TINE BA_04_E_for_pdf

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THE TINE GROUP - ABBREVIATED ANNUAL REPORT AND ACCOUNTS
10°
20°
The Artic Circle
65°
60°
Key events in 2004
Contents
JANUARY:
AUGUST:
Establishment of TINE Raw Materials.
Established subsidiary in UK, TINE UK Ltd.
Key events in 2004
2
TINE’s key figures for 2004
3
Purpose: to ensure a level competitive
Foreword
4
playing field for industrial players
SEPTEMBER:
inside and outside TINE.
MMI yet again ranked TINE top in its
Vision, mission statement and goals
5
Organisation chart
5
survey. TineMelk Smak is launched
FEBRUARY:
– a new line of low sugar, flavoured milk.
Plant structure – fresh products supply Øst.
Report from the Board of Directors
6
Profit and loss statement
10
Balance sheet
11
Consequences: long-term focus on
OCTOBER:
TINE Meieriet Øst Oslo, Sem and Frya.
TINE serves the King and Queen of Norway
Jarlsberg® in Singapore.
MARCH:
Recruitment of women.
NOVEMBER:
TINE’s goal by 2009: the council shall have
The decision to build a new plant at Jæren
an owner elected gender representation of
is shelved.
Report on activities in the TINE Group
14
at least 20%. The dairy companies’ boards
The Dairy Companies
18
shall have an owner elected gender repre-
DECEMBER:
sentation of at least 30%. There shall be at
The Norwegian Competition Authority visits
least one person of each gender on all
TINE to obtain information in connection
work committees.
with Synnøve Finden’s complaint to the
- TINE Meieriet Øst
18
- TINE Meieriet Sør
18
- TINE Meieriet Vest
18
- TINE Midt-Norge
19
TINE’s annual meeting held in Oslo
- TINE Meieriet Nord
19
- a constructive meeting with good
Norwegian Competition Authority.
APRIL:
contributions and discussions.
Wholly owned subsidiaries
MAY:
- FellesJuice AS
20
- Ostecompagniet AS
21
- Small People AS
22
research and development, production,
- Diplom-Is AS
23
marketing and sale of marine products
- Maritex AS
24
- Norseland Inc.
25
Decision that TINE, together with Bremnes
Fryseri, will establish a company for the
based on farmed salmon.
The transport strike had some impact on
us and resulted in poorer sales for several
TINE’s corporate management
26
Statistics
27
weeks.
JUNE:
TINE’s head office moved from Breigt. 10
to Oslo Atrium.
The annual report was compiled by TINE Communication,
TINE BA.
Editorial team:
Director of Information: Kari Raunedokken
Project Manager: Mona Edland
JULY:
The framework for the new WTO agreement
was signed. Great deal of media interest
about the consequences for TINE.
Number printed: 2 000
Design/layout: Aksent Kommunikasjon AS
Photos: TINE Mediebank
2 –
KEY EVENTS IN 2004 /THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
Source: TINE Mediebank
TINE’s key figures 2004
2004
2003
Milk producers
— cows’ milk, with delivery over the year
17 976
18 785
Milk producers
— goats’ milk, with delivery over the year
Dairy cows total
Dairy cows per herd
Dairy goats total
Dairy goats per herd
548
603
278 624
279 287
16.6
15.8
45 522
46 914
80.7
78.3
Output per cow, cow control
kg
6 469
6 314
Output per goat, goat control
kg
592
576
TINE GROUP, TOTAL
2004
2003
Turnover
NOK billion
14.1
13.4
Operating result
NOK billion
276
256
Profit (for the year) before tax
NOK billion
229
184
Cash flow from operations
NOK billion
1 117
-38
Investments
NOK billion
864
751
Capital adequacy/equity ratio
%
51.6
48.4
Debt-equity ratio
Average credit period
Turnover TINE BA
0.9
1.0
days
30.7
35.2
NOK billion
17.4
10.8
Average delivery per producer:
Dairy delivery:
Cows’ milk
litres
81 812
78 893
No. of employees:
Goats’ milk
litres
36 420
32 654
TINE BA
people
397
403
Cows’ milk
million litres
1 471
1 482
The dairy companies
people
4 447
4 371
Goats’ milk
million litres
20.0
19.7
Other companies
people
705
656
NOK per litre
3.58
3.54
TINE Group, total
people
5 549
5 430
Milk price paid to the farmer
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / TINE’s KEY FIGURES 2004 –
3
Trust – a basic commodity
We shall continue to build on the sound expertise,
willingness to change and innovative power that
TINE’s owners represent. These are characteristics
that have been developed through a deliberate and
long-term focus over almost 125 years. Our vision
remains firm: we will be Norway’s most important
contributor to value creation! We have dedicated
and used a lot of time and energy for the future in
2004. The TINE 2010 strategy document is a result
of thorough work by the management, employee
representatives, owners and employees.
We in TINE are actively working to ensure that there
will be a basis for milk production throughout Norway
"We shall
also in the future. We realise that the restructuring
trend within primary production will continue. Our
continue to
goal is to create profitability for Norwegian milk
producers and to safeguard the value Norwegian
build on the
farmers create and, through our form of ownership,
sound
to ensure that agriculture and the districts receive the
benefits of the value created in the countryside.
expertise,
We are satisfied with sales in 2004. We have grown in
willingness to
most categories and for the first time in very many
years sales of milk have also grown. The growth
Acting CEO Hanne Refsholt.
comes from new product varieties and confirms that
systematic work on developing new products in new
We in TINE believe that the Norwegian people want a
packaging solutions is critical to market success.
future in which they have their own food culture and
A significant proportion of TINE’s turnover also comes
their own food industry, which cannot be bought by
from products and markets that cannot be defined as
foreign interests. We intend to stand as the guarantor
the domestic dairy market. We believe this trend will
of such a future.
change and
innovative
power that
TINE’s
employees and
continue and contribute to TINE being more robust,
which in turn will strengthen its owners, the dairy
owners
farmers.
Hanne Refsholt
Because we face a future with a more competative
Acting CEO
market, including for food products, it is important
that the right conditions are put in place to ensure that
the industry can develop international competitive
power. It is more important than ever that the food
industry in Norway stands united in discussions
concerning the industry’s framework conditions.
TINE will actively work to ensure that the food industry
does indeed stand united and promote common points
of view in the debate.
4 –
FOREWORD / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
represent"
TINE’s vision, mission statement and goals
OUR VISION:
OUR MISSION STATEMENT:
"We will be Norway’s most important
contributor to value creation"
•
We shall create social, environmental and financial
value.
•
We shall prove ourselves worthy of trust in all
parts of the value chain.
•
We shall be innovative and offer an abundance of
food products and meals.
•
We shall promote the enjoyment of food and
develop Norwegian food culture.
•
The TINE Group is a cooperatively owned food
group which is run efficiently and innovatively,
and prioritise quality and the market.
•
The TINE Group shall provide its members with the
best possible financial result and the highest
possible volume of milk, in both the short-term and
the long-term.
OUR GOALS:
1. To give our members the best possible milk price
and to be a company with the power to do so in the
future.
2. To give our employees a company which focuses on
the best and provides opportunities for the majority.
3. To give our customers and consumers value for
money.
4. To provide the community with a company which
creates sustainable food production.
Organisation chart as per 01.01.05
Corporate Management
Corporate staff
Administration
TINE Meieriet
Nord BA
8 plants
TINE
Midt-Norge BA
12 plants
TINE Meieriet
Vest BA
8 plants
TINE Meieriet
Sør BA
11 plants
TINE Meieriet
Øst BA
14 plants
Administration Dairy Companies
CORPORATE FUNCTIONS:
TINE Export
TINE Research and Development
TINE IT Centre
TINE Ingredients
TINE Purchasing
TINE Communication
TINE Logistics
TINE Marketing
TINE Personnel/Skills
TINE Advisory Service - producers
TINE Sales, Retail
TINE Sales, Catering
TINE Economics and Finances
TINE Raw Materials*
WHOLLY OWNED SUBSIDIARIES
WITH DETERMINATING INFLUENCE:
Diplom-Is AS
FellesJuice AS
Maritex AS
Norseland Inc.
