Operating model
Royal Unibrew is a multi-beverage business, with a decentralized organizational structure that fosters agile decision-making, customized to meet the preferences of local consumers and customers. Our product portfolio consists of beverages that can be stored at ambient temperatures, ensuring extended freshness and optimal efficiency across our entire value chain. Our company is rooted in robust local brand portfolios, that are strengthened by valuable international partnerships. Core to our success is a strong and efficient route to market, which in our main markets in the Nordics is a direct to customer model.
Our business model is operated with a lean centralized setup, where only procurement and IT are run as global functions. This is to ensure that we reap the scale benefits from common procurement and IT across the Group, and that we monitor and operate the business through our simple and proven performance management, ERP and supporting systems. The commercial responsibility is locally anchored; thus, the commercial departments in local markets have a high degree of decision power, which secures a clear mandate and local ownership of the business development.
Value chain
It is important that we achieve a stable, high-quality and sustainable supply of the ingrediens we use for beverages, such as barely, water, sugar, juice, etc. Therefore, we work in close collaboration with our suppliers to understand the environmental and social footprint of our total activities. Additionally, our suppliers must comply with our Code of Conduct and ethical guidelines. We operate 19 production facilities across nine countries. In general, the vast majority of our product range is manufactured in these facilities, meaning that all beverages are filled in cans, glass bottles or PET bottles at the same filling lines no matter what product category. We do not produce our traded goods in-house, which also goes for some of our partner brands. On the commercial side, our multi-beverage platform also yields a lot of synergies, as the same salesforce can sell all our products. Hence, the sales force can spend more time with our customers securing strong commercial relationships and top class in outlet execution.
Route to market
Our route to market is a critical component of our operating model, as it ensures that our broad and high-quality product portfolio reaches customers and consumers efficiently. We strive to optimize our product availability through our well-established distribution setup, while at the same time maintain our high quality standards to uphold and enhance customer satisfaction. In most of our multi-beverage markets, we operate a direct distribution model that ensures a seamless and timely flow of products from our warehouses directly to retail outlets, bars, restaurants and convenience stores or our customers’ own central warehouses. In our multi-niche markets, we optimize the route to market through a combination of own direct distribution and distribution partners and wholesalers. In our International business segment, we sell directly to distributors, our customers, who then stands for the in-market distribution.
Products/brands
Our multi-beverage model encompasses all relevant categories where products can be stored at room temperature, yielding scalability advantages across the value chain. Operating in both non-alcoholic and alcoholic segments, we aim to provide no/low sugar options in the non-alcoholic segment and no/low alcohol alternatives in the alcoholic segment. Our product portfolio consists of strong local brands, many of which hold iconic status in their respective home markets. Through robust marketing initiatives that reinforce brand identities, we aim to excel across all channels and further enhance the premium quality of our overall portfolio. In addtion to our own brands, we offer a range of well-known strong international brands, which we have secured through licensing agreements or third-party distribution agreements. We aspire to attain a market-leading position within the categories we operate in. This aspiration applies to each of the markets where we are present.
Environment, social and governance
We have an ambitious aspiration to become a global leader in sustainable beverages, which is manifested in our ambitious decarbonization targets. At the end of 2023, these emission reduction targets were validated by the Science Based Target initiative (SBTi). We also continue to support the UN Global Compact.
We support and seek a circular economy for our packaging, and we want 100% of our packaging materials to be recycled, recyclable or reusable by 2025. With well-established deposit return systems in our main markets, we see high recycling rates, but we continue to make efforts to improve.
Our colleagues are the foundation of our business, and we want to attract the most engaged, diverse and talented people with an entrepreneurial attitude, who are empowered and eager to do better every day. We employ around 4,000 people across the Group, and we aim to create a safe work environment, where our talented and loyal employees will feel engaged and included in our dynamic, team-oriented work culture that truly values everyone.
Royal Unibrew is dedicated to being a responsible community member and fostering positive contributions to the sustainable development of society. Our commitment extends to the communities where we operate, and we seek to contribute to the well-being of all our stakeholders, recognizing that this investment strengthens our business in the long run. Embedded in our culture is the active engagement not only with the local communities around our facilities, sports clubs, and the families of our employees but also with our brand communities in partnership with our customers, business associates, and non-governmental organizations (NGOs).