AAK Annual Report 2017

Europe $FURVV (XURSH ZH VWUHQJWKHQHG RXU PDUNHW VKDUH VLJQL¿ - cantly through volume growth well above the underlying market growth. Our strong multi-oil platform, in-depth expertise in oils and fats, and multi-processing capabilities combined with our continued focus on customer co-de- YHORSPHQW DOORZHG IRU VLJQL¿FDQW JURZWK LQ VSHFLDOLW\ DQG semi-speciality solutions. Momentum in Chocolate & Confectionery Fats remained very strong in Eastern Europe and Russia as well as with our strategic accounts across the region. Within Dairy we saw an emerging demand for dairy alternatives and plant-based solutions, a dominant trend that will create further opportuni- ties in the coming years. The Bakery segment had another FKDOOHQJLQJ \HDU SDUWLFXODUO\ LQ :HVWHUQ (XURSH +RZHYHU ZLWK WKH GHPDQG IRU KHDOWKLHU VROXWLRQV ZH DUH FRQ¿GHQW WKDW organic volume growth in this segment is possible for 2018. Special Nutrition saw strong demand in both domestic consumption and export to Asia. Akonino ® , our tailor-made product range for Infant Nutrition, continued to grow faster than the market and the Akonino ® Organic range was also in high demand. Medical Nutrition continued to grow through our product range Akomed ® , and within Senior Nutrition, a QHZ FDWHJRU\ IRU $$. ZH GHOLYHUHG WKH ¿UVW YROXPHV RI RXU Akovita ® product range during the year. As for Foodservice, we had a strong year in the UK, growing faster than the market. In Scandinavia, however, we faced some challenges due to changing market and competitor dynamics. Regional markets 20 We have observed an increasing demand for organic solutions, most notably in Infant Nutrition and Dairy. We have responded by setting up dedicated supply chains to meet this demand. To stay ahead of the competition and maximize business opportunities we continue to invest in application know-how, skilled resources and product development capabilities. An example is the strengthening of our Customer Innovation Centers network in Europe that allows our customers to truly co-develop solutions with AAK. North Latin America 2017 in Mexico was very much marked by a continuously changing industry environment with an increasing focus on healthier food alternatives, stricter food safety controls, and a challenging competitive environment. By surpassing our customers’ expectations with an uninterrupted evolution of innovative solutions and process improvements, we kept AAK Mexico at the forefront of processed food industry suppliers in the country. In addition, AAK Mexico responded to a demanding economic and political situation with a highly effective and coordinated execution in every link of our value chain – from precise raw material sourcing to an extremely high service level to all customers. Going forward, we foresee a more demanding industry, changing faster than ever before, with new requirements in healthier and more