1. 12 August 2011 Competitive ReviewA presentation to Lurpak

3. A review of the competitive activity in Lurpak markets: Greece, Denmark, Holland, Israel, China, Russia, Poland, Italy, Australia, UK, Middle East

5. Global Trends Emerging Markets Average age is a decade younger than westerners, with greater generation gaps than the West who share a different past to that of Westerners Zeitgeists are different in these markets: optimism is tangible Trial - younger audiences are keen to try things for first time Status - the prime use of wealth is the display of wealth Lack of space, no cars and poverty– cheaper, smaller pack sizes sell well - can’t always afford or transport whole packs Origins – be aware that some emerging markets view Europe as ‘past it’ Source: “How to Dominate the World”, Simon Sylvester, Wunderman

6. Global Media Spend Advertising spend in developing markets (everything outside of North America, Western Europe and Japan) is growing faster than developed markets 3 developing markets are in the world’s top ten ad markets in terms of spend: No.3 China, No.6 Brazil and by 2013 Russia will be No. 9 China and Russia are the largest contributors to new dollars in the market after the US Globally internet is the fastest growing media between 2010-2013 TV is still 49% of new advertising spend – its importance is still significant, particularly in China where 98% of people have a TV and analog usage is growing Expect benefits in ad expenditure, and therefore increased competition, in Poland and the UK in 2012 (UK Summer Olympics 2012 and Poland & Ukraine Euro 2012) Source: Zenith Optimedia Press Release, 13th July 2011 “How to Dominate the World”, Simon Sylvester, Wunderman

7. Global butter themes Butter Competitive Activity Communication trends/themes: Health and wellness ‘Natural’ and ‘pure’ attributes – sought out by lovers of ‘good food’ and combating negative fat perceptions Family emphasis – placing butter in heart of the home Taste Butter uses – as a result of growing love of good food and taste Promotions – bikes, cars and video cameras

9. Greece – Market Analysis Butter was expected to grow 2% in 2010 Consumers moving from margarine to butter due to health and wellness trend as butter is considered more natural even though is more fattening Artisanal, natural and traditional products fared best especially those with olive oil. This is true of other products too – seasonal, fresh and high quality produce is preferred Butter usage reflected in ads: not for cooking (olive oil preferred) but for baking (cakes, sweets and biscuits for rich flavour) or roasts (as it offers taste and crispiness). These are seen in the ads Family theme runs through – in each, always a shot of being enjoyed by all the family even if main proposition is something else Source: Euromonitor, Greece data Oils and Fats – Oct 2010. Xploring – Greece summary and LurpakXploring pres

10. Proposition: A family butter

11. Ads - margarine Every house is unique’, Nov 2010 Storyline: Shot of various houses while FV/O promotes the fact that every house has its own tastes, but everyone is using the product when they want to cook. Oct 2010

12. Ads – soft margarine ‘Help at Kids Growth’ – Sept 2010 Storyline: Shot of a mother measuring her son. After that her son consumes some of the product and reads that it helps at children's growth. The kid consumes more product and then asks his mother to measure him again

14. Different positionings across the brand; margarine positioned for cooking anything, and soft margarine for child growth and appealing taste

16. Ads – Horio butter range Speaking Cows, Sept 2010 Storyline: Shot of two cows that seem to speak with each other promoting the product. When the frame opens we realize that the voices are coming from two women who are milking the cows.

19. Ads First ad: The Purest Ingredient For Your Kourampiedes- Dec 2010 Storyline: Shot of a young lady asking her grandmother how she can cook the traditional Kourampiedes. Her grandmother says to her that she has to use the product for excellent results. Last ad: Tastes Better – Dec 2010 Storyline: Shot of a man who is calling his wife in order to ask her how he could make the food taste better. His wife replies to him by promoting the product.

