it is when it comes to steering the company<br />
in the right direction. My friends asked me about<br />
the project because I kept talking about purpose,<br />
purpose, purpose, and they said I sounded like a<br />
door-to-door salesman. But I find it much easier to<br />
make management decisions now that I understand<br />
our Purpose.<br />
How has the Purpose impacted on people in<br />
the company?<br />
Heinrich Prinz Reuss: People think about their<br />
behaviour and their thoughts and whether they are in<br />
line with the Purpose. There’s a new basis for action.<br />
The Purpose is a new benchmark for the company.<br />
Jarek Kluszczynski: Purpose is an ongoing project,<br />
which guides us in many different ways and which<br />
influences us in our daily thoughts and actions. Our<br />
Purpose is our guiding principle. It will definitely influence<br />
product decisions, for example.<br />
This discussion about creating the right working<br />
environment for employees brings up another<br />
question. What was your first impression of<br />
<strong>Eckes</strong>-<strong>Granini</strong>?<br />
Heinrich Prinz Reuss: I was asked to attend the<br />
business kick-off meeting at the beginning of 2007<br />
before starting my job. It was held at a hotel. I arrived<br />
in the evening after dinner. Everybody was standing<br />
around in the bar. They were in a good mood. They<br />
were talking and telling stories. My first impression<br />
was, “This is a family.” It was an honest picture they<br />
presented to me. I don’t think that 150 people staged<br />
this special scene for me.<br />
Alexis Saric: The people at <strong>Eckes</strong>-<strong>Granini</strong> are all<br />
highly engaged. They work with a sense of conviction,<br />
they’re experts and they feel responsible. You<br />
can have controversial discussions. But the goal<br />
remains to do what is best for the business.
What are other reasons why you enjoy<br />
working for <strong>Eckes</strong>-<strong>Granini</strong>?<br />
Sabine Vorberg: We have a lot of freedom and<br />
space we can fi ll at <strong>Eckes</strong>-<strong>Granini</strong>. At one of my<br />
former companies, I got a thick book of rules and<br />
regulations on my fi rst day. Here at <strong>Eckes</strong>-<strong>Granini</strong>,<br />
you’re likely to get a long list of partners to talk<br />
to. The career paths inside the company are very<br />
individual. You can develop from one department<br />
to another, and employees always have a chance to<br />
bring their own ideas to the table. We have a fl at<br />
hierarchy and our CEO also keeps an open door.<br />
You are all talking about what makes <strong>Eckes</strong>-<br />
<strong>Granini</strong> different. Any more observations?<br />
Sabine Holtkamp: Being a family-owned company<br />
is a big advantage. We are able to plan for the<br />
long-term and we have very good managers with<br />
a lot of experience, just like the big companies. But<br />
we also have fl at hierarchies, we give responsibility<br />
to our managers and we are good at taking quick<br />
decisions.<br />
Heinrich Prinz Reuss: People are very down to<br />
earth, very pragmatic. They are very honest and<br />
very normal. In other companies, there’s a clear<br />
hierarchy and you have to ask someone for permission<br />
before you can, let’s say, open a door.<br />
At <strong>Eckes</strong>-<strong>Granini</strong>, you just open the door.<br />
Jarek Kluszczynski: We’re a very cooperative and<br />
team-oriented company. The diversity in the company<br />
comes together nicely. We all feel that we are part<br />
of something bigger. You also have opportunities<br />
to meet with your colleagues in an informal way. I<br />
wouldn’t say that at <strong>Eckes</strong>-<strong>Granini</strong> you have to get<br />
together with your colleagues outside of work, but<br />
you can.
22 People at <strong>Eckes</strong>-<strong>Granini</strong><br />
But what is it that really makes <strong>Eckes</strong>-<strong>Granini</strong><br />
different?<br />
Heinrich Prinz Reuss: I think it’s our diversity. We<br />
have Spanish colleagues, we have Finnish colleagues.<br />
If you can see how your colleagues in another country<br />
approach a problem you face, then you have the<br />
chance to learn from them, to act in a different way<br />
than you would if you hadn’t been exposed to the<br />
idea.<br />
Jarek Kluszczynski: One word expresses it well:<br />
entrepreneur. People think about the company as if<br />
it were their own.<br />
Pascal Philipp: The structure of the company allows<br />
people to try new things. If you see something that<br />
can be changed for the better, you can offer your suggestion.<br />
At the end of the day, you may have some<br />
discussion about it, but basically you have the chance<br />
to present your ideas.<br />
What does “People make the difference”<br />
mean to you?<br />
Pascal Philipp: People are solution-oriented. They<br />
don’t waste time looking around for someone to<br />
blame if something goes wrong.<br />
Sabine Vorberg: For me, “People make the difference”<br />
means we open up fresh dimensions together,<br />
as it is written in the Purpose. This doesn’t just<br />
describe our approach to projects but how we work<br />
together, how we cooperate. The focus is on the<br />
“together”. We involve our people and are open to<br />
new ideas and ways of doing things. The company<br />
is made up of many brands and identities, but it all<br />
comes together in one company in which people<br />
think internationally.<br />
In other words, our hearts are local, and our souls are<br />
international.
Menschen bei <strong>Eckes</strong>-<strong>Granini</strong><br />
19
24 Our Countries / Overview<br />
The <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> is represented by national<br />
organizations in 14 European countries. We also<br />
export our products to over 70 countries around the<br />
world. More than one-third of our turnover is still<br />
generated in our home market of Germany, while<br />
foreign markets account for the remaining two-thirds.<br />
Together with our employees, our internationally<br />
renowned premium brand granini and strong<br />
local brands, known as “local heroes”, including<br />
hohes C, Joker, SIÓ and Marli, are the foundation<br />
of our business.<br />
Germany France Spain Finland Hungary<br />
Switzerland Austria Sweden Denmark<br />
Lithuania Estonia Latvia Romania Norway<br />
| The national organizations<br />
of the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> |<br />
DIVERSITY AND MUTUAL INSPIRATION ENABLE US TO PURSUE NEW DIRECTIONS<br />
Diversity and mutual inspiration enable us to pursue<br />
new directions. We benefit day in and day out from<br />
the cultural diversity and the wide-ranging experience<br />
of our colleagues.<br />
We work as a team, within and beyond national and<br />
departmental boundaries, to achieve synergy effects<br />
that will benefit us all. Together, we pursue our objectives<br />
with ambition, courage and entrepreneurial spirit.<br />
“Growing together to grow closer together” is the<br />
principle that guides us in our teamwork as we strive<br />
to take advantage of our opportunities in Europe.
