The word éxito in Spanish means success. And Almacenes Exito SA has had tremendous success in recent years in capturing market share in Latin America’s third most populous country for its parent company, Group Casino.

Exito’s success in Colombia is due in no small part to Gonzalo Restrepo López, who has been at the helm of the company for almost two decades.

The President and CEO of Almacenes Exito SA, Restrepo belongs to one of the leading families in Colombia – a family of entrepreneurs and politicians, including former president Carlos E Restrepo, ex-governor Nicanor Restrepo Santa María and former minister Juan Guillermo Restrepo, among others.

After graduating from Syracuse University in the United States with a BS degree in management, Restrepo later went on to obtain his master's degree in business administration from the University of Georgia. He has held a range of posts throughout his professional career, including general manager of Marquillas (a textile company), general manager of Internaciones (a spirits importer), CEO of Caribe Motor (car importer) and CEO of Caribú Internacional (a dress manufacturer).

Through his experience of working as a spirits importer, Restrepo developed a love of wines. As part of his job, he travelled the world visiting vineyards in Argentina, dining in French castles and drinking with government vendors of rum in Havana. “These experiences opened my eyes and taught me to see that there’s a fascinating world beyond my country,” he said. “I learned to appreciate cultural differences and seeing how others work.”

Indeed his experience working with a diverse range of people from around of the world has probably helped Restrepo successfully work with French retailer Casino, which bought a stake in Exito in 1999 and currently owns a 59.8 per cent share of the company. Through the group’s successful partnership with Casino, Exito has significantly expanded its network of stores operating in Colombia.

When Restrepo first took the reins of Exito, the company was concentrated in the region of Antiquoa and had just 4,000 employees. The company now has approximately 40,000 employees with net sales of nearly U.S. $3 billion in 2008. In 1999, Exito was able to increase its presence in Colombia significantly through the acquisition of Cadenalco. This company operated the Ley and Pomona supermarkets and owned the retail network known as Cativen in neighbouring Venezuela (currently positioned as the country’s number two player). In 2006, Exito further reinforced its hold as the leading retail chain in Colombia through the acquisition of rival Carulla Vivero. (Carulla was the oldest supermarket chain in Colombia, opening its doors in 1902 in Barranquilla.)

Exito is more cautious for its growth in 2009 and, as a result, capital expenditure for the year has reduced to Colombian peso 190 billion (or U.S. $83.24 million) compared with 500 billion pesos the year earlier. As the country’s economic slowdown is having a negative effect on consumer demand, Restrepo aims to maintain the healthy position of Exito by focusing on keeping profit margins high rather than boosting sales with new, less profitable stores.

In his spare time – and when he is not travelling around the world visiting Casino’s different operations – Restrepo likes nothing more than sitting on a park bench, taking photos of people passing by, a hobby possibly inherited from his father who was a professional flower photographer.

Industry Affairs News

Industry Performance

GMA Hosts Controller Meeting to Address IFRS Transition

The newly formed GMA controller share group hosts a meeting May 5 to help industry controllers in the transition to the International Financial Reporting Standards or IFRS. The meeting will be from 10 a.m. to 4 p.m. at the Westin Chicago O’Hare.

A panel discussion, led by Kraft Foods Senior Vice President and Controller Pam King, will also feature Ernst & Young executives and GMA Industry Affairs Senior Manager Brooke Weizmann.

Weizmann urged all controllers to attend, noting that the roundtable discussions will focus on the effects of the IFRS transition and why it is important to the CPG industry. She added the group is working on guidelines and successful practices for the IFRS transition.

CPE credit will be awarded for participation in this inaugural meeting of the share group.

Contact: Brooke Weizmann

Association Leadership

GMA CEO Pam Bailey Named to GS1 U.S. Board

The GS1 U.S. organization named GMA President and CEO Pam Bailey to its board of governors at its meeting last week. GS1 U.S. is part of GS1, comprised of 108 country-based affiliates that help businesses implement supply chain standards and bar codes.

