1. Overcoming the Limitations of
Authorities in Health and
Wellbeing Dairy Marketing
World Dairy Conference London,
27 January, 2011
Philipp Siebrecht,
Group Brand Manager Wellbeing
Emmi Switzerland

2. Content
Emmi – Who we are
EFSA – Who they are (and what they do)
Recall from this morning:
Health in Marketing
How can you apply it to your brand

3. And you will learn…
…what we feed our vampires in Switzerland.

4. Who we are
Sales 2009 CHF 2,619 million (2008: CHF 2,671 million)
Net profit 2009 CHF 75.3 million (2008: CHF 58.7 million)
Net profit margin 2.9% (2008: 2.2%)
Headcount
3,525 (as at 31 December 2009)
(full time equivalents)
Volume of milk
904 million kg (2008: 963 million kg)
processed in 2009
CEO Urs Riedener (since March 2008)
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5. Where we work and live
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6. Where we work and live
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7. Our vision
Independent and successful in open markets
The most innovative European premium dairy –
consumers favourite choice for real premium Swiss indulgence
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8. What we aim for
Vision  Independent and internationally successful dairy in
open markets
Market positioning  The leading Swiss company for cheese and milk
products
 The leading company for Swiss cheese worldwide
 One of the leading premium dairies in Europe
Growth  2 – 3% (innovations, acquisitions and gains in market
share)
Profitability  2 – 3% net profit margin
Shareholders’ equity  Equity ratio of at least 40%
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9. Rise in growth: Sales trends 2002 - 2009
In CHF million
2,750 2,693 2,619
2,500 2,501
2,335 626
2,250 587
675
 2009 slight decline of -1.9%
2,027 509
2,000
1,879 1,926
1,750 444
 Switzerland -4.9%
414 447
1,500
1,389  International 7.9%
1,250 256 1,944
1,000 1,914 2,067  Organic -4.4%
1,826
1,583
750
1,465 1,479
1,133
500
250
0
2002 2003 2004 2005 2006 2007 2008 2009
Abroad Switzerland
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10. Broadly based product portfolio: Sales figures 2009
Other products and
Powder/concentrates
services
3.3% (CHF 85 million)
6.4% (CHF 169 million)
Dairy products
Fresh cheese 28.5% (CHF 746 million)
5.2% (CHF 135 million)
Cheese Fresh products
35.1% (CHF 919 million) 21.5% (CHF 564 million)
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11. A history full of innovation, to be continued.
Swiss Müesli Gala
Aloe Mousse
Minicol
Vera
Benecol Création Yoghurt Lucerne
Choco Latte Yogodu
2002
1996 2003 2004 2005 2006 2007 2008 2009
Aktifit Winzer Emmi Caffè Latte Zero
Kaltbach Le Gruyère
SwissAlp Käse Energy Milk
MC Neil Benecol Drink
Kaltbach Raclette Mozzarella
Emmi Caffè Latte Lassi Luzerner
Yogi Drink
Tigre
21
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12. Our 4 brand pillars
Emmi Swiss Indulgence Emmi Wellbeing
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13. Who deals with EFSA, the European Food Safety Authority?
In the past 12 months,
who of you has heard about,
worried about or been in contact
with EFSA ?
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14. Who is EFSA and what do they do
 European Food Safety Authority
- Risk assessment for EU member states re. food and feed.
- Provides scientific advice and clear communication on existing
and emerging risks.
- Exists since 2002.
 Important: only risk assessment.
Risk management done by European Commission,
European Parliament and EU Member States.
 „EFSA’s independent scientific advice underpins the European food
safety system. Thanks to this system, European consumers are
among the best protected and best informed in the world in regards
to risks in the food chain.“
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15. EFSA bringing more clarity into the jungle of health claims
 Regulation 1924/2006: Started in December 2006, issued
20.12.06, corrected 10 days later:
 Please read quickly:
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16. More of Regulation 1924/2006
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17. More of Regulation 1924/2006
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18. Scroll all the way to Chapter III (Nutrition Claims) and
Chapter IV: Health Claims
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19. Nutritent Profiling and Health Claims – let's take a closer look.
 "Health Claims are prohibited unless they are permitted."
 Health Claim may be made if:
referring to a nutrient or other substance for
- growth, development, functions of the body, psychological or
behavioral functions, slimming, reduction of hunger…
(so whenever something is happening)
 Based on generally accepted scientific evidence and
 Understood by the average consumer.
 Nutrient profiling: Maximum level of sodium, saturated
fats or sugar exceeded  no health claim can be made.
Goal: Protect and inform consumers by assuring them
- that health claims are backed by science
- that they are not made on unhealthy products.
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20. What was supposed to happen then:
 Article 13.1: "Let's confirm existing text book knowledge."
 Article 13.5: "Please, send us your request (and substantiation) for
a "new" health claim."
(Send list to your EU-member state who will send them to us)
Deadline: 31.01.2008
EFSA will issue recommendation (within 5 months or 6 at the most).
EU commission will adopt a community list of permitted health claims by
31.01.2010
Member states can ask for revision, based on scientific evidence, after
consulting with EFSA.
Last but not least: EU Commission shall maintain a community list of
approved and rejected health claims.
 Not covered in Article 13: children's development and disease risk
reduction (covered in Article 14).
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21. What really happened:
 "Send us the claims":
