Vol. 1 No. 7
November 2007
In This Issue:
GMA/FPA Industry Affairs Group:
Troy J. Beeler
Manager
Sales & Sales Promotion
Coordinator
Industry Affairs
Jeanne Iglesias
Director
Supply Chain & Technology
Brian Lynch
Director
Sales & Sales Promotion
Stephen A. Sibert
Senior Vice President
Industry Affairs
Pam Stegeman
Vice President
Supply Chain & Technology
Industry Affairs
Review Team:
Co-Founder
Planet Retail Ltd.
IAR Consultant
President & CEO
Singley Associates
IAR Editor
New Metro CEO
Cordes Is One of Europe’s
Most Influential Business Leaders
Metro: At a Glance
Key Operating Facts
Group Sales (Inc VAT) 2006
U.S. $85.06 Billion
Net Sales (Ex VAT) 2006
U.S. $ 75.13 Billion
EBT
U.S. $ 1,925 Million
No. of Countries
30
Top 3 Market Position
Bulgaria, Germany, Moldova, Morocco, Poland, Romania, Russia, Serbia, Ukraine, Vietnam
Key Formats
Cash and carries, electronics superstores, hypermarkets
Source: Planet Retail Ltd - www.planetretail.net
On September 26, Dr. Eckhard Cordes was elected as the new chief executive of Metro Group’s supervisory board. He assumed his post on November 1, replacing the outgoing CEO, Dr. Hans-Joachim Körber.
Generating
net sales of approximatly U.S. $75 billion last year, German-based Metro Group is
the third largest, and one of the most international, retailers in the
world. It operates some 2,400 outlets in 30 countries spanning Europe,
Africa and Asia. Metro has a diverse portfolio of formats ranging from its
flagship Metro Cash and Carry outlets, to hypermarkets, department stores,
electronic superstores, DIY outlets and restaurants.
It is no coincidence that the election of Cordes to the board followed a
change in the company’s ownership structure just three weeks earlier. Cordes
serves as the CEO on the board of Haniel, an international trading company
and one of Metro’s founders. In August, Haniel announced that it had bought
an additional 15.68 percent stake in Metro taking its shareholding
percentage to 34.24. As a result, the stake held by the three founding
families (Otto Beisheim, Haniel and Schmidt-Ruthenbeck) increased to 68.47
percent.
Subsequently, Haniel pooled its stake with the 15.77 percent share held by
the Schmidt-Ruthenbeck family, giving both families a voting pool of 50.01
percent of Metro. Regarding further stake building, Haniel has stated that
it does not plan to make any additional offers for the outstanding shares at
this time.
Following this change in leadership, Cordes will be able to “examine value-enhancing measures,” which could result in a new corporate strategy. Cordes has added that if divisions fail to create value in the medium term, there are no guarantees about their future.
He is expected to devise a new plan for dealing with unprofitable operations
such as German department store chain Kaufhof and superstore operations
Extra, which have been underperforming for some time now. Körber had
previously resisted the divestment of these operations, attempting instead
to improve their performance, although he met with limited success. Despite
Körber's achievement in developing Metro internationally, there have been
calls for greater profitability with more streamlining and synergies across
the business. According to media speculation, Körber’s decision to leave
Metro stemmed from a disagreement with Cordes over the future direction and
strategy of the business.
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Dr.
Eckhard Cordes is expected to create a new strategy for Metro |
Born in Neumünster, Germany on November 25, 1950, Eckhard Cordes received a degree in business administration from Hamburg University before going on to complete a doctorate. In 1976, he joined DaimlerChrysler AG (formerly Daimler-Benz AG) spending more than 30 years working for the car company, where as a member of the board he spearheaded a turnaround strategy for its industry-leading commercial vehicles division and Mercedes Car Group. Since January 1, 2006, he has served as CEO of the management board of Franz Haniel GmbH. |
A highly discrete man, Cordes is married with two grown children by his first marriage, and two small children by his second marriage. He likes to go jogging “no matter how stressful his everyday life is.”
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Cordes
(L) and former Metro CEO Hans-Joachim Körber enjoy happier times. |
Retaining his position at the helm of Haniel in addition to being CEO of Metro, Cordes is now one of the most influential business leaders in the German economy. He controls more than U.S. $107.3 billion of sales and employs 300,000 people across the two companies.
