The Top 10 Dairy Companies

SUMMARY

Increasing prices of raw materials, demand for dairy products in emerging markets and the drive for health and wellness, are putting pressure on dairy manufacturers to develop innovative but cost effective products. Key growth strategies for many of the top companies include strengthening brand portfolios and expansion in growth markets such China and India. The Top 10 Dairy Companies is a report published by Business Insights that analyzes the innovation and growth strategies of the top 10 players in the dairy industry.

This report identifies the product areas that the top 10 players are seeking to develop and also highlights the respective markets where each individual company is looking to grow. It also examines the comparative strengths, weaknesses, opportunities and threats facing the world's leading dairy companies. Benchmark your performance against the leading dairy companies using market share and financial data in this report.

TABLE OF CONTENTS

Executive Summary

• Market context
• Nestlé
• Danone
• Dean Foods
• Unilever
• Lactalis
• Dairy Farmers of America
• Arla Foods
• Kraft Foods
• Friesland Foods
• Parmalat
• Conclusions

Chapter 1 : Introduction

• What is this report about?
• Methodology

Chapter 2 : Market context

• Summary
• Introduction
• Market overview
• Market size and growth
• Top trends in the dairy market
• Increasing raw material prices
  • Growing demand for dairy products in China and Asia
• Contracting European supply
  • Adverse climatic conditions in Australia and New Zealand
  • Rising cost for animal feed
• Shift towards health and wellness

Chapter 3 : Nestlé

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Popularly positioned products (PPPs)
• DSD initiative
• Luxury and premium products
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong brand portfolio
  • Strong presence in emerging markets
• Weaknesses
  • Product recalls
• Opportunities
  • Expansion in Brazil
  • Growing health concerns
• Threats
  • Rising milk prices

Chapter 4 : Danone

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Geographic expansion
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong market position in FDP market
  • Strong brand portfolio
• Weaknesses
  • Overdependence on Europe
• Opportunities
  • Entering the organic food market
  • Geographic expansion
• Threats
  • Government regulations

Chapter 5 : Dean Foods

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Leveraging DSD network
• Morningstar and WhiteWave platforms
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong market share in the US
  • Strong brand portfolio
• Weaknesses
  • Customer concentration
  • Low EBITDA
• Opportunities
  • Growing demand for organic dairy products
  • Expansion of farmers network
• Threats
  • Increase in raw material and dairy commodity costs

Chapter 6 : Unilever

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Restructuring business
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong market share in the ice cream segment
  • Strong R&D capabilities
  • Weaknesses
  • Decreasing cash flow from operation
• Opportunities
  • Increasing health consciousness
• Threats
  • Seasonal demand for ice cream

Chapter 7 : Lactalis

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Expansion through acquisitions
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong market position in French milk market
• Weaknesses
  • Weak internal control
• Opportunities
  • Increase of production capacity
• Threats
  • Price fluctuations in dairy products

Chapter 8 : Dairy Farmers of America

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Investing In core business units
• Innovation and NPD
• SWOT analysis
• Strengths
  • Leadership position in the US
• Weaknesses
  • Divestment of plants
• Opportunities
  • Growing butter and margarine market in the US
• Threats
  • Increasing competition

Chapter 9 : Arla Foods

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Focus on core business
• Drive growth in selected markets
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong sales growth in the UK
• Weaknesses
  • Lagging behind on revenue growth
  • Geographic concentration
• Opportunities
  • Increasing whey processing
  • Opportunities in Algeria
• Threats
  • Consumer boycott
  • Falling milk supply

Chapter 10 : Kraft Foods

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Strengthening brand portfolio
• Creating brand awareness
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong distribution network
• Weaknesses
  • Geographic concentration
• Opportunities
  • New offerings in Cheese
  • Cost cutting
• Threats
  • Consolidation of retail sector

Chapter 11 : Friesland Foods

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Strengthening position in Southeast Asia
• Concentrating Central European production
• Vision 2015
• Innovation and NPD
• SWOT analysis
• Strengths
  • Strong market and brand position
  • Co-operative business structure
• Weaknesses
  • Declining profits from Asia and Africa regions
• Opportunities
  • Friesland Foods and Campina merger
  • Focus on low-income segment in Indonesia
• Threats
  • Rising commodity costs

Chapter 12 : Parmalat

• Summary
• Company information
• History
• Recent financial performance
• Acquisitions and divestments
• Growth strategies
• Focus on functional and premium products
• Innovation and NPD
• SWOT
• Strengths
  • Strong position in Italy
• Weaknesses
  • Major presence in mature markets
• Opportunities
  • Growing trend towards health and wellness
• Threats
  • Competition from private labels

