International Business Economics
Firms
Nestlé
World Sales Consolidated (in Euro) can be found in the “Managerial Report 2008” (Nestlé
website) and amounts 69288 million EUR while in 2007 the total sum was 65421 million
EUR. (If we can believe the difference between the numbers in CHF and EUR the exchange
rate used in their reports is 109908/69288=1,58625CHF/EUR). This exchange rate we need to
figure out the world sales in sector and the EU sales in sector, which are not given in EURO.
The numbers of World Sales In Sector can also be found in the “Managerial Report 2008”
and consist of two segments “Milk products and Ice cream” and “Nestlé Nutrition”. It is
logical the former contains dairy, although the latter contains also other products. “Nestlé
Nutrition” holds the following divisions as found on the nestlenutrition.com website (Infant,
Performance and Healthcare Nutrition and Weight Management) and as Infant nutrition is the
biggest division within Nestlé Nutrition and contains mostly dairy-based products. So both
numbers we will include these numbers (Respectively €12,94 billion and €6,56 billion, a total
of €19,5 billion)
EU Sales In Sector can be found as followed; in the European zone, the two segments “Milk
products and Ice cream” and Nestlé Nutrition amounts respectively €2,13 billion and €1,88
billion, with the total sum of around €4 billion.
The estimated production in the EU should be laying around a quarter to a third of the
global production. (around 30%)
Danone
World Sales Consolidated are estimated at €15,22 billion (Annual Report 2008)
World Sales In Sector includes (back again) two different divisions, one is the “Baby
Nutrition,” the other is the “Fresh Dairy Products”. And back again baby nutrition is defined
(Annual Report 2008 – Danone) The Baby Nutrition division’s business covers milk powder
and formula for infants and more varied offerings for toddlers aged from 18 to 36 months. So
we can conclude that this covers mostly dairy products. With sales of the “Baby Nutrition”
close to €2.8 billion in 2008 and the sales of the “Fresh Dairy Producs” close to €8,7 billion,
the total sales in the sector amounts around €11,5 billion.
EU Sales In Sector is hard to find, but according to the following numbers we think this
should lay around €7,45 billion. Europe accounts for €1,88 billion (67%) of the “Baby
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Nutrition” sales and €5,57 billion of “Fresh Dairy Products” sales (55,7% of Western Europe
and 67,6% of Central Europe)
The estimated production in the EU should be laying around two third of the global
production when we look at the numbers of personnel within Europe.
Remark: Central Europe is defined by Danone including Russia and whole Eastern Europe
Fonterra
Remark Fonterra wrote their financial statements after 14 months so all numbers are 12/14 to
compare them with the other companies. Another argument is the use of New Zealand dollars
in their financial report, and we will use a exchange rate around 2 NZ Dollar/EUR(which is
the mean average of the exchange rate that year) to put the numbers into EUR for a better
comparison with the other companies. (as the average US dollar/EUR rate was 1,5 and the
NZ dollar/US dollar 0,75, this can be more or less right)
Their World Sales Consolidated as found in their financial statements 2008 amounts
NZ$19,512 billion during 14 months so around €8,4 billion for 12 months.
World Sales In Sector is the same because they do not offer any other products/services.
EU Sales In Sector is not worth mentioning.
Therefore the estimated production in the EU is 0%
FrieslandCampina
Their World Sales Consolidated amounts €9,454 billion.
As their product ranges only dairy-based products and a limited amount of ‘appelsientje’ we
can suggest that the whole World Sales Consolidated are also the world sales in the sector.
EU Sales In Sector were €6,91 billion as mentioned in their annual report.
Based on the numbers of sales and workers/factories we believe that 90% of the production is
estimated
Dairy Farmers of America
Their World Sales Consolidated amounts € ??
Ik vind er geen officieel jaarresultaten van????? Zowiezo wel nul in europa!
Unilever
Their World Sales Consolidated amounted €40,523 billion
Their World Sales In Sector were €7,694 billion because only Ice Cream and Beverages are
mainly dairy based products. The rest “Savoury, dressings and spreads”, “Personal care” and
“Home care” are not included in the dairy sector
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There is a problem to work out the EU Sales in Sector as Central and Eastern Europe are
integrated in the figures together with Asia and Africa. And these geographical sales are not
explained in who far they come from the different products. I believe this must lay around €3
billion.
Kraft Foods
A problem is that the numbers are mentioned in American Dollars which gives us wrong
interpretation of the numbers, the (+/-) mean average of the exchange rate is 1,5Dollar/EUR.
The World Sales Consolidated amounts €28,134 billion
The World Sales In Sector is a problem to find, for example LU is a solid product (snack) and
dairy based, than in the annual report the European Union is not divided in further segments,
so it is almost impossible to find a clear result of EU and World Sales in Sector.
Lactalis
Could not find any annual report and numbers are based on website information and the
procentual in dairy based products. Not much is exported so we think most of the sales is
situated in Europe
Americas Dean Foods
A problem is that the numbers are mentioned in American Dollars which gives us wrong
interpretation of the numbers, the (+/-) mean average of the exchange rate is 1,5Dollar/EUR.
The Worlds Sales Consolidated amounts €8,3 billion
The World Sales In Sector is valued at 78,7% of total net sales, around €6,533 billion
The EU Sales In Sector is easy to measure as Americas Dean foods are mainly sold in the
American states. Geographic Information — Less than 1% of our net sales and long-lived
assets relate to operations outside of the United States.
Estimated Production in the EU is 0%
Arla Foods
A problem is that the numbers are mentioned in Danish Chrones?? which gives us wrong
interpretation of the numbers, the (+/-) mean average of the exchange rate is 7,5DKK/EUR.
The Worlds Sales Consolidated amounts €6,6 billion and because Arla Foods concentrate
on dairy based products these €6,6 billion are also The World Sales In Sector.
The EU Sales In Sector is easy to measure as 90,7% is sold within the EU (around €6 bilion)
Estimated Production in the EU is 90%
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