21. It builds a sense of trust – being recommended by those closest to you

22. Draws on the deepness of food culture – valuing traditional Greek foods and influence of family recipes

24. Poland– Market Analysis Butter predicted to grow 2% Butter use: usually for baking. Also used in sandwiches, eaten in morning and evening as well as cooking. Health and wellness trend led to growth in olive oil and functional spreadable oils and fats. Flora Pro-Activ campaigns with heart age calculator online are present Rama (margarine) is the leading brand in 2009 emphasising its health for children and all round appeal Premium butter competitors Kerrygold, President and MasloFinskie have no activity in last year Ads tend to be family orientated Source: Euromonitor, Poland data Oils and Fats – Oct 2010 Lurpak Xploring Pres Email exchange Poland network

25. Proposition: A everyday family margarine, delicious and healthy for all

26. Ads Feb 2011 ‘Supernanny’ Storyline: Kids are shown eating Rama. The nanny eats it too and children are surprised. End line: ‘Everyday Rama. Delicious and healthy.’

28. Moves away from its child nutrition focus end line in 2010 TV ads, ‘Rama everyday. Grow everyday’

29. Rama is warm and affectionate through showing family momentsFeb 2010 Storyline: Two brothers stand against a wall measuring themselves. Their mother promotes the product. End line: ‘Rama everyday, grow everyday’ Oct 2010 Press, Headline: ‘Julian cannot wait until it’s big’, demonstrating Rama’s nutritional value for growing children

30. Proposition: The baking butter for the family

31. Ads ‘Summer baking’ – July 2010 Storyline: Woman is shown baking blueberry cake. She shares it with her family. FV/O promotes. July 2010, Headline: Reach for the simple recipe and enjoy 2011, Headline: Because Barry is your cake! 2011, Headline: Barry, flour and lemon? Bake cake for Christine?

33. Simplicity in recipes is also mentioned, perhaps promoting ease of use of the butter

35. Ads ‘Breadtest’ Nov 2010 Storyline: A young baker is taking a test. Blindfolded he needs to guess types of bread. The bakers give him this margarine to smell and he says it smells like fresh bread. MV/O promotes. Text says ‘New Smakovita de Luxe’. Uses chefs to emphasise quality 2 x15 second versions ran March and May 2011: Different end line and pack shot of different product, ‘Try, Smakovita with butter’ Different end line and visual: Product awarded Product of the Year

37. Denmark– Market Analysis Butter was set to grow 2.6% in any otherwise almost flat market Health trend – butter seen as more ‘natural’ than cooking fats and spreadables. Margarine is declining ArlaKaegarden’s positioned around nature has leading market share Developed ‘food lover’ culture Butter usage and attitudes: - Food lovers see butter as necessary part of a well-stocked kitchen, spreadable butter is for amateurs, ecological butter is much tastier - Used for frying, taste to meat or vegetables in oven, baking, gravy, and for putting on bread - Butter is a sandwich spread in its own right and you don’t need butter on bread under other spreads or cold cuts or cheese Source: Euromonitor, Denmark data from Nov 2010 Xploring research: Denmark results

38. Proposition: The professional companion to help you succeed in your cooking

39. Ads Feb-April 2011 ‘Web page with cooking recipes’ Storyline: MV/O promotes clips of a meal being prepared by a professional cook. Also promotes a web page where you can get more cooking tips. End line is ‘More praise for the cook’.... Banner ads: Feb 2011, ‘For more praise for your muffins’

40. Website Tips about choice and use of good ingredients, products and kitchenware and video recipe guides Products promoted

43. Ads ‘Omega 3 for your ears’ – April- May 2011 Storyline: A man is promoting this brand in store when his old friend comes by. The friend has had his ears turned backwards after going to a classical concert. The man in the costume says he needs more omega 3 to fix it and promotes this product. FV/O also promotes over pack shot in the end. ‘Two old friends’ – Feb – April 2011 Storyline: Clips of an old man finding his old friend Jakob dressed in a costume with Becel brand’s logo and colours. He is surrounded by products from this brand. The man in the costume asks the other to stick out his tongue. He does so and the man in the costume says he needs more omega 3. Promoting this product. FV/O also promotes over pack shot in the end.

