Norweigian consumer goods firm Orkla has said it is planning "fewer, bigger innovations" and targeting more acquisitions as it looks to secure growth.
President and CEO Peter Ruzicka, said: "Growth will be achieved in part through bigger innovations, which will increasingly be launched across Orkla's markets and business areas. In addition, acquisitions in selected categories, channels and markets will strengthen Orkla's position as a leading branded consumer goods company."
Orkla, which has shedded non-FMCG units in recent years to focus on consumer goods, told investors the "first priority" for its capital is for acquisitions in the sector.
Yesterday, Orkla announced the acquisition of Norweigian liquorice maker Lakrisgutta. Orkla has made three other acquisitions in the food sector in 2015. In June, the company struck a deal to buy Austrian muesli-to-organics firm Bioquelle. A month earlier, Orkla snapped up a majority stake in Icelandic firm Nonni Litli, which produces dressings, sauces and mayonnaise-bread salads for the grocery and foodservice sectors. Orkla also announced the acquisition of Swedish frozen vegan food maker Anamma Foods in May.
The group also outside made acquisitions outside food. Last month, Orkla completed the acquisition of home and personal care business Cederroth.
Orkla also said today it planned to improve profitability by increasing operational efficiency throughout its value chain. According to its presentation, its initiatives would include working on a centralised supply chain and increasing the "effectiveness" of its sales force.
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"By working more closely as one Orkla, the Group will exploit synergies more effectively across its operations, while cultivating Orkla's unique local customer and consumer insight," the company said in a statement.