Creating the Future of Dairy Arla Innovation 2020
About Arla 12,600+ OWNERS 14+ BL. KG. MILK INTAKE THE 4TH LARGEST 19,000+ COLLEAGUES 3 BRANDS 10+ BL. EURO REVENUE 2
Of course you can live a life without dairy. But why would you? 3
Innovation is a central building block of Arla s strategic 2020 agenda and a key enabler to meet our vision Vision Creating the future of dairy to bring health and inspiration to the world, naturally
What is Innovation @ Arla? Profitable SELL implementation DO of an Idea THINK
Why Innovate? 6 4/27/2017
The global dairy market is changing rapidly DEMAND SUPPLY Our CONSUMERS expect more Our CUSTOMERS professionalise and expect more Our COMPETITORS gear up for global scale & efficiency Our OWNERS bring in much more milk 7 7
Why must we innovate? The World is changing Consumers and Customers demand more from us The World is confusing Accelerated Change and new Trends Our Lives are changing Our Farmers produce more Milk
Our innovation is brought to consumers through our 8 strategic product categories across markets The dairy champion that brings health and natural goodness to the world Champion of good food Creatively crafted cheeses MILK & POWDER DAIRY BASED BEVERAGES BUTTER & SPREADS MOZZARELLA SPREADABLE CHEESE YOGURT SPECIALITY CHEESE INGREDIENTS NATURAL GOODNESS FOOD EXPLORATION 9
The consumer is at the heart of everything we do 10 27 April 2017
Why is it important to focus on our consumers? Consumers are not just our business, but the core of all that we do we have the power to improve peoples life the how comes from not just knowing them but understanding them!
Ask and understand Most think that if we just give the consumers what they ask for then we will make everyone happy we need to give them, not what they ask for, but what they want understanding that most of the time people do not know what they want! If I had asked people what they wanted, they would have said faster horses. Henry Ford 12 27 April 2017
Our best results are created in cooperation with others
Cooperative innovation Building greater innovation across our eco-systems SUPPLIERS CUSTOMERS CONSUMERS FARMERS ACADEMIA STRATEGIC PARTNERS COLLEAGUES 14
In world class facilities Arla Consumer-centric Innovation Design Centre 1. Operational house for R&D 2. Pilot Plant 3. Multiple Laboratories & test equipment 4. Sensory facilities 5. Consumer house & kitchen 6. Customer Innovation Centre 7. Danish Food Cluster, Agro Food Park New Arla Innovation Centre officially opens May 16 th (Move in Feb 1 st )
Open Innovation at Arla We bring external partners to our innovation agenda I n t e g r a t i o n m o d e l Universities & Consortia SMEs/ Ventures Suppliers
Segmentation Work with the right parties - Work with the parties right We use a segmentation model to help us identify the best-fit relationship with external parties 17
How do we work with start-ups? 18 27 April 2017
Farms as an archetypal SME SMEs / Ventures It is in Arla s DNA to work collaboratively with small businesses. We ve been doing so since the 1880 s!
20 Our Partners in building the deal flow and providing inspiration from SMEs world
Testing new ways of partnering with SMEs: shared risk via multi-party accelerators Deadline for applications. 20 th April. https://www.accelerace.dk/apply/ Scale-up Food! 21
Looking ahead
We will continue to build Category Leading Innovation Enhanced Nutrition - Skyr format development Cooks Range Protein Cottage Cheese New Usage Formats On The Go Kefir Milk & Fruit Protein extension Lurpak infusions Quark & SWC Castello Expansion Handheld & Shakes Kids Enriched Cooking New Products for Markets Milk & Tea Specific Need Portion Control - Usage
Whilst we build the Future of Dairy Our Global Innovation fields build new platforms and science & technology Nourishing Life Out of Home Dairy to Delight All Over the World Quality & Efficiency Reinvent Milk 24 27 April 2017
The future will be Good!