FrieslandCampina Key Nutrition Trends for 2024:

Sustainable Future in Focus: FrieslandCampina Ingredients, renowned for its protein and prebiotic solutions, in their recently released Nutritional Trends 2024 report, spotlights five pivotal trends expected to shape the food, drink, and supplement industries in 2024. Amid a complex global environment, consumers are increasingly seeking comfort and control through nutrition, presenting unique opportunities for brands to foster healthier choices.

One of the foremost trends, Securing the Future, Sustainably, highlights the growing consumer demand for sustainable products. Although more individuals are adjusting their diets for environmental reasons, skepticism about the authenticity of environmental claims persists. Manufacturers are thus urged to back their sustainability assertions with solid, verifiable data to ensure lasting success.

Related: Top 10 Largest Dairy Producers in USA by Market Share & Volume

Tailoring Nutrition to Individual Needs: Another significant trend, Nutrition for All, points to the increasing awareness among consumers about their distinct nutritional requirements influenced by factors such as age, gender, genetics, and lifestyle. This awareness opens substantial opportunities for brands to create customized nutritional solutions catering to specific, and currently unaddressed, consumer needs.

Rise of Plant-Based Alternatives: The trend Alt Proteins Go Global reflects the mainstream acceptance of plant-based alternatives. As consumers, especially those following flexitarian diets, integrate more meat and dairy substitutes into their meals, the emphasis on innovation in plant-based products grows. These innovations should aim to match the taste and nutritional value of traditional products. The potential of alternative proteins, like those derived from precision fermentation, is also noteworthy, albeit needing myth dispelling and consumer education.

Holistic Gut Health Approach: The report also identifies the trend of Going Beyond via the Gut, acknowledging the connection between physical and mental health. Consumers are increasingly looking towards gut health solutions for overall well-being. Brands are encouraged to take a holistic approach to gut health, considering its impact on immunity, brain function, and muscle health.

Supporting Healthy Ageing and Recovery: The final trend, Ageing and Recovering Well, focuses on the older population’s proactive approach to health, emphasizing healthy ageing and maintaining an active lifestyle. Innovations in medical nutrition, incorporating muscle-boosting ingredients, are key to supporting recovery and overall well-being in this demographic.

Vicky Davies, Global Marketing Director at FrieslandCampina, underscores the importance of providing consumers with necessary nutrition amidst uncertainties. These trends demonstrate a growing consumer emphasis on managing nutrition as a controllable aspect of their lives, with a keen focus on environmental impact, sleep quality, and personal fitness goals.

Danone’s Russian Political Maze

Explore Danone’s challenging journey in Russia amid unexpected management changes and complex negotiations, revealing the intricacies of corporate resilience.

Danone in Russia: Navigating a Corporate Maze Amidst Political Tensions

The Danone Dilemma in Russia: A Tale of Unexpected Management and Unsettled Deals

This summer, a group of Chechens linked to Ramzan Kadyrov, their regional leader, unexpectedly took control of Danone’s operations in Russia. This move occurred while Danone, a French dairy giant, was finalizing a deal to exit Russia. The Kremlin’s decision to place Danone and Danish brewer Carlsberg under “temporary external management” disrupted these plans, especially affecting Carlsberg, whose former executives are now imprisoned. However, Danone’s situation has evolved into a peculiar stalemate, with much of the company’s daily management remaining unchanged under the new Chechen leadership.

Business as Usual? Inside Danone’s Russian Operations Post-Takeover

While the Chechen takeover seemed alarming, the operations at Danone’s Russian dairy factories have continued with minimal disruptions. The new Chechen managers, surprisingly professional in their approach, have avoided aggressive tactics, maintaining a low profile. The situation, described as “extremely amicable,” has not provoked public complaints of mistreatment from Danone. Despite these developments, the company is still working to finalize the sale of its Russian business, seeking a Kremlin-approved buyer.

Impact and Response: Danone and Carlsberg’s Different Paths in Russia

Russia’s abrupt management changes in foreign companies, like Danone and Carlsberg, have created shockwaves. Danone, representing about 5% of the group’s annual revenue, is significantly impacted by these developments. Initially committing to stay in Russia post-invasion of Ukraine, citing responsibility towards employees and suppliers, Danone later shifted its stance, planning an exit that could lead to substantial financial losses. Meanwhile, Carlsberg’s situation contrasts sharply, with arrests and allegations of targeting innocent employees by the Russian government.

Navigating Uncertainty: The Road Ahead for Danone in Russia

Despite the takeover, Danone’s executive committee in Russia remains active, working towards asset protection and a potential sale. The company, while preparing to protect its shareholder rights, has stopped short of directly accusing Russia of expropriation. Interestingly, while Yakub Zakriev, Kadyrov’s nephew, is officially the general director of the renamed “Life & Nutrition,” Dutch Danone veteran Charlie Cappetti continues to play a significant role unofficially.