Country Strategic brands Value-based market share * Market position<br />
Germany** hohes C, granini, FruchtTiger 14.0 % 1<br />
France Joker, granini 12.2 % 2<br />
Spain** granini 9.0 % 3<br />
Finland Marli, Mehukatti, granini n.a. 1<br />
Hungary SIÓ, hohes C 26.4 % 1<br />
Switzerland granini, hohes C 9.9 % 1<br />
Austria YO Sirup, hohes C, FruchtTiger 9.6 % 2<br />
Sweden** Brämhults, granini 8.3 % 3<br />
Denmark Valsølille 4.0 % 3<br />
Lithuania** Elmenhorster, granini 18.1 % 1<br />
Estonia Marli, granini, Elmenhorster developing market developing market<br />
Latvia Marli, granini, Elmenhorster developing market developing market<br />
Romania granini developing market developing market<br />
Norway Brämhults, granini developing market developing market<br />
| * Source: Leading market research institutes, base: value sales retail food trade<br />
| ** New data base: Reference figure for 2007: Germany: 13.7 % (inclusive hohes C Naturelle), Spain: 9.6 %, Sweden: 8.5 %, Lithuania: 21.3 %<br />
Germany<br />
36.5 %<br />
Relative contributions<br />
of domestic/foreign turnover to total turnover<br />
in <strong>2008</strong> * (rounded figures)<br />
International<br />
63.5 %<br />
| * Base: Core business (fruit beverages)<br />
Relative contributions<br />
of individual national organizations to total<br />
turnover in <strong>2008</strong> ** (rounded figures)<br />
France<br />
Export and<br />
35 %<br />
other turnover 13 %<br />
Spain 12 %<br />
Finland 11 %<br />
Hungary 7 %<br />
Switzerland 7 %<br />
Scandinavia 5 %<br />
Austria 5 %<br />
Baltic States 3 %<br />
Romania 2 %<br />
| ** Basis: Total turnover in the core business (fruit beverages)<br />
Our Countries / Overview<br />
25
26 Germany<br />
“ Our<br />
products are healthy<br />
and authentic,<br />
and I’m proud of that.<br />
Daniela May<br />
”<br />
| Germany |<br />
ECkES-GRANINI DEUTSCHLAND GMBH:<br />
CONTINUED SUCCESS FOR THE MARkET LEADER<br />
The German non-alcoholic beverage market showed<br />
slight gains in both volume sales and value sales<br />
in <strong>2008</strong>. Water-plus products achieved particularly<br />
strong growth. The marked trend toward non-returnable<br />
packaging units continued.<br />
In contrast, the fruit beverage market experienced<br />
another difficult year. Overall, volume sales declined<br />
by 4.1 % – due to price increases during the first two<br />
quarters. Value sales rose by 4.7 % despite a downward<br />
trend toward the end of the year. Growth in<br />
the smoothie segment slowed significantly over<br />
the course of the year. *<br />
Once again, <strong>Eckes</strong>-<strong>Granini</strong> Deutschland GmbH asserted<br />
its strength in a difficult overall market situation<br />
and achieved good growth. The German market<br />
leader in fruit beverages recorded a turnover gain of<br />
nearly 6 % and extended its lead with a value-based<br />
market share of 14 % (2007: 13.7 %). *<br />
This positive trend was driven by the basic portfolio<br />
and by new products. By establishing its strategic<br />
brands in new product categories, <strong>Eckes</strong>-<strong>Granini</strong><br />
Deutschland laid the foundation for future growth.<br />
One key growth driver was the hohes C brand. Both<br />
the classic fruit juice range – which clearly surpassed<br />
the 200-million-litre mark in volume sales for the<br />
first time – and the hohes C Naturelle water-plus line<br />
introduced in 2007 contributed significantly to the<br />
overall results. Following strong gains in 2006 and<br />
2007, the granini brand fell slightly short of expectations<br />
in <strong>2008</strong>.<br />
The hohes C Naturelle sub-range launched in 2007<br />
proved its value as a sustainable innovation during<br />
the past business year. With this unique thirst-quen ching<br />
combination of natural, non-carbonated mineral<br />
wa ter and pure juice, <strong>Eckes</strong>-<strong>Granini</strong> Deutschland<br />
succeeded impressively in positioning itself as the<br />
third-largest supplier in the water-plus segment. The<br />
Apple-Pear variety added to the line in March <strong>2008</strong><br />
at tracted new consumer groups to the hohes C brand.<br />
The launch of the new hohes C Mild Multivitamin<br />
juice was a complete success. With the new product<br />
and the Mild Orange and Mild Apple varieties, hohes<br />
C clearly dominates the growing “mild juice” segment<br />
with a market share of 55 %.
