Table Top business area

Focus on larger customers generates increased cost efficiency

The Table Top business area offers Duni’s concept and products primarily to hotels and restaurants, and mainly markets napkins, tablecoverings and candles for the set table. Duni is a market leader within the premium segment in Europe.

Net sales increased to SEK 2,179 (2,040) m. Operating income increased to SEK 373 (339) m and the operating margin to 17.1% (16.6%). The operational leverage from increased volumes and the improved cost efficiency are the most important factors behind the stronger operating income. In 2014, Table Top accounted for approximately 51% (54%) of Duni’s net sales.

The business area’s strategy in brief:

Leader within the premium segment.
Growth through geographic expansion focused on increased market shares in Southern and Eastern Europe, as well as the UK.
Take advantage of new trends and concepts on the HoReCa market, such as increased demand within bars, cafes and fast-food.

The business area carried out a radical reorganization towards the end of 2013, with focus being placed on larger customers. This has contributed to increased volumes and improved earnings in 2014. The market remains dominated by local restaurants, but global chains are demonstrating strong growth and gaining market shares.

The strategy of having pan-European customer relations managers is a way for Table Top to address this trend. In order to increase the efficiency of their purchasing operations, these customers are seeking a partner who is established throughout Europe. During the year, Duni gained contracts with major wholesalers, hotel chains and catering firms operating across Europe.

For several years, Table Top has focused on premium products. We will continue to develop this segment, but sales of value range products – i.e. products that are not unique to Duni – must increase in order to achieve the Group’s growth targets.

The business area has continued to focus efforts on Southern Europe, yielding successful results especially in Italy and Spain. Double-digit percentage growth figures have been achieved on markets that have been weak for several years.

Continued roll-out of Evolin®

The continued roll-out of the new tablecovering material Evolin resulted in an increase in sales of approximately 60%. The Evolin range is being constantly expanded with, among other things, several formats. During the year, the business area also commenced work on revitalizing the Dunicel® and Dunilin® brands.

One of the challenges for Table Top is also to move towards growth customer categories such as bars, cafes and fast-food that do not represent the business area’s traditional customer groups. During the year, Table Top successfully launched concepts for this segment, for example a cocktail napkin that can be used as a coaster, napkin, or for finger food.

A napkin looking like a towel napkin is an example of product development within the business area’s traditional customer segments. There is a need to address the “bare table” trend. The towel napkin is a good way of creating an atmosphere, but it quickly becomes stained, loses color and form – but, with Duni’s product, the customer has something that is always fresh on the table.

The “naked table” problem isn’t one that presents itself within the events industry. Thus, for this segment the business area has now introduced a large circular tablecovering in Evolin. The laundering of large linen tablecoverings is often regarded as a problem, being time-consuming and carrying with it major costs.

The world’s first compostable product range

Thanks to the OK Compost® marking, during the year Duni was able to offer the world’s first compostable product range. An ever-increasing number of restaurants in Europe are sorting their food waste, and there is a need to be able to compost also colorful premium products such as Duni’s. This has aroused major interest during the year.

Table Top believes that there is a trend towards customers once again valuing quality. The trend involves fewer – but higher value – guests, thereby providing greater opportunities for Duni to sell higher quality products.

Breakfast consumption outside the home is increasing rapidly. Table Top has developed products specifically for breakfast, for example a napkin with a pocket for cutlery. This allows for simple and quick table setting, which is important for our customers since a rapid and high-volume guest turnover is required during a couple of intensive hours.

Goodfoodmood®

“Goodfoodmood® is a vitamin kick for Table Top. It’s an important step in an updated Duni and entails an improvement both for our traditional and new customer categories. Visually, it creates clearly greater relevance.”

Maria Wahlgren, Director business area Table Top

Net sales and operating income, SEK m