How Valora became a focused convenience and food service provider


2022
Autonomous stores, expansion of service station business and Back-Factory acquisition

2022 was a year that saw great changes at Valora

The acquisition by Mexican company Fomento Económico Mexicano S.A.B. de C.V. FEMSA was announced and completed. At the same time, Valora continued to further expand its market share in the foodvenience sector and became the large con-venience provider in Switzerland. Valora also made a mark in 2022 when it came to extending the availability of its offering, and in the area of ESG.

The takeover bid for Valora by FEMSA came in July; this was subsequently accepted by the shareholders and approved by the authorities. Since October 2022, Valora has belonged to the Mexican retail and beverage company FEMSA. This has given rise to a new competitive player in the European convenience and food service market. The merger with FEMSA will allow Valora to accelerate the growth strategy in the convenience store and food service business and boost the capacity for innovation and digitalisation.

Valora is also doing well in its core foodvenience business. The operating business has recovered from the pandemic, and the company has further expanded its market presence through acquisitions and cooperations.

In July, Valora acquired the trendy Frittenwerk format based in Germany. By doing so, Valora is developing its food service portfolio currently mainly focused on a takeaway offering towards experiential dining and tapping into a new market. Working together with Frittenwerk, Valora aims to profit from the development of the fast-casual segment, which boasts above-average growth compared to the overall market.

Valora is also expanding its cooperation with Oel-Pool, gradually acquiring more than 70 additional shops from the service station operator and converting them into modern avec stores. This will not only significantly increase Valora’s presence in the convenience business at service stations, but will also create the largest network of convenience outlets in Switzerland with around 370 avec stores by the end of 2023.

Valora continues to invest in 24/7 shopping solutions and is constantly increasing the number of stores. It is also pressing on with the rollout of the new k kiosk vending machines in Switzerland.

In the area of sustainability, Valora is looking to halve its Scope 1 and Scope 2 CO2 emissions by 2025, and switched to 100% renewable electricity in 2022.

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2021
Autonomous stores, expansion of service station business and Back-Factory acquisition

Autonomous stores, expansion of service station business and Back-Factory acquisition

Valora is on its way to recovery in the second year of the COVID-19 pandemic. With governments' ongoing vaccination campaigns and the associated easing of restrictions, the pandemic situation is easing noticeably as of March 2021. As a result, the performance of the operating units in October 2021 was already close to pre-crisis levels. There is an initial catch-up effect in food sales, with a corresponding leverage effect on profitability.

The sales outlet network is expanded and diversified further in 2021: in the middle of the year, Valora announces a collaboration with service station operator Moveri, through which it takes over the operation of 39 service station stores from January 2022, thus doubling its Swiss service station business. German snack specialist Back-Factory is acquired in November 2021. Valora is thus now one of the five largest German catering companies and is expanding its inner-city presence. In the Netherlands, Valora is entering into a collaboration with HMS Host International, whereby twelve new BackWerk outlets will open at the largest railway stations by the end of 2022. At the same time, the conversion of the locations acquired through the SBB tender is progressing. The sales performance of the already refurbished sales outlets outperforms that of the rest of the SBB portfolio significantly, especially in the food category.

Valora also brings more convenience to the shopping experience and extends its bricks-and-mortar foodvenience offering beyond the usual opening hours. In the Autonomous Stores area, Valora opens a new, smaller wooden avec box as well as four avec 24/7 stores that function as a hybrid model – staffed during the day and autonomous at night. With the new 24/7 ServiceStore in Germany, the technology is used outside Switzerland for the first time. Valora also enters the vending machine business at the end of the year and announces the rollout of around 300 k kiosk vending machines throughout Switzerland by the end of 2022.

With regard to new e-commerce solutions, Valora launches its internally developed online tobacco shop tabak.kkiosk.ch in the first half of 2021. The new «Brezelkönig App» is also introduced to offer customers a more attractive loyalty programme.

In the area of sustainability, Valora presses ahead with its ESG initiatives with three strategic directions: People, Planet, Products. The focus is on measures relating to job security, further training and support in the event of short-time working and liquidity shortages. At the same time, Valora embarks on a path towards climate neutrality by 2050.

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2020
Covid-19, resilient business model and digitalisation

Covid-19, resilient business model and digitalisation

The global COVID-19 pandemic defines 2020 – and directly impacts all Valora markets. The fall in customer frequency caused by the government orders obliges Valora to reduce opening times at many sales outlets and even to temporarily close some entirely. Nevertheless, the foodvenience provider manages to help provide the public with basic supplies under the most stringent restrictions.

