Super Bowl 2016 - Herbert Mines Associates

Super Bowl 2016
TheConsumer
Transaction
News
It’s too late for
Christmas exchanges.
BizBuzz
News That Makes Teeth Whiter, Clothes Brighter, and Life Just Plain Better
■
Newell Rubbermaid is buying Jarden and
their 120 brands in a $15 billion deal. The
resulting $14 billion company will be called
Newell Brands.
■
Before that happened, Jarden bought
Jostens, the $740 million maker of class
rings and yearbooks. KKR was an owner.
■
JAB Holding will pay $14 billion for Keurig
Green Mountain. JAB has been on a caffeine
jag while buying Peet’s Coffee & Tea, Caribou
Coffee, and Jacobs Douwe Egberts.
■
Molson Coors will pay $12 billion for the
remaining 58% of MillerCoors. That’s their
JV in the US with SAB Miller, who is selling
so they can be acquired by AB InBev.
■
Snyder’s-Lance is paying $1.9 billion for
Diamond Foods. It adds brands such as Kettle
Chips, Emerald nuts, and Pop Secret.
The Consumer Biz Buzz
is written and published by
Dave Hardie of
Herbert Mines Associates
Executive Search Consultants
www.herbertmines.com
© 2016 Herbert Mines Associates
212 652-0336
[email protected]
■
As a rather novel move, Coty acquired
a digital marketing firm called Beamly.
The goal is to do better online marketing.
■
Treehouse Foods is buying most of
ConAgra’s private label business for $2.7
billion. It unwinds the misguided 2012
acquisition of Ralcorp for $6.8 billion.
■
Meanwhile, ConAgra will spin off their
Lamb Weston frozen potato business as a
separate $3 billion company. What’s left
will be called Conagra Brands. (And yes,
they are losing that weird capital “A”.)
■ Avon is selling their struggling North
American business to Cerberus, a PE firm.
The unit represents 14% of the company.
■
Treasury Wine Estates is buying Diageo’s
North American wine business. The brands
include BV, Sterling, and Acacia.
■
Beam Suntory is buying half of ABV Brands,
a distributor in South Africa.
■
General Mills is buying EPIC Provisions, a
maker of jerky and other meat snacks. It
will become part of their Annie’s subsidiary.
■
Shearer’s Foods is buying Barrel O’ Fun,
a family-owned salty snack company.
■
Constellation Brands is paying nearly $1
billion for Ballast Point, a craft brewer in
San Diego. An IPO had been planned.
■
Smucker is selling their condensed milk
business (Eagle Brand, Pet, private label,
etc.) to Kelso. The new company will be
called Eagle Family Foods.
■
Coca-Cola is buying 40% of Chi, Nigeria’s
largest juice company. It helps in Africa’s
biggest economy … and builds their nonsoda business.
■
Pinnacle Foods is buying Boulder Brands.
Their portfolio includes Udi’s, Glutino,
Earth Balance, and EVOL.
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Transaction
News
Continued.
■ TSG Consumer had two good exits. Prestige
Brands is paying $225 million for DenTek,
the oral care products company. Glanbia is
paying $217 million for thinkThin, a nutrition
bar and hot cereal company with revenue of
$85 million.
■
Unilever is selling their Motions, Just for
Me, Consort, Groom & Clean, and TCB
grooming brands to Strength of Nature.
No, we’ve never heard of the brands either.
■ Encore Consumer Capital sold FreshKO
Produce, a distributor in California, to C&S
■
Catterton is merging with L Capital, the PE
arm of LVMH, to create the largest global
PE firm focused on the consumer world.
It will be called L Catterton, and Catterton’s
managing partners will be co-CEOs.
■
Swander Pace bought Voortman Cookies,
a Canadian maker of premium cookies.
They also bought Swanson Health Products,
a catalog and internet retailer of healthy
living products.
■
Wholesale Grocery.
MidOcean Partners sold South Beach Diet
to Nutrisystem. The plan is to create a mealdelivery program with the brand.
■
Meanwhile, Encore invested in LORAC
Cosmetics, a Hollywood-inspired prestige
color cosmetics company.
■
Courtrooms and
Bureaucracy
■ Gillette, a subsidiary of P&G, filed suit
against Dollar Shave Club. They claim
patent infringement.
■
Punchlines you missed include:
“And the other one is a lawyer.”
■
The FDA reversed course and allowed
Hampton Creek to keep the Just Mayo brand
name. The label must make it clear the
product does not contain eggs.
Expanding and
Contracting
We continue to prefer
the former.
■ General Mills announced 285 more job
cuts, this time in the UK and New Zealand.
