Orama
invests £1m for Mid-Market Move
Orama continues its focussed development of the business (specialising
in the manufacture of worksurfaces and associated products for kitchens
and bathrooms) with further investment. Following its significant management
restructure in 2002, Orama started 2003 with an ongoing market research
programme to influence the direction of Company decisions. Peter Holt,
Sales & Marketing Director at Orama, believes that the initial findings
of the research back up the Company’s decision to invest £1m
in its Derbyshire facilities and workforce.
This large investment by Orama’s management allows the company to
add improvements and capacity to existing production facilities. New capabilities
have been added to one of the three automatic production lines, thus splitting
capacity and creating a specialist line for higher value designer products.
At the same time, volume production is maintained on other fast running
lines. Orama has relocated its raw materials and finished goods into separate
warehouses to supply its JIT production facility and expanded its solid
surface manufacturing capacity.
The findings of Orama’s market research confirm that consumers are
prepared to pay more for a worksurface. Peter Holt explains, 'The UK kitchen
industry is the most buoyant in Europe and we intend to supply it with
innovative products. Our market research shows that the final look of
a kitchen hinges on the worksurface, and consumers recognise this in their
willingness to pay for a better finish. Higher value worksurface products
will be the way forward for retailers to capture this opportunity. Orama
is investing and gearing in its production now to create more upmarket
worksurfaces to meet this trend - soon.'
He continues 'The accent of our investment has been to allow Orama to
enhance the higher value products and the percentage of these that come
out of the factory. Ultimately, Orama intends to influence the market
in terms of style, design and quality of worksurfaces, building on the
company’s success and reputation in the mass markets.
Orama will set the standard for the next generation of worksurfaces, independently
and in its own identity.'
Currency
Exchange, Anti-Americanism and SARS Contibute to Lacklustre Interims for
Franke - although Kitchens Division is 5% Up
In the first half of 2003, the Franke Group achieved net sales of CHF
756.9m at constant exchange rates. This is equivalent to a decline in
sales of 4% against the same period last year (CHF 788.1m). The negative
currency innuence of -CHF 34.2m (attributable in particular to the lower
USD conversion rate) resulted in effective net sales of CHF 722.7m. The
operating result (cash flow) is 8.1% down on the same period last year.
This overall trend of the group in the first half of 2003 is largely attributable
to the Franke Foodservice Systems Division as a consequence of the global
downturn in 'New Store Business' (steep reduction in the number of new
openings of 'Quick Service Restaurants' by our customers worldwide), compounded
by the difficult economic conditions prevailing in Germany, Poland, South
America and Asia. Franke is reacting with strong cost management in the
individual operating areas. The group expects business to prove rather
better in the second half of 2003.
The first quarter of 2003 was unsatisfactory for the Franke Group. The
uncertain situation created by the war in Iraq, SARS, anti-Americanism
in the Middle East and general economic stagnation had an enormous impact,
especially on the Asian regions in the first quarter. However, sales and
earnings were already higher again in the second quarter.
Development of the divisions:
The Franke Kitchen Systems division (sinks, taps and fittings, hobs, ovens,
extractor canopies etc.) remained stable again in the first half with
higher sales (+5.4%) and earnings than in the same period last year.
The Franke Foodservice Systems Division (previously known as Contract
Group; products and services for quick service restaurants) fell substantially
short of last year's figures. 2003 saw a massive fall in the number of
new openings of 'Quick Service Restaurants' due to the weak economic situation,
a tendency for the market to become saturated and changed consumer behaviour,
SARS and anti-Americanism.
Prominent among the cost-cutting measures taken in the first quarter of
2003 were capacity adjustments with plant closures and staff reductions
at all the divisional sites in North America, Europe and Asia. In addition
to these adjustments, the focus is now on the repositioning of Franke
Foodservice Systems: globalisation of the stable resupply business (spare
parts and small wares), extension of the product and service range and
increased production efficiency are measures taken since the spring of
2002 as part of the reorganisation of the Franke Group.
lncreasing focus will be placed on them this year because of the decline
in the number of new openings by restaurant operators. An improvement
of the sales situation at Franke Foodservice Systems is expected to begin
in 2004. The Franke Coffee Systems activity also failed to live up to
expectations in the first half of 2003 because of the economic environment,
especially in the home markets of Germany and Switzerland.
