Vertex Best of Show - Global Retail Brands

Transcription

MARCH 2015 / ISSUE one
Global Retail Brands
Vertex Best of Show
The Danger of Vendor Allowances | Managing Private Labels
Driving Impulse Purchases
www.globalretailmag.com
www.vertexawards.org
VIEWPOINT /
I
I seldom have difficulty coming up with a topic or two for this
column. There’s always something of inspiration in the issue or the
industry at large that peaks my interest. This issue is certainly no
exception.
So why am I having such a difficult time writing this?
The problem is that I feel an obligation to write about something
that is not directly related to this industry or this issue. But it is
related to who we are and what we stand for. It is difficult to write
because it is a difficult subject.
The events that took the lives of the journalists at Charlie Hebdo, the shoppers at Hyper
Kacher and the Police Officer in Paris shook me to the core. The senseless and tragic loss
of life reminds me that I take far too much for granted, both the good and the not so good.
I suspect we all do.
One minute someone is expressing their opinion at an editors meeting, or shopping for
their family’s dinner, and the next minute their friends and family will never see them
again. All gone in a flash. All because of a twisted, ignorant mentality and the fear of
freedom and individual expression.
The news cycle has moved beyond this tragic episode and perhaps it would be easier if
we all did as well. But I can’t. Or rather, I won’t.
In honor of those who lost their lives for simply expressing their opinion, doing their job,
or shopping for their family…
4 global retail brands / march 2015
contents
Global Retail Brands / March 2015 / Volume 3 / Number 1
66
Departments
Columns
Viewpoint / 4
Vasco Brinca / 57
The Challenge of Choice
Contributors / 10
Trade Fair Calendar / 12
Notable – Research,
Products, News / 14
Global Trade Fairs / 66
Advertiser’s Index /
Next Issue Highlights / 70
Features
Cover Story / 23
Vertex Retail Brand Award Winners
Retail Feature / 54
The Danger of Vendor Allowances
Jesse Moen / 58
Building a Superior Artwork
Process
Koen de Jong / 60
Managing Private Labels
Perry Seelert / 61
The Lineage of a Brand
Irene Tortorella / 62
Junk Mail vs. Junk Food
Richard Kohn / 63
Let’s Try: Winning New Business
23
Jean-Pierre Lacroix / 64
Driving Impulse Purcahases
14
6 global retail brands / MARCH 2015
LIKE THE GREAT
MASTERPIECES
OF ART, PLMA’S
“WORLD OF
PRIVATE LABEL”
IS UNIQUE
AMSTERDAM
19-20 May 2015
To exhibit or attend, contact PLMA today.
Telephone +31 20 5753032 or email
[email protected]. For more information,
visit www.plmainternational.com.
MARCH 2015 / Volume 3 / Number 1
Phillip Russo
Editor / Publisher
[email protected]
Jacco van Laar
European Director
[email protected]
Let innovations breathe new life
into private label brands
31st March 1st April 2015
Paris - Porte de Versailles - Hall 3
Charyliz Rodriguez
Creative Director
[email protected]
Andrew Quinn
Digital Director
[email protected]
Inta Lasmane
Business Development Director
[email protected]
ContributorS
Vasco Brinca
Daymon Worldwide
[email protected]
Crea
your te
acces free
s bad
ge
Koen de Jong
International Private Label Consult
[email protected]
Christopher Durham
My Private Brand
[email protected]
Sabine Geissler
GreenTaste.it
[email protected]
Richard Kohn
[email protected]
Jean-Pierre Lacroix
Shakatoni Lacroix
[email protected]
David Merrefield
DRM Initiatives
[email protected]
Jesse Moen
SGK
[email protected]
Perry Seelert
Emerge
[email protected]
Irene Tortorella
[email protected]
Published and all rights reserved by:
Kent Media Group, LLC.
Phillip Russo, Principal
240 Central Park South, Suite 9G
New York, NY 10019 USA
Tel. +1 917 743 6711
All rights reserved under the Library of Congress. No part of this publication may be
reproduced or transmitted in any form or by any means, electronic or mechanical,
including photocopying and recording, or by any information storage or retrieval system,
except as may be expressly permitted in writing by the copyright owner. Opinions expressed
by contributors are theirs alone and do not necessarily reflect those of the publisher.
Global Retail Brands is published 5 times a year.
