Orkla’s Annual Report 2020 | Goal and strategy

Focus on long-term, sustainable value creation

Orkla’s goal is to strengthen its position as a leading supplier of branded consumer goods in the Nordics, Baltics, Central Europe, India and other selected markets, and in doing so we will achieve long-term value creation and profitable growth. Orkla wants to contribute positively to our consumers, customers, partners, employees, shareholders and the communities we are a part of, and an emphasis on sustainable value creation permeates all our activities.

Winning locally

Orkla’s mission, “Improving everyday life with sustainable and enjoyable local brands,” describes how Orkla seeks to create value in local markets. Orkla creates organic growth by transforming its unique local customer and consumer insight into strong innovations and investment in Orkla’s local brands. The combination of local insight and scale is what sets us apart from our competitors, both globally and locally.

Priority areas for Orkla:

Orkla will continue to focus on plant-based products, building on established positions.
Orkla will continue to develop new innovations, including health focused products.
Orkla will strengthen its presence in emerging sales channels.
Priority will be given to developing and strengthening customer relationships, with a shared goal of profitable growth.
Selected products will to a greater extent be launched in multiple markets.
Acquisitions are still a source of significant value creation, renewal and skills upgrading.

Improved profitability through simplification and increased operational efficiency throughout the value chain

The Group will leverage economies of scale, reduce portfolio complexity and create cross-Group synergies
The Group will also extract synergies through the integration of acquired companies.
Production will be concentrated on fewer production facilities where appropriate. In addition, existing facilities will be further optimised, for instance through increased automation. This will free up resources for innovation, growth and skills building.

Purposeful sustainability work

Orkla strives to stand out positively in the eyes of consumers, customers, partners, employees, shareholders and the communities that we are a part of, and we play a crucial role in promoting sustainable production and consumption. Orkla works resolutely to ensure sustainable raw material production, develop sustainable packaging and reduce the climate footprint of its products. Orkla also seeks to contribute to a healthier lifestyle by improving the nutritional profile of its food products and developing new health innovations and future-oriented foods.

Acquisitions

Strategically appropriate acquisitions will remain a key element of Orkla’s growth strategy and value creation model. This is combined with active portfolio management aimed at reducing complexity.
Through acquisitions, Orkla aims to strengthen its operations in selected geographical areas, channels or categories where we can win leading positions based on the Group’s core competencies.