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Moments of pleasure and goodness, every day
1. Kantar Worldpanel, 12 August 2018.
Contents04 Who is Müller?05 InvestinginBritain06 Winningtheraceinyogurtsanddesserts07 Addressingwiderchallenges08 BecomingBritain’sdairyleader09 Leadinginnovations10 RevivingagreatBritishicon11 Modernisingthemilkman12 Agriculturalleadership13 Ourpeople14 Buildingabetterbusiness
Welcome!AtMüller,ourpurposeissimple:touplifteverybodywitheverydaymoments of pleasure.Thiscontinuestounderpineverythingwedo,andweareproudtobecreatingbrandedandprivatelabeldairyproductsthataremadeinBritain,withmilkfromBritish farms.
With an unprecedented investment of over £400m over the next three years, we are continuing to invest heavily in our capabilities and our people to develop, manufacture and market a new generation of branded and private label dairy products.WearedrivingnewconfidenceamongstBritain’sdairyfarmersandinitiatingnewwaysofthinkingforthelongterm.DairyischangingforthebetterandMüller isattheheartofit.
Dairyhasalwaysbeenoneofthelargestandmostimportantcategoriesinfood anddrinkandlastyearalonethedairysectorintheUKgrewby4.7%versus thepreviousyear,nowworthanimpressive£10.98bn1.Asthepioneering brandinthecategory,weareworkinghardtobuildavibrantfuture fortheBritishdairyindustry.Thisreportdetailsexactlyhowwe willachievethis.
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Investing in BritainWe’ve been investing heavily throughout our network of British dairies in recent years. Enhanced manufacturing capabilities and operational efficiencies are vital to drive confidence with our customers, farmers and consumers. This map shows the key transformations that have taken place at each site.
Createdacentreofexcellenceforflavouredmilk,freshcreamandspecialitycreamsinSevernside.
Investedinanewpolybottle fillinglineandtwonewTetra packcartonlinesinFoston.
SignificantlyenhancedprocessingcapabilitiesinBridgwaterwithamultimillionpoundinvestment.
MultimillionpoundinvestmentinDroitwichtoupdateandupgradeexistingprocessingcapability.
AcquiringthecapabilitytomanufactureownfreshmilkpackagingintheUKtoreduceplasticuseinmilkbottles.ThisistakingplaceatmajorsitesincludingManchester.
MultimillionpoundinvestmentacrosssitesincludingHanworthtosecurethefutureofthemuch-lovedmilkman.
DoublingsitecapacityinTelford,givingustheabilitytoproduceover500millionyogurtseveryyear,by2020.
InvestedinnewpackagingtechnologyinMinsterley forourdessertpotstoreducewaste.
Installedasecondpacketbutterline in Market Draytonto helpuscontinuetodisplace butterimports.
Who is Müller?
The year is 1987RickAstley’sNeverGonnaGiveYouUphasjustbeenreleased,futureWimbledonchampionAndyMurrayisbornandMüllerentersthe UKmarketforthefirsttime.
Jump forward to 2018 Mülleristhe7thbiggestfoodanddrinkbrandinBritain1,withproductschosenbyconsumersanimpressive230 milliontimesayear2.
Leveraging the power of MüllerAswecontinuetohelpourcustomersgrowthedairycategory,wearealsobringingthebrandtolifeinlotsofnewandexcitingways.OneofwhichisourofficialsponsorshipofBritish Athletics and Athletics Ireland,inplaceuntil2019.
FromTVadsthatfeatureWorld,European,BritishandIrishathleticschampions,tobrandedflags,giantfoamfingersandMülleractivationcentresatthe2018MüllerAnniversaryGames,thispartnershipaimstogivethousandsoffamiliestheopportunitytoexperiencethemomentsofpleasurethatMüllerproductsbring.
1. Britain’s Biggest Brands 2018, The Grocer.2. Kantar Worldpanel 2018 UK Brand Footprint ranking.
CreatedacentreofexcellenceinBellshill,boastingstateoftheartprocessingcapabilitiesformilkandcream.
