Country BETA:

Supplementary Information
 Facts about BETA

X Capital: Epsilon City

X Land Area (Sq Km): 749,000
X Population: 54.9 million inhabitants
16.6% Immigrants
22% Single Person Household Gamma
GNP Growth: -0.5% (2009) Omega
Unemployment Rate: 13.9%
84% urban
7 cities > 1 mio. inhabitants Epsilon
City
Alpha

X Consumption Facts per Year

White Milk consumption/capita: 69 litres Phi
Juice & Nectars consumption/capita: 25 litres

2 Disguised Data; Tetra Pak BETA

 BETA's Social Economic Classes Overview
Economy no longer considered developing

1985 - 1990 2007 - 2008

SEC:

28 AB 55

46 C 32

26 DE 13

3 Disguised Data; Tetra Pak BETA

 Country BETA:
Tetra Pak Performance
 Dairy Fact Base
WM almost 90% of Dairy Category
4587 4119 468

PET PET
OLDP HDPE Bottle HDPE

Combibloc Combi

White
Milk

Ambient TP Ambient
TP

Total White Milk OLDP

5 Disguised Data; Tetra Pak BETA

 Country BETA:
Liquid Milk Market
 Liquid Milk Market
Liquid Milk Volume in Mio Litres
Pasteurized milk hardly reaches 2% of MS

Total Liquid Milk

7 Disguised Data; Tetra Pak BETA

 Mature category in volume terms
Liquid Milk Volume in Mio Litres
Growth in value terms

8 Total Liquid Milk Source: AC Nielsen Disguised Data; Tetra Pak BETA
 Average purchase keep decreasing
But more households buying

Increase in 170,200
more households

Penetration

86.5%
% Volume Evolution
85.8%
Volume per shop (Lts.)
0.7% 7.07
-0.9%
Average Purchase Lts 7.00
Average Shopping (Lts.)
165.5
168.1 Shopping Frequency Shopping

Decrease in 23.4 every 16 days

3.6 litres per

year (-2.1%)
24.0

9 Total Liquid Milk Disguised Data; Tetra Pak BETA

 Channel Development
Liquid Milk Volume in Mio Litres Private Label Represents 28.1% and Growing

10 Total Liquid Milk Source: AC Nielsen Disguised Data; Tetra Pak BETA
 Trends in the value chain

Raw Material Food Industry Channels Consumers

11 Disguised Data; Tetra Pak BETA

 Trends in the Value Chain

Raw Material Food Industry Channels Consumers

Less quota available to farmers

than consumption.
Imports growing -- mostly retail
brands from neighbouring
countries. 80 Mio L Packed
Liquid Milk (2008)

12 Disguised Data; Tetra Pak BETA

 Trends in the Value Chain

Raw Material Food Industry Channels Consumers

Concentration.
Top 3 National Brands almost
42% MS
Top 3 retailers almost 20%
Low Margins
except in Enriched Milk
3 Types of Industries:
Brand Owners
Medium / Regional Brands
Co-Packers
13 Disguised Data; Tetra Pak BETA
 Industry
3 Types of Business

Producers Co-packers Producers

National Brands Retail Brands Regional Brands

Over 20
regional
players

14 Disguised Data; Tetra Pak BETA

 Trends in the Value Chain

Raw Material Food Industry Channels Consumers

Distributor brands growing and

comprising 28.1% MS (+ 3 points to
previous year)

Distributor brands well perceived and

22% cheaper (0.65 / litre) than national
brands

Consumers willing to pay high prices;

premium brands around 0.82 / litre

Retailers looking for better logistics (half

pallet)

15 Disguised Data; Tetra Pak BETA

 Trends in the value chain

Raw Material Food Industry Channels Consumers

Milk Per Capita

Consumption is 69
litres per person / year

Consumers looking for:

Convenience
Pleasure
Health
Price

16 Disguised Data; Tetra Pak BETA

Country BETA:
Customers
 Market Share by Customer (Litres)

18 Total Liquid Milk Disguised Data; Tetra Pak BETA

 Retailer Brand (Private Label) Shares (Litres)

19 Total Liquid Milk Disguised Data; Tetra Pak BETA

 Two segments
Different Message to Consumer

Price Driven Segment

X Led by Private Label: ABC, DCE

X Balance: PRICE vs. attributes / brand Value for Money

Value Added Segment

Quality

X Led by National Brands: Paarlant, Pancerol, Cabana

Health
X Balance: ATTRIBUTES / BRAND vs. price

Natural

20 Disguised Data; Tetra Pak BETA

 Customer Base Concentration (Dairy Customers Only)
164 51
100% --
2010 Dairy Target Volume

21 Disguised Data; Tetra Pak BETA

 Paarlant

1971 Paarlant takes control of a milk cooperative in Alpha

province

Carries out tests with different packages to ensure the

quality preservation of the milk. All of the tests fail.

1974 - First Betan company to commercialize the UHT treatment in

an aseptic package with Tetra Brik Aseptic.

1981 - First in Betan market to launch skimmed and semi-skimmed milk.

95% Manufacturers Brands -- 5% Private Label

80% Classic Milk 20% Enriched Milk

22 Disguised Data; Tetra Pak BETA

 Pancerol

1996 - First Betan company to launch Milk with added Calcium

(the beginning of enriched milk)

2001 - First Betan company to commercialize Skimmed Milk

Enriched with Omega 3

100% Manufacturers Brands

60% Classic Milk 40% Enriched Milk

23 Disguised Data; Tetra Pak BETA

 Cabana

1974 - Founding of Cabana. Merger of cooperatives in Gamma and

Omega provinces

1977 - First network of fixed fridge tanks supported by the

Ministry of Agriculture.

2006 - First company to launch in Betan market milk with

Tonalin (reduces body fat).

80% Manufacturers Brands -- 20% Private Label

70% Classic Milk 30% Enriched Milk

24 Disguised Data; Tetra Pak BETA

 Saporona

1985 Merger of dairies in Southern Beta.

1999 Controlling rights purchased by retailer ABC. Started gearing

up for Private Label production.

2003 Expanded sales into neighbouring countries. Local retailers

in two countries buy minority stakes.

35% Manufacturers Brands -- 65% Private Label

85% Classic Milk 15% Enriched Milk

25 Disguised Data; Tetra Pak BETA

 Installed Base in Major Customers
Overcapacity a Growing Problem

Total Newer
Older Technology
Customer Filling Technology
Machines TP A3 TBA/22 TBA/21 TBA/8 TBA/9 TBA/3

Paarlant 37 8 10 3 11 5

Pancerol 23 14 7 2

Cabana 34 15 4 8 7

Saporona 44 18 2 4 14 3 3

Average Age of Filling Machines:

Market-wide: 12.5 yrs.; Major Customers: 10.4 yrs.

26 Disguised Data; Tetra Pak BETA

 Country BETA:
Retailers / Channels
 Channel Development
Share of Liquid Milk Sold
Hard Discount grows

%pts

+0,5%

+0,4%

28 Total Liquid Milk Disguised Data; Tetra Pak BETA

 Channel Development
Price Gap between Manufacturers Brands and Private Label

Average Average
Price () Price ()

Manufacturers Classic 0.75

0.82
Brand Enriched 1.02
Classic 0.62
Private Label 0.65
Enriched 0.89

29 Total Ambient Liquid Milk: Sources: AC_Nielsen Disguised Data; Tetra Pak BETA
Long Life Classic Milk
 Industry
Manufacturers Brand Classic Milk

