Vision & Strategy

Vision & Strategy
Our vision
and strategy

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We offer the best food and convenience concepts based on: an in-depth understanding of customers and formats, operational excellence, ongoing innovation and agility as well as optimal value creation.
Five strategic objectives for the next five years
Five strategic pillars

Growth, efficiency, innovation, performance-oriented culture, sustainability.

Valora has communicated its strategy until 2025 for the entire Group and its Retail and Food Service divisions in order to move closer to the vision of having the best food and convenience concepts. The strategy comprises the five strategic thrusts of growth, efficiency, innovation, performance-oriented culture and sustainability.

Growth

  • Expansion of the sales outlet network
    Valora wants to further expand its network of sales outlets. The main focus in Retail will be on the convenience formats such as avec and ServiceStore DB, as well as k kiosk and cigo where Valora also sees growth potential. Growth in Food Service will be principally through BackWerk, especially with new locations in the Netherlands and Austria plus shop-in-shop presence. Selective expansion is planned for the other formats. In addition, Valora is open to suitable acquisition opportunities in its core business of foodvenience.

  • Expansion of pretzel production capacity
    In its B2B business, Valora aims to exploit the integrated value chain for pretzel production and build on its strong market position. The Food Service division’s main expansion focus is predominantly on the two biggest global pretzel markets, i.e. Germany and the US. Valora is aiming for annual growth in its B2B channel of up to +10% per year by 2025.

  • Increasing the offering’s attractiveness
    Valora wants to achieve solid samestore revenue growth in the B2C area and grow by about +0.5% per year. The expansion of the higher-margin food category, especially fresh products, will play a major part in optimising the current range. In addition, Valora aims to further expand its offering of digital and other services. Tobacco is still a profit contributor, whereby alternative products are also promising.

  • Stronger position as a promotion platform
    In addition to expanding its own product range, Valora aims to further consolidate its position as a preferred marketing platform. The direct customer contact in the Valora formats allows partner companies to present their products and strengthen their brand value, notable examples being promotions for tobacco products, press articles or lottery tickets.

Annual Report

Growth
Efficiency

Efficiency

  • Strengthening vertical integration
    Own brands such as ok.– or Caffè Spettacolo plus Valora’s inhouse pretzel production are a key competitive advantage in terms of vertical integration. Valora wants to exploit these strengths more going forward and to increase the proportion of own brands in its overall product mix. At the same time, Valora aims to establish an even clearer positioning when marketing its own brands.

  • More efficiency to improve profitability
    Valora does not rely solely on growth, profitability is also essential to ensure sustainable financing of investments. Processes are improved through automation, retail analytics and efficient working procedures. Enhanced cooperation within the Group enables know-how transfer across borders, formats and topics.

Annual Report

Innovation

Innovation

  • New food and technology concepts
    Valora is committed to consistent renewal in order to stay competitive. The Group’s objective is to launch fresh food and further new concepts and products. Valora also uses new technologies to develop softwarebased solutions for customers and to develop its operations and organisation. It takes more than courage to pursue this innovative course, speed and agility are also very important. Valora relies on internal expertise and is developing its in-house skill set for food and technological development. It also welcomes innovation from industrial partners and offers them, through its sales outlet network, a platform so it can work with them to pioneer new foodvenience market models.

Valora Digital Annual Report

Performance-oriented culture

Performance-oriented culture

  • More entrepreneurship, customer focus and employer appeal
    Valora relies on entrepreneurial operators and motivated staff to implement its strategy. That is why it is Valora‘s ambition that at least 90% of the sales outlets are managed by franchisees or agents by 2025. Valora wants to offer its staff an open and dynamic working environment in which they can progress consistently. Valora’s objective is to exploit employees’ strengths, nurture their talent and enable them to take the initiative and implement ideas with vigour. Valora will not just recruit people with the necessary professional skills, but also those who are compatible with the company’s culture. As a result, Valora will sustainably enhance its appeal as an employer.

Valora Career Annual Report

Sustainability

  • For people and the environment
    Stakeholders rightly expect Valora to contribute to sustainable development as a responsible company. Valora pursues a comprehensive approach to sustainability – based on the three action areas of People, Planet and Products – and is careful with its resources. The priority is fair employment conditions for all employees in the network and the promotion of talent and careers. Valora also implements measures to avoid food waste, reduce energy consumption and protect the climate. Finally, Valora aspires to offer environmentally friendly, fair products and healthy alternatives while also paying attention to the issue of sustainable packaging.

Sustainability Annual Report

Sustainability

Our priorities

«In 2020, we will put all our efforts into achieving targeted growth, expanding the successful foodvenience approach and investing in innovation.»
«In 2020, we will put all our efforts into achieving targeted growth, expanding the successful foodvenience approach and investing in innovation.»

Michael Mueller, CEO of the Valora Group

«We will continue to expand the production of our much-loved pretzels in order to meet the high demand in the B2B business and make even better use of the integrated value chain.»
«We will continue to expand the production of our much-loved pretzels in order to meet the high demand in the B2B business and make even better use of the integrated value chain.»

Thomas Eisele, CEO of Valora Food Service

«Thanks to our performance culture and great innovative strength, we have positioned ourselves on the market as an attractive employer. At Valora, employees get the opportunity to act entrepreneurially and further their personal development.»
«Thanks to our performance culture and great innovative strength, we have positioned ourselves on the market as an attractive employer. At Valora, employees get the opportunity to act entrepreneurially and further their personal development.»

Barbara Becker, Chief Human Resources Officer at the Valora Group

«Our customers are delighted with our new concepts – not only the appealing design but also the broad range of fresh food products and innovative services.»
«Our customers are delighted with our new concepts – not only the appealing design but also the broad range of fresh food products and innovative services.»

Roger Vogt, CEO of Valora Retail

Our objectives

Valora has set itself ambitious but realistic operational targets for the period up to 2025:

In the medium term, Valora expects the EBIT margin to grow to approximately 5% in 2022. By then, the conversion of 262 SBB locations, which were successfully secured until 2030 in a tender, will be concluded. This target is in line with the longterm operational targets.

2-3
External sales / per year
0.5
Gross profit margin / an average percentage points per year
0.2
EBIT margin / an average percentage points per year
7
Earnings per share (without extraordinary effects) / an average per year
Trends
Trends

Three social macrotrends determine what Valora customers need:

Mobility, the changing lifestyles and rapid growth of digitalisation in everyday life. As a clearly positioned foodvenience provider, Valora systematically aligns its business and offering with these trends and their resulting customer needs. Valora is where its customers want it to be, providing them with what they want whenever they want it.

  • Mobility
    Society is becoming ever more mobile. People are permanently on the move – by road, rail or air. The boundary between private life and work, city and countryside is becoming blurred. However, daily needs are constant and must be met, even when on the move.

  • Lifestyle
    Lifestyles have shifted. A growingnumber of people live in smallerhouseholds or alone. People aremore flexible with their dailyroutine and are more likely to eatoutside the home, at differenttimes of day, quickly consumingsmaller meals or snacks.

  • Digitalisation
    Meanwhile digitalisation hastouched all areas of life. Peopleare always connected through theirsmartphones wherever they maybe. The opportunities presentedby new technologies fundamentallyredefine the customer relationshipand shopping experience byopening up new options.

Annual Report