The launch of the Apple-Cranberry variety represented<br />
a timely addition to the granini range and a key<br />
innovation in keeping with the trend toward red<br />
fruit beverages. That applies as well to the Cranberry<br />
Spritzer, which was developed exclusively for the outof-home<br />
sector and provided new impulses to strong<br />
sales of beverages in 0.2-litre table bottles.<br />
Under the influence of weak growth performance of<br />
the smoothie market, however, the granini Fruchtgenuss<br />
Smoothie failed to meet expectations.<br />
The company established a completely new category<br />
with the fruit snacks introduced to the FruchtTiger<br />
line for children. Now available in three varieties –<br />
Apple-Banana-Strawberry, Multi-Fruit and Apple-<br />
Cherry-Banana – the new product concept has<br />
be come very popular among consumers. Made from<br />
100 % fruit, the FruchtTiger fruit snack is an attractive<br />
alternative as a healthy between-meal treat – and the<br />
perfect solution for kids on the go in the convenient<br />
pouch pack.<br />
Despite the general stagnating trend in out-of-home<br />
consumption, <strong>Eckes</strong>-<strong>Granini</strong> made good gains in<br />
this sector as well. The granini brand extended its<br />
market lead.<br />
In addition to broad-based support for all brands<br />
through media campaigns in all relevant channels<br />
(print, TV, etc.) and attractive POS activities, advertising<br />
activities in <strong>2008</strong> were focused on hohes C<br />
Naturelle and a new TV commercial for the hohes C<br />
juice range.<br />
With the installation of a second PET filling line and<br />
the successful upgrade of the water-treatment system,<br />
the company has equipped the Bröl production<br />
plant to meet the challenges of the future. Comprehensive<br />
measures were undertaken to maintain and<br />
expand the company’s key expertise in the field of<br />
cold-aseptic filling.<br />
Fittingly celebrated with a big party for employees<br />
and a promotional campaign in the retail trade, the<br />
50th birthday of the hohes C brand was truly a milestone<br />
occasion. hohes C – a genuine brand classic –<br />
has been synonymous with healthy orange juice for<br />
half a century. With its superior quality and unique<br />
position as a vitamin C supplier for the whole family,<br />
hohes C was a success from the outset and has<br />
retained its clear market lead ever since.<br />
In 2009 the company plans to focus on strengthening<br />
its portfolio of refreshing, thirst-quenching beverages<br />
with hohes C Naturelle and granini Fruit Prickler, while<br />
expanding the new “fruit snack” category under the<br />
FruchtTiger line of children’s products. Core business<br />
will also remain a focal point of marketing investments<br />
in 2009.<br />
| * Market data for the retail food trade, incl. hohes C Naturelle<br />
Germany<br />
27
28 France<br />
“ Passion<br />
for our job<br />
is what drives us.<br />
Marc Bândelier<br />
”<br />
| France |<br />
ECkES-GRANINI FRANCE SNC:<br />
REORGANIzATION LAYS THE FOUNDATION<br />
FOR FUTURE SUCCESS<br />
The French fruit beverage market was characterized<br />
by stagnant volume sales and value sales growth<br />
of 5 % in <strong>2008</strong>. However, a downward trend was<br />
noted toward the end of the year. The general economic<br />
recession has now begun to affect fruit juice<br />
consump tion as well, and the higher-priced chilled<br />
juice seg ment has been particularly hard hit. This<br />
trend has been accompanied by strong growth in<br />
sales of trade labels, which now hold a 47 % valuebased<br />
market share, as well as declining demand for<br />
branded products. *<br />
In spite of this problematic market situation,<br />
<strong>Eckes</strong>-<strong>Granini</strong> France succeeded in positioning itself<br />
for future success with its strategic brands during<br />
the past business year. Following the sale of trade<br />
label operations in April <strong>2008</strong>, total turnover declined<br />
as expected, while turnover from sales of branded<br />
products rose by 2.5 %.<br />
The most powerful growth driver is Joker, which<br />
benefited from the sustained success of its “100 %<br />
Pur Jus” premium segment and the strong performance<br />
of the unique “Le Fruit” Ovaline carton line.<br />
The brand was also strengthened by the introduction<br />
of two new “Vital Bienfaits“ varieties, which were<br />
among the best innovations in the ambient fruit<br />
juice market in <strong>2008</strong>.<br />
In support of Joker, the company launched the new<br />
“Obsession Quality” TV advertising campaign, which<br />
emphasized the brand’s role as quality leader. The<br />
new claim “Life in every glass“ underscores Joker’s<br />
position as a healthy fruit juice brand.<br />
As expected, <strong>Eckes</strong>-<strong>Granini</strong> France recorded lower<br />
overall volume sales in the out-of-home sector, primarily<br />
as the result of the decision to discontinue certain<br />
unprofitable business operations. The strategic focus<br />
on the granini brand in the out-of-home sector enabled<br />
the company to strengthen the brand’s presence<br />
while stimulating growth significantly, particularly in<br />
the greater Paris area.