■ J&J is cutting some 3,000 jobs, mostly
in their medical devices division.
Brynwood bought Sunny Delight Beverages
from J.W. Child. The business was spun off
by P&G in 2004.
Hasbro is feuding with a toy inventor’s
widow. They dispute her claim that her
husband created The Game of Life … and
she is owed $2 million in royalties.
■
A-B InBev settled a class action suit that
said drinkers were deceived when production
of Beck’s moved from Germany to the US.
Consumers can get a share of $20 million
… if they saved receipts.
■
Kraft Heinz announced they will close seven
plants over the next two years. They are also
moving the Oscar Mayer business from
Madison to Chicago.
■ Mars is cutting an unannounced number
of jobs in their pet care business.
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People News
It’s a new year and
a new adventure.
CEOs
■
Kasper Rorsted is joining Adidas (say it with
us: “ah-dee-dah”) as CEO. For eight years
he has run Henkel, where Hans Van Bylen was
promoted to take his place.
■
Rob Sarlls joined Wyandot Snacks as CEO.
He was at Sanfilippo & Son, the nut company.
■ Alan Ennis joined Glansaol, a beauty
company, as CEO. He was at Revlon.
■ Chris Baldwin joined BJ’s Wholesale Club
as COO and was quickly promoted to
CEO. We care because of his earlier work
at Nabisco/Kraft, Hershey, and P&G.
■
Dave Ritterbush is joining Popchips as CEO.
He was at Premier Nutrition, Red Bull, and
Dreyer’s Grand.
■
Doug MacFarlane joined Voortman Cookies
as CEO. He was at Clorox, Maple Leaf Foods,
Pillsbury, Nestlé, and Quaker Oats.
■
Sam Rovit joined CTI Foods as CEO. He was
running the Oscar Mayer division for Kraft,
and he was at Swift and Bain earlier.
■
■
Paul Wagstaff is becoming the CEO of
newly formed Eagle Family Foods. He ran a
big part of Smucker, where he is part of the
family that owns the company.
■
Wendy Clark is joining DDB Worldwide as
CEO of the North American business. She
was at Coca-Cola.
■ Tim McMeekan joined LORAC Cosmetics as
CEO. He was at Kenra.
■
Dave Manly (love that name!) joined
CannaKorp as CEO after roles at Keurig
and P&G. They make the CannaCloud for
vaporizing marijuana. Or so we’re told.
■
Andy England is joining National
CineMedia, the provider of pre-movie ads,
as CEO. He was at MillerCoors, Hershey,
Nabisco, and Cadbury Schweppes.
■
Diane Dietz is joining Rodan + Fields, the
skincare company, as CEO. She was at
Safeway, preceded by 20 years at P&G.
■
Jill Beraud joined Ippolita, the jewelry
maker, as CEO. Her CPG work includes
Living Proof, PepsiCo, and P&G.
Scott Smith joined Pretzels Inc. as CEO.
They are the largest maker of, well, pretzels.
He was at Spartan Foods and Shearer’s Foods.
A couple of moves failed to utilize a
highly-skilled executive recruiter. Or
our competitors:
■
■
Giannella Alvarez joined Harmless Harvest,
a coconut water company, as CEO. She was
at Del Monte, Barilla, Coca-Cola, KimberlyClark, and P&G.
■
TJ McIntyre joined Bobo’s Oat Bars as CEO.
He was at Boulder Brands.
McCormick is promoting Lawrence Kurzius
to CEO as Alan Wilson steps up to chairman.
Kurzius was the president.
■
Smithfield promoted Ken Sullivan to CEO
as Larry Pope retires. Sullivan had been the
COO and the CFO.
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People News
Continued.
Presidents and GMs
■ Carolyn Hanigan is joining Reynolds
American as president of RAI Innovation,
a new subsidiary. She was at Swander
Pace Capital, Merrick Pet Care, Mars, and
Dreyer’s Grand.
■
Meanwhile, Hormel promoted Steve Lykken
to president of their Applegate subsidiary.
He had been the COO.
■
Newell Rubbermaid is promoting Joe Arcuri
to a newly-created COO role. He was running
their Home Solutions group.
■
Steve Booker is joining AdvancePierre Foods
as president of retail. He was at ConAgra.
■ Coca-Cola named Hendrik Steckhan as
president of the US. Most recently he ran
North American noncarbonated beverages.
■
■
Devin Cole is joining Keystone Foods as US
president. He was at Tyson.
Other moves failed to support the vital
headhunter sector of our economy:
■ Carpet maker Interface promoted Jay
Gould from EVP to president. His CPG
work includes Coca-Cola, Pepperidge Farm,
and Newell.
