Emmi Link #4 2024 E-Magazine (EN)

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Taking responsibility

Dear Colleagues,

Emmi has been creating the best dairy moments for over four generations. The 2024 editions of “Link” are dedicated to our origins, our craftsmanship and our passion, and finally to our natural product, milk. The 4th edition is marked by the responsibility that has distinguished Emmi since 1907.

The foundation as a cooperative in 1907 had the aim to secure a reliable income for its dairy farmers in central Switzerland and relieving them of the uncertain marketing of their milk. This community-oriented idea is still firmly rooted here today. As a responsible company, we strive for a balance between corporate success and social and environmental responsibility. Our strategy and day-to-day work reflect this. We are proud of our delicious products, which provide us with important nutrients, our respectful teamwork, which makes us successful and happily coming to work, and our responsible approach, which makes an important contribution to tomorrow.

I am convinced that responsibility is the bond that unites us all and drives us forward – at Emmi and beyond. Whether as a daughter or son, parent, partner, friend or leader – responsibility means being

there for each other and joyfully contributing; growing beyond oneself through responsibility, strengthening one another with a small gesture, a listening ear, or a bit of patience. Only when people take responsibility – for themselves, for others, and for what they create – can communities thrive that can rely on each other and shape the future together.

This issue of “Link” shows how we are fulfilling our corporate responsibility by further developing our portfolio in an ambitious manner and leading Emmi into the future: with Verde Campo, Hochstrasser and Mademoiselle Desserts. Our social responsibility by offering our employees development opportunities –for example, through the Swiss apprenticeship program or the Finance Academy. We are also living up to our environmental responsibility by decarbonising our energy supply by means of heat pumps, amongst other.

I hope you enjoy reading this issue. And thank you for taking responsibility in so many ways.

04 Strongly positioned: The transformation of the Emmi portfolio

06 Verde Campo: A protein boost in Brazil

07 Hochstrasser AG: A companion on the road to success for Emmi Caffè Latte

08 Mademoiselle Desserts: The icing on the cake in the global dessert buffet

10 Emmi: Holistic responsibility 12 Professional development –my story: Conversation between Su Durgut and Geri Schatt

14 Heat pumps: Can they help us achieve netZERO 2050?

16 Emmi Pioneers: Rethinking teamwork

18 AI@Emmi: Towards a responsible future

20 “Employee development”: Interview with Natalie Rüedi and Kai Könecke

22 Finance Academy: Fit for finance

PRODUKTE

24 20 years of Emmi Caffè Latte: A look back at the anniversary year

On the trail of the transformation of the Emmi portfolio

years of Emmi on the stock exchange

The recently completed acquisition of Mademoiselle Desserts marked the 45th company acquisition since Emmi AG was founded in 1993. The portfolio of subsidiaries and participations shows that these companies had a lot in common.

The history of the Emmi Group is also a history of targeted internationalisation. More than 30 years ago, Emmi was a regional dairy company. Over the decades, Emmi has developed into a leading international group for premium dairy products through the acquisition of selected companies and holdings.

The focus is on four strategic platforms. Its core market was and will remain the domestic market of

sition of the cheese division of Swiss Dairy Food. The corporate strategy defines Brazil, Chile and the USA as further must-win markets. Emmi has entered these markets or experienced strong growth there in recent years. In addition to its geographical focus, Emmi pursues a dedicated niche strategy. The development of strategic niches began in 2017. At that time, the focus was on dessert, organic and goat’s milk products. The

coffee, chilled premium desserts, speciality cheeses and plant-based milk alternatives. What all four divisions have in common is that they are characterised by above-average organic growth and corresponding margins, thus contributing to sustainable profitable growth and promoting profitability.

For outsiders, the variety of subsidiaries and holdings may seem confusing at first glance. A closer look, however, reveals a clear strategy and firm convictions behind it.

Investments and company acquisitions are often preceded by long-term partnerships based on common values and a common understanding of quality. This creates mutual trust, promotes mutual learning and thus encourages continuous improvement –both on the product side and in the manufacturing processes.

Typically, the locally or regionally anchored companies in which Emmi acquires holdings, or which Emmi takes over, do retain their independence. In many cases, the founding families or the management remain involved in the company. This is a key quality and distinguishing feature, as well as a success factor that sets the Emmi Group strategy apart. Retaining locally established brands ensures continuity, preserves valuable knowledge, strengthens innovation and promotes market and brand positioning.

Shaping the future successfully also requires a consistent transformation of the portfolio of subsidiaries and holdings. Behind this is a long-established process. This is clearly demonstrated by the 45 acquisitions made in the last three decades. They drive organic growth, profitability and differentiation or premiumisation. At the same time, they reflect an excellent international network of relationships and demonstrate an outstanding knowledge of market conditions in key markets. The transformation is reflected in the targeted use of opportunities offered to Emmi in must-win markets and strategic niches, but it is also much more than that.

Three questions for …

1 How did Emmi’s stock market launch go, all those years ago?

In 2004, the face of tennis star Roger Federer adorned lots of Emmi posters in Switzerland. At the bottom was written: “The number 1 goes public.” The stock market launch of Emmi, already the largest dairy company in Switzerland at the time, caused quite a stir. 50 events, 60 presentations, 300 media reports and a 4,000-kilometre roadshow were driven by Emmi Group managers to ensure a successful IPO. Since then, we have developed into an international premium player with our own presence in 14 countries and exports to around 60 countries.

2 What benefits did the IPO have for Emmi?

Thanks to the capital received and increased brand awareness, we were able to successfully implement our plans for growth in Switzerland and abroad. We have grown organically, but since then we have also made more than 45 acquisitions –most recently the acquisition of the French premium dessert group Mademoiselle Desserts. Another particular highlight was the simultaneous onboarding of our most successful brand Emmi Caffè Latte, which we brought to Europe as a pioneer and which is also celebrating its 20th anniversary this year. With this iconic product, we have created a true lifestyle. Of course, other premium products, such as the Kaltbach cheeses refined by Höhle und Meister and many strong brands from our international companies, also contributed to growth. Incidentally, the share price has increased roughly ninefold since the IPO.