Contact: Jeanne Iglesias

Industry Affairs Council Meets With Retailers on

Trading Partner Alliance

The second part of the Industry Affairs Council’s spring meeting featured a joint meeting with FMI’s Industry Relations Committee – the two organizations that represent the senior-most leadership teams in industry affairs in both organizations. Topic: the new Trading Partner Alliance signed by the two organizations that calls for greater collaboration between manufacturers and retailers and strengthens ties in industry affairs, public policy, scientific and regulatory affairs.

Harris Teeter President Fred Morganthall, chairman of FMI’s Industry Relations Committee, and FMI President and CEO Leslie Sarasin, joined Rick Wolford, chairman of GMA’s Industry Affairs Council (IAC) and chairman, president and CEO of Del Monte Foods Inc., and GMA President and CEO Pam Bailey in welcomes and introductions. GMA Senior Vice President for Industry Affairs Steve Sibert and FMI Vice President, Industry Affairs and Trade Development Pat Walsh previewed the mission, opportunities and outcomes of the Trading Partner Alliance.

Earlier, at the IAC meeting, Chairman of the GMA Sustainability Team Elliott Penner, who is president, food products, at Reckitt Benckiser Inc., presented an update on the sustainability initiative. General Mill’s Sarah Geisert, senior director, product safety and regulatory affairs, outlined recent developments in product safety and recall management.

Contact: Stephen Sibert

GMA Sustainability Team Meets With Retailers to Move

Ecological Agenda in Industry

GMA’s Sustainability Team met for the first time with retailers earlier this month in an effort to identify common ground for industry alignment on environmental sustainability and to work together to build a framework to move a sustainability agenda forward in the industry.

Welcomed by Kroger’s Chairman and Chief Executive Officer David Dillon and Reckitt Benckiser’s President, Food Products, Elliott Penner, the meeting also featured the following program participants: Scott Hendricks, vice president, grocery merchandising and procurement, and Lynn Marmer, group vice president, corporate affairs for The Kroger Co.; Matt Kistler, senior vice president, sustainability for Walmart; Tim Rose, senior vice president, general merchandise manager, food, sundries and fresh foods for Costco; and Len Sauers, vice president, sustainability for The Procter & Gamble Company.

Contact: Stephen Sibert

Judges Named in CPG Awards Competition

The GMA Associate Member Council has announced the members of the subcommittee that will select the 2009 CPG Award winners honoring two companies – those with sales below $1 billion and those with sales over that amount.

Newly named members include Phil Friedman, QAD Inc.; Peter Brandt, SAP Americas; Harris Fogel, O4 Corporation; Gregory Smith, KPMG LLP; Michael Gorshe, Accenture; Nick Handrinos, Deloitte Consulting LLP; Ralph Jacobson IBM; Brian Malloy, CHEP Inc.; Bruce Nagel, RW3 Incorporated; Alex Sarkisian, Schawk Inc.; Dan Staresinic, Siemens PLM Software; David Stark, Monsanto Company; and Karl Steiner, Oracle USA Inc.

Deadline for entries is June 1. Winners will be announced at the GMA Executive Conference August 30-September 1 at The Broadmoor in Colorado Springs, CO.

Contact: Jill Johnson

Sales & Sales Promotion

2009 Unsaleables Conference: Charting the Course for Change

Four outstanding general sessions featuring successful practices and case studies in unsaleables management are confirmed for the 2009 Unsaleables Management Conference July 28-30 at the J. W. Marriott Las Vegas.

Featured speakers include George Thrower, manager of unsaleables, Harris Teeter Inc.; Gary Piwko, director of remarketing and returns management, Kellogg Company; Michael Okoroafor, vice president of packaging innovation, Heinz North America; Gary Regina, supply chain-replenishment support manager, Winn Dixie Stores Inc.; Joe Scaccvia, director of strategy and sales operations, Kraft Foods Inc.; Laura Poljanac, senior director for customer service, ConAgra Foods; and Jeff Thune, corporate director of reclamation procurement, SUPERVALU INC.

A special feature this year will be the pre-conference manufacturer-retailer business meetings, returning by popular demand.

GMA hosts this multi-channel forum in cooperation with the Consumer Healthcare Products Association, Food Marketing Institute, National Association of Chain Drug Stores, National Grocers Association and Package Machinery Manufacturers Institute.