■ Hormel named James Snee as president and
COO. He has been there 26 years, most
recently running international.
Sales and Marketing
■
Peter Kaye joined Share Our Strength, an
anti-hunger organization, as CMO. His
CPG experience includes Coca-Cola, Nestlé,
Diageo, and Dannon.
Smucker named Barry Dunaway as president
of their Big Heart Pet business unit. Dave
West will step up to a board role.
■ Sun Products named Ed Vlacich as president
of national brands and Scott Almquist as
president of retailer brands. They continue
to run marketing and sales, respectively.
■
WhiteWave promoted Blaine McPeak to
COO and Kevin Yost to president of the
US business.
■
James Moorhead joined Metromile, a startup selling car insurance by the mile, as
CMO. He was at Dish Network and P&G.
■
Sharon Fox joined toy maker Melissa &
Doug as CMO. She was at Ralph Lauren,
Quidsi, Unilever, and Kraft.
■ Clive Sirkin is joining Kellogg as chief
growth officer. He was the CMO at
Kimberly-Clark.
■
■ Joe Tripodi is joining Subway as CMO. He
was the CMO of Coca-Cola most recently.
■
■
Catherine Balsam-Schwaber joined Mattel
as chief content officer. She was at
NBCUniversal and other media companies.
■
Meanwhile, Juliana Chugg joined Mattel
as global core brands officer. She was at
General Mills.
■ Nancy Zwiers joined Spin Master as CMO.
She has run a consultancy for years, but
earlier she was at Mattel, Heinz, and P&G.
Dennis Curran joined GSK Consumer
Healthcare as chief customer officer for the
US. He was at P&G for 29 years.
Paul Callahan joined R&B Foods, makers of
Ragu and Bertolli pasta sauce, as SVP of
sales. He was at Kraft for 25 years.
■ Mark Mortimer joined Beyond Meat as chief
commercial officer. He was at Annie’s,
ConAgra, Del Monte, and Clorox.
■ Mark Sapir is joining Stella & Chewy’s as
CMO. He was at Merrick Pet Care, Topps,
Atkins, and Kraft/Nabisco.
Continued
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People News
Sales and Marketing
continued
Yada yada about promotions from within:
■
■
Rob Gehring is joining Hershey as global
chief sales officer. He was at Coca-Cola.
■
Denny Belcastro joined Kimberly-Clark
as the VP of industry and customer
collaboration. He was at Hillshire Brands,
the GMA, and Kraft.
Pinnacle Foods named Mike Barkley to their
newly-created CMO role … in addition to
running one of their business units.
■
Coca-Cola named Stuart Kronauge and Ivan
Pollard as co-heads of US marketing.
■
Mondelez named Mark Clouse as chief
commercial officer and Tim Cofer as chief
growth officer.
Other Functions
■
■ Richard Gros joined Mattel as chief HR
officer. His background includes many
years at PepsiCo.
■ Candace Medina is joining Hyatt as VP of
global communications. She brings CPG
experience from nine years at PepsiCo.
■
■
Greg Kryder joined Great Wolf Resorts as
CFO. He was at Diageo.
Courtney Hagen joined LVMH as SVP of HR
for North America. She was at PepsiCo and
one of those big faceless search firms.
Chris Kempczinski joined McDonald’s as
EVP of strategy. He is a CPG vet from Kraft,
PepsiCo, and P&G.
■
John Vandemore joined Mattel as CFO of
global brands and commercial, reporting
to the corporate CFO. His background
includes Walt Disney and AlixPartners.
■
■
■
Dave Marberger joined Prestige Brands as
CFO. He was at Godiva, Tasty Baking, and
Campbell Soup.
■
Heine Dalsgaard is joining Carlsberg as
CFO. He is new to the CPG world.
Quincy Troupe is joining Boston Beer as SVP
of supply chain, and Frank Smalla is joining
as CFO. Troupe was at Campbell Soup and
Mars; Smalla was at Kraft.
Andraea Dawson-Shepherd joined Coty as
SVP of corporate affairs. She was at
Carlsberg, Reckitt Benckiser, and Cadbury
Schweppes.
Enough with the internal moves!
■ Dan Hogan joined eBags as CFO and
COO. He has worked at Coleman, EastonBell, World Kitchen, and Georgia-Pacific.
■
Board of Directors
■ Mike Beebe is joining Tyson’s board. He
was the governor of Arkansas.
