AAK Annual Report 2017

USA ,Q $$. 86$ GHOLYHUHG UHFRUG YROXPHV DQG SUR¿WDELOLW\ enabled by market share gains in key segments including Chocolate & Confectionery Fats, Dairy and Special Nutrition. California Oils Corporation was successfully integrated, EULQJLQJ WKH EXVLQHVV WR SUR¿WDELOLW\ LQ OHVV WKDQ RQH \HDU through principled management and deployment of AAK’s customer-intimate go-to-market approach. AAK USA is heavily engaged with the food industry to UHPRYH SDUWLDOO\ K\GURJHQDWHG RLOV 3+2V IURP OHDGLQJ IRRG formulations in preparation for new regulations from the US Food and Drug Administration taking effect in June of 2018 that ban the use of these oils in all food categories. Investments in assets and people continued in 2017 to support the AAK go-to-market and customer co-development models. Two new Customer Innovation Centers were opened, one in Edison, New Jersey focusing on chocolate & confectionery and bakery applications, and another one in Louisville, Kentucky featuring a bakery lab and state-of- the-art pilot votation equipment to support scale-up and increased speed-to-market for customers. Construction of a third innovation center in Richmond, California has begun. This will feature a bakery lab as well as a dairy lab that will act as AAK’s global center of excellence for plant-based dairy applications. In support of AAK’s West Coast expan- sion, a fully staffed Customer Innovation team has been established in Richmond. 2DVLV )RRGV LQ +LOOVLGH 1HZ -HUVH\ FRPSOHWHG LWV rebranding to AAK USA Foodservice to align with and leverage AAK’s strong market presence. Our Foodservice business had a record year, delivering market share gains through strong customer support and connectivity. To support continuing volume growth and a strong mix improvement towards specialities, investments in capacity are underway in the Louisville and Port Newark facilities.