Editorial Submissions
[email protected]
Advertising Inquiries – EUROPE
[email protected]
Advertising Inquiries – AFRICA, AMERICAS, ASIA, Australia, MIDDLE EAST
[email protected], [email protected]
Subscription Information
[email protected]
Massimo Zanetti Beverage, through its
dedication to vertical integration, provides
the highest quality coffee and beverage
products to retailers and grocers around
the world. With four generations of global
coffee manufacture and distribution
VERTICAL
INTEGRATION
HAS ITS PERKS.
experience, we are wholly invested in
the product that will give your store
brand a significant advantage and your
bottom line a significant boost.
GROW
PROCESS
TRADE
ROAST
PACKAGE
DISTRIBUTE
BREW
To discover how Massimo Zanetti Beverage
can positively shape your beverage experience, from our coffee farms to your branded
coffee program, visit mzb-usa.com today.
2012
Award of Excellence
Partnership, Grocery Program
2013
Award of Excellence
Partnership, Quality Assurance Program
CONTACT SUSAN LAMBERT, BUSINESS DEVELOPMENT MANAGER – CORPORATE BRANDS
[email protected] | 757.215.7369 | www.mzb-usa.com
contributors /
Vasco Brinca
Daymon Worldwide’s
Senior Vice President
of International,
leads expansion and
management of private
brand operations in
Europe, Africa, Middle East
and Latin/South America.
He joined Daymon in
2006 after 10 years with
the Jerónimo Martins
Group, both in Portugal
and Poland. Vasco has
vast experience in retail,
including operations,
category management,
sourcing, as well as
strategy & execution.
richard kohn
Richard is an expert in
global marketing and an
acknowledged strategic
brand leader. He’s held
senior management
positions in A brand
CPG companies and led
international marketing
and strategy teams across
CPG, consumer durable
and business services
companies.
[email protected]
Jean-Pierre Lacroix
As president of branding
and design agency
Shikatani Lacroix, JeanPierre Lacroix specialises in
brand strategy for corporate,
packaging and retail clients.
He has spent the past 35
years helping organisations
see opportunities in
the challenges versus
challenges in the
opportunity. He champions
the roles design and
branding play in building
connections by studying
purchase behaviours to
help brands connect with
consumers.
JESSE MOEN
Brings 10+ years of
expertise in brand
development/deployment
and in the practice of
continuous improvement
and is the driving force
behind the success of
the SGK Continuous
Improvement Practice
(CIP). Jesse earned
a MA from the University
of California, Berkeley
and holds a Lean/Six
Sigma Black Belt from the
University of St. Thomas.
www.sgkinc.com;
[email protected]
DAVID MERREFIELD
David is principal of
DRM Initiatives, Inc., a
consulting group that
focuses on food retailing
and related issues. His
experience includes
many years as the top
editor at “Supermarket
News,” the largest trade
publication of its type in
the United States. He was
corporate vice president
of the publication’s parent
company. He is based in
New York City.
Koen De Jong
Founding director of
International Private
Label Consult, a boutique
consulting firm specialized
in strategic consult and
project management
support to manufacturers
and retailers. With
offices in France, The
Netherlands, Germany
and Spain IPLC helps its
clients with a pragmatic
and action oriented
approach.
Christopher Durham
Founder, My Private Brand
/Vice President Retail
Brands, Theory House
Christopher Durham is
a author, consultant,
strategist and retailer
with close to 20 years
of real-world retail and
corporate experience
creating, launching and
building numerous billion
dollar Private Brands. My
Private Brand, seeks to
drive the changing Private
Brand landscape, focusing
on the emerging art and
science of Private Brand
management.
Sabine Geissler
Has resided in Bologna,
Italy, nearly twenty years.
She is now a member
of the Council Chamber
of Commerce Bologna
and has been FNAARC
Bologna VP since 2008.
She is the founding owner
of: GreenTaste.it, an
international sales and
consultancy for the
agri-food industry with
particular attention to
organic, all-natural and
sustainable products.
