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Sustainability Report 2015 of the MEGGLE Group

132.3 Products and product strategy 2.3 Products and product strategy Quality is the best policy Sustainable company development is only possible if it is based on long-term product strategies – we take this approach for all our product and process development work. Our top priority here is to produce ex- cellent products of the very highest quality which focuses on the benefit to the customers. At MEGGLE, this product strategy goes hand-in-hand with a coherent brand strategy. All of the three product groups, MEGGLE Consumer Products West, MEGGLE Consumer Products East and MEGGLE Functional Products, offer a broad range of dairy products, partially for regional markets and partially for the global market. Intensive communication among the three divisions and sharing of know-how and experience ensures that the company takes a broader view and also creates synergies that flow into our product development and ultimately benefit our customers. MEGGLE Consumer Products West primarily concentrates on butter and butter specialities, baked goods with butter speciality fillings as well as vegetable fat spreads.The range also includes products for food retailers, wholesalers and restaurants. MEGGLE Consumer Products East is primarily active in the markets in Central and Eastern Europe. Six production facilities and seven sales offices supply practically all the countries in the region. The product range primarily covers what is commonly known in the dairy industry as the ‚white line‘, i.e. drinking milk (UHT and ESL), yoghurts, yoghurt drinks, cream products, cream cheese and soft cheese. The Functional Products division is divided into three segments. The Business Group Excipients & Technology is a global leader in the production of pharmaceutical lactose as a carrier substance in many medicines, and is active in more than 100 countries with authorised representative offices. MEGGLE Food Systems is another business group that specialises in the development, production and global sales of functional milk and whey-based compounds for the food industry. The third member of this division is the Business Group Single Ingredients which is responsible for the production and worldwide distribution of compounds and semi-finished products for the feed industry, based on partially de-sugared whey powders which are a by-product of lactose and casein production.

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