45. Humorous communication moving away from the more depressing aspects of health deterioration

47. Russia– Market Analysis 2010 oils and fats expected to increase by 2% Butter use is relatively small: 80% of Russians consume less than 1kg of butter p.a. (due to confusion between butter and “butter” ie. spread, and a lack of quality credentials has eroded trust). And for many, butter = fat = bad BUT the consumption of butter is growing as perceived as a healthier option Yellow fats perceived as modified and of poorer quality than butter (margarine, cooking fats and spreadable oils and fats) and are expected to see decline Perhaps why most brands position themselves around nature at least in visuals Very little activity – only 1 Valio TV in last year Russian food lovers: - do use butter, but in limited quantities for dishes that require a dairy flavour. They prefer olive oil but NEVER margarine. - Local/imported: The butter manufactured by local and well-known Russian manufacturers is in greatest demand amongst consumers (Euromonitor). But food lovers see imports as sign of quality Source: Euromonitor, Russia data from Jan 2011 and LurpakXploring Pres

48. Proposition: A pure and natural butter of authentic heritage

49. Ads ‘Farmer’ – March 2011 Storyline: Farmer gets up early and has breakfast using Valio butter. MV/O promotes. End Line: Best Finnish 2009, “Cows share the secret of tender cream only with one another…” 2009, “From pure milk to pure pleasure”

51. In Russia, it uses pure and natural properties, perhaps to emphasise quality by distancing from yellow fats that are perceived as modified/poor quality

53. Other Russian Brands Vologda Positioned on price. Throughout the recession it encouraged people to keep buying their product . Our products are still accessible because our cows know nothing about economy

54. Other Russian Brands Kremlin Creates an image of premium quality by referring to its heritage, a product of Soviet times. It compliments this premium position with a focus on taste and wellbeing. “The base of tasty and healthy nutrition”

56. Australia– Market Analysis Oils and fats increased by 7% in 2010 Facilitated by trend of preparing meals at home – financial constraints and ‘good food’ movement Food lover culture is developed. Led to ‘premiumisation’ of food category and so renewed interest in provenance and good quality – seen in most ads Usage – bread, sandwiches and as cooking ingredient Butter was fastest growing category in oils and fats Butter usage growing vs. margarine shrinking Source: Euromonitor, Australia data from Oct 2010 Saatchi & Saatchi Australia Lurpak Intro deck

57. Proposition: The butter the professionals use

58. Ads George Colombaris – Tips May – July 2011

59. Ads

61. Provenance and quality concerns of developed food culture are met by celebrity chef endorsement and RTB’s such as ‘Aussie’ icon and ‘natural’

62. Content: The ‘foodie’ is engaged with valuable content too - website tips

64. Ads ‘Made from plant seeds’, Oct 2010 End line: you ought to be congratulated

66. Animation and jingle make the tone less serious than the V/O copy is

67. According to the Australia Lurpak intro deck this is supported with non-branded health message communications... paid for by Goodman Fielder (Meadow Lea) in association with the Australian Heart Foundation

69. Ads ‘Heart Age’, Mar 2010

71. Very functional in tone of voice but sets the brand up as a companion to lowering cholesterol

73. Israel– Market Analysis Oils and fats expected to increase 3% in 2010 Olive oil benefits from health/wellness trends and culinary excellence Butter growing 2% - due to ‘natural’ perception and much healthier than margarine Margarine declining - perception it is inherently bad for you despite educational campaign by margarine brand Mazola Butter use: - mainly to spread on bread on its own. Also used for cooking. Margarine is for baking. - Jewish dietary restrictions forbid eating meat and dairy foods together, so many consumers prefer to use oil-based butter substitutes when cooking - Breakfast is main occasion but increasingly eaten at dinner Little activity, mainly focussed on health and wellness Source: Euromonitor, Israel data from Nov 2010. U&A Israel and Guy Gordon email exchange

