ON-THE-GO

for our Customers
Lekkerland COMPANY MAGAZINE 2016
To the annual report 2016
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Dear readers,

”On-the-go for our customers“ – a very warm welcome to Lekkerland’s customer magazine 2016. Here you will find a selection of topics that were important for us and our customers in 2016.

You can find an overview about the results 2016 here. There full version of the annual report 2016 can be downloaded here.

Immerse yourself in the world of Lekkerland. We hope you have a lot of fun reading all about us.

The topics are diverse and exciting. Immerse yourself in the world of Lekkerland. We hope you have a lot of fun reading all about us.

Your Board of Management

LEKKERLAND
AT A GLANCE

About 4,800 Employees
About 90,000 Points of sale in 6 countries.
€13 billion Revenues in 2016.
Lekkerland Shop

OUR OBJECTIVE

Lekkerland is the preferred 360 degree concept provider for all channels of on-the-go consumption and all aspects of the convenience business. The success of our customers is our motivation.

OUR CLAIM

360 degree service

The year 2016 was just as varied as it was successful. In an interview, the Board of Management reports on the challenges and highlights.
Mr Steppe, at the end of 2016, you took over as Chairman of the Board of Management. What have you experienced during your first few months as CEO?
PATRICK STEPPE_I have known Lekkerland for many years. Nevertheless, the first few weeks as Chairman of the Board of Management were very exciting and new. I thought it was important above all to show our employees that everything would not be different after the change. However, we will put our customers, their needs and requirements even more into focus. Overall, Lekkerland is in a good position and that is demonstrated by the good result from last year.
What exactly does the result look like for 2016?
EDGAR LANGE_From a financial perspective, the year 2016 went well. We were able to increase our sales to 13 billion euros, and the gross profit and the result from operations before financial result also underwent a further increase.
What were the highlights last year from your point of view?
PATRICK STEPPE_It is not so easy to pick out individual points here because we achieved a great deal in 2016. From my point of view the opening of the first test stores for our holistic “Frischwerk” shop concept in Germany was a genuine highlight. The large number of new customer contracts that we have been able to conclude throughout Europe and existing contracts we were able to extend tell their own story. The international framework contract with Shell is a particular highlight.
Patrick Steppe

PATRICK STEPPE Chief Executive Officer (CEO)

Responsible for strategy, business development, sales / marketing, purchasing, category management, human resources (HR), and communications, as well as the management of all national companies in the Lekkerland Group

EDGAR LANGE_The launch of our IT project Become One in Switzerland! I found the close cooperation between colleagues from all the countries particularly impressive, alongside the high level of commitment of each individual. The takeover of the Contadis customer base in Switzerland was also an important strategic step in 2016.

KAY SCHIEBUR_The opening of the fifth full-range warehouse in Mannheim, Germany, was a highlight in my sphere. It closed a strategic gap. The extension of the deep-frozen area in Quer, Spain, also enables us to grow further. The Netherlands were a pioneer in sustainability in 2016 when they earned the Lean & Green 2nd Star Award.

What are the focus topics in the year 2017?
PATRICK STEPPE_The customer is at the centre – that is what we are concentrating on. We want to offer solutions that allow our customers to stay ahead of the competition. We want their shops to be even more attractive for consumers and as a result even more successful. In concrete terms this means that we are continuing to focus on shop concepts like “Frischwerk”. We also want to expand food service training offers. All these activities can be summarised in two words: “Retail Enablement”.
DR. EDGAR C. LANGE

DR. EDGAR C. LANGE Chief Financial Officer (CFO)

Responsible for finance, controlling, treasury, legal affairs, auditing, risk management / internal control system (ICS), IT and mergers & acquisitions (M&A)

Is this associated with an adjustment of the “Convenience 2020” Strategy?

PATRICK STEPPE_We are operating in a very dynamic environment. Changes are the name of the game. “Convenience 2020” is and remains the strategy that we are pursuing together. However, we will define new focus issues over the coming years so that we are able to provide a response to the developments in the sector. Thereby we will concentrate on solutions in retail. This is because we would like to be the 360 degree concept provider for our customers.

Lekkerland will therefore continue to change?
KAY SCHIEBUR_Since I started at Lekkerland in 2002, the company has been undergoing a continual process of change. And that is good. In future, we will work even more intensively on issues like digitalisation. Another example is provided by new logistics solutions which arise from the increasing demand for fresh and ultra-fresh products.
What result are you expecting for 2017?
EDGAR LANGE_The year 2017 will be defined primarily by two developments. The volume development in the market for tobacco goods is declining in our core markets. Furthermore, a major customer in Germany is partially reducing its business relationship with Lekkerland. Then there are also a number of growth initiatives and programmes for bringing down costs. Overall, we are expecting a result comparable with that of the previous year.
KAY SCHIEBUR

KAY SCHIEBUR Chief Supply Chain Officer (CSCO)

Responsible for logistics, inventory management, quality and corporate responsibility (CR)

Off we go!