The trend of business in the Group's Other Activities varied: lndustrial
Technology and Tool Manufacturing (Franke lndustrie AG) reported higher
sales and earnings than in the same period last year with ongoing growth
trends, while the Beverage Containers operation and automotive division
achieved satisfactory results. In the industrial business area, the Metal
Construction profit center will be definitively closed at the end of October.
The prospects are good that staff will find new employment either elsewhere
in the Franke Group or with other companies.
The Group's order book as at 30.06.2003 was lower than at the same time
last year.
lnvestment projects
The investment projects currently budgeted in Turkey, Brazil, Switzerland
(new factory buildings), Canada and Germany (expanded production facilities)
will be completed this year. Further information technology and logistics
projects will be put in hand this year.
Outlook for 2003
The sales and earnings targets will not all be achieved in 2003, although
the largest core business activity, i.e. Franke Kitchen Systems (over
50% of consolidated total sales) is performing better than last year and
remains just within the budgeted figures. This year the economic forecasts
remain highly uncertain. Franke is responding to these trends with strong
cost management, while continuing to invest in major strategic projects
in all the operational areas and focussing on strategic adjustments of
the divisions to the changed market circumstances.
Complaint against Dolphin Bathrooms Misleading Advert upheld by ASA
Following
Public Complaints From Clwyd, Derbyshire and the West Midlands, Dolphin
Bathrooms of Worcester has been censured by the Advertising Standards
Authority for not conforming to an advert which claimed that all products
were being offered at hald list price in a summer sale.
Complaint: Objections to a magazine advertisement that was headed
'Dolphin Bathrooms summer sale' and claimed 'absolutely everything half
price*'. A footnote claimed '*all offers based on current price list...'.
The complainants, who believed the advertisers had not reduced their prices,
challenged the claim 'absolutely everything half price'.
Complaints upheld
The advertisers said the advertisement stated that discounts were based
on the list price and every price in their published price list had been
reduced by 50% during the summer sale. They said the advertisement made
clear that, to qualify for the 50% offer, readers had to order at least
a bath or a shower enclosure, a wash basin and a W.C.
The advertisers said each of their products had been excluded from promotional
offers for at least 28 days in the six months before the summer sale.
They explained that they tried not to sell bathrooms at the full list
price; if customers wanted to order a bathroom that was excluded from
promotional offers, the advertisers encouraged the customer either to
choose another bathroom that was discounted or to wait until the bathroom
they had chosen became eligible for promotions.
The advertisers sent a copy of their price list, dated June 2003. They
also sent letters to their sales designers dated 14 February, 14 March,
11 April and 9 May 2003; the letters listed products that should be sold
at the full list price for the next 28 days. They gave the Authority a
letter to their sales designers that confirmed that, during the summer
sale, all the products and services in their price list could be offered
for 50% off the list price.
The Authority considered that 'sale' implied that, for a limited period,
the advertisers were selling their products for less than the usual selling
price. It noted the advertised products had been excluded from promotional
offers for one month in the six months before the advertisement appeared
and could have been discounted for the other five months.
The Authority considered that the evidence sent by the advertisers did
not prove that they ever charged their list prices. It concluded that
the advertisement was misleading and asked the advertisers not to claim
they were offering products 'half price' unless they could show that they
were offering those products, for a limited period, for half the usual
selling price.
Maytag
UK Takes Range Cooking out of the Sticks
This
week, Maytag UK has expanded its appliance offering for retailers with
the introduction of a new dual fuel range cooker the Maytag SOV110RC.
Traditionally the range cooker was the preserve of the country kitchen.
Maytag's new range brings the concept into the 21st century, with a sophisticated
metropolitan tone that blends with the lifestyle nuances of today's professional
and discerning homeowner alike.
The
design detail is timeless, echoing Maytag's sovereign styling, and matching
Maytag's range of refrigeration, dishwashers and laundry appliances. The
SOV110RC also complements the European styling trends so frequently emulated
in the market place today.
Ellis Bardsley, Managing Director explains, 'We are really excited about
our new Maytag SOV110RC. It is a great addition to our product appliance
portfolio and one that has been our focus for the past eighteen months.
