and 50% less energy than competing technologies
Strategy and Finance
Marel's mission is to Be the Preferred Partner in the Production of Quality Food
Sustainability is the core of Marel's strategy and operations. Marel's primary focus is on increasing yield and reducing waste, and hence promoting sustainability in food processing. Marel will continue to find ways to improving efficiency in the industry. Marel's customers are looking for solutions that use less water and electricity, and that also offer impeccable hygiene and traceability. Marel has these solutions.
Marel has maintained its position as an industry leader in the challenging market environment that has prevailed for the past two years. This can be attributed to Marel building its strategy around two important pillars: market penetration and innovation.
Marel's extensive sales and service network is its key competitive edge, and has enabled the company to shift its focus to new markets when the economic environment has been less favorable in its more traditional markets. Marel's sales and service network is spread out across more than 30 countries on all continents. The network is Marel's first line of contact for customers at the local level, and brings first-rate service, consistency, and continuity to its partnership with clients.
Marel's continuous focus on innovation, even during challenging times, has resulted in a steady flow of innovative products that have transformed the way food is processed around the world. The key to success is through partnership with customers to find products that set new benchmark in the industry and to listen to the customers' needs in order to reach continous improvements.
In 2013, Marel's expenditure in research and development equaled 6.7% of revenue, which is among the highest in the industry. Marel's commitment to innovation continues to bring added value for its customers worldwide.
Marel's strategy is clear. Its competitive advantage is the market-driven organization that aims to bring all employees together under single, united vison, serving customers in the fish, meat, and poultry industries. In order to further align execution with strategy, reduce costs and simplify Marel's organizational structure, a new refocusing plan called “simpler, smarter, faster” has now been introduced. Since the appointment of a new CEO in November, and the expansion of the Marel’s executive team in December, the company has launched several new initiatives.
In January 2014, changes were made to Marel's meat activities when three business units were merged to better utilize existing innovation and sales capabilities and the decision was made to streamline the company's product portfolio in the freezing segment, focusing on the unique products that are supporting Marel's full line solutions.
The recent changes will further align execution with strategy, provide better service to customers and enable Marel to achieve its long-term goals. Many additional projects are underway to help meet these goals and enable the company to operate to its full potential.
Business units serving the same customer needs and relying on the same technical capabilities will be combined. Marel's manufacturing footprint will be reduced; it is extensive and widespread and is causing both over and underutilization in the system.
Simultaneously, the focus has been changed from volume to value creation, with targeted operating profit (EBIT) exceeding EUR 100 million in 2017. Marel's objective for 2014 is to achieve organic revenue growth and adjusted operating profit (EBIT) of EUR 55 million. The long-term outlook in the industry remains favorable and Marel's goal is to continue to grow faster than the market average.