Vol. 1 No. 1
May 2007
Industry News
Three Research Projects Unveiled at June Executive Conference
In-depth research by GMA/FPA in cooperation with three associate members into vital issues – sustainability, industry financial performance and the role of brands in a world of second-generation private labels – will be unveiled at the 99th annual GMA/FPA Executive Conference at the Greenbrier June 8-11. (Conference attendance is by invitation only.) The following studies will be part of the program:
Sustainability: Partner Nick Handrinos and his team at Deloitte Consulting LLP will lead a session based on a three-part study on sustainability practices in the industry. Study findings and implications for CPG manufacturers also will spotlight best practices to assist members in developing viable sustainability programs, retailer activity in the field and models of successful programs already in existence. (June 10, 9:15 a.m.)
Financial Performance: PricewaterhouseCoopers’ Partners Lisa Feigen Dugal and Herb Walter will spotlight their research on the strong financial performance by the CPG industry over the past year. The study provides corporate-level metrics for benchmarking, plus analysis of other factors affecting performance. (June 11, 8 a.m.)
New World of Brands: McKinsey and Company Partners Kari Alldredge and Greg Kelly and a blue-ribbon panel of manufacturers and retailers will explore the new world of brands in a special Strategic Issue Session. They will probe questions such as how companies can compete in an increasingly crowded marketplace of store brands and private labels in this session commissioned by the GMA/FPA Sales Committee. (June 11, 9:15 a.m.)
Contact: Stephen Sibert or visit the conference website.
Good Morning GMA/FPA: An Important Part
Of the Upcoming Executive Conference
The GMA/FPA Associate Member Council (AMC) plays a pivotal role at the June 8-11 executive conference.
The AMC sponsors its fourth annual Good Morning GMA/FPA general session – this one featuring Wal-Mart Executive Vice President for Risk Management, Benefits and Sustainability Linda Dillman and Vice President of Sustainable Development for General Mills Inc. Gene Kahn.
Also at the session, the fourth annual CPG Award will be presented to one of a record number of entries this year. The award honors companies for creativity, willingness to take risks, achieving measurable results and creating a valuable knowledge base for the industry.
Additionally, AMC will release a special report on three case studies of successful sustainability outside the CPG industry at the session.
Contact: Jill Johnson
GMA/FPA Sponsors Multi-Retailer Data-Accuracy Meeting
The second-annual Data Accuracy Collaboration Program June 4 at the Gaylord Palms Resort in Orlando is being held in connection with the UConnect Conference. (See related story below.) The invitation-only event is sponsored by GMA/FPA, FMI, Agentrics and ISYNC is hosted by Wal-Mart Stores, Walgreen Co., SUPERVALU Inc., Wakefern Food Corp, Royal Ahold and Ahold USA, Army and Air Force Exchange Service, Target Corp., Lowe’s Home Improvement, Wegmans Food Markets, The McLane Company and Associated Food Stores.
In addition to general sessions and workshops related to accurate data synchronization, the meeting will feature a series of pre-set, one-on-one appointments between suppliers and retailers to discuss collaborative issues, including the imperative for accurate and global data synchronization.
Contact: Jeanne Iglasias or click on 2006 Data Accuracy Collaboration.
Unsaleables Conference Showcases Industry Improvement
A ConAgra keynoter, a packaging case study and an interactive town hall exchange of ideas and experiences are highlights of the Joint Industry Unsaleables Management Conference July 17-19 at the Ritz-Carlton, Lake Las Vegas, Nevada.
Greg Smith, senior vice president of supply chain and product supply for ConAgra Foods, will keynote the conference July 18, highlighting his company’s three-tiered approach to unsaleables management. He will explain how one of North America’s largest CPG companies has minimized the overall rate of unsaleables while reducing losses, overages, shorts and damaged goods. His keynote will be followed by an in-depth case study from Kraft Foods on reducing product damage through packing improvements. Peter Zaepfel, Kraft’s global logistics manager, optimization and design, outlines how packaging improvements can cut product damage at the pallet, case/tray or individual unit levels.
The conference is held in cooperation with the Food Marketing Institute, the National Association of Chain Drug Stores and the Consumer Healthcare Products Association. Conference co-chairs are Chris Mead, manager of reverse logistics, Food Lion LLC, and Eugene Schachte, reverse logistics manager, Heinz North America.
