As a well-established operator in these areas, we have
extensive experience of handling such issues. In addition,
we operate with a deliberate risk management strategy.
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Trade barriers.
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Changes in national or regional legislation, e.g. the
introduction of protective tariffs and taxes, which prevent
AAK from operating in a free market.
Environmental and health-related legislation.
Trade sanctions and export controls
AAK is committed to conducting business in accordance
with applicable trade sanctions laws and export control
regulations which AAK believes are important tools in the
international community’s strive to inter alia improve human
rights. AAK will not tolerate any violation of trade sanctions
laws, export control laws or related regulations by its
employees.
This means that AAK will not engage, directly or indirectly,
in any business, dealing, or transaction prohibited
by applicable trade sanctions or export control regulations.
Furthermore, AAK and its employees will not carry out any
direct or indirect business activities with any person, entity
or government targeted by trade sanctions, nor export
goods or services subject to applicable export control laws
without required licenses and/or approvals from the relevant
authorities.
Changes in the competitive environment
The sector in which AAK operates is undergoing structural
change. As a sector that has existed for just over a century
and has a fundamental dependence on natural products,
there is great pressure for more intensive development.
This includes demands for sustainable, ethical production,
where producers accept responsibility for social issues and
the environmental impact of their operations. AAK operates
on the basis of an organic growth and selective acquisition
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dations for future acquisitions.
There is intense competition in the industry. Several global
competitors deliver large volumes of bulk products with
limited margins. Our response is to focus more on products
with better margins and higher-added value. These include
confectionery products and cosmetics, as well as valueadding
ingredients for the bakery, dairy and infant nutrition
industries.
The health trend
There is an ongoing debate on healthy alternative foods.
The trans fat debate, for example, has been quite heated on
occasion, resulting in a greater use of raw materials such as
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and has a broad application area – from chocolate to foods
and cosmetics. A great alternative to hardened fat, it is semisolid
at room temperature, making it an attractive choice in
the production of many foods. By using palm oil, trans fats
can be eliminated from many food products.
We have the ability to adapt our product range quickly
to the latest trends in the health debate. This is largely due
to the fact that we work with all types of vegetable oils and
can reformulate our products fairly easily to meet customer
needs. We focus strongly on product co-development with
our customers. This limits the risks involved in commercializing
new products.
Regulatory measures also pose a risk. Active involvement
in Corporate Social Responsibility-related issues is, therefore,
becoming increasingly important to forestall legislation
on issues that are a natural development of human
requirements.
Changes in external factors
Business operations are affected by raw material prices,
transport costs, energy prices, interest rates and exchange
rates. Our employees are experienced in reacting quickly
to changes in external factors and adapting operations,
products and services to customer needs.
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