Ostecompagniet AS
Small People AS
TINE Næringsmiddel AS
* Separate division which is separate from both an accounts and administrative point of view.
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / TINE’s VISION, MISSION STATEMENT AND GOALS / ORGANISATION CHART –
5
The Board of Directors’ report
TINE BA is the parent company in the cooperative
The Board of Directors’ work has involved analysing
TINE Group, which has its headquarters in Oslo.
and assessing various scenarios concerning the
Using Norwegian milk, the group processes and
future conditions Norwegian milk production and
sells milk and dairy products. The Group has five
TINE, as one of Norway’s largest and most important
regional dairy companies, as well as several
food groups, may face. The board will actively
wholly and part owned subsidiaries within the
work to ensure that milk continues to be produced
food industry. The group also has subsidiaries in
throughout Norway in the future as well, and that
the USA and the UK.
no one is in a better position to deliver this milk
and process it into important and high value food
TINE BA is owned by approximately 18,500 milk
products than TINE. At the same time TINE will use
producers. The TINE Group has 5,549 employees and
its skills and strengths to develop food products
an annual turnover of approximately NOK 14.1 billion.
other than based on milk.
Board of Directors and Acting CEO 2004
From the left: Egil Torland (Region South), Tor Inge Eidesen (Region South), Eva Kaldahl (Region Central Norway), Ola K. Feste (Region West),
Marit Bårnes (Region East), Kjell Mjaatvedt (Region West), Jan Ove Holmen - former CEO, Jostein Frøyland, Chairman of the Board (Region South), Ingunn Solaas
(Chairman of the Council), Steinar Grimsrud (Region East), Wenche Stuvland Knygh (Region North), Fredmund Sandvik (Region Central Norway), Svein E. Bekken
(Region South), Jan Ove Tryggestad (Region West), Terje Falstad (Region Central Norway) and Ole Martin Pettersen – Deputy Chairman (Region North).
6 –
THE BOARD OF DIRECTORS’ REPORT / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
Good sales
For the first time since 1992 we can state that the
category "milk" has sold a greater volume than the year
before, something the Board of Directors would like
to express its satisfaction about. This increase has
occurred despite a fall in market share of approximately
1%. We ascribe the good sales to the fact that an
increasing number of research reports are documenting
the importance of milk and dairy products as important
sources of nutrition, and the good work TINE has done
on product development, new packaging solutions and
successful launches. Sales of cheese have also been
very satisfactory, and it is interesting to see that cheese
is increasingly becoming a part of day-to-day cooking.
TINE would never on its own be able to offer every
sort of different cheese the market wants, as the
Norwegian market is too small. Given the steadily
increasing imports of cheese, the total range of cheeses
available in parts of the grocery trade is at a European
level, and TINE wants to take the lead in developing
regulation is very modest. This has been made possible
this further through its own volume products and
through good prognoses and logistics systems. Milk
other producers’ niche products with its subsidiary,
production still does not correspond very well to demand
Ostecompagniet.
for some parts of the year and the greatest disparities
can be found in parts of Western Norway north of
SALES OF JARLSBERG® exceeded 24,000 tons last year,
Haugalandet and the valley districts in Eastern Norway,
2/3 of which was sold outside Norway. We now sell
where most milk is produced in the winter half of the
Jarlsberg to 12 other countries and sales are doing well
year. The Board of Directors is considering new
everywhere. The retail price is in the upper bracket in
measures to try and rectify this.
every country, and in the USA Jarlsberg® is the clear
price leader as well as being the most imported cheese
within its category. Sales in the USA have experienced
Framework conditions
formidable growth over the last few years and almost
Every industry needs predictable and relatively stable
5,000 tons of the total sales of 11,000 tons were
framework conditions in order to be able to make the
produced in the USA. Jarlsberg® has consolidated its
right decisions for the future. An industry that primarily
position as an international cheese brand and in the
bases its activities on a raw material that is among the
autumn of 2005 we plan to start production in Ireland.
freshest and most vital that exists, is no exception in
this respect. No one yet knows how the new WTO
agreement will affect Norwegian milk production or
Well-balanced milk market
the processing companies. The Board of Directors,
In 2004, 1,520 million litres of cows’ milk were produced
however, are of the opinion that the negotiators have
in Norway, the same quantity as the previous year, and
done a good job on behalf of the Norwegian authorities
20 million litres of goats’ milk, an increase of 25%.
in conveying Norway’s positions in the negotiations.
TINE processes no less than 97% of all the processed
The Board of Directors is also of the opinion that each
milk, equal to 1,471 million litres.
country has considerable influence when it comes to
arriving at solutions that safeguard much of the desired
The milk balance, the relationship between production
food production in their country. TINE will ask the
and the demand in the market, has overall been very
authorities to make use of the transitional period (that
good this year. Stocks have been driven down to a
has been negotiated).
minimum and the quantity expended on market
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / THE BOARD OF DIRECTORS’ REPORT –
7
"A new
Competition
Act came into
effect on 1st
May 2004.
THE BOARD OF DIRECTORS VIEWS the EU’s developing
A NEW MARKET REGULATION system for milk came
agricultural policy with concern. Poorer prices for dairy
into effect on 01.01.04 and TINE has taken note of it.
farmers are leading to an increasing number of farm
All the milk delivered by milk producers is now billed
closures and larger average farm sizes. The proposed
by TINE Raw Materials and all industry players pay the
dairy merger between the Danish/Swedish Arla and
same price for the milk bought from TINE Raw Materials.
Dutch Campina will result in approximately 21,000
According to the Board of Directors this scheme has
members with an average delivery of more than 600 tons.
functioned as intended. TINE Raw Materials will submit
Norwegian membership of the EU with the consequent
audited accounts by 1st June for approval by Norway’s
EU agricultural policy would result in a restructuring of
(State) Agricultural Administration. Deviations from
Norwegian milk production that we cannot imagine today.
the budget shall be billed directly against the milk
producers and will in turn affect the calculation of the
With the exception of milk that goes to some farm based
target price.
cheese factories, all the milk production and processing
of milk in Norway is subject to the system of market
As a major
market player
it is important
that TINE acts
in accordance
with the new
act."
8 –
regulation for the milk sector. The market regulation
Market competition
system covers the following main areas:
Activity that takes place in the market between suppliers
•
• market regulation
• quota scheme
• producer oriented subsidies
• protection against imports that have been reported
and customers is regulated by the Competition Act,
price equalisation
to the WTO
which in turn is administered by the Norwegian
Competition Authority. A new Competition Act came
into effect on 1st May 2004. As a major market player
it is important TINE acts in accordance with the new
act. The new act was implemented because Norway is
a country with a small population, which gives rise to
The various elements of the market regulation system
a need for strict legislation so that major suppliers do
share a common purpose: to create stability and
not attain too much power. In the opinion of the Board
predictability in the milk production. We still disagree
of Directors it would appear that no attention is being
with the requirements being stipulated regarding
paid to the fact that major international food companies
TINE’s return on capital in the calculation of the target
are continuously strengthening their positions in the
price.
Norwegian market. The Norwegian authorities have to
THE BOARD OF DIRECTORS’ REPORT / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
put framework conditions for Norwegian food companies
help ensure that the fresh products distribution is socio-
in place that allow them to build up international com-
economically efficient.
petitive power.
Approximately 80% of TINE’s sales in Norway are to
the grocery trade. As well as being a major supplier,
TINE 2010
TINE is also a major purchaser of products and services.
AT THE END OF 2004 we could show that most points
TINE aims to act ethically and systematically in its
of our business strategy, TINE 2005, had been followed
business dealings with both its suppliers and customers.
up. In the autumn of 2003 we commenced work on the
As suppliers we face an increasingly competitive situa-
further development of our business strategy. In the
tion. There should of course be openness about what
years ahead we will face challenges due to changed
is going on in the sector, however competition does
political framework conditions and tougher competition
mean that agreements that have been signed between
in our markets. At the same time we have built up an
suppliers and customers cannot be made public to
organisation over the last few years that is well qualified
everyone.
to succeed in both established and newer product
and market segments. Analysing the challenges and
TINE HAS A WIDE RANGE OF PRODUCTS and appro-
opportunities was central to the work of the Board of
ximately 50 new product lines are added each year.
