#7, January 2019

The Co-Development Company

Insight AAK Magazine

What’s your chocolate moment? pages 4–5Smallholder engagement in Malaysia, pages 8–9The power of storytelling, pages 10–11

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For this issue of Insight, we have talked to Cloetta, a leading confectionery company in the Nordic region and the Netherlands with whom we have formed a partnership for sustainable shea. In an exclusive interview, the company’s Director Sustainability Affairs explains how this initiative fits with Cloetta’s overall goal for corporate responsibility. Bob Norman, Sustainable Palm Oil Manager, reports from the ground in Malaysia where AAK is engaged in a small-holder project called Forever Sabah. The state of Sabah, responsible for 10 percent of global palm oil production, has a target to reach RSPO certification for all its palm produc-tion by 2025. In an article from market intelligence agency Mintel, David Jago talks about the power and importance of storytelling, a marketing phenomenon that has become a key selling proposition for many companies.

A world of opportunitiesWe will also introduce you to the world of opportunities that our solutions give manufacturers who produce chocolate and confectionery with fillings, products that are increasingly preferred by consumers today. In addition, you can read about our new Special Nutrition solutions range, Akonino® ELIP, mimics the golden standard of human milk while meeting new requirements in the upcoming EU regulations for infant formula.

Dear readers,

Great fillings for special chocolate moments 3

What’s your special chocolate moment? 4–5

Partnership for sustainable shea 6–7

Smallholder engagement in Malaysia 8–9

Mintel: The power of storytelling 10–11

Infant formula as a compliment 12

AAK’s new Akonino® ELIP range 13

AAK – The Co-Development Company 14–15

The Co-Development CompanyAs usual, we give you some concrete examples of what it means to be the Co-Development Company. AAK colleagues from different parts of the organization share some of their recent co-development stories and explain how our customer value propositions for health and reduced costs have helped our customers improve and grow their businesses. If you have any comments or questions about the maga-zine or if you have suggestions for future articles, don’t hesitate to talk to your AAK representative or contact us via insight@aak.com.

Enjoy your reading.

Anne Mette OlesenChief Marketing Officer

Contents Insight AAK Magazine

Published by AAK AB (publ.) | www.aak.com

Editorial groupHenning Villadsen, Mariana Mocanu, Christian Robèrt, Anne Brødsgaard, Johan Malm, Laura Schlebes, Caroline Westerik, Bodil Granroth, Catharina Aaröe, Helen Flower, Martin Persson.

Contactinsight@aak.com

Production: JohnJohn Konsult AB Photographs: AAK, Thomas Hergaard, Cloetta, Kim Hess, Charlotte Kropholler, ShutterstockPrint: Exakta

Great fillings for special chocolate momentsConsumer tastes may differ, but indulgence and excitement are always at the heart of confectionery favorites – preferably with a healthier, more natural profile.

Although chocolate means different things to different people there are, according to a recent Euromonitor survey, some points that chocolate lovers tend to agree on. Three of them stand out. First of all, chocolate is moving out of the snack category and becoming more of a premium luxury. Secondly, exciting creative tastes and texture are a must – perhaps with the addition of a few nuts and a healthier, more natural profile. And finally, trans fats are a no-go – with almost a third of consumers often checking the ingredient labels before they buy. “Today, consumers prefer filled chocolate and confec-tionery products”, says Marco Oomen, AAK’s Global Business Director for Chocolate & Confectionery Fats. “While this gives manufacturers a fantastic playground for developing new sensory experiences, it also raises a set of technical challenges that must be solved before a new product can become a true consumer favorite. Very often, the solution to such challenges lies in the filling fats.”

The key to a world of opportunitiesWhen manufacturers produce chocolate and confectionery with fillings, they aim to excite consumers with soft, hard or aerated textures; flavors with controlled release; and

a creamy or cooling sensation in the mouth. All of these characteristics depend on the choice of filling fats, their interaction with the other ingredients in the recipes and the processes used. In other words, production of a perfect filling requires a thorough understanding of all the parameters that influence the taste and quality of the final filled chocolate. This is the key to a world of opportunities – where fat plays an essential role along with the other ingredients used.

