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WHAT A VIEW...

Processing companies drive growth

THE SOUND OF DANISH CROWN Dialogue, a strong presence and a dash of humour

DC2015 The story of an even stronger Danish Crown

CONTENTS

FROM DC FUTURE TO DC2015 EDITORIAL We spent the last day of September 2010 with Danish Crown’s Board of Directors.

At this time of year, the Board spends two days reviewing the budgets for the coming year, so that every year we are certain that we have laid a precise plan for the following twelve months.

The last day in September was also the last day with DC Future. And it marked the kickoff for DC’s next ambitious plan – the fiveyear strategy which we are simply calling DC2015.

Eighteen months ago we embarked on a journey with a clearly defined goal – and with a clearly defined time-frame.

Now we have again launched a very ambitious plan which together we will fulfil.

DC2015 paints a picture of the coming years for Danish Crown – a guideline and a clear goal. It is basically a growth strategy. This means that the Board of Representatives and the Board of Directors have decided that DC must become an even stronger company which, thanks to greater robustness, is less sensitive to fluctuations in economic activity in the international market.

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Today we are already an international company, and we will further strengthen this profile in the years to come. Among other things, our international presence must be stronger to ensure the supply of raw materials and thereby Danish jobs.

The decision to turn Danish Crown into a limited company is part of the strategy for the coming years.

At the start of the new financial year, almost 95pc of the Board of Representatives voted to form a limited company.

For the time being, Danish Crown is still a limited company wholly owned by the members, but the new form of incorporation gives us a wider choice of sources of capital in connection with the acquisition of new companies, for example, and also creates the possibility of collaborating closely with other businesses which are also limited companies. One thing is certain – capital will be needed if we want to be bigger.

Ahead of us are five exciting years – and on the threshold to the next move it is a pleasure to deliver the best results in more than 20 years. |

Kjeld Johannesen | CEO

Niels Mikkelsen | Chairman of the Board of Directors

DANISH CROWN

DANISH CROWN

CONTENTS

26 | W HAT A VIEW… This year it is the

34 4 | EDITORIAL 6 | GROWING VALUES DC Future has

new ‘cans’ – new packaging is

largely driven growth in the DC

proving successful.

group. Tulip Food Company is one of the strong companies.

34 | T RADITIONS IN MODERN POLAND Babuni means ‘granny’ in

put the competitiveness back into

Polish. In Sokołów, it also means

Danish Crown. The ambitious plan

success.

has now been replaced by DC2015 – the company’s strategy for the

has become a strong player in our sister country.

12 | “MISSION ACCOMPLISHED” Tulip

egy. Danish is almost synonymous

money in casings…

with bacon in English.

70 | O N THE MOVE People and know­

18 | AMERICANS LEADING THE WAY

ledge on the move.

FOR A CLEANER WORLD Plumrose

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USA as an alliance partner.

20 | A SHARE IN DEVELOPMENTS From cooperative membership

46 | W HEN PORK IS TRADED IN YEN They call him Johannesen-san.

DC’s exports to Japan exceed total

24 | S TRONGER IN GERMANY DC is

PUBLISHED BY

Marsvej 43 DK-8960 Randers Telephone | +45 8919 1919 dc@danishcrown.dk www.danishcrown.dk

76 | A IRING NEW IDEAS On the Faroes, meat is dried… for a long time… Danish Crown explores new ideas with the butcher Slagter

to becoming a limited company.

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Containers. Lots of containers

68 | D AT-SCHAUB Whew, there’s

Danish Crown’s processing strat-

growing south of the border.

62 | A SHIP STACKED WITH… packed with meat.

Ltd is one of the cornerstones of

October 2010, members voted yes

60

40 | S WEDISH BORDER TRADE DC

next five years.

to a share in developments? In

60 | P ACKAGING The same meat in

processing companies which have

Japanese exports to Denmark.

50 | SIDE BY SIDE Quality and food safety go together when Danish Crown sells its products.

Munch.

78 | F RILAND It’s completely natural.

80 | T HIS IS NOT A T-SHIRT It’s all about reputation.

88 | W HAT IS THE SOUND OF DANISH CROWN? Read for yourself…

EDITORS Editor-in-chief Anne Villemoes Director of Corporate Communications

PHOTOGRAPHY Erik Zappon, Per Gudmann, Morten Fauerby, Joachim Rode, Cphotography etc.

EDITORIAL TEAM Rune Jungberg Madsen, Jan Fønss Bach, Lisbeth Carøe, Kirsten Meisner, Christina S. Johansen, Mette Sehested, Thilde Danielsen Larsen, Frank B. Winther, Michael Borgen

IDEA AND CONCEPT Anne Villemoes/CZOO DESIGN AND PRODUCTION CZOO PRINTING Scanprint A/S

GROWING VALUES VALUES Danish Crown is built on several kinds of values. When it comes to kroner, pounds, dollars, yen and euros, CFO Preben Sunke is at the helm. Here he is ... looking after the money in the vault at Danske Bank.

ALL THE WAY WITH DC FUTURE 8|

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FUTURE Eighteen months, nine focus points, one ultimate goal. When DC Future was launched in May 2009, it was basically Danish Crown’s competitiveness that was at stake.

- In eighteen months we had to turn the tide and direct the flow of pigs back to Danish Crown’s slaughterhouses; this called for extreme dedication on the part of the whole group. We had to cut costs and improve our earnings, says Kjeld Johannesen, CEO of Danish Crown.

The eighteen months are now up, and in relation to the seven focus areas which are within Danish Crown’s own control, we have achieved what we set out to do – and more.

The first seven focus areas have generated improvements of DKK 700 million, while results have been improved by a total of DKK 895 million. To this can be added an

improvement of DKK 262 million as a result of lower interest rates, in other words combined improvements of DKK 1,157 million.

The plan also included pay cuts to the order of 20pc per kilogramme of produced meat.

With the measures which have been launched at the end of the year, Danish Crown has reduced its payroll costs by half of the 20pc.

- Even though the eighteen months with DC Future are at an end, our work is not over. So far, we have – with the help of our employees – implemented half the desired reduction in payroll costs, but we had to accept that the will to go all the way was not present at the collective bargaining table.

We will realise the promised pay cuts, but due to the terms of the collective agreement, it will take a bit longer than we had originally hoped, says Kjeld Johannesen.

The promises made by the former Danish Minister for Food at the start of the DC Future period have also proved hard to keep. The aim was the removal of political burdens to the tune of DKK 300 million; however, at the end of the year, the result was DKK 39 million, which is not satisfactory. This issue will also be addressed in the coming strategy period.

- DC Future was an ambitious and necessary plan. We were facing a situation in which the raw materials and thereby our workplaces were disappearing, and with DC Future we made a sort of contract with our members. The goal was to get the pigs back to Danish Crown’s slaughterhouses, and the results speak for themselves – over summer 2010 we saw the return of one million pigs for slaughter a year, explains Kjeld Johannesen. |

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DC2015

DC2015 STRATEGY A company the size of Danish Crown should always be setting itself new and ambitious goals. Have a plan, a strategy with clear targets. Continual development is a precondition for preserving the strength that the company has built up over many years, and the next five-year strategy is now ready.

The starting point for DC2015 is the decision that the company must become stronger if it is not to lose ground.

- We know from experience that we must either have a certain size in the different markets – or not be there at all. A growth strategy focusing on selected markets is therefore a sensible decision, but also one that represents certain challenges, says CEO Kjeld Johannesen.

It is all about creating a company that is less sensitive to ups and downs in the individual markets, a company which is even more robust.

- In recent years, we have seen how exchange rate fluctuations, raw materials’ prices and other external factors have had a huge impact on our competitiveness, and DC2015 is intended to ensure that the Danish Crown structure strikes the right balance so such fluctuations affect its competitiveness to the least possible extent.

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One of the biggest challenges is our competitiveness in Denmark, while we can clearly see that in the countries where conditions are reasonable, Danish Crown is a highly competitive company. And most sales, after all, take place outside Denmark, says Kjeld Johannesen.

Growth is the way to robustness, and DC2015 sets out several very clear growth targets. For example, in the next five years, revenue must grow by more than 30pc. This can be achieved through acquisitions and organic growth in defined markets.

- In deciding to form a limited company, we have ensured that we are able to raise the capital which is required to create growth, and it is now up to the company’s owners to analyse and discuss how to raise this capital, says Chairman of the Board of Directors, Niels Mikkelsen.

The strategy also includes cutting payroll costs to ensure long-term competitiveness.

During the past eighteen months, the company’s competitiveness has been restored thanks to a lot of very hard work – and this work is continuing.

- DC Future has taught us certain things, and we will take this experience and build on it, says Kjeld Johannesen. |

DC2015

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PROCESSING

“MISSION ACCOMPLISHED” Carsten Jakobsen bids Danish Crown goodbye after a successful mission.

CARSTEN JAKOBSEN ˻˻ Carsten Jakobsen, 65 yrs. ˻˻ Born and raised in Ikast, Denmark. ˻˻ 1975-1984: Director in Sthyr & Kjær, Lund & Rasmussen, Dagros, Brdr.

Justesen, Dagrofa. ˻˻ 1984-1990: Managing Director, SAS Service Partner. ˻˻ 1990-1994: Managing Director, Bording A/S. ˻˻ 1994-1996: Managing Director, Hatting Bakery International. ˻˻ 1996-1998: CEO, VJS Holding, UK. ˻˻ 1998- : Managing Director, Vestjyske Slagterier. Following the merger with Danish Crown, Vice CEO of the cooperative group with special responsibility for the UK and the USA. ˻˻ From 2002 based in the UK. Lives in Stratford-upon-Avon together with his wife and two sons.

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RETIREMENT Vice CEO/President International Carsten Jakobsen has decided to say goodbye to Danish Crown after fourteen years in the meat business.

Carsten became part of the group management team following the merger with Vestjyske Slagterier in 1998, where he was Managing Director, and after he celebrated his 65th birthday in 2010, he has decided it is time to hand the baton on to somebody else.

As President International, Carsten Jakobsen has been the architect behind the prominent position which Tulip Ltd now enjoys on the UK market.

Here he has been the driving force behind the establishment of a company which, in the space of a few years, has gone from posting revenues of DKK 3 billion to sales of DKK 10 billion with a similar increase in the number of employees. The company in the UK, where Carsten Jakobsen has been permanently based since 2002, is today the UK’s second-largest meat supply company comprising seventeen production plants.

- The growth we have seen in the UK is largely due to Carsten’s hard work, while in his role as Chairman of the Board of Plumrose USA he has been invaluable. It is one of the industry’s prominent figures to be leaving Danish Crown, but Carsten Jakobsen has the succession in place, and both companies are ready to take over, says Chairman of the Board in Danish Crown, Niels Mikkelsen.

Carsten Jakobsen has said that he would like to step down at the end of the 2009/10 financial year, and his last working day in the group will therefore be at the meeting of the Board of Representatives on 2 December this year.

- However, Carsten has promised to make himself available to Danish Crown up until 31 October 2011, says Niels Mikkelsen.

For Carsten Jakobsen, the decision comes after several years of intense work to implement the strategy – both in the UK and the USA. - In this business you never stand still, but I think that I can rightly say “Mission Accomplished”, and it is an obvious time for me to pass on the responsibility to competent people like CEO Steve Murrells in the UK and CEO David Schanzer in the USA, says Carsten Jakobsen, who is looking forward to following the company he has been developing for a number of years.

The role of Chairman of the Board of Directors for Tulip Ltd and Plumrose USA will be taken over by the CEO of Tulip Food Company, Flemming Enevoldsen, who is a member of the group management. Thus, in future, the group management will consist of Danish Crown’s CEO Kjeld Johannesen, CFO Preben Sunke and Flemming Enevoldsen. | 07.10.10

PROCESSING

BROMBOROUGH ˻˻ The Bromborough factory was built

by Tulip International in the mid1990s for sliced products. ˻˻ It was closed down in connection with Tulip Ltd’s merger with George Adams & Son about two years ago, and has now been totally refurbished and transformed into the most modern sausage factory in the world. ˻˻ The factory has a capacity of 1,000 tonnes a week and replaces the factory in Peckham in London which has a capacity of 550 tonnes a week. ˻˻ In connection with the refurbishment, a lot of thought has gone into reducing energy consumption and, compared with the Peckham factory, the Bromborough facility uses 59pc less water per tonne produced and 63 per cent less electri­ city per tonne produced.

SAUSAGES IN THE UK ˻˻ Sausages are an Englishman’s favourite food. ˻˻ Each year, a total of 175,000 tonnes of sausages are eaten in the UK at a total value of GBP 485 million (DKK 4.4 billion). ˻˻ 470 different types of sausages are sold in the UK.

TULIP OPENS SAUSAGE FACTORY OF THE FUTURE The world’s most modern sausage factory can be found in Bromborough near Liverpool; it is run by Tulip Ltd.

TULIP UK On Thursday 10 June, the world’s most modern sausage factory opened its doors in Bromborough near Liverpool. From here, Tulip Ltd will meet much of the demand for the popular English breakfast sausages or Bangers, and as the English eat around 175,000 tonnes of sausages a year, this market has huge potential.

CONCERN FOR THE ENVIRONMENT However, the new factory is not just any old sausage-making facility – environmental concerns have played a prominent role in planning the factory.

- Tulip is a responsible company. Socially responsible and environmentally responsible, and a lot of thinking has therefore gone into reducing consumption. The Bromborough factory is an example of a factory which takes the environment into account at all levels, says DC’s Vice CEO, Carsten Jakobsen.

Sir Terry Leahy, CEO of Tesco plc, the supermarket chain which buys large volumes of Bangers, also mentions the environmen-

tal focus of the rebuilding of the factory in Bromborough. The CEO, who was a guest at the inauguration ceremony, also mentioned Tesco’s need to collaborate with producers who are able to focus on quality, food safety, price and innovation, all at the same time.

SAUSAGE FINGERS ALL ROUND Innovation and product knowledge are key factors for the newly opened factory in Bromborough. In addition to the production plant, a new sausage academy has been established, which was also opened on 10 June.

- All employees have to try to make a sausage at the academy so that they are familiar with the entire process. We also hope that lots of locals will visit us and try their hand at making their own sausages. Before long, Bromborough may go from being simply Bromborough to being ‘Bromborough, Home of the British Sausage’, said Tulip Ltd’s Marketing Director, Seamus Rooney, at the opening of the academy. | 11.06.10

PROCESSING

INNOVATION IS KEY Tulip Ltd has marketed a Wicked Pig and cemented Danepak’s unique market position.

