Vol. 3 No. 3

Retailer Profile

The Industry Affairs Review is made possible by support of:

In This Issue:  

Retailer Profile: Stefen Krause, Jumbo Retail Argentina SA

IS/LD Registration Still Open

DSD Meets, Has Webinar

CFOs Open Hedging Survey

Controller Group Forms

CAC Spring Meet Agenda

AMC Names New Officers

CPG Award: Entries Sought

Coupon Committee Meets

Unsaleables Date Changes

Kastner Named at GMA

GMA Leadership Profile: Heinz’s Eugene Schachte

Datebook

GMA Industry

Affairs Group:

Jonathan Downey

Manager

Industry Affairs & Business Development

Jennifer Finci

Assistant

Supply Chain & Technology

Jeanne Iglesias
Director
Supply Chain & Technology

Logan Kastner

Senior Manger

Sales & Sales Promotion

 
Brian Lynch
Director
Sales & Sales Promotion

Michelle Marcoot

Director

Jessica Martin

Assistant

Sales & Sales Promotion

 
Stephen A. Sibert
Senior Vice President
Industry Affairs

Brooke Weizmann

Senior Manager

Industry Performance

Industry Affairs

Review Team:

Natalie Berg
Grocery Retail Manager
Planet Retail Ltd.
IAR Consultant

Jo Anne Sharlach
Singley Associates

Editor

Learn What Unsaleables

Cost CPG Industry

The  2008 Unsaleables Report: The Real Causes & Actionable Solutions details how unsaleables cost the industry millions of dollars annually – manufacturer rates average .83 percent of gross sales and distributors rates average 1.21 of gross sales.

The report analyzes costs, causes and best industry practices associated with unsaleables and is available here.

Bringing the voice of the shopper to the sales and marketing process.

SmartRevenue.com

GMA’s Stockpile of Knowledge: Available

On a Web Click

GMA’s Book Store is brimming with information on a wide variety of issues – from canning to case markings, from recalls to regulations on just about everything.

Learn about Industry Affairs issues such as pallets, shipping container codes and unsaleables benchmarks. Read about the power of DSD, full-service solution selling and category management. Order your manual or guidebook on the GMA publications website.

Jumbo Does Everything in a Big Way to

Become Major Player in Argentina

At a Glance

Key Operating Facts

By PlanetRetail 

With 29 years of retail sector experience – all with Cencosud – Jumbo Retail Argentina SA Managing Director Stefan Krause has a strong retail track record developed in Cencosud’s operations on both sides of the Andes Mountains in Chile and Argentina.

Married with three children, Krause was born in Temuco, Chile in 1955. After graduating in commercial engineering from Concepción University in Santiago, Chile, Krause took his first job as a trainee in Cencosud in September 1979, working his way up to the position of managing director of the Jumbo banner in Chile.  Krause would later move to Argentina to lead Jumbo Retail Argentina, the retailer’s grocery operations in that country.

Cencosud entered Argentina in 1982 with the opening of the first Jumbo hypermarket in Buenos Aires. It currently leads the retail sector in the country thanks to a comprehensive range of operations that include the Jumbo hypermarket and Disco and Vea supermarket chains – all managed by Jumbo Retail Argentina – the Easy and Blaisten home improvement chains and shopping centres.

In terms of grocery sales, Cencosud ranks second after Carrefour, and thus last year the operation posted net sales of U.S. $2,955 million, with a total of 16 Jumbo hypermarkets and 237 Disco, Vea and Plaza Vea supermarkets by the end of that year.

Jumbo – like its name – does things in a big way. A Jumbo in the wine country of Mendoza has a total of 142,500 square feet and a sales floor measuring 100,000 square feet. “The traffic is staggering,” observers note with Argentineans taking advantage of the slogan:  “Más de la major por menos” or more of the best for less.

The retailer has recently received approval from the Argentinean government for a merger between grocery chains Disco and Jumbo. Cencosud acquired Disco – by then the Argentine unit of Ahold – in November 2004. The longest-ever merger process in Argentina, the union was approved just two months short of the fifth anniversary of the start-up of the process. It has been a happy ending for Cencosud, with no conditions attached to the thumbs-up from the Argentinean competition commission. Jumbo will absorb Disco for almost U. S. $315 million and the two chains, as well as Vea, will be managed from now on by Jumbo Retail.

Krause’s operation is bound to benefit from cost savings derived from this merger, estimated at U. S. $23 million, consolidating Cencosud as a main player in the Argentine food sector.

Industry Affairs News

Supply Chain & Technology

Still Time to Register for IS/LD Conference

Registrations for GMA’s second largest conference and a must-attend for all logistics and information technology executives – the Information Systems/Logistics Distribution (IS/LD) Conference – are still being taken and will be available on site when the conference begins April 5 at Miami’s Marriott Doral Golf Resort and Spa.

To join the IS/LD experience, which will end April 8, contact Michelle Marcoot or sign up today at www.gmaisld.com.

This year’s innovative and diverse program features two joint GMA-FMI general sessions that spotlight a theme of the conference – collaboration between trading partners.