3 Who invests in Emmi today?

Our main shareholders are primarily the Zentralschweizer Milchproduzenten (Central Switzerland Milk Producers’ Cooperative, ZMP), but also the Zentralschweizer Käsermeister Genossenschaft (Central Switzerland Master Cheesemakers’ Cooperative) and the MIBA Genossenschaft (MIBA Cooperative), which together hold around 60 % of the shares. The remaining 40 % is in free float with many national and international investors and small shareholders, with Capital Group holding more than 5 % of our shares. Our main Swiss shareholders are also our milk suppliers, with whom we have long-term relationships based on trust. But the Capital Group has also been loyal to us for many years. And, of course, our small shareholders form the important foundation. The high number of visitors and the palpable enthusiasm for Emmi at the last General Meeting are testament to the positive relationship we have with our shareholders.

A protein boost in Brazil

The expansion of the Emmi Group’s presence in Brazil is a testament to its investment and internationalisation strategy characterised by diversity, local roots and a strengthening of highly innovative established brands.

For Emmi, Brazil is more than the carnival, samba and football. This is where the Arabica beans for Emmi Caffè Latte Balance, Almond Macchiato and Oat Cappuccino ripen. Above all, however, as the largest market for dairy products in Latin America, Brazil is one of the Emmi Group’s four must-win markets.

In 2017, after gaining a foothold in Chile and Mexico, Emmi expanded to Brazil. Emmi acquired a 40 % stake in Laticínios Porto Alegre. Just two years later, it was increased to 70 %. The Brazilian subsidiary, which started over 30 years ago as a small local cheese dairy, is now one of the three largest dairies in the Brazilian state of Minas Gerais.

In May 2024, Emmi acquired a majority stake in the Verde Campo dairy through Laticínios Porto Alegre. The equally well-established brand ideally complements Emmi’s position in Brazil with yogurts and milk drinks made from natural whey. The innovative brand is considered a pioneer in the high-quality protein segment. It is particularly popular with health-conscious city dwellers who value functional premium dairy products.

The founding family and the management in each case continue to hold a 30 % stake in their companies. The strong parent company behind them offers them stability, ensures continuity and, at the same time, gives them the entrepreneurial freedom to drive growth as the economic situation continues to improve.

Mastery of milk combined with coffeemaking craftsmanship

The acquisition of the renowned traditional Lucerne coffee roasting company Hochstrasser AG is a prime example of the targeted further development of a long-standing partnership.

Hochstrasser AG is a key part of the success story of the iconic brand Emmi Caffè Latte. Since the market launch of ready-to-drink coffee 20 years ago, the Emmi Group has been able to rely on the wealth of experience of the Swiss master roasting company. The excellent barista quality of Emmi Caffè Latte reflects the skilful roasting of Arabica beans in all its nuances of flavour.

With Hochstrasser AG, the Emmi Group found just the roasting expertise it needed at the time right on its doorstep, so to speak. However, it is not only their geographical proximity that unites the two companies. Both look back on more than 100 years of company history. Both share a passion for communicating moments of indulgence, for high-quality craftsmanship and responsible entrepreneurial action. A perfect basis for a long-term, trusting partnership.

The acquisition, announced in June 2024, has now taken the partnership to a new level. It strengthens the Emmi Group’s expertise in coffee, ensures the outstanding quality of freshly roasted and brewed coffee for Emmi Caffè Latte over the long term, and combines the innovative strength of both companies in the further development of the iconic brand.

Thus a new chapter has been written in the history of Hochstrasser AG; a history distinguished by outstanding service and top quality in the selection of raw coffee from the best growing regions, as well as in its use of the traditional drum roasting process, which is slow and gentle, and the perfectly coordinated preparation techniques. On a strategic and operational level, the traditional company continues to be managed independently by the existing management team. At the same time, Emmi supports them in anchoring the Hochstrasser and Don George brands even more strongly in the gastronomy sector.

Hochstrasser will continue to lead the existing management team with René Vesti and Gery Camenzind on the Board of Directors and Kevin Heer as Managing Director: “It is both an honour and an obligation for us to continue the long-standing partnership under new auspices and to accompany Emmi Caffè Latte on its continued path to success with our coffee expertise.”

COMPANION ON THE ROAD TO SUCCESS FOR EMMI CAFFÈ LATTE
MAJORITY STAKE IN VERDE CAMPO
Text Corin Ballhaus
Photos Copyright: Verde Campo, Brazil
Verde Campo is well established with its innovative dairy products such as yogurts with high-quality protein based on natural whey.
Verde Campo is considered a pioneer in the protein sector and is particularly popular with consumers in Brazilian cities who value health and functionality.
Text Corin Ballhaus
Photo Copyright: Hochstrasser, Lucerne

The icing on the cake in the global dessert buffet

The acquisition of Mademoiselle Desserts gives the Emmi Group the leading position in the European dessert market. In doing so, it proves once again that it can successfully merge and further develop networks.

Agood meal needs a perfect ending. For many gourmets, desserts are the pinnacle of enjoyment. Many dessert recipes are based on dairy products. As an innovative pioneer in strategic niches, the Emmi Group takes these aspects into account and, in recent years, has gradually developed and expanded its competencies in the area of chilled premium desserts – a market that continues to grow strongly globally.

From 2012 to 2017, this was based on the acquisition of the three Italian dessert producers A-27, Rachelli and Italian Fresh Foods. They were merged to form Emmi Dessert Italia in 2018. A year later, Pasticceria Quadrifoglio in the Modena region joined them, and

continues to exist as an independent brand. All four companies started out as small, family-run manufactories. They have preserved the art of hand-making exclusive dessert creations, even though they have grown over the years and beyond the borders of Switzerland.

Four years ago, the company expanded into the American dessert business with the acquisition of Indulge Desserts. Indulge Desserts, which have also grown over the course of more than 30 years through company acquisitions, are synonymous with Italian, American and Latin American-inspired desserts. This was accompanied by Emmi Italia’s entry into the US dessert market, which is the world’s largest.

