Strategic positioning with the three business segments Sugar, Starch and Fruit.
AGRANA adds value by processing agricultural raw materials into numerous intermediate industrial products used by downstream manufacturers.
The AGRANA strategy is based on activities in three market segments delineated according to principal products: Sugar, Starch and Fruit. AGRANA controls and manages the value chain from the purchase of agricultural raw materials to the production of the resulting industrial products (and end products for consumers in the case of the Sugar segment). AGRANA utilises the Group’s strategic know-how across segment boundaries. This pertains especially to agricultural grower contract management, the knowledge of customer requirements and markets, the opportunities for the development of inter-segment products, and synergies in logistics and purchasing. The commonalities between business segments form the basis for AGRANA’s increasingly strong market position in relation to competitors in all product groups, for its innovative strength and its good cost position.
AGRANA pursues a growth strategy oriented to the respective local market opportunities. Longlasting, stable customer and supplier relationships and continual growth in the value of the company are major cornerstones of the corporate strategy, which is guided by the principles of sustainable business management.
As a result of this Group strategy, AGRANA today is:
- One of the largest suppliers of sugar and isoglucose in Central, Eastern and Southeastern Europe
- In the Starch segment, one of Europe’s leading vendors of specialty products and bioethanol
- In the Fruit segment, the world market leader in fruit preparations and one of Europe’s leading producers of fruit juice concentrates.
AGRANA’s aim is to provide both its multinational and regional customers with the best product quality worldwide, optimum service and innovative product development ideas and expertise.
SUGAR SEGMENT STRATEGY: CONSOLIDATION AND EXPANSION OF THE LEADING POSITION IN CENTRAL, EASTERN AND SOUTHEASTERN EUROPE
In the Sugar segment, AGRANA as an international supplier is ideally positioned in Central, Eastern and Southeastern Europe thanks to the – in some cases sharp – decline in domestic production in these countries. Through high quality standards, new fully organic products and the careful building of the Group's own regional brands, AGRANA differentiates itself from its competitors.
STARCH SEGMENT STRATEGY: GROWTH IN SPECIALTIES
In the Starch segment, AGRANA focuses primarily on highly refined specialty products. Innovative, customer-driven products supported by application advice and continuous product development, combined with relentless cost optimisation, are the key to the segment's success. Examples are the leading position in organic starches and GMO-free starches (not derived from genetically modified organisms) for the food industry and, in the non-food sector, the leadership role in specialty starches for the paper, textile, cosmetics, pharmaceutical and building materials industries. AGRANA's core competence – adding value to agricultural raw materials by processing them into industrial products – also forms the basis for the bioethanol business. In Austria and Hungary, AGRANA is a leading vendor of this environmentally friendly fuel.
FRUIT SEGMENT STRATEGY: CUSTOMER- AND MARKET-ORIENTED GLOBAL GROWTH
In the Fruit segment, AGRANA's business activities are Fruit (about 80% of segment revenue) and Juice (about 20% of segment revenue):
- AGRANA Fruit acts as a partner to the food industry by producing customer-specific fruit preparations for the dairy, ice-cream and baking industries. With local production units close to customers, AGRANA is the world leader in this global market. Rising nutrition consciousness, the population growth in emerging markets combined with the increasing levels of affluence and education are the growth drivers for the fruit preparations business. AGRANA is further expanding its global presence and following its internationally operating customers.
- AUSTRIA JUICE produces mainly juice concentrates from apples, red fruits and berries. Manufacturing locations near the fruit growing areas allow AGRANA to ensure and expand the global sales to the beverage industry.
Through organic growth and acquisitions as well as cooperative new ventures, the Group is able to consolidate and steadily add to its strong worldwide market position.