Directors during the spring of 2004. During the
It is our impression that consumers are continuously
autumn months the results of this work have been
hunting for new products that suit precisely them.
discussed by the owner organisation. The process of
Through our product development we are striving to
putting together what is called TINE 2010 was concluded
be able to offer something for every palate and for
in early 2005. Keywords for our future strategy are:
every need.
• growth and profitability in the market
• strengthened competitive ability
• development of and focus on existing business areas
• internationalisation
• broad political networking
IN THE BOARD OF DIRECTORS’ OPINION TINE’s fresh
products distribution is efficient and it is also in TINE’s
strategic interests to follow the products all the way to
the shops. We expect all players in the grocery trade to
CEO Jan Ove Holmen resigned on 19.02.2005. Hanne Refsholt has been appointed Acting CEO.
Oslo, 23 February 2005
The Board of Directors of TINE BA
Jostein Frøyland
Chairman of the Board
Marit Bårnes
Svein E. Bekken
Tor Inge Eidesen
Terje Falstad
Ola K. Feste
Eva Kaldahl
Wenche Stuvland Knygh
Kjell Mjaatvedt
Fredmund Sandvik
Jan Ove Tryggestad
Egil Torland
Steinar Grimsrud
Ole Martin Pettersen
Hanne Refsholt
Acting CEO
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / THE BOARD OF DIRECTORS’ REPORT
9
Profit and loss account
In NOK 1,000
TINE GROUP
TINE BA
2004
2003
13 234 189
12 498 383
2004
2003
11 525 844
4 974 064
5 620 921
5 632 905
233 866
238 539
17 380 631
10 845 508
5 181 354
5 216 935
10 828 193
4 661 501
OPERATING REVENUES
Sales revenue, finished goods
463 105
466 004
Sales revenue, raw materials for processing
398 264
416 865
Other operating revenues
14 095 558
13 381 252
5 181 354
5 216 935
Purchase of raw materials from producer
2 635 948
2 300 614
Purchase of finished goods, packaging, additives,
TOTAL OPERATING REVENUES
OPERATING EXPENSES
adjuvants, charges, etc
2 424 300
2 344 687
525 550
484 106
9 640
23 051
3 043 190
2 755 448
13 819 982
13 124 841
275 576
256 411
0
0
Staff expenses
234 329
226 244
Ordinary depreciation
163 442
141 719
Write-down fixed operating assets
Other operating expenses
TOTAL OPERATING EXPENSES
OPERATING RESULT
0
5 059
858 047
763 164
17 265 365
11 014 622
115 266
-169 114
154 981
341 773
FINANCIAL INCOME/EXPENSES
0
0
88 388
173 068
4 476
10 297
4 897
3 708
Income on investments in subsidiary companies
Interest received from group companies
66 099
95 124
Other financial income
61 029
145 544
834
1 665
1 738
3 212
Value change of market-based financial current assets
Loss on investments in associated companies
Write-down of financial assets
8 508
1 269
36 103
55 967
135 408
250 583
Other financial expenses
101 842
195 542
-46 155
-72 195
FINANCIAL ITEMS, NET
146 736
335 809
229 421
184 216
PROFIT FOR THE YEAR BEFORE TAX
262 002
166 695
71 918
8 784
47 628
30 988
157 503
175 432
214 374
135 707
104 577
105 147
Taxes
PROFIT FOR THE YEAR
-1 248
MINORITY INTERESTS’ SHARE
158 751
MAJORITY INTERESTS’ SHARE
Transfers:
Paid to milk producers
10 –
Transferred to/from funds
109 797
30 560
TOTAL TRANSFERRED
214 374
135 707
Net group contributions paid to subsidiaries
175 049
94 075
ANNUAL ACCOUNTS / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
Balance sheet
In NOK 1,000
TINE GROUP
2004
TINE BA
2003
2004
2003
49 194
24 988
0
0
ASSETS
Intangible assets
13 092
0
59 740
5 120
Deferred tax assets
Goodwill
4 978
11 906
Other intangible assets
77 810
17 026
TOTAL INTANGIBLE ASSETS
0
0
49 194
24 988
1 307 800
1 223 833
FIXED ASSETS
Tangible fixed assets
1 500 235
1 376 760
Land, dwellings, cabins and buildings
1 957 532
1 812 462
Machinery, fixtures, means of transport
3 457 767
3 189 222
TOTAL TANGIBLE FIXED ASSETS
142 868
156 933
1 450 668
1 380 766
FINANCIAL ASSETS
0
1 484
0
0
Investments in subsidiary companies
1 018 852
924 134
Loans to group companies
1 600 878
1 895 579
79 930
98 937
Investments in associated companies
51 132
52 897
23 139
30 275
Other shares/units
20 788
29 955
1 026 278
656 376
Pension funds
88 811
61 956
100 998
65 954
Bonds/other long-term receivables
80 035
2 939
TOTAL FINANCIAL ASSETS
2 860 496
2 967 460
TOTAL FIXED ASSETS
4 311 164
4 348 226
567
2 798
1 230 345
853 026
4 688 112
4 042 248
CURRENT ASSETS
1 328 363
1 318 172
Stock in hand
RECEIVABLES
981 070
1 424 101
0
0
198 835
196 324
1 179 905
1 620 425
95 188
89 857
100 181
215 715
2 703 637
3 244 169
7 469 559
7 303 443
Accounts receivable from customers
458 113
619 272
Accounts receivable from group companies
262 557
1 114 664
Other short-term receivables
139 939
116 283
TOTAL SHORT-TERM RECEIVABLES
860 609
1 850 219
Bonds/Investments in money market securities
19 035
18 219
621 928
0
TOTAL CURRENT ASSETS
1 502 139
1 871 236
TOTAL ASSETS
5 862 497
6 244 450
Bank deposits, cash
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / ANNUAL ACCOUNTS
11
Balance sheet
In NOK 1,000
TINE GROUP
2004
TINE BA
2003
2004
2003
LIABILITIES AND SHAREHOLDERS’ EQUITY
Shareholders’ equity
Subscribed equity:
12 250
12 316
Unit/share capital
12 250
12 316
12 250
12 316
TOTAL SUBSCRIBED EQUITY
12 250
12 316
Accrued equity:
3 833 071
3 523 101
Other equity
3 406 316
3 283 473
3 833 071
3 523 101
TOTAL ACCRUED EQUITY
3 406 316
3 283 473
3 535 417
TOTAL EQUITY
6 514
3 851 835
MINORITY INTERESTS’ SHARE
0
0
3 418 566
3 295 789
LONG-TERM LIABILITIES
Provision for liabilities
184 575
179 607
Pension commitments
28 155
26 869
189 757
49 204
Deferred tax liabilities
0
0
374 332
228 811
28 155
26 869
757 801
840 574
722 197
710 301
TOTAL PROVISION FOR LIABILITIES
OTHER LONG-TERM LIABILITIES
Debts to credit institutions
Other long-term liabilities
535 642
491 154
383 151
459 825
1 293 443
1 331 728
TOTAL OTHER LONG-TERM LIABILITIES
1 105 348
1 170 126
1 667 775
1 560 539
TOTAL LONG-TERM LIABILITIES
1 133 503
1 196 995
Debts to milk producers
484 683
656 633
Debts to group companies
114 777
31 672
CURRENT LIABILITIES
CREDITORS
484 670
656 720
0
0
717 092
526 412
1 201 762
1 183 132
126 820
495 345
11 025
24 527
325 436
311 178
0
0
Creditors
282 120
373 311
TOTAL CREDITORS
881 580
1 061 616
34 697
440 976
8 786
12 761
Debts to credit institutions
Tax payable
Tax withholdings, duties, holiday allowances, etc
Other current liabilities to companies in same group
34 499
43 180
236 562
130 660
284 906
193 305
Other current liabilities
114 304
62 473
748 187
1 024 355
TOTAL OTHER CURRENT LIABILITIES
428 848
690 050
1 949 949
2 207 487
TOTAL CURRENT LIABILITIES
1 310 428
1 751 666
7 469 559
7 303 443
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
5 862 497
6 244 450
Oslo, 23 February 2005
12 –
Jostein Frøyland
Chairman of the Board
Marit Bårnes
Svein E. Bekken
Tor Inge Eidesen
Steinar Grimsrud
Terje Falstad
Ola K. Feste
Eva Kaldahl
Wenche Stuvland Knygh
Kjell Mjaatvedt
Fredmund Sandvik
Jan Ove Tryggestad
Egil Torland
Hanne Refsholt
Acting CEO
ANNUAL ACCOUNTS / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
To the annual general meeting of TINE BA
AUDITORÕS REPORT FOR 2004
We have audited the annual accounts of TINE BA for the 2004 financial year, which show a surplus of NOK
214,374,000 for the parent company and a surplus of NOK 157,503,000 for the group. We have also audited the
information in the annual report about the annual accounts, the going concern assumption, and the proposed
allocation of the surplus. The annual accounts comprise the profit and loss account, balance sheet, cash flow
statement and notes to the consolidated accounts. The annual accounts and annual report were submitted by the
companyÕs board of directors and CEO. Our job is to express an opinion about the annual accounts and other
matters pursuant to the provisions of the Auditors Act.