A major focus for <strong>Eckes</strong>-<strong>Granini</strong> France in <strong>2008</strong> was<br />
the corporate restructuring process. As previously<br />
announced in the autumn of 2007, the company divested<br />
itself of its trade label operations in Sarre-Union<br />
(Alsace) in April. The new owner is Laiterie de Saint<br />
Denis de l’Hôtel (LSDH). This move enables the French<br />
national organization – in keeping with the strategic<br />
orientation adopted by the entire <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong><br />
– to focus on its strong brands and the production<br />
facility in Mâcon in support of the goal of achieving<br />
sustainable, long-term growth in company value.<br />
Within the context of the reorganization of business<br />
operations, a new sales offi ce was opened in Paris<br />
and the Purchasing and Research & Development<br />
Departments were consolidated in Mâcon. Management<br />
and administrative departments have remained<br />
in Sarre-Union as planned. The company has hired<br />
more than 30 new employees in order to fi ll existing<br />
vacancies and strengthen its business competence in<br />
general. Furthermore, the fi rst steps in the implementation<br />
of an extensive three-year investment<br />
plan were taken at the Mâcon facility. The objectives<br />
are to increase capacities and effi ciency, to achieve<br />
further improvements in product quality and to mo dernize<br />
the plant in the interests of establishing better<br />
working conditions.<br />
Having successfully realized a number of restruc turing<br />
measures during the course of the past year, the<br />
“new” <strong>Eckes</strong>-<strong>Granini</strong> France is now ideally equipped<br />
to meet current and future challenges in the market.<br />
The company has not only established an excellent<br />
position with fresh ideas and programmes in support<br />
of its brands, but has also enhanced its strength in all<br />
major departments – including Sales, Supply Chain<br />
and Finance – in terms of both personnel and organizational<br />
competence, in anticipation of future market<br />
developments.<br />
| * Market data for the retail food trade<br />
France<br />
29
30 Austria<br />
“ Why I’m glad to be working<br />
for <strong>Eckes</strong>-<strong>Granini</strong>? The answer is simple:<br />
we’ve got great brands,<br />
and I’m part of a wonderful family.<br />
Silke Goos-Pernecker<br />
”<br />
| Austria |<br />
ECkES-GRANINI AUSTRIA GMBH:<br />
FOCUS ON STRATEGIC BRANDS PAYS OFF<br />
Despite a 3.7 % decline in volume sales, the Austrian<br />
fruit beverage market recorded 8.3 % increase in value<br />
sales in <strong>2008</strong>, driven primarily by higher consumer<br />
prices. Although volume sales in the Austrian syrup<br />
market stagnated, value sales were up slightly compared<br />
to 2007. *<br />
<strong>Eckes</strong>-<strong>Granini</strong> Austria GmbH held its position in the<br />
fruit beverage market with a value-based market share<br />
of 9.6 %, while extending its lead in the syrup segment<br />
with 30.3 % value-based market share. *<br />
Total volume sales by <strong>Eckes</strong>-<strong>Granini</strong> Austria fell slightly<br />
below the 2007 fi gure, due above all to the planned<br />
decline in sales of tactical brands. The company’s<br />
focus on strategic brands – hohes C, YO Syrup and<br />
FruchtTiger – paid off, however.<br />
The conversion from glass to PET bottles for hohes C<br />
initiated in June 2007 was successfully established in<br />
the market.<br />
Achieving the highest rate of growth in the market as<br />
a whole (+ 7 %), hohes C showed impressive strength<br />
in the face of the overall downward trend. The hohes C<br />
1-litre PET range was fi rmly established with the support<br />
of an effective TV marketing campaign.<br />
JetZt neu<br />
An important factor in this positive development<br />
was the launch of hohes C Mild Multivitamin, which<br />
contributed signifi cantly to further growth for the<br />
basic range.<br />
Nur die<br />
fruchtigsten<br />
Früchte<br />
Sales of the popular FruchtTiger children’s brand continued<br />
to increase, thanks largely to the success of the<br />
0.5-litre PET bottle. The launch of the FruchtTiger fruit<br />
snack in the Apple-Banana-Strawberry and Multivitamin<br />
varieties contributed to overall brand value growth,<br />
while underscoring and enhancing the brand’s popularity<br />
and innovative strength. Produced from 100 % fruit,<br />
the FruchtTiger fruit snack offers a convenient source<br />
of fruit as a between-meal treat. The practical squeeze<br />
pack fi ts in every pocket.<br />
With new listings and a larger market share, YO Syrup<br />
established itself as the unrivalled leader in the Austrian<br />
syrup market during the past year. The two new Apple<br />
and Pear varieties contributed signifi cantly to continued<br />
growth for the brand and provided substantial support<br />
for the syrup range as a whole.<br />
TV and radio commercials attracted considerable<br />
attention to the YO Syrup brand in <strong>2008</strong>. With its<br />
slogan “Only the fruitiest fruits”, <strong>Eckes</strong>-<strong>Granini</strong> Austria<br />
underscored the brand’s expertise in the fi eld of fruit<br />
products and strengthened its unique, emotional<br />
market position. Further impulses of YO Syrup will be<br />
generated in support of long-term success and continued<br />
growth in 2009.<br />
| * Market data for the retail food trade
“<br />
I feel proud to work<br />
for <strong>Eckes</strong>-<strong>Granini</strong> –<br />
a leading European<br />
fruit beverages company.<br />
Vidas Komparskas<br />
| Baltic States |<br />
UAB ELMENHORSTER VILNIUS * :<br />
”<br />
MARkET LEAD IN LITHUANIA MAINTAINED<br />
Volume sales remained stable overall in the Lithuanian<br />
fruit beverage market in <strong>2008</strong>, despite a significant<br />
decline toward the end of the year (-13 %). The value<br />
of sales rose by 9.8 %, however. **<br />
UAB Elmenhorster Vilnius * held its market lead in this<br />
business environment with a value-based market share<br />
of 18.1 % ** despite market share losses during the<br />
first six months of <strong>2008</strong>.<br />
The installation of a 1.0-litre Tetra Prisma carton filling<br />
line and a 2.0-litre SIG Combiblock line now enable<br />
the production facility in Vilnius to keep pace with<br />
current market developments.<br />
The product portfolio of the Elmenhorster brand was<br />
extended and optimized through the addition of new,<br />
attractive varieties. The company opened the year<br />
<strong>2008</strong> with a relaunch of the 1.0-litre basic range in<br />
the new Tetra Prisma carton and a new design. Two<br />
new varieties – cherry and grapefruit – were also<br />
introduced during the year.<br />
Sustained advertising support focused largely on<br />
TV commercials was provided primarily for the<br />
Elmenhorster basic range.<br />
Estonia and Latvia: Substantial growth<br />
The strong growth trend of the preceding year in the<br />