Retailer
Margin

Industr
y
Margin

31 Disguised Data; Tetra Pak BETA

 Industry
Retail Brand (Private Label) Classic Milk

Retailer
Margin
Industr
y
Margin

32 Disguised Data; Tetra Pak BETA

 Industry
Premium Brand Enriched Milk

Retailer
Margin

Industr
y
Margin

33 Disguised Data; Tetra Pak BETA

 Industry
Retail Brand (Private Label) Enriched Milk

Retailer
Margin

Industr
y
Margin

34 Disguised Data; Tetra Pak BETA

Share of Branded vs. Private Label (%)

Classic Milk Enriched Milk

(3,229 Mio. L) (890 Mio. L)

Disguised Data; Tetra Pak BETA

Country BETA:
Consumers
Results of U&A Study, Dec. 2007
(549 respondents across 5 cities)
 Who is Making/Influencing the PURCHASE DECISION?
By Milk Type
Who in your HH take the milk purchase decision or influence it? Multiple answer

Women are the main purchase decision-makers regardless the milk type.

WHOLE SEMI-SKIMMED SKIMMED ENRICHED

MILK (224) MILK (234) MILK (125) MILK (116)

76% Female 89% Female 86% Female 88% Female

vs 24%Male vs 11%Male vs 14%Male vs 11%Male

37 Disguised Data; Tetra Pak BETA

 Consumption habits -- WHAT
WHAT IS MOST CONSUMED

X WHOLE MILK followed by SEMI SKIMMED. Then ENRICHED.

CONSUMPTION FREQUENCY BY INDIVIDUAL HABITS:

X CLASSIC MILK is consumed 5-6 times a week in average while OTHER

MILK TYPES & DAIRY PRODUCTS show less frequency.
WHOLE MILK is consumed more often by children
SEMI is consumed in the 3 age groups, but slightly more by adults.
SKIMMED is consumed more often by adults and elders
X ENRICHED similar in the 3 groups
X PROBIOTIC & MILKSHAKES children
X LIQUID YOUGHURT children & adults.

38 Disguised Data; Tetra Pak BETA

 Relationship Between Consumer and Dairy Products
In this list of products tell me wich have you heard of? Have you ever
personally tried? Are consumed nowadays in your HH? Types of milk are
purchased for anyone in the HH nowadays? Spontaneous and Multiple
% RATIO
PURCHASE
/ AWARE*
AWARE OF Personally TRIED CONSUMED by HH PURCHASED

23

45

44

24

32

11

29

23

34

*Red significantly less; Green significantly more

39 Disguised Data; Tetra Pak BETA

 Consumption Frequency per Milk Type By Individual Habits
For each of the milk type, please tell me how often you use it, including in tea or coffee and
for cooking. How often do you use them?(% Prompted answer)
CHILDREN (104) ADULTS (342) ELDERS (103)

Every day + Once a week +

Once a month + Never
Several times a week Several times a month
Less often

40 Disguised Data; Tetra Pak BETA

 Where is Milk Consumed
X 8/9 out of 10 people are drinking the milk AT HOME.
X When OUT OF HOME, bar/coffee shops are the most common place.

At which of these places out of your

home do you consume this type of milk?
%
In a Caf or Bar 81
At work 30
When out for leisure/socialisin 7
On parks / open spaces 1
OUT OF HOME
PLACE OF USAGE PER OCCASSION
At Home Outside Home
Stained milk 40 32
Cold plain milk 12 8
With cocoa/chocolate 12
With bakery items 9 20
Stained the coffee 8 28
AD ULTS BASE (288) (25)

41 Disguised Data; Tetra Pak BETA

 Consumptions Occasions
By type of Milk

Think about the different occasions on which you consume or use milk. For each type of milk that
you use at least once per week, please tell me on which of these occasions do you use them.

WHOLE MILK SEMI-SKIMMED MILK SKIMMED MILK

* On the graphics where children and adults information

does not appears, its because of the small sample base.