Co-development of indulgence and healthAAK supports chocolate and confectionery manufacturers with all these considerations and technical challenges through the co-development of exciting new fillings. “The right AAK filling fat can solve the technical challenges of using nuts, ensuring the perfect indulgent combination of taste, texture and appearance along with the healthier profile that consumers enjoy”, says Marco Oomen. “Several parameters need to be considered when producing fillings for the special chocolate moments that consumers seek. Filled chocolates are not just chocolate anymore. To consumers, they are about enjoying life, special moments and indulgence.”

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What’s your special chocolate moment?Premium chocolate is one of the fastest-growing chocolate segments. Thanks to manufacturers’ commitment to quality and experimentation with flavors, consumers are not only enjoying chocolate to satisfy a craving, but to share an experience on a special occasion. We asked some of our AAK colleagues around the organization about their special chocolate moments, and what they think will be important for future ones.

StinaMy special chocolate moment is when I share a piece of chocolate with my children. It’s rewarding because it makes me feel caring. My future moment is perhaps with a chocolate with lots of color, more natural ingredients, and one that is healthier.

KasperMy best chocolate moment is one that is shared with friends, when we meet and experience something together. I really like that somebody made an effort to create something delicious. For the future, I would like to see even more innovation, chocolate that is full of flavors and that has been created with a lot of passion.

MusnaA special moment for me is when I share a chocolate cake or chocolate bar with my family. It reminds me of the close bond that I have with them. I hope my special chocolate moment in the future will be both affordable and healthier.

MehriMy special moment is when I, after a great day at work, treat myself with a piece of chocolate. That makes me feel very pleased.

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MatthiasI really enjoy having my cup of coffee together with a piece of tasty chocolate. Treating myself this way just makes me happy. My future special chocolate moment is… well, with more natural ingredients.

JavierMy favorite moment is when I eat chocolate with churros together with my friends. That brings a lot of memories from Spain and it makes me feel like I’m back home. My future moment will be when eating chocolate doesn’t make me feel guilty.

NielsMy special chocolate moment is when I do a perfect hand tempering since it doesn’t happen that often. It makes me feel proud of my work and my skills as a chocolate technician. My future moment will be when we in early 2019 launch a series of chocolate and filling solutions which I have been involved in developing.

AndersMy special chocolate moment was when I realized that my favorite kind of chocolate as a kid is now my eldest son’s favorite. It makes me feel… proud may be too much, but it makes me smile. As for the future, I look forward to realizing what my youngest child’s favorite chocolate is.

HenningI really enjoy entering the small chocolate shop in my building, where everything is handmade and with all the nice flavors. It makes me feel happy, satisfied and fulfilled with pleasure. My future chocolate moment is to enter the shop and be surprised by a totally new taste experience. So, I visit my chocolate shop every month hoping to realize this new experience.

Watch the chocolate moment

video on youtube.com/c/aakab

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AAK and confectionery giant Cloetta have recently formed a partnership for sustainable shea. Insight met up with Åsa Portnoff Sundström, Cloetta’s Director Sustainability Affairs, to talk about the importance of sustainable raw materials.

AAK and Cloetta in partnership for sustainable shea

Åsa, Cloetta has ambitious sustainability targets, parti-cularly when it comes to sustainable sourcing. What are some of the most important raw materials in your chocolate production?In our chocolate products, we use raw materials like cocoa butter, cocoa liquor, cocoa powder, sugar, milk powder, palm oil, and shea oil. All cocoa that we source is UTZ certified, the palm oil is RSPO certified, and the shea oil, used in several of our chocolate brands, is sustainably sourced via AAK’s program.