Perry Seelert
A retail branding and
marketing expert, with a
passion for challenging
conventional strategy
and truths. Perry is
the Strategic Partner
and Co-founder of
Emerge, a strategic
marketing consultancy
dedicated to helping
Retailers, Manufacturers
and Services grow
exponentially and
differentiate with
purpose. You can
contact Perry at perry@
emergefromthepack.com
Irene Tortorella
Born on the tip of the
Italian boot in 1985,
Irene spent most of
her life trying to avoid
conversations about the
international stereotype
of Italian mafia, whether
she was in Korea, Japan,
Serbia, Poland or an Albert
Heijn in Amsterdam. She
is now a Korean language
speaking flight attendant
for British Airways who
cultivates an ill-concealed
passion for social travel
and creative marketing
strategies.
an event by:
www.bolognaﬁere.it
FOCUSING
ON PRIVATE
LABEL
ALLIANCE
057/2014
MRCX14E
LEADER IN THE MEDITERRANEAN AREA
MARCA 2015 SPONSORSHIP
With the Patronage of
Show Office:
event Calendar /
COSMOPACK/COSMOPROF WORLDWIDE BOLOGNA
March
March
APRIL
3–6
FOODEX Japan
Makuhari Messe
Tokyo, Japan
www3.jma.or.jp/foodex/en/
19 – 23
Cosmopack/Cosmoprof
Worldwide Bologna
(page 69)
Bologna Fair District
Bologna, Italy
www.cosmoprof.com.
28-30
SIAL Canada (page 68)
Direct Energy Center
Toronto, Canada
www.sialcanada.com
11 – 12
Wabel Frozen Summit
(page 68)
Hilton Charles de Gaulle
Airport
Paris, France
www.wabel.com
13-18
Internorga
Hamburg Messe
Hamburg, Germany
www.internorga.com
19 – 22
PLMA’s Annual Meeting
and Leadership Conference
Hyatt Regency Scottsdale at
Gainey Ranch
Scottsdale, AZ
www.plma.com
May
25 – 26
IPLS
Crocus Expo Center
Moscow, Russia
www.ipls-russia.ru/en/
31 – 1 April
MDD Expo (page 67)
Paris Porte de Versailles
Paris, France
www.mdd-expo.com
April
21-23
Seafood Expo Global
Brussels, Belgium
www.euroseafood.com
19-20
PLMA’s World of Private
Label (page 66)
RAI Amsterdam
Amsterdam, Netherlands
www.plmainternational.com
June
29-30
PLME (page 67)
Targi Kielce Exhibition Center
Kielce, Poland
www.targikielce.pl.
25-26
Indian Retail Congress
Hotel Hyatt Regency Gurgaon
New Delhi, India
www.indianretailer.com/
congress2015/
PLME
MARCH 2015
19TH-22NDCOSMOPACK
BOLOGNA (ITALY)
FAIR
DISTRICT
w w w . c o s m o p ro f . c o m
Organiser - SoGeCos s.p.a. - Milan - Italy - ph. +39.02.796.420
fax +39.02.795.036 - [email protected] - company of
in cooperation with
NOTEable /
Cisco Research Reveals
Hyper-Relevance as Key to
Winning the Digital Consumer
Retailers who offer Internet of Everything experiences
can capture a 15.6 percent profit improvement >>
Cisco released survey findings from 1,240 retail consumers in the U.S. and U.K. that uncover their preferences for
Internet of Everything (IoE) enabled retail experiences and
provides insight to help retailers capture the new digital consumer through IoE innovations fueled by mobility,
video, and analytics. The research is part of a global study
that when fully completed will survey 6,000 consumers in
10 countries.
Customers Want a Convenient, Contextually
Relevant Shopping Experience >>
Most shoppers want innovations that improve convenience
and efficiency, extending beyond personalization into
hyper-relevance. Hyper-relevance delivers value—such
as greater savings, efficiency, or engagement—in real
time throughout the shopping lifecycle, using analytics to
determine the experience that best suits the customer’s
context (where he is, what she is looking to accomplish in
that moment). Analytics helps retailers track in-store patterns and use existing video technology to determine, for
example, where shoppers are spending more time in the
store and which shelves need restocking, information that
can immediately be used to improve shoppers’ experience
and drive better store performance.
When asked to identify primary areas for in store retail
improvements, 39 percent of consumers identified the
process of selecting and purchasing goods - for example,
having the products they want in stock and an efficient
checkout process. By contrast, 13 percent chose a more
personalized shopping experience.
Digital Consumers Exhibit Strong Interest
in IoE-Enabled Experiences, Creating Savings,
Efficiency and Engagement >>
To help provide guidance to retailers on where and how to
make their strategic innovation investments, Cisco tested
19 different shopping concepts with consumers in its
survey. Together, these provide a snapshot of consumer receptivity to new IoE-enabled innovations in the shopping
experience. These use cases are at the heart of the IoE
value that is up for grabs for retailers in terms of revenue
uplift and employee productivity. For an illustrative $20
billion retailer, these use cases drive a total gross annual
value opportunity of $312 million and a 15.6 percent improvement in profitability.
“If a retailer thinks that at some point this is going to slow
down, and that they have time to wait and then jump
By Implementing Key IoE-Enabled Solutions, Retailers Can
Generate Potential EBIT* Gains of ~15.6%**
For an illustrative omnichannel
retailer…
$142M
$20 billion revenue
7% EBIT margin
+ $170M
Gross annual
value opportunity
113 million square feet
of retail selling space
OpEx reduction
= $312M
- 
900 stores
120,000+ employees
Revenue
$93M
Annual enabling costs
= $219M
Net annual
EBIT opportunity
*Earnings Before Interest and Taxes
**Based on 19 IoE concepts featured in IoE Retail Survey, January 2015
© 2014
2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Public
21
Technology and Evolving Consumer Behaviors Are Reshaping the
Retail Landscape
Mobile
Social
Mobile commerce grew 47% in Q2
2014, far outpacing e-commerce
(10%) and total retail (3%)
94% of U.S. omnichannel
retailers had a company
Facebook page as of Q1 2014
[comScore, 2014]
[the e-tailing group, 2014]
Apps
Big Data
64% of U.S. shoppers use
a mobile retail app while shopping
at least once a week
88% of retailers foresee
significant growth of data
captured by their networks
[Cisco Consulting Services, 2015]
[Cisco Consulting Services, 2014]
© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Public
IoE-Enabled Retail Solutions Offer Rich, Context-Aware Shopping
Experiences
Illustrative Examples
© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Public
in, they’re wrong. Because these rates of adoption — the
speed at which technology is moving — is becoming more
exponential and will continue to do so.” Doug Stephens,
Founder, Retail Prophet
For more information [email protected] GRB
12
4
NOW AVAILABLE ON AMAZON.COM
The groundbreaking first book from My Private Brand founder
Christopher Durham. The book features private brand strategy and insight with
profiles of the 52 best retail owned brands in the United States.
NOTEable /
Will You Survive
Retail Consolidation?
According to a story in My Private Brand (www.mypbrand.com), “While retail
mergers and acquisitions are not a new phenomenon, the speed and scope
at which they occur seems to be picking up steam.
McCormick
to Buy Italian
Spice Maker
Drogheria &
Alimentari
The Baltimore Business Journal’s
James Briggs reported that,
“McCormick & Co. Inc. is adding some
Italian flavor to its portfolio of spices.
The Sparks-based company on
Friday announced it has agreed
to acquire Drogheria & Alimentari
for $97 million. The deal, which is
expected to close in May, will expand
McCormick’s presence in Europe.
Drogheria & Alimentari is a private
company that manufactures spices
in Florence, Italy, and has annual
sales of $57 million. It does 80
percent of its business in Italy and
generates 20 percent of its sales
through exports to 60 countries. The
company controls about one-third of
the spice and seasoning market in
Italy, McCormick CEO Alan Wilson
(shown above) said in a statement.
“We anticipate strong growth for
these premium products, particularly
in the U.S. and key international
markets where consumers are
seeking unique and authentic ethnic
flavors,” Wilson said.
The deal comes as McCormick has
been growing its international
sales. McCormick’s net income in
2014 rose 12.6 percent to $437.9
million thanks in part to to strong
sales in Europe, the Middle East,
Africa and especially China. GRB
According to a PwC’s U.S. Retail and Consumer Deals Insights 2014 report,
the volume of acquisitions was up 52%, with the value of these transactions
up 104%. Consider the major purchases, acquisitions, take-overs or closings
that occurred in the past years: Albertsons and Safeway, Kroger and Harris
Teeter, Office Depot and Office Max just to name a few. And with the recent
acquisition of Family Dollar by Dollar Tree and the announcement of Staples
purchasing Office Depot Max, 2015 is promising to be another year of shifting
retail landscapes”.
Retail consolidations are changing the face of today’s competitive retail
landscape, and there is no sign of letting up. With these challenges also come
opportunities.