Bellshill
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Winning the race in yogurts and dessertsYogurt is at the heart of a growing dairy category which is worth £11bn and accounts for 9.7% of total food sales. The yogurt and desserts category is worth £2.6bn which is more than biscuits, crisps, snacks, nuts, breakfast cereals, hot drinks and even bread!1 Yogurt has more usage occasions than most categories and consumers enjoy eating them throughout the day, this accounts for almost 8% of all food occasions. We are the UK’s favourite yogurts and desserts brand and are proud to boast leading positions in this category.3
Müller Corner Plain ThefirsteverMüllerCorner
productwithunsweetenednaturalhighinproteinGreekstyleyogurt,withadeliciousfruitcompote
ontheside.
Müller Corner Lactose Free Thisrepresentsourfirststepintothefree-fromsectoranddemonstrateshowweare
continuingtomeetthechangingneedsofourconsumers.
Müller Quark Yogurt Designedtoshakeupthethickyogurtcategory,QuarkhasbeencombinedwithMülleryogurt toappealtonewshoppersand
attractlapsedbuyers.
1.Nielsen,4w/e8thSeptember2018. 2.TotalsugarSWAper100g,less3.8glactoseallowanceper100g(basedonKantarvolumedata). 3.PublicHealthEngland:Sugarreduction:Achievingthe20%.
Addressing wider challenges
Championing the goodness of dairyNotonlyareyogurtspackedwithessentialnutrients,buttheyarealsodelicious!Whiletasteremainsthemostimportantfactor,weknowthatshoppersareincreasinglylookingforproductswithaddedhealthbenefits,andwe’veworkedhardtodeveloparangethatanswerstoeverydaydairygoodnessaswellasindulgence.We’recontinuingtobringproteintothemassesandworkingtowardstheinclusionofclearon-packproteinclaimsonouryogurtproductsnextyear.
Getting the nation activeWearecontinuingtoencouragemoreactivelifestylesthroughourathleticspartnershipsandnowhaveasquadof10Müllerbrandambassadors,whichincludeWorld,European,BritishandIrishathleticschampions.We’reinspiringfuturegenerationsbyinvestinginthefoundationsofsportandencouragingpeopletolivemoreactiveandhealthylifestyles.Forexample,aMüllerCorneron-packpromotionearlierthisyeargavepurchasersthechancetowinavisitfromaBritishAthletics/AthleticsIrelandathletetoaschooloftheirchoice,aswellas£2,000/€2,275worthofsportsequipment.
Reducing sugarSince2015,wehaveachieveda13.5%reductionintotalsugaracrossouryogurtportfolio2,equalling1,759tonnes.ThisissubstantiallyaheadofPublicHealthEngland’svoluntaryguidelines,which soughta5%loweringoftotalsugarbyAugust20173.Wehaveexcitingplansinplacethatwillallowustocontinuetomakefurtherprogressinthecomingyear.
Reducing wasteWearealreadyusingverticallyintegratedpackagingmanufacturing,allowingustoaccessspecialistpackagingskillsandexpertisetodrivefurtherreductions.Weareclearabouttheneedtodrivedowntheuseofplasticandouryogurtsanddessertsbusinesshasachieveda25%reductioninplasticusesince2006–whichistheequivalentweightof11LondonEyes!
97%1
1.Kantar|52w/e9thSeptember2018 2.Kantar|52w/e12thAugust2018 3.KantarWorldpanel2018UKBrandFootprintranking
Asthecategoryleader,wehaveinvestedsignificanttimeandmoneyinourcategoryvisiontoensurewefullyunderstandourconsumersandcontinueofferingbrandedandprivatelabelproductsthataremotivatedbyhealth,inspiredbytasteandcreateeverydaymomentsofpleasure.Weareinvestingheavilyoverthecomingyearstodevelop,manufactureandmarketanewgenerationofbrandedandprivatelabel
yogurtanddessertproducts,madewithmilkfromBritishfarms.Forexample,wearedoublingthesizeofourTelfordfacilitygivingustheabilitytoproduceover500millionyogurtseveryyear,by2020.Ourfutureplansaredesignedtonotonlycreatescale,buttodeliverthedeliciousMüllertastethatourconsumersexpect.Herearesomeofourmostrecentinnovations…
Leading innovations
Müllerlight UK’s top
yogurt brand
Annual penetration of:
Yogurts & desserts
Dairy category value sales =
£2.6BILLION
Eat chilled yogurts and potted desserts
every week of the year2
28MILLION PEOPLE
41 TIMES PER YEAR
With shoppers buying on average
Buying 7 pots and spending £2.45 per trip
Biscuits £2.5bn
Cereals £1.6bn
Crisps, snacks & nuts
£2.3bn
Müller Rice and Müller Corner The UK’s no.2 best-selling brands
in yogurts and chilled desserts1
Sept 2017 – July 2018
YogurtMüller
Sept 2017 – July 2018
% v
olum
e gr
owth
% v
olum
e gr
owth
Chilled dessertsMüller
2
In yogurt, improved Müller performance drives category growth. In desserts, when Müller grows, so does the category.