Contact: Troy Beeler (Conference) Jonathan Downey (Sponsorship)
Deloitte Named to Guide Retail Marketing Trends Research
Deloitte Consulting LLP has been named leader of the upcoming project of the GMA/FPA Sales Committee to direct research and produce an Industry Review of Retail Marketing Trends. The full report will be released at the Merchandising, Sales and Marketing (MSM) Conference in September.
Contact: Brian Lynch
Clarkston Consulting Wins DSD Study
The GMA/FPA Direct Store Delivery (DSD) Committee announced that Clarkston Consulting and AMR Research have been named project partners in an upcoming study, Growth Through DSD. The study is part of a continuing body of research begun in 1987 into the ever-changing role this product-delivery method has had in the industry.
Contact: Pam Stegeman
Lynch Named GMA/FPA Director of Sales & Sales Promotion
Brian Lynch has joined the GMA/FPA Industry Affairs Group as director of sales and sales promotion. He serves as staff liaison to the Industry Development Team and the Sales Committee. He also supports the Unsaleables, Coupon and Sales Agency Committees. Lynch previously served with travel innovator Tanner & Harley Resorts and with the Satellite Broadcasting and Communications Association. Lynch reports to Stephen Sibert.
Contact: Brian Lynch
Members Get Discount for Data Sync Summit
GMA/FPA is one of the sponsors of the Data Synchronization Summit to be held June 6-7 in conjunction with the UConnect Conference (June 4-7) at the Gaylord Palms Resort in Orlando. Members can receive a $75 UConnect registration-fee discount.
Contact: Jeanne Iglesias
In This Issue:
Research Unveiled At Executive Conference
"Good Morning GMA/FPA" at the Executive Conference
Lynch Joins Industry Affairs Group
Industry Research News from AMC Members
Special CEO Profile: Tesco’s Sir Terry Leahy
GMA/FPA Industry Affairs Group:
Troy J. Beeler
Manager
Sales and Sales Promotion
Jeanne Iglesias
Director
Supply Chain & Technology
Jill Johnson
Director
Industry Affairs &
Associate Membership
Brian Lynch
Director
Sales & Promotion
Stephen A. Sibert
Senior Vice President
Industry Affairs
Pam Stegeman
Vice President
Supply Chain & Technology
Industry Affairs Review Team:
Business Development Director &
Member Of Board
Planet Retail, London
President & CEO
Singley Associates
CEO Profile
Tesco: At a Glance
Group Sales (Inc VAT) 2006 USD85.7 Billion
Net Sales (Ex VAT) 2006 USD78.4 Billion
EBT USD4,880 Million
No. of Countries 13
Top 3 Market Position UK, Hungary, Thailand, Ireland, South
Korea, Czech Republic, Poland, Slovakia
Key Formats Hypermarkets, Superstores,
Supermarkets, Convenience Stores
Source: Planet Retail Ltd – www.planetretail.net
Under the watchful eyes of the world’s retail community, Tesco is about to make its most audacious assault yet, launching a chain of Fresh & Easy Neighborhood Markets in the United States with some 100 expected to open in the West by February 2008.
How can this British-born retailer be so confident that it can succeed where others have failed? Industry Affairs Review take a look at the man behind this daring move – Tesco’s long-standing CEO, Sir Terry Leahy.
Watching Leahy deliver yet another bumper set of annual results recently, it is hard to discern from his weary, slightly ironic tone that under his reign Tesco has established itself as one of the leading retailers in Western and Central Europe and is climbing the ranks in Asia.
Sitting
at the helm of the world’s third largest grocery retailer, Leahy received a
knighthood in 2002, as well as other accolades ranging from co-chancellor of
Manchester University to Fortune
magazine's European Businessman of the Year in 2004 to Britain’s most
influential unelected person by the Guardian newspaper in 2007.
Leahy, aged 50, is the working man’s hero. Coming from a modest background
and
growing up in Liverpool as the third of four brothers – and the only one to
go to college – has instilled in him an understanding of value for
money, an ethos that underpins Tesco’s success today.
