The Top 10 Dairy Companies

Published by: Business Insights

Published: May. 1, 2008 - 174 Pages

Table of Contents

The Top 10 Dairy Companies

Executive Summary

Market context

Nestlé

Danone

Dean Foods

Unilever

Lactalis

Dairy Farmers of America

Arla Foods

Kraft Foods

Friesland Foods

Parmalat

Conclusions

Chapter 1 Introduction

What is this report about?

Methodology

Chapter 2 Market context

Summary

Introduction

Market overview

Market size and growth

Top trends in the dairy market

Increasing raw material prices

Growing demand for dairy products in China and Asia

Contracting European supply

Adverse climatic conditions in Australia and New Zealand

Rising cost for animal feed

Shift towards health and wellness

Chapter 3 Nestlé

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Popularly positioned products (PPPs)

DSD initiative

Luxury and premium products

Innovation and NPD

SWOT analysis

Strengths

Strong brand portfolio

Strong presence in emerging markets

Weaknesses

Product recalls

Opportunities

Expansion in Brazil

Growing health concerns

Threats

Rising milk prices

Chapter 4 Danone

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Geographic expansion

Innovation and NPD

SWOT analysis

Strengths

Strong market position in FDP market

Strong brand portfolio

Weaknesses

Overdependence on Europe

Opportunities

Entering the organic food market

Geographic expansion

Threats

Government regulations

Chapter 5 Dean Foods

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Leveraging DSD network

Morningstar and WhiteWave platforms

Innovation and NPD

SWOT analysis

Strengths

Strong market share in the US

Strong brand portfolio

Weaknesses

Customer concentration

Low EBITDA

Opportunities

Growing demand for organic dairy products

Expansion of farmers network

Threats

Increase in raw material and dairy commodity costs

Chapter 6 Unilever

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Restructuring business

Innovation and NPD

SWOT analysis

Strengths

Strong market share in the ice cream segment

Strong R&D capabilities

Weaknesses

Decreasing cash flow from operation

Opportunities

Increasing health consciousness

Threats

Seasonal demand for ice cream

Chapter 7 Lactalis

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Expansion through acquisitions

Innovation and NPD

SWOT analysis

Strengths

Strong market position in French milk market

Weaknesses

Weak internal control

Opportunities

Increase of production capacity

Threats

Price fluctuations in dairy products

Chapter 8 Dairy Farmers of America

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Investing In core business units

Innovation and NPD

SWOT analysis

Strengths

Leadership position in the US

Weaknesses

Divestment of plants

Opportunities

Growing butter and margarine market in the US

Threats

Increasing competition

Chapter 9 Arla Foods

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Focus on core business

Drive growth in selected markets

Innovation and NPD

SWOT analysis

Strengths

Strong sales growth in the UK

Weaknesses

Lagging behind on revenue growth

Geographic concentration

Opportunities

Increasing whey processing

Opportunities in Algeria

Threats

Consumer boycott

Falling milk supply

Chapter 10 Kraft Foods

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Strengthening brand portfolio

Creating brand awareness

Innovation and NPD

SWOT analysis

Strengths

Strong distribution network

Weaknesses

Geographic concentration

Opportunities

New offerings in Cheese

Cost cutting

Threats

Consolidation of retail sector

Chapter 11 Friesland Foods

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Strengthening position in Southeast Asia