■
■
Oprah Winfrey joined the board of Weight
Watchers. When she bought a 10% stake,
Diageo North America named Jakob Ripshtein
as CFO. He remains president of their
Canadian business.
the stock doubled. Perfect turnaround plan!
Mark Jung is joining the Pinnacle Foods
board. He has worked in several companies
in the interactive space.
■ Sandi Peterson is joining Microsoft’s board.
She is a group chairman at J&J.
■ Marc Gibeley is joining Invacare’s board.
He runs a Roche division after a CPG start.
■ Irene Chang Britt is joining the board of
Men’s Wearhouse. She was most recently at
Campbell Soup.
■ Christiana Shi joined the Mondelez board.
She runs stores and e-commerce at Nike.
Continued
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People News
Continued.
Board of Directors
continued
■ Anne Gates joined Kroger’s board. She is
president of MGA Entertainment, the toy
company.
■ Kris Malkoski joined the Trustmark
Insurance board. She is the president of
World Kitchen.
■
Lucien Alziari joined the board of Clarks,
the UK-based shoe company. He leads HR
at Maersk, but we remember his good old
days at Avon and PepsiCo.
■
Giannella Alvarez joined the board of
Ruth’s Hospitality Group, the restaurant
company. As mentioned, she is the CEO of
Harmless Harvest.
Obituaries
Marketing &
Strategy
The best offense is a good idea.
■ Dick Maugg died at 83. He played the
silent Ed Jaymes in E&J Gallo’s iconic
campaign for Bartles & Jaymes wine coolers.
Thank you for your support.
■
■ The FDA approved eight new “snus”
smokeless tobacco products from Swedish
Match. It is the first time they have said a
tobacco product will not significantly
harm the population’s health.
■ Speaking of the big game, a
big winner is Death Wish Coffee.
The company has only 12
employees, but Intuit is
airing their ad in the game.
Check out the world’s highest-caffeine
coffee … it ships in a tiny coffin.
■
Kimberly-Clark has launched five skincare
SKUs of their iconic Kleenex brand. You can
only buy them online.
■
P&G is moving most of its North
American media planning account from
Publicis to Omnicom. That’s a big deal,
since they spent $2.7 b-b-billion last year.
■
Some 30 companies will add the GMA’s
Smart Label scannable code to packages by
2017, giving consumers more detailed
ingredient information. But you must know
how to use QR codes, so we’re out.
■ Ad Showcase 50 airs on February 7 … with
some football in between. CPG brands
paying the $5 million price include Axe,
Bud Light, Budweiser, Butterfinger,
Coca-Cola, Colgate, Doritos, Heinz,
Mountain Dew, Persil, Pepsi, Skittles,
and Snickers.
Skip Yowell died at 69. He co-founded
JanSport, a leading backpack company that
is now owned by VF Corporation.
■
Mattel announced lots of new Barbie dolls.
There will be three body types, seven skin
tones, 22 eye colors, and 24 hairstyles. It is
part of halting a long-term sales decline.
■
PepsiCo will open Kola House, a New York
restaurant dedicated to the nut that is the
foundation of colas. You can judge whether
the impact justifies the money and effort.
■
AB InBev signed a $1.4 billion deal for Bud
Light to remain the NFL’s official beer
through 2022. They will be the first sponsor
to use game footage in digital marketing.
■ When Coty gets P&G’s beauty business, it
will be without the $500 million Dolce &
Gabbana fragrance brand. The owners of
the license want a different approach.
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Free Thoughts
Miscellaneous meanderings and
meaningless musings.
■
Most of us use easy-to-guess passwords for
websites. In fact, the top two choices are
“123456” and “password”. Luckily ours is
hack-proof: “StudRecruiter”.
■ Final numbers aren’t in yet, but PE firms
were expected to raise almost half a trillion
dollars in 2015. That would be the highest
level since 2008.
■
With all the coaching changes after the
NFL season, we are reminded of the power
of the hyphen. Just consider the difference
between resigning and re-signing.
■ Everyone observed New Year’s Day and
Martin Luther King Day, but we hope
you also observed the other big January
holidays: Dress Up Your Pet Day (14th),
National Popcorn Day (19th), Beer Can
Appreciation Day (24th), National
Cornchip Day (29th), and the everpopular National Nothing Day (16th).
■
This issue’s vocabulary lesson is the word
“insuperable”, or incapable of being solved.
As an example in context, Herbert Mines is
great at seemingly insuperable searches.
■
We just saw another study showing
coffee’s ability to improve brain function. If so,
we are well on our way to genius status.
adjective
(of a difficulty or obstacle) impossible to overcome.
“Herbert Mines is great at seemingly insuperable searches.”
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