Our objective is to impress our customers with 360 degree services. Lekkerland therefore communicates closely with its customers and offers bespoke solutions. In 2016, we succeeded in extending numerous contracts and acquiring new customers.
AUSTRIA

The Austrian national company has succeeded in winning back its former customer Eni Austria GmbH. Since March 2016, all stations of the oil major have been supplied with the entire product range. Lekkerland has also developed a special extranet for the stations. This provides them with information such as current offers.

BELGIUM

In Belgium, various customers extended their contracts with Conway in 2016, including two mineral oil companies. The full Conway product range is supplied to both companies. Furthermore, contracts for tobacco products were prolonged with different food retailers.

GERMANY

In Germany, the contract with oil major Total ran out at the end of 2016 but it was extended. It encompasses the supply of more than 1,000 stations. Also, some 270 filling stations operated by OMV will continue to be supplied by Lekkerland.
At the same time, oil major Aral decided to transfer some 1,300 Aral-owned stations to a new partner by mid-2018 – the new partner is a retail brand. The 600 independent Aral filling stations also supplied by Lekkerland are not affected by this.
Conversely, AVIA extended its contract early. The contract comprises the supply of some 700 service stations and optimisation of a large number of shops.
In addition, a big company for on-the-go consumption extended its cooperation with Lekkerland in Germany. Until the end of 2024, Lekkerland will be supplying the product ranges tobacco goods, beverages, confectionery, non-food and e-va. A new contract was concluded with online mail-order firm Amazon, which now lists around 2,600 Lekkerland products.

Off we go!

Fresh products are stored and transported in a maximally environmentally friendly way.

SWITZERLAND

The Swiss national company succeeded in acquiring two regional oil companies. In addition, Lekkerland and Store Service AG agreed a framework supply contract. Some 80 shops will be supplied with tobacco goods and confectionery, food, beverages, non-food products and e-va.

THE NETHERLANDS

Various customers in the Netherlands extended their contracts with Lekkerland. This includes the HEMA department store chain, which has placed its trust in Lekkerland for an additional three years. The cooperation has been continuously expanded since 2004 – today Lekkerland supplies the entire food range to HEMA with the exception of bakery goods.

SPAIN

Our Spanish national company has extended contracts with restaurant chains, service-to- travellers operators and filling stations that account for 70% of the volume in 2016, and concluded new contracts. Also, a big quick service restaurant chain has put its trust in the supply chain management of Conway for a further six years. Conway is also taking charge of supply chain management for a big energy company for another three years. This includes the supply of around 900 shops.

The extension of the contract with oil major Shell at international level is particularly important.

2,500 Stations of the Shell Group

The framework contract comprises supply by Lekkerland or Conway to all of the 2,500 stations belonging to the Shell Group in Germany, Switzerland, Austria, the Netherlands, Belgium and Luxembourg. Shell has placed its trust in Lekkerland for another five years.

HOMEWORK? ALREADY DONE!
The latest logistics to meet customers’ needs, and sustainable at the same time? No problem for Lekkerland.

Accordingly, the Federal Republic’s fifth full product range warehouse for all temperature zones started up operations in Bobenheim-Roxheim, Germany, in 2016. The new building was equipped with an innovative, environmentally benign cooling technology and bundles warehouse and transport capacities which were previously distributed over four locations. This eliminates journeys between the locations amounting to some 90,000 kilometres each year.

In Quer, Spain, the logistics centre was supplemented by a further extension in the deep frozen area. “This is our response to the continual increase in demand from our customers for deep­frozen products”, explained Managing Director Pedro Giménez.

Austria is also able to present inno­vations. In Ternitz, a dry-ice filling plant was installed which fills frozen isotainers with dry ice. “The CO2 used for this is a waste product from industry and it is being reused in accordance with environmental protection,” commented Managing Director Emmanuel Fink.

When it comes to sustainability issues, Lekkerland Netherlands is impressive right down the line. After winning the “Lean & Green Star” award in 2014, the Jury was also impressed by the consistent ongoing development of measures to reduce CO2 emissions in 2016. Result: the “Lean & Green 2nd Star” award for Lekkerland Netherlands.