For the complete story, visit www.myprbrand.com GRB
UL ClearView® Introduced
According to a company press release, “Information & Insights a division of the
global safety science leader UL introduced UL ClearView® an online platform
designed to help dietary supplement manufacturers drive the recognition of their
quality assurance programs to facilitate faster, easier and more informed buyer
acceptance of their dietary supplement
products.
This online proprietary platform:
Emphasizes regulatory compliance of finished products; Highlights quality
assurance programs to prospective clients and Showcases compliance to retailer
programs.
The global economy and increased overseas sourcing has created complex and
opaque supply chains just at a time when heightened regulatory and media
attention and consumer awareness are holding dietary supplement producers to
higher standards. UL ClearView’s supply chain validation and independent audits
help to mitigate the complex realities of today’s volatile world and safeguard
laborers and the public.
“Voluntary self-regulation and visibility into a quality assurance program can help
mitigate oversight and ultimately increase consumer confidence “ says Michael
O’Hara, General Manager of Global Nutraceuticals for UL. “UL ClearView is designed
to help drive transparency in dietary supplement programs by providing a window
into product and supplier compliance to regulatory and retailer requirements all
in one place, online. Through this single source of information UL ClearView helps
facilitate faster data exchange to open lines of communication while enabling
commerce.” GRB
NOTEable /
The Best Private Brand
Packaging Company
You’ve Never Heard of?
Your Premium Brand
Deserves a Better
Cup of Coffee
Jupiter Prestige Group (JPG) is a global leader in developing and producing private brand packaging for both
food and general merchandise.
Massimo Zanetti Beverage knows how to please the
most discerning coffee consumer, so it’s no wonder
that their latest offering, The Filter Cup™, is the preferred
single serve packaging*. The Filter Cup™ features an
open-filter design so you can enjoy more coffee aroma and
richer flavor. And it’s made with 37% less plastic than the
traditional K-CUP®**, making it the smarter choice for our
environment. Quite simply, it’s A Better Cup by Design™ that
delivers quality coffee cup after cup.
They provide original brand design, structural design,
packaging graphics and photography as well as manage
digital artwork production, print processes while color
managing brands for some of the world’s largest retailers and brands.
They become their client’s “Brand Champion,” making
certain that their brand not only stands out on the shelf,
but is also consistent across program rollouts.
They tailor their services to each customer to ensure
consistency, streamline processes and save time and
money.
The result is outstanding brand quality and continuity
no matter where in the world the package is produced.
Clients range from the largest retailer in the world to
small start up companies. No matter the customer,
their goal is always the same - to provide the highest
quality brand standards in packaging so customers can
focus on their core business.
One of their customers recently told them that they
thought our JPG was “the best private brand packaging company that they’d never heard of.” They’d like
to change that. You can visit them at jpgglobal.net to
learn more. GRB
Since its
introduction,
the Filter Cup™
has become
the consumerpreferred package and, in a recent study, was chosen 3:1
over traditional K-CUPS®**. Consumers have expressed an
affinity for the eco-friendly packaging and the resealable
foil bag which stores, preserves and guarantees freshness
of the coffee.* This new single serve format is leading the
growth in this dynamic category, up 82% in year over year
dollar performance.***
Massimo Zanetti Beverage offers the Filter Cup™ single serve
packaging in a wide variety of premium flavored, origin and
certified single serve coffees.
Contact Susan Lambert at 757-215-7369 or email slambert@
mzb-usa.com | mzb-usa.com GRB
*The Fryman Group in Home Study of Current K-CUP® users, October 2013.
**Keurig is a trademark of Keurig Green Mountain, Inc. Massimo Zanetti
Beverage Filter Cups™ are not affiliated with Keurig Green Mountain, Inc.
***Nielsen US Food – Latest 52 weeks ending 1/17/2015.
FROM BACK OF THE NAPKIN
TO FRONT OF THE AISLE
You have to start with a great product—and no one knows that better
than Daymon Worldwide, a leader in branding, sourcing and cultivating
relationships since the 1970s.
But what makes it to your shelf is the culmination of a finely-constructed
process. To be really successful in this environment, you need the kind of
strategy, insight, consumer engagement—brand building—that Daymon
offers under one company. Tools and relationships that we’ve developed over
decades, building brands for retailers across continents.
You need the power of Daymon’s unique combination of five distinct companies,
working for you, on your brand. Even if all you bring us is your napkin sketch.
YOUR GLOBAL RETAIL PARTNER.