Customer footfall is particularly affected at the usually busy public transport hubs. Demand for snacks when on the move falls at the same time. On the other hand, Valora’s high level of competence in the tobacco and press categories emerges as a strength in the crisis. Valora’s balanced business model proves resilient and strict cost management helps the company post a positive result for the entire year despite the crisis.

In 2020, Valora prioritises new projects while also investing more in the conversion and upgrade of the sales outlets won in the prior year's SBB tender and in its digitalisation initiatives. Valora is ideally positioned on the digital front as the crisis accelerates the advance of digitalisation into all areas of life. Notably, Valora opens the cashier-free, open 24/7 avec box in Wetzikon (Canton of Zurich). The operation of the avec box at ETH Zurich Hönggerberg, opened in the prior year, is being extended several times in response to high customer demand.

A mobile self-checkout solution test via avec app is ongoing at the two avec stores in Zurich Oerlikon since December 2020 in addition to the normal checkout service. Valora is also working on the launch of avec 24/7 with a hybrid model. It opens in January 2021. During the week, the avec store is a regular shop with staff, on Sunday – and soon during the night – it turns into an autonomous operation. Finally, the own online store www.avecnow.ch begins operations. It delivers smaller convenience purchases to the home within a good hour.

Another core competence of Valora, food, is positioned to exploit the trend of customers’ higher nutritional awareness. Various innovations are being introduced. At Brezelkönig, Valora is launching products with plant-based meat substitute, while the fresh vegan and vegetarian selection is being expanded at avec and k kiosk. In addition, BackWerk even develops its entire range of filled products.

At Ditsch USA, the last pretzel production line becomes operational in the first quarter of 2020. Valora now has a total of 16 production lines in Germany, Switzerland and the US.

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2019
EValora as a digital pioneer – convenience locations secured

Valora as a digital pioneer – convenience locations secured

The tender for 262 SBB locations is big news in 2019. Valora secures the sites against some stiff competition and gains all the locations plus an additional 31 spaces until 2030. Valora thus secures its position as Switzerland's leading kiosk operator, expanding the convenience share of its overall business at the same time. In the second half of 2019, Valora starts converting the new locations into avec convenience stores and modernised k kiosk sales outlets with an expanded food offering. The conversion work is set for completion by 2022.

The integration of the B2C Ditsch and BackWerk formats into the new Food Service DE business unit leads to synergies in the food area, including for products and processes. The capacity expansion in pretzel production is concluded successfully: in the fourth quarter of 2019, two of the three new product lines become operational in the US and Germany.

The launch of the first cashier-free convenience stores avec box and the future store avec X in April 2019 at Zurich main station represent a major milestone in the implementation of Valora’s digital strategy. It also underlines Valora’s pioneering role in Switzerland as far as self-checkout solutions are concerned.

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2018
Even more foodvenience – continuously developing the concepts

Even more foodvenience – continuously developing the concepts

2018 sees existing formats renewed. In only five months Valora develops a new concept for avec that is strictly focused on the latest foodvenience and ultra-fresh products. avec also now has a regional product line - something new in small-scale retailing in Switzerland. Eight avec stores are opened in the new design by the end of 2018. Valora also announces the opening of the first avec box in spring 2019, the first cashier-free sales outlet in Switzerland. This allows Valora to offer customers 24/7 access to foodvenience and the fresh products range for the first time. In addition, in 2018 Valora revises the Press & Books retail format and opens the first branch with the new look and feel at Zurich airport. Valora also updates the k kiosk format, so it will include more fresh products and food offerings in future.

In the Food Service division, Brezelkönig sales outlets get a makeover. The new BackWerk concept is also adapted for Switzerland and the store in Winterthur reopens. Valora continues to invest in expanding pretzel production facilities to strengthen its leading position in this market. At Ditsch USA Valora manages to double capacity on the existing production line. A further line is also under construction in the USA and two more in Germany.

Valora achieves a strong operating profit in 2018, demonstrating its resilience despite the decline in the print media business in Germany. By permanently renewing its formats and range of offerings, including new services and digital solutions, the dense network of outlets and B2B business for pretzels mean Valora is very well positioned. On this basis it will continue to implement its growth strategy successfully in future.

This is helped from 1 January 2019 by the new organisation with the market and customer-focused Retail and Food Service divisions and Group-wide Shared Services. The new structure allows Valora to better capture synergies and ensure expertise is shared across the Group.

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2017
Further growth through acquisitions and investments

Further growth through acquisitions and investments

Following the completion of the transformation process in 2016 to become a focused convenience and food service provider, Valora implements its announced growth initiative in 2017. The acquisition of the franchise business BackWerk turns Valora at a stroke into the leading vertically integrated snack food provider in Germany. As a result, Valora has a much greater inner-city presence and enters the Dutch market. In the B2B business, significant developments include the acquisition of the up-and-coming pretzel producer Pretzel Baron in the US and the replacement of a production line at the Ditsch pretzel bakery in Germany.