With his experience in restructuring, the future is likely to see a more streamlined Metro with a greater focus on the group’s most successful formats. |
Industry Affairs News
Chairman’s Advisory Committee (CAC)
CAC Fall Meeting Spotlights Sustainability, Execution Excellence
The Chairman’s Advisory Council’s third-quarter meeting is scheduled to hear programs ranging from a sustainability case study and analysis of the green consumer, to an overview of execution excellence and updates on GMA/FPA programs. Additionally, a tour of the GMA/FPA laboratory facilities is planned. The CAC meets in Washington Nov. 8-9 at the Grand Hyatt Washington Hotel.
Speakers include Executive Vice President, Nestlé Waters presenting a sustainability case study; President Edward Kuehnle, Catalina Marketing Services on how to understand the green consumer; and Tom Hislop and Jim Lahey of EHS Partners offering a look at execution excellence in the CPG industry.
GMA/FPA President and CEO Cal Dooley will give an association update, followed by program overviews from Senior Vice President Dr. Craig Henry/Science and Regulatory Affairs, Senior Vice President Stephen Sibert/Industry Affairs, Senior Vice President Mary Sophos/Governmental Affairs, and Vice President Sean McBride/Communications.
CAC Chairman Si Brown, president and CEO of Bruce Foods, will preside at the two day meeting.
GMA/FPA’s Associate Member Council will join the CAC for the laboratory tour and for the reception and dinner Nov. 8.
Contact: Diana Randazzo
President Bush Addresses Fall Conference
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President George W. Bush addressed attendees of the GMA/FPA Fall Conference in Washington, D.C., on October 31. Introduced by Billy Cyr, President and CEO of The Sunny Delight Beverages Company, the President outlined a variety of topics, including healthcare, food safety, obesity, tax policy, international trade and the federal budget. |
Mid- and Small-Cap Member Companies Urged to Take Online Survey
Senior Vice President for Industry Affairs Stephen Sibert urges GMA/FPA’s mid- to small-cap companies to take a short survey on the future grow of their company and how the association can best assist them in meeting their goals.
“We want to gain a better understanding of the special needs of our mid- and small-cap companies in these turbulent times,” Sibert said. “We ask them to share their opinions on ways our organization can deliver more value to them and, thus, to overall industry efficiency.” Click here to access the survey or email Troy Beeler for a hard copy of the survey.
Contact: Troy Beeler
GMA/FPA Unveiling New E-mail Addresses
In one of the final phases of the GMA and FPA merger, the “gmabrands.com” and “fpa-food.org” e-mails are being phased out. The new joint e-mail address is gmaonline.org. The change is effective immediately.
Online Registration Available for Sustainability Summit
You can now register online to attend the industry’s first-ever environmental summit, to be held January 17-18 at Washington, D.C.’s Ritz-Carlton Hotel.
Register today to be among the thought leaders in the
CPG industry, public affairs, science, national and international
environmental organizations and academia as they address the urgent issue of
environmental sustainability.
GMA/FPA President and CEO Cal Dooley said the event will offer companies a roadmap for adoption of green practices in their organizations. An example of the exciting program planned includes a blue-ribbon panel featuring President and CEO John F. Brock of Coca-Cola Enterprises Inc., President and CEO Doug Conant of Campbell Soup Company and President Kevin Havelock of Unilever USA.
Contact: Liz Cookson
Industry Affairs Council (IAC) Hears Securities Analyst,
IA Committee Updates
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Analyst Mark Husson of HSBC Securities (USA) Inc. outlined for IAC members at their fall meeting Oct. 30-31 in Chicago the best ways to play the emerging food market in the United States. Chaired by IAC Chairman Rick Wolford (chairman and CEO, DelMonte Foods Company), the meeting also heard reports from the IA committee representatives, including: n Sales: Grant LaMontagne, The Clorox Company n Information Systems: Marc Brown, DelMonte Foods Company and Robin Evitts, The Clorox Company Logistics: Criag Hall, Mars Snackfood U.S. |
Unsaleables: Joseph Scaccia, Kraft Foods Inc.
Direct Store Delivery: Ann Dozier, The Coca-Cola Company and Dale
Brockwell, Kraft Foods Inc.
Industry Development: Tom Joyce, The Hershey Company
Wakefern Food Corporation’s Executive Vice President Joe Sheridan also addressed the two-day conference on “Unsaleables – Finding a Financially Viable System,” and COO of GS1 U.S. Chip Lloyd gave an update on that organization’s activities.