overall market for fruit beverages came to an end in<br />
Estonia as well – the result of volume declines toward<br />
the end of <strong>2008</strong>.<br />
The national organizations managed by <strong>Eckes</strong>-<strong>Granini</strong><br />
Nordic recorded solid double-digit volume sales gains.<br />
This provided the foundation for a marked improvement<br />
in value-based market share in Estonia to 8.4 % ** .<br />
The most important growth driver in Estonia was the<br />
Marli brand. The 2.0-litre carton, the most popular<br />
packaging unit, appeared in a new design, and a new<br />
1.0-litre range in cartons was introduced during the<br />
year. The Marli brand also received advertising support<br />
in <strong>2008</strong>.<br />
The positive performance trend in Latvia was driven<br />
primarily by the Elmenhorster brand, which recorded<br />
significant growth.<br />
| * UAB Elmenhorster Vilnius was officially renamed UAB<br />
<strong>Eckes</strong>-<strong>Granini</strong> Lietuva effective March 19, 2009.<br />
| ** Market data for the retail food trade<br />
Baltic States<br />
31
32 Finland<br />
“ Authentic in the way<br />
we act and behave,<br />
with heart and soul.<br />
Essi Jokisipilä<br />
”<br />
| Finland |<br />
OY MARLI AB * :<br />
SUCCESS WITH INNOVATIVE CONCEPTS<br />
Over the course of the year <strong>2008</strong> – and particularly<br />
during the last quarter – fruit beverage consumption<br />
began to shift toward the lower-priced segments as<br />
consumers reacted to the troubled economic situation.<br />
Total volume sales by Oy Marli Ab * fell short of last<br />
year’s level, due to the planned decline in sales of tactical<br />
brands, while strategic brands continued to perform<br />
well. Marli and granini were the leading growth<br />
drivers, as both brands recorded 5 % volume gains<br />
and achieved equivalent turnover gains. Supported by<br />
a 36 % increase in market investments, Oy Marli Ab *<br />
succeeded in maintaining its dominant position.<br />
One important innovation in <strong>2008</strong> was the launch of<br />
the new Marli kupliva line, a combination of carbonated<br />
spring water and fruit juice that was introduced<br />
to the highly competitive carbonated refreshment<br />
beverage segment in the spring. Both the concept<br />
and the taste of the new product were well received<br />
by consumers. Distribution is to be expanded with the<br />
support of various promotional measures, including<br />
tasting offers.<br />
A second product launch followed in the autumn with<br />
the introduction of Marli Vital Protect. The distinctive<br />
feature of this product is a special combination of<br />
different berries that are naturally rich in antioxidants<br />
(protect cells against ageing), which makes it particularly<br />
appealing to health-conscious consumers. The<br />
launch progressed with very promising results.<br />
The response to the new granini Fruit Moment concept<br />
was equally positive. The product was introduced<br />
to the rapidly growing chilled smoothies segment.<br />
Product launches were supported in <strong>2008</strong> by broadreach<br />
advertising campaigns that attracted considerable<br />
attention. Both Mehukatti and Marli defended<br />
their positions as the best-known brands in the fruit<br />
beverage category in Finland.<br />
key investments in <strong>2008</strong> included the installation of<br />
a second carton filling line.<br />
Oy Marli Ab * will continue to develop its strong<br />
market position with innovative concepts in 2009 as<br />
well. New impulses for the currently declining syrup<br />
market are expected from the Marli Natural Syrup<br />
line, which offers such distinctive features as high fruit<br />
content, no preservatives and environmentally friendly,<br />
recyclable carton packaging. As a totally new product<br />
concept, the new Mehukatti Fruit Snacks made of<br />
100 % fruit offer a healthy, convenient alternative for<br />
between-meal treats.<br />
| * Effective February 1, 2009, Oy Marli Ab was renamed as<br />
<strong>Eckes</strong>-<strong>Granini</strong> Finland Oy Ab.
The attitude and leadership style<br />
“ that prevail at our company<br />
enable us to be open-minded.<br />
János Barna<br />
| Hungary |<br />
SIÓ-ECkES kFT.:<br />
POSITIVE IMPULSES FOR SIÒ<br />
”<br />
Volume sales in the Hungarian fruit beverage market<br />
fell by 4.3 % in <strong>2008</strong>, while value sales rose slightly<br />
by 1 %. The recession, accompanied by declining real<br />
income and rising inflation, confronted the business<br />
community with major challenges. The global<br />
economic crisis also impacted on the market for fruit<br />
beverages, leading in turn to increasingly aggressive<br />
competition among suppliers. *<br />
In the face of this difficult business climate and<br />
despite a slight downward trend in volume sales, SIÒ-<br />
ECkES succeeded in strengthening its clear number 1<br />
position with a value-based market share of 26.4 %. *<br />
The strategic brands SIÓ and hohes C are the market<br />
leaders in their respective segments.<br />
Two new varieties – Pear and Multivitamin – were<br />
added to the SIÓ premium range in <strong>2008</strong>. Positive<br />
impulses for the SIÓ brand were also generated by<br />
the SIÓ fresh & fruit range of non-carbonated refreshment<br />
beverages, which contributed significantly to<br />
overall growth with a 16 % gain in volume sales.<br />
The launch of SIÓ VitaTigris fruit snacks also played<br />
an important role in the good overall performance.<br />
A 100 % fruit product sold in the practical resealable<br />
squeeze pack, this delicious, fruity snack is perfect for<br />
people on the go. SIÓ-ECkES has established a new<br />
product category in the Hungarian market with this<br />
innovative concept. The SIÓ könny és zamatos (Light<br />
and Delicious) line appeared in a new packaging<br />
design and was also extended through the add ition of<br />
new flavour varieties.<br />
The hohes C range of Mild Juices was successfully<br />
extended with the launch of the Mild Multivitamin<br />
variety.<br />
Advertising support was provided in <strong>2008</strong> for the SIÓ<br />
Premium, SIÓ VitaTigris fruit snack and SIÓ fresh &<br />
fruit brands as well as the hohes C range, with special<br />
emphasis on the new hohes C Mild Multivitamin juice.<br />
In <strong>2008</strong>, SIÓ-ECkES initiated the “köszönjük, SIÓ!”<br />
project, a children’s aid programme for needy families<br />
with school-age children, who were equipped with<br />
school bags.<br />
The partnership with Szentkirályi, a leading mineral<br />
water brand, was successfully continued in <strong>2008</strong>.<br />
SIÓ-ECkES strengthened its market position further<br />
through cooperation with the producer of the Bomba!<br />
energy drink. As market leader, SIÓ-ECkES will<br />
continue to generate fresh impulses for the Hungarian<br />
market with new products and initiatives in 2009.<br />
| * Market data for the retail food trade<br />
Hungary<br />
33
34 Romania<br />