We conducted our audit in accordance with the Auditors Act and auditing standards generally accepted in
Norway. Auditing standards generally accepted in Norway require that we plan and perform the audit to obtain
reasonable assurance about whether the annual accounts are free of material misstatement. An audit includes
examining selected portions of the material that supports the information in the annual accounts, an assessment
of the accounting principles used and significant accounting estimates, as well as an assessment of the content
and presentation of the annual accounts. To the extent required by auditing standards generally accepted in
Norway, an audit also includes a review of the management of the companyÕs financial affairs and its accounting
and internal control systems. We believe that our audit provides a proper basis for our opinion.
Opinion
We believe that
¥ the annual accounts have been submitted in accordance with the law and regulations and express the groupÕs
financial position as per 31st December 2004 and the result and cash flow in the financial year in accordance
with accounting principles generally accepted in Norway
¥ the management has fulfilled its duty to ensure the proper and well-arranged recording and documentation of
the accounting information in accordance with the law and accounting practices generally accepted in Norway
¥ the information in the annual report about the annual accounts, the going concern assumption and the proposal
for the allocation of the surplus are consistent with the annual accounts and complies with the law and
regulations.
Oslo, 23rd February 2005
Deloitte
Terje Nagell
State Authorised Public Accountant
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / ANNUAL ACCOUNTS –
13
Report on activities in the TINE Group
TINE is the largest Norwegian food company with a turnover
dealings so that we earn the trust of consumers. We
of more the NOK 14 billion. TINE is and wants to remain an
also have to satisfy all the requirements and regulations
important contributor to society. This is stressed in our vision:
stipulated by the authorities. As the major market
player we are, we know that everything we do is closely
scrutinised and that we therefore always have to be
"We will be Norway’s most important contributor to
prepared to document and provide an insight into our
value creation"
work.
WE SHALL:
• create social, environmental and financial value
• prove ourselves worthy of trust in all parts of the value chain
• be innovative and offer an abundance of food products and meals
• promote the enjoyment of food and develop Norwegian food culture
Main lines
As a cooperative organisation TINE’s primary goal is
to provide its owners with the best possible price for
their raw materials and an organisation with the power
to do this in the future as well. 2004 was characterised
by difficult framework conditions. That fact that we
14 –
TINE competes in a consumer market that largely
have managed to pay a milk price to the farmer that
features Norwegian players, though major international
has on the whole been satisfactory, is mainly due to
companies are seeking entry into the Norwegian market.
strict controls regarding the utilisation of raw materials
A political decision has been made that there will be
and production capacities, as well as controlling costs
competition in the dairy sector, both in the primary
and good sales.
chain and the market. This is a reality that TINE acts
We know that sales results are critical to future success.
in accordance with. TINE’s maxim that we should be
We must create growth through new launches and
judged by how we serve the consumer is therefore
innovations. At the same time efficiency has to be
becoming increasingly important. We must deliver the
increased in all parts of the chain and costs have to
quality we promise and remain honest in our everyday
be strictly controlled.
REPORT ON ACTIVITIES / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
TINE and the market
As a major food player with a complete value chain,
TINE concentrates on both large volume products and
NEW LAUNCHES 2004
SMÅFOLK/BABY FOOD:
SMÅFOLK dinner jar, 4 and 8 months
SMÅFOLK on the go, 8 months
more niche oriented products. We want our range of
SMÅFOLK porridges, 8 and 12 months
products to reflect the diversity of the Norwegian people.
SMÅFOLK ready-to-use infant formula, 250 ml carton
TINE’s overall range has therefore adapted to the recent
YOGHURT:
rapid changes we have seen in society. TINE has a total
TINE Yoghurt winter fresh
of approximately 490 products for the grocery trade.
Of these more than 40 are registered brands in the dairy
product and juice segments.
TINE Yoghurt taste of summer
TINE Yoghurt mild natural
LITAGO Yoghurt, 8 pack, promotion
CHEESE/COOKING:
Sans Cottage Cheese with strawberries
The market for dairy products is relatively stable. We
Sans Cottage Cheese with cherries
mainly deliver everyday products that are not noticeably
Sans Kesam vanilla
affected by fluctuations in the economy. The cost of food
accounts for a steadily smaller percentage of people’s
Sans Yoghurt 4 pack, 0.1%, (apple/pear, grape/berry)
Sans Yoghurt 2 cell pack, 0.1%, (natural and cranberry)
Sans Yoghurt Gable Top 1 l 0.1%, (vanilla and citrus)
total budgets. At the same time we know that
Pizza cheese 80 g
Norwegian consumers are becoming increasingly aware
Pasta cheese 80 g
of the products they choose. The adoption of international
eating habits and an intense focus on nutritional content
contributed to TINE’s launch of new product lines in
Ridder 130 g, slices
Port Salut 130 g, slices
Nøkkel ost cheese 150 g, slices
BIOLA:
2004. Examples of these include:
Biola small bottles
• Sans: a lifestyle concept that consists of various
BEVERAGES:
products with reduced sugar, fat and carbohydrates.
• TineMelk Smak: a new line of flavoured milk that
combines health and taste. The milk contains only
0.7% fat, less than 1% added sugar and extra
vitamin D and comes in three different flavours:
•
Eplejuice Sydtyrol (apple juice)
Mana (rosehip/orange, blueberry)
TineMelk Smak (flavoured milk: coffee, raspberry, chocolate)
LARGE HOUSEHOLDS:
Salad cheese cubes, Jarlsberg
Cream brown whey cheese, hotel board
raspberry, chocolate and coffee.
LITAGO BIB
Mana: a line of juices that satisfy the consumers’
Peach ice tea BIB
need for antioxidants.
TINE Gudbrandsdal Cheese, round, 2X2.5 kg
ECOLOGICAL PRODUCTS Production of ecological milk
also increased in 2004. A total of around 24.3 million
TINE DAIRIES’ INCOME
litres of ecological milk was delivered to TINE. This is an
increase of 17.3% compared with 2003. TINE currently
has four ecological products on the market. TINE
Skimmed Milk Ecological, TINE Yoghurt Ecological, TINE
Low-Fat Sour Cream Ecological and Norvegia Ecological.
With the exception of TINE Low-Fat Sour Cream Ecological,
sales of ecological products have not developed as we
hoped. This resulted in only 25% of the ecological milk
being used for ecological products in total in 2004.
Low-fat soured cream experienced a very good development in sales and increased by 28% compared with
2003, while the other ecological products experienced
stagnation or slight decreases in sales. Around 2% of
skimmed milk is now ecological while the corresponding
proportion for ecological low-fat sour milk is 7%.