A case study highlighting how the sharing of point-of-sale, inventory and supply chain data leads trading partners Kraft Foods and Food Lion LLC to increased sales, reduced inventory levels, lower out-of-stocks and improved store execution. Speakers are Kraft Foods’ Customer Business Manager Bill Maier and Food Lion’s Director of Logistics Elliot Dickson.

“On the Road Together: Transportation Capacity Sharing” is the title of the session featuring Thomas Gravelle, Hormel Foods Corporation’s director of logistics, transportation and customer service, and Jim Moore, assistant vice president, transportation for Hy-Vee Inc. They share their experiences in a  collaboration to improve transportation expenses while at the same time reducing environmental impact.

Learn more about conference highlights at www.gmaisld.com.  Post-conference presentations will be available by visiting www.gmaisld.com.

Contact: Michelle Marcoot

DSD Committee Meets in Florida, Hosts Webinar

The GMA Direct Store Delivery (DSD) Committee held a two-day meeting earlier this month in Jacksonville, where members met with customers at Winn-Dixie Stores to discuss how DSD can enhance their trading partner relationship.  Also, this month the committee hosted a successful webinar session centered on its most recent publication, Powering Growth Through Direct Store Delivery. Lora Cecere of AMR Research Inc. moderated the panel comprised of Ann Dozier (The Coca-Cola Company), Dale Brockwell (Kraft Inc.) and John Phillips (PepsiCo Inc.)   

Contact : Jennifer Finci

Industry Performance

CFO Committee Launches Commodity-Hedging Survey        

The GMA Chief Financial Officer Committee announced a new partnership with Bain & Company to conduct a benchmarking study to determine successful practices in commodity hedging, according to Brooke Weizmann, GMA senior manager for industry performance.

CPG executives are invited to participate in the brief survey, and all company data will be kept confidential. As a special boon for survey participation, Bain associates offer to follow up with a private assessment of your company’s specific practices compared with other aggregated respondents and those identified as best-in-class.

Contact: Brooke Weizmann

Controller Share Group Forming to Ease Transition to IFRS

At the suggestion of several member companies, GMA is forming a share group of controllers to discuss CPG industry issues involved in the transition to International Financial Reporting Standards (IFRS). Mark your calendar today for May 5 from 10 a.m. to 4 p.m. at the Westin Chicago O’Hare.

Leading the discussion will be Pam King, controller, Kraft Foods, GMA’s Brooke Weizmann, and executives from Ernst & Young LLP.

Continuing Professional Education credits will be awarded for participation.

“We are hopeful that coming out of the roundtable discussions, we will be in a position to issue industry-approved guidance and successful practices for strategic transitions to IFRS,” said Weizmann.

Contact: Brooke Weizmann

Association Leadership

CAC’s Spring Meeting Hears Variety of Speakers

The spring meeting of the Chairman’s Advisory Council (CAC) held this week in Charlotte featured updates from widely varying speakers on a variety of subjects. A preview of the 2009 GMA Financial Performance Report and what it means to the CPG industry was presented by John Maxwell, senior partner, and Herb Walter, partner, PricewaterhouseCoopers LLP.  Another presentation of New Models in Manufacturing Efficiencies was given by Stanley L. Brown, partner, Ernst & Young LLP, and Michael Miller, associate director, external business development for The Procter & Gamble Company.

IBM’s Ralph Jacobson, worldwide consumer products marketing manager, and William Gilmour, worldwide partner, led a presentation on the CEO Mandate: Findings from the 2008 IBM Global CEO Survey.  President and CEO of Compass Group for the Americas Gary Green addressed members on foodservice and the CPG industry.

President and CEO Rick Anicetti of Food Lion LLC gave a company update,  GMA President and CEO Pam Bailey briefed CAC members on current GMA programs, and CAC Chairman Si Brown (President and CEO of Bruce Foods Corporation) moderated the meeting.

The evening before the meeting, Humpy Wheeler, chairman, the Wheeler Company and past president and general manager of NASCAR’s Lowe’s Motor Speedway, spoke at a joint CAC and Associate Member Council dinner.

Contact: Stephen Sibert

AMC Names New Officers, Meets with CAC

Greg Smith, global lead partner, private equity at KPMG  LLP, was named this week as the new chairman of the Associate Member Council at its meeting in Charlotte. He replaces Harris Fogel, president of 04 Corporation.

Peter Brandt, vice president for consumer products/life sciences, PTG Industry Solution Market at SAP Americas, was named the new vice chair, as was David Stark, vice president, consumer traits at Monsanto Company.

The spring meeting of AMC also featured remarks from Stephen Sibert, GMA vice president for Industry Affairs; Jill Johnson, director, Industry Affairs; and Ralph Jacobson, IBM’s worldwide consumer products manager. AMC members also joined with members of the Chairman’s Advisory Council for a reception and dinner.

Contact: Jill Johnson

Enter Your Innovative Program in GMA’s CPG Award Today

Has your department developed an innovative program in sales, merchandising, supply chain? Have you and your retail trading partner revolutionized the way your product is presented with successful results?