“ We benefit every day<br />
from our cultural diversity and our<br />
wide-ranging experience.<br />
Elena Maracine<br />
”<br />
| Romania |<br />
ECkES-GRANINI ROMANIA S.R.L.:<br />
BREAkTHROUGH WITH GRANINI IN ROMANIA<br />
Driven by strong demand for juices and nectars, the<br />
value of sales in the Romanian fruit beverage market<br />
grew by about 4 %. *<br />
In cooperation with its strategic partner Carlsrom<br />
Beverage Co., <strong>Eckes</strong>-<strong>Granini</strong> Romania S.R.L. achieved<br />
a marked improvement in the market position of the<br />
granini brand in <strong>2008</strong>. With volume sales totalling<br />
16 million litres, the Romanian company reached a<br />
new dimension, while building granini’s value-based<br />
market share to 3.5 % during the past business year<br />
(2007: 1.1 %). *<br />
The launch of the granini Rãcoarea Fructelor noncarbonated<br />
refreshment beverage line played a<br />
crucial role in this positive development. Romanian<br />
consumers were impressed above all by the extraordinary<br />
fruitiness and the premium quality of the new<br />
product. It was introduced in 1.5-litre and 0.5-litre PET<br />
bottles in five refreshing varieties: Orange, Grapefruit,<br />
Apple-Black Currant, Lemon and Orange-Passion Fruit.<br />
The launch of this innovative line had a very positive<br />
impact in terms of brand recognition. The new product<br />
contributed significantly to the achievement of an<br />
impressive brand recognition rating of 58 %.<br />
Extensive advertising measures, including a TV campaign,<br />
product samples and consumer promotions in<br />
seven large cities, attracted considerable attention.<br />
The range of granini juices and nectars introduced to<br />
the Romanian market in 2006 also showed gratifying<br />
results in <strong>2008</strong>. The sustained success of the granini<br />
brand and its products is due in large measure to the<br />
effective expansion of the distribution network, with<br />
strong support from the sales force, and not least of<br />
all to the diverse, broad-based marketing programme<br />
involving consumer advertising via traditional media<br />
as well as POS activities.<br />
Another important event in <strong>2008</strong> was the successful<br />
commissioning of the cold-aseptic filling line at<br />
the Bucharest plant. A total of 12 million EUR were<br />
invested in this modern production line and in other<br />
measures as well.<br />
Plans for 2009 call for further expansion of the granini<br />
Rãcoarea Fructelor refreshment beverage range and<br />
the granini juice and nectar range with the introduction<br />
of new products and strong advertising support.<br />
| * Market data for the retail food trade
“ The feeling is<br />
as if we are one big family,<br />
where everyone works for everyone else<br />
and supports one another.<br />
Goran Mazalovic<br />
| Scandinavia |<br />
”<br />
ECkES-GRANINI SCANDINAVIA:<br />
SUBSTANTIAL INVESTMENTS IN THE PRODUCTION PLANT<br />
IN SUPPORT OF FURTHER BUSINESS ExPANSION<br />
Driven by the positive trend in demand for chilled fruit<br />
juices, the Swedish fruit beverage market recorded significant<br />
value growth (6.6 %) despite a 1.9 % decline<br />
in volume sales resulting from decreasing demand for<br />
non-chilled fruit beverages. Similar trends were evident<br />
in Norway and Denmark in <strong>2008</strong>. Scandinavian<br />
markets felt the impact of increasing competition, a<br />
large number of new product launches and a general<br />
drop in demand during the last quarter of <strong>2008</strong>. *<br />
Brämhults Juice AB maintained its position as the<br />
leading supplier of chilled premium fruit juices in the<br />
Swedish market during the past business year. The<br />
company ended the year with a value-based market<br />
share of 8.3 % in Sweden. The market share in Denmark<br />
was 4.0 %. *<br />
All of the <strong>Group</strong>’s Scandinavian organizations contri b-<br />
uted to growth in both turnover and volume sales.<br />
The strongest gains were recorded in Norway. Market<br />
growth is likely to slow in 2009, while Brämhults is<br />
expected to make further advances in the premium<br />
segment.<br />
The new premium Orange-Raspberry and Orange-<br />
Pineapple varieties introduced in the 1.0-litre range<br />
in the autumn of <strong>2008</strong> contributed significantly to<br />
these good results. Also offered for the first time in<br />
the larger bottle, Brämhults Carrot Juice quickly advanced<br />
to become one of the most popular vari eties<br />
in the 1.0-litre range. Other new product launches<br />
are planned in this premium segment in 2009. New<br />
smoothies varieties in 1.0-litre bottles are expected<br />
to stimulate further growth in this segment. The first<br />
new smoothies flavours (Black Currant-Apple and<br />
Carrot) were introduced in the autumn of <strong>2008</strong>.<br />
The Brämhults brand was supported by print ads<br />
and continuation of the successful below-the-line<br />
campaign designed to promote word-of-mouth<br />
advertising. The popularity and impact of these products<br />
were confirmed by two first prizes – one in the<br />
“Taste Sensations” category – awarded to Brämhults/<br />
Valsølille at the Food Expo, the largest food trade fair<br />
in Denmark, which focused on the theme of “healthy<br />
nutrition” in <strong>2008</strong>.<br />
Substantial investments were devoted to the expansion<br />
of production capacities and further improvements<br />
in efficiency and quality. These measures will<br />
be completed during the third quarter of 2009. The<br />
goal is to stimulate further business growth on a<br />
sustainable basis.<br />
| * Market data for the retail food trade<br />
Scandinavia<br />
35
36 Spain<br />
“ I am very proud<br />
of our brand granini.<br />
It has a magical aura<br />
and our consumers and<br />
clients love it.<br />
Santos Martinez<br />
| Spain |<br />
ECkES-GRANINI IBÉRICA S.A.:<br />
MARkET POSITION MAINTAINED<br />
IN A DIFFICULT COMPETITIVE ENVIRONMENT<br />
Although the Spanish fruit beverage market recorded<br />
slight volume growth overall in <strong>2008</strong>, sales declined<br />
signifi cantly during the last two quarters. The nonchilled<br />
fruit beverage segment – which accounted<br />
for 84 % of the total market – showed only a slight<br />
downward trend towards the end of the year. Volume<br />
sales of chilled fruit beverages declined more dramatically,<br />
as consumers responded to the troubled economic<br />
climate by choosing lower-priced products. *<br />
Sales of beverages in PET bottles rose markedly, accompanied<br />
by an appreciable decline in demand for<br />
glass bottles and stagnation in the cartoned beverage<br />
segment. *<br />
”<br />
Out-of-home consumption was also affected by<br />
the weak economy and exhibited a downward trend<br />
as well.<br />
<strong>Eckes</strong>-<strong>Granini</strong> Ibérica performed clearly better than<br />
most other brand suppliers in this extremely diffi cult<br />
market environment. The company held its position in<br />