42 Disguised Data; Tetra Pak BETA

 Consumptions Occasions
By type of Milk

Think about the different occasions on which you consume or use milk. For each type of milk that
you use at least once per week, please tell me on which of these occasions do you use them.

ENRICHED MILK LIQUID YOGHURT

* On the graphics where children and adults information

does not appears, its because of the small sample base.

43 Disguised Data; Tetra Pak BETA

 Main Usage Occasion

44 Disguised Data; Tetra Pak BETA

 Cooking
COOKING EXPERIENCE

X 69% use milk cooking, either as main ingredient or additional. Only 54% of males cook
with milk vs 72% females.
X By HH type, the 1 person HH are the ones who cook with milk the less.
X One glass or less is used for cooking.
X From a jug/cylinder (43%)or a glass/cup (40%).
X During the lunch (55%) and dinner (20%).

Main trend is using milk for cooking as often as last year (64%).

X 50% for males. 67% in females

45 Disguised Data; Tetra Pak BETA

 Use of Milk to Cook
Used as a MAIN INGREDIENT (i.e. sweet sauces)
BASE: ADULT (83)

QUANTITY TYPE OF HOW TO USE MOMENT OF

PACKAGING THE DAY

46 Disguised Data; Tetra Pak BETA

 Use of Milk to Cook
Used as an ADDITIONAL INGREDIENT (i.e. addition to a recipe)
BASE: ADULT (106)

QUANTITY TYPE OF HOW TO USE MOMENT OF

PACKAGING THE DAY

47 Disguised Data; Tetra Pak BETA

 Association of Attributes to Milk Types
Please, tell me what three attributes comes to mind for
each type of milk that you usually consume?

ENRICHED M. (121) WHOLE M. (251)

% Mentions: 98%
Average mentions: 2.9
% mentions 100%
Average mentions: 3.0

48 Disguised Data; Tetra Pak BETA

 Association of Attributes to Milk Types
Please, tell me what three attributes comes to mind for
each type of milk that you usually consume?

SEMI-SKIMMED M.(239) SKIMMED M. (132)

% Mentions: 99%
% Mentions: 98%
Average mentions: 2.9
Average mentions: 2.8

49 Disguised Data; Tetra Pak BETA

 Consumption Habits
HOW is it used
X Children 4-12 main usage are cocoa/chocolate, then muffins & biscuits.
X Adults and elders show similar usage patterns. And the most common usage (although not
exclusive) is whitening.

HOW MUCH do they consume?

X 1 glass a day is the common pattern in every milk type.

HOW MUCH milk is consumed each occasion

X 1 glass a day, as well, except when cooking (less than 1 glass).

HOW IS IT USED?
X They take the milk from CARTON PACK WITH SCREW CAP, regardless usage occasion,
X except when cooking, moment when they pour milk from CARTON PACK WITH FLIP CAP or
WITH NO OPENING, after pouring it in a GLASS/CUP or using a JUG/CYLINDER.
X MILK WITH CEREALS is evenly consumed from a CUP/GLASS or BOWL.
X In the rest of occasions (large pouring, whitening, OTG) people pour it into a CUP/GLASS.

50 Disguised Data; Tetra Pak BETA

 Usage Occasions combined with Moments
X LARGE POURING (cold or hot) is focused in BREAKFAST, evening meal and before going
to bed.

X WHITENNING USAGES (either with coffee or tea) are focused in BREAKFAST, coffee time
and evening meal.

X MILK WITH CEREALS are used in BREAKFAST.

X MILK WITH COCOA OR CHOCOLATE for BREAKFAST and EVENING MEALS.

X MILK COOKING is focused in the LUNCH (over 50%) and then in the night meals.

X WITH MUFFINS & BISCUITS in BREAKFAST and then in the evening meal.