The Complexity of Yogurt Production: Danone’s Leverage in Russia

Danone’s expertise in yogurt production, involving complex supply chains and unique ingredients, offers it some leverage over the new management. This complexity ensures that the company’s unique production processes remain vital, posing challenges for any drastic changes by the new managers.

Conclusion: A Tense Balancing Act in Corporate Russia

Danone’s situation in Russia highlights the challenges faced by foreign investors in navigating uncertain political and economic environments. The company’s cautious approach and ongoing negotiations reflect the complexities of maintaining business operations while adhering to corporate responsibilities and navigating geopolitical tensions.

Related: Top Dairy Producers In The World

Posted on Categories Dairy

FrieslandCampina Cuts 1,800 Jobs for Profitability

FrieslandCampina, a prominent Dutch dairy cooperative, has unveiled a comprehensive cost-saving strategy that includes cutting 1,800 jobs across its global operations over the next two years. This strategic move, geared towards improving profitability, is projected to yield savings of up to €200 million ($215 million) and forms a pivotal component of the company’s ambitious plan to slash annual expenses by €400 million to €500 million by 2026.

Global Dairy Powerhouse

With a formidable presence in more than 100 countries, FrieslandCampina ranks as one of the world’s leading dairy cooperatives. Its product portfolio spans a wide spectrum, encompassing dairy staples such as milk and cheese, as well as vital components for the food and pharmaceutical sectors. The cooperative’s workforce currently spans 30 countries and comprises roughly 22,000 employees, underscoring its global significance.

Streamlining Operations for Efficiency

The decision to cut 1,800 jobs underscores FrieslandCampina’s commitment to operational efficiency and cost control. This ambitious workforce reduction initiative will require careful planning and execution to ensure that the company continues to meet the demands of its diverse international customer base while remaining competitive in an ever-evolving industry.

Related: Top Dairy Producers In The World

Financial Performance

In its financial report for 2022, FrieslandCampina reported a substantial turnover of €14 billion, a testament to its market dominance. Nonetheless, the dairy industry is not without its challenges, including fluctuating milk prices, shifting consumer preferences, and mounting environmental concerns. In response, FrieslandCampina is proactively adapting its operations to navigate these challenges while sustaining profitability. FrieslandCampina plans to cut 1,800 jobs worldwide in 2 years, aiming for €200 million savings to boost profitability and reduce annual costs by up to €500 million by 2026.

Navigating Industry Challenges

This strategic workforce reduction by FrieslandCampina reflects a proactive response to the multifaceted challenges confronting the dairy industry. By focusing on cost efficiency and profitability, the cooperative aims to maintain its position as a competitive and sustainable player in the global dairy market.

As FrieslandCampina embarks on this transformative journey, its actions are poised to shape not only its future but also the broader landscape of the dairy industry. Stakeholders, employees, competitors, and industry observers will closely monitor the cooperative’s progress as it strives to adapt to changing market dynamics while ensuring long-term sustainability.

Related: Fonterra’s Huge Profit Jump as Milk Prices Surge!

Source: Amsterdam, December 12, 2023 (Reuters)

FrieslandCampina
Posted on Categories Dairy

Top Dairy Producers In The World

Explore the top dairy producers of 2023 in this comprehensive report, featuring a detailed analysis of leading dairy-producing countries and companies. Gain insights into the global dairy industry with key data on production volumes and revenue, highlighting major players like Nestlé, Lactalis, and Dairy Farmers of America. Essential reading for industry professionals and those interested in global dairy market dynamics.

As of 2023, the top dairy producers in the world can be categorized into two main groups: countries and companies.

Top Dairy Producing Countries

  1. European Union
  2. United States
  3. India
  4. China
  5. Brazil

These rankings are based on the overall production of cow milk.

Top Dairy Companies by Revenue

  1. Nestlé (Switzerland)
  2. Lactalis (France)
  3. Dairy Farmers of America (United States)
  4. Danone (France)
  5. Yili Group (China)
  6. Fonterra (New Zealand)
  7. FrieslandCampina (Netherlands)
  8. Mengniu Dairy (China)
  9. Arla Foods (Denmark)
  10. Saputo Inc. (Canada)

Dairy production is crucial globally, providing essential nutrition, economic livelihoods, cultural value, and contributing to food security. Despite sustainability challenges, it remains a key sector, driven by continuous innovation and research.

Related: Top 10 Largest Dairy Producers in USA by Market Share & Volume

Dairy Farming

Top 10 Largest Dairy Producers in USA by Market Share & Volume

Overview of the U.S. Dairy Industry

The U.S. dairy industry is a critical sector in American agriculture. It includes the production, processing, and distribution of milk and milk products. The industry is known for its complexity, with a wide range of products from fluid milk to cheese, yogurt, and butter.

