FDBusiness.com

Eckes-Granini Group Sustains Positive Momentum

 Breaking News
  • Nestlé to Sell US Confectionery Business to Ferrero Nestlé has agreed to sell its US confectionery business to Ferrero, the third-largest company in the global chocolate confectionery market, for SFr2.8 billion ($2.8 billion) in cash. Nestlé’s 2016 US confectionery sales reached about SFr900 million. The transaction is expected to close around the end of the first quarter of 2018 following the completion of [...]...
  • Asahi Super Dry Re-launching in the UK Asahi UK, the UK subsidiary of Asahi Europe, is boosting its strong portfolio of beer brands by re-launching Asahi Super Dry in Britain in its authentic form. For the first time in Europe, full access to the exact Japanese brewing standards have been given to Asahi Europe and these innovations will bring the authentic taste [...]...
  • Natural Preservatives Extend Frying Oil Shelf Life Arjuna Naturals Extracts has launched its natural preservative formulation for combating oxidation, thermal degradation, hydrolytic rancidity and extending the frying cycle of vegetable oils. The new, all-natural preservative formulation contains a few simple ingredients and enables a clean label. It is GMO-free, oil-soluble and vegan. Initial response was so strong, Arjuna Natural Ltd. decided to [...]...
  • Alison Unveils New UK-made Bread Basket Dolly Alison Handling Services (AHS), Europe’s largest stockist of plastic containers and boxes, has introduced a new bread basket dolly designed for standard (762 x 508 x 216mm) 12-loaf stack nests. Capable of holding up to eight nests and available in grey or purple (to match Alison’s distinctive trays and baskets), the dolly has been designed [...]...
  • Irish Supermarkets Benefit From the Christmas Spirit The latest grocery market share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 31 December 2017, reveal that shoppers spent an extra €90 million on groceries over the festive period. David Berry, director at Kantar Worldpanel, comments: “Over the Christmas period the average household spent a record €1,532 on groceries – an increase of [...]...

Eckes-Granini Group Sustains Positive Momentum

Eckes-Granini Group Sustains Positive Momentum
May 27
12:45 2015

The Eckes-Granini Group, the international producer and supplier of non-alcoholic beverages under the umbrella of Eckes AG, ended business year 2014 with an above average gain in earnings before interest and taxes (EbIT) despite falls in sales volumes and turnover.

“This is clear evidence of the fruits of our efforts, some of which involved substantial investments and ground-breaking work,” notes Executive Board Chairman and CEO Thomas Hinderer. He is very pleased that Eckes-Granini has succeeded in sustaining the positive momentum that was already apparent in 2013.

The Eckes-Granini Group suffered slight losses in volume sales, turnover and value-based market share. Turnover fell by 1.3% to € 899 million (2013: € 911 million). Volume sales were also down slightly (-1.9%) to 886 million litres (2013: 902 million litres). “The volume sales decline is largely attributable to the consistent implementation of our pricing policy”, explains Thomas Hinderer. This led in some cases to temporary distribution losses and/or reduced promotional activity.

EckesGraniniNevertheless, the Eckes-Granini Group achieved an above-average increase in earnings before interest and taxes (EbIT) from € 58.3 million (2013) to € 76.2 million for the past business year. That equates to a gain of 30%, which was fuelled in large measure by the successful integration of Pago, which was completed during the year. “Following the initial onetime effects resulting from extraordinary expenditures in 2013, the synergies generated by the acquisition were reflected as planned in earnings gains last year,” Thomas Hinderer explains. Synergies were generated in particular through the shift of Pago production for all markets outside of Austria to the French plant in Mâcon and the merger and consolidation of operational subsidiaries in Austria, France and Spain. “We have also implemented cost-cutting programmes in all areas. We undertook a critical review of all aspects of our business (except for the quality of our products and our employees) – from production procedures and potential improvements in packaging materials to the harmonization of IT processes.”

The fruit beverage market served by the Eckes-Granini Group (data from 12 core countries, retail food trade) remained under pressure in 2014. Turnover declined by 1.2%, while volume sales were down 1.9% compared to the preceding year. The primary cause of volume losses was the price gap between fruit juices/nectars and other non-alcoholic beverages, which has widened considerably in recent years.

Despite a slight decline in market share to 11.4% (2013: 11.7%), the Eckes-Granini Group maintained its leading position in this market in 2014.

The Eckes-Granini Group expects that the fruit beverage market will remain under strong pressure on the volume side during the current business year. “Nevertheless, we aim to achieve moderate gains in volume sales and turnover in our core fruit beverage business”, says Thomas Hinderer in explaining his optimistic assessment of future prospects. With that in mind, the Group plans to increase its expenditures for product advertising by an additional 20%.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 16, 2018Sival Plant Production Trade Show
  • January 17, 2018Anfas Food Product
  • January 17, 2018Dutch Organic Trade Fair
  • January 19, 2018International Green Week
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements