Strategy - B - Testing

2019-2024 Strategic Plan

In January 2019 we launched our new strategy, to enhance our leadership position and capture value from key emerging consumer trends.

Following successful progress against the plan targets, in January 2020, we announced a re-organisation of Olam to unlock long-term value. Read more about the two new distinct operating groups Olam Food Ingredients and Olam Global Agri and the role of Olam International as parent, steward and accelerator here.

Trends and Opportunities

We have identified 4 key trends and opportunities underpinning the food and agri-sector which have influenced our strategies. Driven by consumers and advances in technology, these trends include increasing demand for healthier foods, traceable and sustainable sourcing, ecommerce and the rise of “purpose” brands.

This trend refers to the consumption of healthy, high nutritional value food, customisation of diets, premiumisation, authenticity and the use of natural ingredients. These include natural, organic, local ingredients, clean labels and the slow-food movement.

Premiumisation refers to the phenomena where consumers prioritise spending on food (or things) that matter most to them, while cutting back on other expenditure, with greater emphasis on quality as well as functional ingredients. Suppliers can capture value and secure pricing premiums by differentiating their offerings with value-added solutions that reflect these important consumer behaviours. This has led to the emergence of new cool, chic niche brands which are perceived to be able to meet these needs.

This trend refers to the consumption of food that is friendly to the environment, ethically sourced and sustainably produced. In recent years, there has been a growing interest in the footprint of all the food, food ingredients and feed ingredients that are supplied to customers and increasingly, consumers are seeking assurance and certification of the supply chain and the supply chain visibility, provenance and traceability that establishes a clear and direct link to the producer.

This trend refers to the growing consumption of food (or things) outside of the home and on-the-go, omni-channel purchasing instead of purchasing in shops, the impact of mobile connectivity on consumer behaviours and food choices being made through social media recommendations.

This trend refers to how food, feed and fibre are produced, such as through the use of advance robotics, drones, unmanned vehicles, big data and analytics, precision agriculture and digital engagement and investments in automation and technology. For example we have sensors on our almond trees to monitor stress levels so that we can respond and improve water usage efficiencies by irrigating as required at precise timings with a precise quantity of water. Wingspan drones are also used to map our farms and plantations and aid exact intervention in disease infestations and nutritional deficiency issues. In our factories, IoT sensors are used in predictable preventive maintenance.

Operational Excellence

Achieve operational excellence through tracking metrics that matter, digital dashboards and performance scorecards, execution discipline and continuous improvement.

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Sustainability

Continue to keep sustainability at the heart of the business and re-generate food and farming landscapes while capitalising on changing consumer preferences, and trends - “right-for-me”, “right-for-the-planet”, “right-for-the-producer”.

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Digitalisation

Lead the industry’s digital transformation and disruption by identifying, validating and deploying initiatives to capture and create value.

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Leadership

Attract, retain and inspire top talent by embedding the Group’s purpose and investing in people development programmes.

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