- Growth beyond Germany´s borders
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Growth beyond Germany's borders
The Lambertz Group generated growth of 1.3 percent in fiscal 2011/2012, realising revenues of around 560 million euros. Following high increases in sales in the last few years, the Group had to accept the realities of a declining baked goods market, currency devaluations in some Eastern European states and unfavourable weather conditions during the festive gingerbread season (autumn/Christmas). The small rise in revenues was primarily achieved outside Europe, with higher selling prices and stronger distribution the main drivers. In view of the circumstances, Lambertz Group management is satisfied with the sales performance achieved.
Following an increase of 4.5 percent in Christmas seasonal goods sales in 2010, Lambertz Group revenues in 2011 rose by 1.2 percent. This was mainly due to price adjustments. The small decline in sales volumes was the result of the very mild temperatures encountered in October and November 2011.
The rise in revenues generated by our year-round articles was 1.4 percent. As in previous years, this was primarily due to our international business performance. The share of sales generated in South America, the USA and Asia showed particularly notable increases. Within Europe, the UK and Austria showed solid development.
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In value terms, revenues generated by this category rose by 1.2 percent.
Unlike in the previous year (2010), summery temperatures persisted throughout the 2011 autumn and even into the winter. As a consequence, volume sales fell short of the expectations of both Lambertz and the retail sector. In view of the uncommon weather conditions, however, the Lambertz management still regards the results achieved as satisfactory.
History and tradition are an integral part of the festive season. Hence, the traditional brands of Lambertz, Kinkartz, Weiss and Haeberlein-Metzger continued to perform well in their respective markets. With Nürnberger Lebkuchen (Nuremberg gingerbread cookies) and Aachener Printen (Aachen imprinted gingerbread cookies), moreover, these brands also encompass products with legally protected geographical designations of origin. The Lambertz Group regrets that, with the withdrawal of Bahlsen, the seasonal products market will be losing a major brand “personality” in the coming year.
The associated market segments developed as follows:
Weiss was able to consolidate its position as market leader, assisted by the brand Weissella achieving above-average growth rates. Segment sales came in at 88.7 million euros. As a strong, traditional brand for Nuremberg products, Haeberlein-Metzger was one of the winners in terms of consumer popularity. Despite the high prices commanded by the premium product, the brand succeeded in attracting new devotees. In all, Haeberlein Metzger posted sales of 21.1 million euros. Dominosteine (domino squares – a type of layered petit-four gingerbread) and Printen (coated gingerbread with imprinted motifs) are marketed under the Kinkartz brand, which generated revenues of 36.2 million euros. In all, the autumn baked goods market experienced a decline in volume sales of around 5 percent. With a decrease in volume of 2.6 percent, therefore, the Lambertz Group put in a solid performance, with the volume of Printen cookies sold actually increasing.
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The increase in sales of 1.4 percent was achieved primarily through selling price adjustments.
The slight decline in volumes in the domestic market was more than offset by better distribution on other continents.
Despite the still rising sales of BIO (organic) oatmeal cookies and our confectionery assortments, Lambertz is concerned at the development of the overall baked goods market in recent years. The baked confectionery market in Germany continues to suffer from declining volumes and stagnation. To compensate, greater efforts and increased investments are required abroad in order to generate revenue and volume growth. The sales team outside Germany is therefore to be strengthened across the board.
In all, the export share of the Lambertz Group (excluding Lambertz Polonia) increased to 16.5 percent.
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Sales of Lambertz Polonia were an exact repeat of the previous financial year. However, due to foreign exchange differences, revenues decreased to 38.2 million euros. Owing to the economic situation in Hungary, Romania and some Baltic states, minor volume reductions also had to be absorbed.
Competition is also becoming tougher in the domestic Polish market. Because of the economic situation in which consumers find themselves, it was even more difficult there than in Germany to raise prices.
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In the last financial year, our wholly owned subsidiary Henry Lambertz Inc. again achieved an increase in sales to 19.5 million euros.
Nowadays, Lambertz’s products can also be found all year round in major US retail chains such as Walmart, Sam’s Club, Walgreens and Trader Joe’s.
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Raw materials
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Other facts and figures
The Lambertz Group operates seven factories, one of which is located in Poland. These plants have a total of 25 baking lines, two “Dominosteine” lines, three lines for pralines and chocolate products, six mixing lines and a wafer machine. In the run-up to the festive season, the factories operate to full capacity, employing a three-shift system on six to seven days per week.
