Consumer Business Area Growth with customers in the right channels With an integrated acquisition and an even stronger design offering, the foundations have been laid for winning additional market shares. Business area strategy in brief: Duni shall be the natural business partner for the European grocery retail trade. Drive the category together with the grocery retail trade based on a customer and consumer perspective. Through a high level of flexibility and service offering, to be a part of the customer’s business model, both within Duni’s own brand and the trade’s private labels. The Consumer business area produces and sells consumer products such as napkins, serving products and candles, under its own brand and under the customers’ private labels. The largest channel is the grocery retail trade in Europe, with Germany and the Nordic region being the largest markets. POPULAR PRODUCTS The market for consumer products for the set table is expanding. The trend of creating a convivial atmosphere with designed products is continuing. This is evident not least in social media, where many people actively share their own Goodfoodmood® moments and table setting tips. SENSING THE RIGHT METHOD The leading way to reach more consumers is to grow through and with the customers. During the year, Duni has worked in various ways to improve its service offering to existing customers. Attentiveness to the customers has been prioritized in order to create customized solutions and products that meet the customers’ needs. Efforts have also been made to further increase delivery certainty. The sales organization has held more and improved product demonstrations, which have often led to an increase in sales. Designed for growth “Creating Goodfoodmood® at mealtimes in the home is becoming even more important. Through closer dialogue with the customers and a more attractive design offering, we are generating growth the right way.” Tina Andersson, Director Business Area Consumer & Corporate Marketing PRIZE-WINNING DESIGN The primary driver of growth on the consumer market is an appealing and unique design. Here, Duni has conducted several activities that have generated excellent results. New designers have been recruited, thereby further raising the level of the design of the products. At the beginning of the year, there was cause for celebration when Duni was awarded the prestigious Red Dot Design Award and A’ Design Award for a series of plates and bowls. The concept of Designs for Duni® was created in 2013 in order to signal Duni’s ambition to offer top class design. It involves the development of specific product collections together with high-profile external designers, such as the Swedish designer Hanna Werning and the Finnish company Vallila. The concept has grown in popularity year after year and, in 2015, two successful collaborations were launched with the German companies Glööckler and Graziela Preiser. The collaborations have been successful in terms of sales and have received considerable exposure in the media. Several unique collaborations will be presented in the course of 2016. ACQUISITIONS PROVIDE NEW OPPORTUNITIES A significant event in 2014 was the acquisition of Paper+Design in Germany. Similarly to Duni, the company has a strong offering to the consumer market, both in Germany and on other markets within and outside Europe. The aim of the acquisition (apart from growth on important new markets), was to obtain access to new and significantly more types of customer channels. Integration work commenced immediately and has continued during 2015, with good results. CUSTOMERS’ NEEDS DICTATE Creating profitable growth requires being at the forefront in the right channels. Ever more customers within the grocery retail trade are offering sales online. This imposes more exacting demands on Duni to be able to deliver products in a new, more digitalized manner. An online shop is already established on Duni’s Swedish website. Designs for Duni® In 2015, two extremely successful collections were launched together with Glööckler and byGraziela. Several unique collaborations will be presented during the course of 2016. Net sales and operating income, SEK m Net sales |Operating income 2013 603 13 2014 889 54 2015 1063 84 Net sales per product group, % Net sales, % Napkins 55 Tablecoverings 19 Serving products 8 Candles 2 Other 16 Net sales by geographic region, % Net sales, % Southern and Eastern Europe 7 Central Europe 72 Nordic region 14 Rest of the world 7 Customer categories Grocery retail trade Retail outlets