Insight AAK Magazine The Co-Development Company

Page created by Mark Palmer
 
CONTINUE READING
Insight AAK Magazine The Co-Development Company
Insight
            AAK Magazine
            The Co-Development Company

                        #7, January 2019

What’s your chocolate moment? pages 4–5
Smallholder engagement in Malaysia, pages 8–9
The power of storytelling, pages 10–11
Insight AAK Magazine The Co-Development Company
Dear readers,

For this issue of Insight, we have talked to Cloetta, a             The Co-Development Company
leading confectionery company in the Nordic region and the          As usual, we give you some concrete examples of what it
Netherlands with whom we have formed a partnership for              means to be the Co-Development Company. AAK colleagues
sustainable shea. In an exclusive interview, the company’s          from different parts of the organization share some of their
Director Sustainability Affairs explains how this initiative fits   recent co-development stories and explain how our customer
with Cloetta’s overall goal for corporate responsibility.           value propositions for health and reduced costs have helped
   Bob Norman, Sustainable Palm Oil Manager, reports from           our customers improve and grow their businesses.
the ground in Malaysia where AAK is engaged in a small-                If you have any comments or questions about the maga-
holder project called Forever Sabah. The state of Sabah,            zine or if you have suggestions for future articles, don’t
responsible for 10 percent of global palm oil production, has       hesitate to talk to your AAK representative or contact us via
a target to reach RSPO certification for all its palm produc-       insight@aak.com.
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                Enjoy your reading.
proposition for many companies.
                                                                    Anne Mette Olesen
A world of opportunities                                            Chief Marketing Officer
We 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.

    Contents                                                          Insight AAK Magazine

    Great fillings for special chocolate moments              3       Published by AAK AB (publ.) | www.aak.com
    What’s your special chocolate moment?                  4–5
                                                                      Editorial group
    Partnership for sustainable shea                       6–7        Henning Villadsen, Mariana Mocanu, Christian Robèrt,
                                                                      Anne Brødsgaard, Johan Malm, Laura Schlebes,
    Smallholder engagement in Malaysia                     8–9        Caroline Westerik, Bodil Granroth, Catharina Aaröe,
    Mintel: The power of storytelling                    10–11        Helen Flower, Martin Persson.

    Infant formula as a compliment                           12       Contact
                                                                      insight@aak.com
    AAK’s new Akonino® ELIP range                            13
    AAK – The Co-Development Company                     14–15        Production: JohnJohn Konsult AB
                                                                      Photographs: AAK, Thomas Hergaard, Cloetta, Kim Hess,
                                                                      Charlotte Kropholler, Shutterstock
                                                                      Print: Exakta

2
Insight AAK Magazine The Co-Development Company
Great fillings for special
chocolate moments
Consumer 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        a creamy or cooling sensation in the mouth. All of these
there are, according to a recent Euromonitor survey, some            characteristics depend on the choice of filling fats, their
points that chocolate lovers tend to agree on. Three of them         interaction with the other ingredients in the recipes and the
stand out. First of all, chocolate is moving out of the snack        processes used.
category and becoming more of a premium luxury. Secondly,               In other words, production of a perfect filling requires a
exciting creative tastes and texture are a must – perhaps            thorough understanding of all the parameters that influence
with the addition of a few nuts and a healthier, more natural        the taste and quality of the final filled chocolate. This is the
profile. And finally, trans fats are a no-go – with almost a third   key to a world of opportunities – where fat plays an essential
of consumers often checking the ingredient labels before             role along with the other ingredients used.
they buy.
   “Today, consumers prefer filled chocolate and confec-             Co-development of indulgence and health
tionery products”, says Marco Oomen, AAK’s Global                    AAK supports chocolate and confectionery manufacturers
Business Director for Chocolate & Confectionery Fats.                with all these considerations and technical challenges
“While this gives manufacturers a fantastic playground for           through the co-development of exciting new fillings.
developing new sensory experiences, it also raises a set                “The right AAK filling fat can solve the technical challenges
of technical challenges that must be solved before a new             of using nuts, ensuring the perfect indulgent combination
product can become a true consumer favorite. Very often,             of taste, texture and appearance along with the healthier
the solution to such challenges lies in the filling fats.”           profile that consumers enjoy”, says Marco Oomen. “Several
                                                                     parameters need to be considered when producing fillings
The key to a world of opportunities                                  for the special chocolate moments that consumers seek.
When manufacturers produce chocolate and confectionery               Filled chocolates are not just chocolate anymore. To
with fillings, they aim to excite consumers with soft, hard          consumers, they are about enjoying life, special moments
or aerated textures; flavors with controlled release; and            and indulgence.”

