Palm oil Poland: trends & market Marcin Troniarz 18/09/2015 1 - - PowerPoint PPT Presentation

Palm oil Poland: trends & market

Marcin Troniarz 18/09/2015

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IOI Loders Croklaan

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IOI Group’s controlled integrated supply chain

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• The largest

vegetable oil based Asian oleochemical manufacturer

• Combined refining

capacity > 750,000 MT

• Global distribution
• 250.000 hectares
• 14 mills with >4

million MT capacity. 12 RSPO certified

• Enhanced

agronomy R&D and yield management.

Plantations Oleochemical

• RM 12.6 billion

revenue in 2014

• Listed on Bursa

Malaysia stock market

• 30.000 employees

IOI Group

• Specialist &

leading player in tropical oils

• Expert in

commodities and specialties

• 3 million MT

refining capacity

IOI Loders Croklaan

IOI Loders Croklaan’s capabilities

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• We are a downstream processing division of IOI Group

IOI Group one of the world’s largest integrated palm oil producers

• We develop specialty oils & fats primarily for the food industry
• Ranging from bakery to confectionary to infant nutrition
• Our focus is creating tailored offerings for customers together with customers
• We leverage our responsible supply chain with operating excellence
• All of this is complimented by our R&D and application leadership

Achievements and Milestones

• Established in 1890 (UK)
• Invented CBE’s and OPO
• Leading the trans fat elimination
• CO-Founded the RSPO
• Regional Creative Studios

Expertise built on rich experience

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At home in all segments, leveraging expertise

7 Confectionery Bakery Spreads Culinary Infant Nutrition Non Foods Frying Dairy

Palm oil: The key to trans free fat

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Palm oil consumption in Poland

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• Mainly imported via Germany & The Netherlands
• Uptake of refined palm oil is driven by different factors, including

local food consumption and increased production for retailers in Western Europe

• Increased interest in TFA-free solutions drives palm oil usage

*Source: Eurostat

Trends in the Polish market

• Existing products and new introductions are

becoming more premium due to changing demand in local consumption and export markets

• As a leading producer of retailer brands for the

European market, the Polish market is picking up trends at a high pace

• Health and nutritional values are primary drivers for

the changes in the market

• Premiumisation is seen in type of ingredients used:
• Natural & sustainable
• Higher quality perception, eg. from CBR to CBE
• Highly functional products, eg. anti-bloom and

quick/clean melting specialty fats

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Health & the removal of trans fats

• TFA: Strong correlation with the

development of coronary heart disease

• TFA: Via partial hydrogenation of

vegetable oils

• TFA: Highly functional: stable and

fast processing

• EFSA recommends: intake should

be as low as possible

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Great efforts to remove trans fats from our diet

• Consumption has been reduced significantly over the years
• According 2011 publication* average consumption in Poland (2.8 - 6.9

grams/day) was still too high

• Target: <2 grams/day

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*J. Karbowska, Z. Kochan: Trans fatty acids, effects on coronary heart disease

Palm oil: the key in functionality for good food

• Fatty acid composition provides specific

functionality

• Production of high quality foods at

required processing performance

• Similar end products require similar

amounts or behavior of the fatty acids

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Palm oil: the key to zero-trans products

• The natural composition is able to match the performance and eating properties
• f trans fat in our favorite products
• This contributes to delivering the targets stated by EFSA and other health

authorities: less than 2 gr of trans fat a day/less than 1% of daily energy

• Palm oil is the only source of vegetable fat that is abundant in supply, able to

tackle the trans fat challenge on a EU and even a global level

• This value is delivered at price levels that enable manufacturers to improve food

composition without increasing consumer prices

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Sustainable palm oil: the key to the future

• Sustainable palm oil rapidly becoming market standard in Europe
• Transformation in W-Europe in full swing, E-Europe now picking up
• Sustainable palm oil enables the use of functional benefits while strengthening

the brand image of manufacturers

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IOI Loders Croklaan: Taking Responsibility

Fully committed to drive sustainability and provide healthier alternatives

Our vision and commitments

• IOI Group and IOI Loders Croklaan are committed to the RSPO

Principles & Criteria, and our Sustainable Palm Oil Policy

• We are guided by our Responsible Operating Principles
• We are committed to our traceability program
• We are committed to increasing the amount of RSPO certified

sustainable Palm we process in our factories.

• Our focus on natural processes results in the removal of trans fats an

the lowering of saturated fat in consumer products.

Taking responsibility

Front runner in sustainable palm oil

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Proof points

• IOI Group as a main supplier is fully RSPO and ISCC

certified for all its mills (excluding newly acquired Unico).

• Co-founder of RSPO and seat in the RSPO Board.
• In 2014 IOI Loders Croklaan Europe has sold 53% of

its volumes as certified sustainable.

• Current traceability level on palm is 94%
• First to import RSPO-SG palm in 2011.
• Biggest supplier of RSPO-SG palm fractions in Europe
• Positive shea assessments by RFA in 2011 and 2014

We offer:

• Access to knowledge and

expertise

• Priority in allocating

certified sustainable material

• Affordable sustainable

products

Our expectation for the Polish market

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• Continued (and growing) role as food producer for the European market
• Continued premiumisation
• Continued adaptation of nutritional profiles, leading to a removal of trans fats

from the diet

• Accelerated uptake of sustainable palm oil, paving the way in Eastern Europe
• Growth of consumers awareness
• Growth of retailers impacting new trends

To summarize

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• Palm oil is a key ingredient for the production of high quality foods
• Use of sustainable palm oil in Poland will be growing and at higher pace
• Polish market is picking up trends at high speed
• Interest in TFA-free, non-hydro solutions is growing rapidly in C&EE
• Palm oil enables the removal of trans and hydrogenated fats
• Premumisation & higher customer awareness
• Sustainable palm oil will become a standard in Europe
• Companies like IOI Loders Croklaan are a right partner in this rapidly changing

market with solutions readily available

Let’s create together

Thank you

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