Our new strategy places greater emphasis on our strengths and capitalises on new opportunities – a pivotal moment as we redefine our new purpose as "Re-imagining Global Agriculture and Food Systems".
It transitions from the current “Olam Way” or “Olam 1.0” to “Olam 2.0” to meet evolving consumer preferences, after spending the past nearly 30 years honing our business model.
We have identified four key trends and opportunities underpinning the food and agri-sector which have influenced our strategies. Driven by consumers and advances in technology, these trends include increasing demand for healthier foods, traceable and sustainable sourcing, e-commerce and the rise of “purpose” brands.
This trend refers to the consumption of healthy, high nutritional value food, customisation of diets, premiumisation, authenticity and the use of natural ingredients. These include natural, organic, local ingredients, clean labels and the slow-food movement.
Premiumisation refers to the phenomena where consumers prioritise spending on food (or things) that matter most to them, while cutting back on other expenditure, with greater emphasis on quality as well as functional ingredients. Suppliers can capture value and secure pricing premiums by differentiating their offerings with value-added solutions that reflect these important consumer behaviours. This has led to the emergence of new cool, chic niche brands which are perceived to be able to meet these needs.
This trend refers to the consumption of food that is friendly to the environment, ethically sourced and sustainably produced. In recent years, there has been a growing interest in the footprint of all the food, food ingredients and feed ingredients that are supplied to customers and increasingly, consumers are seeking assurance and certification of the supply chain and the supply chain visibility, provenance and traceability that establishes a clear and direct link to the producer.
This trend refers to the growing consumption of food (or things) outside of the home and on-the-go, omni-channel purchasing instead of purchasing in shops, the impact of mobile connectivity on consumer behaviours and food choices being made through social media recommendations.
This trend refers to how food, feed and fibre are produced, such as through the use of advance robotics, drones, unmanned vehicles, big data and analytics, precision agriculture and digital engagement and investments in automation and technology. For example, the Group has Internet of Things (“IoT”) sensors on its almond trees to monitor stress levels so that it can respond and improve water usage efficiencies by irrigating as required at precise timings with a precise quantity of water. Wingspan drones are also used to map its farms and plantations and aid exact intervention in disease infestations and nutritional deficiency issues. In its factories, IoT sensors are used in predictable preventive maintenance.
Planned investment of US$3.5 billion (including US$1 billion maintenance capital expenditure) in 12 prioritised high potential growth, proven businesses – Edible Nuts, Cocoa, Grains and Animal Feed, Coffee, Cotton, Spices, Edible Oils, Infrastructure and Logistics, Dairy, Rice, Packaged Foods and Commodity Financial Services.
Release of US$1.6 billion by de-prioritising and divesting four businesses – Sugar, Rubber, Wood Products, Fertiliser – and other non-core businesses and assets that no longer align with our strategic priorities. The divestments will be completed in a responsible and orderly manner during this plan period.
Drive margin improvement by enhancing cost competitiveness and optimising capital efficiency and productivity.
Generate additional revenue streams by offering differentiated products/services such as AtSource, risk management solutions, value-added services, ingredients and product innovation; and from both existing and new channels such as co-manufacturing, the food service sector and e-commerce for small and medium-sized customers.
Explore partnerships and investments in new engines for growth by assessing opportunities to deliver to the consumers and farmers of tomorrow.
Achieve operational excellence through tracking metrics that matter, digital dashboards and performance scorecards, execution discipline and continuous improvement.Discover more
Continue to keep sustainability at the heart of the business and re-generate food and farming landscapes while capitalising on changing consumer preferences, and trends - “right-for-me”, “right-for-the-planet”, “right-for-the-producer”.Discover more
Lead the industry’s digital transformation and disruption by identifying, validating and deploying initiatives to capture and create value.Read more