For more information on the conference or the meetings, or to register to attend, visit www.unsaleablesconference.com

Contact: Logan Kastner (Program) Jonathan Downey (Sponsorship/Exhibits)

GMA Hosts Meeting & Webinar on Package Integrity

GMA member-company professionals – especially those working with unsaleables and reverse logistics – are invited to a three hour Webinar online or an in-person meeting at GMA headquarters in Washington, D.C. May 26 to learn about package integrity testing methods.

Learn from testing-equipment makers how to ensure your packages and packaging materials meet processor specifications. All in-person attendees will tour GMA’s laboratory and observe what package-integrity testing GMA does for its member-companies.

Contact: James Charbonneau

Supply Chain & Technology

IS/LD Conference Showcases Collaboration

Drawing more than 275 attendees amid an economic downturn, the 2009 GMA Information Systems/ Logistics Distribution Conference held earlier this month was an outstanding success, according to Industry Affairs Senior Vice President Stephen Sibert. Above, left, speakers Stephen M.R. Covey, co-founder and CEO, CoveyLink Worldwide; Thom Blischok, president-global retail, Information Resources Inc.; Donald Biggs, director of customer logistics, Welch Foods, Inc.; Robin Evitts, vice president, chief information officer, The Clorox Company; and Mark Fera, executive project lead, Accenture.

Contact: Jennifer Finci

Logistics and IS Committees Briefed on Trading Partner Alliance

Members of the Logistics and Information Systems Committees meeting with FMI counterparts in Miami prior to the IS/LD Conference were briefed by GMA’s Stephen Sibert and FMI’s Patrick Walsh, on priorities for new Trading Partner Alliance. They also received updates on a completely merged GMA/FMI Supply Chain Conference for 2010.

The IS Committee is wrapping up two projects this spring and summer – publication of a white paper on Retailer-Direct Data and a study entitled Innovation and Product Lifecycle Management Processes.

The Logistics Committee is moving forward with an update of the GMA-FMI Survey of Supply Chain Effectiveness with Kurt Salmon Associates.

Contact: Jennifer Finci

Association Research

Majority of Shoppers Think Green, But Have

Problems Finding Products

Fifty-four percent of shoppers say they consider environmental sustainability when making purchases, but they bought green products on only 22 percent of their shopping trips.

This dichotomy is explored in a study released today by GMA and Deloitte Consulting entitled Finding the Green in Today’s Shopper: Sustainability Trends and New Shopper Insights.

Of the more than 6,400 shoppers surveyed, 95 percent are open to buying green products, 67 percent look for them in the stores, but only 47 percent found them, spotlighting a need for more communications, better education and improved shopper marketing programs. “It’s not enough to just put green products on the shelf,” GMA Director of Sales and Sales Promotion Brian Lynch said. “We have to educate consumers and leverage in-store communications to make the sale.”

He added that ecological reasons are an important tie-breaker in product choices and a driver in product switching.

Head of GMA Sustainability Task Force Elliott Penner, president of food products for Reckitt Benckiser, said the study highlights the CPG industry’s top priorities – meeting consumer needs and reducing its environmental footprint.

The study also found that green shoppers:

Buy more products on each trip and visit the store more frequently than other shoppers.
Are diverse and spread among all age, education and income groups, as well as among all household sizes.
Are less price conscious than the average shopper.

To download a copy of this study, please click here.

Contact: Brian Lynch

Datebook

July 28 - 30

Aug. 30 - Sept. 1

Nov. 2 - 3

Joint Industry Unsaleables Management Conference

JW Marriott Las Vegas Resort and Spa

Las Vegas, NV

Contact: Logan Kastner

2009 GMA Executive Conference

(By invitation only)

The Broadmoor

Colorado Springs, CO

Contact: Mary Olsen, Stephen Sibert

Merchandising, Sales & Marketing (MSM) Conference

The Arizona Biltmore

Phoenix, AZ

Contact: Brian Lynch

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@ Copyright 2009 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 to protect the safety and security of the food supply 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 more than $1 trillion in added value to the nation’s economy. For more information, visit the GMA Web site at www.gmaonline.org