Targeted acquisitions such as those in the global dessert network strengthen the position and competencies of the Emmi Group in the corresponding markets, strengthen its position in strategic niches and accelerate organic growth. This is particularly true of the recently completed acquisition of Mademoiselle Desserts, France’s leading supplier in the premium dessert category. This transaction brings together all the great dessert traditions under one roof. After all, in France, just as in Italy and the US, desserts have a long cultural and historical tradition. The quality, sophistication and versatility for which French cuisine as a whole is famous is reflected in the exclusive patisserie range of Mademoiselle Desserts, which also leads the way in the field of in-store bakery and food service. As a certified B Corporation, Mademoiselle Desserts, like the Emmi Group, is committed to social added value and environmental sustainability as part of a responsible business future.

The latest step in expansion has turned the Emmi Group into a veritable Emmi Desserts PowerHouse, characterised by a high-quality, innovative product range and strong customer partnerships. The merger with the existing dessert companies will enable the Emmi Group to almost double its sales in this strategic niche. Accordingly, chilled premium desserts will account for 17 % of total sales in the future.

Three questions for…

“With our acquisition of the Mademoiselle Desserts Group, we are creating an Emmi Desserts PowerHouse with all of the Emmi Group’s dessert companies. As ‹category captain› we are uniting all the great dessert traditions under one roof and can offer our customers an innovative, high­ quality dessert portfolio. ”

Demarmels, CEO, Emmi Group

The management of the dessert companies will also be combined under the leadership of Didier Boudy, current CEO of Mademoiselle Desserts. “I look forward to joining forces to drive forward the strategic development of the Emmi Group’s dessert business and exploit the resulting growth synergies,” says the newly appointed “Monsieur Dessert”.

Text Corin Ballhaus

1 What was your highlight of the year? Moving into the future together with Emmi was definitely the high point of the year. In a way, I have been working for the last 15 years in hopes of achieving something like this one day. It meant months of intensive work and enormous pressure on the management of both sides. After everything was signed we were exhausted, but overjoyed and proud!

2 What makes Mademoiselle Desserts stand out? Firstly, our products are of an incredible quality. In all our main categories, we strive to offer the best quality. We supply many traditional artisanal businesses in all our regions. Secondly, we have a fantastic team with a lot of dedication. Everywhere you look, you see the impressive energy and appreciation that our teams have for each other. We love working at Mademoiselle. Thirdly, we differ greatly from many of our competitors in that our CSR commitment has been built up over many years and is authentic. We are a BCorp, something that few companies in the world of this size have achieved.

3 What is the significance of the Desserts PowerHouse for you?

For us, it is both the end of a great 15-year journey and the beginning of a fantastic adventure with Emmi – in a Desserts PowerHouse, the like of which we have dreamed of for years. We are delighted to take on such a leading position in Europe and globally. It’s a once-in-a-lifetime turning point.

4 What motivates you personally? Love

Photo Copyright: Mademoiselle Desserts, France
Text Didier Boudy
Photo Copyright: Mademoiselle Desserts, France
THE PATH TO EMMI’S DESSERTS POWERHOUSE

Focus

Holistic responsibility lies deep within our DNA

Only those who act in harmony with people, animals and the environment can be successful in the long term. Emmi has remained faithful to this conviction – thereby taking on a pioneering role in the industry.

Emmi has undergone a profound transformation in recent decades, evolving from a locally anchored company into an internationally active group of companies. In 2022, sales exceeded the CHF 4 billion threshold for the first time. Despite significant growth in the number of subsidiaries and employees, its fundamental values have remained the same: Like its predecessor organisation, the Zentralschweizerischer Milchverband Luzern (Central Switzerland Milk Association in Lucerne, MVL), Emmi has been committed to assuming social, environmental and economic responsibility and being a reliable partner for all stakeholders since its founding years.

This constant value is reflected in a prudent growth course: strategic decisions and acquisitions are always geared towards creating long-term added value. This fundamental attitude is felt first and foremost by the employees. After all, it’s not just the overall approach of sustainable action that is part of Emmi’s DNA; respecting one another and strong identification with your employer are also hallmarks of the Emmi world. By 2027, all employees at all levels and with all job profiles will have a development plan in place. In this way, Emmi ensures that it can keep pace with changes and technological advances in a trusting environment. In doing so, Emmi improves the employability of each individual. At the same time, Emmi as an employer makes it clear how much focus is on its employees: it aims to fill half of its vacancies with internal candidates by 2027.

Both market-conscious and environmentally aware Doing the right thing while remaining economically successful: from this position of strength, Emmi can assume a pioneering role, with actions that are both market-conscious and environmentally aware. This is exemplified by the “KlimaStaR Milch” industry initiative co-initiated by Emmi, which makes the dairy industry more climate-friendly and resourceefficient. Emmi acts as a role model throughout the Group: by 2027, the milk purchased by the subsidiaries is to be produced in accordance with sustainability standards that perform best in regional comparison. The crucial criteria are not only environmental but also social, such as income.

Processing sustainably produced milk and reducing emissions, water consumption and food waste along the entire value chain is not only in the interest of society, but also ensures the future viability of the entire sector.

Nothing sums up Emmi’s responsible actions as well as its Purpose: “Together, we create the best dairy moments – both today and for future generations.”

EMMI: HEARTFELT INDULGENCE
Text Manuela Specker
Photo Copyright: Daria Obymaha

PROFESSIONAL DEVELOPMENT: SU DURGUT AND GERI SCHATT

“We want to make sustainability tangible”

Su Durgut and Geri Schatt switch professional roles. The pair talked to each other about the expectations they had of the experience, how they wanted to improve sustainability, and their respective visions of sustainability at Emmi.

Geri: What motivated you to pursue a career in sustainability?

Su: My work in marketing has given me many exciting insights and been delightfully fulfilling. A few years ago, this journey took me from the Essen subsidiary to the headquarters in Lucerne (Switzerland), where I managed some fantastic and challenging projects. I learnt a lot about sustainability, especially with regard to packaging and raw materials. These insights inspired me to integrate sustainability principles more closely into my projects and to find solutions that make sense both ecologically and economically. These experiences deepened my interest in sustainability and motivated me to work in an area that has a positive impact on the environment and society without neglecting the economic values of a company. I’m really looking forward to my new role.

