GROWTH BY BEING WHERE THE CONSUMERS ARE
Duni manufactures and sells serving accessories and meal packages. The company is listed on the Mid Cap list of the Nasdaq Stockholm exchange. Mellby Gård is the largest individual shareholder with 29.9 percent of the shares. The new MD, since October 2017, is Johan Sundelin. He is tasked with achieving further expansion in a well-functioning business.
Duni has a very strong core that has delivered an operating margin as targeted, at 10 percent, for a long time. The company is vertically integrated, meaning that it commands the entire value chain, from its own paper mill to a sales force directly addressing customers such as restaurants and retail chains with products including tablecloths, napkins and serving products in recyclable materials.
In a segment characterized by fierce competition, with a number of major players in paper and board, Duni has chosen a niche that is relatively small globally. By mastering the complexity of this niche and focusing its product range on premium products, Duni has established a market-leading position in the Nordic region and Europe.
“As the new MD, my task, during the first year, is to manage my predecessor’s strategy and improve profit. In parallel with this, I am working on developing a new strategy for the upcoming years that will focus on growth with sustained profitability,” says Johan Sundelin, who was most recently MD of food company Santa Maria.
The potential for growth is substantial. In the short term, Duni will be pushing even harder in areas that are already performing well. These include premium napkins, the environmentallyprofiled ecoecho range and customized solutions, such as printing of special patterns and company names on food serving and table setting products. In the short term, there is also organic growth potential in Asia and Oceania.
“The long term will be about strengthening our capacity to meet customer needs and new trends. We have an extensive environmental focus and will be developing that further. Digitalization affords us new opportunities in our customer encounter and in manufacturing, as well as in how we link the two,” says Johan Sundelin.
In 2017, Duni acquired UK company Biopac, which focuses on customized sustainable packaging solutions. The acquisition is in line with Duni’s focus areas of customization, sustainability and the growing trend of packaged take-away food in urban environments.
Johan Sundelin does not rule out the possibility that considerable future growth may derive from acquisitions.
“One idea may be to identify smaller, but attractive and fastgrowing companies and, with Duni’s market presence, to shift them up a gear in several markets,” he says.
Over the years, Duni has progressed through a number of different strategic phases. From originally being productionoriented, Duni came to be owned by venture capitalists and was, accordingly, largely financially-oriented.
“With Mellby Gård as the principal shareholder following the 2007 listing, Duni is now a more customer-oriented company. And that is what we will continue to be. A strong principal owner who sets clear demands is also a guarantor for the long term. That provides me with great support as I work on our strategy for the future,” says Johan Sundelin.