Megatrends

Global changes shape our operating environment in the long term. We pay attention to the  challenges and opportunities arising from megatrends that affect Olvi Group. Through our strategy and sustainable operating method, we create the future with the choices we make today.  Megatrends are also taken into account in our focus areas of corporate responsibility.

Sustainable development and responsible operating methods

Impacts

• There will be increasing expectations and a heavier focus placed on sustainability
• Our stakeholders expect transparency, reliability and safety throughout the value chain; a  sustainable business model is a prerequisite for future success
• Consumers are particularly interested in the carbon footprint of products
• Regulation and reporting obligations will increase, the significance of sustainability reviews will  grow
• The scarcity of natural resources will require resource efficiency and climate change adaptation; the circular economy will become a necessity
• Impacts of the climate change will become increasingly evident; the climate will grow warmer, biodiversity loss will accelerate, and extreme weather conditions will become more common
• The development of sustainable technologies is progressing

Our answer

• We engage in impactful sustainability work and develop our operations and the entire value chain in line with sustainable development, in cooperation with our partners
• We consider expectations in our products, operations and communications
• We assess the environmental impacts of our operations and reduce our climate emissions
• We ensure that the materials we use are recyclable and increase the utilisation of the circular economy
• We review the impact of the climate change on our operations in light of risks and opportunities
• We contribute to the alleviation of the environmental crisis for our part and participate in ecological reconstruction
• We invest in environmentally friendly production technologies and invest in acknowledging social
  responsibility and the transparency of our operations
• We promote local vitality

Digitalisation

Impacts

• Data and information volumes are growing, creating a data economy and digital ecosystems while simultaneously increasing the sharing of data across the value chain
• Automation, robotics and artificial intelligence develop our ways of working and increase efficiency
• Digitalisation accelerates the technology transformation and modifies operating models
• Technology and data become part of our daily lives, highlighting the need for continuous competence development
• Digitalisation and social media are reflected in consumer and customer behaviour: ease, transparency and speed are highlighted
• The boundaries between the physical and virtual worlds are blurring and digital platforms are increasing throughout the value chain

Our answer

• Digitalisation is part of our strategy aimed at ensuring our competitiveness and ability to change in the future
• We invest in data management and utilisation as well as proactive management by information in our own operations as well as throughout the value chain
• We use multiple channels and interaction for consumer communication and better customer  experiences
• We ensure our employees’ competences and integrate digital solutions in our work

Globalisation and global economy

Impacts

• Rapid global changes are affecting local operating conditions
• Geopolitical tension is increasing
• Long supply chains are more vulnerable than before, and the amount of local acquisitions will increase
• Trends and product ideas spread rapidly; markets are becoming integrated
• Major international companies are becoming stronger, and local operators are challenging them
• Pandemics, epidemics and mental health problems increase
• Human rights aspects are highlighted as part of the promotion of sustainable development
• The total world population is increasing even though, in certain regions, the population is decreasing. At the same time, immigration and the number of refugees increases and
  urbanisation continues
• People’s life expectancy is increasing, the proportion of the old-age population is growing, and the dependency rate is deteriorating
• The development of wealth creation weakens and the economic inequality of the population increases

Our answer

• We focus on selected markets and differentiate ourselves through a local approach while also strengthening our ability to act as an efficient and credible international operator
• We monitor global trends and changes and respond to them through agile operating methods and product development
• We ensure the predictability of prices and availability of materials
• We develop risk management and scenario work while considering the perspectives of sustainable development to ensure operational continuity
• We develop capabilities for managing a more diverse and heterogeneous workforce

Changes in consumer behaviour

Impacts

• Naturalness, healthiness, individuality, sustainability and product origin are emphasised in choices
• With trends becoming global and spreading more rapidly, product lifespan is decreasing
• Consumer groups are becoming polarised, and consumption is becoming more personalised and value-based; quality and price awareness are also polarising consumers
• The number of single-person households is increasing
• Hybrid shopping is growing, which changes the relationship between physical and digital shopping, highlighting the ease and speed of shopping and increasing the opportunities for online shopping
• Purchasing decisions are increasingly based on peer reviews and recommendations
• Consumers’ purchasing power and behaviour are affected by the decrease of available funds caused by inflation

Our answer

• We increase consumer insight and develop marketing, sales and brands in a way that supports awareness, buying behaviour and buying recommendations
• We invest in innovative products and new product segments and consider trends in taste, raw materials and packaging
• We pay attention to people’s overall well-being
• We take into account the opportunities created by new
  consumer groups and packaging sizes
• We develop multi-channel sales to support hybrid buying
• We develop new product and service concepts and access to product information
• We develop production and logistics process management to maintain efficiency as product volumes increase due to polarisation and individuality