AAK Annual Report 2019

22 Dairy Dairy had yet another great year, reporting double-digit growth compared to 2018, both in terms of volumes and operating profit. All regions, North Latin America, South Latin America, the US, and Europe in particular, contributed with positive results. Solutions We provide the whole dairy and ice cream segment with solutions ranging from cheese, whipped toppings and yellow fats to fermented milk products, milk drink, and coffee whitener. During 2019, we saw a great increase in sales of speciality and semi-speciality solutions. Trends The major dairy trends are healthy, sustainable and more cost-effective solutions. The dairy industry is also very much impacted by the rise of flexitarians, gener- ating a need to develop solutions for plant-based dairy products. New products Through our co-development approach, our Customer Innovation team has developed a variety of new products around the AAK world, resulting in yet another record year. Future growth By maintaining our strong focus on speciality and semi-speciality solutions, our Dairy segment is expected to continue its growth journey. Plant-based Foods 2019 was a record year for Plant-based Foods, with the plant-based meat category being a significant contrib- utor to the positive results. The growth was mainly driven by the US and Europe, but with good help from South Latin America and Asia. Solutions We offer solutions for all major sub-segments within Plant-based Foods, be it plant-based burgers, sausages, frozen desserts, cheese, milk drinks, whipped toppings, or fermented products. The segment’s primary products are all part of our AkoPlanet ™ range and specifically designed and proven for each application. Trends The main trends supporting the market are health, sustainability, and a lifestyle where the “Instagram ability” of foods is of critical importance for today’s conscious consumers, increasingly defining themselves as flexitarians. New products The launch of our umbrella brand AkoPlanet ™ in June 2019 was very successful. AkoPlanet ™ consists of our proven solutions for the segment of plant-based foods, and the range is our foundation for developing specific solutions by using our co-development approach. Our pipeline of customer co-development projects has quadrupled since launch. Future growth Led by the rise of flexitarians, a healthier lifestyle, and the younger generations’ desire to ensure a planet for their children, the plant-based segment is expected to continue its growth journey. Special Nutrition Special Nutrition reported profit growth in 2019. This was particularly driven by high-end solutions within sub-segment Infant Nutrition. Solutions AAK provides tailor-made speciality lipids solutions for Infant, Senior, and Medical Nutrition. Trends The global trends that are driving AAK’s Special Nutrition segment are health, trust, sustainability, premiumization, and personalization.