Chapter 13 : 11- 20 companies

• Bongrain
• Company description
• Recent financial performance
• Innovation and NPD
• Morinaga Milk Industry
• Company description
• Recent financial performance
• Innovation and NPD
• Campina
• Company description
• Recent financial performance
• Innovation and NPD
• Meiji Dairies
• Company description
• Recent financial performance
• Innovation and NPD
• Land O' Lakes
• Company description
• Recent financial performance
• Innovation and NPD
• Saputo
• Company description
• Recent financial performance
• Innovation and NPD
• Sodiaal
• Company description
• Recent financial performance
• Innovation and NPD
• Fonterra
• Company description
• Recent financial performance
• Innovation and NPD
• Fromageries
• Company description
• Recent financial performance
• Innovation and NPD
• Yakult Honsha
• Company description
• Recent financial performance
• Innovation and NPD

Chapter 14 : Conclusions

• Summary
• Introduction
• Revenue overview
• Growth strategies
• Expansion into emerging markets
• Health and wellness
• Category focus
• Outlook
• Glossary
• Index

List of Figures

• Figure 2.1: Global dairy market size, ($m), 2002-06
• Figure 2.2: Top 10 dairy companies market share, (%), 2006
• Figure 2.3: EU-25 average milk prices, (€ /100kg), 2003-07
• Figure 2.4: Milk production in EU-25, (thousand tones), 2004-07
• Figure 2.5: Annual growth in milk production, (%), 2002-06
• Figure 3.6: Nestlé dairy financial performance, ($m), 2005-07
• Figure 3.7: Nestlé's recent dairy product launches, by category, 2004- 07
• Figure 3.8: Roxie Ice Cream and Haagen-Dazs Ice Cream
• Figure 3.9: Nestlé SWOT analysis
• Figure 4.10: Danone dairy financial performance, ($m), 2004- 06
• Figure 4.11: Danone's recent dairy product launches, by category, 2004- 07
• Figure 4.12: La Serenisima Yogurisimo Go Yogur Licuado Endulzado and Essensis Pro-Nutris Yogurt Drink
• Figure 4.13: Danone SWOT analysis
• Figure 5.14: Dean Foods dairy financial performance, ($m), 2005-07
• Figure 5.15: Dairy Group revenue breakdown (%), 2007
• Figure 5.16: Dean Foods' recent dairy product launches, by category, 2004- 07
• Figure 5.17: Rachel's Organic Bio-Live Yogurt
• Figure 5.18: Dean Foods SWOT analysis
• Figure 6.19: Unilever dairy financial performance, ($m), 2004-06
• Figure 6.20: Unilever's recent dairy product launches, by category, 2004-07
• Figure 6.21: Becel Margarine - Omega 3 Plus, Popsicle SlowMelt Long Lasting Pops and Breyers Swirls Ice Cream
• Figure 6.22: Unilever SWOT analysis
• Figure 7.23: Lactalis financial performance, ($m), 2006-07
• Figure 7.24: Lacatalis' recent dairy product launches, by category, 2004-07
• Figure 7.25: Dukatol and Galbani mozzarella mini light
• Figure 7.26: Lactalis SWOT analysis
• Figure 8.27: DFA financial performance, ($m), 2004-06
• Figure 8.28: DFA business segments breakdown, share of sales, 2006
• Figure 8.29: DFA's recent dairy product launches, by category, 2004-07
• Figure 8.30: Borden Spreadable Butter with Canola Oil, Breakstone's Spreadable Butter with Canola Oil and Keller's Spreadable Butter with Canola Oil
• Figure 8.31: DFA SWOT analysis
• Figure 9.32: Arla Foods dairy financial performance, ($m), 2005-07
• Figure 9.33: Arla Foods' recent dairy product launches, by category, 2004-07
• Figure 9.34: Yoggi Yalla! Drickyogurt
• Figure 9.35: Arla Foods SWOT analysis
• Figure 10.36: Kraft Foods dairy financial performance, ($m), 2005-07
• Figure 10.37: Kraft Foods' recent dairy product launches, by category, 2004-07
• Figure 10.38: LiveActive Cheese
• Figure 10.39: Kraft Foods SWOT analysis
• Figure 11.40: Friesland Foods dairy financial performance, ($m), 2006-07
• Figure 11.41: Friesland Foods' recent dairy product launches, by category, 2004-07
• Figure 11.42: Friesche Vlag Slaap Lekker and Dios-Mezes
• Figure 11.43: Friesland Foods SWOT analysis
• Figure 12.44: Parmalat dairy financial performance, ($m), 2006-07
• Figure 12.45: Parmalat's recent dairy product launches, by category, 2004-07
• Figure 12.46: Black Diamond Ficello Smart Growth String Cheese and Latte Parziamente Scremato
• Figure 12.47: Parmalat SWOT analysis
• Figure 13.48: Der Milde Chavroux Frischkaese aus 100% Ziegenmilch - 8% Fett
• Figure 13.49: Eskimo Ryofudo Ice Cream and Eskimo Pino Ichigo
• Figure 13.50: Campina Fruttis Yogurt and Campina Fruttis Creamy Yogurt
• Figure 13.51: Meiji Bulgaria Yogurt Teito Nameraka
• Figure 13.52: Alpine Lace Variety Pack of Sliced Cheese
• Figure 13.53: Dairyland Alive Yogurt
• Figure 13.54: Panier de Yoplait 0% Fat Yogurt - Quartiers
• Figure 13.55: Perfect Italiano Ricotta Cheese
• Figure 13.56: Kiri Golo and Laughing Cow Cheese Spread
• Figure 13.57: Yakult no Seinyu Tappuri Yogurt