TULIP UK Innovation has been key to the development of long-term and sustainable growth for Tulip Ltd. During the past year, the Danepak product line has achieved a pos­ition as the UK’s leading pork brand.

Inventiveness frequently results in new products and new campaigns that strengthen the company’s sales – and the close contact with both customers and consumers.

These new products include so-called delifillers, which are based on the American concept of pulled pork, where the meat is cooked very slowly so it can then easily be divided into smaller pieces. This makes it ideal as a sandwich filler.

- Three taste variants of the new product have been developed, ensuring that we now have a strong product in the market for sandwich fillings. Sales in this category total about DKK 1 billion, and they have previously been driven by private-label products. However, thanks to this new product, we now have a high-quality brand product which can strengthen both Tulip and the

category as a whole. At the same time, it will strengthen Tulip’s position as the most innovative and forward-looking supplier of pork products, says Marketing Manager Rob Stroud about the new deli-fillers, which will be launched in 2011.

WICKED PIG ON FACEBOOK In addition to the work with new products, efforts are also being invested in new marketing initiatives that are designed to pos­ition Tulip as one of the most modern brands in the UK. This is being done under the name of Wicked Pig, where Tulip, in collaboration with the web comedy channel Sty TV, has raised awareness of Wicked Pig among the target group of consumers aged 17-35 years.

Wicked Pig has had a hugely popular Facebook page, and despite a very modest budget, it has been possible to spread news of the Wicked Pig concept to consumers throughout the UK.

- Sty TV had more than 100 million visitors in its first six months, so it is very popular and a perfect way for us to hit the Wicked Pig target group. The range consists of four different pork-based snacks with different flavours. They can be consumed hot or cold and are ideal for football matches, student parties or just enjoying at home in front of the TV, says Rob Stroud.

DANEPAK IN THE LIMELIGHT In addition to working with new products and brands, Tulip has also seen a marked increase in interest around the UK in Tulip’s strongest brand, Danepak.

This has been achieved through intensified marketing in connection with the very popular food programmes on Channel 4.

The campaign has also greatly contributed to sales in the last quarter increasing by 5.4pc relative to the same period last year, thereby cementing Danepak’s unique market position. |

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PROCESSING

In collaboration with The Variety Club Children’s Charity, Tulip Ltd is making sure that some of the poorest children in the UK also have a happy Christmas.

TULIP COMES WITH CHRISTMAS PRESENTS IN THE UK CSR In collaboration with The Variety Club Children’s Charity, Tulip Ltd is making sure that the poorest children in the UK also have a happy Christmas.

Tulip Ltd is one of the biggest com­ panies in the UK. It is therefore natural to want to play a part in the local community. Tulip does so, among other things by helping poor chil­ dren.

Danepak not only epitomises quality in the UK. Tulip Ltd’s strong brand is also inextricably linked with the company’s work to provide Christmas presents for the country’s poorest children.

Thus, for each Danepak product sold during the period from October to mid-December, one pence is donated to the Children’s Charity, which helps the children of poor families celebrate Christmas.

At the same time, Tulip has sponsored the presti­ gious Variety Club Awards, which was an important element in reaching the target of collecting GBP 100,000 for charitable work.

- Tulip is a major company in the UK and is thus also an important part of British society. It is therefore important for us to help ensure that the children of some of the poorest families in the UK have a good Christmas with some nice presents, says President International and Chairman of Tulip Ltd’s Board of Directors, Carsten Jakobsen.

HELPING COLLEAGUES In addition to making Christmas a bit happier for poor children, Tulip employees have also contributed to helping disadvantaged families at the Butchers’ and Drovers’ Charitable Institution (BCDI), which supports employees in the meat industry who have run into personal problems.

The money has, among other things, been collected through a golf event and a go-karting event, and the icing on the cake was a sell-out charity event at the Grosvenor Hotel in London which Carsten Jakobsen hosted in autumn 2010. Here, the audience was entertained by one of the UK’s best-known entertainers, Chris Evans, and the evening ensured that many people could be given a helping hand. | a magazine about growing values

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PROCESSING

HEART IN THE RIGHT PLACE CSR - I’ve heard on several occasions that 80pc of consumer choices are made in the supermarket. Therefore, it’s all about having an advantage there, which is something we now have.

This is how David Schanzer, CEO of Plumrose USA, describes the fact that the company’s products will soon carry the logo of the American Heart Association. A logo which most American consumers recognise, so it therefore means a lot for Plumrose to be able to co-brand itself with this organisation.

It is also the culmination of several years of concentrated work to reduce the salt content of the company’s products, so that today Plumrose USA has both the healthiest and tastiest products on the market.

- For a long time we have been focusing on reducing the salt content, and American society is now looking to do the same. Among other things in New York City, where there are now rules stating how much salt prod-

ucts can contain per 100 grams, and this is creating problems for many of our competitors, says David Schanzer.

It just means that they taste better, have healthier ingredients and contain less salt, says David Schanzer.

He relishes the fact that there is no cause for concern at Plumrose. On the contrary.

In fact, Plumrose’s success leaves only one major problem.

- Our products lie well below the limit, and we are seeing considerable and growing demand for low-salt products. It has become particularly important given the ageing population. Plumrose has spent many years preparing for this situation, so our products are tailored to the new consumer patterns, says David Schanzer.

- We are working at full capacity, so we will really have to struggle to force more production through the factories. Of course, we can’t carry on like this, so at some point it will be necessary to increase capacity if we want to meet demand, says David Schanzer. |

THE OLD SCHOOL David Schanzer can can also reveal that the method for reducing the salt content does not involve new technology or additives. On the contrary – Plumrose has copied traditional production methods, so that today its ham products are cured for 48 hours.

- The traditional method does not make the products any more expensive to produce.

The American Heart Association is recommending that consumers buy products from Plumrose USA, which is market-leading within low-salt products.

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Plumrose USA is showing the way in terms of initiatives to reduce CO2emissions and create a better world.

AMERICANS LEADING THE WAY FOR A CLEANER WORLD CSR Europeans often see themselves as leading the way in terms of launching initiatives to reduce greenhouse gas emissions for the sake of the environment.

However, perhaps it’s because they have never visited Plumrose USA. A company which, over the past two years, has led the way in the battle for the environment, achieving significant reductions in its emissions of problematic substances.

- We have been working with this for some time, but in the past two years we have intensified our efforts considerably. We have focused on reducing consumption and CO2 emissions and minimising wastewater volumes. This has been implemented at our own factories and also by our suppliers, says David Schanzer, CEO of Plumrose USA. And customers have really welcomed the efforts. Plumrose USA has thus become a strategic partner with the world’s biggest chain of department stores, Walmart, highlighting Plumrose’s work on its website.

- They have posted a video about Plumrose on the Walmart website, which obviously makes us feel very proud. Walmart has invested a lot of time and money in telling its customers about Plumrose and what we are doing for the environment, and it clearly boosts our credibility when other businesses mention our efforts, says David Schanzer.

SMALLER FOOTPRINT He can confirm that today Plumrose impacts the environment far less than previously while at the same time saving money.

- One of the most interesting things is that because we have reduced consumption we are also saving money. Consequently, we can offer our customers more attractive prices, so everyone benefits from our targeted efforts, says David Schanzer.

He does not believe that the work to reduce the company’s environmental impact will ever stop – at the moment Plumrose is engaged in raising its employees’ environmental awareness.

- We are trying to help our employees see how they can conserve resources. Not just at work, but also at home. We just want to emphasise that it’s not just about ‘talking the talk’, but also about ‘walking the walk’, as we say. Therefore we are also very selective when entering into agreements with new suppliers. They must live up to our requirements and reduce their consumption of resources, and thus join us in setting a good example, says David Schanzer.

He is not in any doubt that Plumrose USA’s exemplary environmental efforts are benefiting its business, even though awareness about climate change and the willingness to take appropriate measures varies greatly from state to state.

- Generally, you can say that the coast states are showing the way in this area, but I am convinced that the environment will become a growing issue right across America, and that this will benefit Plumrose, concludes David Schanzer. |

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A SHARE IN DEVELOPMENTS COPENHAGEN STOCK EXCHANGE From cooperative membership to a share in developments? In October 2010, the members of Danish Crown voted to turn the cooperative into a limited company. This will give Danish Crown more tools to work in the coming years.

CSR

FORM OF INCORPORATION ON THE AGENDA The debate at today’s meeting of the Board of Representatives is an important part of Danish Crown’s current strategy work, which is helping to decide the direction DC will take in the coming years.

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LIMITED COMPANY Should Danish Crown become a limited company? If the company intends to pursue a growth strategy, where is the financing going to come from?

This was the starting point for a discussion which kicked off today’s meeting of the Board of Representatives in Herning in Jutland.

discussion which touched on deep-rooted historical values.

Some of the alternatives suggested at the meeting included the current cooperative structure and other possible models in the form of various constructions limited by shares, and which offer the possibility of bringing external investors on board.

Declining supplies, dramatically changing conditions in the financial markets and a desire to create the potential for growth mean that it is an apt time to resume the discussion that first started in Danish Crown in 2005.

The debate at today’s meeting is an import­ ant part of Danish Crown’s current strategy work, which is helping to decide the direction Danish Crown will take as a globally oriented food company in the coming years.

This time, it is hoped that the debate will result in a decision being made by the members within the not too distant future, and the Board of Representatives certainly threw itself into what proved to be an emotional

Today’s meeting can therefore also be seen as a launch pad, ensuring that the discussions continue at this summer’s district meetings which are held for members later in June.

- It was a very exciting discussion at an interesting point in time, where we are seeing increasing optimism in primary production. Therefore I am also very keen to see how the debate on the form of ownership develops at this summer’s meetings for members where it is on the agenda, says Erik Bredholt, Deputy Chairman of Danish Crown’s Board of Directors, adding: - However, I feel it is important to emphasise that no decision has yet been made on the future corporate form. As broad a spectrum of members as possible needs to discuss this issue, and it is they who will decide the future outcome. Our task is to ensure that members are presented with all the facts. | 09.06.10

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ACQUISITIONS

Clear focus on selected categories has improved Tulip’s business in Germany.

FOCUSED GROWTH IN GERMANY TULIP FOOD COMPANY It is better to be a big fish in a little pond than a small fish in a big pond. This is the idea behind Tulip’s new strategy in Germany, where the company has changed its approach and is now staking on fewer categories, categories where the company already has a strong position.

- For some years we have been working to restructure our business in Germany, so that today we are focusing on a few specific categories where we are strong. These are bacon, canned products, soups and, of course, our Wickie Chicken Nuggets, which is a key brand in Germany, says Tulip’s International Sales Director, René M. Olsen.

He says the reason for the decision is that it is important to concentrate on categories where Tulip can make a difference.

- Bacon is a niche category in Germany, but it is also one where we have a market share of 35pc, and a category where we have the brand power and the required innovativeness to make an impact and drive the market, says René M. Olsen.

The same applies within both canned products and soups, and René M. Olsen is convinced that cultivating new areas which are not yet that big in Germany represents the right strategy.

- As far as, for example, sausages, hams and salamis are concerned, there are several big

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German businesses competing for the market, and I think we should leave them to it. On the other hand, we are seeing a solid increase in sales of MOU soup in a category where we do not have any competitors, says the international sales director.

NEW POSSIBILITIES René M. Olsen is is delighted that Tulip, following the acquisition of Nietfeld Feinkost in February 2010, has strengthened its presence in Germany.

- The purchase of Nietfeld means that we have gained access to new supermarket chains such as ALDI Süd, and that Tulip has become a company that other players need to take seriously. We have achieved a critical mass in the market which means that we can hold our own and start competing in Germany on more equal terms than we could previously, says René M. Olsen.

He also expects that Tulip will be able to create new openings for Nietfeld Feinkost, which is already a very well-run business.

- Just as the acquisition has given Tulip access to Nietfeld’s systems, Nietfeld has also gained access to ours as a possible channel for selling more of Nietfeld’s excellent poultry products. Poultry sales are growing steadily in Germany, and it is obviously a considerable advantage that we can now also offer quality products in this area, says René M. Olsen. |

ACQUISITIONS

DANISH CROWN ACQUIRES GERMAN PIG SLAUGHTERHOUSE DC FUTURE Danish Crown has signed a contract to acquire the German slaughterhouse D&S Fleisch. The agreement is, among other things, conditional upon approval by the competition authorities, but both parties expect this approval to be obtained shortly.

Slaughtering 3.5 million animals a year, D&S Fleisch is the fourth-biggest slaughterhouse in Germany, and with the acquisition Danish Crown is reaching another milestone in its plan DC Future.

Danish Crown has acquired Germany’s fourth-largest slaughterhouse and is thereby expanding its activities south of the border.

- In recent years, the German market and the operating economies for German slaughterhouses have represented a significant challenge for Danish Crown. Therefore, as far back as eighteen months ago, we were already realising that we could achieve significant impact by being active in the German raw materials market, and now we have found the optimum solution, says Kjeld Johannesen, CEO of Danish Crown.

Germany is already an important market for Danish Crown, and a German slaughterhouse for German pigs will offer access to the market and benefit the entire group.With this acquisition, Danish Crown is gaining a presence in the German market and also strengthening its international sales.

- Today we have a successful business with fresh meat in Sweden, the UK and Poland, and Germany is the next obvious step. As in the other countries where we have slaughterhouse activities, the idea is to slaughter local,

German pigs. This also means that the acquisition will not have any immediate impact on Danish workplaces, says Kjeld Johannesen.

D&S Fleisch is situated in Essen (Oldenburg) close to a number of Danish Crown’s other departments in northern Germany. In addition to the slaughterhouse facilities in Essen (Oldenburg), Danish Crown is also taking over D&S Fleisch’s other slaughtering unit in Cappeln. Danish Crown not only plans to continue operations in Essen, but expects to expand capacity and create more jobs in future.

Up until now, D&S Fleisch has been a privately owned company.

- We have for some time been looking for the right buyer for our slaughterhouse, and Danish Crown was chosen because, with their door to the global market, they are a good match for the business which D&S Fleisch has built up over the years, says Herbert Dreckmann, one of the company’s owners.

D&S Fleisch has seen strong growth in recent years. The slaughterhouse supplies the retail trade and the processing industry as well as export markets, and the pig deliveries are based on contracts which Danish Crown is taking over in conjunction with the acquisition.

Fleisch Krone Feinkost, the convenience business, is not included in the transaction but will still be managed by the existing owners. | 07.10.10

TULIP GROWS IN ITALY FOR THE FIFTH YEAR RUNNING, TULIP IS RECORDING DOUBLE-DIGIT GROWTH RATES IN ITALY.