                                                                                                                                    3
Insight AAK Magazine The Co-Development Company
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.

                                                  Stina
                                                  My 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.

    Musna
    A 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.

                                                  Kasper
                                                  My 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.

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

4
Insight AAK Magazine The Co-Development Company
moment
                                                                       Watch the chocolate /aakab
                                                                                           /c
                                                                      video on youtube.com

                                                Matthias
                                                I 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.

Anders
My 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.

                                                Javier
                                                My 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.

Henning
I 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.

                                                Niels
                                                My 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.

                                                                                                                      5
Insight AAK Magazine The Co-Development Company
AAK and Cloetta
    in partnership
    for sustainable
    shea
    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.

    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.

6
Insight AAK Magazine The Co-Development Company
Cloetta in brief
   Founded in 1862, Cloetta is a leading confec-        •   Annual sales: SEK 5.8 billion (2017)
   tionery company in the Nordic region and the         •   Operating profit (EBIT), adjusted: SEK 604 million (2017)
   Netherlands. The company is manufacturing and        •   Strong brands and market positions
   marketing confectionery, chocolate products,         •   Main markets are Sweden, Finland, Denmark, Norway, the Netherlands, Germany, and the UK
   nuts, pastilles, chewing gum, and pick & mix con-    •   2,500 employees in 11 countries
   cepts. In total, Cloetta products are sold in more   •   8 production factories in 5 countries
   than 50 markets worldwide. Cloetta owns some         •   Listed on Nasdaq Stockholm
   of the strongest brands on the market, such as
   Läkerol, Cloetta, Candyking, Jenkki, Kexchoklad,
   Malaco, Sportlife, Red Band, and Nutisal.

By organizing the women in producer groups, AAK builds a                         Cloetta recently visited West Africa to meet with some
direct buying relationship with them, whereupon the women                        of the women’s groups. What learnings did you get
are trained in good post-harvest practices. The main advan-                      from your visit?
tage for the women is a higher return, as they are selling                       A key learning was that we take so much for granted in our
directly to AAK. It’s also a guaranteed outlet for all their                     general way of life which is simply not possible to do in rural
shea kernels. The advantage for Cloetta is a more secure,                        Africa. This learning creates a deeper understanding that we
transparent and sustainable supply chain with increased                          need to work with sustainability programs like the one AAK
opportunities to impact the quality of the shea kernels.                         has set up over a long period of time – it’s not a quick fix!
   Another important benefit for the women is the possibility                       We also learned that it’s important, before you enter and
of obtaining pre-financing. At the beginning of the season,                      invest in a sustainability program, to evaluate the impact
AAK extension officers visit the producer groups to discuss                      of such a program in person in the countries of origin, in
the women’s outlook for the season. Part of the volume is                        this case by following the supply chain from tree to port in
then pre-financed, and the women are paid at a time of year                      Ghana.
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                       Where do you see Cloetta’s sustainability work in the next
kernels. The pre-financing is interest-free – an advance                         few years?
payment, not a loan.                                                             Cloetta’s overall goal for corporate responsibility is to build
   The AAK program, which has been running since 2009                            sustainable long-term value. For Cloetta, sustainable value
in Burkina Faso and since 2015 in Ghana, is a good way to                        is about growing as a company while at the same time
responsibly source shea, increase transparency and improve                       ensuring that the people and environments that are affected
social conditions for workers in the shea supply chain.                          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.

                                                                                                                                                      7
Insight AAK Magazine The Co-Development Company
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.

                 The state of Sabah in Borneo, Malaysia           Roadmap to certification
                 has set an ambitious target to reach RSPO        To collate important data and build awareness, and to
                 certification for all its palm production by     provide the roadmap to scale up the certification across
                 2025. Since Sabah is responsible for 10          Sabah, a young dedicated team of field coordinators,
                 percent of global palm oil production, this      equipped with an exhaustive 36-page questionnaire,
                 innovative jurisdictional approach will have a   interviewed 134 smallholders from the 20 villages. The team
                 significant impact.                              members were, in all honesty, received with varying degrees
  AAK is partnering with Forever Sabah to focus on the            of enthusiasm – some with welcome and hope, others with
smallholder element and we have completed our first year of       a lot of scepticism.
support for the project. During this time, the work has been         The questionnaire covered subjects that related to house-
focused on four trial districts – Telupid, Tongod, Beluran and    hold socio-economic information; smallholders’ knowledge
Kinabatangan (TTBK), covering 20 pilot villages estimated to      and agronomic practises; knowledge of the RSPO; land
involve 2,000 independent smallholders.                           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.
Insight AAK Magazine The Co-Development Company
Bob Norman,
                              Sustainable Palm Oil Manager