Su: What stages in your career have shaped you the most, and why?

Geri: It’s difficult to pinpoint a particular stage. The whole journey has been important; it’s been a process of continuous development that has helped me pack my rucksack and build up a valuable network. There was my time as a site manager in Dagmersellen (Switzerland), as an operational manager certainly, and in production – but also, of course, my love of sustainability developed particularly well there. In my role as Emmi Group’s Head of Safety, I was given a comprehensive overview of the entire Group, including the legal requirements and guidelines. I’ve also developed approaches for motivating employees into tackling these issues. As Project Manager for Fresh Products in Emmen, I acquired both technical expertise and project management skills. Speaking the

language of production, having a technical understanding, knowing the food business and having a good network were, in my view, decisive factors for the role of Head of Sustainability.

Geri: What initial steps are you planning to take to find your way in your new role as Head of Group Sustainability?

Su: You did well to focus my start in the sustainability team on reporting. This allowed me to gain a very broad view of sustainability at Emmi. Now I’d like to delve deeper into the topics – in particular greenhouse gases and sustainable dairy farming, which are amongst our strategic priorities. I would also like to have a better understanding of how our countries function in terms of sustainability and what their local challenges are. One thing I particularly took away from our discussions is that sustainability depends very much on the region – regional differences in climate, resource availability, cultural traditions, economic structures and political framework conditions make it necessary to adapt sustainable approaches to the conditions. So a uniform approach is often impractical and fails because of the reality of life in that region. I’m also really looking forward to working even more closely within the team. Together, we will define our ways of working and make sure we focus on the right issues.

Geri: What do you expect from your new team and how do you want to work together?

Su: I’m already taking over a great team, and that’s a real plus for me! It is important to me that we continue to build on trust, open communication and common goals. I hope that each of us will show initiative, be reliable and actively contribute to collaboration. It is important to me that we create a working atmosphere in which we regularly exchange ideas, give feedback and promote the strengths of each individual. This will allow us to grow together and advance sustainability at Emmi. What really excites me is the intrinsic motivation that everyone in the team brings to the table. For us, sustainability is not just a professional goal, but a personal attitude that requires ongoing training and an openness to new ideas. We are constantly developing and are motivated to make an active contribution to a sustainable future.

Su: Which projects or initiatives have you started that have grown particularly close to your heart, and why?

Geri: The Energy and Climate Workshop project, which we developed and implemented for our apprentices together with myclimate. Equally important is the district heating project in Suhr (Switzerland), which was the product of great courage and foresight and is now a source of great joy. The RecyPac project in Switzerland for the circular economy of plastics and beverage cartons is also an important milestone. We have provided intensive support and development work over the years.

The “KlimaStaR Milch” (Climate Star Milk) and “Klimatisch” (Climate Table) projects also demonstrate Emmi’s pioneering work and sense of responsibility. Particularly noteworthy is the collaboration with LPA and milk suppliers to determine and reduce the carbon footprint of milk.

Su: Has your understanding of sustainability changed over the course of your career?

Geri: Absolutely. At the beginning it was still a small, delicate plant and I had to fight for it to be on the agenda. Today, the dynamics have changed dramatically. Sustainability is increasingly an integral part of our business strategy and our daily lives. The interest and attention of various stakeholders has increased massively, and as a result, of course, so have external enquiries and the needs of our company. While I initially tried to create unique selling points for Emmi, it became increasingly clear to me that we could only solve the sustainability challenges we face together – in partnership with the players in the value chain. We demonstrate our added value as a company not so much with the solution, but rather with the approach in which we mediate, raise awareness and bring stakeholders together thanks to our good reputation.

Geri: How do you plan to further strengthen the sustainability culture within the Group?

Su: Our mindset plays a key role in seeing sustainability not just as a challenge, but as an opportunity. It can help us create competitive advantages, promote innovation and achieve long-term success – if we tackle it properly. I am particularly pleased that Emmi already has a strong sustainability culture. I believe that, as a team and with the help of every Emmi employee, we can do even more to further embed this attitude by communicating sustainability in the right context – communicating in a way that is meaningful and relevant to the particular situation, the team and the company’s objectives. We should not show sustainability as an abstract concept or isolated solution, but instead make it concrete and tangible. It will be important for us as a team to continue to highlight the best practices in our countries so that we can learn from each other, develop together on our sustainability journey and anchor them even more firmly in our corporate culture.

Geri: What vision do you have for the Group’s sustainability strategy over the next five years?

Su: My vision for the Group’s sustainability strategy over the next few years is to integrate the issue of sustainability even more deeply into the organisation and to anchor it more firmly. I want it to become part of our day-to-day thinking and actions, so that it is naturally taken into account in all our processes and decisions. Only in this way can we, as Emmi, contribute to achieving a positive impact and bequeath something valuable for future generations.

Geri Schatt, Head Group Sustainability
Su Durgut, Project Manager for Sustainability

REDUCING GREENHOUSE GASES WITH HEAT PUMPS

Can heat pumps help us achieve netZERO 2050?

With our netZERO 2050 vision for reducing greenhouse gas emissions, we have set ourselves an ambitious goal. In order to achieve this, amongst other things, we want to expand renewable energies, improve energy efficiency and new technologies use. This also includes heat pumps.

At present, our production sites generally use steam, generated from fossil fuels to provide the heat required for the processes. In addition, cooling is generated using electricity-powered cooling systems. Heat pumps have the advantage that they simultaneously generate heat and cold, both of which are required for milk and dessert production, using electricity and the use of existing ambient or waste heat. This technology is very efficient because it provides more thermal energy than it consumes electrical energy. Direct emissions (Scope 1, see info box) are thus reduced,

as lower levels of fossil fuels are burned. At the same time, the use of green electricity means that indirect emissions do not increase (Scope 2), despite higher electricity consumption.

