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AAK Insight Magazine nr 2 2016

3 Expanding AAK’s global footprint Expansion in growth markets has been identified as a strategic cornerstone in AAK’s company program AAKtion. This has resulted in, among other things, the construction of a new factory in Brazil, a strategic joint venture in India, and an essential refocusing plan for the large market in Russia. Insight met up with Gerardo Garza, Torben Friis Lange and Jan Lenferink, AAK Presidents for South Latin America, Asia and Europe respectively, to discuss the importance and the potential of growth markets. Brazil, India and Russia – what is it that makes these markets so interesting to AAK? Gerardo: With a management ambition to achieve 70 percent growth coming from medium- and fast-growing markets, South America is key. The region is interesting for AAK’s market coverage for several reasons – the broadening of geographies and categories, and in order to strengthen our customers’ reach, to name a few. Brazil in particular has an enormous potential for AAK, both in terms of volumes and value. Torben: The demand for edible oils in India has shown a steady growth which has been driven by improvements in per capita consumption, which in turn is attributable to rising income levels and higher living standards. Considering that the current per capita consumption level in India is lower than the global average there is a huge potential for growth. Jan: Russia is a large market for edible oil solutions with a well-established confectionery industry, a bakery segment under constant development, and an emerging dairy business. All three industries are driven by large multinationals and national companies, and there is a high interest in becoming less dependent on imports and more focused on local food production. Herein lies the growth opportunity for AAK. What is the potential in your market and within what particular segments? Gerardo: The potential in South America is quite significant for AAK. Besides the chocolate and confectionery segment, where we hold an indisputable leading position, we have great opportunities to develop and capture market shares within segments such as bakery, dairy, infant nutrition and foodservice. Torben Friis Lange Gerardo Garza López de Hereida Jan Lenferink


AAK Insight Magazine nr 2 2016
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