Following the successful capital increase by CHF 166 million in autumn 2017, a bonded loan for EUR 170 million is placed on the market with attractive conditions in January 2018. This is a significant step by Valora towards the implementation of its long-term financing strategy.

In addition to various growth and investment activities, Valora continues to expand its offering of products and services. This includes new launches in the area of e-smoke and other tobacco alternatives, the introduction of the award-winning k kiosk app focusing on promotions and loyalty offers, the consolidation of the digital financial offers through the bob Finance brand, and the modernisation of Caffè Spettacolo and the avec sales outlets. Valora also plays an active role in digitisation topics as a partner of Digital Day 2017 in Switzerland and exploits new technological opportunities to improve its internal processes. In addition, Valora concludes a new Collective Labour Agreement with the Swiss Association of Commercial Employees stipulating higher minimum salaries for employees and other improvements in working conditions.

Valora makes operationally and strategically significant progress in 2017 and is on a growth path. The international expansion of Valora continues to progress and the company is even better positioned in a market shaped by a growing trend towards “foodvenience”.

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2016
Transformation successfully concluded – new growth strategy

Transformation successfully concluded – new growth strategy

With the sale of Naville Distribution and the sale of the Naville property in Geneva, Valora successfully concludes the transformation of the Group into a focused convenience and food service provider. The further optimisation of the sales point network in Switzerland and Germany and the expansion of the Ditsch/Brezelkönig retail formats remain a priority.

At the same time, we expand the integrated value chain with our own brands ok.– in Germany, Caffè Spettacolo in Switzerland and Germany as well as the increasing use of Ditsch bakery products in our own convenience stores. We also push ahead with the expansion of production capacities for pretzel and bakery products for third-party customers.

The selection of food and beverages on offer is also expanded across the entire kiosk and convenience business. For example, around 100 sales outlets in Switzerland receive Starbucks coffee machines and approximately 650 Caffè Spettacolo machines.

At the same time, various new digital offers are launched, including the Caffè Spettacolo app that allows customers to place orders while on the move and to pay via the app, the scan&go pilot project aimed at increasing transaction speeds during rush hour periods, and the establishment of a Retail Analytics team. The objective is to tailor new offers better to customer needs with simple and practical digital solutions and to increasingly position Valora as a service partner.

These numerous initiatives lay a good foundation for our medium to long-term growth plans. The strategy provides a clear focus: growth and expansion, efficiency, a performance-driven culture and innovation.

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2015
Focus and efficiency

Focus and efficiency

Significant strategic milestones are achieved in 2015 and operational efficiency is improved throughout the company.

The sale of the Trade division and the outsourcing of warehouse logistics in Switzerland are the last major steps of the focusing strategy. This involves Valora concentrating on the convenience and food service business with a major stake in pretzel production.

Moreover, the already large network in Switzerland is successfully expanded through Naville. Operating efficiency is improved across all core processes in Retail Switzerland and Group management as part of the Naville integration.

In Retail Germany, we succeed in strengthening the organisation and laying the foundation for future growth. The founding of the fintech company bob Finance AG is another milestone. The Valora Lab is another new creation – a digital innovation team developing digital products and services, such as the Caffè Spettacolo app.

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2014
Transformation process

Transformation process

Valora undergoes a comprehensive transformation process. The aim is to become the leading small-scale retailer at high-frequency locations and a specialist in ready-to-eat foods.

The press wholesale operation was sold last year and the Valora Trade division classified as a disposal group. These are two important milestones in the transformation. The acquisition of the small-scale retailer Naville in French-speaking Switzerland is an important step within this process. It enlarges the location network, which now covers the whole of Switzerland. This opens up exciting new opportunities for Valora.

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2013
Initial successes – good prospects for further development

Initial successes – good prospects for further development

2013 is an important year for Valora in terms of strategic measures. The focus remains on the core small-outlet retail business. The transformation of the Swiss kiosk network makes good progress. The 111 sites which were either newly built or re-designed perform well. A key attribute of these transformed outlets is their clear emphasis on food and beverages for immediate consumption. The Ditsch/Brezelkönig business continues its successful expansion and enjoys excellent growth prospects.

At Valora Services, key decisions are taken to pave the way for handing over control of the business. The division also expands its logistics services. Valora Trade begins to reap its first rewards from the initiatives taken to improve its profitability.