Milk
34%
Cream/soured cream/
yoghurt
12%
Juice/ice tea/water
White cheese
5%
30%
Butter
2%
In order to improve sales the labelling on TINE Yoghurt
Brown cheese
5%
Ecological was greatly improved in 2004, similarly the
Porridges/desserts
3%
packaging of Norvegia Ecological was changed to suit
Powder products/Feed
3%
the market better. During the course of the year a lot of
Margarine/ready-to-eat
food/imported cheese
5%
work was also done to improve TINE’s level of service
Other income
1%
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / REPORT ON ACTIVITIES –
15
and increase the range of ecological products. This has
SEAFOOD TINE started its seafood endeavours in 2003;
resulted in, among other things, Kefir being completely
and continued to work and focus on it in 2004. We
converted into an ecological product as of February
believe that exploiting our expertise in brand building,
2005.
product development and food production will generate
potential for expansion in the long-term. In addition,
In shops where there is a conscious focus on ecological
TINE has good logistics and distribution systems.
products we have seen that it is not unusual for ecological
TINE is focusing on three areas within seafood:
products to achieve a market share of between 5 and
• marine ingredients: marine oils such as Omega 3 and
10%. Unfortunately the number of shops that offer our
marine protein as useful ingredients for other players
ecological products has fallen. Therefore in the autumn
in the food industry
• super fresh products: Marian – fresh fish loins
• innovative products: blue/green products – Salma
TINE worked to establish separate agreements ("whole
chain agreements") with two of the chains to improve
– cured salmon
the marketing of the ecological products in the shops.
We have great expectations concerning the launch of
RESEARCH AND INNOVATION TINE’s products,
Ecological Kefir in February 2005.
processing processes and organisation require more
SALES Overall TINE experienced good sales in 2004.
We are pleased that for the first time since 1992 we
have seen an increase in sales of milk. There are several
"Overall TINE
onal importance of milk and dairy products. The milk
product group has been expanded with TineMelk Smak,
which has gained a good foothold in the market. Sales
volumes for cheese, cream, soured cream were up on
last year, while yoghurt sales experienced a slight fall.
by the markets are increasing at the same time as we
good sales in
organisation and industry. This is why we carry out
2004.
Please also refer to the tables at the end of the annual
report.
research in several key areas: raw materials, product
quality, feed and animal health, production efficiency,
new products and nutrition. We work with external
pleased that
Research Institute and the Norwegian University of
institutes such as “Matalliansen” (the Norwegian Food
Life Sciences), the Norwegian Foundation for Scientific
for the first
products.
have our own ambitions to be competitive, both as an
We are
Consumers want a simpler life and TINE has noticed this
through significantly increased sales of processed
concerning quality, efficiency and innovation stipulated
experienced
reasons for this including the fact that an increasing
number of research reports are documenting the nutriti-
and more research based knowledge. The requirements
time since
and Industrial Research, the Norwegian School of
Veterinary Science, the University of Oslo, and others
both at home and abroad. We have also developed
1992 we have
collaborations with research circles in new areas such as
seen an
which the partnership agreement with the Norwegian
increase in
sales of milk."
MARKET SHARES IN VOLUME (grocery stores) – 2003/2004
logistics, brand building and cooperative organisation, of
School of Management under the auspices of the
Centre for Cooperative Studies is an example.
ONGOING PROJECTS:
• new products with positive nutritional properties,
Biola and Mana
• various nutrition projects
• marine products
• safe and efficient production
• financial key figures for meat and dairy production
• cost-effective buildings for cattle
• bedding for goats
100
80
60
40
International activities
Brown
cheese
99.6
99.5
93.3
93.5
Yoghurt
17.9
15.8
83.9
83.4
Milk
77.8
74.8
95.1
93.8
20
0
2003
16 –
(Hard) Processed Butter
White
cheese
cheese
2004
REPORT ON ACTIVITIES / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
TINE’s international activities are expanding. Exports
of the Jarlsberg® brand continue to dominate, though
sales of Ridder®, Snøfrisk and Gudbrandsdal Cheese
were also positive in 2004.
TINE exported a total of 17,456 tons of cheese in 2004.
The USA is still TINE’s largest market. We export
12,000 tons of
Jarlsberg®
from Norway and this is
workforces significantly, while there are some areas
where resource savings still has to be realised. The
supplemented with 4,000 tons of cheese, which is
work continues and future solutions will be assessed in
produced at the plant in Ohio. This is so-called "block
order to optimise the use of resources.
cheese" which goes to the large households market in
the USA.
Common logistics management
Norway has a bilateral cheese agreement with the EU
The first operational year in which Movex v.12 was
and Europe is still a focus area. In 2004, TINE established
implemented throughout TINE confirmed that a totally
a subsidiary in the UK, TINE UK Ltd. Test production of
integrated business system provides the necessary
Jarlsberg®
opportunities to improve control and management.
in Ireland was carried out all year and the
start of actual production is expected at the end of
Sound work has been done and important elements of
2005, with deliveries to the European market.
operations such as premises in Movex and building up
the necessary skills at several production plants have
been established. The premise concerning correct and
An efficient organisation
timely stocks of finished products has been one area of
One of the goals which the formation of the group in
focus, though there is need for further improvements
2002 was designed to achieve was to increase the
regarding this point. Better prognoses that provide a
efficiency of the organisation by sharing IT network,
basis for need driven product supply and production
common work processes and new ICT tools.
management are progressing well and are in the
A project was set up to realise these benefits, "Benefit
process of providing results in the form of more correct
Realisation New Management Tools", also known as
stocks. Throughout the year we have achieved a
the Optima Project. The project covers the following
controlled, good utilisation of dairy raw products and
administrative tasks:
the interaction with other players has gone as planned.
The cream balance is under increasing pressure during
Sales/order intake
the autumn months and will receive special attention in
• Logistics/production/purchasing
• Economy/accounts
• Payroll/personnel
• Information and communication technology
the future.
TINE’s ability to deliver to the customers has always
been good and in line with plans and agreements.
However, we were, naturally enough, affected by the
The project will be carried out in four phases:
strike at a number of wholesale depots during April/
1. Analyse and describe current work processes and
May and during the autumn some products experienced
use of resources
2. Assess alternative solutions and optimum use of
resources
3. Propose specific solutions with measures to achieve
new goals
4. Implement measures
deviations of an extent that affected the overall results.
The ability of fresh products distribution to deliver is good
as far as the main range is concerned, but there have
been some problems with respect to special products.
During the year we received the first electronic orders
in fresh products distributed activities via a collaborative
project with two supermarket chains.
The first two phases were completed in 2004. The project
In line with developments elsewhere regarding the
will propose specific solutions including measures in
division of work between the industry and grocery
January 2005 and, once these have been considered
trade, we receive at times indications that some of
by the organisation, decisions will be arrived at and
our customers want to increase the volumes in their
measures carried out successively in 2005.
distribution systems. We have initiated discussions with
The analysis shows that some of the expected benefits
customers in order to work together on the development
from the formation of the group have been realised,
of solutions that will preferably be profitable for both
though there remain some areas which are expected to
parties.
be realised in the future. A decrease in the workforce
During 2005 we shall intensify the work on common
was expected in connection with the formation of the
planning for raw materials, purchasing packaging,
group within the areas economy/accounts, logistics/
contribution factors and production management in
order intake, services for members, payroll/personnel
order to achieve the best possible overall capacity and
and ICT. Some of the areas are now seeing the effects
resource utilisation, while at the same time maintaining
of the formation of the group and have reduced their
the agreed delivery quality for the market.
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / REPORT ON ACTIVITIES –
17
The Dairy Companies
Plants as per 31.12.04
TINE Meieriet Øst BA (TMØ)
Postboks 113 Kalbakken,
0902 Oslo
Office address: Bedriftsvn. 7
Tel: (+47) 22 89 90 00
Fax: (+47) 22 89 90 05
Email: [email protected]
Managing Director: Stein Øiom
Chairman of the Board:
Marit Bårnes
1. TMØ Dovre
Production: soft cheese
with edible rind
2. TMØ Folldal
Production: brown cheese
3. TMØ Fosheim
Production: liquid milk
4. TMØ Frya
Production: liquid milk, cell
pack products, fresh cheese
3
9
5
6. TMØ Lom & Skjåk
Production: brown cheese
13. TMØ Odal
7. TMØ Sem
14. TMØ Sarpsborg
(incl. all joint ventures)
7
Delivery:
Employees:
1,562
TINE Meieriet Sør BA (TMS)
Postboks 8053 Postterminalen,
4068 Stavanger
Office address: Grannesletta
Tel: (+47) 51 64 62 00
Fax: (+47) 51 64 62 15
Managing Director:
Trond Smeby
Tor Inge Eidesen
1. TMS Haugesund
Production: liquid milk,
cream, eco-milk
2. TMS Sola
cream, flavoured milk
3. TMS Voll
Production: Norvegia,
Jarlsberg, butter, soft cheese
spread, whey powder
4. TMS Kleppe
Production: Brelett, Omega,
Brelett cover packaging,
butter, liquid Bremykt, butter
and rape oil for Arla
Key figures
11
1
2
3 4
65 7
10
9
Active producers:
3 258
8
Delivery:
290.7 mill.l.
