Strategy

The aim of Parmalat’s management is to create a centrally coordinated Italian food group with a multinational strategy and shareholder value as its primary goal.

The strategic guidelines that the Group followed in 2005 and which will continue to direct its operations in the near future are as follows:

• Concentrate the product portfolio on milk and derivatives as well as fruit-based beverages.
• Focus on products with a high value added and on highly innovative premium products. Functional products are a specific objective of the Group.
• Promote brands with a high value added and continue steadily and effectively to implement the process of “Parmalatization” in all of the countries in which the Group operates by:
  • Gradually streamlining the product portfolio, replacing minor local brands whenever possible;
  • Leveraging the value of strong local brands, supporting them with the introduction of Parmalat as a signature/umbrella brand whenever possible;
  • Making sure that the Parmalat brand is tied directly to, or is an umbrella brand for, innovative premium products in all markets.

• Benefit from cost and revenue synergies generated by the central coordination function exercised by the Group’s Parent Company by:
  • Leveraging product and process innovation at the global level, with R&D activities coordinated centrally;
  • Leveraging cost competitiveness and process excellence advantages at all stages of the value chain.