We are making sure that Müller is doing the right thing for our customers, consumers, farmers, employees and the environment. This includes...
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We want each bottle to be made from
recycled material50%
BY 2020Müller Milk bottles are
recyclable
TODAY
100%We’ve exported Müller ingredients to every continent (except Antarctica)
Each year we process enough milk to fill Lake Windermere
(just about)
Müller Spreadable Wehaveidentifieda£201m category opportunity inbutter1,whichreconnectsconsumerswithtaste todrivevaluebackintothecategory.Earlierthisyear,welaunchedourfirstbrandedspreadablemadewith73% churned butter,whichmajorsontaste.WehaveintroducedMüllerSpreadabletounlocknewcategorygrowth.
DID YOU KNOW?
Longer Lasting FRijjThere’samajoropportunityintheconvenience andfoodservicechannels,sowiththeintroductionofalonger-lastingambientrecipe,wearecontinuingtocreateproductsthatultimately reachmoreconsumersacrossmultiplechannels.
In May this year, we gave away enough tubs of Müller Spreadable
at Liverpool Street Station to butter 40,000 loaves of bread
1. Müller Category Vision.
WithanextensivelogisticsoperationandanetworkofoptimiseddairiesanddepotsthatservicecustomersthroughouttheUK,wehaveaclearvisionandstrategyinplacetobecomeBritain’sdairyleader:1.Wininfreshmilkthroughcost leadershipanddifferentiation.
2.Transformdairythroughinnovation andleveragingtheMüllerbrand.
3.Growthecategorythroughleading retailpropositionsandexpanding intooutofhome.
Becoming Britain’s dairy leaderFollowing the acquisition of Dairy Crest’s dairy operations and the completion of Britain’s largest-ever dairy integration, Müller Milk & Ingredients (MMI) is now well established as Britain’s largest producer of branded and private label fresh milk, milk drinks, cream and butter. Leveraging the capability we have now, we will achieve a sustainable and progressive business focusing on excellence, every time.
Fresh MilkOurchallengeistodrivehometherelevanceoffreshmilktotoday’sconsumers.Againstabackdropofcontinuedconsumptiondecline,we’reseeingprogressinourefforts(whichincludeshowcasingusageandcontinuededucation)tomakemilkmorerelevantagain.Freshmilksales(excludingdairyalternatives,UHTandsterilised)haveincreasedby4.1%1overthepastyear,onvolumesupby0.5%.
Milkisanaturalandnutritionallyrichproductcontainingessentialmineralsandnutrients.Withshoppersincreasinglymotivatedbyhealth,wethinkit’svitaltoshoutaboutthistoreinvigoratethecategory.
Milk Drinks Milkdrinksareamajorareaofopportunityforthedairyindustryandtoday’sconsumerswantmilkdrinksthatarehealthier,morerefreshingandcanfulfilavarietyofneeds,fromabreakfastdrink,toreplenishment,toindulgenttreats.Inordertogrowthecategory,wearefocusedonmakingFRijjmorevisibletoconsumersbyensuringtherangeisprominentinkeyareas,suchasfood-to-go,toencouragetrialandcapitaliseonimpulsepurchases.
1.Kantar,52w/e20thMay2018.
Leading innovations
MüllerNow 0908 MüllerNow
Our home delivery business, Milk & More is embarking on a transformation journey.
Milk & More offers customers quality products matched with first class customer service and the business is going from strength to strength, having introduced these four simple steps…
Reviving a great British icon
Modernising the milkman
Asweseektosecurethefutureofthegreat British milkman,wehavetakenthemuch-lovedtraditionaldeliveryserviceandmoderniseditsothatitisrelevantfortoday’scustomers.
Todaywedeliveraselectionofhand-pickeditemsfromsmallerregionalsuppliers,offeringhighqualityproductsfromBritishproducerstothedoorsof ourcustomers.