Concentrating Central European production

Vision 2015

Innovation and NPD

SWOT analysis

Strengths

Strong market and brand position

Co-operative business structure

Weaknesses

Declining profits from Asia and Africa regions

Opportunities

Friesland Foods and Campina merger

Focus on low-income segment in Indonesia

Threats

Rising commodity costs

Chapter 12 Parmalat

Summary

Company information

History

Recent financial performance

Acquisitions and divestments

Growth strategies

Focus on functional and premium products

Innovation and NPD

SWOT

Strengths

Strong position in Italy

Weaknesses

Major presence in mature markets

Opportunities

Growing trend towards health and wellness

Threats

Competition from private labels

Chapter 13 11-20 companies

Bongrain

Company description

Recent financial performance

Innovation and NPD

Morinaga Milk Industry

Company description

Recent financial performance

Innovation and NPD

Campina

Company description

Recent financial performance

Innovation and NPD

Meiji Dairies

Company description

Recent financial performance

Innovation and NPD

Land O’ Lakes

Company description

Recent financial performance

Innovation and NPD

Saputo

Company description

Recent financial performance

Innovation and NPD

Sodiaal

Company description

Recent financial performance

Innovation and NPD

Fonterra

Company description

Recent financial performance

Innovation and NPD

Fromageries

Company description

Recent financial performance

Innovation and NPD

Yakult Honsha

Company description

Recent financial performance

Innovation and NPD

Chapter 14 Conclusions

Summary

Introduction

Revenue overview

Growth strategies

Expansion into emerging markets

Health and wellness

Category focus

Outlook

Glossary

Index

List of Figures

Figure 2.1: Global dairy market size, ($m), 2002-06

Figure 2.2: Top 10 dairy companies market share, (%), 2006

Figure 2.3: EU-25 average milk prices, (€/100kg), 2003-07

Figure 2.4: Milk production in EU-25, (thousand tones), 2004-07

Figure 2.5: Annual growth in milk production, (%), 2002-06

Figure 3.6: Nestlé dairy financial performance, ($m), 2005-07

Figure 3.7: Nestlé’s recent dairy product launches, by category, 2004-07

Figure 3.8: Roxie Ice Cream and Haagen-Dazs Ice Cream

Figure 3.9: Nestlé SWOT analysis

Figure 4.10: Danone dairy financial performance, ($m), 2004-06

Figure 4.11: Danone’s recent dairy product launches, by category, 2004-07

Figure 4.12: La Serenisima Yogurisimo Go Yogur Licuado Endulzado and Essensis Pro-Nutris Yogurt Drink

Figure 4.13: Danone SWOT analysis

Figure 5.14: Dean Foods dairy financial performance, ($m), 2005-07

Figure 5.15: Dairy Group revenue breakdown (%), 2007

Figure 5.16: Dean Foods’ recent dairy product launches, by category, 2004-07

Figure 5.17: Rachel's Organic Bio-Live Yogurt

Figure 5.18: Dean Foods SWOT analysis

Figure 6.19: Unilever dairy financial performance, ($m), 2004-06

Figure 6.20: Unilever’s recent dairy product launches, by category, 2004-07

Figure 6.21: Becel Margarine - Omega 3 Plus, Popsicle SlowMelt Long Lasting Pops and Breyers Swirls Ice Cream

Figure 6.22: Unilever SWOT analysis

Figure 7.23: Lactalis financial performance, ($m), 2006-07

Figure 7.24: Lacatalis’ recent dairy product launches, by category, 2004-07

Figure 7.25: Dukatol and Galbani mozzarella mini light

Figure 7.26: Lactalis SWOT analysis

Figure 8.27: DFA financial performance, ($m), 2004-06

Figure 8.28: DFA business segments breakdown, share of sales, 2006

Figure 8.29: DFA’s recent dairy product launches, by category, 2004-07

Figure 8.30: Borden Spreadable Butter with Canola Oil, Breakstone's Spreadable Butter with Canola Oil and Keller's Spreadable Butter with Canola Oil

Figure 8.31: DFA SWOT analysis

Figure 9.32: Arla Foods dairy financial performance, ($m), 2005-07

Figure 9.33: Arla Foods’ recent dairy product launches, by category, 2004-07

Figure 9.34: Yoggi Yalla! Drickyogurt

Figure 9.35: Arla Foods SWOT analysis

Figure 10.36: Kraft Foods dairy financial performance, ($m), 2005-07

Figure 10.37: Kraft Foods’ recent dairy product launches, by category, 2004-07

Figure 10.38: LiveActive Cheese

Figure 10.39: Kraft Foods SWOT analysis

Figure 11.40: Friesland Foods dairy financial performance, ($m), 2006-07

Figure 11.41: Friesland Foods’ recent dairy product launches, by category, 2004-07

Figure 11.42: Friesche Vlag Slaap Lekker and Dios-Mezes

Figure 11.43: Friesland Foods SWOT analysis

Figure 12.44: Parmalat dairy financial performance, ($m), 2006-07

Figure 12.45: Parmalat’s recent dairy product launches, by category, 2004-07

Figure 12.46: Black Diamond Ficello Smart Growth String Cheese and Latte Parziamente Scremato