Enter your efforts today in GMA’s sixth annual CPG Award for Innovation and Creativity, sponsored by GMA’s Associate Member Council. For information about this year’s award and to view the award-winning presentations from past years, visit the CPG Award website.  Deadline for entries: June 1.

Contact: Jill Johnson

Sales & Sales Promotion

Industry Coupon Committee Meets Amid Coupon Resurgence

The Joint Industry Coupon Committee (JICC) met this week at GMA headquarters and heard updates about all aspects of couponing, which is undergoing a marked resurgence in these economic hard times. 

The pan-industry committee heard reports on the implementation of the GS1 Databar for coupons in the industry, according to JICC Co-Chairs Jackie Broberg, functional analyst, General Mills Inc., and Alan Williams, vice president, applications development, Ahold Information Services, Ahold USA Inc. Executive Director John Morgan of the Association of Coupon Professionals (ACP) reported on the digital Application Identifier.

New GMA Senior Manager Logan Kastner will address the ACP conference April 28-30 in San Antonio. For more information or to register to attend the conference, contact John Morgan.

Contact: Logan Kastner

Unsaleables 2009 Conference Date Changed to July 28-30

The Joint Industry Unsaleables Leadership Team met recently in Tampa to discuss the 2009 conference and future project opportunities. Note: the date of the 2009 Joint Industry Unsaleables Conference has been changed to July 28-30 at the J.W. Marriott Las Vegas, according to Team Co-Chair Gene Schachte, senior manager of reverse logistics at Heinz North America, H.J. Heinz Company. (A retailer co-chair of the group has yet to be named.)

Contact: Logan Kastner

Kastner Named Senior Manager

Logan Kastner recently joined GMA’s Industry Affairs Group as senior manager for sales and sales promotion. She manages unsaleables and coupons, plays a key role in the annual MSM conference, and supports IA’s efforts in the Industry Development and Advisory, Sales Agency, and Sales Committees.

She has a strong background in advertising and marketing representing such brands as Subway, Mattel, L’Oreal and the U.S. Army. 

Contact: Brian Lynch

GMA Leadership Profile

Heinz Company's Eugene (Gene) Schachte

Current Position

Senior Manager, Reverse Logistics, Heinz North America

H.J. Heinz Company

Industry Leadership Positions

Co-Chair, Joint Industry Unsaleables Leadership Team; Co-Chair, Joint Industry Unsaleables Leadership 2007 Conference; member, Food and Beverage Committee, Reverse Logistics Association.

Career Highlights

In his 17 years at Heinz, Schachte has held several positions. He started out  as a temporary and worked his way through the organization – from customer service, customer accounting, production planning, supply planning, demand planning, sales planning, sales technology and information, and, finally, unsaleables.  This diverse background has helped Gene bring a holistic approach to managing reverse logistics.

In 2002, Schachte was recognized with an HJ Heinz award for excellence for his work with the Star-Kist seafood group. In 2003, he was recognized as a Heinz Hero for his role in successfully executing the Star-Kist Lunch Kit transition.

In his current role, he has implemented programs that have reduced Heinz unsaleables exposure significantly in the past five years.

Education

BS, Accounting, Penn State University

MBA, Duquesne University, 1995

Personal Information

“I was born and raised in rural southwestern Pennsylvania and have remained in the area all my life.  As such, I am a life-long fan of the Pittsburgh Steelers, Penguins and even the Pirates. 

“I currently reside in Murrysville, PA with my wife Jill and my three sons Hunter (8), Jackson (5) and Stephen (5).

“I enjoy outdoor activities including hiking, biking, fishing and hunting and am a big sports fan. Much of my current sports involvement includes coaching and watching my boys as they discover sports.

First Job

“My first job was cutting the neighbor’s grass.  I remember the little grey push mower and the thrill of getting that $10 each week.  I was 11 years old at the time.

How did you get where you are today?

“Ever since I started at Heinz I have had the reputation for being someone who can spot inefficiencies and broken processes and find a way to fix them and make them better.

“As I ascended through the ranks, I had the opportunity to participate cross-functionally and view opportunities holistically.  Managing unsaleables effectively requires analysis of a multitude of variables that impact the delivery of product to the consumer.  Having the diverse background I acquired as I moved through the organization has enabled me to see the big picture and balance off the positive and the negatives associated with different projects.

“I never anticipated that having an accounting background would be such a valuable asset to managing unsaleables.  But as we look at the options to managing this exposure, it is the financial analysis that is a key driver to our decisions. 

Ideas on Partnership and Collaboration

“Unsaleables reduction begins and ends with partnership and collaboration.  No one can effectively address his or her opportunities without seeing the whole story, and the only way to get all the facts is to look at the product from its production to its disposition.

“There are many different levels of cooperation that a company can use, but the initial conversation needs to happen between trading partners.  It is impossible to address issues without actually sharing information.

“The extent or scope of a partnership depends on the size of the companies and the opportunities.  Collaboration can be anything from simple carrier unload audits involving the trading partners to long-term, third-party audits involving both the vendor’s and the customer’s supply chain.

“However you look at it, there is no substitution for collaboration and partnership in reducing unsaleables.”

Datebook

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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.