Milk & More is championing the
of new customers order milk in glass
1. Reliable morning deliveries. ToensureMilk&Moregetstocustomersbeforetheyleaveforwork,ourpromiseistomakeall deliveries by 7am,justbeforethebreakfastrush!
2. Premium products with a little help from our (local) friends. Withcustomersandtheircommunitiesattheheartofeverythingwedo,Milk & More is proud to champion local suppliers.Withoverhalfofnewcustomersbuyingmorethanjustmilk,ourupdatedrangeofpremium,localandfreshproducehelpsthem tosupporttheirlocalcommunities.
3. Driving the milk revolution with electricity! 200 new state-of-the-art electric milk floats havehittheroadthisyear,which areourquietestandmost environmentally-friendly delivery vehiclesto-date. Witha£6.5m investment,theStreetScooterfleetis100% electricand100% emission-free,ensuringthetraditionalmilkfloatissetfornow,andlongintothefuture.
4. Catering for 21st century shoppers. Anew,easy-to-usewebsitenotonlylaunchedtheupdatedbrandidentityforMilk&More,butitnowallowscustomerstoadjust their order up to 9pm the day before their next delivery,fordeliverythefollowingday.SincethesitelaunchedinFebruarythisyear,thebusinesshasacquiredastaggering40,000newonlinecustomers.
90%
DID YOU KNOW?
Our customers are at the heart of every decision we make and that
includes our investment in the StreetScooter milk floats. We really want to make this British tradition live on and to do that, we’re focusing on making it relevant for 21st century customers. We’re on a transformation journey and the new StreetScooters are just part of our wider business strategy to provide a trusted home delivery service that connects customers with a wide range of high-quality, locally sourced products.
Patrick Müller, CEO of Milk & More and Müller Milk & Ingredients1 25 TIMES
They are reused on average
100 MILLIONEvery year we deliver
of themGLASS MILK BOTTLE
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Thriving through volatilityTheMüllerdairyrevolutionwillensurethatBritain’sfarmersrealisetheirambitions.Webuya quarter of all milk produced on Britain’s farms,andwiththatcomesaresponsibility.Inordertogrow,weneedtosecureastrongandstablefuturemilksupplyandwe’remeetingthischallengebypioneeringnewwaysofthinking.Weareworkinghardtoensure thatfarmerswhochoosetosupplyuscanbuildvibrantbusinesses.
Ourstartingpointissimple,weofferaleadingmilksupplycontractpropositionandacompetitiveprice.MüllerDirectfarmerscanalsoreducetheirexposuretomarketvolatility,whichhasseenpricessufferdramaticswingsinthepastfewyears.Theycanopttoplaceaportionoftheirmilkproductionagainstfixedpriceandfuturescontractswhichacttosmoothreturns,improvingtheabilitytoplan.Innovationthroughoutoursupplychain–That’s the Müller way.
Supporting the Next Generation WeknowthatsuccessionisanissueonBritain’sdairyfarmssowe’reactivelydevelopingandenhancingtheskillsoffuturegenerationsthroughtheMüller Next Generation Programme.
Theinitiativewassetuptohelpambitiousyoungfarmersprogressintheircareers,sotheycangoontobuildsuccessfuldairybusinessesforthefuture.FullysupportedandfundedbyMüller,theprogrammeprovidesbespoketrainingoneverythingfrombenchmarkingandmarketanalysis,tobusinessimprovementplanning.
Thethree-yearprogrammeevenincludesfacetimewithelite,professionalathleteswhowillpassontheirknowledge,single-mindedness,resilienceanddesiretosucceed.
The Müller Next Generation Programme
With dedicated mentors
Meets 3 times a year
For personal development
training
Weareworkingtogethertodelivercategorygrowthandexcitementforourcustomers,andmoments ofpleasureforpeoplewholoveourproducts. Aswellasagreatculture,we’realsostrongbelievers
inofferingopportunitiestoeveryonetoprogress intheircareersandgainskillsandqualifications thatwillservethemthroughouttheirworkinglives.Butdon’tjusttakeourwordforit…
Jesse Steward Innovation and Development Manager, Müller Yogurt & Desserts
InmyjobIoverseetheresearchanddevelopmentthatgoesintotheMüllerbrand–frominitialideasallthewaytothe
productbeinglaunched.Overthepast17years,I’vebeenabletoworkonahugevarietyofprojectsandhavelovedbuildingatalentedR&DteamthathelpsbringtheMüllerliciousbrandandtastetoourcustomers,whichhasbeenverysuccessfulto-date.There’salwaysnewproductsinthepipeline(currentlyover 100!)soit’sareallyexcitingandrewardingpartofthebusinesstobeinvolvedin.
