Consumer business area

Gradual advances on challenging consumer market

The Consumer business area, with customers mainly within the grocery retail trade, accounted for 15% (16%) of net sales in 2012. The product range creatively combines design and functionality to create pleasant environments for all occasions when enjoying food and drink. It includes everything from napkins, candles and tablecoverings, to plastic products such as glasses, cups, cutlery and plates. Within Consumer, Duni also sells hygienic wipes in tissue for domestic use under the Duniwell brand, as well as gift wrapping paper.

Development in 2012

In 2012, sales amounted to SEK 551 (612) m. At fixed exchange rates, this entailed a reduction of 8.1%. Operating income was SEK 5 (21) m, entailing an operating margin of 0.9% (3.4%). Following a weak start to the year, Consumer won a number of new customers, which gradually improved both product mix and relative profitability during the year.

Central Europe experienced a mixed trend. One major customer went into bankruptcy, but the shortfall was largely offset by a number of new contracts, including with the German grocery chains Edeka and Toom. Work is underway on building new shelves and concepts at the new customers.

In the UK, profitability improved during the year, while sales declined due to a degree of restructuring at customer level.

In the Benelux countries, the trend was relatively stable compared with 2011. The customer market was further consolidated through Jumbo’s purchase of C 1000, with the result that the chain is now focusing on its private labels in the category.

On the Nordic market, the largest companies are continuing to focus on their private label goods, which has a negative impact on sales. Despite a tough year, a number of new contracts were signed in the latter part of the year.

Duni’s web shop for the Swedish market, which was started at the end of 2011, is increasing accessibility for consumers and has generated additional sales. On the Swedish market, a cooperation project is also being carried out with a company specializing in home party sales. The sales levels are low, but the channels constitute a good marketing channel which is expected to contribute to increased sales in the long term.

Of the net sales within Consumer, Central Europe accounted for SEK 457 (502) m, the Nordic region for SEK 75 (82) m, Southern and Eastern Europe for SEK 18 (26) MSEK m, and other markets for SEK 1 (2).

Marketing, sales and customers

Sales to grocery retail chains and hypermarkets account for by far the largest portion of sales within Consumer. A clear majority of sales consist of Duni branded products. Marketing and sales are based on key account management which, among other things, means that particularly important customers – primarily grocery retail chains – have their own customer account manager at Duni. In addition to key account management, there is also a sales force in each region which spends a large part of its time in the field visiting the customers. These customer visits often concern merchandising, the marketing of new product ranges, and the implementation of campaigns and activities. Merchandising is carried out by Duni’s personnel and external partners. Sales also take place to pharmacies, chain stores in the home furnishings sector as well as various specialty stores and gardening outlets.

Duni works together with the retail trade to optimize sales in the product category. Individual products are brought together into a concept based on the customers’ different needs and uses. Category growth and profitability are created by increasing the presence of Duni’s unique premium products.

In 2012, a new concept was also developed in which Duni cooperates with known designers or design houses for the design of various collections. Duni has exclusive rights in the category. The concept is marketed under the name “Designs for Duni™”. First off the mark are the well-known Finnish design houses Vallila and Jukka Rintala, as well as the Dutch Melli Mello brand for Germany and the Benelux countries.

Jukka Rintala                    Vallila                               Melli Mello

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