Orkla ASA (Orkla) is a supplier of branded consumer goods to the grocery, out-of-home and bakery sectors, serving predominately the Nordic and Baltic regions. Orkla’s Branded Consumer Goods business comprises Orkla Foods, Orkla Confectionery & Snacks, Orkla Care and Orkla Food Ingredients businesses. Orkla also has operations organized under the Orkla Investments. The company is headquartered in Norway.
Improving the nutritional profile of the company’s food products is a clear priority for Orkla. The company has established nutrition and health objectives across its brands and regions of operation. Examples include Orkla’s commitment to reduce 80 tons of salt from its Norwegian products from 2014 to 2018. Additionally, Orkla Foods Sweden aims to reduce the amount of added sugar and the total sugar content by 1300 tons by 2020, using a 2015 baseline. While the company has a broad goal to sustainably source key raw materials by 2020, unique to Orkla is its efforts to eliminate palm oil from many of its products. Group-wide, Orkla has reduced palm oil use by approximately 70%. For palm oil which continues to be used, the company’s goal is to obtain palm oil that is fully traceable to the plantation level. Additionally, through its “Improved Resource and Energy Efficiency” program, Orkla is working to improve the efficiency of its production processes with a goal of 20% efficiency improvement by 2020. Orkla provides training for its employees and reports on the number of training hours as well as on participation rates; the company shows year on year improvements across both metrics.
Orkla has a group-wide goal to reduce water consumption from all sources 20% by 2020, using a 2014 baseline. Unfortunately, the company has not demonstrated any progress towards this goal.
Industry: Consumer Staples
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/2017 and may not reflect current opinions or subsequent events.