2. - Fonterra

THIS IS
FONTERRA
OUR STRATEGY
FY15
Confidential to Fonterra Co-operative Group
Our journey to a globally relevant co-op
Confidential to Fonterra Co-operative Group
Page 2
Our Strategy builds on our strengths and
secures our growth for the next decade
VOLUME, VALUE AND VELOCITY
›
Volume
Grow milk production volumes to
protect our place in a growing
market
›
Value
Drive more value from every drop
of milk by providing high value
products and services to our
consumers and customers
›
Velocity
Execute our strategy at speed
Confidential to Fonterra Co-operative Group
Page 3
We will focus on seven strategic paths
1. Optimise New Zealand milk
2. Build and grow beyond our current consumer
positions
3. Deliver on foodservice potential
4. Grow our Anlene business
5. Develop leading positions in paediatric and
maternal nutrition
6. Selectively invest in milk pools
7. Align our business and organisation to enable
the strategy
Page 4
Confidential to Fonterra Co-operative Group
1.
OPTIMISE NEW
ZEALAND MILK
• Grow with the market
• Enhance asset footprint
• Drive improved customer metrics
and lower cost to serve
• Increase speed and agility of our
global supply chain
• Expand financial risk management
tools
Confidential to Fonterra Co-operative Group
Page 5
2.
BUILD AND
GROW BEYOND
OUR CURRENT
CONSUMER
POSITIONS
• Leverage our leadership positions
in NZ, Chile, Sri Lanka and
Malaysia
• Leverage our existing positions to
capture growth in adjacent
markets
• Invest in our core strategic
markets of China, Indonesia,
Australia and Brazil
Confidential to Fonterra Co-operative Group
Page 6
3.
DELIVER ON
FOODSERVICE
POTENTIAL
• Drive cash from established
businesses to full potential
• Accelerate growth through our
chef-led model in key strategic
markets
• Continued NPD and innovation to
support customer needs
Confidential to Fonterra Co-operative Group
Page 7
4.
GROW OUR
ANLENE
BUSINESS
• Strengthen Anlene leadership in
ASEAN through portfolio
expansion and increased
penetration
• Drive Anlene in China across
selected regions
Confidential to Fonterra Co-operative Group
Page 8
5.
DEVELOP
LEADING
POSITIONS IN
PAEDIATRICS
AND MATERNAL
NUTRITION
• Strengthen our leadership
position in our branded
maternal category
• Enhance position in infant
formula in selected Asian
markets
• Step change in focus on China
• Focused innovation in core
cognition value proposition
Confidential to Fonterra Co-operative Group
Page 9
6.
SELECTIVELY
INVEST IN MILK
POOLS
• Maintain strong milk supply position
in New Zealand, Australia & Chile
• Stage-gated investment in additional
China farms
• Focus on food security & safety,
sustainability and productivity
• Support global co-operative through
selective non-NZ sourcing options
Confidential to Fonterra Co-operative Group
Page 10
7.
ALIGN OUR
BUSINESS AND
ORGANISATION
TO ENABLE THE
STRATEGY
• Focus on efficient and effective
support of our operations globally
• Deliver consumer assurance in
food safety & quality
Confidential to Fonterra Co-operative Group
Page 11
Our
Strategy in
Action...
Confidential to Fonterra Co-operative Group
Page 12