Food is not generally an area seeing double-digit growth rates in that many places in Europe.

However, an exception to this is the Tulip Food Company’s activities in Italy, which for the fifth year running is storming ahead with

strongly growing sales.

Growth in the latest financial year was 15pc, and Tulip’s International Sales Director, René M. Olsen, believes that there is still a lot of potential for further growth.

- During the past financial year we have, among other things, moved into the foodservice market, while also launching the Wickie products in Italy, and both are proving hugely success-

ful, explains René M. Olsen.

He ascribes Tulip’s success to the popularity of the company’s bacon.

- Our bacon is extremely popular, and it is a segment where we are very competitive. It gives us access to many supermarket chains, and we have exploited this to introduce other products to their assortments, says René M. Olsen. |

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WHAT A VIEW...

COLD CUTS This year it is the processing companies which have largely driven growth in the Danish Crown group. Today, 86pc of processing takes place outside Denmark – to create the greatest possible value for Danish farmers. Tulip Food Company is one of the strong processing companies in the market.

PROCESSING

TULIP FOOD COMPANY Every week, Tulip sends tonnes of meat out into the world packed into large containers. Containers with Danish foods that carry the Tulip name and which are synonymous with high quality and food safety for consumers everywhere, from Sweden and Germany to Japan and Puerto Rico.

- My primary goal has been to forge a strong connection between Tulip’s many different activities. It is a complex company, the result of several mergers with companies with their own strong identities, and therefore my focus has always been to ensure that everyone in Tulip is working towards a common goal, says Flemming N. Enevoldsen.

Tulip is a name well known far beyond Denmark’s borders for many different activities, and therefore the management, headed by CEO Flemming N. Enevoldsen, has spent recent years establishing common values and clear objectives for the company.

One of the first and most important steps has been to establish a clear management structure, with a clear allocation of responsibility.

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- It is a pleasure to work with Tulip’s very competent employees, and to see how we

have been able to mix experienced Tulip resources with newly joined managers to create a very performance-oriented spirit in the company, while at the same time respecting more than 120 years of history, says Flemming N. Enevoldsen.

And the work has proved hugely successful. Whether you look at the accounts or ask customers, the results of the company’s targeted work are unambiguously positive.

- A good example is our delivery capacity, which we measure every day. It is by far the most important parameter for our customers and an area where we have made mas-

PROCESSING

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TULIP GOES GLOBAL After several years of working with Tulip’s corporate structure, the company is now stronger than ever before.

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PROCESSING

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PROCESSING

« sive improvements. Our delivery capacity is currently very satisfactory, and impartial customer surveys show that we have achieved real improvements in this area, says Flemming N. Enevoldsen.

TIGHT MANAGEMENT It has been done through, among other things, very tight management, which was called for when the present CEO took up his position in 2006.

- Tulip was far too complex, with far too many different products and brands that all needed looking after and supporting. Therefore it was necessary to reduce the number of products and the level of complexity in general. For this reason, there is no doubt that both employees and customers may have felt that we can sometimes be a very rigid company. However, this was a necessary exercise, and I don’t believe that you will find anyone today who thinks that what we did wasn’t the right course of action, says Flemming N. Enevoldsen.

Tulip has now come so far in its work to improve competitiveness that we can allow ourselves a slightly broader framework, and it is possible to relax some of the rules again.

- However, we must be extremely careful so we don’t find ourselves facing new problems several years down the line, because then all the hard work will have been futile, says Tulip’s CEO. In addition to focusing on simplicity and clarity, Tulip still needs to keep costs down and find savings where possible. An objective that Flemming N. Enevoldsen has pursued ever since he assumed responsibility in 2006.

Among other things, it has meant that today Tulip has 20pc fewer salaried employees, and parts of production have been moved to Germany. A necessary decision, and also the right one for the company.

- Tulip is an international company with exports to 80 countries. Therefore, production also needs to be distributed geographically.

This makes sense from the point of view of both logistics and costs, but also because in Denmark we would have a number of extra administrative burdens imposed on us which would mean that we could not compete in the foreign markets if production only took place in Denmark, he says.

GOOD RESULTS Flemming N. Enevoldsen is also able to show that in a number of markets Tulip has transformed problematic activities into good business and growth.

- For example, France, Germany and Italy are three countries where we are now seeing very satisfactory growth in earnings and prospects are bright. In France in particular, we have seen a big turnaround after making a number of critical decisions which are now bearing fruit, and this is a big advantage for Tulip and for our employees who no longer need to worry about their jobs, says Flemming N. Enevoldsen.

He is very pleased that Tulip has been able to create organic growth and fully exploit the potential in the acquired companies.

Tulip is therefore well geared to expanding its presence in a number of markets, which is necessary in the coming strategy period.

- We are seeing consolidation in the market where only the biggest players will be able to enjoy a position as a brand company. We are aware of this in Tulip, and therefore we are carefully considering which markets to aim at, after which we will throw ourselves wholeheartedly into the project. I am in no doubt that this is the route we have to pursue, and I’m convinced that Tulip is fully geared to continuing this positive development in the years to come, says Tulip’s CEO. |

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PROCESSING

Tulip in Afghanistan

Steff takes off in Korea Inspired by sales of Steff sausages from Copenhagen Airport, it is now possible to buy a Steff hotdog in South Korea’s large international airport in Incheon.

This is one of the latest of 200 sales outlets to open in South Korea, for example at cinemas and railway stations etc. which are frequented by large numbers of people.

Steff-Houlberg is a well-known name in South Korea, where about 200 sales outlets serve about 3.5 million Danish sausages to South Korean consumers each year.

The sausages are produced in Vejle Nord and in Svenstrup. | 01.06.10

Sausages selling like hotcakes in Russia Sausages – they have to come from Tulip. At least if you ask in Russia, where sales of Tulip sausages are seeing strong growth.

The Russians are crazy about the high quality of the Tulip sausages, and it shows in the sales figures.

- From 2006 to 2009, we have quadrupled sausage sales to the eighteen Statoil service stations in Russia, and in October, November and December 2009 alone, sales increased by 43pc compared with the same period the year before, says Export Manager Dennis Lucassen from

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Tulip, who is responsible for sales to Russia.

He also says that the classic Danish hotdog is becoming increasingly popular with Russians grabbing a bite at the service stations.

- The Russian service stations closely resemble those in Denmark with a large selection of fast food, and our products are handled just as well and presented just as appealingly in Russia as they are at home in Denmark, says Dennis Lucassen.

Moreover, Tulip’s sausages are also being sold by a number of Statoil service stations in Lithuania with very positive results. | 04.03.10

Even though tough battles continue to be fought in Afghanistan, developments are taking place within the retail sector, and after lengthy negotiations with a local distributor, the citizens of Kabul can now look forward to finding Tulip’s halal products on the shelves in many shops in the Afghan capital.

- Afghanistan has a population of 28 million people, so it is obviously a potentially interesting market for Tulip. Initially we are only selling small volumes in the country, but the first container of canned products has found its way to the shops and I am hopeful

that we can soon ship another, says Tulip’s Export Manager, Kim Tofteskov Skovmøller.

ALSO IN OMAN It is not just in Afghanistan that Tulip has found its way onto the shop shelves. Tulip has signed an agreement with the company’s distributor in the United Arab Emirates, Federal Foods, on selling on Tulip’s products in Oman.

- Oman is a tricky country in which to conduct trade. In particular because there are big logistical problems, says Kim Tofteskov Skovmøller. | 09.09.10

Tulip on the beach 4 July is Independence Day in the USA. It is a public holiday, with many people heading for the beach, which is why Tulip chose the day to premiere its new ‘beach patrol’ which hands out free Mezcla sandwiches to lucky beach-goers.

And it didn’t take long before the sandwiches were all gone. | 07.07.10

Tulip sells an Eiffel tower of meatballs Tulip blossoming on Okinawa Okinawa’s biggest shopping centre is currently a backdrop for Tulip’s large Mabuyer shows. The local hero Ryujin Mabuyer is performing together with his new side-kick Ganasy in a big show that attracts people of all ages.

This obviously happens surrounded by lots of Tulip logos, and there is a lot of competition for autographs from the local

superhero.

- We have definitely managed to spread the message about Tulip Luncheon Meat. None of the children who have watched the show think that Tulip has anything to do with flowers, says Asuka Ganeko, who has handled all the practicalities in connection with the shopping centre events. | 01.12.09

Meatballs with a home-made taste.

However, not many housewives can keep up with Tulip, which ships 11 million kilogrammes of meatballs a year. This corresponds to the weight of the Eiffel Tower, with its steel framework, restaurant and numerous American tourists.

Even though most Danes regard meatballs as a national dish, it was actually German mercenaries who introduced the first version of the meatball to Danes in about 1700. | 05.07.10

PROCESSING

Tulip in the eye of the storm From 1 June until 30 November, the hurricane season hits the area around Puerto Rico, something which is acutely felt by Tulip, one of the world’s biggest producers of canned meat products; demand shoots up dramatically when an imminent hurricane is forecast.

- The authorities encourage all citizens to stock up on canned food and drinks for a week, so when a hurricane warning is issued, the shops are cleared of goods, says Tina Roed Garza, Brand Manager at Tulip Food Company.

CHEERS AND BON APPETIT! English pubs are largely famous for their ice-cold pints, but a considerable share of revenue actually comes from food sales – including hams from Danish Crown.

PUB FOOD Most people associate English pubs with darts, pool and, of course, cold pints. However, even though lots of beer is served over the bar, a considerable part of revenue stems from food sales.

- On average, 60pc of revenue comes from beer sales while the remaining 40pc comes from food sales. A lot of singles eat pub fast food instead of cooking for themselves, explains Lars Albertsen, Director Export/Foodservice in the UK. This goes some way to explaining why English pubs turn over GBP 72 billion and thus represent an interesting opening for selling Danish Crown products to hungry English pub-goers.

- The pubs constitute a massive market.

Many of the meals eaten out in the UK are consumed in pubs, and our biggest customer is a pub chain which takes deliveries of 20-25,000 salted hams every week, says Lars Albertsen.

CLOSELY FOLLOWING WEATHER FORECAST Tina Roed Garza keeps a close eye on the weather just like the Puerto Ricans and the islanders off the coast.

- Many people have a map at home for plotting the storms which have been forecast so they are always up to date with the situation. It is crucial that all families have enough food to survive on until help reaches them, says Tina Roed Garza.

Like other companies, Tulip therefore advertises on The Weather Channel, which attracts a lot of viewers in the hurricane season. | 19.08.10

The hams are usually carved at the pub as part of carvery menus, and they are extremely popular with customers.

Canned food is good for bad weather. Which is why Tulip is acutely aware of the hurricane season in Puerto Rico.

Lars Albertsen therefore expects a record number of Christmas hams from Danish Crown in Faaborg to be eaten by British pub-goers.

- We expect to sell one million Christmas hams this year, and as the hams weigh 5-6 kg each, it adds up to a lot of tonnes, says Lars Albertsen with a smile.

NEW POSSIBILITIES Pub sales is one of the projects that are continually helping to boost revenue at Danish Crown Foodservice in the UK. - Foodservice accounts for about 20pc of Danish Crown’s revenue in the UK, but it is a growing market, and we supply 200-300 wholesale catering companies.

In addition, every week we deliver 300-400 tonnes directly to local butchers who usually have a contract to supply ready food to, for example, schools or nursing homes, and this is also an interesting market, explains Lars Albertsen.

He sees considerable potential for further growth, and specific products are now being developed which can boost the range offered to pubs, and thereby win an even greater share of the large pub food market for Danish Crown. |

Pigs’ brains a hit in Mexico When Mexicans feel like a quick snack, they often go for Taco Sesos. Or in English: tacos with brains, including pigs’ brains.

The brains are usually boiled and then fried with onions, tomatoes, coriander and chilli before being wrapped in tortillas with a suitable dressing.

- For many years we have had stable and satisfactory sales of pigs’ brains to Mexico, where it is a very popu-

lar delicacy, says Peter Frederiksen, Export Manager in Danish Crown with responsibility for South America.

Danish Crown is one of a small number of European slaughterhouses which are approved for exporting brains to Mexico, which takes about 65pc of the brains which are removed. The same is true of pigs’ ears, which are also a favourite local delicacy. | 26.08.10

Tacos with pigs’ brains. A hit in Mexico...

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TRADITIONS IN MODERN POLAND Babuni means ‘granny’ in Polish. Today, it is also the name for a wide range of traditional products which are proving popular in Polish homes. Sokołów, one of Poland’s biggest meat producers, is behind the idea, and has turned traditions into one of the company’s biggest innovations.

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PROCESSING

“It is very important for us that we do not change the taste or the ingredients.”

TRADITIONS Boguslaw Miszczuk was manager of Sokołów’s slaughterhouse in Czyzew when, in 1993, he took the idea for the next product from an old traditional sausage.

The ham was called Babuni, which means ‘granny’, and even though Boguslaw Miszczuk had faith in the idea, he never imagined it would develop into the leading product it has since become.

The product has gone from strength to strength in Poland, and the large number of prizes won both in Poland and abroad, for example at the prestigious IFA Fair in Frankfurt, bear witness to the fact that consumers, customers and competitors soon had to acknowledge that Boguslaw Miszczuk, who is now President of the Sokołów Management Board, had revolutionised the Polish market with his innovative product.

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able to dispatch tonnes of tasty hams to Polish consumers daily. And Sokołów now offers a whole series of products bearing the Babuni name, which is known by virtually all Polish consumers as the name of the best cold cuts, sausages and hams in the market. And the secret is simple. The Babuni ham recipe has not changed for 17 years.

lar that a number of other manufacturers are now using the brand, thereby boosting Polish consumers’ knowledge of the super ham, at no cost to Sokołów.

- It is very important for us that we do not change the taste or the ingredients. We have, of course, come under pressure from customers who would like a cheaper product, but we have stuck with the original recipe. This means that the Babuni ham has a high meat content and is smoked in the traditional way to achieve just the right smoked flavour which is so sought-after by consumers, explains Boguslaw Miszczuk.

A good Babuni ham weighs about 8 kg, and as this is almost too much for a single household, Sokołów is currently trying to take the popular ham to the market for sliced products.

INCREASING CAPACITY He is proud that Sokołów has successfully combined the classic taste with today’s modern production, and he is delighted that the Babuni brand has become so popu-

At the same time, efforts are, of course, being made to spread the news of the fantastic ham to even more consumers.