51 Disguised Data; Tetra Pak BETA

 Packaging Evaluation
Lets remember that product conservation (quality, hygiene) and functional criteria connected to
opening and re-close are HIGHLY RELEVANT PACKAGING CRITERIA.
On the other hand RECYCLING is a MINOR ASPECTS for consumers.
Now, CARTON packs are considered to performs better than plastic in all those criteria.
Other criteria directly connected with the PACK FORMAT, such as SIZE and MULTIPACK get very
few mentions regarding as relevance.

PACKS PERFORMANCE IN MILK (1 to 10)

X All packs evaluated pass (more than 5.0)

X TBA 1000 ml either Sq or Slim perform the best in every usage occasion, generally getting score 7
or more.
X On the other hand, TBA 1000 ml Base worst in performance (5.7)
X Plastic bottles have a fairly good performance (in the middle), better for 1500 ml than 1000ml.

52 Disguised Data; Tetra Pak BETA

 Evaluation of Comparative Materials
Which one is better packing milk carton or plastic? (%)

Total Base : (549)

53 Disguised Data; Tetra Pak BETA

 Relevant Attributes of Milk Packaging
Please tell me which three are most important to you? (% Prompted answer)

% TOTAL
MENTIONS
It protects the quality of the
product inside well 35

30
Is easy to open

It is higyenic 28

It does not leak once re-closed 22

It is easy to re-close 18

It is confortable to hold 16

It easy to pour from 14

Is easy to handle 13

It is easy to store 12
It conveys freshness
11
Is robust
11
It is stable
10

Total Base : (549)

54 Disguised Data; Tetra Pak BETA

 Attribute Importance of Milk Packaging (I)
These attributes of milk packaging, how important each one is to you.
(% and average) Scale from 1 to 5, where 5 is very important and 1 is not important at all.

Average: 4.5 4,4 4,3 4,3 4,3 4,3 4,3 4,2 4,2 4,1 4,1 4,1 4,1 4,1

Total Base : (549)

55 Disguised Data; Tetra Pak BETA

 Attribute Importance of Milk Packaging (II)
These attributes of milk packaging, how important each one is to you.
(% and average) Scale from 1 to 5, where 5 is very important and 1 is not important at all.

Average: 4.0 4,0 4,0 3,9 3,9 3,6 3,5 3,4 3,4 3,4 3,2 3,2 2,5 2,3

Total Base : (549)

56 Disguised Data; Tetra Pak BETA

 Environment
RECYCLING ATTITUDE:

X 75% HH have a established habit of recycling. It a most common pattern in HH

over 45 y.o.
X 14% do NOT recycle at all. Only 4% of HH show an attitude of no interest in
recycling. The rest justify their behaviour in lack of time or recycling facilities.

TYPE OF PACKAGING RECYCLED:

X Brick and paper are the most commonly recycled packs, which are easier to
recycled. Moreover, the CONVENIENCE AT RECYCLING IS INFLUENCING THE
HH BEHAVIOUR in intensity. This means that there is no real conscience of the
need to recycle.
X FOLDING THE PACKS FLAT and SQUASHING THEM DOWN are most
widespread recycling methods. More common in housewives +44 y.o.
X While 1 out of 4 young HH just recycle the packaging in their ORIGINAL FORM.

The older the respondent, the more relevant are considered the RENEWABLE
SOURCES.

57 Disguised Data; Tetra Pak BETA

 Attitude Toward Recycling Milk Packaging
Which of these statements best describes your family attitude towards recycling and which of
these materials to you regularly recycle? (%) Prompted . Single answer

50% in 44+ y.o.

75%
RECYCLES

Recycle Base : (472)

Total Base : (549)

58 Disguised Data; Tetra Pak BETA

 Attitude Toward Recycling Milk Packaging
What is your family attitude towards recycling? (%) Prompted. Single answer

We are not interested

It is too difficult, and it is

too many time

There are not many

services neither facilities
around

We dont know how to

recycling

Do not recycle Base: (77) Total Base : (549)

59 Disguised Data; Tetra Pak BETA