The company generated net sales of CHF 2,981.2m in 2012, an increase of 9.6%. This positive result is attributable to the encouraging expansion of business outside Switzerland, which exceeded expectations.
Important factors behind the successful results were recent acquisitions, the performance of Emmi Caffè Latte in Switzerland and abroad (+11%), and newly launched products in Switzerland such as Chäs Schiibe cheese slices and Mix-it Müesli.
In Switzerland, Emmi focuses on the development, production and marketing of a full range of dairy and fresh products as well as the production, ageing and trade of primarily Swiss cheeses.
Outside Switzerland, Emmi concentrates on brand concepts and specialities in European and North American markets.
Claire Phoenix talks to Emmi global marketing director Robin Barraclough.
When did Caffè Latte launch and how is it doing?
Robin Barraclough: We first introduced Caffè Latte to the Swiss market in 2004 and since then we have expanded distribution in a dozen countries – the largest international markets. Meanwhile, we have an annual production of more than 100 million cups.
In the summer of 2011, we introduced our milkshakes in Switzerland and expanded our range to include banana, vanilla, chocolate, strawberry and mocha. These are exported to Austria and France.
What is the reason for Caffè Latte’s success?
Barraclough: It taps into the general trend for coffee on-the-go and makes it more accessible. We benefit from brands such as Kenco, illy, Starbucks, Nespresso and Vitalco in bringing fresh coffee to the mainstream market in comparison to the earlier instant or filtered coffee most people were drinking.
We are meeting demand for a variety led experience and are unique in using freshly brewed coffee that has a minimum of 15 minutes roasting, and so has an excellent taste.
In comparison, most other manufacturers microwave their coffee or use coffee concentrate, which does not give the same result. We always say, It is not about the milk, it is about the coffee.
Coffee is seen as a natural source of energy; as a pick-me-up or wake-up drink in preference to energy drinks. Young people also see good coffee as indulgent and desirable.
Where is it sold now?
Barraclough: The most popular flavours are cappuccino and macchiato. Last year, we launched Tahitian Vanilla flavour in Switzerland, Austria and Germany, where it became number three. Our largest markets beside Switzerland are Germany, Austria, Spain and the UK.
We sell through grocery stores and major retailers as well as the service sector. We also sell through bakery stores in Switzerland, but distribution here is limited by chilled logistics.
One of our aims now is to convince the 50+ age group market of the pleasures of the Caffè Latte product.
What is the shelf life of the Caffè Latte product?
Barraclough: It is aseptically processed and has a shelf life of 4-6 weeks with a very natural taste.
What is Emmi’s history in the cheese sector?
Barraclough: We are the worldwide number one when it comes to the export of Swiss cheese, which we sell in approximately 65 countries, including South American and Asian-Pacific markets. Our largest markets are Germany, Italy and the US.
Our most famous cheese is Kaltbach. This is aged for several months in caves near Lucerne, which have a naturally low temperature. Thanks to this ageing process, these cheeses have a sought-after, distinctive taste and have won many awards.
We also produce cheese for fondues and raclette in special, easy to use packs. More recent developments include bags of fresh, ground cheese for use in cooking.
In which other areas does Emmi specialise?
Barraclough: In 2011, we acquired Italian company A-27 with its brand Bontà Divina, a company producing premium desserts such as tiramisu, panna cotta and profiteroles.
We also produce a semolina-like product called Griess Töpfli and a large variety of yogurts, including a ready to eat yogurt with granola as a breakfast snack on-the-go.
A recent launch is Bierfondue – a beer-flavoured cheese fondue. We pride ourselves on ‘warm kitchen’ competence; making the products people would like to prepare for themselves but just don’t have the time.
We also have a wellness sector with products in small bottles called Aktifit and Benecol, the latter contains plant stanol esters and is proven to reduce cholesterol levels.
What interests you most in dairy right now, and where can you see most potential?
Barraclough: There is still potential for growth, as no food category is as diverse as dairy. The challenge is to move it on from being a commodity.
Yogurt sells three times less in volume terms in the UK than in Switzerland. But Greek yogurt is growing rapidly in popularity as people move away from carbohydrate-based desserts ?to those that are protein rich.
We aim to optimise the nutritional profile without adding to fat levels, and keep to simpler ingredients. We have worked without stabilisers and texturisers for quite a while and would rather include fruit pieces than artificial concentrates.
It takes time to build a relationship with a retailer. We acquired the Onken business in the UK in 2010 and immediately obtained critical mass there.
The UK market is adventurous when it comes to flavours such as mango, papaya and passionfruit, which is the most popular yogurt in the Onken range.
We are working with flavour and fruit experts to develop bestselling flavours for our large pots of yogurt. We have recently launched the Fat Free Raspberry & Honey and Fat Free Blueberry & Elderberry variants.
It’s not rocket science. Consumers want great-tasting foods, and with our focus on local brands and healthy snacking, we are making great progress.
Interview by Claire Phoenix, FoodBev Media managing editor – magazines.
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