Active innovation

Acquisitions, projects for process optimisation, development of new concepts and products – Lekkerland is changing. Continuously. There are numerous examples of this.
”There hasn’t been anything like the gift voucher up to now.“

How do ideas for new e-va products arise?
Our innovations draw on trends from a wide range of different areas. The finance and gaming sectors are particularly exciting at the moment. Then there’s sports betting and naturally the mobile phone sector. Some of the ideas for new products are generated at Lekkerland. Start-ups or established companies approach us in other cases.


Which new idea was particularly innovative in 2016?
The gift voucher (Wunschgutschein). This allows the recipient to make a purchase in more than 500 online shops. The shopper also receives a greetings card and an envelope. There has not been a product like this up to now – and it offers an optimum solution for the dilemma of lack of space at the point of sale in filling stations and convenience stores. With this gift voucher, many onlineshops are present there. The gift voucher was a big success for shopping in the Christmas season.

Why is the financial sector so appealing for e-va?
Many people have concerns that payments made on the internet are not secure. This is why the demand for prepaid payment cards is experiencing strong growth from one year to the next. Services like those provided by our new partner MoneyGram are also of interest. They appeal to consumers who want an easy method of sending money abroad quickly, safely and without having to use a bank account or a credit card. This cooperation enables our kiosk customers to offer a money­transfer service for the first time – and they are thereby able to compete with established formats.

Veith Huxohl

Interview with Veith Huxohl
Head of Product Management Corporate electronic value at Lekkerland in Germany

gift voucher
FASTER, MORE FLEXIBLE, MORE CUSTOMER FRIENDLY:
New IT solutions are on the march.

Become One – this is the name of the project to modernise the business and IT processes at Lekkerland. In 2016, the preparations for conversion of the Swiss national company were operating at a high level of intensity. Colleagues from all the countries were involved. And success came at the beginning of January 2017 when Become One went live in Switzerland without any significant problems. Other countries will follow. The introduction of Become One also entailed installing new software on around 1,700 MDE devices in all countries. These are mini-computers for mobile data capture. Customers can use these devices to place orders with Lekkerland quickly and simply.

1,700
MDE devices were equipped with new software.
In 2016, investments were also made in the Group networks to ensure that new applications were stable and could operate with a high level of performance. One advantage of this move was that it has enabled Lekkerland to create the prerequisites for modern cloud-based solutions.
The advan­tages of the digital transformation are obvious. The working environment at Lekkerland is now tailored even more closely to the needs of employees, and at the same time we are now able to respond even faster to our customers.

Neue IT-Lösungen sind auf dem Vormarsch.
Employees’ pride: ”High Five”

You launched a programme named “High Five” to encourage better working relations. What is that?
High Five is a continuous improvement programme. We use management tools that improve our daily work on a continuous basis. At the heart of the programme are our employees: they know best where things can be improved.


What does that look like specifically?
We actively encourage employees to report potentials for improvement and train them to look for solutions themselves and to implement these. For example, each morning there is a five-minute meeting during which we discuss the previous day and consider what we can do better today. We offer working groups in which employees themselves discuss existing problems and develop proposed solutions. That is just two examples from a very long list.

It sounds so simple. Does it really work in everyday life?
We launched the programme in 2015 and since then we have expanded it bit by bit throughout the entire operations department of Lekkerland Netherlands with the help of our employees. They are very proud that their ideas visibly contribute to improvements. One example: We were able to increase productivity last year by a good 6% compared to 2014, before we introduced High Five.

High Five Roy Smolders

Short interview with Roy Smolders,
Head of the Logistics Centre in Son, The Netherlands

GROWTH THROUGH ACQUISITION:

Integration of Contadis in Switzerland

  1. 1 DECEMBER 2015.
    Agreement: Lekkerland Switzerland will take over the customer base and goods inventories of Contadis
  2. 2 FEBRUARY 2016.
    Green light: Swiss Competition Commission consents to the deal
  3. 3 SPRING 2016.
    Teams from all the departments make intensive preparations for integration
  4. 4 JULY 2016.
    Launch of supply for former Contadis customers by Lekkerland: customer base increased from 1,600 to nearly 4,000 customers

SAME SIZE ‐ MUCH MORE CONTENT
Logistic challenges for Lekkerland Switzerland: A further 400 new items were added to the previous 700 tobacco goods articles. These products had to be stored and picked. There was no space for this at the logistics centre in Brunegg. The solution: the extension of the mezzanine level which doubled the storage area available in the tobacco goods area. The expansion increased the total storage area by nearly 10 percent.

Even more transformation ...