- Demand is very high, and it has been decided to quadruple capacity for sliced products to ensure that we will be able to meet the considerable demand in future, says Boguslaw Miszczuk who, from his office at the Sokołów headquarters near Warsaw, enjoys views of a genuine success story created by the hard work and innovativeness of the employees at the small slaughterhouse in Czyzew. |

PROCESSING

Lucyna Pomeranska works at Sokołów.

Traditional hams have helped create the foundations for Sokołów’s success.

The hams are smoked according to traditional methods, which ensures precisely the smoked flavour that Polish consumers demand.

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CSR

From pig to sausage – in Poland collaboration between farmers and meat companies is close.

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CSR

SLAUGHTERHOUSE HELPS PORK PRODUCERS IN POLAND Sokołów is working closely with Polish pig producers on breeding, modernising production and environmental initiatives.

CSR Together into the future. This is the name of the programme which Sokołów is implementing together with a number of Polish pig producers.

Sokołów is one of Poland’s strongest meat brands – and its second-biggest meat supply company. The aim for Sokołów is to improve raw materials and ensure a stable supply of pigs for slaughter, while the pig producers who are part of the programme are offered assistance to improve their semen for breeding, knowledge about new technology, assistance when talking to their banks and help to improve animal welfare on the farm.

- The aim of the programme is to establish long-term collaboration with a number of pig breeders who undertake to supply raw materials of a high quality, and a lot of attention is being devoted in particular to the work aimed at introducing the best genes in their breeding activities, says Jerzy Majchrzak.

He is convinced that close collaboration with the pig producers is the best way of strengthening Sokołów’s position in the Polish market.

- We are the first company in Poland to implement a programme of this kind, and it is important for us to look at all aspects of production. After all, a professional farmer should not only think about money, but also about the impact which his farming activities have on the environment and on the well-being of the animals. Therefore, as part of our programme, we also make professional vets and agricultural advisors available to producers, and we help them when meeting with their banks, says Jerzy Majchrzak.

PIGS ARE THE FUTURE Today, Sokołów buys approx. 50pc of its raw materials from producers who are part of the programme and, according to Jerzy Majchrzak, it is essential that Sokołów constantly increases its supply of raw materials.

- The Polish population eats a lot of pork, and consumption is increasing. We therefore need huge volumes of good-quality raw materials to keep up with demand. At the same time, it is crucial that increasingly important issues such as the environment and animal welfare are addressed by the programme as it will have a significant bearing on Sokołów’s business for many years to come, says Jerzy Majchrzak. |

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A SWEDISH IDENTITY IS IMPORTANT FOR KLS UGGLARPS, WHICH DOES NOT GENERALLY MENTION ITS DANISH OWNERS

KLS-UGGLARPS Danes and Swedes have a lot in common. At least that’s what many people around the world think.

However, sometimes it’s the little things that make the difference – for example the food we eat. By far the most people worldwide prefer products from their own countries – and here Danes and Swedes are no exception; it means a lot to Swedish consumers knowing that the pork chops which they put in their supermarket trolleys come from Sweden.

It is for this reason that no changes have been made to the Swedish identity at KLS Ugglarps, even though the company is now owned by Danish Crown.

- The name holds a lot of value for us, which is why it has been important to retain it.

You could say that we are a Swedish company with Danish Crown’s strong muscle, explains CEO of KLS Ugglarps, Johan Andersson.

He heads a business which, since it was taken over by Danish Crown, has continually increased its share of slaughterings in the Swedish market. This is because, among other things, the company is able to produce high-quality products as a result of intensive product development.

- It is part of our strategy to develop a number of high-end products, and we also have an employee to handle food service so we expect considerable growth in that area, says Johan Andersson.

He points out that there are significant differences between Denmark and Sweden.

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SWEDISH COMPANY WITH DANISH MUSCLE This applies to consumers’ preferred tastes and the physical conditions, such as the temperature of the cold counter.

- Swedes generally prefer a smokier flavour.

In Sweden, 80pc of the hams we sell have a very smoky flavour, while in Denmark it is very few. Swedes also prefer saltier products, with the added advantage that they keep for longer at higher temperatures. In Sweden, the temperature in the cold counter is 8°C, while in Denmark it is only 5°C, which means that less salted products keep longer in Denmark, says Johan Andersson, who hopes, however, that the temperature will be reduced in Sweden.

In recent years, KLS Ugglarps has increased its share of slaughterings in Sweden from 12pc to 20pc, and Johan Andersson is in no doubt that the company will build even further on this position in the years to come.

- Our official target is for 25pc of slaughterings to take place in Sweden, says Johan Andersson, who has Sweden’s new food legislation in mind as he works towards the objective.

- The intention with the legislation is that we develop our business and products according to four parameters. These are consumer well-being and health, the climate and the environment, having a wide product selection and transparency in production. These are four points which we can and will address at KLS Ugglarps, and I am convinced that the business in Sweden will continue to develop positively as a Swedish company backed by a strong Danish Crown, says Johan Andersson in conclusion. |

- In Europe, I think it is only Sweden and Albania that have such high temperatures, smiles Johan Andersson.

BBQ SUCCESS Despite the differences, Johan Andersson believes there is considerable scope for creating greater synergies between Danish Crown in Sweden and Denmark.

- Swedes and Danes largely buy the same cuts, and the Grill’it products have proved successful in both countries. There might be a slight difference in seasonings, but generally there is every chance of realising benefits through closer collaboration, says Johan Andersson.

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SWEDEN

Tulip and Danish Crown have played a key role in developing Scandinavia’s biggest shopping centre in the Swedish town of Nordby close to the Norwegian border.

BORDERING ON SUCCESS BORDER TRADE If you asked a Dane to name Scandinavia’s biggest shopping centre, most people would probably think of Fields in Copenhagen. Perhaps he or she would also consider the shopping scene in Oslo, or a smart centre for exclusive brand clothes in Sweden’s capital, Stockholm.

However, it is not Bang & Olufsen, expensive restaurants or brand clothing that generate the biggest sales in Scandinavia. It is meat.

Every day, tens of thousands of Norwegians drive to Svinesund, where they cross the border to Sweden. Here, they visit the small town of Nordby in the Municipality of Strömstad, where the local shopping centre posts annual revenue of about SEK 3.7 billion. And much of this revenue is generated by sales of products from Danish Crown, which each year sells about 2,700 tonnes of processed meats and fresh meat up near the Norwegian border.

So explains the manager of Grensemat AB, Göran Lundgren. Grensemat owns the three biggest food stores in the area, MaxiMat Svinesund, MaxiMat Nordby and Nordby Supermarket.

Göran Lundgren was actually involved in kicking off the shopping boom which transformed a small, 500-square-metre shop into a shopping centre that now has 6.5 million customers a year, with as many as 42,000 customers on a busy summer’s day.

Most of the customers are Norwegians, and many of them make the journey to buy meat in bulk.

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- The three shops which I’m responsible for generate annual sales of SEK 1.8 billion, and about 45pc of revenue comes from meat products. 98pc of our customers are Norwegians, and as half of Norway’s population live in the area around Oslo Fjord, we have a very big catchment area in Norway, says Göran Lundgren.

CLOSE COLLABORATION To create this success, he has worked very closely with a number of suppliers. These include Tulip Food Company and Danish Prime, whose products stand out on the shelves when walking around Maximat Nordby.

- We prioritise quality and stocking strong brands such as Danish Prime, Tulip and Danish Crown. Close supplier collaboration is very important, and knowing that we can always have the products we need delivered.

With 42,000 shoppers on a good day, a great deal of goods are required to meet customer demand, says Göran Lundgren.

Customers often come here to stock up, and it is not unusual to see Norwegians pushing trolleys filled to the brim with bacon, sausages, steaks and pork tenderloin.

- Norwegians can potentially save a lot of money. Bacon, hamburgers and tenderloin are generally 60pc cheaper than in neigh-

Danish Crown and Tulip have a large share of the border trade in northern Sweden. Here, Norwegians flood across the border to buy meat.

SWEDEN

bouring Norway, and we advertise extensively on radio and TV in the regions closest to Nordby. For example, we had an ad in the biggest Norwegian newspaper, VG, in which we highlighted the price difference between the cheapest discount chain in Norway, REMA, and the prices in Nordby, among other things for bacon and several other products, says Göran Lundgren.

100 MILLION HAMBURGERS ON THE BORDER Tulip is also very satisfied with the collabor­ ation. Bacon sales in particular are huge, but sales of GØL barbecue sausages, hamburgers and JAKA products are also impressive in Nordby.

This year, the border shops have rounded a magic number in terms of their sales of hamburgers from Danish Prime.

- Hamburger sales have now topped 100 million, which is quite an impressive figure, says Lars Uppling from ML-food, which represents Danish Prime in Sweden.

Andreas Nilsson from Tulip is also very happy with the collaboration, and he visits Grensemat weekly to follow up on sales and business relations in general.

- We are incredibly happy with how things are going with Grensemat. It is benefiting everyone. The shopping centre’s owners are happy, as are, of course, all the Norwegians who come here every day because they can buy high-quality products far cheaper than in Norway, says Andreas Nilsson.

INCREASED GROWTH As things stand today, most of Danish Crown’s revenue in Nordby stems from sales of Tulip products produced under names such as GØL, Danish Prime and JAKA, while the rest are fresh meat products supplied by Danish Crown.

And according to Göran Lundgren, there is no reason to fear that border sales will fall.

On the contrary. Nordby Shoppingcenter has seen very high growth rates in recent years.

2010 will thus be its best year ever, and the coming years are likely to be even better.

- Nordby Shoppingcenter has grown extremely fast and is now the biggest in Scandinavia, while Maximat Nordby and Nordby Supermarket are the biggest food shops in Scandinavia, and we have our sights set on further growth in the coming years, says Göran Lundgren. | a magazine about growing values

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QUALITY FOR THE WORLD MARKET EXPORTS Japan is an important export market for Danish Crown.

Here, Danish Crown’s CEO Kjeld Johannesen serves pork sushi for the newly appointed Japanese ambassador to Denmark, Toshio Sano. Kjeld Johannesen is also a Japanese consul, with Danish Crown in Randers acting as a Japanese consulate.

EXPORTS

JAPAN Danish Crown exports more than 110,000 tonnes of frozen loins, necks, sides of streaky bacon and specialty products for the Japanese market and therefore enjoys first place among the biggest pork exporters to the country – even ahead of the USA and Canada. Danish Crown’s exports are worth about DKK 3 billion a year.

Danish sales of pork to Japan started in 1973. Danish slaughterhouses were among the first to be approved for sales to an otherwise closed market, back then through ESS-FOOD. Today, there are more suppliers in the market, but Denmark still enjoys a special status, which Danish Crown notices through its customer relations.

- We are number one in the country in terms of frozen meat, with a market share of just over 25pc. Our exports to Japan have for several years been on a par with Denmark’s total imports from the country. However, the financial crisis has also impacted Danish imports, and at the moment our exports are therefore about DKK 800 million more than imports of cars and electronics, for example, says Kjeld Johannesen, CEO of Danish Crown.

STRONG BRAND - The Japanese largely prefer meat from Danish Crown, because we have the best food safety standards in the world. There are no medication residues in the meat, which is tender, very uniform and we can supply it in large volumes. And the fact we can tailor our products to the Japanese factories has made us one of the world’s strongest suppliers in the market, explains Kjeld Johannesen.

This happens, for example, at Danish Crown’s large slaughterhouse facility in Horsens, where the practised slaughterhouse workers precisely butcher loins that only vary in weight by a few grams, and cut streaky bacon to fit the Japanese customers’ production apparatus.

Several of the slaughterhouses also receive regular visits from Japanese inspectors and customers, who want to inspect the world’s most modern slaughterhouse for themselves.

IMPORTANT MARKET Danish Crown’s exports to Japan account for 10pc of the Pork Division’s total tonnage.

However, in money terms, sales account for 15-20pc of revenue, so exports to Japan have been an important factor for the prices

WHEN PORK IS TRADED IN YEN

A good cultural understanding is an important precondition for doing business. When Danish Crown’s Board of Directors visited Japan in 2010, they also saw The Golden Pavilion in Kyoto.

EXPORTS

offered by Danish Crown to its owners, and Japan is thus one of Danish Crown’s most important markets.

Politically too there is considerable interest in Danish Crown’s trade with Japan. Thus, Kjeld Johannesen accompanied the Danish prime minister, Lars Løkke Rasmussen, when he headed a major business delegation that held meetings with customers and the political system at the beginning of March. And at the end of May, Danish Crown’s Board of Directors is travelling to Japan, among other things to host a big event at the Danish Embassy. | 07.05.10

Each day, 20 containers leave Danish Crown’s factories, destined for Japan. That equates to 100 containers a week or about 5,000 containers a year.

RITUALS IN SLIPPERS It is vital for the Japanese that rituals are followed, because this is how they decide whether you can be trusted, which is the starting point for all business dealings in Japan.

JAPAN With a slight bow, the gift or business card is exchanged with both hands. Japan is a country of rituals, and you need to know how to conduct yourself to be successful in business – both politeness and respect have a role to play at any kind of professional gathering.

Danish Crown’s Board of Directors was able to experience this first hand on their visit to Japan. For example, polite words were exchanged from the podiums during visits to a number of Japanese customers, which for the uninitiated could sound like hot air.

- Observing the rituals is very important for the Japanese, says Kjeld Johannesen, adding: - This is how they decide whether you can be trusted, which is the starting point for all business dealings in Japan.

FOOD SAFETY The Japanese are very focused on food safety, and on their formal visits to customers, members of Danish Crown’s Board of Directors were praised for the high quality of Danish meat.

They also saw the strict food safety inspections with their own eyes when visiting one of Japan’s biggest meat companies, Nippon Meat Packers.

- The Japanese run all the meat products through metal detectors, and even on a visitors’ gallery where you are separated from production by walls and glass windows, you wear two hairnets on top of each other, says Deputy Chairman of Danish Crown’s Board of Directors, Erik Bredholt. | 01.06.10

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EXPORTS

Kjeld and the PM in Japan JAPAN - Japan is an important market for us, and being able to meet our Japanese customers in the company of the Danish PM sends a very strong signal, says Kjeld Johannesen, CEO of Danish Crown.

He has just returned from Japan, where a number of Danish Crown’s Japanese customers were able to meet the Danish prime minister Lars Løkke Rasmussen, who was part of a business delegation with, among others, Kjeld Johannesen.