Contact: Diana Randazzo
IS/LD Conference Has New Web Site, Online Registration
Check out the new Web site for the Information Solutions/Logistics Distribution Conference Mar. 30- Apr. 2 at Rancho Mirage, Palm Springs, Calif. Click here to visit the Web site, online registration will be available the second week in November.
Contact: Jeanne Iglesias (program); Jonathan Downey (sponsorship); Liz Cookson (registration)
IS Committee Hears About Electronic “Discovery” in Litigation
How to prepare for and to comply with electronic discovery needs during a court case was the subject of David R. Cohen and Helen Bergman Moure, partners in Kirkpatrick & Lockhart Preston Gates Ellis LLP, at a meeting of the Information Systems Committee. The full presentation of ways corporations can prepare for e-discovery, what obligations you face in depositions, and a 12-step program for e-discovery and document retention can be obtain by emailing Alexis Larkin.
The IS meeting was held in conjunction with the MSM Conference in Colorado Springs last month.
Contact: Jeanne Iglesias
Sales and Sales Promotion
Unsaleables Committee Starts Work on Benchmarking Report
The Joint Industry Committee on Unsaleables at a meeting last month agreed to be begin working on their bi-annual benchmarking report on unsaleable products, focusing on the need for more widespread retailer participation. Deloitte Consulting LLP was named to conduct the study. The committee welcomed The Hershey Company and its new member Scott Azzalina, Leader, Waste Initiatives, to the committee. A meeting the first week of February is planned with a program on the impact of sustainable packaging on unsaleables.
Contact: Troy Beeler
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 Wal-Mart Canada Corp’s executives Don Swann (L) and Allan Cussen join Industry Affairs Director Brian Lynch (c) at the recent MSM conference. |
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Tom Furphy, managing director of CPG for Amazon.com Inc. discusses new product launches during the Merchandising Leadership Roundtable at MSM Conference. |
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Unilever Team Leader Burt Palmer (l) and Senior Vice President/Marketing Stephen Vowles of Stop & Shop Companies Inc. outline their case study, which won the 2007 GMA/FPA Innovation and Creativity Award. |
Chairman of GMA/FPA’ Information Systems Committee Marc Brown, vice president and chief information officer for Del Monte Foods Company, addresses an MSM session.
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Contact: Brian Lynch
GMA/FPA Research
Case Studies Showcase Positive Improvements in Inbound Freight Management
The
recent study of the Joint GMA Logistics and FMI Supply Chain Committee – Blueprint for
Effective Inbound Freight Management – has been posted online. The
white paper focuses on tactical solutions to improve efficiency in inbound
freight management.
The collaborative work between GMA/FPA and FMI defines best practices on inbound freight management for manufacturer, retailer and carrier partners to enhance on-time shipment and delivery, dock capacity, warehouse staffing, cost management, and in-stock store product availability.
Three case studies from participating partners document the improvements made in inbound freight management. During the Hannaford Bros. Co. partnership with Nestlé USA Inc., inventory in dollars was reduced by 20 percent while turns increased a remarkable 70 percent. Delivery reliability improved 4.1 percent.
In a collaboration between Wegman’s Food Markets Inc. and The Hershey Company, key improvements included the implementation and full use of the Advance Ship Notice (ASN). Replenishment coverage was adjusted from seven days to one day, and inventory was reduced by 23 percent while maintaining a 99.68 percent service level.
In the partnership with Ahold USA, Unilever and J.B. Hunt, project results reported a jump in accuracy in data sync of 300 percent. Other milestones included an 18 percent improvement of on-time delivery and a 4 percent increase in trailer utilization.
Click here to download the report.
Contact: Jeanne Iglesias
GMA Leadership Profile
Leadership Profile: Hershey's Tom Joyce
Current
Position
Vice President, Customer and Industry Affairs, The Hershey Company
for 32 years.
Industry
Leadership
GMA/FPA – Grocery Manufacturers Association –
chairman of the Industry Development Team.
AWMA – American Wholesale Marketers Association – past board
member and currently sits on the Finance and Education Committees.
NACS – National Association of Convenient Stores – on
Supplier Board and the Research Committee.
NACDS – National Association of Chain Drug Stores – on the
Retail Advisory Board and the Membership and Conferences Committee.