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2012
Having successfully completed some major acquisitions, valora now focuses on its core competencies

Having successfully completed some major acquisitions, valora now focuses on its core competencies

The acquisition of 1,300 Lekkerland subsidiary Convenience Concept retail outlets in Germany in January 2012 is a major milestone. In early 2012, Valora also purchases the outlet network operated by Schmelzer-Bettenhausen, Austria’s largest railway-station bookseller. In the autumn of 2012, Valora acquires the Ditsch/Brezelkönig group of companies, further expanding its portfolio of retail formats. The focused product range and the expansion of the location portfolio ideally complement Valora’s existing retail formats in Germany and Switzerland.

These activities enable Valora to further enhance its leading position in Europe’s German-speaking markets, establishing the Group as a leading retailer with more than 3,000 outlets in four countries. The “Valora 4 Growth” strategy programme is successfully concluded. In the future, the primary objective of the “Valora for a fast moving world” programme will be to achieve a sustained increase in profitability by focusing on Valora’s core areas of retail expertise and exploiting the Valora Group’s outstanding potential.

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2011
“Valora 4 Growth” pursued consistently

“Valora 4 Growth” pursued consistently

The integration of the German outlets acquired in 2010 into the k kiosk format continues apace and the number of k kiosk units in Switzerland adopting the agency business model also grows rapidly. By acquiring the distributors EMH in Norway and ScanCo in Sweden, the Trade division is able to add two attractive cosmetics companies to its portfolio. In addition, the purchase of niche distributor Salty Snacks Delicatessen in Germany enables it to expand into the profitable savoury baked goods category.

2010
“Valora 4 Success” developed further

“Valora 4 Success” developed further

A number of major milestones are reached and some 80 percent of the measures under the strategic programme have now been accomplished. The next phase, the “Valora 4 Growth” strategy, is initiated in November 2010. It is based on organic margin and turnover growth in all areas and acquisition-led expansion in Retail/Services and Trade.

2009
Valora implements comprehensive strategy programme

Valora implements comprehensive strategy programme

The programme “Valora 4 Success” has four core initiatives: focus on the core business, growth for the convenience sector, improvement of efficiency and the strengthening of our corporate culture.

2008
Valora employs over 6,000 staff

Valora employs over 6,000 staff

Valora operates 1,404 of its own retail outlets in three European countries and supplies approximately 60,000 wholesale customers in ten countries.

2006/2007

Restructuring of kiosk business in switzerland and sale of fotolabo

Valora now has three components to its business model: small-scale retail, press & book wholesale, distribution of branded goods. It also restructures its kiosk business in Switzerland and hives off Fotolabo.

2004
Focus on core business – restructuring

Focus on core business – restructuring

The degree of complexity in its corporate structures prompts Valora to dispose of business areas which are no longer core activities – including the traditional Merkur coffee and specialty store businesses. New k kiosk styling introduced.

2001

Sale of mattress business and expansion

Kiosk and press wholesale is expanded, initially to Germany, then Luxembourg and Austria.

2000/1999
Press distribution strengthened / Caffè Spettacolo launched

Press distribution strengthened / Caffè Spettacolo launched

Strengthening of press distribution: Valora acquires Melisa in Ticino, thus expanding its press distribution activities. Purchase of Fotolabo: Valora acquires Europe’s leading mail order film developer. The Italian coffee bar concept Caffè Spettacolo is launched in Switzerland.

1997

Focus

From five to three divisions – Kiosk, Alimarca, Slumberland. Selecta is sold.

1996

New name

On 1 July 1996, Merkur Holding AG becomes Valora Holding AG. The diversification strategy aims to reduce overall exposure to market volatility and the risks borne by investors. Companies with weak profitability are replaced with higher margin firms.

1991

Entry into consumer goods business

The Swiss firm Alimarca AG is acquired, followed by further trading company purchases. The acquisition of the Scandinavian Consiva group in 2001 makes Valora Europe’s leading distributor of fast-moving consumer goods.

1990

Entry into kiosk and press wholesale markets

The Group acquires Schmidt Agence and Kiosk AG, whose combined Swiss outlets number 1,500.

1988

Start of non-food activities

Merkur acquires Bico, Switzerland’s leading mattress manufacturer.

1985
Merkur’s growth phase

Merkur’s growth phase

Merkur acquires the Selecta Group, whose activities attain a European dimension over the next four years, with operations established in Germany, Sweden and France.

1934
Kiosk AG

Kiosk AG

Foundation of Kiosk AG.

1920

Diversification

Numerous acquisitions in and outside Switzerland transform the face of the Group over subsequent decades.

1906-1919

Rapid early development

Merkur AG expands it network to 130 outlets and acquires “Schweizerische Kaffeeröstereien”, a coffee roasting company.

1905

Foundation

A group of innovative entrepreneurs in Olten establish the “Schweizer Chocoladen & Colonialhaus”, the parent company of Merkur AG and the precursor of today’s Valora.