SUSTAINABLE VALUE
CORE DAIRY
FOOD SERVICE
PAEDIATRICS
SPORTS & ACTIVE
MEDICAL & AGEING
Prioritising New Zealandmilk
Innovation To create superior value for our customers and our Co-operative
Efficiency Unlock greater value from our scale efficiency and focus on execution
Sustainability To do what’s right for the long term good and meet consumer and community needs
OUR STRATEGY PRIORITISES NEW ZEALAND MILK Our strategy is about prioritising New Zealand milk and growing demand for it by understanding our customers, and differentiating our Co-op’s milk through innovation, sustainability and efficiency . We are focusing on five categories – Core Dairy (cream, butter, cheese, milk powder), Foodservice, Paediatrics, Sports & Active and Medical & Ageing. We already have a competitive advantage in some of these five categories and in others we are drawing on our dairy know-how and innovation capabilities to strengthen our positions. The Co-operative Difference is building on the work farmers have done over recent years to earn more premiums for our products based on their New Zealand provenance and sustainability performance. We measure success on how we’re
Raising additional capital is not the purpose of this review. Having adequate and sustainable access to capital to fund our strategy is always front of mind, and raising additional capital is not the purpose of this review. We will fund our strategy through a strong balance sheet, cashflow, and through leveraging our IP and innovation capability to partner in new products and categories where it makes sense. This capital structure review is about prioritising New Zealand milk, protecting farmer ownership and supporting a sustainable milk supply over the longer term. Our strategy is dynamic, and we will always be reviewing our portfolio – asking ourselves what each asset is worth to us now and into the future. We will continue to turnaround key parts of our portfolio and divest non-core businesses to support new investments as necessary. Our focus is on maintaining a strong balance sheet to support growth.
We’re building good momentum and we are
well positioned to make the most of future opportunities. We have been making good progress across the Co-op, including improved business performance, a stronger balance sheet with reduced debt levels and dividend payments being resumed. Our strategic direction, combined with a diversified portfolio, has positioned us well to navigate through a period of unprecedented global uncertainty as a result of COVID-19. While there is still more work to do, we remain on track to deliver our targets.
progressing towards our three interconnected goals – Healthy People, Healthy Environment and Healthy Business.
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