PRIVATE BRAND DEVELOPMENT // STRATEGY & BRANDING // SOURCING & LOGISTICS
RETAIL SERVICES // CONSUMER EXPERIENCE MARKETING
6 continents
50 countries
14 channels of trade
3,000,000 consumer events
www.daymon.com
1 Daymon
NOTEable /
Book Preview
During the private label show in
Paris: MDD Expo, Koen de Jong will
present his new book: Managing
Private Labels, sharing knowledge
from research and practice.
Managing Private Labels is likely to
be the most comprehensive publication on retailer brands published to
date. Many years of working in the
international private label industry
as well as extensive research lay
at the basis of this book. It shares
practical knowledge and experience
that will provide a deeper understanding of the complexity of running a private label business in an
extremely competitive market.
Special attention is given to the
discounter retail format and recommendations for mainstream retailers
to counterbalance this phenomenon. Other topics include taking
steps to improve supplier-retailer
relations, the role of packaging
design and private label in emerging
markets.
Hard cover book is full color, 205
pages including over 180 photos;
only available via:
www.iplc-europe.com
In our next issue, we’ll cover the
book more extensively. GRB
More than
37,000 trade
visitors from
141 countries
Visited ISM 2015
Around 37,000 trade visitors, an increase of 6% over 2014, came to experience
and learn at the 45th gathering of the world’s largest and most important trade fair
for sweets and snacks. Foreign visitors remained stable at 67%.
“This year the ISM has once again made it clear how important the fair is for the
confectionary trade both nationally and internationally,” commented Katharina
C Hamma, the managing director of Koelnmesse GmbH, referring to the positive
results of the ISM 2015. This is because the fair was also able to record some
modest growth in the number of exhibitors.
According to exhibitors, the quality of the trade guests at the ISM was consistently
high. This is also confirmed by the visitor questionnaires as well as registration
details. Top purchasers again came from abroad from large trading companies and
importers. German trade was also strongly represented once again. As one supplier
confirmed: “at ISM in Cologne we reach our important trading partners, whether
from Germany or one of our many export markets”.
As ever, there was demand for innovative products and marketing concepts, which
the branch once again had on offer for its purchasers. The diverse range of offers
at the ISM 2015 was underscored by, amongst other items, the special presentation
“New Product Showcase”, at which around 90 businesses participated.
New product segments for the themes of snacking, breakfast and coffee were on
display at the ISM for the first time. These segments were received very positively
by both exhibitors and visitors alike. “The range of offers has expanded, providing
new possibilities for presenting and purchasing,” notes one exhibitor displaying in
Cologne for the first time as part of the new product segments. “The response in
trade was resounding,” adds another supplier. “We are already planning our next
appearance at the ISM.” GRB
Record Attendance at
2015 MarcabyBologna Fiere
MarcabyBolognaFiere enjoyed record numbers at its
11th edition held at the Bologna Fiere on 14 and 15 January, with 6,886 trade visitors (+4.3% on the last edition),
and 481 exhibitors (+6%). Exhibition space was decidedly
up too, with a 9.5% increase on 2014. These figures confirm
the growing importance of MarcabyBolognaFiere as the
place where industry professionals and market leaders can
enjoy two days of exchange, business, workshops and debates, an opportunity for manufacturers to meet with the
Italian and international retail system.
“MarcabyBolognaFiere traditionally opens the BolognaFiere
season, and did so this year with great success,” - said
Duccio Campagnoli, BolognaFiere Chairman (Shown above
at the International Buyer’s Lounge, along with Patrick
Capriati, Promotion Manager, Italian Trade Agency, Chicago Office) – “especially with an increase in the presence
of international buyers of major retailers from USA, Russia,
Germany and Canada.
Of particular note were the 564 B2B meetings between
exhibitors and highly qualified foreign Buyers. Large retailers included Doyle Importation Inc. (Canada), Seventh
Continent Jsc (Russia’s fifth largest chain store), X 5 Retail
Group, Azbuka Vkusa, Bahetle, Norman-viviat, H-E-B,
Raley’s and Daymon (USA),, Müller Moers GmbH&Co.KG
and Aktiv Markt (Germany).
The 11th Private Label Report on the Italian retail market,
developed by Adem Lab-Parma University, was presented
by Guido Cristini, the scientific coordinator of the Private
Label Observatory for the Italian market. Gianmaria Marzoli, Vice-President of IRI, the world-class provider of massmarket information also gave a presentation.