The trip was also an opportunity to discuss important issues with a number of Japanese business organisations, and Kjeld Johannesen seized the chance to mention a freetrade agreement with the EU. It is not the first time that Kjeld Johannesen has participated in a business delegation with the Danish PM. The last time was in 2006, when he went to Japan with Anders Fogh Rasmussen. | 11.03.10

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Danish pork popDanish pork a ular in Japanese best-seller in Japan noodle soup JAPAN The sausages are half the size, and to a Danish palate would seem both fattier and slightly sweeter than sausages for the Danish market. However, in Japan the small sausages from Marudai Food have been voted best-in-class for the third year running.

The main ingredient in these popular sausages is meat from Danish pigs, reared, slaughtered and processed in Denmark, as this is perceived in Japan as the ultimate quality guarantee.

On Wednesday morning, Danish Crown’s Board of Directors dropped in to the head office of one of Japan’s major food processing companies, Marudai Food in Osaka, which bases much of its 100,000-tonne annual production on raw ingredients from Danish Crown members. The visit by the Board of Directors is seen by the Japanese as a sign of the high priority given to the Japanese market. | 02.06.10

JAPAN 500 bowls a day – 365 days a year.

And that’s just at one noodle restaurant, Hiday Hidaka. It is located in Tokyo, and is one in a chain of 250 restaurants with the same name.

Each bowl of Japanese noodle soup, or ‘ramen’, served across the counter at lunchtime includes 40 grams of pork from Danish Crown. This means that, over a year, more than 45 million bowls of noodle soup with Danish pork are consumed. And that’s just in the Hiday Hidaka restaurants.

The restaurants go out of their way to advertise the fact that the meat is Danish. | 31.05.10

EXPORTS

Five dishes, four The taste of target groups and Japanese school food 20 Japanese JAPAN The challenge was to develop five new dishes in 60 minutes based on byproducts from slaughterhouse production. These were cuts which are not normal ingredients in fine cuisine, but which can perhaps be optimised and used in processed products on the Japanese market.

Ready to take up the challenge were 20 Japanese, who were recently in Aarhus to try their skills as innovative food developers as part of their Pork Academy training.

They came from up to fifteen different Japanese companies, where they work as product developers, buyers, marketing employees and salespeople. | 03.06.10

JAPAN Every day, 15 million Japanese schoolchildren participate in the local school food scheme. The food is prepared locally, but the menu is decided centrally in the Japanese Ministry of Education by dieticians following the ministry’s guidelines.

Seven of these dieticians from central government have recently been visiting both Danish Crown and Tulip to sample the Danish raw ingredients. Their visit included a trip to Tulip’s Inventorium in Vejle, an experimental kitchen which develops brand new products.

In the kitchen stands a small man with big visions – Jørn Sølvsten, Factory Manager in Hadsund. In one hand he holds a knife, in the other a good piece of Danish streaky bacon. Making four swift, precise cuts, he produces a perfect piece of streaky bacon, butchered according to Japanese specifications.

- The Japanese requirements as regards their school food and nutritional values are pretty well the same as those we already meet with, for example, products from Den Grønne Slagter, says Mette K. Iversen, a project manager and nutritional consultant at Tulip.

The dieticians’ lunch buffet included samples from both Tulip and Danish Crown.

However, it was the home-made hotdogs with Japanese sausages that sparked the greatest enthusiasm. | 19.08.10

Inspected by Mr Shimojo JAPAN Every week, a Japanese inspector visits the slaughterhouses in Horsens, Ringsted and Herning to ensure compliance with the extremely high food safety standards.

SIX-HOUR INSPECTION The current inspector is Kazuya Shimojo, who is employed by Marudai Food Company. He is based in Vejle, and pays weekly visits to Danish Crown’s slaughterhouses in Horsens, Ringsted and Herning.

Each visit to Horsens lasts six hours, during which time he takes random samples of streaky bacon, neck of pork and loin.

- I look out for all types of unwanted remnants from production in the form of bits of bone, gristle, hair as well as foreign bodies such as plastic. In addition, I check the length, width and thickness of the cuts against our specifications, explains Kazuya Shimojo, as he makes his way down through the slaughterhouse’s long aisles.

NEW MEAT VACUUM Armed with a ruler, thermometer and very sensitive fingers, Kazuya Shimojo starts to carefully go over the selected cuts.

At the end of his round, he takes photographs of the day’s inspection results which, together with a report, are sent to the head office in Japan. | 08.10.09

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SIDE BY SIDE HORSENS High quality and food safety go together and are vitally important for sales of Danish Crown’s products. Whether the customer is taking delivery of container loads of uniform products on the other side of the world – or is a star chef who needs ten pork jaws.

QUALITY

Slagter Munch on the BBQ Skagen is a favourite holiday destination for Danes, and visiting the well-reputed butcher Slagter Munch is a must.

- Real hits this summer have been short loins matured on the bone, which we receive from Danish Crown. It really is quality meat, says Jens Munch, and adds: - We find that customers return for more once

they have tasted the beef fillet or tenderloin.

It is outstanding meat which customers are willing to queue for, says Jens Munch.

Other hits for this year’s summer barbecue season include Danish Crown’s pork T-bones and veal chops, which proved very popular with the shop’s customers. | 08.07.10

Pigs’ tails for the world’s best For the first time ever, a Danish restaurant has been hailed the world’s best. This was a reality when Restaurant Noma took the coveted top spot at the San Pellegrino Awards in London on Monday. Number two was the legendary El Bulli from Spain, while The Fat Duck from England came third.

Danish Crown’s ‘Gold Room’ in Kolding supplies several specialities to Noma, and we would like to take this opportunity to send the Noma team our warmest congratulations.

The Gold Room supplies delicacies such as Duroc pigs, sweetmeats and pigs’ tails to Noma.

- It’s usually the slightly off-beat things that Noma asks for. Unusual cuts and specialities which tie in perfectly with Noma’s completely unique menus and their use of rare Nordic ingredients, says Rone Stokholm Kruse, who manages the Gold Room in Kolding. | 26.04.10

Stars shower down on the ‘star route’ Copenhagen’s status as a gourmet city was further reinforced by the 2010 edition of the Michelin Guide which awarded a total of twelve Michelin stars to a number of Copen­ hagen’s top restaurants.

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laboration with some of Denmark’s best chefs and restaurants. Among other things, Danish Crown supplies meat to more than 30 of the top gourmet restaurants in Denmark. | 17.03.10

Hams worth their weight in gold Slagter Christiansen, which has been run by Henrik Christiansen and his wife Rikke for the past sixteen years, is proud of being a good traditional butcher. All the butchery products are made from scratch, and this wins approval.

Last year, the shop won the Danish Meat Association’s (now L&F) annual butcher’s award, while ‘Danske ������������������ Slagtermestre’, a master butchers’ association, conferred the title of honourable butchers on them. And then there was the competition in Germany, recalls Henrik Christiansen with a smile: - We didn’t expect to win anything. But we came home with six gold medals and a silver medal.

Something which has

never happened before, says Henrik Christiansen.

FANØ HAM Since 1996, Slagter Christiansen has produced the local Fanø Ham. It takes six months to produce the hams, and the flavour is out of this world. Recently both the ham and several other products were certified and approved for marketing under the ‘Vadehavsguld’ – or Wadden Sea Gold – label, which offers consumers high-quality products made with respect for authenticity, traceability and credibility.

Henrik Christiansen takes delivery of 40 heavy pig hams from Danish Crown every week together with other raw ingredients from the Gold Room. | 12.11.09

THE best salami The judges were unanimous in their verdict on who makes the best salami in southern Jutland. Their choice fell on the butcher Hans Henrik Johansen from Aabenraa Slagteren, who took home both the first and second prizes in the Jyske Vestkysten newspaper competition, in which a number of butchers in southern Jutland stake their claim on being the best in the region.

The southern Jutland butchers belong to the gourmet butchers’ network ‘Gourmetslagterne’, which is Danish Crown’s collabor­ation with some of the very best butchers in Denmark. | 14.09.10

Top chefs use DC meat Octopus ash, breadand-beer soup sorbet and oyster-flavoured leaves were just a few of the taste sensations when young foreign top chefs from some of the world’s best restaurants visited Copenhagen – Danish Crown was one of the event sponsors.

- We need to support skilled young chefs on their way up the ladder, and give them the possibility of playing and experimenting their way to interesting and exciting new recipes, says Henrik Rosbjerg, a Danish Crown sales manager. | 02.09.10

QUALITY

INSPECTION

Every year, Danish Crown’s slaughterhouses are inspected by both customers and the authorities.

Marks & Spencer’s inspector has checked the Ringsted slaughterhouse eight times this year.

»

AT 05:01 CSR For the past four years, Mel Brend has inspected Danish Crown’s slaughterhouses for Marks & Spencer, so she is beginning to feel slightly at home at the facilities. She quickly passes through the hygiene gate and, with freshly washed hands, starts the inspection.

She begins by inspecting the black slaughter line in minute detail.

- I check that everything has been properly cleaned at the slaughterhouse. Are there any meat residues on the knives? Is the floor clean enough? Have the machines been properly cleaned? Even though it is the black slaughter line, Marks & Spencer believes that cleaning standards here are just as important.

Mel Brend makes a note of everything that catches her eye. Once the slaughter line inspection is over, all the relevant heads of section, the slaughterhouse’s own inspection manager, Margrethe Jensen, and Mel Brend come together for a meeting. The inspector then passes on her comments, both critical and positive, and then the inspection continues in cutting room 3.

AT 06:07 In the cutting facility, Mel Brend keeps an eye out in particular for any foreign objects.

- Even though a lot is being done to improve the situation, we still receive a fair number of complaints from customers finding foreign objects in the food. And that is not ac-

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QUALITY

Many of Danish Crown’s inter­ national customers regularly inspect the Danish slaughter­ houses to ensure they receive high-quality products. Here it’s Marks & Spencer.

» ceptable. Therefore I check to see whether the plastic trays are frayed, whether the machines are well-maintained, whether there is a risk of anything falling in the food, for example from the ceiling, or whether there is anything else that can end up as a foreign object in the food products we sell in our shops, says Mel Brend.

- If there is anything which is not as it should be, it is mentioned and sorted out immediately. This way I can see that they are willing to deal with any problematic issues, says Mel Brend.

AT 07:00 Mel Brend and Margrethe Jensen leave the production departments and walk across to the administration building. Here, Mel Brend will check the records to make sure that the meat supplied to Marks & Spencer really does come from ‘happy’ pigs.

- It is important for Marks & Spencer to check that we receive meat from happy pigs because the company pays more for it, says Mel Brend, and continues with the paperwork.

AT 11:00 By 11 am, the inspection of the production facility is complete. Together with Margrethe Jensen, Mel Brend checks Danish Crown’s own-inspection documents and finally, at 1.30 pm, the results of the inspection. This inspection was the last of eight this year, but she expects to return in 2011. |

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QUALITY

FROM MEAT TO FOOD High food safety standards demand constant focus, and that all employees make an effort.

CSR Danish meat production is well known for its high food safety standards, which are perhaps the best in the world. Here, food safety takes pride of place, and it is the foundation for Danish Crown’s exports – and thereby for the company’s existence and a great many jobs.

standards on hygiene and food safety such as Japan, the USA, Australia and China.

For customers to remain confident in Danish Crown, it is vital that Danish Crown focuses on meeting the required standards. |

Danish Crown exports 90pc of production, with sales to countries that impose strict

FAST SALMONELLA RESULTS Fast results from salmonella analyses are important to Danish Crown. DC has therefore introduced the fastest analysis method in Denmark, which only takes 11 hours.

CSR Danish Crown exports about 90pc of production. This means that every week several hundred tonnes of meat are sent out of Denmark. Before the fresh meat is shipped to customers in e.g. Sweden, Finland and Germany, it is important that the meat is inspected for salmonella.

Time is money where exports are concerned.

In autumn 2009, Danish Crown therefore implemented a new and far quicker method for analysing salmonella.

- The new method brings the total analysis time down to 11 hours, where previously it was about 19-20 hours. In other words it is significantly faster, says Laboratory Manager in Horsens, Pia Andersen.

SEVERAL NEW INITIATIVES Other initiatives have also been launched to cut the analysis time. Among other things, night shifts have been introduced at the labs in Horsens and Herning.

- The night shift has been started so we can make an earlier start on analysing the samples taken the previous day. The analysis work now commences at midnight, and the results are ready the next morning. Before we had a night shift, we didn’t receive feedback on the samples until between 12 noon and 2 pm, so it has made our analyses much more efficient, says Pia Andersen.

This in turn improves storage and transport logistics because the export department can more effectively plan what needs to be sent out and when. And it is ultimately an advantage for our customers, who are pleased they can receive their deliveries even sooner – as much as 24 hours earlier. |

DANISH FOOD SAFETY IS BEST IN THE WORLD TOP 17 This is the ranking which resulted from the Canadian study:

France/Italy 16 - 17

15 Ireland

14 Germany

13 Belgium

12 Switzerland

11 Sweden

10 Norway

newspaper ‘Landbrugsavisen’ cites with the Johnson-Shoyama Graduate School of Public Policy as the source.

9 Austria

8 Netherlands

7 Finland

6 Japan

Canada/USA 4 - 5

3 UK

2 Australia

1 Denmark

CSR Danish food safety is top-class. This is the result of a Canadian study of seventeen countries, and which the farmers’

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QUALITY

The butcher and the chef – Peter Mortensen (on the left) and Jesper Koch – are very impressed

by Danish Crown’s Gold Room, which supplies exactly the meat and the cuts they want.

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QUALITY

the chef, the butcher – and the gold room GOURMET It’s all about meat. Not lots of meat, but hand-selected cuts carefully chosen according to the individual wishes of each customer. Here the expression “what you want is what you get” is true every single time.

Large short loin cuts of beef hang on the hooks in the cold room with yellowish streaks of fat, while a box in the corner contains trimmed tenderloins. As experts, gourmet butchers Peter Mortensen from Lemvig on the west coast of Jutland and star chef Jesper Koch from Aarhus are in their element. They barely notice the fact that the temperature is close to freezing point. The room is kept at a constant 0-1°C, and the air humidity is 76pc, the ideal conditions for maturing short loin.

The short loins hang for 90 days, improving all the time. Because in the Gold Room, which the cold store is called, only the best is good enough. This approach perfectly suits the two quality-conscious experts.

- The Gold Room is worth its weight in gold for us butchers. Our small specialist shops are not equipped with such a facility, but we want to offer our customers meat of the best quality and the best flavour. This is what our collaboration with Danish Crown enables us to do. The Gold Room is a wellness centre for meat, says Peter Mortensen.

