Valio's experience in lactose-free dairy market
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1 Valio's experience in lactose-free dairy market Norks Meieriteknisk Forening Maritta Timonen
2 Valio Ltd Owned by co-operatives; milk producers Milk intake in Finland million litres Net sales 2.0 billion 18 plants Personnel ,5 7,7 29,8 12,1 44,2 Fresh dairy products Butter and spreads Cheese Powdered ingredients Others Valio Oy
3 Per capita consumption of dairy products in Finland litres/person/year 160 Milk , Source: Elintarviketieto Oy 3
4 Development of Valio low-lactose and lactose-free technology Studies on the hydrolysis Low-lactose products become mainstream in Finland Research on lactose-free process Lactose-free milk drink launched in Sweden Extension of Lactose-free product range Valio Zero Lactose ingredients Low-lactose Low-lactose Lactose-free milk powder UHT milk milk drink launched LACTOSE INTOLERANCE Studies on the prevalence of lactose First intolerance publications Approximately 17% of Finns are lactose intolerant High public awareness of lactose intolerance Lactose-free milk drink launched in Belgium First technology licensing agreement 2009 Lactose-free milk drink launched in Baltic countries
5 Valio Lactose-free milk drink in 2001 With genuine milk taste Less than 0,01 % lactose ESL ensured long shelf life Patented technology Valio Oy
6 Valio Eila vs. low lactose vs. regular milk Valio Eila TM lactose <0.01% original,fresh milk taste 35% less carbohydrates 20% less calories milk drink Low lactose (Lactose hydrolyzed) lactose <1% sweet taste same energy value as in normal milk milk Regular milk lactose 4,8% original,fresh milk taste same energy value as in normal milk Valio Oy
7 A lot of positive consumer feedback 12 million litres sold in the second year First year s target was achieved in few months Consumer demand for other lactose free dairy products 7
8 Valio low lactose and lactose free milk sales in Finland new consumers attracted low lactose milk (sweet taste) lactose free milk Source: Nielsen Consumer Panel 8
9 Valio lactose-free in Sweden Consumer demand for more products
10 Not a niche anymore Valio Oy
11 Branding
12 Valio Eila TM Product range 40 products 100 SKUs
13 Recent successfull launches Greek yoghurts Set type yoghurts Fruity yoghurts - 24% fruit Valio Oy
14 Valio Eila TM products in Finland cooking products Valio Oy
15 Valio EIla TM low fat milk drink in Finland today Valio Oy
16 Examples of food service products Lactose free forest berry yoghurt 5 kg Lactose free fresh cheese 3 kg Lactose free semiskimmed milk drink 10 L Lactose free salad cheese (feta type) 3 kg Valio Oy
17 Valio Eila TM Zero Lactose in Russia and Baltic countries Valio Oy
18 Valio Zero Lactose lactose free skimmed milk powder (SMP) whole milk powder (WMP) Applications: Confectionery Ice cream Bakery products Desserts Ready meals (patés, soups and sauces) Meat products Infant formulas Nutritional supplements Dietary products Pet food Valio Oy
19 Communication to consumers - Sweden in 2002 Do you have gas and tension in your stomach? More than half a million Swedes have a milk stomach and even more may have it without knowing about it! You can suffer from milk stomach if you can t tolerate lactose. Therefore we at Valio have made a lactose free milk that tastes as good as normal milk.
20 Communicating to consumers Valio Oy Valio Oy
21 Lactose free milk with great taste Valio Zero Lactose TM technology allows re-position of lactose-free milk as a modern healthy drink, which is suitable for all has exceptionally good taste has 0% lactose has 35% less carbohydrates than regular milk Valio Oy
22 Emmi: Lactose free products good day - less carbohydrates - more protein yoghurt milk drink yoghurt drinks
23 Lactose free milks by Valio Zero Lactose technology Finland Sweden Baltic countries Russia 23
24 Valio Zero Lactose solutions Valio Zero Lactose technology Produced and sold by Valio Produced and sold by licensees CONSUMER PRODUCTS Valio Eila fresh milks and milk products INGREDIENTS Valio Zero Lactose milk powders CONSUMER PRODUCTS Fresh milks and milk products under licensees brands Sales in Finland, Sweden, Russia, Baltic countries Sales to food manufacturers globally Sales in Norway, Switzerland, Spain, South Korea, The Netherlands Valio Oy
25 Prevalence of lactose maldigestion 90% Asians % African Americans and Native Americans 53% Hispanic 6-19% White population Valio Oy Sahi T. Genetics and epidemiology of adult type hypolactasia. Scand. J Gastroenteol 1994; 202: 7S-20S. Vesa T et al. Laktoosi-intoleranssi ja sen hoito. Jyväskylä: Gummerus Kirjapaino Oy, Almon R et al. Prevalence and trends. In adult-type hypolactasia.scand J. Gastroenteol 2007: 42: Borinskaya SA et al. Molecular diagnosis and frequencies Molekuyarnaja biologia 2006; 40: For internal use only
26 New product introductions of lactose-free and lactose-reduced food & drink, (% share) 26 Source: Mintel GNPD
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