In 2016, the programmes for promoting growth and improving profitability continued to be consistently – and successfully – pursued in Austria, Belgium, the Nether­lands and Germany. Moreover, a new management structure was rolled out in Germany. This promotes closer integration between purchasing, trade marketing, and sales. The purchasing department was restructured in Austria.

On-the-go with Anna

People in Europe are increasingly consuming on-the-go. Around 80 percent purchase food and drinks to consume outside their home. While research used to focus on consumer types in the past, analysts today are increasingly talking about situational consumption. People’s everyday routine and the needs of the individual situation determine on-the-go consumption. Consumers select the channels which fit the current situation and their needs. An example highlights this. Anna is 41 years old, she has two children, works for an insurance company and lives in the suburbs of a big city. And this is how she consumes on-the-go:

Monday 7:30 On her way to work. Filling station. Purchases: fresh roll with vegetarian spread and cappuccino.

Wednesday 13:00 Shortly before a meeting. Canteen. Purchases: Pasta dish and water.

Thursday 17:00 Picks children up from childcare. Filling station. Purchases: petrol and a gift voucher.

Saturday 10:00 Pays a visit to relatives. Service station. Purchases: audio drama and nuts.

Sunday, 13:00 Family outing. Kiosk at the zoo. Purchases: ice cream

The voice of consumers

The voice of consumers
In an interview, Lekkerland market researcher Dennis Schulze and marketing expert Professor Dr Sabine Benoit explain what consumers really want.

What expectations do consumers have today from convenience shops?
SCHULZE_ 25 years ago, bars of chocolate were the highlight at the filling station. Today, consumers on the move also expect a selection of fresh snacks, bakery goods and coffee specialities. An inviting atmosphere and service-oriented employees are also important. We have taken account of all these aspects – and a number of others – in the new “Frischwerk” test shops. The responses of our customers who were coming into the shop for the first time demonstrated that we have even exceeded their expectations there.


In other words, consumers everywhere would like to be able to purchase products like those in “Frischwerk”?
BENOIT_ Not necessarily. Generally speaking, there is a trend towards more quality and freshness and this is also reflected in the test shops. However, each shop needs to select the products that are in local demand, and this is where the competition located close to the filling station is important. Another factor is that the needs of individual consumers can be very different depending on the current situation (see the box on the left). As a shop operator, you always have to ask: What wishes of the consumers can I fulfil and which ones do I want to – and which ones go beyond that?


How are the wishes of consumers going to change in the future?
BENOIT_ One trend is undoubtedly functional food. Fresh, high­quality food and drinks with specific additional benefits are gaining importance in on-the-go consumption. These include smoothies, which substitute a portion of fruit, probiotic yoghurt shakes, lemonades with a relaxing effect, or conveniently packed nuts that provide a quick energy burst.
SCHULZE_ The fruit module launched by Lekkerland Netherlands in 2016 is a good example of this. The fresh fruits and healthy snack alternatives are a particularly big hit with women.


What is the outlook with the much discussed trend towards digitalisation?
SCHULZE_ In future, customer contact will be increasingly individual and more focused. Digital solutions often present a route for achieving this. For example, we are already working with digital price tags in our test stores and with digital promotion that is synchronised with the time of day. The next step will be to provide even more targeted predictions of future customer needs and to direct communication with customers towards those needs.


Will contact on social media become the standard in future?
BENOIT_ Undoubtedly more shop operators will build up a local community in the social web in future and communicate offers and innovations there in order to strengthen customer loyalty. Increasingly sophisticated and nuanced customer segments will allow smaller providers in particular to develop a special profile. This will enable them to address specific groups of customers selectively and serve their needs profitably.

PROF. DR. SABINE BENOIT

PROF. DR. SABINE BENOIT,
Professor for marketing at ­ Surrey Business School

Dennis Schulze

DENNIS_SCHULZE,
responsible for market research at Lekkerland

Fresh and healthy snacks are in demand on-the-go.

Fresh and healthy snacks are in demand on-the-go.

Increasingly popular: smoothies.

Increasingly popular: smoothies.

WHAT CONSUMERS REALLY WANT
The Dutch drink an average of nearly 120 litres of coffee every year, the Germans drink about 162 litres and the Austrians more than 170 litres annually. One thing is certain. Coffee is popular. But not any old coffee. Coffee needs to be well prepared and high quality. And that also applies to fast coffee on-the-go, like the coffee from the filling station.

Every third person in Germany regularly buys coffee at a filling station. A majority of the customers praise the quality and the taste of the coffee. The most popular coffee there is the Italian coffee brand Lavazza.