The field coordinators lived in the villages, experienced        of smallholders have land titles while 61 percent of small-
life in real-time rural Sabah, and witnessed the pains and       holders in the TTBK villages are growing their oil palm with
pleasures, ploys and politics of kampung (village) society.      Land Application (LA) status, namely on land for which they
These were moments of insight. To help the field teams           have applied but to which they do not have title. Insecurity of
access remote villages, AAK funded the purchase of two           tenure is a problem for the farmers and the environment as it
4x4 vehicles. In doing so, the teams could cover ground          is associated with vulnerability and low levels of investment
efficiently and safely.                                          in production and land care. It is also a major problem for the
    The interviews were not just about collating data but also   society as it creates instability and risk of conflict.
to build awareness to organize and mobilize. Each of the 20         AAK continues to be committed to support the Sabah
villages have now formed active committees to tackle the         smallholders, with a particular focus on land tenure during
issues identified and to work closely with their designated      the next 12 months. Securing land tenure cannot be
Forever Sabah district field coordinator. Collating and          underestimated. It is a requirement for RSPO certification
analyzing the data required some additional support, and         and it secures indigenous smallholder rights and reduces
AAK was able to provide laptops for the field teams to record    social conflict as well as increases incentives for long-term
and manage all the data gathered from the interviews.            investments by those smallholders in productivity and
    From the data collected, a comprehensive report was          sustainability. This issue is the single-most important one
published in May 2018. It provides a fascinating insight into    to smallholders, which ripples throughout the landscape to
the importance of oil palm for smallholders and the enormity     impact production practices and yield, land encroachment
of the challenges to achieve RSPO certification by 2025.         and deforestation, livelihoods and poverty.
                                                                    While this is going to be one of the hardest and most
Important key findings                                           important issues to address for Sabah’s Jurisdiction Certifica-
For AAK and Forever Sabah the report provides the baseline       tion process, we are certain that we will be able to maintain
insight of issues to be tackled and helps to prioritize. One     the great momentum within Forever Sabah and truly make a
of the key findings from the survey was that only 36 percent     difference for the region’s smallholders.

                                                                                                                              9
Insight AAK Magazine The Co-Development Company
Mintel: The power of storytelling
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

David, why are stories and the craft of storytelling so           It’s about reassurance, but more importantly it’s about
­important nowadays?                                              romancing the consumer, engaging with the consumer on
 We live in an era of fake news and there’s erosion of trust in   an emotional level. And in today’s digital, instant-response
 government, the media and regulatory authorities. The real,      realm, that emotional connection is even more important
 the genuine and the true have always been at the heart of        – enhancing the food experience for the consumer who
 the consumer experience, but our desire for “the real thing”     is bombarded with information and images, struggling to
 has now been amplified. In food and drink, that means            discern what’s “real”.
 consumers distrust “big food”, they want to understand
 where their food comes from, how it was sourced, how it was      Is storytelling within the food industry different from other
 made, and what exactly is in it.                                 industries and if so, in what way?
    In Mintel research conducted last year, approximately half    The last few years have seen enormous growth in craft and
 of UK and German consumers and just 30 percent of French         artisanal values in food markets, and not just from smaller
 consumers, said that they trusted the food and drink industry    players. Big companies, even multinationals, are leveraging
 as a whole when it comes to safe consumption. But 73             local and artisanal values to make their brands and products
 percent of Germans, 65 percent of French consumers and           more “real” for consumers. They do this through story-
 56 percent of UK consumers said that they are more likely to     telling, through providing information on provenance and
 trust a food/drink product if the packaging explains where the   processing, through reassurances of a product’s ethical and
 ingredients are sourced.                                         social values.
                                                                     The food ingredients industry, too, must provide transpar-
How has storytelling evolved over time and why are writing        ency and add value through a story. Successful ingredients
good stories such a powerful marketing tool?                      suppliers don’t just sell ingredients, they provide solutions in
Some countries have always had a better “heritage” of             partnership with their customers, providing a story that adds
storytelling. France and Italy, for example, with their strong    value through the supply chain and helps deliver a fully-
cultural and local ties to food and agriculture, have long        rounded consumer proposition. Indeed, we could argue that
exploited the power of narrative in marketing speciality          the latest evolution of the clean label trend is transparency
foods at home and abroad. In the wider context, this trend        and provenance of the ingredients, not just the elimination
started out among small, local companies, in particular craft     of villainized additives. This works because consumers are
brewers, and remains more common in categories that have          looking for the “plus” – a focus on the positives of what is in
a more direct connection to the farm (dairy, meat, cereals).      a product rather than the negatives, of what is not – and the
But all brands have an opportunity to explore and share           story justifies the added value proposition and price.
the heritage of their own products, especially those with a
compelling narrative.

