Benecol®
on a mission to lower world’s cholesterol
1995-2014
CONFIDENTIAL – Copyright®Raisio
Raisio Group 75 years old
1939-
1976-
• Wheat farmers founded a milling
company Oy Vehnä Ab and built
a mill 1939-42.
• Production of feeds, malts and
vegetable oils began 1948-50.
• Margarine production began 1956-57.
• Chemicals Division began with
a wheat starch factory 1976.
Expanded to Europe, US and
Far East.
• Raisio was listed on the Helsinki Stock
Exchange 1988-89.
• As Finnish milling industry merged in
the 1990s, Elovena became Raisio’s
brand.
1995• Benecol margarine launched in
Finland.
• Achieved global attention in 1996;
the company’s ownership base
expanded internationally.
• Stanol ester factory to Raisio 1998.
• Raisio’s Benecol partner launched the
products in the UK, USA, Ireland and
Benelux countries in 1999.
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2004-2013
•Divestment of Chemicals Division in 2004.
•Name was changed to Raisio plc
in 2005.
•Carbon label in 2008 and water label in
2009 on Elovena oat flakes.
• Divestment of margarine business in
2009.
•Acquisitions 2010-2012.
•Benemilk innovation 2012-2013; launched
in Finland.
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Raisio Group
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Activities in 9 countries
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Production units in 13 locations in 4 countries
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Personnel 1,900 of which 1/5 in Finland
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Listed on NASDAQ OMX Helsinki Ltd
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Head office
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Over 35,000 shareholders
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Production plant
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Sales office
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Brands
Brands Division
International and consumer-driven
Forerunner in plant-based and ecological nutrition
Strong brands, innovative novelties
Key market areas:
Finland, the UK, the Czech Republic, Russia,
Ukraine, Poland, Estonia and Sweden
Markets for Benecol brand are worldwide
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Brands Division
Food
Western Europe
Consumer
brands
Brands
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Food
Eastern Europe
Confectionery
Western Europe
Licensed
brands
* Joint venture of Raisio and Intellectual Ventures
Food
Northern Europe
Benecol
Benemilk Ltd *
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Licensed brands, Benecol
Original innovator in cholesterol-lowering functional foods
Benecol® products lower cholesterol effectively and safely
Plant stanol ester in Benecol products was among the first on the
list of health claims approved by the EU Commission
One of the world’s top ten nutritional innovations*
* Source: European Journal of Clinical Nutrition 2009
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Raised cholesterol is a global problem
It is estimated that
about half of the
working age
population has a
cholesterol level higher
than recommended!
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Benecol is a global brand
95 % of Benecol turnover is from
international markets
More than 120 different Benecol product
applications are currently being sold
Benecol is a leading innovator of
functional foods
Strategic partnership with leading
international companies such as Johnson
& Johnson and Emmi
Everyday, millions of people enjoy and
consume Benecol products
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Benecol products on the market in 27
countries and on 5 continents in 2013
FINLAND 1995 | UNITED KINGDOM 1999 | IRELAND 1999 | BELGIUM 1999 | LUXEMBOURG 1999 |
UNITED STATES 1999 | POLAND 2002 | UNITED ARAB EMIRATES 2002 | SPAIN 2003 | PORTUGAL 2003 |
SWITZERLAND 2003 | GERMANY 2004 | GREECE 2004 | CHILE 2004 | CYPROS 2007| ICELAND 2004 | MALTA 2006 | TURKEY 2006 | SOUTH AFRICA 2006 |
ECUADOR 2007 | INDONESIA 2008 | THAILAND 2009 | COLOMBIA 2009 | ROMANIA 2010 | LAOS 2011 | HONG KONG 2013 | THE PHILIPPINES 2013 |
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Raisio created the Cholesterol
Lowering Category
Launched in 1995, Benecol® was one of the first functional foods and the first
effectively cholesterol-lowering food in the world.
Profitable
1989
1995
Plant stanol ester
invented by Raisio
Launched in Finland
by Raisio
2010
120 products,
30 countries
2014
2,45bn€
category
Raisio and the Benecol brand has close to 20 years of experience in
marketing Functional Foods
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Benecol Story - Youtube
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Short History
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11.10.2012
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Some Milestones
1913 Cholesterol is shown to cause coronary
heart disease.
