Royal Cosun Reports Good Sales for Aviko Beyond EU
Steenderen, Holland-headquartered Aviko, which runs one of the largest potato processing operations…Steenderen, Holland-headquartered Aviko, which runs one of the largest potato processing operations in the world, had an “excellent year” in 2012, according the annual report issued recently by parent company Royal Cosun. Turnover for the entire agro-industrial operation, whose businesses include sugar beet growing and processing, other food ingredients and bio-based products, topped EUR 1.9 billion. The Group employs approximately 3,400 persons worldwide, of which 1,656 are engaged in potato processing.
Sales of frozen and refrigerated french fries rose sharply outside Europe. Within Europe turnover of potato specialties was higher, and better results were earned on granules and flakes.
The utilization rate of raw materials in factories was good, as Aviko achieved further efficiency gains. Potato prices again fluctuated widely. They were low until the summer, but then rose sharply. The increase was due to the smaller area under cultivation in combination with poor harvesting conditions, especially in Belgium and the United Kingdom. Strict management of buying and selling positions allowed part of the price increase to be passed on to consumers.
Sales of french fries and specialties in South America and Asia rose sharply, as Aviko’s volume reportedly grew faster than the sector’s average. In the European market, meanwhile, consumption levels have been stable for many years. Aviko retained its share on both the foodservice and retail fronts.
During the year the company introduced Raspatat fries to the retail channel. This product, produced by Aviko’s Rixona subsidiary, had previously only been supplied to foodservice operators.
In Europe, Aviko again reported growth in the chilled and frozen specialties segments, with its higher-value purees, gratins and ready meals. In southern Europe, where the impact of the economic crisis is most serious, the foodservice market remains difficult and turnover contracted slightly during 2012. Elsewhere on the
continent, Aviko strengthened its market position.
A large percentage of the company’s turnover is derived from products and innovations that have been introduced in recent years. In 2012, for example, four chilled meals debuted under the name Kokkerellen. Chilled products are now a mature and well-developed segment in the supermarket sector, but still have good growth potential.
Aviko Rixona achieved a substantial improvement in results in 2012. With margins in its sales markets being relatively narrow, priority was given to efficiency improvements. As such, it successfully reduced the cost base through the effective implementation of TPM.
Rixona grew in Europe in both the foodservice and the industrial markets. In the foodservice segment growth was achieved chiefly in Germany and France, thanks to use of the Aviko brand and increased marketing. In the industrial segment, performance was particularly strong in Asia, eastern Europe and Turkey.
In China, where Aviko produces potato flakes, results were said to have been “excellent.” The snack market is growing throughout the world, partly because consumers are increasingly opting for ready-made snacks based on potato flakes or potato granules.