Employees:
845
TINE Meieriet Vest BA (TMV)
2
3
Key figures
4
5
7
Active producers:
3 968
8
Delivery:
Employees:
(777 incl. temps)
18 –
252.5 mill.l.
745
7. TMS Vikeså
Production: cheddar,
mozzarella, brown cheese
8. TMS Kristiansand
cream, yoghurt, soured
cream, soured cream
dressing
9. TMS Setesdal
cream, soured cream
porridge, Kviteseid butter,
Setesdal butter, Ryfylkegome, Brimi butter
6. TMS Nærbø
Production: Jarlsberg,
Swiss cheese, Norvegia,
11. TMS Haukeli
Production: frozen curd,
Chevre
“Said at a regional
meeting:
‘TINE gives
the best advice
in the country,
but they have
to be better at
telling people
that.’"
portion packing for white
cheese
4. TMV Vik
Production: Gamalost, Mylse
5. TMV Voss
Dravle
2. TMV Ørsta
Production: edams, wellmatured edams, Norvegia
F45, Norvegia M10, extra
low-fat Norvegia, Saint Paulin,
Nordbo, Snøfrisk cream
cheese, Snøfrisk white
cheese, cream cheese,
brown cheese, Søst, Casein,
Namdalsgome, Mølsgome,
soured cream porridge
6. TMV Bergen
sweet and curdled products,
cream, soured cream,
yoghurt, soured cream cell
packs, Crème Fraiche, juice
3. TMV Byrkjelo
white cheese, brown cheese,
8. TMV Sand
(Will be closed in June 2005)
Production: nøkkel ost
cheese
THE DAIRY COMPANIES / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
"Dairy
operations in
TMØ have been
stable and
good for most
of the dairies,
in line with
budgets and
plans, and with
an increase
in total
production."
Kalvegodt, Grisegodt, whey
protein powder, demineralised whey powder, cream
mix, butter oil
10. TMS Porsgrunn
cream, eco-milk
1. TMV Ålesund
cream, Piano desserts,
creams and sauces, UHT
long life beverages, Mana
1
12. TMØ Indre Østfold
5. TMS Central Depot,
Klepp St.
Production: grated, sliced
and diced, packing, storage
Postboks 6030 Postterminalen,
5892 Bergen
Office address: Minde allé 10
Tel: (+47) 55 27 48 00
Fax: (+47) 55 27 09 53
Managing Director:
Leif Arne Berge
Ola K. Feste
6
11. TMØ Oslo
yoghurt, juice
357.8 mill.l.
Active producers:
13
11
12
14
10. TMØ Tretten
Production: processed
cheese, porridge, desserts,
sauces, fresh pasta, baby
food
4 322
Key figures
4
10
9. TMØ Trysil
Production: soft, sharp
cheese, cottage cheese
5. TMØ Brumunddal
Production: long life liquid
milk products, special
products, dried milk
8
2
1
6
8. TMØ Tolga
Production: ice cream
concentrate, casein, butter
7. TMV Hardanger
Production: cream cheese,
whipped cream cheese,
Piano cheesecake, KOS
desserts, cream cheese base
"The sales
team has done
good work
and we have
a sales
organisation
that functions
particularly
well in relation
to TINE
overall."
TINE Midt-Norge BA (TMiN)
Landbrukssenteret Tunga,
7005 Trondheim
Office address: Bromstadvn. 68
Tel: (+47) 73 90 37 00
Fax: (+47) 73 90 37 01
Managing Director:
Stein Aasgaard
Fredmund Sandvik
1. TMiN Kolvereid
eco-cheese, Jarlsberg
2. LFD Depot Namsos
Distribution
3. TMiN Verdal
Production: Jarlsberg, CWC,
Gräddost, WPC
4. TMiN Ørland
Production: Norvegia
1
2
4
3
7
10
11
5. TMiN Selbu
Production: Normanna,
Norzola, Royal Blue, Selbu
Blå
6
8
5
9
12
Key figures
Active producers:
4 926
Delivery:
426,1 mill.l.
Employees:
911
TINE Meieriet Nord BA (TMN)
Skogvn. 18, 9480 Harstad
Tel: (+47) 77 05 80 00
Fax: (+47) 77 05 80 90
Managing Director:
Clement Roaldstveit
Fredmund Sandvik
1
6. TMiN Tunga
Production: sweet/curdled
milk, soured cream, cream,
Go’morgen, Biola, yoghurt,
drinking yoghurt, juice,
orders office, distribution
2
1. TMN Tana
Production: butter, liquid
milk, Kesam, soured cream
cell packs, Melkeringe,
curdled products, distribution
4
5
3
6
2. TMN Alta
distribution
7
8
7. TMiN Heimdal
Production: grated, sliced
and diced cheese, packing,
storage
8. TMiN Meldal
Production: Bremykt,
butter, softer butter
9. TMiN Berkåk
Production: dried milk,
dried buttermilk
10. TMiN Høgset
Production: sweet/curdled
milk, cream, Cultura,
orders office, distribution
11. TMiN Elnesvågen
Production: Jarlsberg,
brown cheese, clove
cheese
12. TMiN Tresfjord
Production: Ridder, Port
Salut
6. TMN Bodø
distribution
7. TMN Sandnessjøen
butter, dried milk, distribution
8. TMN Sømna
Production: white cheese
3. TMN Storsteinnes
Production: brown cheese,
white goats’ cheese,
casein, Balsfjord cheese
Key figures
Active producers:
2 048
Delivery:
Employees:
163.5 mill.l.
352
4. TINE-Terminalen Tromsø
Distribution
5. TMN Harstad
juice, soured cream, distribution
"We are
working in an
increasingly
borderless
TINE.
Our region
wants to
contribute to a
holistic logistics
function to
achieve the
best possible
profitability."
"Northern
Norway covers
60% of the
country lengthwise but only
10% of the
market.
Consumers in
all parts of
Northern
Norway want
the same
good provision
as elsewhere in
the country."
TINE terms
• The TINE Group is used to denote the entire group
• TINE BA is used to denote the parent company and the remitter’s name for our products
• TINE is used in informal contexts to denote the group and/or the parent company
• Dairy companies is used to denote TINE Meieriet Nord, TINE Midt-Norge, TINE Meieriet Vest, TINE
Meieriet Sør and TINE Meieriet Øst. E.g.: TINE Meieriet Nord, Head Office, Harstad
• Plant is used to denote the dairy companies’ production plant. E.g.: TINE Meieriet Sør, Sola
• Subsidiaries is used to denote the wholly-owned companies, with the exception of the dairy companies.
• Part-owned companies is used to denote subsidiaries with minor shareholdings
• The TINE Dairies is used to denote TINE BA and the dairy companies
• The dairy co-operative is used to denote the TINE Dairies and TINE’s milk producers
• The dairy industry is used to denote overall dairy activities in Norway, i.e. TINE and similar concerns
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / THE DAIRY COMPANIES –
19
FellesJuice AS
Postboks 113 Kalbakken, 0902 Oslo
Office address: Bedriftsvn. 7
Tel: (+47) 22 89 90 00, Fax: (+47) 22 89 91 73
Managing Director: Stein Øiom
FellesJuice AS was founded on 01.01.2000, although
juice has been produced and sold in dairies since
1969. In 2004, FellesJuice’s turnover amounted to
around NOK 600 million. The company employed
3.2 people in 2004.