“Consumers today expect to find a variety of high-quality coffee specialities at a filling station,” said Leonie Effertz, Manager of Coffee Development at Lekkerland. “We know that quality is a winner and we therefore offer tailor-made coffee systems with uniformly good coffee quality.”

All-round carefree coffee ­solutions include:
  • Coffee
  • Coffee machines
  • Cups, napkins, other accessories
  • Price tags, promotional concepts, training sessions
  • Maintenance contracts
  • All-round service packages
  • Coffee furniture
High-quality coffee is popular on-the-go.

High-quality coffee is popular on-the-go.

Refuelled again

The new test concept for filling station shops from Lekkerland Germany is impressive: Fresh bread, crunchy salads and a café ­atmosphere attract customers into the shop.

Switch on, switch off – Nathan ­Catalano is testing all the systems once more. In a few hours, the first customers will come into the new shop run by Ludwig Dalacker & Sohn in Aalen near Stuttgart. Seven weeks went by from the demolition of the old filling station shop to the new shop. In response to the question as to how the shop differs from other filling station shops, the 37-year-old grinned. “Everything’s different,” he said. The shop operated by Ludwig Dalacker & Sohn under the management of Nathan Catalano is one of the first two pilot stations in the new concept being rolled out by Lekkerland Germany. The second test store is located at an Esso filling station in Hamburg. The shops are offering bakery, café and fresh food bar in one under the Frischwerk brand – alongside the classic filling station range.

“In order to safeguard the future of filling station shops over the long term, we want to establish them as the first point of contact for high-quality on-the-go consumption and attractive service packages,” commented Frank Fleck, Head of Strategy and Business Development at Lekkerland.


Wow effect included
“You notice the wow effect with every customer coming into the shop for the first time,” recounted Ina Poulus, Convenience Retail Manager at Esso Germany, about her first experiences in the test store. The highlight of the shop concept is provided by the standalone bakery – the “Backschmiede”. The space and personnel for this area are separate from the traditional sale of tobacco goods and fuel at a filling station.

Refuelled again

Nathan Catalano from Ludwig Dalacker & Sohn is proud of the new shop in his dealer-operated Aral filling station in Aalen.

360 degree freshness
“Nowadays, consumers expect to be able to purchase high-quality cappuccino, fresh snacks, salads and small hot meals at filling stations. And they want to do this in a contemporary and appealing atmosphere,” commented Frank Fleck. Filling stations have long since been the contact point for basic everyday essentials. More than half the income earned by a filling station operator is generated in the shop. That’s why Lekkerland has developed this comprehensive shop concept for filling station operators: the purpose is to increase the appeal, profit and competitiveness of the shops over the long term. “Our objective is 360 degree supply for our customers. The solution has been intensively tested since the end of 2016 and is continually being optimised on the basis of in-depth analyses of shop data and market research,” said Daniela Aldenhoven, Project Manager of the shop concept at Lekkerland.


A place to linger
“Neighbours, taxi drivers and students – a few weeks after the opening, the concept was attracting an increasing number of regular customers with its feel-good atmosphere, fresh bakery goods and high-class coffee. These customers want to take advantage of on-the-go consumption, take time out in the café or pick up some fresh bread for their evening meal,” enthused Ina Poulus from Esso.

And a taxi driver who happened to be enjoying his coffee at the shop in Hamburg added: “Having a snack at the filling station saves time. But it also needs to be good. And here it’s really good.” Actually, he only wanted to fill up with petrol, but the congenial atmosphere persuaded him to take a longer break. That’s why he is also ordering a midday meal, which is just being advertised on one of the digital displays.


In full swing
Meanwhile, the coffee machine at Nathan Catalano’s shop is in full swing. A lot of customers have a sandwich as well. Catalano and his team of twelve received intensive training for the new food and coffee concept. They have now got into a regular routine. “But it’s certainly not boring,” he laughs.

Ina Poulus

”You notice the wow effect with every customer coming into the shop for the first time.“
Ina Poulus

FRISCHWERK – HIGHLIGHTS AT A GLANCE
  • Fresh, new design for filling stations
  • Appealing feel-good atmosphere
  • Separation between classic “fuel and tobacco goods area” and food service offering
  • Range appropriate for the station
  • Complete bakery with rolls, cake, loaves of bread, etc.
  • Appealing fresh-product range, e.g. salads and wraps
  • Special offers such as “Meal Deals” and “Colourful Mugs”
  • Digital focus walls with advertising suited to the time of day
  • Additional services, e.g. charging stations for mobile phones in the café and WiFi free of charge
  • Comprehensive training for employees
  • Optimisation and shop advice based on intensive evaluation of data
  • Regularly updated handbooks
More shop concepts are on the way ...

