Mergers, acquisitions and corporate restructuring

Doro SimoneTodea Anee-MarieVaresco Michela

Outline

n ZUEGG Presentation

n Company Analysis

n Industry, trends and consumers’ behavior

n Strategy & Forecasting

n Conclusions

Company Information

n Italian family-based companyn Cultivation and processing of

fruit productsn Complete control on the value

chainn High quality and local productsn Presence in Europe: Austria,

France, Germany, Italy and Russia

Swot Analysis

Weaknesses• higher prices than competitors • low results in the past years low profits

in the sector of baby food• other current liabilities: +75% in 4

years

Threats• Russian market: a large portion

belongs to Pepsi and CocaCola (acquisition of many small local companies)

• big multinational competitors• increasing costs of raw materials

Opportunities• (recent) expansion abroad • 3rd rank in Europe for semi-finished

products • strategic alliances: new markets and

products• high demand in Spain, Italy and UK

Strengths• high quality and naturalness of the products• control on the entire production chain (from

the raw materials to the finished products)• B2B: 41% of the total revenues (increasing

trend)• increase in the extension of the cultivated

land• trust of consumers on local and genuine

products• Skipper: best brand

Financial Analysis

Industry, trends and consumers’ behavior

food industry not affected by financial crisis

increasing demand for healthy products

purchases driven by quality, not by price

preference for local products1. “I want high value, not necessarily low cost.” 2. “Make it easy to be green.”3. “Keep me safe.” 4. “Help me stay healthy.” 5. “Make my busy life less stressful.”6. “Make me feel special.” 7. “Understand my cultural context.”

Strategy - Brainstorming

Smoothies No plan for future acquisitions

“We are digesting our operations in Russia and it will take a while, we have a step by step policy in

our company”. Oswald Zuegg

Avantium

Retailers

Strategic Alliance

B2B segment: - collaboration already implemented in Russia- expansion of the business- no disproportionate new costs- expand the hectares of cultivated land

Strategic Alliance

B2C segment: Activia ItalyCharacteristics of the product: sugar-free jam and fresh fruit provided by ZUEGGlight yogurt with 0% fattriple amount of proteins the exclusive probiotic culture Bifidus Regularis Flavors: coscia peer, quinci apple, black grapes and Sicilian red orange

Forecasting

Strategy – strong pointsBoth  companies ZUEGG DANONE

-­‐  growth  in  revenues-­‐  growth  in  gross  profit-­‐  following  and  being  part  of  the  new  healthy  trend

-­‐  associa8on  with  a  mul8na8onal-­‐  recogni8on  as  an  qualita8ve  supplier-­‐  be;er  presence  in  Europe-­‐  recogni8on  as  a  true  italian  brand  ambassador

-­‐  recogni8on  for  qualita8ve  produc8on-­‐  innova8on  in  new  products-­‐  compe88ve  advantage  in  Europe  among  its  peers

Strategy – weak points (risks)- low demand on Activia Italy- brand identity lost as a consequence of the collaboration

solu%on:  good  marke%ng  campaign  and  clear  message

Thank you for your attention!