The following new products were launched by
FellesJuice in 2004:
– Meierienes juice, season’s Sydtyrol Eplejuice
(apple juice) 1 litre
– Mana: grape, blueberry, chokeberry and cherry
1 litre and 1/3 litre
– Mana: rosehip, orange, carrot 1 litre and 1/3 litre
– Ice tea 10 litre bag-in-box, peach flavour
– Screw top on Meierienes Juice 1 litre
– New design and TINE as remitter for all
– Meierienes juice and ice tea varieties
FellesJuice has strengthened its market position in
2004 and has the following market shares:
Volume shares in 2003: 34% in 2004: 36.7%
Value shares in 2003: 48% in 2004 51.6%
Meierienes juice has a recognition factor of 93%
(Source: TNS-Gallup).
Chilled juice is increasing at the expense of long life
juice. Consumers want quality juice that tastes good
and are willing to pay extra for it.
MAIN CHALLENGES FOR 2005:
• Developing the work on quality further
• Strengthening/consolidating our position in chilled
juice
• Ensuring better supplies of raw materials
• Better protection of recipes with raw materials
• Developing more juices in the "not from concentrate"
category
• Further improving the level of service
• Developing Mana juice with antioxidants further
20 –
SUBSIDIARIES / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
Ostecompagniet AS
Postboks 6678 Etterstad, 0609 Oslo
Office address: Brynsvn. 12
Tel: (+47) 22 93 88 00, Fax: (+47) 22 36 75 99
Managing Director: Susanne Almestad
Ostecompagniet AS was founded in February 2003
and its first fully operational year was 2004.
Ostecompagniet AS’ business concept is:
1) to create profitability for its partners and owners, and
2) develop, sell and market Norwegian and imported
niche cheese products.
Ostecompagniet’s portfolio consists of niche cheeses
from TINE, imported cheeses from France, Italy,
Denmark and the UK, and cheeses from small-scale
Norwegian producers. Ostecompagniet sold approximately NOK 215 million of cheese in 2004.
The company has 13 employees.
The first six months of the year were affected by the
fact that the company was still in a start-up phase.
It has been important to sort out good, appropriate
routines within logistics, accounting, product quality
and sales in order to attain the best overview and flow
of goods out to the customers. At the same time it has
also been important to focus the attention of the
shops on niche cheeses with planned campaigns and
activities throughout the year.
12 new imported cheeses were launched in 2004.
In the autumn of 2004 partnership agreements were
signed with Myrdal Gard and Eiker Gardsysteri, both
small-scale producers. This resulted in the launch of
9 products in the small-scale cheeses category to the
grocery trade in October 2004.
2005 will see us launch more cheeses from small-scale
producers, which will result in this category becoming
even more visible in the shops. Ostecompagniet is
expecting the niche cheeses segment to grow strongly
in 2005 as well.
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / SUBSIDIARIES –
21
Small People AS
Postboks 25, 0051 Oslo
Office address: Christian Frederiks plass 6
Tel: (+47) 22 93 88 00
Managing Director: Fredrik Hannestad
Although Small People AS was founded on 1 January
1996, the production and sale of its products began
in 1999. The company sells baby food in jars, baby
cereals and ready-to-use infant formula. Small People
AS employed 3.5 people in 2004 and purchases its
administrative services from TINE BA. Its products are
produced and sold by TINE, and distributed via wholesalers and TINE Dairies. The company’s business office
is in Oslo.
Small People AS sells its products under the brand
name SMÅFOLK (SMALL PEOPLE), and holds a strong
number two position in baby food in grocery shops.
Sales from shops increased in 2004 and SMÅFOLK has
contributed to growth in the segment. The company is
still in an initial development phase and has an intense
focus on product development. SMÅFOLK was not
sold via other channels in 2004.
SMÅFOLK is marketed as "Healthy Norwegian food
for small tummies". In terms of price, SMÅFOLK is on
a par with its competitors, and is perceived by its
customers as healthy, Norwegian produced baby food
that tastes as good as homemade. Market surveys
show that SMÅFOLK is seen as welcome competition
in a market that has long been dominated by one
supplier.
We regard the working environment as good. There
were no reports of injuries or accidents in the workplace. One of the company’s goals is to be a workplace
in which women and men are fully equal.
The company has an embedded policy that aims to
ensure that nobody is treated differently due to their
gender. 3 of the company’s 4 employees are women.
The sector to which the company belongs produces
no pollution or discharges that might damage the
external environment.
22 –
Diplom-Is AS
Postboks 23, 1483 SKYTTA
Office address: Brennavn. 10
Tel: (+47) 02001, Fax: (+47) 67 06 66 01
Managing Director: Harald Knutzen
Diplom-Is processes agricultural products through the
production and marketing of ice cream and other frozen
products. The company supplies a full range of ice creams
and frozen desserts. Diplom-Is is one of Norwegian bestliked and most recognised trademarks and has several
strong brands in its portfolio. As well as producing its own
brands the company is licensed to produce ice cream
products for Mövenpick for sale in Norway. The company
also distributes products for Mars Ice Cream in Scandinavia.
Diplom-Is has had a production and distribution partnership with Nestlé in Norway for a long time. Now that
Nestlé has decided to close down its ice cream business
in Norway as of 2005, Diplom-Is has signed an agreement with Nestlé concerning the continued marketing of
some of Nestlé’s products.
The 2004 ice cream year was relatively good before and
after summer, while the midsummer season was poorer
than normal. Despite this Diplom-Is managed to maintain
its total market share of approximately 52% in Norway.
The market in Denmark fell considerably during 2004,
though Diplom-Is increased its market share. The market
in Sweden was stagnant and the Swedish company lost
some market share.
The company has four production sites: Brevik, Rakkestad,
2005. The group is also losing money in Denmark. New
Gjelleråsen and Gothenburg. All of the factories were
product launches and a stronger focus on profitability is
BRC certified in 2004. HAACP analyses were also carried
expected to boost the Danish results in 2005. Diplom-Is
out. The factories in Norway are also 9001:2000 certified.
achieved a surplus in Norway, even though the result
Diplom-Is has a Scandinavian strategy and now has its
was poorer than expected. The market in Norway was
own companies in both Sweden and Denmark. The latter
characterised by pressure on margins and strong com-
is a sales company, while the company in Sweden also
petition. The work on rationalisation and restructuring
produces ice cream.
will be intensified in Norway in order to meet the goal
From a financial point of view, 2004 saw a lot of restruc-
of increased profitability.
turing in Sweden. After increasing its holding in Triumf
Overall the consolidated accounts show a deficit for
Glass & Diplom-Is AB to 87.5% as per 1st June, the com-
2004, which is unsatisfactory. Through the measures
pany spent the autumn focusing on coordinating and
that have been initiated the group aims to show a
restructuring operations. The Swedish subsidiary experi-
surplus for 2005.
enced a significant deficit in 2004, and 2005 will also be
characterised by restructuring. A new management team
THE MAIN CHALLENGE FOR 2005 will be to significantly
is in place in the Swedish company and an improvement
increase the group’s profitability. There will continue to
in its results is expected in 2005. Systematic restructuring
be a strong focus on total quality and innovation in
measures have been initiated and will be followed up in
accordance with Diplom-Is’ brand strategy.
23
Maritex AS
Havnegata 17, 8600 Sortland
Tel: (+47) 76 06 11 00, Fax: (+47) 47 76 11 06 10
Managing Director: Viktor Johnsen
Maritex AS has been a wholly owned subsidiary of the
TINE Group since October 2003. The company’s main
activity is the production of high quality marine oils
from cod liver. In 2004, Maritex initiated wide reaching
projects to develop biotechnical ingredients based on
the raw materials in Lofoten and Vesterålen. The
company has 18 employees as per 31.12.2004.
The company’s 2004 result was in line with its budget.
The turnover was lower than budgeted as the sale of
some biotechnical products has taken longer to take
off than expected. Maritex is working closely with its
customers and expects a growth in turnover for selected products in 2005.
In 2004 Maritex AS completed a major expansion of its
refinery for the high quality refining of Omega 3 oils.