Carla Tur Mel∙lo and Geri Schatt, the greenhouse gas experts in the Emmi Group sustainability team, are convinced that heat pump systems are currently the most interesting technology for the production of industrial thermal energy and have the best future prospects on the way to meeting netZERO 2050. In 2024, workshops took place at the Emmi locations at EDITA in Gattico (Italy), Pasticceria Quadrifoglio in Modena (Italy) and Kaiku in Lácteos de Navarra (Spain). The locations were then analysed in their entirety: what are the sources of heat and where does the need for energy come from? It is important to mention that sometimes no heat pumps are needed at all; instead, existing heat sources can be used. If there was a need at the sites, participants examined whether it was possible to install the heat pump technology on site, and then the next steps were defined.

How are we already using heat pumps?

The production facility in Etten-Leur (Netherlands) is equipped with a heat pump system for generating heat from electricity instead of gas for a large part of the factory. This creates a competitive advantage in times of high energy prices. This system means that the site is able to use the residual heat from the cheese factory across the street for its powder facility.

Local conditions require individual solutions

Heat pumps have to be considered as a holistic system and their use at different locations individually tested, because the local conditions in the individual plants vary greatly. What they have in common, however, is that they all have to be powered by electricity.

“To optimise the use of heat pumps, the temperature levels actually required should always be taken into account. We often find that the processes in production facilities are not fully optimised and that the temperatures for consumers could often be lowered,” says Carla Tur Mel·lo, Project Manager Sustainability.

The use of a heat pump has to be financially worthwhile. Although the financial business case is currently lacking in some regions, it is still to be examined whether this technology would be an option at a certain point in time. In our operations in the US and Tunisia, for example, heat pumps are currently not considered profitable, as gas is significantly cheaper than electricity locally and the costs cannot be offset despite the efficiency advantage.

Greenhouse gas reduction targets: Reduce CO₂e emissions by 60 % by 2027 (Scope 1 and 2, vs. 2014) and by 25 % (Scope 3, vs. 2019)

Greenhouse gas emissions along the Emmi value chain

Scope 1 umfasst alle direkt vom

(z.B Brennsto e, Kältemittel).

Scope 2 umfasst die indirekten, mit (z. B. Elektrizität, Fernwärme).

Scope 3 umfasst alle vor- und nachgelage sind das beispielsweise die Milchproduktion von Produktverpackungen.

How Emmi analyses its sources of emissions

Value chain

• Scope 1 includes all emissions caused directly by the company (e.g. fuels, refrigerants).

• Scope 2 comprises the indirect emissions caused by purchased energy (electricity, district heating).

Scope 1 umfasst alle direkt vom Unternehmen verursachten Emissionen

(z.B Brennsto e, Kältemittel).

They fall into three categories (“scopes”) that help companies to analyse their emissions and develop strategies for reducing CO₂. Each category comprises different emission sources, each of which requires specific measures. Optimising one category does not automatically improve the other areas, which is why the overall context must always be taken into account. Scope 1 emissions can be reduced by the use of heat pumps, along with other measures, but will increase Scope 2 emissions if electricity from renewable energies is not used.

• Scope 3 encompasses all upstream and downstream greenhouse gas emissions. At Emmi, these include milk production and the manufacture and disposal of product packaging.

Scope 2 umfasst die indirekten, mit eingekaufter Energie verursachten Emissionen (z. B. Elektrizität, Fernwärme).

Scope 3 umfasst alle vor- und nachgelagerten Treibhausgasemissionen. Bei Emmi sind das beispielsweise die Milchproduktion und die Herstellung respektive Entsorgung von Produktverpackungen.

Leandra Meier Graphic Farner Consulting AG
Text Leandra Meier Graphic Farner Consulting AG

More agile and networked: Rethinking teamwork

Since January 2023, the Group Supply Chain (GSC) has been working according to an agile model; employees are increasingly working in what are known as “Squads” on a project basis. The report shows what experience has been gained so far and what the merits of this new form of cooperation are.

The Group Supply Chain (GSC) team of around 25 analyses and provides support with problems of all kinds – often these involve processes and workflows that need to be optimised. But the GSC, led by Kai Könecke, had a problem of its own in 2022: there were no longer sufficient resources to meet the requests from the Emmi universe. Little by little, they came up with the idea of realigning themselves as a team and organising their work

differently. Nowadays, temporary project groups, known as Squads, are often formed to deal with a specific problem.

The key: these project groups may also include Emmi employees outside the GSC team who have important expertise to contribute to the solution. The core idea of the Squads is for employees from a wide range of functions and areas, whether at Emmi Switzerland or internationally, to contribute their expertise and perspectives to address issues.

How team structures have changed

Kai Könecke’s team has been working according to this principle for almost two years now. The queries are triaged by a committee called the “Kitchen”, which is made up of GSC team members, and then it is decided which problems a Squad should be formed for. The previous GSC departments, which are now called Base Camps, still exist. However, the hierarchy levels are much flatter, as Kai Könecke now communicates directly with the entire team (the oneGSC team) via debriefing calls or meetings. As a nice side effect, this has intensified the exchange with each other.

“Collaborating in an interdisciplinary team allows you to learn from different disciplines. ”
Céline Amrein, Head of Demand Planning

The experience with this agile model has been very positive. “We have strengthened team spirit and were able to break down the silos. By allocating resources in a more agile way and bringing in new perspectives thanks to the Squads, we have been able to shore up both innovation and efficiency,” says Kai Könecke. Employees outside the GSC who get involved in Squads also benefit. Céline Amrein, who took part in a Squad in the Sales and Operations Planning Process as Head of Demand Planning, emphasises how this way of working contributes to personal development – especially as a team takes on new perspectives and develops innovative solutions: “Collaborating in an interdisciplinary team allows you to learn from different disciplines. ”

In the almost two years since the introduction of this agile method, more than 40 Squads have already been set up in seven different countries, comprising around 75 Emmi employees. The result is an internal talent pool of over 100 Emmi employees, whose expertise can also be accessed for future teams.

Example: How sustainable is milk?

Alina Lötscher, Sustainability Manager GSC, provides an insight into exactly how the agile model works, specifically using the question of how the sustainability of milk can be measured. After all, this raw material is at the heart of all the Emmi Group’s sustainability efforts. As a key strategic objective is to meet 100 % of the sustainability criteria, a consolidated Key Performance Index that can measure progress is essential. “The mix of interdisciplinarity and the right environment meant that we quickly had the right answers to this question, which at first seemed very technical, and also knew how to proceed. ”

The five-person Squad team was therefore tasked with defining a method that combined the previous measurement dimensions in order to use a single KPI

in the future – whether for the annual report, the sustainability report or simply to control processes. The results are impressive: There is now a KPI for sustainable milk across all business units, the method is clearly defined and documented, and the value can be updated easily using an Excel tool.

