Key to strategic development, this division is building on innovations for Private Label customers and the selective development of its own brands Bimbosan and babina. The targeted development of new markets based on the concept of Swissness and Bimbosan quality enables HOCHDORF to meet market needs first hand and test innovations. In 2021 HOCHDORF launched ground-breaking infant formula products based on goat milk and rice hydrolisate under the Bimbosan brand.
Bimbosan maintains its positive development
The Bimbosan brand maintained its positive trajectory in 2021 and has extended its leading position in the Swiss market. The Bimbosan Premium Goat Milk introduced at the start of the year exceeded all expectations and became market leader for the specialised trade within a few months.
HOCHDORF made history in December 2021 by launching its new specialist infant formula Riso PH as food for defined medical purposes (balanced diet). This infant formula is based on hydrolysed rice protein and was developed for infants who are allergic to milk protein or suffer from lactose intolerance or galactosemia. This product innovation was welcomed by paediatricians and midwives alike.
We anticipate that Bimbosan will make inroads into new international markets and continue to develop existing markets. The demand for Bimbosan products in Vietnam is increasing significantly and the product range has been extended in Singapore.
We have also expanded the product range for our second own brand babina with high-quality formulations that meet EU standards. The first customers will be supplied with our premium infant formula in 2022.
With our largest customer Pharmalys Laboratories SA, we have worked intensely on portfolio innovation and expansion as well as on registering new markets. The demand in the new markets is very promising. The long-term collaboration with Pharmalys has been reinforced with a supply agreement up to 2026. Beyond this, HOCHDORF is in negotiations for a sales cooperation with more large international customers.
The global supply problems and raw material shortages caused by Covid-19 slowed down the implementation of Baby Care projects. The prices of many raw materials also increased in the course of the year. Despite the Covid-19 challenges we still managed to gain a new customer in the Private Label business in each of the Europe, the MENA and Latin America regions.
Baby Care with high innovation rate
With net sales revenue of CHF 84.9 million, the division achieved net sales below its own predictions. This can be explained by the Covid-19 effects and the change to payment modalities in the MENA region. In Switzerland, Bimbosan maintained its position as market leader in specialised trade with a market share of over 39%. Overall, HOCHDORF achieved a net sales revenue of CHF 24.9 million with its own brands, + 2.5% compared to the previous year.
Outlook
With regard to the Covid-19 pandemic, we anticipate the restrictions of 2021 to be similar in the first half of 2022. Huge price increases across the entire supply chain have meant that HOCHDORF sales prices for 2022 have been raised or are being re-negotiated.
In Switzerland, we are aiming for full distribution of Bimbosan Riso PH in the current year and we intend to launch the vegan follow-on formula Bisoja 2 onto the market in the middle of the first quarter. We are planning to increase international marketing of the goat milk and bisoya products that were so successful on the domestic market. Some Private Label customers have already expressed interest in these products. We are also intensifying the international e-commerce sales activities for our own brands.
In the light of sustainable, new global nutritional trends, as well as challenging milk prices, HOCHDORF is strengthening its innovation activities in the area of Smart Nutrition in 2022. The aim here is to increase added value and to gradually reduce cost dependency on the raw material milk, continuing to expand in the speciality market in the medium term.
