German enterprise Alnatura increases turnover by 16 %

As he does every year, the founder of Alnatura Götz Rehn presented the results of the last financial year. He said how pleased he was that customers’ enthusiasm for the Alnatura brand and trade concept was continuing to increase. In his opinion the organic market had to grow much faster, because the current market share of organic food in Germany (around 4 %) was far from satisfactory.

(Graphic: Net development of turnover in million euros. Alnatura recorded a plus of €96m. Below: For years, Alnatura’s turnover has experienced double-digit growth – higher than the market as a whole.)

For many years, the company has enjoyed double-digit growth rates, and in the last financial year it again grew more than twice as fast as the total organic market, which is likely to register expansion of around 7 %. For Rehn, the record growth in turnover is an indicator that the customers value and appreciate the holistic philosophy of the Alnatura concept. According to a Forsa survey published in October 2014, Alnatura is the most popular food brand in Germany and comes twelfth in the overall ranking of "The Germans’ favourite brands in 2014".

In the last financial year, the company opened ten stores and the number of SuperNaturMarkt outlets rose to 90 in 41 cities across nine federal states. In Munich alone four new stores were launched, followed by more in Berlin, Cologne, Karlsruhe, Ulm, Ravensburg and Freiburg (relocation). Around €6m were invested in renovating old stores, and for the current year 2014/15 the hundred store mark will be exceeded when the company’s plan to open at least ten more outlets is accomplished. For example, Rehn perceives a clear need for far more stores in Munich - despite the massive criticism that we have reported on several times in the past. The locations of further stores in the pipeline are Düsseldorf, Bensheim and the south, and also Berlin, Potsdam (in an historic building) and Hamburg . (Picture: New Alnatura stores in the financial year 2013/2014)

Expansion of the store network means the creation of jobs. The number of employees has risen from 2,100 to 2,320 and, moreover, Alnatura is an employer people want to work for: at company headquarters in Bickenbach they received 7,000 applications in 2014, sometimes up to 200 for one vacancy. There are currently 145 apprenticeships in the company. This very positive development of the business led to a situation where there was not enough space in the high-bay warehouse and, since the headquarters could no longer house the required staff, extra office space was already being rented. Logistics were much improved when the existing distribution centre was extended with the opening of the biggest high-bay warehouse in the world. We wrote a report on this new venture and the fact that it is a timber structure. (Graphic: Alnatura employs 2,320 people and plans to create more jobs this year)

The company headquarters in Bickenbach were bursting at the seams, Rehn explained. He said it was high time they found a new home for their headquarters, and the new location will be the site of the former Kelley Barracks in Darmstadt. The new office building will have a total area of approximately 10,000 m² and space for 500 employees. The eco building and the way it will be fitted out is state-of-the-art. Construction is to start in the summer of 2015 and is scheduled to finish at the end of 2016.
Rehn said that collaboration with Migros (see our earlier report), the biggest retail company in Switzerland, is developing most satisfactorily. Since the first Alnatura organic supermarket opened in Zurich in August 2012, three new stores have been launched, and the next new opening will take place in Winterthur at the end of November. The integration of over 300 Alnatura products in 75 Migros stores and selling via the Migros online shop are regarded as a milestone. (Picture: Regional fruit and vegetables in the Alnatura-Migros store in Zurich)

The approximately 3,750 stores of trade partners in 14 countries (dm-drogerie markt, Tegut, Budni, Hit, Globus, AEZ, Cactus/Luxemburg) continue to be the most important sales channel for Alnatura products. The widest offer of around 600 Alnatura articles is found currently in the 3,500 dm-drogerie markt stores in Germany and abroad. As the Süddeutsche Zeitung and the Lebensmittelzeitung reported, dm-drogerie markt intends to create its own organic food brand. What seems to be causing some disquiet at Alnatura is the fact that dm is asking the same manufacturers to be their future suppliers. At the press conference, Rehn addressed the issue with equanimity: "Our cooperation with dm is excellent, and we’re an important partner – we’ll have no problem in coping with this situation.” (Picture on right: dm-drogerie markt store in Prague)

The Alnatura product range has grown to 1,160 articles, and next year another 40 or so new products will be added that will be largely supplied (96 %) by Alnatura’s partner manufacturers. As Rehn emphasised, these companies are small and medium size enterprises, and 80 % are located in Germany. About 20 % of the company’s offer comes from neighbouring countries. He pointed out that the customers are the driving force and active participants in the development of the product range.
The close relationship with customers was expressed through the motto “30 Jahre Bio zum Mitmachen” - taking part in 30 years of organics - in the company’s anniversary year. At the beginning of the year, nearly 3,000 customers took part in a competition to design packaging for six Alnatura anniversary products. 30 cents of the price of every product sold went to 101 nature protection projects run by the Bund für Umwelt und Naturschutz (BUND), resulting in €158,500 being donated to regional BUND projects.

(Picture: The head of communication, Tina Schneyer, with the best packaging designs and the new products)



Alnatura has now launched a far bigger project with the aim of strengthening organic agriculture in Germany and stimulating domestic organic production. Hartmut Vogtmann from the Deutsche Naturschutzring (DNR) said it was disappointing to see the number of organic farmers in decline while the demand for organics had for years been rising. Together with the umbrella organization of the associations operating in nature and environmental conservation and animal welfare (5.6 million members), Alnatura has launched its organic farmer initiative (ABBI). The objective of the initiative is to convert 3,000 hectares of land to organic cultivation by 2020. Alnatura is putting €400,000 into the project pot and wants manufacturers to contribute similarly to financing the undertaking. €100,000 have already been promised by Ulrich Walter GmbH (Lebensbaum). Farms interested in converting to organic will be advised and supported financially, because converting back to conventional farming and unwillingness to farm organically are often down to financial difficulties. The motto of the initiative to be launched in 2015 is: “Gemeinsam Boden gut machen” - making good ground together. (Picture: Partners supporting organic farming: Hartmut Vogtmann, DNR and Götz Rehn)

The Alnatura animal welfare programme for organic laying hens is similarly an appeal to society’s sense of responsibility. Working together with an acknowledged poultry expert from the University of Kassel (“the chicken whisperer”), a monitoring system that puts the welfare of organic hens at the centre was initiated on all organic farms that supply eggs for the Alnatura brand. Alnatura covers the higher costs of the farmers by paying them a higher price for their eggs. The Alnatura egg farmers can submit further ideas to promote the quality of life of their hens to Alnatura’s initiative fund for more animal welfare, with the possibility of receiving up to €30,000 a year to support their farm.
(Pictures: Employees and trainees at Alnatura)

 

All photos and graphics by Alnatura.