The Barilla Group 1 The Barilla Group • Barilla was founded in 1877 in Parma, Italy, by Pietro Barilla Senior in a little shop selling bread and pasta. • Today Barilla is the largest Italian food products group, best selling brand of pasta in Italy and around the world, the largest producer of baked goods in Italy and the third largest in Europe. 2 Our Vision “We help people live better, by bringing wellbeing and the joy of eating into their everyday lives”. 3 Our Mission Since 1877 Barilla is the Italian Family Company that believes food is a joyful convivial experience, taste, a form of sharing and caring. Barilla offers quality products that are delightful and safe. Barilla believes in the Italian nutritional model that puts together superior quality ingredients and simple recipes, creating unique five-sense experiences. Sense of belonging, courage and intellectual curiosity inspire our behaviors and characterize our people. Barilla has always linked its development to people’s wellbeing and to the communities in which it operates. 4 Our Values • • • • • 5 Passion Intellectual curiosity Courage Trust Integrity Barilla’s family history Four generation of entrepreneurs 1877 Pietro 1912 Gualtiero and Riccardo 1979 Pietro 6 1947 Gianni and Pietro From 1993 Luca, Guido and Paolo Our history •1877 •The Barilla Family opens in Parma a shop selling bread and pasta •1965 •First bakery plant opens in the province of Parma •1975 •Mulino Bianco created • •1910 •First Pasta Factory established in Parma 7 •1991-1999 •Misko (Greece), Pavesi (Italy), Filiz (Turkey) e Wasa (Sweden) acquired Our history •1999 •First plant in USA •2001 •Yemina e Vesta acquired (Mexico) •2002 •Lieken (Germany), Harry’s (France, Spain e Russia) acquired •2004 •Academia Barilla established •2007 •Second plant in USA • •2008 •Merger between Barilla and Harry’s 2009 Opening of the European largest in-house durum wheat Mill in Parma 8 The Barilla Group in 2009 More than 2,500,000 Tons of products 15,000 employees 54 Production sites in 10 countries Annual Report 2009; Internal Data Barilla 9 20 Leading brands Net sales 4,171 Euro million Export to over 125 Countries The Barilla Group in 2009 • • • • 2,600,000 tons of cereals acquired in 2009 70,000 tons of tomatoes (100% Italian) 10,000 tons of chocolate (cocoa, cocoa creams and chocolate) 20,000 tons of milk and by-products (fresh milk, cheese and butter) • More than 700 million of eggs per year from 2.5 million hens • More than 60,000 tons of sugar • More than 3,000 trucks carry every day our products worldwide Internal Data Barilla 10 Our presence in the world (2009) 11 The Barilla Group Barilla Holding S.p.A. 85% Barilla Iniziative S.r.l. Barilla G. e R. Fratelli S.p.A. Number 1 logistics group 12 15% Lieken AG Gafina B.V. From breakfast to dinner •Bakery products Meal solutions •More than 150 items of biscuits, rusks and morning goods More than 400 items of pasta and 40 different recipes of sauces 13 From breakfast to dinner Snacks Breads More than 100 items of minicakes and soft snacks More than 120 items of soft and dry breads Smoothies 14 APPLIED RESEARCH IN DURUM WHEAT FOR SEMOLINA PASTA DURUM WHEAT/PASTA PRODUCTION CHAIN Crop Storage Milling Barilla volumes 1.300.000 ton/year of durum wheat 800.000 ton/year of pasta production 80% vertical integration 90% wheat of local origins Pasta production Paolo Cabrini – “Current Hot Topics of the Global Durum Wheat Sourcing Chain” WORLD - Major Durum Wheat Production Areas Source: Barilla Pasta Trend - Economic International Conference – Bologna, April 24th 2010 17 BARILLA DURUM MILLS AND PASTA PLANTS Pasta plant Mill INTEGRATED SUPPLY CHAIN Market analysis Harvest mapping Yield and quality forecast BEST PRACTICES RESEARCH & MANAGEMENT INFORMATION BARILLA DURUM WHEAT QUALITY & SAFETY MANAGEMENT TOOLS Food Safety Management System Exclusive Research, Monitoring and Purchasing Integrated System Integrated production chain Crop & storage disciplinaries Breeding & Research projects Cultivation Contracts RESEARCH: DURUM WHEAT BREEDING BARILLA DURUM WHEATS Data Cropping area Quality performances Yield Zenit 1993 North Color +25% Average/Low Svevo 1996 South Protein +10% Color +15% Average/High consistent Baio 1998 Center North Protein +10% Average/High Normanno 2002 Center South Gluten +10% Protein +10% High 2009 Center South Gluten +25% Protein +15% Color +10% Average