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Clorox's Don Knauss has been named chairman of GMA's Industry Affairs Council, replacing DelMonte’s Rick Wolford.
GMA CPG Award Call for Entries Have an innovative and creative program that you'd like to enter in the seventh annual GMA CPG Award, to be presented at the Executive Conference in August? Entry deadline: June 11.
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Everyday low pricing and price-matching guarantees help Leclerc and its CEO Michel-Édouard Leclerc lead the growth among French hypermarket retailers.
“The runaway success of Leclerc this year will definitely mean that the other big box players in France will sit up and listen.”
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The tremendous change in the past decade in the U.S. food and grocery supply chain is the focal point of the 2010 Survey of Collaborative Supply Chain Effectiveness.
“{S}upply chain initiatives increasingly focus as much on driving top-line growth and mutual profitability as they do on cutting costs and bottom-line productivity – the principle concerns a decade ago.”
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Clorox’s Don Knauss Named Chairman of GMA Industry Affairs Council
Entries Now Being Accepted for 2010 GMA CPG Award Start planning now to sign up for GMA’s seventh annual CPG Award for Innovation and Creativity call for entries. Sponsored each year by the GMA Associate Member Council, the award salutes the innovation occurring daily at CPG companies. Past winners have included such companies as Kettle Foods, The Hershey Company, The Clorox Company, Unilever, Time Warner Retail Sales and Marketing, Campbell Soup Company and Kraft Foods Inc. Deadline for all entries: June 11. For more information or to see the award-winning presentations from prior years, visit the CPG Award web site.
GMA Co-Locates Manufacturing Excellence Conference Nov. 2-3 Mark your calendar now for GMA’s Manufacturing Excellence Conference, to be co-located with the Package Machinery Manufacturers Institute’s PACK EXPO International November 2-3 at Chicago’s McCormick Place. GMA is partnering with the packaging association to deliver two days of in-depth programs on manufacturing, engineering and plant management problem-solving in the critical areas of product safety, sustainability and operational excellence. For more information, contact Jill Johnson.
First Joint Supply Chain Conference Sets New Collaboration Level
Approximately 500 industry leaders attended the first-ever joint GMA-FMI Supply Chain Conference earlier this month in Phoenix. The conference was held under the auspices of the GMA-FMI Trading Partner Alliance. Pictured are (left) America's Attitude Coach and CEO Keith Harrell of Harrell Performance Systems; Robert Mooney, group vice president of distribution and manufacturing, Meijer Inc.; Jack Horst, principal, Kurt Salmon Associates (dressed as Sir Isaac Newton for his presentation); and Ron Parker, senior vice president of global diversity and inclusion, PepsiCo Inc.
Presentations of the conference are available at www.tpasupplychain.com.
GMA Logistics Committee Sets March 12 Meeting The GMA Logistics Committee will meet Friday, March 12, in Dallas. Committee Chair Bruce Hancock, director of customer supply chain management, The Hershey Company, said the committee met January 31 in conjunction with the Supply Chain Conference to develop the issues the committee will examine in 2010. These programs – which will be executed via whitepapers, educational seminars, etc. – will be discussed at the March 12 meeting. They include: (1) beyond GTIN, the GS1 128 DataBar coupon coding, (2) freight unloading and transportation efficiency, (3) mixing centers, (4) capitalizing on available data, such as retailer-direct data, and (5) an examination of the future supply chain of 2016-2020.
Register Now for Web Seminars on the Rapid Recall Exchange Learn how Rapid Recall Exchange can benefit CPG manufacturers, industry retailers and the American shopper in two webinars planned with GMA Director Brian Lynch and GS1 U.S. Vice President Tamara Kenney. The Web seminars are scheduled for March 18 at 2 p.m. EST and on April 8 at 2 p.m. EST. Click here for registration information.