For the past five years, Danish Crown has

»

collaborated with the gourmet butchers, a dozen of the best butchers in Denmark who take an uncompromising approach to their craft. They have a number of special requirements. For example, they like to receive short loin cuts which have matured for only three weeks before delivery, and they butcher them themselves into fillets and ribeye steaks.

Moreover, each of the butchers has his own wishes and ideas about the meat. For Peter Mortensen, it is dream sourcing meat which has extra fat marbling. In his opinion, it produces the best flavour.

- It’s almost like Kobe meat, he says, smiling from ear to ear.

Jesper Koch, who runs a gourmet restaurant, brasserie and catering company at the harbour in Aarhus with his twin Michael and their younger brother, also attaches a lot of importance to getting just what he wants as one of the 30 or so top chefs in Denmark who make up the ‘star route’.

- It is a huge advantage being able to get the cuts we want from the Gold Room. They choose the best cuts for us here, and we can get exactly what we need. However, we obviously can’t take five pallets in one go. I think it’s great that it’s feasible – that we can have ten pork jaws, for example, delivered to the door. It’s really impressive, says Jesper Koch with feeling.

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He walks past a man-high stack of boxes and sticks his nose into the top one.

- What is it? Roll-ups? Could I have a box of them too tomorrow?

With that said, an order for streaky bacon has been placed. That is often how it’s done. As manager of the Gold Room, Rone Stokholm Kruse is used to chefs being impulsive. Once, he was woken at 1.45 am on a Sunday morning by a chef who had just remembered that he needed to order calf hearts.

- That’s the way it goes sometimes. He had doubtless closed the restaurant, tidied up and realised that he needed more meat. In

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the Gold Room, we aim to supply exactly what our customers want. I usually say that if it sits on an animal, then we can get it, explains Rone Stokholm Kruse.

If what is required is not included in the Gold Room’s assortment, that is no problem. He finds out which Danish Crown department can supply the special cut the customer wants. As a trained retail butcher, it is a point of honour for Rone Stokholm Kruse to supply the goods every time.

Jesper Koch values the teamwork between the Gold Room and the chefs. Given the high quality requirements, it is reassuring for him that he can rely on the meat he gets. Nevertheless, neither Jesper Koch nor

Peter Mortensen are afraid to call and say if they feel the meat is not up to standard.

- Then it’s replaced. That’s not how it was ten years ago, remarks the gourmet butcher from Lemvig.

And the chef from the famous restaurant Brdr. Koch in Aarhus agrees: - For us, it is incredibly good that we can count on the quality. I’m not worried about eating raw veal, beef or pork, and that’s only because I feel totally confident about the quality. It is not on for a company as large as Danish Crown if its food safety and quality are not up to standard, says Jesper Koch.

» For the gourmet butchers that Danish Crown works with, the collaboration offers obvious advantages.

- I really like the fact that, by being part of the collaboration, I can obtain special things like meat from Duroc pigs. It is important for a butcher’s shop like mine that I can offer my customers special products which they cannot buy elsewhere, explains Peter Mortensen.

The gourmet butchers also have marsh lamb, veal short loin and Friland free-range pork in their cool counters to offer something really special to customers. And it’s popular. Sometimes to such an extent that Peter Mortensen finds it hard to keep up with demand.

- But there’s not a lot you can do. If a product is not ready because it isn’t completely matured, customers are told to come back the following week, he says firmly.

He refuses to compromise on quality, both when buying and selling meat.

The Star restaurants also have their favourites and specialities which demand that bit extra. For example, Kong Hans has added dried bacon, or ventrèche, to its menu.

Here, the Gold Room collaborates with the butcher Slagter Aalbæk to produce the delicious bacon which is dried, slow-cooked and pressed, but not smoked unlike most bacon.

For Jesper Koch, one of the most popular dishes is glazed pork shank, slow-cooked for 28 hours at 71°C. - When serving a whole shank at the table, people think it tastes fabulous, he says, and mentions that he also buys a lot of forelimbs, leg of pork with barbecue marinade, pork jaws, sweetbread and hotballs – a muscle of the shank meat which contracts into a ball and almost tastes like a boneless bird – but Jesper Koch has also experimented with spleen and pigs’ snouts Whether it is special or small, the Gold Room can deliver. Because it’s all about food. |

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INNOVATION

1.

2.

NORDIC AWARD FOR DC PACKAGING Danish Crown and SCA Packaging have jointly developed a new type of packaging which brings marked savings across the board – and for which they have won an award.

PACKAGING So far, Danish Crown has been exporting its frozen neck fillets in transport packaging consisting of three parts: a fourpoint glued base, a lid and a loose insert for partitioning. Now SCA Packaging Denmark and Danish Crown have developed a new solution which offers a number of real advantages – for which they have received a Scanstar award today.

The new packaging, which is one out of a total of nine Scanstar winners, is made from a single piece of corrugated cardboard which also integrates the insert.

TULIP HELPING TO CREATE TOMORROW’S PACKAGING Tulip is involved in a project that will make it easier for consumers to get to their food.

PACKAGING A lot of Danes battle each day with packaging for cleaning agents, medications and even cold cuts, so much so that something had to be done. This was the background for a large project

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3.

4.

- This is packaging which ensures efficient production, reduces waste, shortens packaging time, streamlines logistics and reduces environmental impact, says the Scanstar jury in its comments.

- With all these advantages, it actually amounts to a minor revolution, says Kim Revsbæk, Group Purchaser from Danish Crown’s Purchasing Department.

to transport the packaging which, of course, reduces our carbon footprint correspondingly.

In addition, less storage space is required at DC. The new packaging has been test-run at the slaughterhouse in Horsens and is soon ready to replace the previous solution. | 20.10.09

SAVING SPACE, TIME AND CO2 - We are constantly asking our suppliers to help us reduce costs, but also to minimise CO2emissions, and the new solution from SCA is a winner on both counts. On top of which the new solution is even three or four times stronger than the old packaging. This is what you can all a significant improvement, says Kim Revsbæk.

Reduced cardboard consumption brings savings of more than DKK 750,000 a year for Danish Crown, but the new packaging solution also saves both time and labour.

The new packaging solution also saves both time and labour. Moreover, it takes up less space, so we only need half as many lorries

200g The same meat in new ‘cans’. at the Danish Technological Institute (DTI), where Tulip, as the only participating food company, was looking at how to make it easier for consumers to get to their food.

- It is important for Tulip that consumers have a positive experience when buying our products. Tulip’s products must taste the best, they must look appealing, and the packaging must be easy to open and close, says Bent Dahlgaard, Tulip’s Product Development Manager.

DC packaging wins Nordic award. Group Pur­ chaser Kim Revsbæk, Danish Crown (centre), and designer Poul Jensen (right) and Key Account Manager Benny Olesen (left), SCA Packaging, with the new packaging solution which has just been awarded a Scanstar.

A study from DTI shows that Tulip’s sliced meat packaging is some of the easiest to open on the market. However, according to Bent Dahlgaard, there is still scope for improvement: - Today’s meeting produced more than know-how. After several hours of work with films, tape and scissors, three new prototypes were developed which we will now take further, and which will provide a starting point for new and exciting cold cuts packaging in the shops.

Bent Dahlgaard has high hopes for the project which, among other things, will result in a major report with recommendations for all sectors. | 21.01.10

PACKAGING

340g It is still ‘canned’ food, but now the tub can be repeated­ ly opened and closed. Danish Crown’s innovative packag­ ing has been very successful worldwide.

PACKAGING, LABELLING AND WASHING UNDER ONE ROOF

NEW PACKAGING WITH EXCELLENT PROPERTIES PACKAGING Several years of work developing a new plastic ‘can’ is now over, and the new tub is in use for the benefit of Tulip and consumers alike.

- For consumers, the difference between traditional metal cans and the new plastic tubs is like the difference between driving in a car that is not equipped with power steering and driving one that is. If you haven’t tried it before, it’s not a problem, but as soon as you have, it is hard to switch back.

This is how International Sales Director René M. Olsen describes the properties of the new plastic tubs which have already been introduced in France, and which will soon be launched throughout the rest of Europe and also in a number of overseas markets.

The new packaging comes in two sizes, 200 g and 340 g. It is far easier to open and empty, and if consumers want to save some of the contents for later, all they need to do is replace the lid and pop the tub in the fridge. | 16.11.10

PLASTIC TUBS IN THE UK PACKAGING A small official ceremony on Thursday marked the fact that Tulip’s new plastic packaging is being launched on the UK market. On the day, a distinguished visitor, Steve Murells, CEO of Tulip Ltd, visited the factory in Vejle and was presented with the first plastic tubs which replace the old cans.

PACKAGING After completing the building work in record time, the new extension in Sdr. Felding in central Jutland is now in use. The building work started in April, the topping-out ceremony took place on 1 June, and the buildings were ready for occupation at the beginning of July.

- We moved in before the workmen were completely finished, says Head of Department Kim Smed with a smile.

The new packaging comprises three different kinds of redesigned black plastic tubs for Tulip’s Bacon Grill, Chopped Pork and Ham as well as Pork Luncheon Meat.

The extension, which covers 600 square metres, houses packaging, labelling and washing facilities for the many carts which are used each day, for example for marinating all the barbecue products during the summer season.

- We have been listed in basically all UK supermarket chains, where Tesco has taken all three variants whereas others have taken two, says René M. Olsen, Tulip’s International Sales Director. | 10.05.10

- It has improved our working conditions considerably that everything has been separated and that more production capacity has been freed up for daily production, says Kim Smed. | 20.07.10

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A SHIP STACKED WITH ‌ CONTAINERS Lots of containers with meat for eating in other countries.

Tastes differ, and Danish Crown sells all parts of the pig. So some containers are packed with pigs’ trotters, while others contain tenderloins.

EXPORTS

CHINA When the Chinese sink their teeth into pigs’ ears, toes and snouts, many of them come from Danish Crown, which over the years has significantly increased exports of Danish by-products to the world’s second-largest economy.

The Chinese themselves are the world’s biggest pig producers, but by far the majority of production takes place locally out in the countryside, too far from the growing numbers of well-off consumers in the large cities along the east coast.

In the autumn, a trading agreement was signed with China which opens up the Chinese market even more for the Danish Crown group’s products. This is very significant for Danish Crown’s future activities in the country says Søren Tinggaard, Deputy Chief Executive in Danish Crown: - For many years, exports of by-products to China have been growing, and the trading agreement now paves the way for sales of sausages and canned products. Once the agreement is finally approved, it opens up

completely new opportunities for us and can hopefully also help to boost sales of high-quality products in the longer term, he explains.

He says that in the large cities along the Pacific coast, there are growing numbers of middle-class people who are willing to pay reasonable prices for western foods with a high degree of food safety. The plan also includes targeting the Chinese retail chains and at the same expanding the product palette.

- Today, you can already find western goods on the Chinese shelves on sale at very high prices. The range is still limited to a small number of supermarkets, but it’s growing all the time. It is therefore very interesting for us to explore the possibilities for sales of cuts such as necks, loins, chops, spare-ribs etc., because these are also appreciated by Chinese consumers, says Søren Tinggaard.

In recent years, Danish Crown has significantly increased its exports of by-products to the world’s secondlargest economy, China. In the past twelve months alone, exports are up 15pc.

In the past twelve months alone, exports to China have increased by 15pc. |

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EXPORTS

JOINT EFFORTS IN CHINA CHINA Danish Crown, Friland and ESSFOOD pooled their resources with a joint stand in connection with the large Danish food drive in China which has just ended.

The stand was part of an event which twelve Danish companies and the Danish Agriculture and Food Council had organised in the Nordic Lighthouse in Shanghai last Friday.

Here, representatives from the Chinese retail chains, distributors and importers came to talk with the three DC companies about their products which together cover a lot of demand in China.

Danish Crown was represented by Export Manager Arnth Henriksen, who has just moved to Hong Kong to support DC’s initiatives in the Chinese market. | 30.08.10

SERVING UP EARS, TROTTERS AND SNOUTS CHINA In Denmark we rarely eat the pigs’ ears, trotters, brains, snouts, intestines and lungs. In China, on the other hand, these are regarded as delicacies and frequently used in cooking. A typical Chinese cold counter

often contains Danish by-products next to traditional cuts of pork, beef and poultry.

And in both Chinese homes and restaurants and street outlets, these parts of the pig are valued ingredients of Chinese delicacies.

ARNTH TO CREATE OPENINGS IN CHINA CHINA To support the establishment of contacts with Chinese customers, in 2010 Danish Crown has posted Export Manager Arnth Henriksen to China. He is based in Hong Kong after having spent the past three years selling goods from Danish Crown’s head office in Randers to China.

- Danish Crown is one of only a few foreign companies to have had direct access to China for several years, and this has ensured a

direct flow of goods without costly intermediaries; we have therefore established good trading relations which will now, as part of the first phase, be further developed. There is still some way to go before we see neck of pork and similar cuts in the Chinese shops, but that is our aim, says Arnth Henriksen.

Danish Crown’s sales in China are effected via its subsidiary ESS-FOOD’s sales office in Hong Kong. |

DC LAUNCHES CHINESE WEBSITE CHINA China is Danish Crown’s third-­ largest market in terms of volume, and the market is becoming ever more important.

Therefore, www.danishcrown.cn has just been launched. This is a smaller, Chinese version of the DC website which is intended to help forge contacts to new customers.

- We want to boost our trade with China so it is not just targeted at wholesalers but also at supermarkets and food companies.

They are calling for an easy way of viewing our product presentations, and the website

is a useful tool in this respect, says Area Manager Arnth Henriksen from Danish Crown’s export department.

The website presents some of the most important facts about the company, product catalogues and contact info for DC’s and ESS-FOOD’s Chinese export salespeople.

In addition to the website, printed marketing material is also being prepared in Chinese for customer visits and trade fairs in China. | 31.05.10

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SALES

ESS-FOOD RULES IN CHINA In the past twelve months, ESS-FOOD’s sales in China have totalled almost DKK 1 billion.

Nevertheless, there is still plenty of growth potential there.

TRADING Often, the salesperson’s task is to ensure that it is possible to sell all that the company can produce. However, that is not the case for ESS-FOOD in China. Here, customer numbers are huge and demand is massive so the problem is not selling – but the supplying number of slaughtered pigs.

With 1.2 billion consumers in China, there is plenty of demand. Morten Holm, Managing Director of ESS-FOOD, is therefore certain that there is still lots of potential in China, even though the company has increased sales by almost 50pc in the past twelve months.

