Bakery
Our bakery business continued to face some challenges
LQDOWKRXJKSUR¿WDELOLW\KDVVHHQSRVLWLYHGHYHORS-
ments, especially in the US and Western Europe, due to an
improved product mix.
The new factories in China and Brazil are gaining ground.
New bakery application centers in the US and the UK will
further support the shift towards value-adding solutions,
IRFXVLQJRQVSHFL¿FDSSOLFDWLRQDUHDVVXFKDVFDNHVELVFXLWV
and cookies, and pastries.
In 2017, butter prices reached record levels around the
globe. Therefore, we developed butter substitutes to support
biscuit, pastry and cake producers and provide cost-in-use
EHQH¿WVDOOWKHZD\IURPSURGXFWLRQWRHQGSURGXFW
Our opportunity and innovation pipeline looks solid and
ZHHQWHUZLWKFRQ¿GHQFHWKDWWKHODXQFKHVZHKDYH
planned will deliver desired business growth, both in regards
WRYROXPHDQGSUR¿WDELOLW\
Dairy
2017 was another strong year for our dairy business with
double-digit volume growth. North Latin America and the US
experienced particularly strong growth and our new operations
within the Brazilian and Chinese markets showed great
development. Europe also showed good growth with the
HFHSWLRQRI6FDQGLQDYLDZKLFKZDVÀDW
The plant-based dairy segment, forecast to show doubledigit
volume growth over the coming years, continued to
demonstrate its great potential. AAK has seen a number of
NH\ZLQVWKURXJKRXWWKH\HDU7KLVFRQ¿UPVWKHVHJPHQWDV
an important contributor to accelerate growth. Through our
co-development approach we are well positioned to continue
such strong business development.
Special Nutrition
Special Nutrition continued to show strong global growth
during 2017. The main driver was our Infant Nutrition
sub-segment which showed double-digit growth. During
2017, we started to deliver our Akonino® product
range from our new factories in Brazil and
China as well as from our US factory in
Richmond, California, which was
acquired in 2016. Akonino®
Organic was in high
demand especially in the Chinese market. Our INFAT®
product range, sold through Advanced Lipids AB, a joint
venture of AAK and Enzymotec, also showed double-digit
growth.
,Q0D\ZHGHOLYHUHGRXU¿UVWYROXPHVRIRXUSURGXFW
range Akovita® to a customer within Senior Nutrition, and
we have since then continued to deliver this new product to
multiple customers. Akomed®, our product range for Medical
Nutrition, is showing steady growth globally.
Foodservice
Within Foodservice, AAK has a very strong market focus
DQGZHGHOLYHULQQRYDWLYHVROXWLRQVWKDWUHÀHFWWKHQHZHVW
market trends. AAK recognizes the regional variations in the
taste and functionalities that our customers seek. We strive
to adapt our solutions and concepts to create the greatest
SRVVLEOHEHQH¿WIRURXUFXVWRPHUV¶EXVLQHVVHVDQGIRUWKH
end-users’ food experiences.
2017 was a mixed year for our Foodservice business. We
had another strong year in the UK, growing faster than the
market, while in Scandinavia we faced some challenges
due to changing market and competitor dynamics. Our
Foodservice business in the US had a record year, delivering
market share gains through strong customer support and
connectivity.
During the past year, we have upgraded and expanded
our Customer Innovation Center for Foodservice in Scandinavia,
where we work with customers and suppliers to
GHYHORSQHZUHFLSHVZLWKJUHDWÀDYRUVDQGWHWXUHV,QHDUO\
2018, we have done the same for our corresponding center
in the UK, and we aim to be back in steady growth mode in
a market that is rapidly evolving as consumers’ behaviors
are changing and as their propensity to eat out is on the
increase.