DSD Committee to Meeting March 11 in Dallas GMA Direct Store Delivery (DSD) Committee will meet Thursday, March 11, in Dallas, according to committee chair Ann Dozier, vice president of strategic industry initiatives, The Coca-Cola Company. The committee met this month in conjunction with the Supply Chain Conference to discuss the evolution of its 2010 project – the Fully Integrated DSD Process, which examines the benefits for trading partners when a holistic approach is used in the DSD process.
Weizmann Attends CAGNY Conference Industry Affairs Senior Manager Brooke Weizmann attended the Consumer Analyst Group of New York (CAGNY) conference last week in Florida. The conference is an annual meeting of industry analysts, investors and food and grocery company executives. “CAGNY is a great opportunity to learn what the industry plans for the year ahead so we can support industry growth through our work,” said Weizmann. “This year, common themes include new opportunities to appeal to the value-minded consumer, a renewed focus on product and pipeline innovation, and continued emphasis on growth in developing markets.”
Retail-Ready Packaging Examined at Two Industry Meetings GMA’s Senior Vice President Stephen Sibert and Unilever’s Director of Operational Excellence Ian Ricketts mapped the issues surrounding the retail-ready packaging (RRP) initiative at the joint GMA-FMI Supply Chain Conference earlier this month. Sibert stressed that RRP – the use of corrugated shippers on retail shelves for merchandising – has been identified as a key priority for GMA, FPA and their joint Trading Partner Alliance. Noting that the industry is seeking a common approach and a uniformity to RRP without which the manufacturers would pay different and redundant cost structures for each customer, Sibert said U.S. retailers with RRP initiatives are Walmart, H.E.B., Target and Kroger.
Unilever’s Ricketts pointed out the lack of common standards and supply chain costs are two principle concerns with the initiative, noting that retailer benefits are easy to define but the business case for manufacturers is more difficult. He noted that other challenges include the lack of uniformity/standards, the channel differences, and store-level training and compliance.
Presentations Made at TPA: Vince Byrd, president, U.S. retail/coffee, J.M. Smucker Company, and Sean Fallmann, president, North American consumer products business, Georgia-Pacific LLC — both members of the joint industry Retail-Ready Subcommittee — gave a presentation on RRP at last month’s Trading Partner Alliance meeting in Florida. The subcommittee guides the overall RRP efforts and is jointly managed by GMA and FMI. GMA member companies on the sub-committee include Georgia-Pacific, J. M. Smucker Company, Schwans, Continental Mills, Mars Inc., The Procter & Gamble Company and Unilever. Byrd said the subcommittee will work with the Food and Consumer Products of Canada to ensure a combined U.S.-Canadian approach to RRP.
Outsourcing Case Studies/Model Practices Subject of Webinar
Three manufacturers presented case studies on the benefits of outsourcing to sales and marketing agencies in a Web seminar on Wednesday. Discussing successful practices for retail outsourcing were (L to R) Kristy Cunningham, partner, Bain & Company; Mike Salzberg, president of Campbell Soup Sales Company; Don McConegly, vice president, U.S. retail operations, Kimberly-Clark Corporation; Joe Conoscenti, vice president, global customer development (retired), McCormick & Company Inc. The webinar is based on the recently released Maximizing the Impact of Outsourcing: How CPGs Can Best Use SMAs in a Changing Environment. The complete report can be found here.
GMA Focuses on Hunger-Relief Commitment
Sibert said GMA member companies donated 308 million pounds of food and $7.7 million in cash last year to Feeding America. This year, GMA is working for an increase of 60 million pounds of donated food. The association is urging member companies to donate one day’s production, redirect secondary market production to Feeding America, and support Feeding America’s efforts to change tax policies on donated products.
The anti-hunger campaign was kicked off at GMA’s Executive Conference last August and will be evaluated at the same event this year. For information on this initiative contact Brooke Weizmann at bweizmann@gmaonline.org or call 202-295-3955. (The Industry Affairs Review would like to salute your company’s effort to reduce hunger in America. Send the details via e-mail to pgiles@gmaonline.org.)
