Electrolux 2009 Annual Report Download - page 31

Approximately half of all food-service equipment is sold in North
America, where consumers purchase prepared food in large vol-
umes. The major restaurant chains are increasing their market
shares in the US, and are also expanding rapidly in growth mar-
kets such as China and Eastern Europe. This generates extensive
opportunities for producers of food-service equipment who sell to
chains. The North American market features a relatively high
degree of consolidation among both producers and dealers.
The European market is about half as big as the North Ameri-
can, and is dominated by many small independent restaurants.
Consolidation among producers and distributors is not as devel-
oped as in the US. Many producers in Europe specialize in a spe-
cific product, sector or market. Ongoing harmonization of legisla-
tion and directives within the EU will benefit major producers who
can adapt more easily to more stringent criteria.
The Group’s position
Brands
The Group’s professional food-service equipment is sold world-
wide under the brands Electrolux and Zanussi. Molteni is the
Group’s niche-brand for exclusive cookers.
Products and market position
Electrolux supplies restaurants and professional kitchens with
complete solutions. The Green Spirit range offers best-in-class
environmental performance. These appliances meet end-user
demands for more efficient use of energy, gas and water, as well
as lower consumption of detergents in dishwashers. The prod-
ucts also offer a more attractive working environment with fea-
tures such as low noise level. More than 90% of the materials
used in Green Spirit products are recyclable.
Most Electrolux food-service equipment is sold through dealers.
This strategy has proven to be more successful and cost-effective
than direct sales, in light of the complex end-user structure. A
great deal of this equipment is sold in the form of modules, and
buyers often depend on dealers for help in selection of appropri-
ate functions.
In Europe, Electrolux has strong positions with independent
restaurants and health-care facilities. The Group also supplies
equipment for major projects such as hotels and cruise liners.
Electrolux products are sold throughout Europe, with Italy and
France accounting for the largest sales volumes. The Group has a
limited presence in Germany, one of the major European markets,
which offers considerable long-term potential.
In the US, Electrolux has focused on establishing strong links
with the major fast-food chains in recent years. The number of
small establishments that serve hot food is growing rapidly in the
US and in growth markets, and the Group sees business oppor-
tunities in this segment. Electrolux has developed competitive
solutions that can be tailored to the needs of a specific chain.
These solutions include the Electrolux High-Speed Panini Grill,
which requires much less grill-time.
The Group also produces entry-level products that feature high
quality but lower technology content and can be sold at relatively
modest prices. These products are clearly differentiated from
those sold under the Electrolux brand. The target group com-
prises mainly new restaurants and smaller restaurant chains. The
products are either marked with the user’s own logotype, or with
none at all.
Professional Products and
Consumer Durables generate
mutual benefits. Innovative
solutions are transferred
between these business areas,
which also benefit from synergy
effects in marketing.
Electrolux is a main sponsor
of the Swedish Culinary Team.
The chefs are world leaders in
team gastronomy. Here they
develop future food concepts in
the training kitchen at
Electrolux head office in Stock-
holm, Sweden.
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