1951 Plant sterols are shown to prevent
cholosterol absorption
1986 Plant stanols are proven to be the most
effective and less absorbable than plant
sterols
1986- Cooperation with HUCS, UPM
Kymmene and Raisio Group
Interest in health effects of vegetable fat
1989 Stanol ester was invented in Raisio
Group
1995 First clinical study proving the efficacy
and safety of Benecol® was published.
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Some Milestones
1995 First Benecol® product (margarine) was launched in Finland
1996 New Benecol® ingredient plant was established in Raisio, Finland
1997-1998 McNeil and Benecol® cooperation began
1999 New Benecol® ingredient plant in Charleston, South Carolina, US
1999 Benecol® product launches in UK, USA, Benelux and Ireland
2000 US, FDA, Healt Claim
1999-2000 Marketing strategy I
Medical tone (14 % cholesterol lowering)
Product portfolio: only spreads
Consumers had difficulties in understanding the effects
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Some Milestones
2000-2001 Benecol® product launches in Scandinavia, Argentina and Poland
Marketing strategy II
Increasing number of product applications
Increasing number of partners for Benecol® ingredient
Easier concept
2002-2004 Benecol® product launches in France, Germany, Austria, Portugal, United Arab
Emirates, Switzerland, Greece, Italy, Chile, Iceland
2004- Marketing strategy III
Importance of Benecol® Brand
Once a day, convenience
Jointly with partners
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Some Milestones
2005-2013 Benecol® product launches in Estonia, Malta, Turkey, South Africa, Slovenia,
Ecuador, Latvia, India, Indonesia, Thailand, Philippines, Brazil, Mexico, Iceland…
Marketing strategy III (launched in 2004) continues
Importance of Benecol® brand
Once a day, convenience
Marketing strategy IIII – Benecol consumer products (Hong Kong, Portugal, Finland &
Poland)
• Instead of licensing Benecol brand to a local food partner, Raisio sells Benecol food to a local
distributor. We call this “consumer products” model.
• Raisio is responsible on the brand management, strategy on the market and marketing (consumer
& HCP) investments.
• Distributor executes local sales and marketing activities (incl. sales investments).
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What changed in the strategy?
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11.10.2012
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Initial assumptions…..
Market potential was estimated to be too big
Anticipated success was based on experiences in Finland
Public awareness and attitudes towards functional foods were not on expected level
The experience and competence of Raisio in international business – control of the
whole chain was not sufficient
Entirely new market segment – led to regulatory jungle
Technological background - chosen food matrix (only margarine)
Society to support functional foods financially
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…led to wrong strategy
One global partner (a medical company,
McNeil)
Build a ‘medical’ image marketing ‘avoiding death’
Yellow fats as the main opportunity
Super premium price strategy
Possible future competition ignored
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Plus the Initial Agreement
Besides Scandinavia, Poland and the Baltic States, McNeil controlled the entire world.
McNeil territory
Raisio
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Solution - a new strategy
Based on multi partner thinking
Ingredient supplier - license the Benecol® brand - partners will take care of sales and
marketing
Main focus in food applications - wide assortment, not only margarine
Target at strong local food companies/brands
Add value to existing leading brands rather than invest in building own food brand - add
value to their brands and business - ‘Benecol® inside’
Brand values: wellness, taste, naturalness, quality, reliability, health, well being, natural
part of healthy life
Global approach
Own Sales and Marketing for the active ingredient
Focus R&D on new food applications and new functional ingredients and bioactive
compounds
Expand to Food and Feed Diagnostics
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Plus Renegotiated McNeil agreement
Raisio is in charge of the main part of the world
Raisio territory
McNeil territory
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How does the market look like
today?
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Benecol® products in Finland
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Benecol products worldwide
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Sterol products worldwide
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NEW NUTRITION BUSINESS KEY TRENDS 2014
10 key trends
relevant for
Benecol business
regarding the
existing business
as well as new
opportunities for
the brand
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Small group assignment
You are representing a consulting company.
Raisio plc, Benecol Unit, is asking for your assistance on how to expand their
sales in Latvia.
1. Make a distribution plan for Benecol® functional foods on your market: via
supermarkets,chains, exclusive or selective distribution? Other options?
2. What else is important to know about the local food market ?
3. Your ideas for Benecol-partnerships in your country?
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Thank You.
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