Study on Consumer Product Fraud Available What are the structural weaknesses in the industry and in government sectors that have inadvertently open the door to product fraud? What is driving economic adulteration today? GMA and A.T. Kearney have compiled a new study entitled Consumer Product Fraud – Detection and Deterrence: Strengthening Collaboration to Advance Brand Integrity and Product Safety, which is available for download here.
SIFE Intern Joins GMA Industry Affairs Staff
Powerful Speaker Lineup Set for NEW’s Multicultural Conference
Haitian Help Still Needed After Hemisphere’s Worst Natural Disaster Funds, food, household and personal-care items are still needed in Haiti to assist the survivors of the earthquake that killed more than 200,000 people – the worst natural disaster in the Western Hemisphere in recorded history. GMA has partnered with the American Logistics Aid Network to help member companies identify what is needed and to coordinate logistics to transport the donated items to the Caribbean island. Member companies can click here to view the list of urgently needed items, or you can contact GMA’s Haitian relief coordinator Brooke Weizmann at bweizmann@gmaonline.org for more information.
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Leclerc: Runaway Victor in French Hypermarket Wars
Leclerc with its strong pricing image has leaped ahead of its competitors in French hypermarket retailing over the past two years.
In spite of the economic downturn in France, Leclerc’s sales for 2009 grew by 5.6 percent in France to EUR27.2 billion (U.S.$39.7 billion), excluding gasoline sales, with overall sales rising by 5 percent to reach EUR29.4 billion (U.S.$42.9 billion). The retailer attributed the strong performance to its “permanent price cuts.” Leclerc’s umbrella private-label Marque Repère saw sales grow by 10.6 percent – far higher than other banners – that on average saw private label sales grow by 6.7 percent.
Firm Escapes French Hypermarket Doldrums: Leclerc’s results contrast significantly with the fortunes of other hypermarket operators in France, namely Carrefour and Géant Casino, which reported same-store sales declines of 2.9 percent and 6 percent, respectively. Meanwhile, Auchan’s sales declined by “just” 1.5 percent in 2009 – a strong performance compared to Carrefour, Géant Casino and probably Louis Delhaize-owned Cora. However, even this has not been enough to counteract the success of Leclerc, the runaway victor in the competition to become France’s hypermarket power player.
So what is the secret of Leclerc’s success?
Leclerc, who holds a degree in economics and had been rumored to be running for the French presidency, also introduced a price-matching guarantees in the form of the Garantie Promo card, launched in September 2009. The card offers rebates to shoppers if they find a product cheaper in a rival store.
By guaranteeing the “lowest price on everything,” Leclerc has placed itself in a position of power as the only retailer willing to offer compensation to shoppers who found prices lower elsewhere. This pricing tactic enabled Leclerc to compete with banners, such as Carrefour, that tend to use price promotions as an indicator of pricing image and are able to offer so many as a result of significant buying power. Although the Garantie Promo card does not extend to bulk purchases, fruit, vegetables, fresh cuts of meat or wine and only works with products of identical size, the card’s key strength has been to encourage consumer confidence in the chain’s low prices. Perhaps the card’s launch, albeit in the final quarter of the group’s financial year, was the final spark needed to nail a robust performance lead in the French hypermarket field.
Meanwhile, Géant Casino is attempting to differentiate itself from competitors by offering a higher volume of private labels (46 percent sales volumes), more high value categories and more regional and locally produced products. "We want to become the brand for fresh food," said André Lucas, the new head of the recently combined hypermarket-supermarket division. Rumors are rife that Casino may quit hypermarket retailing, although this is probably not on the cards for the near future.
Auchan is a fairly aggressive big box player in the French market. However, it is still not performing as well as in 2008, when the retailer bucked the trend for hypermarket growth. To inject some vitality into its important hypermarket division, Auchan is opening discount hypermarkets. The first, called PRIBA by Auchan, will open next month.
The run-away success of Leclerc this year will definitely mean that the other big box players in France will sit up and listen. Pricing, pricing, pricing is likely to be the theme at French hypermarkets this year. One thing that Leclerc’s results has proved is that the hypermarket concept is not quite dead yet.