Important prerequisites for this transformation

This example also shows clearly what is important if this agile form of collaboration is to produce concrete results: the right mix of competencies and new perspectives; specifically, in addition to experts, the Squads should deliberately include employees who are not yet very close to the topic. These employees must be proactively sought out and familiarised with the method.

Last but not least, Squads require good onboarding of all members as well as a trusting atmosphere in which they can work outside of traditional hierarchies and rigid structures. Trust was also the basis for the transformation in the GSC team: “Such changes can trigger anxiety. Everyone here has been transparently involved in this transformation from the outset, and we have driven it forward together as a team. It’s been a great learning process that has brought us closer together,” emphasises Andrea Koller, who is now part of the GSC team together with Marie-Kristin Schmid, as the Transformation Manager.

Benefiting from the experiences of the GSC team

The GSC team provides expertise and resources: Do you have a topic that you think a Squad ought to work on? Or would you like to join Squads yourself in the future? You can find all the information you need about GSC 2.0 here: Kitchens, Squads, Base Camps and more.

Text Manuela Specker
Photo Andrea Koller

Towards a responsible future

Using artificial intelligence (AI) is a crucial skill, for both the present and the future. At Emmi, we have already embarked on this journey.

The development of artificial intelligence (AI) is proceeding at a rapid pace. Anyone can easily use artificial intelligence in the form of ChatGPT, for example. Experts or the media predict that soon you will no longer be able to trust any image and that simple tasks will be easily replaced by AI. The reality, however, looks much less explosive at the moment. Artificial intelligence will change some of the ways we work, as did the internet and the launch of Google, but we humans will continue to be needed. It is important that we as employees, as Emmi, and as a company, actively engage with the issue and are aware of the opportunities and risks.

Responsible use of AI

With generative artificial intelligence, we can now generate text, create a suitable image or come up with the perfect idea at the touch of a button. Those who are already using AI software, such as ChatGPT, may have noticed that not everything always comes out the way we want it to. Sometimes the content is even incorrect or contains prejudices. It is important that we are aware when using such AI tools that they do not always work flawlessly. Emmi has an AI guideline in place to ensure that it is used responsibly. The main points are:

• You are responsible for the AI-generated content

• AI-generated content must always be critically scrutinised

• You should mark AI content as such

• You must not enter confidential data into AI tools –for exceptions, see the AI Guidelines

AI in everyday life at Emmi

In November 2023, we at Emmi provided an alternative to ChatGPT in the form of Copilot in Edge. Copilot in Edge can summarise information, generate images or act as a sparring partner. Requests can be made in full sentences and even in the user’s preferred language. In just a few seconds, Copilot in Edge brings together knowledge from different internet sources and intelligently links the information.

For example: “Tell me how to formulate an annual goal.” or “Create a picture of a cow in a meadow with a milk can next to it. ”

EmmiGPT as a turbo service

To enable us to easily ask for facts that are specific to Emmi, we made the first EmmiGPT available in June 2024. EmmiGPT collects knowledge from selected internal documents in just a few seconds and intelligently links the information. Only specific internal documents are used as sources, i.e. no information from the Internet. For EmmiGPT, too, entries are in the user’s preferred language. We currently have two EmmiGPTs in use at Emmi: one for Quality, Safety and Environment (QSE) guidelines and one for all HR issues.

For example: “What kinds of short absence are paid? ”

What is artificial intelligence? Artificial Intelligence (AI) is a technology that mimics human intelligence. AI systems are able to perform tasks that normally require human thinking. This includes recognising patterns, learning from experience and solving complex problems. Generative AI is a subdivision of AI that can create new content such as text or images.

Taking AI assistance to the next level

In future, AI will also support us directly in our digital workplace “EmmiConnect”. With Copilot in EmmiConnect, it is possible to search for information within Emmi, create content directly in the Office apps (e.g. Word and PowerPoint) or summarise your own messages. Copilot in EmmiConnect is completely secure, as the information does not leave the Emmi environment and it only shows the information to which that user has access. After an initial pilot test in IT, two thirds of the participants stated that they were demonstrably able to complete their work faster by using the service. We are currently testing Copilot in EmmiConnect with selected users from various specialist areas for specific use cases, and analysing its potential for Emmi.

For example: “Gather together my messages from the last two days together and tell me which tasks I still have to deal with,” or “Summarise the Teams meeting for me and list the tasks assigned to me. ”

A good prompt needs to be learnt

Regardless of which generative AI we use, communication with it, also known as prompting, must be learnt. The quality or accuracy of the answers depends directly on the structure and content of the request. We started the first prompt engineering courses in July. The interest was overwhelming. That’s why we now also offer an e-learning course. It not only shows how generative AI works, but also provides the best tips and tricks for obtaining the desired answers as quickly as possible. You can find the e-learning course on the learning platform in the HR Suite.

If you have any questions, please get in touch with Marisa Michlig and Flurina Baumann.

Text Flurina Baumann and Marisa Michlig
Illustration Amadeus Waltenspühl

Employee development

“We are continually developing” is one of our Emmi values. What does development mean to you?

Natalie: For me, development means becoming more diverse, being curious, keeping your eyes and ears open and having a certain joy in discovery – in keeping with our motto “Keep exploring”. Kai: Development starts with each and every one of us. Personally, I am convinced that all of our employees have a strong internal drive for further development and look for the opportunity to learn new things. This is invaluable for motivation and personal well-being. It is therefore our job as the Emmi Group and as managers to create an appropriate environment for this.

How do you learn in your daily life?

Kai: In particular, I learn by imitating behaviours that I feel are positive or right.

Sounds like you’ve really got the hang of learning?