We’re proud to work with over
1700 dairy farmers in Britain
Emma RichardsonButter Quality Leader, Müller Milk & Ingredients
AsthequalityleaderforthebuttersectionofthebusinessatMarketDrayton,Iamthefirstpointofcontactfor
queriesandIamdirectlyincontactwithourcustomers,ensuringthateverythingisuptotheirstandardsandrunningasitshouldbe.It’sbecauseofthisthateverydayisdifferentandthereare
alwaysnewthingstolearn.Withourhigh-qualitybutterpractices,investmentinourpeople,andourgreatrelationshipswithour
customers,we’reconstantlyimproving.ThisisapparentwiththelaunchofMüllerSpreadable,whereweweresetachallengebyoneofourcustomers,andwerosetoit.Afterthis,whoknows
whatwecandoforourcustomersnext!”
Frances BellMüller Yogurt & Desserts Next Generation programme farmer
I’vebeenworkingonthefamilyfarmforabout14years.Farming
isdefinitelyinmybloodandit’sallI’veeverknown.IappliedfortheMüllerNextGenerationprogrammetomeetotherlikemindedyoungfarmersandwehelpeachotherout.It’sgreatworkingwithMüllerbecausetheyreallyhelpfarmersprepareforthefuture,forexampleusingafixedpricecontracttoremovevolatility.Forme,it’saboutgrowingthefamilybusinessandseeingwhatinterestingandnew thingsIcanbringbackandutilise inourday-to-dayoperations.
Agricultural leadership
Our people Müller is a progressive, entrepreneurial and vibrant family-run business.
1 2 3
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We are investing heavily to make sure that we are doing the right thing for our customers, consumers, farmers, employees and the environment. Tobuildabetterbusinessandensurethatcontinuedbusinessgrowthisachievedinasustainable andresponsiblemanner,wearecurrentlybuildingastrategyaroundthefollowingfour key areas thatwilllaunchin2019:
Environmental Efficiency Aspartofaresponsible,innovativeandhardworkingdairyindustry,weareworkingcloselywithcustomersandsupplierstofindwaysofenhancingtheenvironmental
efficiencyofoursupplychain.Byinvestingheavilyinnewpackagingsolutions,wehaveremoved 30,000 tonnes of plasticinrecentyearsandhaveacquiredthe
capabilitytomanufactureourownpackaging.Therearealsomultipleprogrammesinplacetoreduceourenergy,carbon,wasteandwaterusage.Forexample,severalofour
dairieshaveinstalledreverseosmosissystemstorecyclewater, achieving 50% re-use.
Müller ExcellenceTheMüllerExcellenceprogrammerepresentsourjourneytoachieve world class performance,inarapidlychangingenvironment.Withastate-of-the-artperformancemanagementsysteminplaceandatrainingprogrammethatdetailshowtoreduceeight different types of waste,weaimtoachieveoperationalexcellenceateverylevel.
Responsible Sourcing25% of all milk produced on British farms is purchased by Müller,soresponsiblesourcingisabsolutelycrucialtoourwholesupplychain.Forthebusinesstogrow,weneedastrongandstablemilksupply,whichiswhyweareconstantlyinnovatinginthisareatoensurethatthefarmerswhochoosetosupplyMüllerareinthebestpositionpossibletobuildtheirownvibrantbusinesses.
Ethical ResponsibilityAsafamily-runbusiness,we invest heavily in our people,facilitiesand
infrastructuretocreatefirst-classworkingconditions.Throughourongoinghealthagenda,whichactivelyencouragespeopletomakehealthy,activeandbalancedlifestylechoices,wearenowtakingethicalresponsibilityonestepfurther.Weareonamissiontoreducesugarandpromoteactivelifestylesbyinvestinginthefoundationsofathleticstoinspirethenextgeneration,aswell
asshoutingaboutthemanyhealthbenefitsofdairyproducts.
Building a better business
For further information about Müller please go to www.muller.co.uk
Thank You
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