Our strategy
Our vision is to be the leading global performance nutrition and ingredients group
and our strategic objective is to maximise total returns to shareholders, while also
maintaining a strong position on key sustainability issues.
2014 TO 2018 STRATEGIC TARGETS
We have defined a clear set of strategic
priorities and targets in order to achieve
our 2018 ambitions. To support this,
we need to ensure that we continue to
develop world-class strategic capabilities
and assets to harness Glanbia’s global
growth potential.
Our 2014 to 2018 strategic targets are:
• To maintain organic growth each year
of 8% to 10%, constant currency; and
Priority
ONE
SUSTAIN CURRENT AND
DRIVE FURTHER MARKET
LEADERSHIP IN OUR B2B
AND B2C GROWTH
PLATFORMS
TWO
• To achieve a return on capital
employed in excess of 12%, post
tax, by year three of an investment.
We have the potential to deliver higher
levels of growth with acquisitions and
partnerships that add further scale
to our current portfolio.
KEY PERFORMANCE INDICATORS
We monitor our long-term progress by
measuring growth or improvement in
eight key performance indicators (KPI).
These KPIs have been identified by the
Board as the most relevant to delivering
the Group’s strategy and objectives.
STRATEGIC
OBJECTIVE
We seek to maintain a strong position
on key sustainability issues in our sector
including food safety and quality, the
environment, regulatory compliance
and nutritional innovation.
See pages 41 to 43 for more
about sustainability
ACQUIRE OR PARTNER
WITH COMPLEMENTARY
BUSINESSES TO GROW
OUR CURRENT
PORTFOLIO
To maximise total
returns to
shareholders
Priority
THREE
See page 2 for more about KPIs
SUSTAINABILITY
Priority
Priority
DELIVER OUR
STRATEGIC CAPITAL
INVESTMENT
PROGRAMME
FOUR
DEVELOP TALENT,
CULTURE AND
VALUES IN
LINE WITH
OUR GROWING
GLOBAL SCALE
Find out more online at
glanbia.com/about-us/strategy
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• Consolidated our position
as the leading Global
Performance Nutrition
business with double digit
revenue growth; and
• Maintained our leadership
positions in American-style
cheddar cheese and
whey-based nutritional
solutions in Global
Ingredients.
2015 FOCUS AREAS
• Deliver branded revenue
growth ahead of the market
in Global Performance
Nutrition; and
• Develop growth opportunities
with a goal of revenue growth
and margin expansion in
Global Ingredients.
• Acquired Isopure, a US
based provider of premium
branded performance
nutrition products, for €121
million in September; and
• Continue to develop an
acquisition pipeline to grow
our portfolio across the
performance nutrition and
ingredients sector; and
• Acquired Nutramino, a leading
Scandinavian performance
nutrition business, in January
for a consideration of
€21 million plus €7 million
additional earnout.
• Continue to pursue
long-term partnership
opportunities in the area of
large scale milk processing
to grow our Global
Ingredients business.
• Strategic capital expenditure
programme of €73 million:
–– US production
expansion in Global
Performance Nutrition;
–– Investment in Whey Protein
Isolate and lactoferrin
capacity expansion in
Global Ingredients; and
–– New UHT milk facility
in Consumer Products
in Ireland.
• Strategic capital expenditure
of approximately €90 million;
• Commission the Idaho-based
dairy expansion in Global
Ingredients;
• Complete further phase
of investment in Global
Performance Nutrition
production facilities; and
• Commission new dairy
facility in Ireland.
• Launched the ‘Our Glanbia’
programme to enhance
employee engagement
across the Group;
• Complete our global employee
engagement survey;
• Completed a Group-wide
‘Our Glanbia’ week; and
• Develop the ‘Our Glanbia’
programme at a local and
global level; and
• Created strong goodwill
and energy throughout
Glanbia around greater
employee engagement.
• Launch Group-wide
global intranet;
• Reform ‘Purpose, Vision and
Values’ at overall Group level.
STRATEGIC capabilities
GLOBAL talent management
Strategic report
2014 ACHIEVEMENTS
As a global business, excellence in human
resources and talent management is key
to the Group’s future success and this
is a particular area of focus to 2018.
PORTFOLIO MANAGEMENT
Glanbia has a strong track record of
efficient capital allocation and portfolio
management. Our ability to use a variety
of structures including joint ventures is
critical to sustainable long-term growth
both organically and by acquisition.
BRAND POWER
Global Performance Nutrition is the foremost
global performance nutrition brand portfolio
with an unrivalled product offering and key
channel and category leadership. As an
ingredient supplier in the B2B arena, the
Glanbia brand stands for quality, integrity,
innovation and sustainability.
MARKET LEADERSHIP
Glanbia is a market leader in performance
nutrition, cheese, dairy ingredients, specialty
non-dairy ingredients and vitamin and mineral
premixes. The Group is focused on maximising
its current strategic positions and driving to
leadership positions in other markets.
OPERATIONAL EXCELLENCE
Operational excellence enables us to
manufacture products that meet customer
and consumer food safety and high-quality
standards. It also enables us to run large scale,
efficient facilities with full regulatory compliance
and good environmental stewardship.
SCIENCE-BACKED INNOVATION
Innovation contributes to our customers’
growth and our own growth. We focus on
market-led and technology-driven innovation,
to move up the ingredients value chain
and deliver well researched patented or
branded products.
STRONG CUSTOMER RELATIONSHIPS
Customer and consumer insights are key to
maintaining and growing strong and enduring
relationships. In B2B, we seek to grow the
potential of these relationships further and
in B2C our objective is to continue to grow
global branded revenue.
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