Benecol is Raisio’s top innovation and the company’s most international brand. Wellbeing and cholesterol lowering stand out in the Benecol products. Finnish consumers have used Benecol products for over 20 years already, and the products are available in some 30 countries. Consumers trust the Benecol brand proven to lower cholesterol safely and effectively. Raisio continues its efforts to open new Benecol markets and to launch new products in line with consumer needs.
- Benecol products continued to grow their market share in the highly competitive UK market.
- In the UK, Raisio negotiated price increases with retailers.
- In Poland, Raisio maintained its market leader position in spreads.
- Benecol Soft Chew food supplement was launched in Finland, Poland, Ireland, Belgium and the Netherlands.
- Sales in Benecol consumer products increased significantly in Indonesia, the Philippines and Thailand.
- Exchange rate changes had a clearly negative impact on net sales and EBIT of the Benecol business.
EBIT for the Benecol business remained at the comparison year level even though volatile exchange rates had a clear negative impact on EBIT and net sales. On the other hand, EBIT was positively impacted by the streamlining of operations.
Net sales for the Benecol business were clearly down from the comparison year, totalling EUR 124.6 million (in 2015: EUR 140.3 million). The net sales decline was due to the volatility of currency and consumer product sales volume in Raisio’s home markets. The UK is Raisio’s by far the largest market for the Benecol consumer products so the sales prices and volumes of the products have an essential effect on the figures of the entire business. Benecol ingredient sales to licensing partners were up from the comparison year.
The UK is the largest market for Benecol products
Wood-based sterols are a significant raw material in the manufacture of the Benecol product ingredient. The world market price of wood-based sterols rose and demand increased, which led to higher raw material costs for the Benecol ingredient also in 2016. In previous years, these costs were offset by favourable exchange rates.
Benecol business is comprised of two business models:
- Sales and marketing of consumer products in Raisio’s own markets. Home markets for Raisio’s Benecol consumer products include the UK, Poland, Finland, Ireland, Belgium and Hong Kong.
- Licensing of the Benecol brand and sale of plant stanol ester, the Benecol product ingredient, to licensing partners. These partners have a license to use the Benecol brand and to sell and market Benecol products in their markets.
Plant stanol ester, the Benecol product ingredient made in Finland, is a top Finnish innovation. Benecol consumer products are available in some 30 countries.
Raisio’s home markets for consumer products are Belgium, Finland, Hong Kong, Ireland, Poland and UK.