Nomad Foods Ltd (NYSE: NOMD)

Nomad Foods Ltd (NOMD) is a prominent player in the European frozen food industry, operating a range of best-in-class food brands within the frozen category. The company's primary business activities encompass manufacturing, marketing, and distributing frozen food products, including fish, vegetables, poultry, meals, pizza, and ice cream, to a diverse customer base that includes supermarkets and large food retail chains across various regions in Europe.

Revenue for Nomad Foods is generated predominantly through the sale of its branded products, which are marketed and distributed primarily through large grocery retailers under various brand names such as Birds Eye, Findus, iglo, La Cocinera, Ledo, and Frikom. A significant portion of the company's products fall within the savory frozen food market, where it maintains a strong market share in numerous European countries.

Nomad Foods has established a robust competitive position within the industry, bolstered by its market leadership in the savory frozen food market, effective brand equity strategy, experienced management team, and optimized sourcing and supply chain operations. The company's strong brand recognition, extensive product range, and local provenance of its brands are instrumental in fostering consumer trust and demand for its products.

The customer base of Nomad Foods primarily consists of supermarkets and large food retail chains, with each key market featuring its unique retail landscape. The company's top ten customers account for approximately 32% of its revenues.

Nomad Foods has segmented its business into several categories, each with distinct characteristics and market dynamics. The following sections provide a detailed overview of each segment:

**Fish:** The fish segment is the largest contributor to Nomad Foods' revenues, comprising approximately 68% of its branded retail sales. The company sources its fish primarily from wild-caught fish in the North Pacific, with a focus on sustainable and responsible sourcing practices. Additionally, the company is expanding its poultry platform and diversifying its fish species across its existing markets.

**Vegetables:** The vegetables segment encompasses ready-to-cook vegetable products, such as peas and spinach. Nomad Foods sources its vegetables predominantly from Europe and has contracts in place with pea and spinach growers and third-party pea processors.

**Poultry:** The poultry segment includes frozen poultry and meat products, such as nuggets, grills, and burgers. The company sources its poultry primarily from South America, but also from Thailand and Eastern Europe.

**Meals:** The meals segment consists of ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals under the iglo, Findus, and La Cocinera brand names.

**Pizza:** The pizza segment includes frozen pizza products, such as Goodfella's and San Marco.

**Ice Cream:** The ice cream segment includes in-home and out-of-home ice cream products, following the acquisition of Fortenova Group's Frozen Food Business Group in September 2021.

Nomad Foods is dedicated to expanding the category, growing its core business, and accelerating innovation. The company is also responsive to changing consumer shopping habits and is driving advertising efficiency and impact through digital media and in-store marketing initiatives.

In terms of sustainability, Nomad Foods is committed to reducing its carbon footprint, waste, and packaging, and promoting sustainable agriculture practices and reducing its reliance on single-use plastics. The company's sustainability strategy, "Appetite for a Better World," is centered around three key pillars: Better Sourcing, Better Nutrition, and Better Operations. Nomad Foods is focused on sourcing its ingredients responsibly and sustainably, promoting healthier eating habits through its products and marketing initiatives, and reducing its environmental impact through efficient operations and supply chain management.

Overall, Nomad Foods Ltd is a leading player in the European frozen food market, recognized for its strong portfolio of brands, commitment to sustainability, innovation, and customer satisfaction, and its focus on delivering value to its customers and shareholders.