10
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       flavor-enhancing techniques used. Bringing this degree of
that often produce and sell locally and do an excellent job    storytelling to wider food markets could offer new ways to
of telling a story. The growing presence of these brands       create added value and new pillars for flourishing innovation.
in mainstream retail will only encourage larger players to        We are seeing, and will see more, stories related to local
consider storytelling as a key selling proposition.            ingredients, or locally-grown/processed ingredients, “real” or
    In foodservice or in the alcoholic drinks category,        “purposeful” food ingredients, less processed ingredients,
consumers are accustomed to seeing information about           and the provenance of ingredients. In short, a focus on the
how a dish or a product was created, the processes and         positives, not the negatives.

                                                                                                                           11
Watch video on
                                                                                     youtube.com /c/aakab

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

Earlier this year, 36-year-old Linnea from Sweden gave birth        “The doctor recommended us to add, for a limited time, some
to her first child, Carl. Just like many first-time mothers would   formula as a compliment to the breastfeeding, so that’s what
do, she describes the experience as very emotional and the          we did. It was such a relief for me as a mother and it really
biggest thing in a woman’s life. But not all things turned out      helped us both a lot. Carl became very satisfied and full.”
the way Linnea had expected.                                           Linnea explains that the most important thing for her
   “The biggest surprise for me was when it came to breast-         during this period was to support her baby and to be able to
feeding”, Linnea says. “I don’t think you talk that much about      relax and take away the pressure she had felt.
it and you just expect it to work by itself, as the most natural       “I know that breastfeeding is the best for him, and now,
thing.”                                                             after four months, we are doing great with it”, Linnea says.
   But when Carl was only a few weeks old, there were               “My advice to other first-time mothers is to try to stay strong
a lot of challenges for Linnea who struggled with several           with the breastfeeding and continue for at least six months.
high fevers and lots of pain. This, of course, had serious          But don’t be afraid to ask for help because there is help to
consequences for Carl who became dehydrated and didn’t              get.”
gain weight as expected. Linnea contacted her doctor and
scheduled an appointment.

12
Phospholipid-bound LCPs
– a part of the magic in human milk
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.

The dry matter of the brain is made up of 60 percent fat,                                            Special Nutrition segment. “A proper balance of DHA and
and the important omega-3 fatty acids are found in all                                               ARA is needed for optimal cognitive performance in infants,
brain and nerve structures. 97 percent of these long-chain                                           as too much DHA may suppress the benefits from ARA. This
polyunsaturated fatty acids (LCPs) in the brain are DHA                                              balance is provided by our Akonino® ELIP.”
(docosahexaenoic acid), and all are bound in phospholipid                                               There are different types of phospholipids, and in human
(PL) form, resulting in so called PL-bound LCPs.                                                     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
     AAK’s ELIP range – natural and unique PL package
                                                                                                     formulas contain a wide range of choline concentrations, of
                                                                                                     which some are very low and should be considered when
                                 PL-bound DHA
                          COOH     Closer to human milk, 10–20% of DHA is PL-DHA                     formulating.
                                   Essential for brain development                                      “75 percent of the phospholipids in our solution carries
 DHA                             All DHA in the brain is bound to PL                                 choline, perfect for sourcing this essential nutrient”, says

          +
                                    More efficient absorption and reach to brain                     Lotte Smolders. “Akonino® ELIP includes DHA, ARA as well
                 O
                                                                                                     as choline, originating from natural egg yolk.”
                     OH