What aspects of sustainability are important to you when it comes to shea?We have targeted to put sustainability programs in place by 2020 for some key raw materials. For shea specifically, it’s important to empower women in rural Africa taking part in the shea industry by making sure they get a better price for their crop. That way, women are willing to invest time and effort into the shea business resulting in improved quality of the shea kernels and a stable supply. With an improved income, the women are also in a better situation to address poverty, which is so often the root cause of many sustainability problems. Another very important aspect for Cloetta is improved traceability – to have information about the origin of the raw materials we use.

Why did you partner with AAK for sustainable shea?By partnering up in the AAK program, we have found a strong foundation to address our key areas of importance for shea. The basic principle of the program is to establish a direct relationship with the rural women in West Africa. Tradi-tionally, the supply chain contains a series of middlemen between the women and AAK. A prerequisite for the program, which engages more than 130,000 women, is that AAK helps the women to organize themselves into producer groups, normally consisting of women from the local village.

By organizing the women in producer groups, AAK builds a direct buying relationship with them, whereupon the women are trained in good post-harvest practices. The main advan-tage for the women is a higher return, as they are selling directly to AAK. It’s also a guaranteed outlet for all their shea kernels. The advantage for Cloetta is a more secure, transparent and sustainable supply chain with increased opportunities to impact the quality of the shea kernels. Another important benefit for the women is the possibility of obtaining pre-financing. At the beginning of the season, AAK extension officers visit the producer groups to discuss the women’s outlook for the season. Part of the volume is then pre-financed, and the women are paid at a time of year when they have little or no other source of income. It’s also a guarantee that AAK will come back and buy all their shea kernels. The pre-financing is interest-free – an advance payment, not a loan. The AAK program, which has been running since 2009 in Burkina Faso and since 2015 in Ghana, is a good way to responsibly source shea, increase transparency and improve social conditions for workers in the shea supply chain.

Cloetta recently visited West Africa to meet with some of the women’s groups. What learnings did you get from your visit?A key learning was that we take so much for granted in our general way of life which is simply not possible to do in rural Africa. This learning creates a deeper understanding that we need to work with sustainability programs like the one AAK has set up over a long period of time – it’s not a quick fix! We also learned that it’s important, before you enter and invest in a sustainability program, to evaluate the impact of such a program in person in the countries of origin, in this case by following the supply chain from tree to port in Ghana.

Where do you see Cloetta’s sustainability work in the next few years?Cloetta’s overall goal for corporate responsibility is to build sustainable long-term value. For Cloetta, sustainable value is about growing as a company while at the same time ensuring that the people and environments that are affected by Cloetta’s operations or products are not negatively impacted. Cloetta’s sustainability commitment functions as the road map for building long-term sustainable value.

Cloetta in briefFounded in 1862, Cloetta is a leading confec-tionery company in the Nordic region and the Netherlands. The company is manufacturing and marketing confectionery, chocolate products, nuts, pastilles, chewing gum, and pick & mix con-cepts. In total, Cloetta products are sold in more than 50 markets worldwide. Cloetta owns some of the strongest brands on the market, such as Läkerol, Cloetta, Candyking, Jenkki, Kexchoklad, Malaco, Sportlife, Red Band, and Nutisal.

• Annual sales: SEK 5.8 billion (2017)• Operating profit (EBIT), adjusted: SEK 604 million (2017)• Strong brands and market positions• Main markets are Sweden, Finland, Denmark, Norway, the Netherlands, Germany, and the UK• 2,500 employees in 11 countries• 8 production factories in 5 countries• Listed on Nasdaq Stockholm

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The state of Sabah in Borneo, Malaysia has set an ambitious target to reach RSPO certification for all its palm production by 2025. Since Sabah is responsible for 10 percent of global palm oil production, this innovative jurisdictional approach will have a significant impact.

AAK is partnering with Forever Sabah to focus on the smallholder element and we have completed our first year of support for the project. During this time, the work has been focused on four trial districts – Telupid, Tongod, Beluran and Kinabatangan (TTBK), covering 20 pilot villages estimated to involve 2,000 independent smallholders.