- Denmark is one of the countries that have direct access to the Chinese market, and we can actually sell everything we can deliver in the form of products specifically for the Chinese market such as pigs’ heads, he says.

Today, ESS-FOOD has offices in Hong Kong and Qingdao, and together they handle all sales of Danish Crown products in China.

- The fact that all sales in China are organised by ESS-FOOD is a huge advantage. It ensures that Danish Crown does not compete with itself in the market, and it also creates better possibilities for ensuring synergies and building up a strong professional environment that continually helps to

GROWTH IN FRANCE The economic climate has favoured ESS-FOOD France, which has improved its earnings across the entire range.

TRADING ESS-FOOD France has every reason to be pleased after a year where developments have moved in the right direction.

financial crisis, but we have now learned something which we are using to strengthen the business, says Tommy Jensen.

- Many of the problems we faced in the previous year have turned to our advantage. The USD exchange rate increased, the export credit scheme was readopted, and many orders ensured a sound inventory turnover, says ESS-FOOD’s Managing Director, Tommy Jensen.

EXTERNAL PRESSURE However, he can see that ESS-FOOD’s own customers and suppliers are under pressure.

The company doubled the volume of trade, and DESFIS has been fully booked. At the same time, much of ESS-FOOD’s record sales to Russia has been sold cash, significantly strengthening the company’s cash flow.

- 80pc of what we have sold to Russia has been paid in cash, so that instead of a negative cash flow we have a positive cash flow, which is obviously a big advantage. Like many other companies, we were hit by the 66 |

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- It is hard to earn money in France, and several of our customers are under a lot of pressure. We are very aware of the cuts which are happening – not just in France but throughout Europe. This may mean that demand falls, and we are obviously preparing for this eventuality, says Tommy Jensen.

The general economic climate in Europe does not mean, however, that Tommy Jensen fears an immediate decline for ESS-FOOD. - Our business appears very healthy, but we obviously need to stay abreast of developments and identify the right solutions, says Tommy Jensen. |

SALES

boost the competencies of our employees in China, says ESS-FOOD’s Financial Director, Henrik Knage Nielsen.

other countries, and we can already discern a trend towards cuts of meat we know from other parts of the world, says Morten Holm.

ceived by the potential customers we met.

There is a big need in India for high-quality processed products, says Morten Holm.

NEW ERA Today, ESS-FOOD mostly sells products such as snouts, ears, intestines and front and rear trotters, but ESS-FOOD’s management has no doubt that the market is well on the way to demanding more conventional pork products.

Once it happens, ESS-FOOD is ready to meet demand, and it is precisely this foresight which is an important element in developing the company. The company has therefore recently visited India to look at the opportunities in the world’s secondmost populous nation.

However, he cautions that it is premature to get really excited.

- There is a big difference between what Danes and Chinese eat today, but the Chinese eating habits are changing in step with increased prosperity and inspiration from

- We have just done a roadshow in India with ten to twelve different processed meat products from Tulip. They included bacon and mortadella, which were very well re-

- We are not yet able to export to India due to legislation, because this is an area where India is still some years behind China. But I am convinced that the Indian market will also open its doors, and when that happens it is important that we are ready, says Morten Holm. |

China has come a long way with modern production – and higher living standards are also changing consumer habits. Which is why there is growing demand for western meat cuts.

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SALES

DAT-SCHAUB HAS EVERY REASON TO BE HAPPY It has been a great year for the casings manufacturer DAT-Schaub, which is a Danish Crown subsidiary.

FACTS DATSCHAUB ˻˻ Departments in Portugal, China and Denmark. ˻˻ Produces both pork and lamb casings and trades in beef casings.

Also distributes artificial casings and sells ingredients, packaging and casings machines. ˻˻ Has approx. 500 employees in Denmark, 2,000 in the rest of Europe and 1,700 in China. ˻˻ Buys approx. 16-17 million casing sets in Denmark and approx. 40 million in all. ˻˻ Approx. 95pc of the Danish casings are exported. ˻˻ In July this year, the company was awarded the King Frederik The Ninth’s Honorary Award for Meritorious Efforts for Danish Exportation for the second time.

DAT-Schaub is the first Danish company to have received the award twice.

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CASINGS Despite a declining pork casings market over the past six months, the casings company DAT-Schaub has every reason to be satisfied when looking back at 2010.

- It has actually gone better than expected and budgeted. And this is despite the fact that the pork casings market has been declining for the past six months because of rising meat prices, which also means more expensive sausages, says Jan Roelsgaard, CEO of DAT-Schaub, a Danish Crown subsidiary.

EXPECTATIONS MET - Both the company in Denmark and all of our foreign subsidiaries have posted positive results. Normally, there are good and bad results in the course of the year, but this year has been nothing but good, he adds.

Last year was DAT-Schaub’s best year ever, and this year the company was not expecting to do quite as well. Nevertheless, expect­ations for 2010 were high, and they were all met – in fact more than met.

This is largely thanks to the mucosae which come from the pig intestines, and which, when processed, are used as anticoagulants by the pharmaceutical industry. You can read more about mucous membranes on the following page.

NEW ACQUISITION IN NEW ZEALAND The past year has also seen DAT-Schaub making acquisitions. These included a New Zealand company which produces lamb casings, Waikiwi Casings.

- We acquired this company to secure our position in the New Zealand market, says Jan Roelsgaard, adding with a smile: - Waikiwi Casings is located in the southernmost town on South Island. If you continue south, you hit the Antarctic – and it takes 28 hours to get to Invercargill, so it’s not where we’ll be planning our four weekly departmental meetings.

YEAR AHEAD On top of the positive results, it is also time to look ahead to the year to come. Here, DAT-Schaub expects the pork casings market to remain relatively weak into 2011. Jan Roelsgaard explains: - Our outlook and budget for next year is on a par with this year’s. But given the declining pork casings market, it will take a lot of hard work – and that, of course, is what we intending to put in. |

THERE’S MONEY IN MUCOUS CASINGS Mucous membranes. It may not sound particularly appealing on the face of it, but in fact mucosa is really good business for the casings company DAT-Schaub.

Mucosa from pig’s intestines consists of four layers. The two innermost are mucosa layers which make it possible for the intestine to absorb nutrients, while the next layer is tape that holds the intestine in place in the abdominal cavity. The last layer is what becomes the casing around the sausage.

The mucosae and the tape part are removed during the process of making casings, and they contain heparin. This is an anticoagulant which is used in the health sector to prevent strokes in patients before, during and after surgery.

GROWING DEMAND One kilogramme of mucosa contains just 0.1 to 0.2 g of heparin, and there is 1.9 kg of mucosa in each pig. In other words, only very little active ingredient is produced per pig, but on the other hand heparin is in very high demand.

There’s more to pigs’ intestines than just sausage skin. The intestines are also a source of compounds for the pharmaceutical industry.

- Mucosa is an important source of revenue for us, and we have seen growing demand from the pharmaceutical industry, which requires traceability and thereby safety in the production process, both of which we can offer as we follow the goods from slaughtering to the finished product, says Jan Roelsgaard, Managing Director of DATSchaub. |

Jan Roelsgaard is Managing Director of DAT-Schaub, which has had a good year.

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ON THE MOVE MOVEMENT Employees, know-how and goods are all moving across national borders.

Today, Danish Crown is a truly international group.

EXPORTS

It’s not just meat that Danish Crown imports and exports.

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EXPORTS

»

CSR - It’s out in the field that it’s all happening, says Carsten Lehrmann, Danish Crown’s Export Director.

The company therefore posts its sales trainees abroad to different countries for a twoto-three-year period.

- To become really good salespeople, the trainees are first given a basic course here in Denmark, and we then send them out into the world where they contribute with what they have learned before returning home with up-to-date know-how, for example

local knowledge about products and local markets as well as information about the challenges they face out there, says Carsten Lehrmann.

AN EDUCATIONAL JOURNEY? At the moment, Danish Crown has sales trainees posted abroad in Germany, Italy, the UK and the USA, and in September 2011 will be sending a sales trainee to Russia. After two or three years, the trainees rotate between the countries so they can experience several different markets.

- It is a fantastic experience for them. They get to know a new country. A new culture.

New ways of working. And it boosts their language skills. It is almost an educational journey. And in our view, everything they learn helps to make them better salespeople, says Carsten Lehrmann.

Before the sales trainees are sent off, Danish Crown helps them to find accommodation and also to find a job for any boyfriend/girlfriend. |

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Danish Crown has a number of Danish employees posted abroad. Here, three of them describe what both they and DC get out of their time away.

LARS JENSEN POSTED TO THE SALES OFFICE IN MOSCOW Lars Jensen is preparing for his posting abroad. From September 2011 he will be part of the Moscow team, and he’s very much looking forward to it.

- I’m not leaving for a year, but the plan is that I prepare for it as much as possible.

In the slightly longer term, the idea is that I can handle minor complaints from our Russian customers, and this means I need to be well-informed about the products and the company, says Lars Jensen.

- At the same time I also hope to immerse myself in the Russian culture, not least the language which I have been studying since September. Being posted abroad to a country like Russia is a huge challenge, and I expect to be ‘thrown in at the deep end‘ – in other words given a lot of experience which will benefit me, both in the long and the short term. And then I hope to be able to demonstrate to Danish Crown that it’s worth their while investing in someone like me, says Lars Jensen with a smile. |

He hopes that during his time in Moscow he will be able to learn about the large Russian market, which is important for Danish Crown.

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MARTIN THOMSEN POSTED TO SWITZERLAND AND ITALY When Martin Thomsen was posted to Switzerland and Italy on 1 September 2008, he had spent two years getting thoroughly to grips with the work at the head office in Randers and with how SAP functions – valuable experience which he now draws on in his work in a new country.

- I can use what I learned in Denmark every day – at the same time I have learned

a lot about the Italian market, the Italian mentality and, of course, the culture, says Martin Thomsen, and adds: - And now I also know a lot about the products.

Martin Thomsen also hopes that the fact that he can communicate in Italian will benefit Danish Crown – and that his stay abroad has made him more mature. |

MICHAEL FRUELUND PEDERSEN POSTED TO BORGSTEDT IN GERMANY It is not far to the German town of Borgstedt, but for Michael Fruelund Pedersen it’s another world.

ful – in the same way that everything he learns in Germany is beneficial for both himself and Danish Crown.

- When you switch language and culture, lots of things change, and you can learn a lot from this, but the learning can go both ways. For example, I arrived knowing how things operate at head office, and that means I can help solve certain problems because I know about the workflow and who’s who, explains Michael Fruelund Pedersen, who has been based in Borgstedt since October 2009.

- Language also plays an important role.

I am learning to handle things alone, and that enables me to stand on my own two feet. I have also discovered that the German way of working is quite different to how we go about things in Denmark, and that has been very instructive. Being posted abroad is good for both my personal and professional development, and has made me a more independent and experienced salesman, says Michael Fruelund Pedersen. |

Michael also brought in-depth knowledge about SAP with him, which is very use-

INNOVATION

airing new ideas

AIR-DRIED MEAT In the village of Norddepli, on one of the northernmost islands in the Faroes and almost overlooking the Atlantic, is a small, newly-built shed down by the harbour. A pantry constructed according to old Faroese traditions with ventilation gaps between the vertical boards. It still smells of new wood, and your nose also catches the hint of fresh fish from the nearby fish factory.

moment for almost five months. All the Faroese have been waiting.

Norddepli lies on the narrow straight that separates Bordø and Vidø. Towering slopes surround the little fishing hamlet, sheltering it from the wind.

- It looks interesting. It looks very interesting, he says, and reaches out for the first piece of meat, which he presses gently between his thumb and forefinger. The meat is coated with a layer of seasoned fat, and there is only a small breathing hole through which moisture from the drying process can run out.

ALL IS REVEALED The door to the newly built shed is locked with a small, black padlock. It’s not customary to lock up everything here, but then what’s in the shed isn’t exactly ordinary.

In front of the door stands a group of men who are waiting expectantly for Jogvan Høj, managing director of the fish factory, to unlock the door. They have waited for this 76 |

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One of the men waiting is Jens Munch from the butcher’s Slagter Munch in Skagen, which produces the Skagen hams. He possesses just the expertise needed when drying hams. As the doors open, he immediately turns his gaze towards the six pieces of meat hanging from beneath the roof.

Jens Munch is on the Faroe Islands to inspect the provisional results of a new joint venture between Danish Crown and a small group of Faroese gourmet chefs who want to create a brand new culinary product. An air-dried Faroese ham.

TERRIBLY UNIFORM The man with the idea of creating a Faroese ham is Johan Mortensen, who normally works in the Faroese oil industry. He feels, like most Faroese, immensely passionate about Faroese customs and traditions, yet he is also all in favour of development and innovation.

- We have a wealth of raw ingredients on the islands, but we have not been very good at using them. Faroese gastronomy is extremely unvaried, traditionally just eating potatoes, fish, lamb and birds. Exciting recipes have been few and far between, he explains.

DRIED MEAT SINCE VIKING TIMES Ten years ago, Johan Mortensen and a group of islanders started to introduce more variation into Faroese cuisine. Among other things, they experimented with air-drying lamb, fish and whale meat.

- We have always dried meat up here, and

INNOVATION

The Skagen butcher Jens Munch uses his sense of smell and taste when following DC’s development of air-dried meat on the Faroes.

The hams are dried to produce a true delicacy.

pretty well everyone does it. It doubtless goes all the way back to the Vikings, who also needed to preserve meat. However, we did not know a lot about the processes in detail. What happens, and why does it happen? We wanted to be able to control the process with greater precision, says Johan Mortensen.

Once the different phases of the drying process had been studied, Johan Mortensen had a meeting with Danish Crown’s Sales Manager, Claus Hein.

This resulted in the first fifteen hams being salted at different concentrations for a month in Denmark. They were then sent from DC Hadsund to the Faroes where they were hung up at three different locations on the islands, places which are well-known for supplying air-dried meat of the highest quality.

TWO SELECTED Back at the harbour in Norddepli, the hams

are examined and assessed. Two are taken down and carried over to the fish factory’s canteen, where Jens Munch very carefully washes them clean so they are free of fat.

The hams are placed on the table, and the clutch of curious men wait expectantly for the butcher’s verdict.

Everyone present tastes the ham, and they are impressed with the result.

- Do you think we can serve it to Her Majesty Queen Margrethe when she comes on her summer cruise, asks Johan Mortensen.

- Yes, definitely, replies Jens Munch.