Germany was not the only place where intensive work was being carried out on new solutions in 2016. A great deal of analysis was being carried out in other Lekkerland countries as well, and concepts were being developed. You will find out more about this in the course of the year 2017.

SHOP OPTIMISATION AT AVIA
At the beginning, Thomas Rehbaum, leaseholder of an AVIA filling station in Kamen, was sceptical. “I was worried that sales would go down.” Experts from Lekkerland had carried out a shop optimisation and analysed his shop and the competitive environment in detail. They had made some concrete suggestions for improvement in the product range and shop design. One of the suggestions was to sacrifice one gondola and make the shop more airy and more generously spaced. Initially, Thomas Rehbaum found that suggestion difficult to come to terms with.

Today, he is relieved to look back on the good development of sales and the positive responses of consumers since the refurbishment. “A rejuvenation like this for the shop is really worthwhile.” Thomas Rehbaum regularly analyses the shop together with his Lekkerland contact, seeing what effect the changes are having and where some fine-tuning may need to take place.

All in all, Lekkerland had carried out about 1,200 successful shop optimisations by the end of 2016. More intense activities in the area of food service are planned in cooperation with AVIA for 2017.

From zero to success!

From zero to success!

Claudia Kasperlik and Ulrike Klement on the terrace of their filling station shop in Huglfing.

C afé is emblazoned on the window in big letters and the terrace extends an invitation to linger. The outside of the filling station already presents an inviting profile. And inside it’s pretty obvious: The CU24 in Huglfing, Germany, is something rather special.

„We are delighted to have a partner with know-how we can benefit from.“

CU stands for Claudia Kasperlik and Ulrike Klement, the operators. Some two years ago, they took over the filling station and gave up their secure jobs for this. “Our life partners purchased the land next door in order to run the workshop. And that’s how we came to have our own filling station,” recalled Ulrike Klement.
As complete greenhorns, we quickly realised that we needed professional support, for example in the area of coffee,” commented Claudia Kasperlik. The two found a partner in Lekkerland who were able to support them on all the issues relating to the shop business.
I noticed that the coffee business was not running very well on my first visit,” commented Bernd Kohler, District Sales Manager of Lekkerland. “Together with the CU24 team we then carried out a needs analysis and implemented an all-round carefree coffee solution which immediately brought about a significant increase in coffee business.”
We’re delighted to have a partner with know-how we can benefit from,” said Claudia Kasperlik. Bernd Kohler confirmed: “The two can rely on Lekkerland. That’s because we give our customers holistic and individual advice.”

OWN BRANDS–A SALES DRIVER. ALSO FOR SUCCESSFUL A BRANDS. So OK

“About 800 people ­visit a filling station every day. But only half of them buy something in the shop. One reason for this is often price,” explained Tinneke Gies. She is the Managing Director of convivo, the own-brand centre of competence at Lekkerland providing own brands for customers of the Group.

In 2016, the product series “SO/OK” was rolled out further in Belgium, Austria, Spain, the Netherlands and Switzerland. The series includes confectionery, savoury snacks and beverages. The products have the customary high quality while prices are up to 30 percent less than the A brands. The concept is proving very popular: “We have been selling SO/OK for around a year and we are very satisfied. The products contribute genuine value added to our shop,” reported the operators of Total Borremans in the Belgian town of Bornem. “Some of our customers are continuing to buy the A brands but there are a lot of consumers who deliberately select the products at alternative prices.”

It’s no coincidence that own products and A brands mutually strengthen each other: “Own brands do not cannibalise A brands, they represent an effective complement,” explained Tinneke Gies. “They help to retain the loyalty of existing consumers and attract new ones.”

Work in 2016 therefore also focused on new brands. For example, Lekkerland Germany has been developing and testing its ultra-fresh products in the “Go Fresh” own brand. In addition, the product range was expanded by “My Basics”. This includes a high quality milk at a reasonable price. It is perfect for speciality coffees and fully automatic coffee machines.

THROUGH THE NIGHT FOR STARBUCKS LICENCE STORES

02:00 Lekkerland Logistics Centre in Oberhausen.
Driver Dirk Dünnebacke starts up his engine. The multi-temperature truck is loaded with several roll containers of milk and coffee, then there are muffins and sandwiches, but also accessories like cups and lids. The destinations for his tour: Starbucks stores in Duisburg, Essen and Düsseldorf.
Depending on the product group, Lekkerland supplies between 140 and 162 stores of the coffee shop chain with everything they need. But Lekkerland is much more than a supplier. The company is responsible for the entire supply chain of the Starbucks stores in Germany for different Starbucks licensees. Its functions range from stock management and purchasing, through warehousing and stock picking, to delivery.