Maritex wants to switch from being a bulk producer of
marine oils to being a producer of specialised highly
refined oils for the health food and "functional food"
segments. This will present new market opportunities.
Maritex expects the value created by our marine oils
to increase significantly in 2005.
Maritex has worked closely with several major customers
during 2004 on the development and launch of new
products for 2005. Maritex’s chief focus in 2004 was
on establishing customer contacts and the selection
of products, both of which were successful.
24 –
Norseland Inc.
1260 East Main Street
Stamford, CT 06902 USA
Tel: +1 203-324-5620, Fax: +1 203-325-3189
President & CEO: David M. Brohel
Founded in 1978, Norseland Inc. is a wholly owned
subsidiary of TINE BA. Norseland Inc. is responsible for
the sale, marketing and distribution of TINE’s cheeses
in the USA. Norseland Inc. also has a regional office in
Canada that markets TINE BA’s products in Canada.
Its main product, Jarlsberg®, has been distributed in
the USA since 1965 and in Canada since 1963. As well
as TINE’s products, Norseland Inc. represents other
high quality European cheese brands. Norseland’s
main products are Norwegian-produced Jarlsberg®,
Jarlsberg® Lite, Ridder®, Snøfrisk®, Ski-Queen®
(brown cheese) and Frozen Curd. In October 2000, the
licensed production of Jarlsberg® commenced in Ohio,
USA. The cheese has been on sale in the USA together
with Jarlsberg® imported from Norway ever since. In
2004 sales reached record heights with total sales of
10,983 tons of Jarlsberg®. This is an increase of 21%.
The increase was due to our cooperation with supermarket chains and to increasing the distribution of
Jarlsberg® to cover 95% of the 32,000 largest supermarkets. American produced Jarlsberg® accounted for
approximately 36% of total sales of Jarlsberg® in 2004.
The USA regulates cheese imports via quotas set by
the American Department of Agriculture and in 2004
Norseland’s quota amounted to 6,900 tons.
It was also a record year for the sale of Norwegian
cheese to Canada. Sales amounted to a total of
1,200 tons.
29 people work for Norseland Inc. in the USA. Six
regional sales managers ensure national distribution
via a network of brokers in grocery stores, large
households and owner stores, as well as other
distributors. Norseland Inc. employs two people in
its regional office in Montreal, Canada.
MAIN CHALLENGES FOR 2005: The goal for 2005 will
be to increase sales to 12 000 tons.
25
TINE’s corporate management as per 19.02.05
Bjørg Bruset
Group Director
• Communication
• Organisation
Hårek Skotnes
Group Director
• Logistics • ICT
• Purchasing
Hanne Refsholt
Acting CEO
Per Magnus Mæhle
Corporate Staff, Director
Kjetil Thu
Group Director
• Economy/Finance
• TINE Raw Materials
Gunnar Hovland
Group Director
• Market
• Sales
(domestic/export)
Trond Smeby
Managing Director
Deputy for Acting CEO
TINE Meieriet Sør
Group Director
• Research and development
Stein Aasgaard
Managing Director
TINE Midt-Norge
Group Director
• Personnel and Skills
Leif Arne Berge
Managing Director
TINE Meieriet Vest
Group Director
Clement Roaldstveit
Managing Director
TINE Meieriet Nord
Group Director
Stein Øiom
Managing Director
TINE Meieriet Øst
Group Director
26 –
CORPORATE MANAGEMENT / THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004
Statistics
7. Total exports
1. Production of TINE products (tons)
2003
2004
White cheese
62 358
64 460
White cheese
Brown cheese/Soft cheese spread
2003
2004
15 888
15 898
13 069
11 579
CWC
1 579
1 071
Processed cheese
1 489
1 494
Butter
970
607
Butter
8 653
9 400
Casein/milk powder
805
661
Brown cheese
499
480
2. Domestic sales, liquid products (TINE)
(in 1,000 litres)
Growth
Processed cheese
9
7
Other dairy products
3
2
19 753
18 726
Total
2003
2004
2003-2004
467 946
468 609
0.1 %
TINE Cream
25 043
25 362
-1.3 %
TINE Soured cream
13 296
13 659
-2.7 %
8. Milk utilisation in TINE Dairies
TINE Yoghurt
31 542
31 114
-1.4 %
(The annual sales figures for solid products form the basis for the segment
TINE Milk (all types)
distribution)
3. Domestic sales, solid products (TINE)
(in tons)
Growth
2003
2004
White cheese, total
44 184
45 285
Brown cheese, total
10 426
1 319
Processed cheese, total
Butter
Desserts
TINE Yoghurt, litre
TINE Cream/soured cream, litre
2003
2004
2005
mill.l.
mill.l.
mill.l.
2003-2004
Turnover domestic
10 447
0.2 %
Liquid milk (TINE)
568
556
546
540
533
1 239
-6.1 %
Deliveries industry/players
121
123
124
122
130
20
21
21
17
17
480
505
500
507
505
Brown cheese (TINE)/casein
15
10
10
10
10
Edible fats
15
15
15
15
15
UHT products
22
22
22
23
23
Special powder products/casein
27
23
17
23
23
Skimmed milk powder (TINE)
35
40
35
41
41
1
1
1
0
0
1.304
1.316
1.291
1.298
1.297
White cheese
178
160
187
185
180
Brown cheese
3
3
3
3
3
30
5
5
5
5
7 179
12 174
4.3 %
Cream mix
3.4 %
White cheese (TINE)
4. Per capita consumption (TINE-products)
TINE Milk, litre
2002
mill.l.
2.5 %
6 886
11 770
2001
mill.l.
2000
2001
2002
2003
2004
114.71
110.18
106.52
102.33
101.77
6.26
6.40
6.81
6.90
6.76
Returns
Total domestic
8.24
8.30
8.39
8.38
8.47
12.25
12.27
12.30
12.27
12.39
1.73
1.53
1.50
1.49
1.55
Cheese (brown, white, imported
and processed cheese), kg
Butter, kg
Turnover exports
Special powder products/casein
5. Cheese exports per country (tons)
Total exports
211
168
195
193
188
Year
2003
2004
Total
1.515
1.484
1.486
1.491
1.485
Japan
5 496
4 170
Milk deliveries (TINE Dairies)
1.499
1.482
1.481
1.470
1.464
USA
7 181
7 793
Milk from players other than
Australia
1 432
1 788
TINE Dairies
5
2
1
21
21
UK
1 249
1 241
Canada
1 103
1 220
Sweden
602
582
9. Average price paid to producers 1995-2004 (NOK per litre)
Germany
395
460
(Prices are price paid for milk excl. public subsidies)
Denmark
122
120
(Since 01.07.98 the price paid for cows’ and goats’ milk is the same)
Other markets
Total
396
82
17 975
17 456
4.0
3.5
6. Cheese exports per category (tons)
480
Ridder
Frozen Curd
Snøfrisk
Processed cheese
Other cheeses
Total
3.58
1 071
499
3.54
1 579
Brown cheese
3.46
CWC
3.33
3 202
3.32
12 227
4 337
3.19
11 094
Norvegia
3.33
Jarlsberg
3.20
2004
3.20
2003
3.13
3.0
Year
95
96
97
98
99
00
01
02
03
04
2.5
2.0
77
65
269
286
98
103
9
7
13
15
17 975
17 456
1.5
1.0
0.5
0.0
2001: In addition, approx. NOK 0.06 was paid from owner’s equity to the producers in
Fellesmeieriet, Østfoldmeieriet and Drammen Meieri.
2003: As of 2003 the price paid for milk includes sales tax.
2004: Milk producers have paid in NOK 0.04/litre to build up the PU fund. This has not been taken
account of.
THE TINE GROUP – ABBREVIATED ANNUAL REPORT AND ACCOUNTS 2004 / STATISTICS –
27
ISSN. 0801-9790
70°
The
A
rtic C
ircle
20°
10°
65°
60°
TINE BA
Christian Frederiks plass 6
P.O. Box 25
N-0051 OSLO, Norway
Phone: +47 22 93 88 00
www.tine.no

TINE BA_04_E_for_pdf

Transcription

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