Roadmap to certificationTo collate important data and build awareness, and to provide the roadmap to scale up the certification across Sabah, a young dedicated team of field coordinators, equipped with an exhaustive 36-page questionnaire, interviewed 134 smallholders from the 20 villages. The team members were, in all honesty, received with varying degrees of enthusiasm – some with welcome and hope, others with a lot of scepticism. The questionnaire covered subjects that related to house-hold socio-economic information; smallholders’ knowledge and agronomic practises; knowledge of the RSPO; land issues; socio-culturally important sites; aspects relating to people’s use of forest resources; and, perceptions on changes within their environment in general and due to oil palm.

Smallholder engagement through Forever Sabah project

Sustainable sourcing of palm oil is a key area within AAK’s sustainability work. Our sustainable palm strategy focuses on execution and implementation of AAK’s sustainable palm policy, creating impact on the ground with suppliers and small-holders and stimulating market uptake. It’s a long journey and we have passed important milestones along the way, one being the smallholder project Forever Sabah in Malaysia. Bob Norman, Sustainable Palm Oil Manager at AAK, shares his first experiences with the project.

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Bob Norman, Sustainable Palm Oil Manager

The field coordinators lived in the villages, experienced life in real-time rural Sabah, and witnessed the pains and pleasures, ploys and politics of kampung (village) society. These were moments of insight. To help the field teams access remote villages, AAK funded the purchase of two 4x4 vehicles. In doing so, the teams could cover ground efficiently and safely. The interviews were not just about collating data but also to build awareness to organize and mobilize. Each of the 20 villages have now formed active committees to tackle the issues identified and to work closely with their designated Forever Sabah district field coordinator. Collating and analyzing the data required some additional support, and AAK was able to provide laptops for the field teams to record and manage all the data gathered from the interviews. From the data collected, a comprehensive report was published in May 2018. It provides a fascinating insight into the importance of oil palm for smallholders and the enormity of the challenges to achieve RSPO certification by 2025.

Important key findings For AAK and Forever Sabah the report provides the baseline insight of issues to be tackled and helps to prioritize. One of the key findings from the survey was that only 36 percent

of smallholders have land titles while 61 percent of small-holders in the TTBK villages are growing their oil palm with Land Application (LA) status, namely on land for which they have applied but to which they do not have title. Insecurity of tenure is a problem for the farmers and the environment as it is associated with vulnerability and low levels of investment in production and land care. It is also a major problem for the society as it creates instability and risk of conflict. AAK continues to be committed to support the Sabah smallholders, with a particular focus on land tenure during the next 12 months. Securing land tenure cannot be underestimated. It is a requirement for RSPO certification and it secures indigenous smallholder rights and reduces social conflict as well as increases incentives for long-term investments by those smallholders in productivity and sustainability. This issue is the single-most important one to smallholders, which ripples throughout the landscape to impact production practices and yield, land encroachment and deforestation, livelihoods and poverty. While this is going to be one of the hardest and most important issues to address for Sabah’s Jurisdiction Certifica-tion process, we are certain that we will be able to maintain the great momentum within Forever Sabah and truly make a difference for the region’s smallholders.

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Mintel: The power of storytelling

David, why are stories and the craft of storytelling so important nowadays?We live in an era of fake news and there’s erosion of trust in government, the media and regulatory authorities. The real, the genuine and the true have always been at the heart of the consumer experience, but our desire for “the real thing” has now been amplified. In food and drink, that means consumers distrust “big food”, they want to understand where their food comes from, how it was sourced, how it was made, and what exactly is in it. In Mintel research conducted last year, approximately half of UK and German consumers and just 30 percent of French consumers, said that they trusted the food and drink industry as a whole when it comes to safe consumption. But 73 percent of Germans, 65 percent of French consumers and 56 percent of UK consumers said that they are more likely to trust a food/drink product if the packaging explains where the ingredients are sourced.

