World Grain - November 2009 - 55

FEATURE: A DOMINANT FORCE IN EUROPEAN MILLING

22,000 to 30,000 tonnes, there are no immediate plans for expansion - at least as
long as Pannonmill operates another mill
in the nearby city of Komarom.
FUTURE EXPANSION
Kempkes said LLI Euromills' strongest
market from a sales standpoint is Germany, where VK Muhlen operates 12 mills
and is the market leader at around 20%,
followed by Poland, where VK Muhlen
also has a leading share of the market.
He said the biggest immediate growth
opportunities for the company are in
Poland, Romania and Bulgaria. Last
December, LLI Euromills acquired
all shares for the Loulis Group's mills
in Romania and Bulgaria, giving it a
98% stake in Titan S.A. in Romania
and 100% ownership in Sofia Mel in
Bulgaria. Titan holds a national market
share of approximately 8%, which LLI
anticipates will increase in the near future, while Sofia Mel holds a 17% share
of the Bulgarian flour market.
"We continuously screen what is on the
market to fill our 'white spaces' in both
the Adriatic Regions and also farther to
the east," Kempkes said. "Thus, conquering new markets or business is an important element of our 'strategic triangle,'
namely optimization, collaboration and
expansion. All of the latter combined
should translate into business growth of
more than 1 million tonnes of wheat processed over the next three years."
Kempkes said one of the keys to
growth has been developing a keen
sense of consumer trends and demands
in each of its markets.
"Consumption habits certainly differ
across our markets, which stretch from
the Northern Sea to the Mediterranean
Sea," said Kempkes. "However, research
indicates that customers will favor frozen
and bake-off products over fresh bread
and put more emphasis on health and
convenience. We are staying at the forefront of this development through our
high-tech milling entity - Kampffmeyer
Food Innovation - in Hamburg."
He said customers are also requiring
an ever-improving price/performance

package, such as tailor-made flour, costoptimized recipes and innovative product ideas, which he says LLI Euromills
is addressing through its "people skills,
marketing-affinity and technology."
Customers are also demanding better corporate citizenship, he said, adding that LLI Euromills is going to great
lengths to succeed in this area. He

pointed to one example of this at the
company's mill in Graz, Austria, which
includes a new photovoltaic (solar-powered) component that produces enough
alternative energy to package its premium flour brand, "Farina."
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