02:30 Duisburg Central Station.
Dirk Dünnebacke parks the truck in front of the main entrance and pushes two fully laden, rattling roll containers through the shopping mall. The Starbucks store won’t be opening for another three hours. The Lekkerland driver takes out a key, opens the door, pushes the roll containers through the entrance and locks up again. Uninvited guests need to remain outside. One after the other, Dirk Dünnebacke pushes the roll containers through the darkened store, past the tables with chairs stacked on top of them, and the sales counter, along to the familiar stock room. Once he arrives there, he stacks the goods in the fridges and on the shelving units.

Nearly half of the stores across Germany are supplied during the night. The advantages: The workflow in the stores is not disrupted by time-consuming goods stocking during working hours, and the refrigerated articles have already been put away by the driver before work starts. Naturally enough, there is also less traffic on the roads.

07:00 City centre in Düsseldorf.
When it gets light, Dirk Dünnebacke and his truck arrive to Düsseldorf’s city centre. The Starbucks store located in the Schadow Arcade is already open. When the Lekkerland driver arrives, the chit chat is all about football. The store manager is a fan of football team Borussia Mönchengladbach, Dirk Dünnebacke’s football heart beats for Borussia Dortmund. They have known each other for a while and they like to talk about their favourite sport. The delivery and the formalities are quickly taken care of – all the workflows are completely digitalised.
Since June 2015, Lekkerland has been supplying the Starbucks stores in Germany. Since April 2016, the client has generally been AmRest. At that point, the Polish company took over the majority of the chain’s German coffee bars.

10:30 Lekkerland Logistics Centre Oberhausen.
While the customers in the stores are enjoying their tasty cups of coffee and staff can rely on having enough stocks available in the store room, Dirk Dünnebacke’s working day has come to an end. He parks his truck and switches off the engine.

THROUGH THE NIGHT FOR STARBUCKS LICENCE STORES
Dirk Dünnebacke

Dirk Dünnebacke makes a delivery to Starbucks stores in the Ruhr area.

THROUGH THE NIGHT FOR STARBUCKS LICENCE STORES

”Our aim is the perfect customer experience“

It is not just about digitalisation. Above all, it is about convenience. Marc Lanneau, Head of Digital Business Development at Lekkerland,never tires of emphasising this fact. He continues by stating that the simplest solution is often a digital one. Christian Grotowsky, Head of the IT department at Lekkerland, also highlights the fact that this solution always needs to be smart and stable.
Everyone is talking about digitalisation. What is your understanding of this concept?

MARC LANNEAU_Think about the many digital ser­vices that all of us now use as a matter of course in our everyday lives: online banking or booking a holiday on the internet. The key factor is that these offerings make our life easier. This is what today’s consumers expect from an online service. And because we know that this level of expectation is influenced by our private lives, we need to respond to this need in B2B as well. As the Digital Unit of Lekkerland, we want to make the experience of our customers as convenient and easy as possible. Our objective is quite simple: the perfect customer experience. If a new idea does not lead to improved customer experience, it will not be successful.

Are you able to provide an example of successful digitalisation?

MARC LANNEAU_One example is the Lekkerland hand scanner. Shop operators can use the scanner to scan the product conveniently on the shelf, send data to our Lekkerland webshop and order there directly. This solution is absolutely unique in the sector. Our new feedback application also offers customers in Germany a dialogue option outside our service times.

Marc Lanneua

MARC LANNEAU Head of the Digital Business Development Unit at Lekkerland

How do the different divisions at Lekkerland work together here?

MARC LANNEAU_A digital transformation process is all about liberating the full potential of the company. That’s why it only works in a collaboration between all the departments.

CHRISTIAN GROTOWSKY_A good example of a successful cooperation between departments is provided by our sales companion app, the intelligent companion for sales. The app was created in close cooperation with sales. Based on our Customer Relationship Management (CRM) System, it gives the sales force convenient access to all customer-relevant data on the move so that members of the sales force are always optimally prepared for visits to customers. When they are giving advice in the course of a customer visit, they can easily access all the appropriate data.

What role does the Become One project play in the digitalisation of Lekkerland?

CHRISTIAN GROTOWSKY_Become One is the backbone of digitalisation. We need this business platform because the core elements for commercial companies are high-quality data management, straightforward updating and core processes, and a system that is simple, smooth-running and stable. Many of the processes in the company are subject to a continual process of change. We are well positioned with Become One as our core since this will enable us to work fast and efficiently for our customers in the future. Switzerland was the first national company to successfully launch the new system landscape in the new year – a fantastic success for Lekkerland and the entire project team.