74. Proposition: The lightest butter

77. Ads Mazola - Upgrading bread: Storyline: Shows examples of how foods can be upgraded from 'good' to 'better' with the simple addition of an ingredient - as a piece of bread can be with the addition of Mazola spread (a very popular vegetable oil based spread) Mazola - Healthy spread: Storyline: Extols the nutritional virtues of Mazola's Omega-3 rich, low cholesterol, vegetable fat-based ingredients

79. Italy– Market Analysis All oils and fats categories were predicted to decline due to health trend Olive oil least-affected as traditionally the most important oil/fat in Italy and is healthy Butter was also one of the least affected Butter use:as an ingredient, not to spread over bread as much. Therefore butter is spread in hard blocks. Butter more common in north, olive oil heavily used in south Consumers are increasingly more concerned about ingredients quality. For butter this is origin of the milk, appreciating ones produced in Italy. No competitive activity took place last year. Not widely advertised (or margarine). Main competitors positioned around health (lowering cholesterol) or ‘natural’ Source: Euromonitor, Italy data from Oct 2010

80. Proposition: A vibrant wellness brand which believes that health is not at the expense of taste

81. Website Simplicity and taste to your recipes Naturally good for the heart The "light butter" approved by chefs light and vitality

83. Recipes are not just for healthy foods

85. Ads Two cows in a field. Jar of Burro al Tartufo. Pack of Kruidenboter. Mountains. Text.23/12/2009 Pack of Meggle Fiore Bavarese. Grazing cows. Text.27/12/2009 - 01/01/2010

86. Support Comments/Observations Meggle offers a variety including herb flavoured, truffle, bread flavoured and individual portions of butter as well as ‘restaurant’ butter emphasising its cooking use Emphasis on nature is most likely to be the way they communicate quality (in line with the importance Italians hold on origins of production) Appears a high quality, premium brand - the site is quite corporate and recipes are luxurious

88. China – Market Analysis Oils and fats were expected grow 8.5% Health dominates the mind set. Majority of sales derived from olive, vegetable and seed oils, perceived to be healthier than butter and margarine. Butter is seen as saturated fat, a source of cholesterol leading to health problems But butter grew about 8% and there may be a changing mindset towards butter - health benefits are noticed by nutritionists such as Mary Enig who say since butter is nutritious and "is rich in short and medium chain fatty acids“, this can have a positive effect on health and prevent disease No activity found in last 5 years apart from a press ad from ‘Land O’Lakes’ in July 2009 with a piece of cake and product on the right Butter is used as a spread, condiment and for cooking (baking, sauce making, and pan frying). Vegetable Shortening and Soybean oil and Peanut oil are also used in China Source: Euromonitor, China data from Oct 2010 Network email exchange with Carey Che, China

89. Ads Proposition: an American product July 2009 “Land O Lakes Butter” headline

91. Middle East– Market Analysis Almost all traditional food is cooked in “margarine” (ghee) – fatty and heavy. Especially used by older women. They only use butter for baking Butter is seen as a lighter choice and used in more modern food (more prevalent in UAE and Lebanon – perhaps that is why competitive activity is there and not Saudi) Trend towards women embracing modern food trends such as low fat (for image reasons in Lebanon and health in UAE). There is also growing consumer health-consciousness (from alarming obesity level awareness) in Saudi. Margarine (in western sense) and butter were expected to grow Providing for family, targeted at women – common theme in activity. Smeds is unusual Brand message variety: quality and trust, health, natural, traditional and energy/joy Source: Euromonitor, Saudi Arabia data from Nov 2010 LurpakXploring presentation

92. UAE Almarai, ‘Rice Plate’ Aug 2009 A woman is telling us how we can cook a great meal for the family using Almarai Butter. Told through drawing on the butter and V/O. End line: Quality You Can Trust TRUSTED QUALITY Almarai, ‘Rice plate short’, March 2011 A woman is telling us how we can cook a great meal for the family using Almarai Butter. Endline: Al Marai Butter, the vital ingredient ‘Aseel vegetable ghee pack’, March 2011 Real taste of life with Aseel ghee. Endline: Healthy Food for a Healthy Life HEALTHY

