AAK Annual Report 2020

AAK Annual Report 2020 21 Solutions AAK Foodservice produces more than 500 different frying oils, speciality oils, condiments, sauces, dress- ings, and ingredients for foodservice operators and retailers across market-leading brands and private label products. Trends Over the past year, foodservice operators have focused on core menu items and changed their operations to be Covid-safe while at the same time enabling delivery solutions. An even greater focus on safety, quality and value for money will drive operators’ menu develop- ment going forward. Key market trends remain strong: plant-based and dairy-free solutions, health and wellness, indulgence, and sustainable solutions. New products Co-development in 2020 was heavily focused on adding value opportunities to trend products and packaging solutions such as dairy-free and vegan sauces under our Rapsona brand, Lion-branded dip pots, ExSeed high-performance oils, and private label products including spray oils and dressings. Future growth The early part of 2021 has been defined by further lockdowns and restrictions, followed by cautionary consumer spending. However, the industry will bounce back and there is positivity in the market for the second and third quarter with a pent-up customer demand anticipated to drive the eating-out market once lockdowns are lifted and vaccination programs are fully underway. New products The launch of AkoPlanet in 2019 has been 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. We look forward to a number of new and exciting product launches in 2021. Future growth Led by the rise of flexitarians, a healthier lifestyle, and Generation Z’s efforts to ensure a planet for their children, the plant-based segment is forecast to grow in the years ahead. Special Nutrition Despite the challenging year of 2020, marked by the Covid-19 pandemic, Special Nutrition managed to continue to report profit growth. This was driven by our high-end solutions within sub-segment Infant Nutrition as well as business region Asia, supported by new local Chinese customers. Solutions AAK provides tailor-made speciality lipids solutions for Infant, Senior, and Medical Nutrition. Trends The global trends that are driving AAK’s Special Nutri- tion segment are health, premiumization, trust, and sustainability. New products We have developed a variety of new global products for all three sub-segments within Special Nutrition. Examples include an extension of our egg phospholip- ids portfolios Akonino ELIP™ and Akovita ELIP™, new organic solutions, and new high-end solutions within our INFAT™ range, sold through Advanced Lipids, a joint venture between AAK and IFF (International Flavors & Fragrances Inc.). Using our co-development approach, most products and solutions within Special Nutrition are tailor-made for our customers. Future growth Going forward, we will focus on growing in the wider nutrition area by bringing new innovations to the global nutrition markets and increasing our presence in selected regions. During the first half of 2021, we will expand our production facility in China to enable local production of INFAT and to support continuous growth in Infant Nutrition in the region. Foodservice 2020 was a challenging year for the foodservice market as the Covid-19 pandemic hit hard and resulted in numerous lockdowns and restrictions across our key markets, Scandinavia, the UK and USA. AAK has been agile and we quickly adapted to meet the challenges as well as our customers’ needs. On the back of the pandemic, the retail segment delivered a strong performance.