How has storytelling evolved over time and why are writing good stories such a powerful marketing tool?Some countries have always had a better “heritage” of storytelling. France and Italy, for example, with their strong cultural and local ties to food and agriculture, have long exploited the power of narrative in marketing speciality foods at home and abroad. In the wider context, this trend started out among small, local companies, in particular craft brewers, and remains more common in categories that have a more direct connection to the farm (dairy, meat, cereals). But all brands have an opportunity to explore and share the heritage of their own products, especially those with a compelling narrative.

It’s about reassurance, but more importantly it’s about romancing the consumer, engaging with the consumer on an emotional level. And in today’s digital, instant-response realm, that emotional connection is even more important – enhancing the food experience for the consumer who is bombarded with information and images, struggling to discern what’s “real”.

Is storytelling within the food industry different from other industries and if so, in what way?The last few years have seen enormous growth in craft and artisanal values in food markets, and not just from smaller players. Big companies, even multinationals, are leveraging local and artisanal values to make their brands and products more “real” for consumers. They do this through story-telling, through providing information on provenance and processing, through reassurances of a product’s ethical and social values. The food ingredients industry, too, must provide transpar-ency and add value through a story. Successful ingredients suppliers don’t just sell ingredients, they provide solutions in partnership with their customers, providing a story that adds value through the supply chain and helps deliver a fully-rounded consumer proposition. Indeed, we could argue that the latest evolution of the clean label trend is transparency and provenance of the ingredients, not just the elimination of villainized additives. This works because consumers are looking for the “plus” – a focus on the positives of what is in a product rather than the negatives, of what is not – and the story justifies the added value proposition and price.

Storytelling has become a key selling proposition for many companies, big and small. To find out more about this marketing phenomenon, we contacted David Jago, Director of Innovation & Insight at Mintel, one of the world’s leading market intelligence agencies.

David Jago, Director of Innovation

& Insight at Mintel

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How do you think storytelling will influence the food in-gredients industry in the future? What type of stories are emerging? It’s not going to go away. It will be even more important in the future, and right now a key driver is the enormous boom in the number of small, entrepreneurial and niche brands that often produce and sell locally and do an excellent job of telling a story. The growing presence of these brands in mainstream retail will only encourage larger players to consider storytelling as a key selling proposition. In foodservice or in the alcoholic drinks category, consumers are accustomed to seeing information about how a dish or a product was created, the processes and

flavor-enhancing techniques used. Bringing this degree of storytelling to wider food markets could offer new ways to create added value and new pillars for flourishing innovation. We are seeing, and will see more, stories related to local ingredients, or locally-grown/processed ingredients, “real” or “purposeful” food ingredients, less processed ingredients, and the provenance of ingredients. In short, a focus on the positives, not the negatives.

The charm and the challenge of being a first-time mother

Earlier this year, 36-year-old Linnea from Sweden gave birth to her first child, Carl. Just like many first-time mothers would do, she describes the experience as very emotional and the biggest thing in a woman’s life. But not all things turned out the way Linnea had expected. “The biggest surprise for me was when it came to breast-feeding”, Linnea says. “I don’t think you talk that much about it and you just expect it to work by itself, as the most natural thing.” But when Carl was only a few weeks old, there were a lot of challenges for Linnea who struggled with several high fevers and lots of pain. This, of course, had serious consequences for Carl who became dehydrated and didn’t gain weight as expected. Linnea contacted her doctor and scheduled an appointment.

The World Health Organization (WHO) recommends mothers worldwide to exclu-sively breastfeed infants during the child’s first six months to achieve optimal growth, development and health. But while mother’s milk always should be the first choice, some mothers experiencing illness and pain find great support in infant formulas.

“The doctor recommended us to add, for a limited time, some formula as a compliment to the breastfeeding, so that’s what we did. It was such a relief for me as a mother and it really helped us both a lot. Carl became very satisfied and full.” Linnea explains that the most important thing for her during this period was to support her baby and to be able to relax and take away the pressure she had felt. “I know that breastfeeding is the best for him, and now, after four months, we are doing great with it”, Linnea says. “My advice to other first-time mothers is to try to stay strong with the breastfeeding and continue for at least six months. But don’t be afraid to ask for help because there is help to get.”