Christian Grotowsky

CHRISTIAN GROTOWSKY Head of the IT subsidiary Lekkerland information systems


The practical hand scanner turns purchase orders into child’s play.

The practical hand scanner turns purchase orders into child’s play.


AT A GLANCE:
THE DIGITAL SHOP
Lekkerland offers its customers lots of services which make the everyday business of shop operators easier.
  • Shop operators can place orders in the webshops of the Lekkerland Group 24/7. The online portals in Germany, Belgium and the Netherlands for example offer practical order aids, tips and information on shop optimisation and the latest trends, intelligent order proposals and support for goods management.
  • Modern cash register systems control the entire process of goods and inventory management and offer digital ordering notes and delivery notes, automatic updating of product data and business management evaluations.
  • The Lekkerland sales employees are equipped with tablets which provide them with ideal support when they are talking to customers.
  • Lekkerland drivers are provided with so called PDAs (Personal Digital Assistants) which ensure successful delivery tours and state-of-the-art customer service.

Working together to identify the best solutions for our customers - this objective unites Lekkerland with its partners. Numerous successful joint ventures substantiate the benefits of this approach.

Cooperation on e-cigarettes
Full steam ahead – Cooperation on e-cigarettes
Cooperation on e-cigarettes

E-cigarettes are booming in Germany. 3.5 million Germans vaped regularly in 2016. Lekkerland Germany is supporting this trend in close cooperation with various manufacturers.

Full steam ahead – Cooperation on e-cigarettes

“We have more than doubled sales of e-cigarettes in 2016 by comparison with the previous year,” reported Peter Pütz, Director Category Tobacco at Lekkerland. “This was possible ultimately thanks to the very good cooperation with our suppliers. Especially with JTI we have a particularly close and trusting partnership.”
Lekkerland now supplies around 18,000 sales outlets with e-cigarettes, including stations of virtually all the major filling station companies. Training sessions and intensive consultation for shop operators are naturally all part of the package.

Cooperation on e-cigarettes
The formula for successful impulse marketing for ice cream The formula for successful impulse marketing for ice cream
Ice, cool & lekker: The formula for successful impulse marketing for ice cream

For almost 25 years, Lekkerland has been cooperating with leading brand manufacturers, especially Unilever, to supply its customers with some of the oldest and most successful mix concepts for ice-cream cabinets in the away-from-home market. “Ice, cool & lekker” provides customers with an ice-cream cabinet tailored to their particular location with a varied selection of ice cream, and promotional material to suit the product range. “We are very proud that we have been able to work closely with the industry and establish such a unique, holistic concept in the marketplace,” recounted Klaus Lützig, Director Category Food at Lekkerland.

The formula for successful impulse marketing for ice cream

“Customers are able to select from nearly 100 ice-cream products including classics and seasonal innovations. They receive everything from a single source with us.” Lekkerland has currently placed more than 10,000 ice-cream cabinets in the marketplace.

The formula for successful impulse marketing for ice cream
Lekkerland and UNITI: Two strong partners for the future

Lekkerland and UNITI, the German Federal Association of mid-sized oil companies, want to provide active support for the necessary ongoing development of filling station shops and they have therefore jointly agreed a long-term strategic competence partnership. The overarching objective is strengthening and developing the filling station sales channel for on-the-go consumption.
The central focus of cooperation is the transfer and establishment of know-how for the two partners and the development of practical solutions. “We want to safeguard and strengthen competitiveness and profitability of the member companies through intensive communication with UNITI members and jointly agreed consumer-centric concepts from a single source,” explained Jürgen Stolz, Senior Vice President Sales Mineral Oil Companies & QSR at Lekkerland.
“This will also involve us in continuing to promote the quality of fi­l­ling station shops in order to meet the changed requirements and expectations of consumers. In future, consumers should regard filling stations as the first point of contact for high-quality convenience products and attractive service packages. UNITI and Lekkerland form a perfect entity for this.”

KEY INDICATORS ACCORDING TO IFRS
€ million 2016 * 2015 * 2014 * 2013 *
Result
Revenues 13,003 12,484 11,985 11,690
EBITDA 124 103 91 91
EBIT 85 66 54 51
Net profit 60 46 41 20
Balance sheet
Balance sheet total 1,395 1,347 1,349 1,353
Capital ratio1 12,1 12,5 12,0 10,7
Cash flow2 114 100 37 100
Investments3 41 43 47 46
Employees (number)4 4,801 4,865 4,942 5,568