93. Lebanon BB, Ghee cooking butter ‘An old lady at a supermarket’, March 2009 An old lady is in a supermarket and asks a man to help her get a tub of BB to make Maamoul with. End line: Do Maamoul with BB TRADITIONAL Al Wadi Al Akhdar ‘Butter In Fridge – Long’, March 2008 A girl takes the product from fridge, slices it and eats it with bread. End line: From the generosity of nature NATURAL

94. Lebanon Smeds ‘Girl waiting for a taxi’, July 2010 A girl enters a taxi that is too crowded. V/O promotes you can now win Suzuki cars with Smeds weekly when you enter the draw. End line: Energy, Health, Joy JOY / YOUNG Tatra, ‘Kids On PC’, August 2009 A kid is working on the PC when his mother approaches to offer a cup of milk and cakes made with Tatra. The kid creates an animated cow appear on the screen thanking the mother and Tatra milk as well. NATURAL

96. Holland– Market Analysis Oils and fats estimated to decline -1% due to health concerns. Olive oil, functional spreadables and lower fat cooking oils are growing Blue Band and Becel reflect this with the two highest shares with health positioning and is reflected in advertising Butter growth whilst margarine declining. Butter growth due to: - ‘honest’ and ‘pure’ trend. Butter is perceived as a traditional and pure product. This is perhaps why Campina butter uses the world ‘real’ in reference to taste - trend towards indulgence, despite health concern, it is popularising butter again. The Campina visuals demonstrate this. Perhaps this is linked to growing foodie culture - Campina promoting some butter products for consumption in evening meals has also helped growth. It is a relatively new type of consumption. Perhaps that is why see lots of visuals of cooking process Source: Euromonitor, Holland data from Oct 2010.

97. Proposition: Committed to making the world’s hearts healthier

98. Ads – margarine ‘Staying Healthy: Win A Batavus Bicycle’, May 2011 Storyline: A woman in a supermarket talks directly to viewers about choosing margarine and she steps forward onto a beach. She goes through different life activities. At the end a MV/O promotes the chance to win a Batavus bicycle. End line: Good for heart and blood vessels. May 2011 Press ads, advertorial

99. Ads – pro activ ‘Following doctors orders’, March 2011 Storyline: Members of the public in Europe talk directly to viewers about their doctors telling them they must improve their cholesterol levels. They promote this product helped them do just that. FV/O promotes. End Line Helps millions of people to lower cholesterol

102. It is an online coaching program where you take a Heart Age Test, answering questions about your diet and lifestyle, and get a 12 week customized Heart Age plan.

104. Ads – margarine ‘Measuring Growth’ Feb-Apr 2011 Music covers clips of a boy being measured. Child V/O covers clip of the boy reading the packaging, who suddenly eats more of the product when he realises this product helps with growth. FV/O promotes the improved packaging. End Line:You grow up best with Blue Band. ‘Feeding professionals: Stir Fry’ Apr-Jul 2011 FV/O covers close-ups of a woman stir-frying vegetables with this product and eating them with her family. The daughter of the family is dressed in a nurse's uniform. End line: You grow up best with Blue Band Another adapt with a chef was made

106. The ads demonstrates how the product helps children grow, one demonstrating physical growth and the other, personality growth.

107. It uses an emotion trigger of seeing your child in what they might want to be when they grow up

109. Ads – margarine ‘Steak for Two’, Mar – Jun 2011 Storyline: MV/O covers close-ups of a man frying steak and mushrooms in this butter, pouring red wine and serving his partner. End Line The butter that doesn't spit. Dropped the V/O endline ‘when you go for real taste’ seen in past ad below ‘Steak for Two: For Baking and Roasting’, Oct 2010 Storyline: MV/O covers close-ups of someone frying a steak and pack shot promoting this product. End line: When you go for real taste, with super ‘doesn’t spit’ Dec 2010, Steak in pan ‘Delicious Butter. Butter Good for baking and roasting. Doesn’t spit!’

