For 2010, meat processor and food company Vion Food Group, headquartered in Eindhoven, the Netherlands, reported results after tax of €80 million. This is 0.9% of turnover which has stabilised at €8.9 billion. Its pork business went through a competitive year.
Vion Food saw positive growth in its export markets, whilst in its core home markets, its position in the UK poultry market, and Dutch and German beef markets strengthened. However, the pork market in the Netherlands, Germany and the UK was extremely competitive, as cost management programmes and increased investment in client category promotions were required to maintain a stable position. Oerlemans Foods, a producer of fresh frozen fruit, vegetables and potato products, felt the effects of a poor harvest, and the resulting price increases could only partially be passed through the chain.
Vion Ingredients continued to report growth in the global gelatine market. Driven by development of its activities in Asia and Latin America, Vion Ingredients managed to profit from the growth in these markets. In addition, Ecoson strengthened its position as a producer of second generation biofuels, while Banner, the industry leader in gelatine-based softgels for pharmaceutical use, showed strong results.
Partnership and product development
In 2010, Vion Food Group, employing some 27,000 staff, unveiled its long-term strategic vision of ‘Balancing the Future’ in which partnership with customers is key. This vision is based on achieving durable relationships with customers and suppliers. In addition, efficiency improvements have been at the centre of activities.
Vion introduced the new Good Farming Star market concept in the Netherlands, thus complying with the market’s and society’s demand for pork with a higher animal welfare level. In the German market, Vion launched hackplus a mince product containing animal and vegetable protein. Working together with its retail clients, the innovations programme of just one of Vion Food UK’s core business units launched fifty-five new products to the market. Peptan collagen, which has a positive effect on joint and skin health, was also marketed successfully.
The synergy between the two core activities, Food and Ingredients, has been utilised effectively. Energy and water saving, and technology and production improvement projects resulted in business operations becoming more sustainable, which in turn increased the ability of the company to distinguish itself in the market.
• Vion Food Group