40.000 claim applications were sent to EU Commission and on to EFSA.
 Sorted out, double counts deleted. Net: 4637 health claims
 Some 2000 health claims too superficial  sent back to EU-Commission
in Jan. 2009.
 Feedback with added info from member states re-submitted Nov. 2009
 Last set of 452 health claims submitted in March 2010.
 Processing of requests takes a bit longer than expected
 Results issued in batches
- Advantage: inform the consumer as quickly as possible about risks.
- Dissadvantage: unfair distortion of competition…
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22. Results up to know:
 3 batches of health claims published so far (Jan. 2011):
Art. 13.1,: 4638 general health claims were received :
1745 health claims published
355 accepted
1390 rejected
Art. 13.5: 45 protected, "new" health claims were received:
27 health claims published
3 accepted
24 rejected
Art. 14: 268 children and health risks claims were received:
77 health claims published
21 accepted
56 rejected 2 more batches with 2000+ claims expected
for mid 2011
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23. What do we have to do now?
 So far, nothing has changed.
 EFSA recommendation needs to be adapted by EU commisson.
 EU Commission need to draft legislation
 Member states need to put in country law (maybe in 2012)
 …and enforce law after transition period (maybe 2nd half of 2012).
 Quote from a manager in the health and wellness industry from 2008:
"So I guess we'll just have
to wait with our Marketing
until 2012."
WRONG !
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24. Health Claims are just one element of your Marketing toolbox.
Most important: have a good health claim on your pack!
 Target the right consumer in the right way with the right product.
 And please, no average consumer!
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25. Age and sex are rather vague consumer clusters and do
not sufficiently focus on behavior.
• Weak description of a consumer: female between 16 and 40
with small kids.
• Better:
Female worker, stressful job, maybe children to cook a dinner
for, a husband, constantly looking for ways to make life more
convenient for the family but not compromise on health for her
loved ones. Has friends over for dinner once per week.
Wants to do the grocery shopping on
her way home from work…
She is most likely a “Manager”
• Let’s call this lady Andrea for now.
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26. Know what market you play in – regardless of the health claim
regulation.
Recall from Neal Cavalier-Smith's presentation this morning:
Source: Wennström/Mellentin:
The Food and Health Marketing Handbook
www.thehandbook.info
Wennstrom’s Four Factors™ and the FourFactors® Brand Analysis system (The three stakeholder curve) ©2010
Healthy Marketing Team. Reproduction ONLY by written consent from SimonG@HealthyMarketingTeam.com
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27. Behavior-based consumer typology instead of"female, 40+."
Healers and Disciples Strugglers and Unmotivateds
Investors and Managers
Health Focus® Consumer Segmentation
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28. What kind of claiming in what market segment?
Typical technology stakeholder consumer insight:
"I want it clinicaly proven. Show me the results."
Advice:
Make sure you explain everything in detail.
Have your clinical studies ready – in best quality.
Use ingredients that really, really, really, have an effect.
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29. What kind of claiming in what market segment?
Typical technology stakeholder consumer insight:
"I want it clinicaly proven. Show me the results."
Movie from Kaiku Benecol.
www.kaiku.es
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30. What kind of claiming in what market segment?
Typical lifestyle stakeholder consumer insight:
"I have 100 things on mind, need 27 hrs. in the
day, not 24. I need quick and healthy solutions
that fit into my day and the day of my loved ones."
Advice:
Pick up what they know already and advance.
And only nutrients they are sort of aware of
(like omega-3, probiotics, superfruit such as
goji or cranberry).
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31. What kind of claiming in what market segment?
Typical mass market consumer insight:
"I don't have a problem.
And besides, I think health is a matter of luck, anyway"
Advice:
Highlight what they are already aware
of and use nutrient claims.
And only nutrients they are aware of
(like calcium and vitamins)
EFSA: not an issue!
Movie from Emmi Energy Milk.
www.emmi-energymilk.ch
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32. How you can get started: some general advice.
Allow trendy ingredient/substance to imply your function claim:
Guarana, Goji, Ginseng, Polyphenols and more.
Include vitamins/minerals with pre-approved generic claim
(possibly alongside more “alternative” ingredients.)
Vitamins, Zinc, Calcium, Magnesium, Iron etc…
Don’t claim – use official recommendations like
Part of your five-a-day, 100% RDA, But avo
id "miss
and "va lea
Recommended by the Swiss Heart Foundation… gue hard ding"
claims"
Use transitional brands and trademarks
(until 2022 if used prior 2005, Art. 27)
Slimfast, Aktifit, Muscle-milk, Activia, …
Don’t claim an effect – use language and images
Yin-yang, zen stones, Running person, Owl etc.
Only general advice.
Emmi does not take any liabilities. Please consult with your regulatory affaires department for further clarification.
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33. Summary
 Do not get distracted from your Marketing job by the
EFSA-discussion.
 Know what market segment you are playing in.
 Substantiate with data and then be pragmatic – don't wait until 2012.
 Above all: be consumer-centric in all you do.
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34. Thank you!
Contact details:
Philipp Siebrecht
+41 79 788 6577
Philipp.Siebrecht@emmi.ch