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Watch video on

youtube.com/c/aakab

PL-bound DHA Closer to human milk, 10–20% of DHA is PL-DHA Essential for brain development

All DHA in the brain is bound to PL More efficient absorption and reach to brain

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PL-bound ARA Closer to human milk, 10–20% of ARA is PL-ARA Advice ARA>DHA, like in ELIP 30

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PL-bound choline Closer to human milk Essential for infant development Natural form and more bio-efficient than salts Optimal source of natural choline

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Choline

Phospholipid-bound LCPs – a part of the magic in human milk

The dry matter of the brain is made up of 60 percent fat, and the important omega-3 fatty acids are found in all brain and nerve structures. 97 percent of these long-chain polyunsaturated fatty acids (LCPs) in the brain are DHA (docosahexaenoic acid), and all are bound in phospholipid (PL) form, resulting in so called PL-bound LCPs.

AAK’s solution Akonino® ELIP mimics the golden standard of human milk while meeting new requirements in the upcoming EU regulations for infant formula. The secret behind the solution: egg yolk.

Current research is recognizing that the DHA amount available during infancy and childhood are correlated to brain function/cognition. Coming into force in 2020, EU has updated infant regulation 2016/127, with a mandatory and increased DHA level.

Egg yolk – a natural source for PL-bound componentsIn human milk, 10–20 percent of the total LCPs – the omega-3 DHA and the omega-6 ARA (arachidonic acid), respectively – is bound in a phospholipid. One of few possible natural sources for these PL-bound LCPs, which can be used to mimic mother’s milk, is the egg yolk. “AAK’s solution Akonino® ELIP offers an active lipid mixture of PL-bound LCPs, gently retrieved from egg yolk”, says Lotte Smolders, Nutritional Science Expert within AAK’s

Special Nutrition segment. “A proper balance of DHA and ARA is needed for optimal cognitive performance in infants, as too much DHA may suppress the benefits from ARA. This balance is provided by our Akonino® ELIP.” There are different types of phospholipids, and in human milk about one third of the phospholipids carry the nutrient choline. Choline is needed for normal development of infants, as they cannot produce choline themselves. Infant formulas contain a wide range of choline concentrations, of which some are very low and should be considered when formulating. “75 percent of the phospholipids in our solution carries choline, perfect for sourcing this essential nutrient”, says Lotte Smolders. “Akonino® ELIP includes DHA, ARA as well as choline, originating from natural egg yolk.” Higher bioavailabilityEnhancing the bioavailability of vital components such as DHA and ARA in infant formula is key. It has clinically been shown (Carnielli, V.P. et al.) that, in infant formula, DHA bound to phospholipids has higher bioavailability than the DHA bound to triglycerides. Recent studies* verify that the digestion and reach into tissue, including crossing of the DHA through the blood-brain barrier, is more efficient as PL-DHA than the DHA in triglyceride form. Similarly, higher levels of ARA (Wijendran V., et al.) and choline (Hirsch, M.J., et al.) is found in tissue when bound to phospholipids. “I expect there is a reason why human milk during evolution has been designed to provide parts of these overly important fatty acids in PL-bound form”, says Lotte Smolders.

*Liu, L., et al., Higher efficacy of dietary DHA provided as a phospholipid than as a triglyceride for brain DHA accretion in neonatal piglets, and Subbaiah, P.V., et al., Enhanced incorporation of dietary DHA into lymph phospholipids by altering its molecular carrier.

AAK’s ELIP range – natural and unique PL package

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The benefits of AAK’s Akonino® ELIP range.

20% of phospholipids (PL) are directly absorbed in vivo without digestion

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AAK – The Co-Development CompanyThe Co-Development Company. What is really in that brand promise from AAK? In a simplified way you could say that AAK collaborates with its customers – from idea to product launch – to create value-adding solutions. But how does it work? Insight asked some of AAK’s teams around the world to share some recent successful co-development stories.

