1 ST PORTUGAL JAPAN BUSINESS SESSION. Dr. Jorge de Melo Vice-Presidente da Sovena Group

Transcription

1 1 ST PORTUGAL JAPAN BUSINESS SESSION Dr. Jorge de Melo Vice-Presidente da Sovena Group

2 Olive oil for the world

3 Agenda SOVENA today Asia-Pacific Olive Oil consumption trends Japanese Olive Oil Market

4 Sovena is the market leader in the olive oil industry Source: Sovena 100% family owned company Mello family created the first industrial group in Portugal more than 100 years ago In 2001, the family has decided to focus on the edible oil industry The largest olive oil company worldwide 20% growth in sales in 2013 reinforced SOVENA s overall market leadership, as well as the company position as the largest private label olive oil supplier worldwide In 2013, SOVENA sold 200k tons of olive oil, c. 8% of the world consumption SOVENA s growth is supported in the company s capacity to lead innovation in a very traditional market SOVENA is a structurally sustainable company, relying on a carbon neutral operation 1,6 Bn US$ sales (2013) coming from more than 70 countries SOVENA is currently the largest Spanish olive oil exporter (the main producing country in the world), and the largest olive oil importer in USA The company is the market leader in Portugal, Spain, USA and Central Europe 33

5 Sovena Group is composed by 4 business units Biodiesel Agriculture Oilseeds Consumer Goods Portugal España Portugal España USA M.E.N.A Angola Brasil Source: Sovena 34

6 Sovena in 2001: Portugal is the only market with direct operations and few export markets Direct Operations Export markets Source: Sovena 35

7 Sovena in 2014: Global presence with direct operations in 7 countries and more than 70 export markets Direct Operations Export markets Source: Sovena 36

8 Sovena has the largest olive grove on earth managed single handedly with more than hectares Elaia Partnership with Atitlan Investment +200 M Control and traceability over 100% of the supply chain of Olive Oil Olive Groves hectares of olive groves in Portugal, Spain and Morocco The largest olive grove on earth single handed managed Mills Spain Portugal Morocco Chile Agriculture Source: Sovena 37

9 Sovena follows a dual tracking strategy (brand and private label) in our key markets Market Quality brands with a competitive cost structure leveraging our private label business and volume Source: Nielsen, Sovena 38

10 Agenda SOVENA today Asia-Pacific Olive Oil consumption trends Japanese Olive Oil Market 39

11 World olive oil consumption exceeded 3.100k tons in 2013 Olive Oil Consumption in 12/13 (k tons) 3,500 3,000 2,500 Mediterranean Basin 296 (66% of total) (10% of total) (24% of total) European Union Rest of the World 3,146 2, ,500 1, Italy Spain 1 Greece Rest of Mediterranean Basin 2 Portugal Germany UK Rest of EU USA Brazil India China Russia Rest of World Total 1. Value for full year Includes Algeria, Cyprus, Croatia, Egypt, Israel, Jordan, Lebanon. Libya, Morocco, Syria, Tunisia, Turkey, Malta Source: IOC; Euromonitor 40

12 Asia Pacific represents ~6% (~180k tons) of the worldwide olive oil consumption in 2013 Olive Oil Consumption in 2013 (K tons) Source: IOC 41

13 There are several factors that explains the olive oil underdevelopment in the Asia Pacific region Consumer cooking and eating habits not aligned with olive oil (lack of tradition on olive oil) Olive oil is a late comer in the Asia-Pacific culture Low presence of western cousin up to date Lack of education in olive oil Consumers don t know how to use olive oil Lack of understanding of quality difference between different olive oil Lack of clear understanding of the benefits Price as an entry barrier Prices is very expensive for a large portion of the people Important price gap vs. other oil substitutes to be reduced Modern trade still emerging in many countries in Asia-Pacific 42

14 Agenda SOVENA today Asia-Pacific Olive Oil consumption trends Japanese Olive Oil Market 43

15 Olive oil consumption in Japan has increased ~90% since tons Imports 8% higher during the first semester of 2014 comparing to 2013 Increase due to Extra Virgin olive oil, representing 75% of all imports in

16 Japanese market expected to have a moderate growth based on higher consumption per capita Market size of ~51k tons in 2013 with expected growth in next years Consumers are willing to pay a premium for functional foods Market profile Consumption per capita is 0,35 liter/year; low purchase frequency Market is 70% EVOO and 30% Pure: EVOO imports doubled since 2007 Main origins are Italy and Spain, representing more than 90% olive oil Spain became the more important origin in 2013; a trend confirmed in 2014 Thanks to its healthy-related characteristics, olive oil has drawn the attention of Consumers an aging population that is concerned with health related issues 40% of consumption is done by people older than 55; 65% are older than 40 Key usage barriers are high prices and lack of knowledge on how to use olive oil Penetration at ~64% of the Japanese population 45

17 Local brands dominate the market, sourcing increasingly from Spain Distribution channels weight for olive oil: Retail (56%) + HORECA (21%) + Others (23%) Retail market Main retailers in Japan for olive oil: Aeon, Seiyu (Walmart), Seven & I Private label is very relevant in the Japanese market Small formats prevail (250ml, 500ml), specially in PET Consumer still associates Italy to higher quality olive oil, which explains the premium paid compared to the olive oil coming Spain (~45% at import; ~23% at retail) Competitive environment The situation has been changing with local players recognizing more and more the good quality/price relationship of the Spanish olive oil Nishhin Oilio Group and Ajinomoto Oil Mills control ~70% of the market Most relevant brands: Bosco, Ajinomoto, Filippo Berio, Bertolli, Carbonell, as well as both AEON (Top Valu) and Ito Yokado (7&I) private labels 46

18 Japan is a very challenging but rewarding market Quality Very demanding quality specifications, namely on pesticides residues. SOVENA has defined a specific Extra Virgin olive oil profile for the Japanese market to comply with the strict regulations and with our clients demanding requirements. Tolerance Japanese clients accept the existence of a learning curve from their suppliers. However, they require responsiveness and immediate improvements. Partnership Once trust exists, the retention rate is very high. New business requires patience and to seek the opportunity when client decides to change supplier. Quality survey remains (product, logistics). Sovena has set-up a policy of permanent follow-up and close customer relationship management. 47

19 Thank you