Initially working at British retailer Co-op, Leahy moved to Tesco in 1979 as a marketing executive and was appointed to the board in 1992 and promoted to chief executive in 1997. Despite his position, he remains a very hands-on executive, regularly visiting stores and spending one week a year working on the shop floor - stacking shelves and working the cash registers.
As market leader in the UK, Leahy embraces his role as a figurehead for corporate responsibility. At the recent EMAP World Retail Conference in Barcelona, Leahy spoke of Tesco’s responsibility to “look after the public interest.” He is a leading exponent of the need for supermarkets to be environmentally responsible, advocating carbon footprinting, organic farming and “green consumerism.” As Tesco describes itself as a global discounter, it comes as little surprise that Leahy is a great admirer of German discounter Aldi, for its constancy and unique formula.
Tesco’s undeniable success in the UK is based on a combination of delivering high quality groceries and non-foods at competitive prices. It is at the forefront of private-label development with a highly segmented offer. Advances in chilled and ready meals have positioned it as a leader in the take-home market. Behind the scenes is a highly sophisticated marketing engine that drives product mix and merchandising decisions, based on its Clubcard loyalty scheme. Its home delivery operation is the most successful of its kind in the world.
As Leahy leads his company into the world’s biggest consumer market, most U.S. market analysts say the competition is right to await Tesco’s arrival with trepidation.
Source: Planet Retail
Marketplace Research
Capgemini Examines Manufacturer Strategies, Marketing Challenges
Capgemini has two new studies available. Overcoming the Margin Squeeze: Breakthrough Strategies for the Consumer Packaged Goods Industry portrays the relentless margin squeeze in which CPG manufacturers – caught between rising commodity costs and increasingly powerful discount retailers – find themselves. The study outlines five strategies that call for a dramatic shift in how companies innovate, go to market, collaborate and enter new markets. Capgemini also offers The Marketing Challenge: A Discussion on the Effectiveness of Marketing, written by Dr. H. Münzberger of the Berlin office. The book examines the effectiveness of marketing in the consumer goods sector.
Contact: Dave Holloman
IBM: Turning Shoppers Into Advocates
In the drive to differentiate, retailers are focusing closely on the customer experience, on delivering what the customer expects. Those retailers that develop greater insight into their shoppers’ habits and incorporate this knowledge to change how they do business are widening the gap between their organization and the rest of the pack. The transformational strategy of turning shoppers into advocates is outlined in detail in this new research by IBM. Click here to download the report.
PwC: New Product Launches
Pricewaterhouse Coopers and the National Association of Chain Drug stores announce research on how targeted collaboration between manufacturers and retailers promotes successful new product launches. The report outlines a step-by-step framework of how trading partners can work together across the supply chain to reduce the notoriously high failure rate associated with bringing a new product to market. Click here to download the report.
Contact: Michael Hartman
June 8-11 GMA/FPA Executive Conference
The Greenbrier
White Sulphur Springs, West Virginia
(By invitation only.)
Contact: Stephen Sibert
June 8 Meetings at GMA/FPA Executive Conference:
Industry Affairs Council
CEO/President's Forum (By Invitation Only)
Associate Member Council
Sales Committee
Sales Agency Committee
Contact: Stephen Sibert (IAC)
Jill Johnson (AMC)
Brian Lynch (Sales)
July 17-19 Joint Industry Unsaleables Conference
The Ritz-Carlton
Lake Las Vegas, Nevada
Contact: Troy Beeler
Sept. 30-
Oct. 2 Merchandising, Sales and Marketing Conference
The Broadmoor
Colorado Springs, Colorado
Contact: Brian Lynch
Industry Affairs Review is produced in partnership between GMA/FPA and Planet Retail.
Current issues of IAR may also be found on at www.gmabrands.com/publications/index.cfm.
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@ Copyright 2007 by GMA/FPA, 1350 I Street N.W. #300, Washington, D.C. 20005. All rights reserved. Some content and copyright for specific information are provided and owned by Planet Retail, a leading provider of grocery retail intelligence— www.planetretail.net.
GMA/FPA enables its member companies to proactively address the public policy, scientific affairs, product safety and industry issues that impact their ability to create value with and for their customers by advancing their brands and products in a fashion that responsibly improves the quality of consumer lives.