Last year, AAK was approached by an important customer within the bakery segment who had a problem with one of its products. A popular sweet baked product, stocked throughout the UK by our customer’s retail customer, had a shelf life of three days before its pastry became too soft. For the retailer, this meant products going to waste when not sold to consumers in time. Meanwhile, the baker was working six days a week to keep putting fresh stock on the shelves.

These are increasingly challenging times for the food industry, with health targets, new legislation and rising costs, all while having to keep loyal consumers happy and win new ones. A breakfast cereal manufacturer found that meeting sugar reduction targets meant excess waste. A proportion of the product was sticking to production equipment, leaving the manufacturer with 40 percent waste compared with original standards. Through a process of analysis and experimentation, our AAK team developed an innovative solution: a release agent, Rolloff 200 Sun, that would be applied to the customer’s

plant. The result was outstanding, and the customer now experiences no waste as a result of sugar reduction, with efficiencies back to normal. This project shows how AAK innovation can win great opportunities to help customers maintain the quality of well-loved products without affecting business efficiency.

Mike EdsonCustomer Innovation Manager, AAK UK

Gary ChapmanSenior Account Manager, AAK UK

Customer Co-Development in Europe

All taste, no waste – how innovation helped an AAK customer

The AAK team joined forces with our customer’s specialists to co-develop a solution. We trialed several different fat combinations, eventually reaching a solution with a new product, Akobake 122. The result? Two additional days’ shelf life for the product, reduced labor costs for the baker, and reduced waste for the retailer. And, ultimately, a consumer who could enjoy crispier, firmer pastry. Over a 12-month period, our customer has saved around £1 million in labor, production and waste costs, as well as potentially strengthened the relationship with its own customer. For AAK, the results have been just as rewarding, with the addition of a new product to our range of value-adding solutions and, best of all, earning our customer’s trust by helping to fulfil their ambitions. This was a really great example of our co-development approach at work. It pooled our knowledge, skills and capabilities to help meet our customer’s challenge and truly add value to our products. Jill EllisCustomer Innovation Manager, AAK UK

Tracey MossKey Account Manager, AAK UK

Customer Co-Development in Europe

AAK saved customer £1 million by giving pastry longer shelf life

Earlier this year, a major producer within the chilled dairy snacks segment faced some serious problems within its supply chain, resulting in both quality and production issues. Based on the producer’s input, a team from AAK started to secure availability of raw material volumes with the right quality and develop a tailor-made solution to provide seamless performance. Within a short time period a formu-

Customer Co-Development in Europe

Maximum value and zero compromise in chilled dairy snacks

Implement

Launch

Prove

Ideate

Create

The five value-adding

stages of AAK’s co-development

approach.

lation was chosen to be used for industrial scale trials. During ramp-up, the ability to meet set requirements and specifications was closely monitored. Through iterations, testing and tasting together with the customer, we agreed on a final product specification with zero compromise on taste, functionality and sustainability requirements. This close collaboration resulted in the producer being able to pursue the growing market demand. From first customer interaction to final chilled dairy snack at the retailers, it took less than nine months.

Daan WagterCustomer Innovation Manager, AAK Netherlands

Daan LugardSales Manager, AAK Netherlands

Production plants Customization plantsSales officesSourcing operationsCustomer Innovation Centres

Explore more atwww.aak.com

AAK is a leading provider of value-adding vegetable oils & fats.

Our expertise in lipid technology within foods and special nutrition applications, our wide range of raw materials and our broad process capabilities enable us to develop innovative and value-adding solutions across many industries – Chocolate & Confectionery, Bakery, Dairy, Special Nutrition, Foodservice, Personal Care, and more.

AAK’s proven expertise is based on more than 140 years of experience within oils & fats. Our unique co-development approach brings our customers’ skills and know-how together with our own capabilities and mindset for lasting results.

Listed on Nasdaq Stockholm and with our headquarters in Malmö, Sweden, AAK has 20 different production facilities, sales offices in more than 25 countries and more than 3,400 employees.

We are AAK – The Co-Development Company.

We are AAK