Natalie: There’s a lot I don’t know or can’t do yet. But that’s exactly what I find incredibly exciting. I see room for improvement in planning learning times better and adhering to them more consistently. I learn all the time in my day-to-day life, but unfortunately it’s often without realising it.

Kai, how do you deal with professional development in your day-to-day life as a manager?

Kai: I take a relatively structured approach. I hold regular meetings with my employees in which the topic of development is firmly on the agenda. When issues arise, I try to give my team the appropriate support – this is based on trust and a culture of open discussion.

own development. This requires an open attitude, a willingness to learn, a dose of courage and determination to seize opportunities – especially if they are not 100 % in line with our expectations. If the topic of development is not addressed by the manager, I recommend that employees proactively seek to talk to them. The phrase “I want to change myself” can be the beginning of something new without immediately striving for a new job – after all, around 70 % of development takes place in one's current job.

Kai: At the beginning, it’s important to think about yourself: what are my goals and motivators? What drives me, what frustrates me? This knowledge forms the basis for your own development path.

What opportunities for further development are there for employees at Emmi?

Natalie: At Emmi, there are numerous development opportunities that must be recognised as such by the observer. We all learn every day from the new issues and situations we are confronted with – whether in production or in the office, where processes, technologies, products and collaboration are constantly changing. Emmi also offers a wide range of internal development opportunities, as well as numerous external opportunities. Activities such as taster sessions, shadowing and mentoring by colleagues also broaden your horizons.

What advice do you give managers?

Natalie: Be aware of your function as a role model. Talk about your own development, stay curious and keep learning – this makes you credible. I also recommend using the tools in EmmiNet and using feedback as a learning tool.

Kai: As a manager, develop your reputation as a “developer”: only if you encourage, develop and motivate your employees will you get the best people joining your team voluntarily. My tip: think long-term and have the courage to let your best employees go –one day they will return, strengthened and with new experiences under their belts.

If you could express a wish on the subject of “development” for the coming year, what would that be?

Kai: I would like this to become a matter of course: that managers naturally take care of the development of their employees, and that employees take responsibility for it too. HR should only act as support, without having to convince anyone of the importance of the topic.

Watch the video to find out Natalie’s answer (see QR code).

employees, who told me about their professional development paths – from their beginnings and job changes, all the way to their current positions. They were all visibly proud of their professional backgrounds and of what they had learnt and achieved. This pride touched me very much.

Thank you, Natalie and Kai, for the interview. What’s more: over the coming months, we will receive insights from other managers into their development activities #PowerAmbassadors.

Here you can find out about Natalie’s wish for the coming year on the topic of professional development.

Set SMART goals for your success!

2024 will be all about development and “growing together”. Executive Board members Natalie Rüedi and Kai Könecke tell us why employee development is important, what responsibilities it entails and what tips they give employees and managers. Find everything on the topic of the new target process here. (Only in German.)

Natalie: I feel the same way. I read a lot, listen properly in conversations and observe how other people tackle things. I look at certain approaches and methods and try them out in my day-to-day work.

How can employees promote their own development?

Natalie: Development cannot be delegated. That’s why it’s important to take responsibility for your

Natalie, whose professional development stories have you been excited about recently?

Natalie: During a visit to the production facility in Kirchberg (Switzerland) I was impressed by several stories of professional development: I spoke to various

Whether at work, for sport or on personal projects: Clear and well-formulated goals make all the difference. Why? Because SMART goals not only motivate you, but also enable measurable results!

You should consider the following five criteria when formulating your objectives:

Specific: Define your objective clearly and specifically.

Measurable: Define how you can evaluate your progress.

Attractive: Your goal should motivate you.

Realistic: Make sure that your destination is within reach.

Timed: Set yourself a clear deadline.

Harness the power of SMART goals and develop yourself further – step by step! Enter your goals in your new goals and development plan in the HR Suite now and start the new year SMART.

Interview Sarah Schneider
Photo Lorena Graf
Video only in German.

Fit for finance

700 employees from the management teams across all Emmi Group companies deepen their financial knowledge with the Finance Academy initiative – and they love it. Now it’s about anchoring the knowledge and getting more employees on board.

What does an income statement show us? How are financial figures calculated, what influences them? What is cash flow all about? This understanding is essential in order to understand strategic considerations and your own contribution to value creation. However, experts outside the financial sector often find themselves at their limits when it comes to such questions.

For this target group, which is not exactly small, the Group-wide training initiative Finance Academy was called into being. The programme runs over six months and has since been successfully launched at

all Emmi Group companies since January 2024. The core element is the e-learning and the subsequent team workshop, in which what has been learnt is applied in practical case studies. The feedback was positive across the board. Barbara Gallera, CFO of Emmi Dessert Italia, reports that employees have even asked for more sessions. The initiative will now be continued and expanded independently there at the local level.

Adapted to local circumstances

“Firstly, it can refresh your financial knowledge. Secondly, the content is tailored to specific events at Emmi. ”
Andreas Brun, Co-Head of the Finance Academy

In the next phase, the Finance Academy is to become a permanent offering. In other words, the aim now is to gradually make the existing training programme accessible to other employees, regardless of hierarchical level. “We first wanted to gain experience, and in this first year we limited the initiative to management teams,” says Carolina Yepes, Co-Head of the Finance Academy. In addition, it is important that the initiative is supported by the managing directors and financial officers – this is now one of the main reasons why the initiative is so popular. In addition, the graduates of the Finance Academy benefit very personally. “Finance knowledge is relevant for everyone,” is how Andreas Brun, co-director of the Finance Academy, sums up the importance of this initiative.

Another success factor: The learning journey is designed to be varied and entertaining. “Oh, finances can be fun after all,” was something that was said several times. Andreas Brun emphasises that those who are better versed in financial matters also benefit: “On the one hand, their financial knowledge can be brushed up. Secondly, the content is tailored to specific events at Emmi. ”

“We first wanted to gain experience, and in this first year we limited the initiative to management teams. ”
Carolina Yepes, Co-Head of the Finance Academy

From expertise to practical know-how

After graduating from the Finance Academy, many people have a different view of decisions and business development. In a rapidly changing environment, it is important to think in terms of scenarios, to understand the drivers of value creation and to know how your own work influences key financial figures. The teaching of practical knowledge has just as much priority as the teaching of theoretical expertise: the workshops are designed to see how what has been learnt is put into practice and how every-

one contributes to a common financial language. To ensure that what they have learnt can be anchored in the long term, it is important to question structures and create opportunities for the employees to apply their financial knowledge in their day-to-day work. To support this, the managers are already working on how graduates of this course can regularly refresh what they have learnt.