NCA – National Confectionery Association – currently sit on
the Executive Board, serves as chairman of the All Candy Expo and
the Expo Committee, and is on the Trade Relations Committee.
FMI – Food Marketing Institute – on the Associate Member
Advisory Board.
IGA – International Grocers Association – past member of the
Red Oval Advisory Committee.
CIES – International Food Forum – on the U.S. Advisory
Council.
Career
Highlights
“In 2003 I was inducted into the NCSA - National Confectionery Sales
Association “Candy Hall of Fame” I am a five-time winner of
Hershey’s President Cup for Sales Achievement. I have been
recognized by the AWMA, Pennsylvania Distributor Association,
Illinois Association of Tobacco and Candy Distributors and the
Southern Association of Wholesale Distributors for my contribution
to their associations and the industry.”
Personal
“I was born in Minneapolis June 3, 1950. In 1954, I moved to
Louisville, Kentucky, where I was raised and educated. Currently
divorced, I am the proud father of Aaron J. Joyce (34) and Rachel J.
Joyce (25) who both currently reside in the Nashville area. My main
hobby is relaxing. After being married for 26 years and raising two
children, my personal life is pretty simple. Tried coaching my son’s
soccer team but realized I was only concerned about his performance
and not the team’s. Golf is an occupational responsibility, and
other physical hobbies may cause injury, so I avoid them. Love
college basketball and football. I gained 25 pounds after I
purchased my 56-inch HD TV. Main hobby: watching sports on HDTV. I
am the proud owner of a 2001 Vespa Motor Scooter that brings me
great pleasure when riding through the Pennsylvania countryside.
Things that make you smile are very important in life.”
Education
Elementary: St.
Thomas Moore, Louisville, KY
High School: DeSales, Louisville, KY
College: Western Kentucky University, Bowling Green, KY
First Job
“High school: paperboy. In college, US Steel didn’t want me so I was
hired by my Father as project coordinator of a construction project
that he was involved in.”
How’d You
Reach Where You Are Today?
“Call me Lucky. How did this happen to me?' Whether they admit it or
not, every successful person asks themselves from time to time “How
did this happen?' Being named 'Mr. November' in the Industry Affairs
Review is something I never imagined possible. It took a lot of
people to help me get here. First I would like to thank my
Mother. All Mothers have a vested interest in the education of their
children.
“Seriously, all success is determined by surrounding yourself with successful people. In my current position, I have received tremendous support from the men and women who have my job with other CPG companies. Their insight and experience have been priceless. I had great sales managers when I started with Hershey. We had a very effective sales training program. There was structure in how you worked your way up to your next job. You called on every customer in every class of trade in your area. Talk about education. The customers taught us everything about business.
“That is when I learned the secret to success: ‘Work harder than the other guy.’ I accepted assignments as military sales manager, district manager, region manager, HRP broker sales manager and national accounts manger for special trade accounts. With this exposure, you meet customers and other members of the industry.
“That is why I have my job – knowledge of all classes of trades, personal relationships with the customers in our industry and dedication to the success of my company and to the success of the industry. I enjoy what I do. Add in a very understanding family and a supportive group of friends and colleagues, and that is my story.”
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Member Services |
Information Available on Upcoming New Reportable Food Registry
Congress passed amendments to the Food and Drug Act in late September that will establish a Reportable Food Registry, according to GMA/FPA Vice President, Food Safety Programs Jenny Scott. Companies should review an online summary of the upcoming new requirements to ensure that their companies are preparing to comply.
In nine months, FDA will publish guidelines on what companies are required to report and how they must begin submitting these reports. To comply with Title X of the new law, manufacturers will need to ensure they have reporting systems in place to investigate reports of alleged illness/injury, that these reports meet certain FDA criteria in a timely manner, and that the required records are maintained.
For more information on the Reportable Food Registry, click here.
Contact: Jenny Scott
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Nov. 9-11 |
Chairman's Advisory Council and Associate Member Council Meeting Grand Hyatt Washington Washington, DC Contact: Stephen Sibert, Jill Johnson
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Jan. 17-18, 2008 |
Environmental Sustainability Summit
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Mar. 30- |
Information Systems and Logistics Distribution (IS/LD) Conference Rancho Mirage (Palm Springs), Calif. Contact: Jeanne Iglesias, Liz Cookson
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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.
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