Figure 12.47: Parmalat SWOT analysis

Figure 13.48: Der Milde Chavroux Frischkaese aus 100% Ziegenmilch - 8% Fett

Figure 13.49: Eskimo Ryofudo Ice Cream and Eskimo Pino Ichigo

Figure 13.50: Campina Fruttis Yogurt and Campina Fruttis Creamy Yogurt

Figure 13.51: Meiji Bulgaria Yogurt Teito Nameraka

Figure 13.52: Alpine Lace Variety Pack of Sliced Cheese

Figure 13.53: Dairyland Alive Yogurt

Figure 13.54: Panier de Yoplait 0% Fat Yogurt - Quartiers

Figure 13.55: Perfect Italiano Ricotta Cheese

Figure 13.56: Kiri Golo and Laughing Cow Cheese Spread

Figure 13.57: Yakult no Seinyu Tappuri Yogurt

List of Tables

Table 2.1: Top 10 dairy companies turnover, ($m), 2004-06

Table 3.2: Nestlé key milestones

Table 3.3: Nestlé dairy financial performance, (CHFm), 2005-07

Table 3.4: Nestlé business segment performance, (CHFm) 2007

Table 3.5: Nestlé key dairy brands

Table 4.6: Danone key milestones

Table 4.7: Danone dairy financial performance, (€m), 2004-06

Table 4.8: Danone business segment performance, (€m), 2006

Table 5.9: Dean Foods key milestones

Table 5.10: Dean Foods dairy financial performance, (€m), 2005-07

Table 5.11: Dean Foods dairy business segment performance, ($m), 2005-07

Table 5.12: Dean Foods key dairy brands

Table 6.13: Unilever key milestones

Table 6.14: Unilever dairy financial performance, (€m), 2004-06

Table 6.15: Unilever business segment performance, (€m), 2006

Table 6.16: Unilever key dairy brands

Table 7.17: Lactalis key milestones

Table 7.18: Lactalis financial performance, (€m), 2006-07

Table 8.19: DFA key milestones

Table 8.20: DFA financial performance, ($m), 2004-06

Table 9.21: Arla Foods key milestones

Table 9.22: Arla Foods dairy financial performance, (DKKm), 2005-07

Table 9.23: Arla Foods business segment performance, (DKKm), 2007

Table 9.24: Arla Foods key dairy brands

Table 10.25: Kraft Foods key milestones

Table 10.26: Kraft Foods dairy financial performance, ($m), 2005-07

Table 10.27: Kraft Foods dairy business segment performance, ($m), 2005-07

Table 10.28: Kraft Foods business segment performance, ($m), 2007

Table 10.29: Kraft Foods dairy key brands

Table 11.30: Friesland Foods key milestones

Table 11.31: Friesland Foods dairy financial performance, (€m), 2006-07

Table 11.32: Friesland Foods business segment performance, (€m), 2007

Table 11.33: Friesland key dairy brands

Table 12.34: Parmalat key milestones

Table 12.35: Parmalat dairy financial performance, (€m), 2006-07

Table 12.36: Parmalat dairy business segment performance, (€m), 2006-07

Table 13.37: Bongrain snapshot

Table 13.38: Bongrain dairy financial performance, (€m), 2004-06

Table 13.39: Morinaga Milk Industry snapshot

Table 13.40: Morinaga Milk Industry dairy financial performance, (¥m), 2004-06

Table 13.41: Campina snapshot

Table 13.42: Campina dairy financial performance, (€m), 2004-06

Table 13.43: Meji Dairies snapshot

Table 13.44: Meiji Dairies dairy financial performance, (¥m), 2005-07

Table 13.45: Land O’ Lakes snapshot

Table 13.46: Land O’Lakes dairy financial performance, ($m), 2004-06

Table 13.47: Saputo snapshot

Table 13.48: Saputo dairy financial performance, (C$m), 2005-07

Table 13.49: Sodiaal snapshot

Abstract

• The global dairy industry is highly fragmented, with the top 10 companies representing about 22.4% of the total market size in 2006.
• The global dairy market reached $402.5bn in 2006, representing a five-year CAGR of 3.7% and it is forecast to reach about $487.2bn in 2011, representing a five-year CAGR of 4.9%.
• The leading dairy companies are focussing innovation on organic and functional dairy. Other latest developments have included products that are low fat, contain natural ingredients and no preservatives.
• Nestlé was the global industry leader with a 5.0% market share in 2006, followed by Danone (2.5%) and Dean Foods (2.4%).
• Parmalat’s dairy business recorded revenues of R3,546m ($4,861m) for the fiscal year ended December 2007, an increase of 6.1% over 2006. Higher revenues in fiscal 2007 were mainly due to higher sales volume in Canada and Italy. The dairy revenues accounted for 91.8% of its consolidated revenues in 2007.

• Growing demand for dairy products in Asia is driving global milk prices. The increase in demand has been fuelled by population growth, increases in personal income and Western-style influences on the Asian diet (demand for non-native foods such as cheese slices, yogurt and skimmed milk among young urbanites).
• Contracting European supply of milk. The milk quota system (introduced in 1984) has placed a limit on the amount of milk produced each year by EU dairy farmers. EU-25 milk production declined 0.3% during September 2004-07 and 1.4% in September 2007.
• Adverse climatic conditions in Australia and New Zealand. Australia and New Zealand are the two major milk exporters in the world. In 2005, both countries witnessed a drop in milk productiondue to adverse climatic conditions, with Australia’s output falling 0.3% and New Zealand down 4.0% year-on-year. Decline in output of world’s major milk exporters will impact the global milk supply and therefore, will lead to a rise in milk prices.

• What are the trends in the global dairy industry?
• Who are the top 11 to 20 companies?
• Which regions and segments offer the leading dairy companies the greatest growth opportunities?
• How do the leading dairy companies compare in terms of financial performance and coverage by country and category?
• What are the key strategies of the leading dairy companies and how do these strategies drive revenue and market share?

• Benchmark the world’s leading dairy companies with this report’s ranking of the top 10 companies, detailing their financial performance and future prospects.
• Identify and target future growth areas from this report’s analysis of the acquisitions and divestments made by leading dairy companies and their strategies for growth.
• Understand the key trends in the dairy market and the impact that they are expected to have, using this report.
• Enhance your product development strategies with this report’s analysis of the leading dairy companies’ innovation and NPD strategies and recent product launches.
• Create more effective competitive strategies based on this report’s SWOT analyses of the top dairy companies.
• Assess the performance of leading dairy companies, identify their strengths and weakness and learn about their growth strategies with this report...

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