Page 25

AAK Annual Report 2016

USA 2016 once again brought strong organic growth for AAK USA across a broad spectrum of segments, including Special Nutrition (primarily Infant Nutrition), Chocolate & Confectionery Fats, and Dairy. Again, AAK USA reached DUHFRUGKLJKRSHUDWLQJSUR¿W3HQGLQJ86)RRGDQG'UXJ Administration regulations regarding removal of partially hydrogenated oils (PHOs) in all food categories has brought, and will continue to bring, numerous opportunities to co- develop new solutions with customers across all segments. Numerous investments in assets and people have been made in 2016 to support a strong Go to Market approach including a new Customer Innovation Center in Edison, New Jersey featuring a Chocolate & Confectionery Fats lab and a Bakery lab with equipment that enables our Customer Innovation team to mimic nearly all of our customers’ applications in these segments. Further investments are on the drawing board for both Dairy and Personal Care labs. AAK’s foodservice business continues to be a market leader in the Northeast and Mid-Atlantic states where our dressings, sauces and mayonnaise products continue to be standards of excellence. 2016 also brought the acquisition of California Oils Corporation at the end of August. With the acquisition of this business and processing facility in Richmond, California, AAK is now the only oils & fats processer in North America with facilities on both the East and West Coasts. This uniquely positions AAK to serve industrial food producers across the entire USA and Canada. Asia In 2016 operations in Asia progressed overall as expected and there were many positive developments. Several markets reported good organic growth and we see good opportunities across the whole region from the Middle East to all of Asia. AAK’s business in China has changed rapidly and is today fully operational. AAK has a strong sales and customer platform supported by an integrated supply chain and a plant for speciality and semi-speciality products. The plant will increase our capacity by approximately 100,000 MT when it is fully ramped up. China is undergoing a transition from an export-driven economy to a more domestic-driven one and this is expected to create further demand for our full range of solutions. AAK Kamani has been a real success story in India where we have presented many new offerings and launched a number of breakthrough innovations. Underlying growth in India is solid and we expect the market to develop strongly as demand continues to grow. During 2016, we invested in a new Customer Innovation Center in Mumbai as well as in increased capacity and plant upgrades. Our business in other parts of Asia as well as Turkey and the Middle East developed positively. We successfully continued to implement the AAK business model where the focus is on co-development and collaboration with customers either through our own operations (such as Turkey, the United Arab Emirates – from the second half 2016, Malaysia, Singapore, Australia and Japan) or through designated partners. We have successfully extended our brand promise throughout the Asian region supported by our investment in strategically located Customer Innovation Centers. We remain committed to this path of development in 2017 and beyond. 21


AAK Annual Report 2016
To see the actual publication please follow the link above