the retail food trade with a value-based market share<br />
of 9.0 %, * while turnover in the out-of-home sector<br />
slumped along with the market as a whole.<br />
The 1.5-litre PET line in the basic granini portfolio<br />
achieved above-average results. The brand offered a<br />
new taste sensation with the newly introduced exotic<br />
granini “Fruit of the Year” – Orange-Pitahaya. The<br />
granini Smoothies range and the granini Fruta Fresca<br />
non-carbonated refreshment concept lagged behind<br />
expectations in <strong>2008</strong>.<br />
PET will be the major focus of activities at <strong>Eckes</strong>-<strong>Granini</strong><br />
Ibérica in 2009. The entire granini 1-litre glass range<br />
will be converted to the convenient PET bottle in the<br />
summer. A new fi lling line has been installed at the<br />
local facility of a strategic partner in order to ensure<br />
suffi cient production capacities. The company views<br />
this conversion as an important prerequisite for future<br />
growth. The process will be accompanied by the imple<br />
mentation of a modern production and logistics<br />
concept devoted to concentrating production locally<br />
in order to reduce logistics costs. The new logistics<br />
centre will enable the company to supply the retail<br />
food trade more effi ciently and effectively.<br />
| * Market data for the retail food trade
“<br />
For me it is<br />
especially rewarding to work<br />
with colleagues from<br />
different countries.<br />
Danielle Bloechle<br />
| Switzerland |<br />
”<br />
ECkES-GRANINI SUISSE S.A.:<br />
GRANINI AND HOHES C<br />
RENEWED VOLUME SALES GAINS<br />
The Swiss fruit beverage market recorded year-on-year<br />
gains in both volume sales (+ 3.6 %) and sales value<br />
(+ 6.0 %) in <strong>2008</strong>. Volume and sales value rose at<br />
double-digit rates in the chilled juice segment despite<br />
a substantial decline in the demand for smoothies. *<br />
<strong>Eckes</strong>-<strong>Granini</strong> Suisse S. A. achieved signifi cant volume<br />
sales and turnover growth, driven by the strategic<br />
brands granini and hohes C which increased their<br />
volume sales by 5 %. This positive trend was evident<br />
in both the retail food trade and the out-of-home<br />
sector. <strong>Eckes</strong>-<strong>Granini</strong> Suisse S. A. maintained its leading<br />
position in the Swiss fruit beverage market with a<br />
value-based market share of 9.9 %. *<br />
mont OP pronto:Mise en page 1 31.1.<strong>2008</strong> 10:37 Page 1<br />
Orange-<br />
Pitahaya<br />
The launch of the Pink Grapefruit-Orange, the third<br />
variety in the granini Frucht Prickler range, was a<br />
success. The range continued to perform well in the<br />
market, supported above all by a broad-based TV<br />
advertising campaign.<br />
Equally successful during the past year was the<br />
granini “Fruit of the Year” concept featuring the<br />
Orange-Pitahaya (dragon fruit) variety. This unique<br />
combination of sun-ripened oranges – the most<br />
popular fl avour in Switzerland – and the sweet-andsour<br />
taste of the aromatic tropical cactus fruit was a<br />
hit with consumers. Marketed with great success in<br />
Switzerland for the past ten years, the “Fruit of the<br />
Year” concept regularly offers new, unusual and<br />
surprising taste varieties that underscore the fruit<br />
expertise and versatility of the granini brand.<br />
In addition to extending the “Fruit of the Year”<br />
programme with the popular Orange-Pitahaya mix,<br />
the company plans to introduce hohes C in the Mild<br />
Orange and Multivitamin varieties in traditional 1-litre<br />
cartons in 2009. The extensive granini range will also<br />
be expanded once again through the addition of a<br />
Peach variety in 1-litre PET bottles.<br />
| * Market data for the retail food trade<br />
NEU<br />
na<br />
Rafraîchissant, naturel et si fruit<br />
nouveau<br />
Switzerland<br />
37
38 Export<br />
“<br />
Our objective for the future<br />
is to develop our network in order<br />
to get the most out of it.<br />
Pascal Philipp<br />
”<br />
| Export |<br />
BUSINESS UNIT ExPORT:<br />
RESULTS ExCEED ExPECTATIONS<br />
The export markets of interest to the <strong>Eckes</strong>-<strong>Granini</strong><br />
<strong>Group</strong> exhibited positive development during the<br />
past business year. The largest contributors to growth<br />
were premium brands and products in the Central<br />
European fruit beverage markets. Positive trends were<br />
also noted in the French Overseas regions and the<br />
African markets.<br />
Exports by the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> exceeded expectations<br />
with a 5 % gain in volume sales. The Business<br />
Unit Export made significant progress toward its objective<br />
of establishing sustainable, profitable business<br />
operations in the relevant export markets in <strong>2008</strong>.<br />
The focus on and investments in the premium brands<br />
granini and YO Syrup, coupled with improvements in<br />
market proximity, were key success factors.<br />
The appointment of local business managers in such<br />
important countries as the Czech Republic, Belgium<br />
and Russia also contributed to these positive developments.<br />
By filling these positions, the <strong>Group</strong> moved<br />
FAVORIT VAŠÍ RODINY<br />
NYNÍ I POMERANC<br />
JEN TO<br />
NEJOVOCNEJŠÍ<br />
OVOCE<br />
YO_clv.indd 1 10.3.<strong>2008</strong> 11:23:46<br />
closer to local markets and enhanced its ability to<br />
re spond effectively to individual market needs. Fur-<br />
thermore, the new business models resulted in higher<br />
turnover, which enables the <strong>Group</strong> to make investments<br />
in marketing. An international marketing expert<br />
appointed in <strong>2008</strong> is tasked with ensur ing sufficient<br />
integrated marketing support.<br />
The granini brand, the “export flagship” of the<br />
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong>, recorded good results with a<br />
5 % gain in volume sales. YO Syrup achieved 24 %<br />
growth, primarily in the Czech Republic and Slovakia.<br />
Supported by a large-scale media and promotional<br />
campaign, the new orange variety has now become<br />
one of the most popular flavours in the premium<br />
syrup market.<br />
The Réa brand defended its leading position in the<br />
French Overseas regions with a value-based market<br />
share of 10 %. Joker recorded dynamic growth in the<br />
same markets, driven above all by the demand for the<br />
unusual, distinctive Ovaline carton packaging format.<br />
The results of the first full business year following the<br />
introduction of the new business model will be recorded<br />
in Belgium, Russia, the Czech Republic and Slovakia<br />
at the end of business year 2009. With the support of<br />
the new local business managers and higher marketing<br />
budgets and investments, the <strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong><br />
expects to develop good prospects for sustained<br />
growth in the export business.