                                 PL-bound ARA
                                   Closer to human milk, 10–20% of ARA is PL-ARA
                                                                                                     Higher bioavailability
                                   Advice ARA>DHA, like in ELIP 30                                   Enhancing the bioavailability of vital components such as
 ARA                                                                                                 DHA and ARA in infant formula is key. It has clinically been
          +                      PL-bound choline
                                                                                                     shown (Carnielli, V.P. et al.) that, in infant formula, DHA
                                                                                                     bound to phospholipids has higher bioavailability than the
           CH3
   H3C                             Closer to human milk
          N+
                      OH           Essential for infant development
                                                                                                     DHA bound to triglycerides.
    H3C
                                   Natural form and more bio-efficient than salts                       Recent studies* verify that the digestion and reach into
Choline                            Optimal source of natural choline                                 tissue, including crossing of the DHA through the blood-
                                                                                                     brain barrier, is more efficient as PL-DHA than the DHA in
   20% of phospholipids (PL) are directly absorbed in vivo without digestion                         triglyceride form. Similarly, higher levels of ARA (Wijendran
                                                                                                     V., et al.) and choline (Hirsch, M.J., et al.) is found in tissue
The benefits of AAK’s Akonino® ELIP range.
                                                                                                     when bound to phospholipids.
                                                                                                        “I expect there is a reason why human
                                                                                                     milk during evolution has been
Current research is recognizing that the DHA amount                                                  designed to provide parts of these
available during infancy and childhood are correlated to                                             overly important fatty acids in
brain function/cognition. Coming into force in 2020, EU has                                          PL-bound form”, says Lotte
updated infant regulation 2016/127, with a mandatory and                                             Smolders.
increased DHA level.

Egg yolk – a natural source for PL-bound components
In 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

*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 – The Co-Development Company
The 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.

Customer Co-Development in Europe

AAK saved customer £1 million by giving pastry longer shelf life
Last year, AAK was approached by an important customer             The AAK team joined forces with our customer’s specialists
within the bakery segment who had a problem with one               to co-develop a solution. We trialed several different fat
of its products. A popular sweet baked product, stocked            combinations, eventually reaching a solution with a new
throughout the UK by our customer’s retail customer, had           product, Akobake 122. The result? Two additional days’ shelf
a shelf life of three days before its pastry became too soft.      life for the product, reduced labor costs for the baker, and
For the retailer, this meant products going to waste when          reduced waste for the retailer. And, ultimately, a consumer
not sold to consumers in time. Meanwhile, the baker was            who could enjoy crispier, firmer pastry.
working six days a week to keep putting fresh stock on the             Over a 12-month period, our customer has saved around
shelves.                                                           £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 Ellis
                                                                   Customer Innovation Manager, AAK UK

                                                                   Tracey Moss
                                                                   Key Account Manager, AAK UK

Customer Co-Development in Europe

All taste, no waste – how innovation helped an AAK customer
These are increasingly challenging times for the food              plant. The result was outstanding, and the customer now
industry, with health targets, new legislation and rising costs,   experiences no waste as a result of sugar reduction, with
all while having to keep loyal consumers happy and win new         efficiencies back to normal.
ones.                                                                 This project shows how AAK innovation can win great
   A breakfast cereal manufacturer found that meeting sugar        opportunities to help customers maintain the quality of well-
reduction targets meant excess waste. A proportion of the          loved products without affecting business efficiency.
product was sticking to production equipment, leaving the
manufacturer with 40 percent waste compared with original          Mike Edson
standards.                                                         Customer Innovation Manager, AAK UK
   Through a process of analysis and experimentation, our
AAK team developed an innovative solution: a release agent,        Gary Chapman
Rolloff 200 Sun, that would be applied to the customer’s           Senior Account Manager, AAK UK

14
Customer Co-Development in Europe

Maximum value and zero compromise in chilled
dairy snacks
Earlier this year, a major producer within the chilled dairy     lation was chosen to be used for industrial scale trials.
snacks segment faced some serious problems within its            During ramp-up, the ability to meet set requirements and
supply chain, resulting in both quality and production issues.   specifications was closely monitored. Through iterations,
   Based on the producer’s input, a team from AAK started        testing and tasting together with the customer, we agreed on
to secure availability of raw material volumes with the          a final product specification with zero compromise on taste,
right quality and develop a tailor-made solution to provide      functionality and sustainability requirements.
seamless performance. Within a short time period a formu-           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 Wagter
                                Launch
                                                                 Customer Innovation Manager, AAK Netherlands

                                                                 Daan Lugard
                                The five                         Sales Manager, AAK Netherlands
        Implement            value-adding              Ideate
                            stages of AAK’s
                            co-development
                               approach.

                    Prove                     Create
Production plants
   Customization plants
   Sales offices
   Sourcing operations
   Customer Innovation Centres

We are AAK
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.
                                                                          Explore more at
AAK’s proven expertise is based on more than 140 years of experience      www.aak.com
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.
You can also read