COMPANY PROFILE -AAK AB
Business Sector :Consumer Goods – Food Products
Operating Geography :Sweden, Europe, Global
About AAK AB :
AAK AB, a producer of vegetable oils and fats is headquatered in Malmo, Sweden. It was founded in 2005 through the merger of Karlshamns AB and Aarhus United A/S and was formerly known as AarhusKarlshamn. AAK AB specializes in plant-based oils that are the value-added ingredients in consumer products. It provides services to a wide-range of industries, including Chocolate & Confectionery, Bakery, Dairy, Plant-based Foods, Special Nutrition, Foodservice and Personal Care. As of April 30, 2021, the company had approximately 3,900 employees in 25 regional sales offices, 15 dedicated Customer Innovation Centers. It has a multi-oil and multi-process approach with more than 20 production facilities and customization plants all over the world. AAK was awarded with 2020 Sustainable Beauty Award and shared the Sustainability Leadership Category award with Lush.
AAK AB’s unique selling proposition lies in being one of the leading providers of plant-based oil solutions in the world. AAK AB’s vision is, “We make these products better tasting, healthier, and more sustainable. We can also optimize production by substituting existing ingredients with plant-based equivalents that give our customers better efficiency. AAK's value-adding solutions enable our customers to be successful in a better way.”
AAK AB Revenue :
SEK 27,934 million - FY ending 31st December 2020 (y-o-y growth -2.02%)
SEK 28,510 million - FY ending 31st December 2019
Competitive Analysis of AAK AB
The SWOT analysis for AAK AB is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Co-development model is helping create innovative solutions and gain customers
2. Continues to grow above the underlying market in specialty and semi-specialty ingredient segment
3. Broad portfolio of profitable industries with global footprints
4. Acquisition of world’s largest confectionary market strengthens footprints in local market | 1. Company fails to implement NDPE compliance policy for its palm suppliers |
Opportunities | Threats |
1. There is a growing demand for efficient and value adding bakery solutions worldwide
2. Consumers demand for plant-based food has risen, gives boost to plant based offerings
3. Increasing popularity and demand of essential oils in aromatherapy
| 1. Faces intense international competition with low margin penetration
2. Increasing raw material prices are impacting cash flow
3. Biofuel demand is increasing soy and palm oil prices
4. Exposed to currency fluctuation and raw material price risks
|
AAK AB SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed SWOT Analysis of AAK AB
Strength
1. Co-development model is helping create innovative solutions and gain customers: AAK has developed a unique co-development approach for its products, in which they collaborate with their business partners and customers to build specialized products. This helps them bring innovations, working closely with customer and their needs, reduce development times with effective implementation, also develop innovative teams and extensive knowledge base to meet present as well as upcoming product challenges. AAK's multi-oil and multi-process innovation has allowed them to solve customers’ unique challenges and provide customized competitive solutions; this has enabled AAK to expand and gain new customers. AAK has collaborated with global bakery leaders to create non-hydrogenated oils alternatives, with Chinese subsidiary to produce AKOSNAC Y, a healthier, vegetable oil-based alternative for popcorns, having reduced SFA by 40% compared to traditional coconut oil, with Chinese dairy to make Akoroma NH38, which is customized pizza topping, and with UK daily collaborations to produce pricey butter alternatives.
2. Continues to grow above the underlying market in specialty and semi-specialty ingredient segment: AAK has been making faster growth in the underlying target market in both specialty and semi-specialty product offerings for food ingredients and chocolates fats segment. AAK’s high market share is attributed to its unique co-development model. AAK has also increased its global presence with recent acquisitions of chocolate confectioneries. In 2020, during the pandemic, linear growth in the plant-based food offerings and higher-end special nutrition products which helped it grow operating profits per kilo. AAK is also building a R&D center, specially for plant-based foods in Netherlands, where focus will be on high demand healthier and sustainable products. Chocolate and confectionery segment performed better than counterparts due to improvements in supply chain in Denmark; in FY 2020, the company was able to increase operating profit per kilo to 1.93 SEK from 1.73 SEK and overall operating profit was 865 SEK million which was 8.9% higher than previous year.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for AAK AB is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Sweden and China relations worsen, could cause disruption to exports | 1. Food Industry contributes to EU’s circular economy adoption action plan 2020 |
Social | Technological |
1. Consumers are focused on healthier and more sustainable solutions
2. Increased consumer demand for natural ingredients in the personal care products
| 1. Innovative technology to deliver customizable solutions to bakery customers
2. Edible oil industry is benefiting from technology for clean labels and changing oil formulas
|
Legal | Environmental |
1. EU proposed palm oil ban could impact edible oil manufacturers
2. EU has extended Sweden from Biofuel tax exemption till 2030
| 1. Focus on reducing GHG emissions reduction targets through SBTI and coconut industry
2. PALM risk tool allowing satellite monitoring to curb deforestation of palm oil
|
AAK AB SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of AAK AB
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Focused on reducing GHG emissions reduction targets through SBTI and coconut industry: Sweden has set goals to reduce GHG emission and becoming carbon neutral under its long-term sustainable strategy that includes, carbon neutrality by 2045, and industry wide GHG control milestones, every decade, starting 2020. FY 2020 is the milestone target for domestic transportation. The 2030 target that includes multiple industries will require contributions from food industry as well. This will include energy and carbon tax, sustainable raw material procurement guidelines, water waste management etc. AAK has announced a commitment to reduce GHG emissions using science-based target initiative in which it will try to keep global warming 1.5 degrees above pre-industry levels. AAK also has welcomed and agreed to contribute to UN SDG goals and Paris agreement. AAK has made agreement with coconut industry in 2020, focused on improving farmers lives and supply chain to boost coconut supply at the same time take measures to reduce carbon footprints.
The remaining section under "Environment" is available only in the 'Complete Report' on purchase.
Major Competitors :
- Bunge
- Adani Wilmar
- Ventura Foods
- Goodman Fielder
- Goodman Fielder
- Stratas Foods
- Vandemoortele
Major Brands :
- Prep
- Whirl
- Lion
- Prep Premium
- Uncle John’s
- GreenPalm
- Fanagra SA
- Rapsona AB
AAK AB SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in AAK AB SWOT & PESTLE Analysis Report
1. Annual Report 2020 - https://mb.cision.com/Main/871/3325982/1401842.pdf
2. Co-Development | AAK - https://aakfoodservice.co.uk/co-development
3. Annual General Meeting May 7, 2021 - https://www.aak.com/siteassets/investors/annual-general-meetings/2021/presentation-from-aak-president-and-ceo---agm-2021.pdf
4. Essential oils market demand worldwide 2018-2025 - https://www.statista.com/statistics/750725/global-essential-oils-market-demand/
5. Sustainability Report - https://www.aak.com/reports/sustainability_report_2020/13/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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AAK AB SWOT and PESTLE analysis has been conducted by Rakhesh Shewale and reviewed by senior analysts from Barakaat Consulting.
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