Export<br />
39
40 key Business Figures, Commentary<br />
| Key Business Figures |<br />
Profi t and loss statement (in million EUR) 2006 2007 <strong>2008</strong><br />
Volume sales in million litres 1,067.4 1,152.8 1,085.6<br />
Net sales before excise taxes 818.1 921.0 917.3<br />
Excise taxes 6.4 6.9 5.8<br />
Net sales after excise taxes 811.8 914.1 911.4<br />
Purchases - 480.4 - 574.5 - 541.3<br />
Personnel costs - 79.0 - 80.4 - 80.6<br />
Depreciation - 13.5 - 14.5 - 13.3<br />
Other expenses / income - 202.0 - 206.4 - 227.8<br />
Earnings before interest and taxes (EbIT) 37.0 38.3 48.4<br />
EbIT margin 4.6 % 4.2 % 5.3 %<br />
| Commentary |<br />
Profi t and loss statement<br />
Despite a diffi cult market environment the<br />
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> achieved good results once<br />
again in the past business year.<br />
While total volumes sales declined, the <strong>Group</strong><br />
recorded both volume (+ 1 %) and turnover (+ 4 %)<br />
gains in its core fruit beverage business following<br />
its withdrawal from the Russian market and the<br />
sale of trade label operations in France.<br />
Earnings (EbIT) rose signifi cantly to 48.4 million EUR<br />
despite turnover losses attributable to the troubled<br />
economic situation in the fourth quarter of <strong>2008</strong>.
Wesentliche kennzahlen, kurzerläuterungen<br />
39
42 Internet / Publishing Data<br />
| <strong>Eckes</strong>-<strong>Granini</strong> on the Internet |<br />
Corporate websites:<br />
www.eckes-granini.com<br />
National websites:<br />
www.eckes-granini.at<br />
www.eckes-granini.ch<br />
www.eckes-granini.de<br />
www.eckes-granini.es<br />
www.eckes-granini.fi<br />
www.eckes-granini.fr<br />
www.eckes-granini.hu<br />
www.egnordic.com<br />
www.bramhults.com<br />
www.bramhults.se<br />
www.bramhults.fi<br />
www.bramhults.no<br />
www.bramhults.dk<br />
www.elmenhorster.lt<br />
www.marli.ee<br />
www.marli.fi<br />
www.sioeckes.hu<br />
Brand websites:<br />
www.granini.com<br />
www.granini.com.ro<br />
www.granini.at<br />
www.granini.ch<br />
www.granini.de<br />
www.granini.es<br />
www.granini.fi<br />
www.granini.fr<br />
www.hohes-c.com<br />
www.hohes-c.at<br />
www.hohes-c.ch<br />
www.hohes-c.de<br />
www.hohes-c.hu<br />
www.bramhults.com<br />
www.elmenhorster.lt<br />
www.fruchttiger.at<br />
www.fruchttiger.de<br />
www.joker.fr<br />
www.marli.fi<br />
www.mehukatti.com<br />
www.rea.fr<br />
www.sio-juice.hu<br />
www.valsølille.dk<br />
www.yofruchtsirup.at
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> GmbH AnnuAl rEport <strong>2008</strong>
| Publishing Data |<br />
Publisher<br />
<strong>Eckes</strong>-<strong>Granini</strong> <strong>Group</strong> GmbH<br />
Main Office<br />
Ludwig-<strong>Eckes</strong>-Allee 6<br />
55268 Nieder-Olm, Deutschland<br />
Telephone: +49 (0) 61 36 / 35 05<br />
Telefax: +49 (0) 61 36 / 35 10 81<br />
E-mail: info@eckes-granini.com<br />
Contact<br />
Engel & Zimmermann AG<br />
Agentur für Wirtschaftskommunikation, Gauting<br />
Telephone: +49 (0) 89 / 89 35 63-3<br />
Telefax: +49 (0) 89 / 89 39 84 29<br />
E-mail: info@engel-zimmermann.de<br />
Concept<br />
Engel & Zimmermann AG<br />
Agentur für Wirtschaftskommunikation, Gauting<br />
Design and Realisation<br />
Welcome Marketing GmbH, Schondorf am Ammersee<br />
Photo Credits<br />
<strong>Eckes</strong>-<strong>Granini</strong> Archive<br />
Peter Hamel, Hamburg<br />
Karl Newedel, Munich<br />
Corbis, Masterfile<br />
This Annual Report is also available in German.<br />
Dieser Geschäftsbericht ist ebenfalls in deutsch erhältlich.