We were determined to develop and launch a cooking appliance that was
not only designed to look the part but also matched the needs of the UK
consumer. It has been specifically designed to incorporate the sovereign
accents, so it co-ordinates with the Maytag range of appliances. This
latest development makes Maytag UK one of the most comprehensive and successful
premier appliance brands available today. The retailer and the kitchen
specialist have the advantage of being able to offer the ultimate brand,
across all appliance sectors with performance you can depend on.'
Maytag's SOV110RC is 110 cm wide, built of brushed stainless steel, offering
quality and functionality with practical, multifunction ovens, combined
with a versatile and robust gas hob.
The gas hob's distinctive looks and spacious practical cooking area is
of a single one piece, deep profile, brushed stainless steel construction
to capture all spills and splatters, wiping clean with ease and destined
to look good for years to come. The rustic matt black cast iron pan supports
exemplify the professional finish, and are designed for the demanding
culinary tasks expected of a cooking appliance today.
The convenient single-handed electronic ignition to all six burners features
Maytag's flame failure device. The SOV11ORC is ably equipped with two
3.5kW triple ring burners for stir frying and wok cooking; a 3 kW rapid
burner for saute dishes and rapid boiling; two versatile 1.7kW burners
and a l.0kW for slow cooking and melting. A Maytag branded griddle plate
adds that culinary pizzazz to everyday cooking.
The body of the range cooker is clean and contemporary and finished in
brushed stainless steel. The square profile doors exhibit defined angles
at all edges and are complemented by Maytag's tubular handles.
The two fully featured, illuminated, electric ovens are designed to cater
for the diversity of demanding culinary tasks required in the home today.
The 'B' energy rated, 67 litre multifunction oven is equipped with 7 versatile
cooking functions ideal for batch baking, family cooking and for entertaining
at home. Functions include, fan, fanned grilling, fan assisted, conventional,
top browning element, base heat and defrost. The 'A' rated 62 litre conventional
oven is particularly suitable for traditional baking and casseroling.
Both ovens feature special stay clean catalytic oven liners that ensure
cleaning is kept to a minimum.
The warming oven is a welcome addition for the busy host. Serving culinary
delights on pre-warmed plates is the ultimate dinner party piece.
Thermostatically controlled, plates and crockery may be warmed, whilst
cooked food can be maintained to perfection before serving.
The full width 2.3kW dual circuit grill provides fast, efficient grilling.
There is an economical half setting for those smaller quantities and dishes.
All the functions are sophisticatedly co-ordinated by the clearly organised
control panel, designed with professional sized, easy to use controls.
Each or both ovens may be set to cook automatically using the electronic
programmer, which also features a 24-hour time of day clock and minute
minder. The LED display is illuminated in blue that enhances the stainless
steel fascia.
To complete the look, the range comes with a full width stainless steel
plinth as standard. The range may be teamed with complementary options
including a stainless splashback and designer chimney ventilation hood.
Tel: 01737 231000
Web: http://www.maytag.co.uk
Miele
‘Navitronic’ System Introduces No-Hassle ‘Automatic’
Programme
Miele already holds 681 patents worldwide, and recently at a world premiere
in Gütersloh introduced washing machines and tumble dryers which
automatically select the right programme. The appliances are equipped
with the completely new ‘Navitronic’ control which Miele itself
has developed. The navigation system for the perfect wash has a patented
user interface, patented rinsing process with sensor technology, a patented
‘Automatic’ programme as well as programmes for jeans, shirts
and outdoor clothes. In addition, there is also the new, patented honeycomb
drum for tumble dryers where the hexagons of the drum arch outwards.
The Miele ‘Navitronic’ is a world in itself,“ said Dr.
Markus Miele in Gütersloh, “because here we are presenting progress
in laundry care which has never been seen before. This is also shown by
the numerous patents granted to Miele.