110. Ads – margarine Vegetable oil spread, Mar-Jun 2011 Storyline: MV/O covers clips of someone making a snack with this product and pack shot promoting. Endline: Really tasty, really spreadable. April 2011 – version offering free trial on website

112. But the functional benefit of not spitting appears to help produce the great taste – the 2011 ad no longer says ‘real taste’ at the end but the sensuous imagery does

113. Usage: baking and cooking

115. UK– Market Analysis Oils and fats expected to grow only 1%, butter slightly slower than market and slower than spreadables Due to health trend which has had strong influence on communication - FSA renewed its February 2009 campaign in Spring 2010, aiming to reduce saturated fat consumption in the UK. Therefore we see health as a frequent brand message Butter products are used everyday Discounted prices make it hard for private label to compete Health is dominant theme in ads and each tries to differentiate themselves within this Source: Euromonitor, UK data from Oct 2010

116. Proposition: Committed to making the world healthier

117. Ads – margarine June 2011 ‘Win Kinect’, Feb 2011 March 2011 Family Talk, Jan- March 2011

119. Use family characters and scenarios to motivate everyday use of Flora

120. Both skus use popularity to promote use

121. Health is the key approach

122. Pro Activ takes a more serious, medical approach, with clinical explanations of how the ingredient of plant sterols are proven to actively lower cholesterol.

124. Ads – margarine Advertorial, Apr 2011 Buttery Taste spread Advertorial, Mar 2011 Olive spread Press ad, Feb 2011 Margarine Advertorial, Feb 2011 Margarine

126. The products bring a great taste to healthy food. The images are not of fattening foods – the unhealthiest it gets is beef wellington

127. Therefore set up as a healthy alternative to cooking fats and butter

129. Ads – margarine ‘In the Middle’ Feb – Apr 2011 It's great in the middle, just like Clover. End line: Churned like butter with half the saturated fat May – Sept 2010

131. Uses family comparisons to demonstrate its product attribute, making it emotionally engaging for families

132. It’s message implies it is still butter (and therefore get the benefits of that) but with less fat

134. Ads – margarine Olive Passions, May – June 2010 A group of Italian olive growers are going to extreme lengths to catch the best olives for use in this product. MV/O then goes on to promote the high standard of this product. End line: Passion Makes Perfect ‘Olive Passers – Win Food Hampers’ July 2011 Storyline: Images of an olive grove where the workers pick the olives in fantastical ways i.e. By suing a pole vault etc. MV/O promotes chance to win a years supply of Mediterranean food hampers worth £700+

136. The end line ‘Passion Makes Perfect’ in 2010 represented a strive for quality of taste

137. It was not used in the 2011 hamper ad but the ‘quality’ message was still demonstrated through the ‘Are you an expert olive picker’ line and imagery

139. Proposition: Simple goodness

140. Ads – Butter Family Talk Whilst Eating March– April 2009 Endline: ‘Where simple goodness begins.’ Press Dec 2008

141. Ads – Butter Press March 2008 Press Nov 2007

142. Ads – Spreadable Butter with Canola Oil 3 Natural Ingredients Mar 2010 – Apr 2011 End line: ‘Where simple goodness begins’ Women try to make butter spreadable June– August 2009 End line: ‘It’s simply perfect’

143. Ads – Butter with Olive Oil Storyline: MV/O states that butter comes from a cow, olive oil comes from olives, and butter with olive oil comes from 'colives'. Image of a colive, which is shaped like an olive but with the black and white pattern on a Friesian cow. MV/O promotes Land O Lakes butter with olive oil. A woman eats a slice of toast with this butter on. Endline: ‘The Land O Lakes butter you love with the pure goodness of olive oil’ Made from Colives June – Aug 2009 End line: ‘The Land O Lakes butter you love with the pure goodness of olive oil’