Variety Aureo Tolerance to Fusarium Head Blight Breeding on going FOOD SAFETY DURUM WHEAT FOOD SAFETY RISKS/TOOLS Main putative risks Production chain steps Seed production Prevention, management & control tools GMO Variety Cross contamination • Fusarium forecast model • DON mapping of DW harvest; • Other field contaminant mapping; • Campaign risk assesment • Crop Disciplinary; Crop chemicals other seeds micotoxins agronomy harvest logistic heavy metals Storage cross contam. pre-cleaning grain protection (chemicals, cold, CO2) logistic (truck, train…) micotoxins insects chemical residues • Supplier Audit & omologation • Storage desciplinary • HACCP / Contaminant control plans; • Lot certification of guarantee • DW lot control; Barilla Mill residue concentration Residue reduction wheat cleaning milling by-products semolina • DON/other micotoxins reduction studies, • Support to associations for UE limit definition; SINSIAF project Ministero dell’Istruzione, Università e Ricerca Progetto n. 12792 • Prevention − Knowledge of Fungi ecology − Simulation model of Fusarium contaminantion − Selection of durum wheat lines tolerant to Fusarium development • Monitoring Objective “Development of integrated system to manage Food Safety within durum wheat/pasta supply chain” • Fungi toxin-producer • Micotoxins • Chemicals residues • Heavy metals − Fusarium in soils (Italy regions) − Dynamic maps − Effect of processing steps on micotoxin content (DON) • Rapid methods of analysis − Multitasking approach − Technology advancements • Management − Data integration in real time − Advanced tools to support decisions making − Quality insurance program SINSIAF project Main results Methods and equipments for rapid detection of contaminants Development and deployment of knowledge Selection of durum wheat varieties tolerant to Fusarium Predictive model of Fusarium micotoxins development BEST PRACTICES FS: Traceability System integrated on the entire durum wheatwheat-semolina chain (Agri 2000) A. Evaluation of innovations in organization for traceability along durum wheat chain. ◘ Elaboration of an Agronomical Form based both on farmers needs and agricultural practices requirements ◘ Preparation of a manual with guidelines for the management of risk and traceability along the production chain FS: Protection of durum wheat in storage conditions (University of Milan) ◘ Grain screening before storage reduces significantly insects infestation during storage. The effect is stronger on Tribolium spp., spp., but weaker on Rhyzopertha dominica and Sitophilus oryzae. oryzae. ◘ Biological pest control can be applied in storage facilities after cleaning and before storage, but not directly on grain or semolina. GOOD AGRONOMY PRACTICES BARILLA: CULTIVATION AND STORAGE OF HIGH QUALITY DURUM WHEAT • First release in 1994 and regularly updated • The Manual includes best practices for appropriate cultivation and storage of Durum Wheat defined by Barilla Company in order to achieve excellent quality and safety standards required for Barilla Pasta. • The Manual is articulated in two main parts: Package of agronomy prescriptions to be complied for the cultivation of durum wheat to be supplied to Barilla Company; Best practices to be adopted during storage to guarantee correct preservation of durum wheat to be supplied to Barilla Company. DON PREDICTIVE MODEL: DELPHI Meteorology DON risk assessment model DON geographic risk assessment Agronomic Management 41.80 Plant phenology model 41.60 41.40 41.20 15.00 15.20 15.40 15.40 15.60 15.60 15.80 16.00 16.20 Soil Characterization DON PREDICTIVE MODEL • Weather condition, starting from earing, are critical (about 50% relevance) on fungi development and DON production. • Agronomy management is the second relevant factor • Simulations are run twice per week starting from earing both for “climatic risk” and “global risk” (climatic + agronomy) for 3 main scenarios • Regions: Emilia Romagna, Toscana, Marche, Puglia, Basilicata + Mantova and Rovigo districts The output: Climatic risk assessment DON occurrence for agronomy scenario Risk to exceed the limit for agronomy scenario APPLIED RESEARCH IN BARILLA DURUM WHEAT MANAGEMENT • PREVENT – Breeding – Good Agronomy Practices – Good Storage Practices • PREDICT – Predictive models – In field controls • CONTROL – Sampling network – Rapid Methods THANK YOU FOR THE KIND ATTENTION www.barillagroup.com