World
premiere in Gütersloh on September 11, 2003: Dr. Markus Miele (left)
and
Dr. Eduard Sailer with the new 'Navitronic' models
According to the manufacturer, the patented ‘Automatic’ programme
for Miele washing machines is especially innovative. ‘Sensors determine
what kind of laundry is in the washing machine and automatically select
the right programme,’ explained Dr. Markus Miele, Managing Partner
at Miele & Cie. KG in Gütersloh. This programme always selects
the best programme for gentle laundry care, which makes it ideal for everyone
because the laundry can just be left to the washing machine without any
great knowledge about textiles and their care. Even a newcomer to laundry
care can feel safe when washing laundry. And a load washed in the ‘Automatic’
programme in a washing machine can also be dried in the same programme
in the matching tumble dryer.
Miele’s latest machines offer three dedicated programmes – ‘Jeans’,
‘Shirts’ and ‘Outdoor’ where the washing, rinsing
and spinning as well as the drying programmes are all geared to the respective
requirements of the laundry. The way you wash is the way you dry –
it is that simple. ‘Laundry care made easy’ is how Dr. Markus
Miele summed up in a nutshell the new developments.
The company from Westphalia also proves how innovative it is with a new
rinsing process which has also been patented. Sensor technology is also
the magic term here which has made this development possible. A complex
process determines how long the laundry has to be rinsed and how much
water is needed to remove detergent residue. A longer or shorter rinse
time as well as more or less water can be necessary according to how the
load is made up, i.e. the size and absorbency of the load.
Production
of the new Miele 'Navitronic' models has begun at the Gütersloh plant
The design of the new ‘Navitronic’ washing machines and tumble
dryers is especially eyecatching. The control panel in aluminium-look
with the display and the multi-function selector looks high-quality and
both machines match each other perfectly. Dr. Miele emphasizes the fact
that users ‘do not have to be afraid of the new technology’.
At Miele, the multi-function selector is similar to Miele’s traditional
single knob controls and programmes can be selected and confirmed by turning
and pressing it lightly. Further special programmes and functions are
just as easy to select in the same way. Here, the big display is clear
and the programmes are shown in legible, local language text.
There is now a honeycomb drum in Miele tumble dryers, as there has been
in Miele washing machines since 2001. What makes the honeycomb drum in
the tumble dryer so special is the hexagons which arch outwards. During
drying, this offers the advantage of creating air pockets in the convex
hexagonal sections within the drum. Suction in these air pockets transports
the laundry and allows an exchange of air and moisture in two directions.
This leads to more even drying and lower operating temperatures, which
means the laundry is handled even more gently. A certificate from Germany’s
renowned and independent Hohenstein Institute also confirms the special
care given to laundry in the new tumble dryer honeycomb drum. This certificate
from the research institute for textile care, founded in 1946, certifies
that the Miele honeycomb drum dries the laundry more evenly and reduces
creasing.
Boffi
Strengthens Kitchen Portfolio Purchase of Norbert Wangen
Boffi
has acquired Swiss based kitchen design company Norbert Wangen Ltd. The
takeover took effect from the 20th of September. The Italian top-end kitchen
and bathroom specialist acquired the privately owned design company, producer
of the K2, K3, K4, K1O and K11 kitchen ranges, with full ownership of
intellectual property rights over technologies as well as its trademark,
products and commercial network
Norbert Wangen will be a distinct and separate entity within the Boffi
range of products and will manage its own commercial activities. Marco
Corti will continue to act as business consultant for Norbert Wangen activities,
reporting to Boffi's Daniela Borbonovo, business director for foreign
markets and to Duilio Boffi, business director for Italy. Norbert Wangen,
the architect and designer, will act as consultant to Boffi for the next
5 years.
Boffi's CEO, Robero Gavazzi said ofthe acquisition:
'Norbert Wangen is one of the most prestigious brands within kitchen design's
highest ranking niche market sectors. The objective of the operation is
to develop this high quality brand along the same lines first traced by
Norbert Wangen, who will continue to collaborate with Boffi as the division's
designer and consultant Our team is very proud to welcome the prestigious
Norbert Wangen brand to the Boffi fomily of products.'
Boffi is a producer of high end, design-led kitchen and bathroom products
and accessories. The ltalian based company's products are distributed
in over forty countries worldwide and last year Boffi had a turnover of
41 million Euros.
Boffi works with intemationally plaudited designers and has a dedicated
in-house design team led by Piero Lissoni, Boffi's Creative Director.
Tel: +39 0362 5341