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Study Charts Huge Changes in Supply Chain in Last Decade
According to the 2010 Survey of Collaborative Supply Chain Effectiveness, published by the GMA and FMI’s joint Trading Partner Alliance, supply chain initiatives increasingly focus as much on driving top-line growth and mutual profitability as they do on cutting costs and bottom-line productivity – the principle concerns a decade ago.
This evolution of industry supply chain operations is characterized by:
The report is a project of the Joint FMI/GMA Supply Chain Committee and Kurt Salmon Associates. More than 40 manufacturers and retailers participated – most of whom were the same companies surveyed in 2001. Additionally, interviews were conducted with senior executives to understand individual company’s priorities and perspectives.
The 33-page study was distributed at the supply chain conference earlier this month and can be accessed online here.
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Vol. 4 No. 2
February 2010
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Sign Up Others Send Feedback Unsubscribe
Industry Affairs Review is produced by the Grocery Manufacturers Association in cooperation with Planet Retail. Current and past issues may be found here. If you wish to add colleagues’ names to the mailing list or if you wish to unsubscribe, please click here, or write to jdowney@gmaonline.org.
@ Copyright 2010 by GMA, 1350 I Street N.W. #300, Washington, D.C. 20005. All rights reserved. The content and copyright for the lead profile is owned by Planet Retail, a leading provider of grocery retail intelligence— www.planetretail.net.
The Grocery Manufacturers Association (GMA) represents the world’s leading food, beverage and consumer products companies. The association promotes sound public policy, champions initiatives that increase productivity and growth and helps ensure the safety and security of consumer packaged goods through scientific excellence. The GMA board of directors is comprised of chief executive officers from the association’s member companies. The $2.1 trillion food, beverage and consumer packaged goods industry employs 14 million workers, and contributes over $1 trillion in added value to the nation’s economy. For more information, visit the GMA Web site at www.gmaonline.org |
Clorox
CEO to Head Industry Affairs Council
Leclerc
Escapes French Hypermarket Doldrums
New
Study Maps Supply Chain Transformation
Angelina
Vecchioni, a Baltimore native and recent graduate of Flagler College in St.
Augustine, Fla., joined the GMA Industry Affairs staff this month. The
21-year-old graduate with a B.A. in business administration with minors in
finance and economics, was a leader of the Flagler College Students in Free
Enterprise (SIFE) team that won the 2009 SIFE USA National Exposition.
Transform
talk about multiculturism and inclusion in your company’s workforce into
action by signing up today for the Network of Executive Women (NEW)
Multicultural Workforce Conference 2010 scheduled for March 16-18 in Dallas.
A powerful lineup of industry leaders and diversity speakers headline the
sessions that will highlight how to change your corporate culture, diversify
your leadership ranks, and motivate and lead multicultural and
multigenerational work teams. For more information or to register online,
Anticipating
that French consumer spending will dip another 1.4 to 1.6 percent in 2010,
Michel-Édouard Leclerc said the group will be lowering the prices of its
Marque Repère private label in the first half of the year. Leclerc, whose
father started the company in 1949 when he opened a supermarket in Brittany,
is confident that 2010 will be another strong year for the chain.
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How Manufacturers Partner With Sales Agencies to Go to Market
A recently released GMA study, done in partnership with Bain & Co. - Maximizing the Impact of Outsourcing: How CPGs can Best Use SMAs in a Changing Environment - is available for download by clicking here. |
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GMA Industry Affairs Group:
Manager Industry Affairs & Business Development
Coordinator Supply Chain & Technology
Executive Assistant Industry Affairs
Jeanne Iglesias
Jill Johnson
Director Industry Affairs & Associate Membership
Senior Manger Sales & Sales Promotion
Assistant Sales & Sales Promotion
Intern Industry Affairs
Senior Manager Industry Performance
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Industry Affairs Review Team:
Natalie Berg
Grocery Manufacturers Association IAR Coordinator
Jo
Anne Sharlach Editor |
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