1 The Cypress Grove team also fully embraced the Top Gun motto.
Pepping things up: The training sessions were led by employees from the Finance and HR departments.
Text Manuela Specker Photo of the Lucerne headquarters reception team
In the business division Switzerland and Corporate, more than 200 people were trained in ten team workshops.

An anniversary year full of Emmi moments

Exactly 20 years ago, Emmi revolutionised the Swiss coffee market with inspiration from Japan and created an iconic lifestyle product. That had to be celebrated. Numerous events were held to promote Emmi Caffè Latte in 2024.

Around the turn of the millennium, a new coffee house culture with a hip barista scene emerged in Switzerland. Inspired by a coffee speciality from Japan that was as yet unknown in Europe, Emmi’s creative minds went to work after a visit to the Land of the Rising Sun, with a lot of passion and craftsmanship, to develop their own innovation. Emmi Caffè Latte, the first ready-to-drink coffee in Europe, was launched in March 2004. Since then, this cold refreshment for on-the-go has delighted not only people in Switzerland but millions throughout Europe. Emmi Caffè Latte has been serving customers for 20 years with freshly brewed barista-quality coffee and high-quality Swiss milk. For many, it is part of the daily morning ritual.

Consistently innovating

We have continued to develop our product over the past 20 years. Emmi is continually developing new varieties of natural coffee that are tailored to the needs of consumers. In its anniversary year, Emmi Caffè Latte Cookies & Cream in a young design by artist Ona Sadkowsky. Emmi Caffè Latte Decaf, the coffee pleasure without caffeine, will be launched at the end of the year. Emmi is known not only for its innovative indulgence, but also for its innovative

“Brands trigger emotions and that’s exactly what motivates me every day in my work. ”

formats. With Mr Huge, the pleasure of coffee is also available in a practical 650 ml format for enjoyment at home. The PET packaging is not only resealable, but also recyclable.

Big birthday party

The anniversary year kicked off with the big 20-year Emmi Caffè Latte party on 15 March 2024 in Zurich, Switzerland. There were countless Emmi moments at the Big Bang: Highlights of the event included XXL cups painted by Swiss artist Ona Sadkowsky, 360 GIFs displayed live on digital ads at eight railway stations, and coffee talks with Tom Lüthi and the beach duo Tanja and Nina, moderated by Yvonne Eisenring. The event concluded with a concert by Andryy and Jan Seven Dettwyler, which delighted the guests.

Sports and snow with Wendy –“Ok, Go! ”

Our brand ambassador Wendy Holdener invited Emmi Caffè Latte fans to a day of skiing in Hoch-Ybrig (Switzerland) on 7 April 2024. Wendy welcomed the winners to the ski race, hosted by former ski greats Tina Weirather and Marc Berthod.

Sand, beach volleyball and Emmi Caffè Latte

The next highlight in 2024 was the volleyball beach tour, with Emmi Caffè Latte as its main sponsor. Spectators got to know Emmi Caffè Latte up close on tour in Zurich (Switzerland), St. Gallen (Switzerland), Basel (Switzerland), Lucerne (Switzerland) and at the grand finale in Bern (Switzerland). The beach volleyball season was a resounding success, not least thanks to our brand ambassadors Tanja Hüberli and Nina Brunner, who won the bronze medal for

2

3

“Looking back at the history of ECL shows that it takes courage and perseverance to be rewarded with success at some point in the future. ”

Switzerland at the Olympic Games in Paris and were once again crowned Swiss champions in Bern. At the end of the tournaments, both visited our production plant in Ostermundigen (Switzerland), where Emmi Caffè Latte is produced. The team and the two athletes will remember this special Emmi moment for a long time.

Coffee on wheels

In the summer, we started our tour of Switzerland in our cool Emmi Caffè Latte Bus, bringing the celebration to our customers and consumers. Whether at the Emmi staff party, at various production sites or at Coop’s headquarters in Basel (Switzerland), the bus made people smile wherever it went. In Emmen (Switzerland), our brand ambassador Wendy Holdener took time for the Emmi team and handed out autographs.

Inspiring competitions

Of course, we didn’t want our Emmi Caffè Latte fans to miss out. For the anniversary there was a big competition with great prizes: the main prize was a new Mini Electric, and there were also 20 Edelweiss

flights, 20 e-bikes from Diamant and daily instant prizes to be won.

Dancing, celebrating, indulging

Emmi Caffè Latte also took part in Energy Air in Bern (Switzerland) on 7 September 2024. Tickets for OpenAir, which attracted 35,000 music fans and many well-known musicians, were up for grabs – but the only way to get them was to win them. With our human slot machine, we delighted guests from the moment the door was opened to the minute it closed behind them – there was always a queue at least 10 metres long at the attraction.

Grande Finale – up in the air

In the autumn, we ventured high in the sky with our first Emmi Caffè Latte hot air balloon. Tanja Hüberli and Nina Brunner were able to go on its first flight. At the same time, the successor to Nina Brunner was announced. Starting next season, Tanja Hüberli and Leona Kernen will start as a new duo. The balloon will also be seen again after the anniversary. After all, we are continuing the story of Emmi Caffè Latte with a passion for wholehearted indulgence.

Stephanie Waller, Senior Brand Manager, Emmi Caffè Latte
1 A festive start to the anniversary year: the big 20th anniversary Emmi Caffè Latte party on 15 March 2024 in Zurich (Switzerland).
The new beach volleyball duo Tanja Hüberli and Leona Kernen.
We started our tour of Switzerland this summer with our cool Emmi Caffè Latte Bus.
Stephanie Waller, Senior Brand Manager, Emmi Caffè Latte

Emmi Landenbergstrasse 1

CH-6002 Lucerne Switzerland

info@emmi.com www.emmi.com

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