The workforce currently totals 3,450, which is on a par with the prior-year figure.
To the overviewIn fiscal 2010/2011, the Lambertz Group invested 13.5 million euros in plant facilities and production technology. The focus of these expenditures was on expanding our production lines, developing and rationalising our factories – particularly in our Aachen and Nuremberg manufacturing centres with their provenance-protected products – and also in Neu Ulm where we are endeavouring to gain cost leadership in the manufacture of our low-priced line of sales campaign products.
In the Aachen parent plant, immediately after the end of the autumn/Christmas season, one of the lines used for the manufacture of Printen gingerbread cookies was completely refurbished from shaping the dough to baking, including installation of a more efficient oven. Further investments were made to enhance manufacturing and packaging flexibility in order to enable use of the seven oven lines of the plant for a more diverse range of products and thus increase output capacity.
In the Nuremberg plant, a new oven for the manufacture of Oblaten (wafer-based) and Elisen (almond-based) gingerbread cookies was commissioned, with in-plant handling also being optimised through the installation of modern, high-performance spiral conveyors. This has effectively removed bottlenecking and led to an increase in performance. Further funds were allocated to a more long-term plan involving the modernisation – over several years – of the plant’s infrastructure.
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Sustainability
It has long been an integral part of the Lambertz corporate code to show responsibility in the use and consumption of natural resources. Hence the company has initiated a number of projects aligned to enhancing energy and packaging efficiency.
We also expect our raw material suppliers to follow appropriate sustainability standards, and indeed, Lambertz was one of the first manufacturers in Germany to switch completely to sustainable palm oil. All the Group’s manufacturing plants are certified for the use of sustainable palm oil. And last year, Lambertz also succeeded in developing a baking mix with no palm oil at all.
Lambertz likewise intends to only use UTZ-certified cocoa going forward. This principle will be implemented for all products of the Lambertz brand effective as from 2013.
Lambertz further insists on only using barn/deep-litter eggs or egg products and requires all egg suppliers to be appropriately certified. German KAT certification (issued by the Association for Controlled Alternative Animal Husbandry) is a constituent part of all contracts with such vendors.
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Sports sponsorship
The Lambertz Group has had an active involvement in sports sponsorship for many years. Represented by Dr. Hermann Bühlbecker, the company is a long-standing sponsor of CHIO Aachen, which attracts some 350,000 spectators and is the world’s largest equestrian festival. Dr. Bühlbecker is also a member of the advisory board of Aachen-Laurensberger Rennverein e. V., the association that organises the festival. In conjunction with the CHIO, Lambertz sponsors the Lambertz Nations’ Dressage Prize and co-organises the high-profile Media Night that opens the festival, attended by around 1,000 guests.
The tennis team Lambertz Kurhaus Aachen was again crowned German champions this year, having come top of Division 1 in the national league. The team, which has signed almost all of Germany’s Davis Cup players, has now won the title four times in the last five years.
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Social Responsibility
Even and particularly in times of crisis, Lambertz has retained and extended its focused commitment towards social progress. The company regards this as an investment in the future that pays dividends over the medium and long term.
For the last seven years, Dr. Hermann Bühlbecker has been involved in the Clinton Global Initiative (CGI) as part of his international networking effort in this domain, and joins various heads of state, business leaders and prominent personalities from public life at the annual CGI summit held in New York. The focus is on fighting poverty and the promotion of better education and training policy.
Other carefully selected aid projects that deliver outstanding results in their field are also supported by the Lambertz Group. In the area of health and medical research, these include the amfAR (American Foundation for AIDS Research) and the Elton John Aids Foundation. A number of national charities likewise benefit from the involvement of the Lambertz Group.
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Outlook
The conditions at the start of the 2012 autumn/Christmas season are significantly better than they were in the previous year. The temperatures are cooler and, gratifyingly, the trade distributed our products about one week earlier than was the case in 2011. Initial retail sales have been good, according to trade estimates.
The absolute highlight of 2013 will be the company’s 325th anniversary celebrations. We will be pursuing consumer promotions, customer campaigns and other activities that we cannot yet officially announce. The Lambertz calendar produced in September and the Lambertz "Monday Night”, due to take place in Cologne – as it does every year – have our 325th birthday as their theme.
To the overview