Criteria for Ranking

The top dairy producers are typically ranked based on various criteria, including:

  1. Milk Production Volume: The total volume of milk produced is a primary factor.
  2. Revenue: Financial performance can also be a key indicator.
  3. Market Share: The percentage of the market controlled by a producer.
  4. Geographical Spread: The extent of operations across different regions.
  5. Product Diversity: The range of dairy products offered.

Top 10 Dairy Producers in the USA (as of early 2023)

  1. Dairy Farmers of America (DFA)
    • Largest dairy cooperative in the USA.
    • Wide range of products including fluid milk, cheese, and dairy ingredients.
  2. Dean Foods
    • One of the nation’s leading fluid milk processors.
    • Brands include DairyPure, TruMoo, and Friendly’s.
  3. Land O’Lakes
    • Known for butter and cheese products.
    • Also a large cooperative with a strong presence in the Midwest.
  4. California Dairies, Inc.
    • Largest dairy cooperative in California.
    • Specializes in butter, fluid milk, and milk powder.
  5. Saputo Inc.
    • A global dairy company with significant operations in the USA.
    • Products include cheese, fluid milk, and specialty dairy items.
  6. Agropur
    • Canadian cooperative with substantial operations in the USA.
    • Known for cheese and other dairy products.
  7. Schreiber Foods
    • Private company specializing in yogurt, cheese, and other dairy products.
    • Supplies many food service and retail businesses.
  8. Great Lakes Cheese
    • Major producer of cheese and dairy products.
    • Supplies to retail and food service sectors.
  9. Kraft Heinz
    • Known for cheese products and other food items.
    • A major player in the dairy segment with brands like Philadelphia Cream Cheese.
  10. Leprino Foods
  • World’s largest producer of mozzarella cheese.
  • Supplies cheese to many pizza chains and foodservice providers.

Notes and Considerations

  • Market Dynamics: The dairy industry is subject to fluctuations due to factors like global demand, milk supply, and changes in consumer preferences.
  • Sustainability and Innovation: Many producers are focusing on sustainability and innovative practices to meet changing market demands and environmental concerns.
  • Recent Mergers and Acquisitions: The rankings can change due to mergers, acquisitions, and business restructurings.

Sources for Further Information

  • Industry Reports: Reports from USDA, FAO, and dairy industry associations.
  • Financial News: Bloomberg, Reuters, and industry-specific news sources.
  • Company Reports: Annual reports and press releases from the companies themselves.

Related: The Top 8 Dairy Companies

Milk

Additional content: 16 Biggest Milk Companies in the US

The Top 8 Dairy Companies

The dairy industry plays a vital role in providing essential nutrients to people all over the world. With advancements in technology and a growing global population, the demand for milk and milk products has been on the rise.

The global dairy industry is valued at around $600 billion, with a projected growth rate of 2.5% annually. The industry includes milk production, processing, and distribution of various dairy products such as milk, cheese, yogurt, butter, and ice cream. The industry is highly concentrated, with a few major players dominating the market.

Factors that drive the growth of the industry include population growth, urbanization, and changing consumer preferences towards dairy-based products. However, the industry faces challenges such as fluctuating milk prices, changing consumer preferences towards plant-based alternatives, and increased competition from non-dairy products.

The largest dairy companies around the world:

  1. Fonterra Co-operative Group Ltd. – Headquartered in New Zealand, Fonterra is the world’s largest exporter of dairy products and one of the largest dairy companies globally, with revenue of $16.6 billion in 2020.
  2. Dairy Farmers of America (DFA) – Based in the United States, DFA is a milk marketing cooperative that supplies milk to major dairy processors and brands. It had a revenue of $14.6 billion in 2020.
  3. Lactalis Group – A French dairy company, Lactalis is one of the largest dairy companies in the world, with a revenue of $15.8 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and yogurt.
  4. Arla Foods – Headquartered in Denmark, Arla Foods is a cooperative owned by dairy farmers in Sweden, Denmark, the UK, Germany, Belgium, Luxembourg, and the Netherlands. The company generated revenue of $13.2 billion in 2020.
  5. Saputo Inc. – A Canadian dairy company, Saputo is one of the largest dairy processors in the world, with a revenue of $9.4 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and butter.
  6. FrieslandCampina – A Dutch dairy company, FrieslandCampina is one of the largest dairy cooperatives in the world, with a revenue of $9.3 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and yogurt.
  7. Nestlé S.A. – A Swiss multinational food and drink processing conglomerate, Nestle is one of the largest dairy companies in the world, with a revenue of $91.4 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and yogurt.
  8. Danone – A French multinational food-products corporation, Danone is one of the largest dairy companies in the world, with a revenue of $27.5 billion in 2020. The company produces a wide range.

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