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High-Quality Products at Fair Prices: A Successful Story

Learn about AJE, a Peruvian multinational company that offers high-quality products at fair prices. Explore their successful business model and their expansion into different markets. Discover their broad product portfolio and their commitment to providing targeted products to meet consumer preferences.

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High-Quality Products at Fair Prices: A Successful Story

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  1. “High-quality products at fair prices” September, 2010

  2. I. Overview

  3. AJE began operations in 1988 in Peru selling homemade cola drinks door to door • The company went to international scale starting operations in Venezuela in 1999. • Currently, AJE is the third largest producer of carbonated soft drinks in Latin America. Company Background AJE is one of the few Peruvian multinational companies. It has a successful business model implemented in different markets in Latin America and Asia. 1999 2000 2002 2004 2006 2008 2009 1988 1991 1993 1994 1997 2005 2007 OPERATIONS IN PERU INTERNACIONAL OPERATIONS Panamá* Luxemburgo** Ayacucho Huancayo Bagua Sullana Lima Venezuela Ecuador México C. Rica Guatemala Tailandia Colombia 1era planta de Cerveza en Perú Chile*** Nicaragua* El Salvador* Malta** Honduras Belgica** FRANCA España** * Distribution Centers ** Administrative Offices *** Malt 2

  4. Strategy: To produce the highest quality product at the lowest price. Profitability Business Strategy Profitability 1. High-quality products at fair prices 2. Efficient, low cost operations 3. Light and simple organizational structure Higher and more diversified income Sales Income / Profitability Categories Markets 4

  5. Lower prices and higher quality allowed successful market penetration. Win-win situation for consumers and producers. Peruvian case Carbonated Drinks Market (Perú – liters billion) Bottled Water Market (Perú – liters million) Launch of Kola Real in Lima Launch of Cielo CAGR: 7.9% CAGR:46.8% Source: Produce Source: Produce Juices (Perú – liters million) Soft drink - price index Launch of Cifrut Launch of Pulp Source: INEI CAGR:64.7% Source: Produce 5

  6. The company has a broad product portfolio. Different products and formats are positioned to meet the consumers’ preferences. Delivering targeted products to key markets 7

  7. After achieving relevant market share with Big Cola, AJE has successfully applied its business model to other growing beverage markets Market Share (1) Soft dirnks / Ltrs by year • AJE applies its business model to soda drinks at the beginning. Then it expands its portfolio to new products such as bottled water, juices and sports drinks. • AJE has made these products available to the low end market. An extensive population was covered through out our distribution network (1 million points of sale). • AJE´s strategy is not necessarily to be the leader in the market. 8

  8. A solid and successful growth strategy AJE: “A successful story” Billion of liters sold by ATIC CAGR: 46% 6

  9. Key Financial Indicators Structure of Sales – 2009 Net Sales (USA Million) CAGR: +21% / +US$ 478 MM EBITDA (USA$ Million) Net Profits(USA$ Million) CAGR: +54% / +US$ 119MM CAGR: +72% / +US$ 77MM 9

  10. AJETHAI CO,LTD • Began operations in February 2006. Currently it has 6 lines of production. • Líne 1 Mesal 0.535 lts:   164,000 boxes / month •                          3.100 lts:      80,000 boxes / month • Línea 2 Mesal 0.535 lts:   275,507 boxes / month • Líne 3 Mesal 0.535 lts   282,253 boxes / month • Líne 4 Sacmi 0.535 lts    369,600 boxes / month • Línea 5 Sidel 0.535 lts    650,000 boxes/ month • Líne 6 Krones 0.330 lts   403,200 boxes / month (juices)

  11. AYACUCHO PREFORM CO,LTD and AYACUCHO CAPS • Ayacucho Preformbeganoperations in June 2007. Currentlyit has 4 lines of production: • Line 1 Husky (72 Cavities): Pref. 22gr.     17’000,000 pcs / Month • Líne 2 Husky (72 Cavities): Pref. 22gr.     17’000,000 pcs / Month • Line 3 Husky (96 Cavities): Pref. 20gr.     20’700,000 pcs / Month • Line 4 Husky (96 Cavities) Pref. 20gr     20’700,000 pcs / Mes • 2. Ayacucho Capsbeganoperations in July 2010. It has 2 lines of productions: • Linea 1 Sacmi 64 Cavidades, Capacidad Produccion 100% 44’000,000 pcs/Mes • Linea 2 Sacmi 64 Cavidades, Capacidad Produccion 100% 44’000,000 pcs/Mes

  12. KOLA REAL TRADING CO,LTD. • KRT began operations in August 2008. • There are 10 CEDIS (Distribution Centers) covering 30% of territory: Chonburi, Rayong, Angthong, Rama II, Bang Na, Rangsit, Nonthamburi, Chiang Mai,Nakhonratchasima y Nakhonsawan. • Econoreds: 70 % of territorial coverage through out wholesalers • Market Share: 16% • Selling points: 121,493 CEDIS ECONORED SOUTH ECONORED NORTH ECONORED NORTH-EAST

  13. II. Takeaways

  14. Takeaways • Aje is a multinational company with more than 20 years of experience • Proven successful innovative business model • Experienced management with proven track record • Quick response to market opportunities • Atic showed sound financial performance in a world wide adverse economic environment Aje: “A successful story” 12

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