- They don’t look too bad, he says, and continues inspecting them before adding: - They have a good colour. He lifts up one ham and presses it in the middle.

- But it’s not there yet. They need to dry for a bit longer. Definitely. They should be even firmer. But that is easier to assess if we cut them lengthways, says Jens Munch.

He cuts through the first ham, divides it in two, looks at it and smells the meat.

- That smells good, slightly fermented, he says, before he starts slicing the dark, dried meat.

NEW ORDER Already in September, when the cold weather starts setting in, hams from Danish Crown will again hang in the pantry sheds at the selected locations.

- We haven’t yet decided how many we will order, because we have not quite finished experimenting. But who knows? Perhaps there will come a day when we can start exporting our air-dried hams worldwide. Then it will be on a completely different scale altogether, says Johan Mortensen. | 24.06.10

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FRILAND

RECORD SUPPLEMENTARY PAYMENTS IN FRILAND Friland has seen growth in the past year, posting revenue of DKK 465 million and strong profits. Supplementary payments to the company’s suppliers are the highest in the company’s history, totalling almost DKK 123 million.

For Friland’s free-range pig producers and organic pig producers, the year started out well and continued to improve over the months. The biggest challenge has been a shortage of pork supplies relative to demand.

Sales of organic beef were on a par with the previous year. Almost all organic beef produced is sold in the domestic market.

so that a better balance can be struck between supply and demand and so that earnings can be corrected in the coming year.

Beef cattle are also sold in the home market, where the year started badly with a sharp decline in sales. However, Friland Limousine recovered during the year and recouped most of the shortfalls. Nevertheless, for Friland Beef Cattle, the poor results meant that the concept needed adjusting,

Once again, sales in the export markets have pushed up the growth rates and the prices for pork. This has ensured a greater spread of risk in relation to sales and thus greater stability for suppliers. Export sales from Friland’s Danish department increased by 31pc. |

FRILAND

NEW ØKO LOGO FOR MEAT In summer, it was decided to give the organic products a new and more distinctive organic label.

The purpose of changing the label is to market the organic products more clearly.

In addition to the text ‘ØKO’, the new logo also sends very clear signals through the choice of colours. Here, the colours pale green and red in the Friland ØKO logo have been chosen so they match the two most important official logos for organics, the red Danish label for ‘State-controlled

NEW PROCESSED PRODUCTS IN THE PIPELINE

organic produce’, and the new EU organic logo, which consists of a pale green flag with the outline of a leaf in white stars. The ‘ØKO’ symbol, which is an abbreviation for ‘organic’ in Danish, is used as a symbol on organic products. It also has the advantage that it can easily be replaced with Bio or Eco, which are the abbreviations used in several European countries to designate organic produce.

The previous Friland ‘Økologi’ logo will continue to be used, but it is being phased out as advertising material and packaging is changed on the various products. |

Friland has recently been working to expand its range of organic meat products to include a range of processed products. This is happening in collaboration with Tulip, and the first products will be bacon, dinner sausages and mini sausages. The products are being launched in 2011 and will be sold to both the retail and catering sectors. |

A VERY BUSY YEAR Many of Friland’s suppliers have, over the years, been very actively involved in talking about how the animals are reared and the quality of the meat. The activities have been very different, but they have all has helped to raise awareness of the Friland brand.

In September, Karsten Olesen from Ejstrupholm had a very successful day as part of the national open day event for farms, where visitors were able to see the first forest pigs and children could play on piles of carrots and romp around in the straw.

Earlier in the year, thousands of people visited Roskilde cattle show where it was possible to see various cattle breeds – and taste the respective kinds of beef. During the year, beef producers throughout Denmark have served samples in their local SuperBest supermarkets – followed by open day events on the farms.

Six organic pig producers around the country welcomed a satisfactory number of visitors to their first ‘Sow’fari’, despite bad weather almost sabotaging the inaugural event.

Several organic producers also hosted the popular organic harvest markets and ‘organic day’ events, and a number also participated in events at COOP shops, among other things in connection with the ‘organic caravan’.

On 1 April, Nikolaj Pedersen in Klelund in central Jutland organised a slightly unusual open house when the regional radio programme DR South and Friland carried out an April Fool’s joke which involved catching the so-called Jels wolf in one of the pig shelters. |

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Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

REPUTATION

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Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

REPUTATION

Dialogue and a strong presence are preconditional for a good reputation.

And, of course, a dash of humour…

Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

Ceci n’est pas un T-shirt

REPUTATION

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REPUTATION

PR - We have been to Denmark’s Most Beautiful Festival in Skanderborg years in a row.

This equates to sixteen hectic days with lots of visits, lots happening and lots of visitors.

And lots of crazy ideas. However, these sixteen days have done more for Danish Crown’s reputation than several year’s worth of participation at countless cattle shows, says Anne Villemoes, Director of Corporate Communications in Danish Crown.

Why in fact have Denmark’s Most Beautiful Pigsty at Denmark’s Most Beautiful Festival? Well, there are several reasons…

- At the Skanderborg festival, we can have a dialogue with consumers in an unconventional and informal way and tell them about Danish Crown. Moreover, it is no secret that a key reason for our involvement with Denmark’s Most Beautiful Festival is the high level of media interest we can generate for the company. We create the set-up to have a dialogue with a specific target group of 50,000 people in the festival area – but just as much to draw attention to Danish Crown as a company, and thereby our products, continues Anne Villemoes.

FRIDA, PIGSTY AND DC ON TV - Each year we have to make sure that we have something arranged or an event that will attract media interest. Last year, for example, we had two newly-weds on honeymoon in the Pigsty, and the year before P3’s satirical radio programme ‘De Sorte Spejdere’ (The Black Scouts) had its very own pig shelter – and both resulted in massive media coverage. This year the actor Peter Mygind paid us a visit, which was an experience – both mediawise and for the Pigsty’s guests, says Anne Villemoes.

All day Thursday, it was possible to hear about Danish Crown’s Pigsty on TV2 News, where Frida the Happy Pig and DC’s Director of Corporate Communications were part of the news loop every hour. On Thursday morning, TV2 reported from the festival, while DR’s radio programmes did broadcasts from the Pigsty.

- To supplement the media broadcasts, we do write-ups for our website, where other media pick up the stories about the Pigsty and the Bacon Bar – and, of course, Danish Crown. And every year after the festival, we hear from people telling us what fun they had – which indicates that the promotional activities have put Danish Crown in a new light. And that is the whole point of the exercise, says Anne Villemoes. | 12.08.10

REPUTATION

PR IN THE PIGSTY

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BEAUTIFUL PIG Last year, Danish Crown received more than 8,000 postcards from hopeful festival-goers who all dreamed of staying in first-class accommodation at Denmark’s Most Beautiful shelter. - But this year, Danish Crown and Denmark’s Most Beautiful Festival decided to auction off the eighteen shelters on Lauritz.com to raise money for the national collection day which is supporting women in Africa and the victims of the earthquake on Haiti, says Anne Villemoes, DC’s Director of Corporate Communications. And the huts raised no less than DKK 126,960, including fees. | 21.01.10

BEAUTIFUL PIG

BEAUTIFUL PIG For the second year running, Benjamin Risum is staying in Denmark’s Most Beautiful Pigsty. Last year he loved the place so much that he found it easy to bid for one of the eighteen huts which were auctioned off in January on Lauritz.com, raising DKK 126,960 for women in Africa and the victims of the earthquake on Haiti. - It was easy to identify with the cause, says a smiling Benjamin Risum, adding: - And once you have tried lying stretched out in a pig’s shelter with an electric light in the ceiling and food close at hand, a tent no longer seems quite as attractive. | 07.08.10

A young man comes charging along from 30 metres away. He heads straight for Danish Crown’s two-metre-high pig, Frida. But he manages to come to a halt just before throwing his arms open and giving her a huge hug, which Frida naturally reciprocates by wrapping him in her large, soft arms. Again this year, Danish Crown’s happy pig Frida was back at the festival, warming people’s hearts wherever she went. At one point people were literally queuing to have their picture taken with her and to share a hug. | 05.08.10

BEAUTIFUL PIG Knock, knock, knock goes the hand steadily against the door of the pigsty. Slowly, the door opens. Inside is Henrik, a pigsty dweller, with tousled hair, sleepy in his eyes and a slightly surprised expression on his face. But then he is faced by a slightly strange sight.

In front of his door is a bevy of journalists, photographers and TV2 News, which is broadcasting live – not to mention Frida the Happy Pig and Peter Mygind who, singing, serves a breakfast brunch on Henrik’s bed. Peter Mygind, who is agreat advocate of organic farming, has moved into one of the shelters in the Pigsty to live like the happy pigs out in the fields. | 05.08.10

BEAUTIFUL PIG - It’s all about food safety, hygiene and love, said the person giving a pep talk to the 60 volunteers in Denmark’s Most Beautiful Pigsty who had gathered for a meeting. All the volunteers work flat out to quickly and efficiently and with a smile on their faces sling the many food boxes over the counter in the Bacon Bar. The customers include four festival-goers, Kim, Søren, Pernille and Stine. They have come a long way to get their breakfast. - We were down here in the Bacon Bar to buy brunch last year, and we thought it was so good that we’ve come back, say the two boys, who have persuaded the girls to join them. | 05.08.10

BEAUTIFUL PIG - It’s simply been brilliant, says Agnete Poulsen, who is responsible for the Bacon Bar and the Pigsty at Denmark’s Most Beautiful Festival in Skanderborg, Jutland. In fact, it has gone so well that this year sales of bacon brunches have set a new record.

Yesterday, 968 boxes with delicious brunches were passed over the counter in just four hours to hungry festival-goers, who were happy to stand in long queues. That’s more than we’ve ever sold before in such a short space of time while the Bacon Bar has been at the festival. | 09.08.10

Danish Crown rolled out its kitchen on Funen THE KITCHEN All weekend, activity levels were high in the Danish Crown tent at the food market ‘Kulinarisk Sydfyn’, where DC met consumers around the kitchen table. People of all ages queued up to learn about frying meat or to try their hands at new stir-fry recipes.

It was the woks that appealed to Mikkel Holm Jensen and Thomas Pihl Haahr, both nine years old. Both the boys and Mikkel’s mother, Helle, really enjoyed the kitchen experience.

- Perhaps it will inspire them to spend some more time in the kitchen at home and help with the cooking, added his mother.

GREEN SAUSAGE QUEUE Outside the tent, Danish Crown’s sausage bike had taken up position, and green sausages were handed out to passers-by.

- They look a bit strange. But they taste good. I really like them, said four-year-old Twan from the Netherlands, who was holidaying on Funen. | 28.06.10

- I think cooking is great fun, said Mikkel Holm Jensen.

A visit moves mountains THE KITCHEN The Visitors’ Service plays an important role in Danish Crown. The guides help to change people’s views about the slaughterhouse industry.

The Visitors’ Service has been up and running from the first day that DC Horsens opened four and half years ago. Since then 110,000 people have visited the slaughterhouse. Everyone from government ministers and critical journalists to Japanese customers and classes

of schoolchildren have passed down the long visitors’ gallery.

The Visitors’ Service is staffed by eight guides and a manager. Eight in Horsens and one in Ringsted.

In addition to telling both customers and curious consumers about Danish Crown’s production and products, the guides also dispel many of the myths about animal welfare and hygiene. |

Line-up behind DC frying pans THE KITCHEN This is the fourth consecutive time that Danish Crown is attending the food fair ‘eat’, which is held every year in Øksnehallen in Copenhagen.

Crown to meet the consumer group we need to talk more with, says Anne Villemoes, Danish Crown’s Director of Corporate Communications.

- Eat is a fair for discerning consumers – for curious and interested consumers who want to learn about the food they eat. Being at eat enables Danish

- Eat presents consumers with the best Danish raw ingredients currently available. We think that Danish Crown is an obvious participant with all our

niche products. By being at the trade fair, we can help to dispel some of the many prejudices that people have about Danish Crown. In other words, the fair helps to make people understand Danish Crown and our products, she says in conclusion. | 29.08.10

Understanding food THE KITCHEN In a large warehouse in Valby, the Danish Ministry for Food, Agriculture and Fisheries has assembled 100 clever people who know about food. Denmark will now have a FoodExperimentarium.

As the afternoon progresses, the idea develops beyond being just a name.

After a long day of brainstorming to shape tomorrow’s food policy, the experts move to the kitchen to make food – and it is in Danish Crown’s mobile kit­ chen that the magic happens.

- It is important that you meet

at the kitchen table, says Søren Ejlersen, one of the men behind the organic delivery company Aarstiderne, and adds: - When you cook together, you transfer knowledge and pass on culture. And then all your senses are influenced. That is special, he says, and Gitte Gross, who heads VIFFOS, a national centre for food and health, agrees.

- It’s fun being in the kitchen together because everyone talks and gets to know one another.

It’s there that the best development happens, she says. | 21.01.10

Danish Crown’s sound profile includes the sound of steaks. Sonic Branding therefore had to take their microphones and instruments into the kitchen.

REPUTATION

THE SOUND OF

DANISH CROWN SOUND LOGO Scritsch, dong, plang, tjosssch… and bong. A modern slaughterhouse is full of sounds and rhythms, and real sounds from the world’s most modern slaughterhouse in Horsens are becoming part of Danish Crown’s new sound identity.

Therefore, the slaughterhouse in Horsens has had a visit from Daniel Schougaard from the company Sonic Branding, which specialises in creating sound logos and sound identities. A frying pan and a good piece of meat – from Danish Crown, of course – are part of the sound picture.

- I want to identify the sounds which are characteristic of the company and which – together with your values – can be used to design a new sound profile and identity for Danish Crown, explains Daniel Schougaard, a music consultant and project manager.

FOR ALL THE SENSES More and more companies are using sound identities strategically to create a more distinct corporate profile and to ensure a better experience for people contacting them.

- A sound profile should therefore be seen as a supplement to other branding tools which the company uses. A totally unique sound can help strengthen the Danish Crown brand, both if used as on-hold music, on our website and in TV and radio commercials, explains Anne Villemoes, Danish Crown’s Director of Corporate Communications.

MANY SECONDS ON HOLD DC receives up to 1,200 telephone calls a day, and this means waiting time for callers.

The average waiting time is 4-6 seconds for calls to reception. However, it takes an average of up to 28 seconds before the forwarded call is answered. And during this time, it makes perfect sense for callers to be listening to something meaningful, and something which also creates valuable synergies with our corporate branding in general. After all, this is the first impression which a lot of people get of Danish Crown, explains Anne Villemoes. | 19.10.09

a magazine about growing values

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