List of Tables

• Table 2.1: Top 10 dairy companies turnover, ($m), 2004-06
• Table 3.2: Nestlé key milestones
• Table 3.3: Nestlé dairy financial performance, (CHFm), 2005-07
• Table 3.4: Nestlé business segment performance, (CHFm) 2007
• Table 3.5: Nestlé key dairy brands
• Table 4.6: Danone key milestones
• Table 4.7: Danone dairy financial performance, (€ m), 2004-06
• Table 4.8: Danone business segment performance, (€ m), 2006
• Table 5.9: Dean Foods key milestones
• Table 5.10: Dean Foods dairy financial performance, (€ m), 2005-07
• Table 5.11: Dean Foods dairy business segment performance, ($m), 2005-07
• Table 5.12: Dean Foods key dairy brands
• Table 6.13: Unilever key milestones
• Table 6.14: Unilever dairy financial performance, (€ m), 2004-06
• Table 6.15: Unilever business segment performance, (€ m), 2006
• Table 6.16: Unilever key dairy brands
• Table 7.17: Lactalis key milestones
• Table 7.18: Lactalis financial performance, (€ m), 2006-07
• Table 8.19: DFA key milestones
• Table 8.20: DFA financial performance, ($m), 2004- 06
• Table 9.21: Arla Foods key milestones
• Table 9.22: Arla Foods dairy financial performance, (DKKm), 2005- 07
• Table 9.23: Arla Foods business segment performance, (DKKm), 2007
• Table 9.24: Arla Foods key dairy brands
• Table 10.25: Kraft Foods key milestones
• Table 10.26: Kraft Foods dairy financial performance, ($m), 2005-07
• Table 10.27: Kraft Foods dairy business segment performance, ($m), 2005-07
• Table 10.28: Kraft Foods business segment performance, ($m), 2007
• Table 10.29: Kraft Foods dairy key brands
• Table 11.30: Friesland Foods key milestones
• Table 11.31: Friesland Foods dairy financial performance, (€ m), 2006- 07
• Table 11.32: Friesland Foods business segment performance, (€ m), 2007
• Table 11.33: Friesland key dairy brands
• Table 12.34: Parmalat key milestones
• Table 12.35: Parmalat dairy financial performance, (€ m), 2006- 07
• Table 12.36: Parmalat dairy business segment performance, (€ m), 2006-07
• Table 13.37: Bongrain snapshot
• Table 13.38: Bongrain dairy financial performance, (€ m), 2004-06
• Table 13.39: Morinaga Milk Industry snapshot
• Table 13.40: Morinaga Milk Industry dairy financial performance, (\m), 2004-06
• Table 13.41: Campina snapshot
• Table 13.42: Campina dairy financial performance, (€ m), 2004-06
• Table 13.43: Meji Dairies snapshot
• Table 13.44: Meiji Dairies dairy financial performance, (\m), 2005-07
• Table 13.45: Land O' Lakes snapshot
• Table 13.46: Land O'Lakes dairy financial performance, ($m), 2004-06
• Table 13.47: Saputo snapshot
• Table 13.48: Saputo dairy financial performance, (C$m), 2005-07
• Table 13.49: Sodiaal snapshot
• Table 13.50: Fonterra snapshot
• Table 13.51: Fonterra dairy financial performance, (NZ$m), 2005-07
• Table 13.52: Fromageries snapshot
• Table 13.53: Fromageries dairy financial performance, (€ m), 2005-06
• Table 13.54: Yakult Honsha snapshot
• Table 13.55: Yakult Honsha dairy financial performance, (\m), 2005-07