The report underlined how in Europe private label products
had a 30-point price advantage over industry brands and
that Private Label market share was stable at around 18%.
Moreover, private label products had bucked the trend of
overall decline, with premium products growing 7.1% and
organic products 8.5% in value. The product categories
continued on page 65 >>
www.globalretailmag.com 21
NOTEable /
Protection of Food Specialties:
The Different European Approach
It is well known that the system
chosen by Europe to protect its
most significant and valuable food
specialties is based on protection
of Geographical Indications (GIs):
that is, every quality production,
which complies with given criteria
such as strict quality standards,
territorial manufacturing and a
longstanding tradition is recorded
as a PDO (Protected Denomination of Origin) or a PGI (Protected
Geographical Indication).
Such a protection is given not to a
single brand, but to the product itself
(Parmigiano Reggiano, Prosciutto di Parma, Aceto
Balsamico di Modena or Camembert), and it protects all
manufacturers of that given product.
Protection is very broad, and it shields from imitations,
counterfeiting and evocation: this means, as an example,
that in Europe no producer can manufacture a cheese
called ‘Parmesan’ since it reminds ‘Parmigiano Reggiano’
in the consumers’ mind.
As a reward for such a protection, manufacturers have
to maintain and certify their products to stay within high
quality standards, sourcing ingredients in restricted areas,
using traditional manufacturing systems, and submitting
all their production to very strict checks by Control Authorities: a costly system, aimed to guarantee that GIs always
guarantee a superior quality.
All GI products must carry the words ‘DOP’ (PDO) or ‘IGP’
(PGI) on their packaging, and more and more of them
are also carrying the flashy European logos (yellow/red for
PDOs, yellow/blue for PGIs, shown above), so now consumers can more
easily identify them
on shelves.
The US intellectual
property system is
somewhat different, and while
strong protection is
given to brands, a
much feebler, or no
protection at all is
offered to GIs: try to imagine what kind of strong protection is enjoyed by some famous names, such as ‘Coke’ or
‘Philadelphia’ (this last by the way being a cheese spread
with no actual ties with the town in Pennsylvania), while
there are only a few attempts to protect denominations
like ‘Idaho potatoes’ or ‘Kona coffee’ from Hawaii.
Such a difference between the European and US systems creates a different treatment of products: what in
Europe is considered a counterfeit, and insofar banned
from commerce, in the US is legitimately on market, so
some great confusion might arise. In the example made
before, a cheese called ‘Parmesan’ is in fact present on
the shelves of many US stores, and consumers can buy it,
making reference to Parmigiano Reggiano in their mind.
Many of them might not even know that the product in
their hands is not
the original one,
however they for
sure would taste
a huge difference
in a comparative
tasting.
TTIP Treaties
between the US and European Governments >>
These differences among legal systems have been noted,
and a brisk political discussion is under course, in the socalled TTIP treaties between the US and European governments: nevertheless, it is my opinion that US Supermarkets
should be increasingly aware of the superior quality offered
by GIs products: they are multi-certified, and their quality
is assured by the system,not only by manufacturers.
There is a positive trend toward private labels, and within
private labels there are some emerging trends toward a
quality segmentation: buyers should know that focusing on
PDOs and PGIs products will surely increase the quality of
their overall offer, and the image of their own brand. GRB
Cesare Mazzetti is the President of
Fondazione Qualivita, an Italian
Foundation which has been established
to sustain, support and distribute information about the GI product. Every
year, the Qualivita Atlas of Italian Food
Specialties reports about the status of
all the Italian GIs (both in wine and food
sectors), which are over 700.
Qualivita supports the GIs system at a
political level, taking part in discussions
in the highest ltalian and EU meeting
rooms
Winners edition
Brought to you by
+
T H E W INNERS A RE . . .
T
The response to this year’s Vertex Awards was overwhelming with more than
250 entries from 21 countries and 55 retailers. This year’s winners included
the first ever entrants from Asia and Africa joining a truly global list of entrants
from Angola, Australia, Brazil, Canada, China, Denmark, Hong Kong, Italy, Malaysia,
the Middle East, The Netherlands, New Zealand, Poland, Portugal, Singapore, Spain,
Taiwan, the United Kingdom and the United States.
We saw exciting growth in the New Brand,
Brand Redesign and Packaged Goods categories
as well as in the Licensed or Co-Brand,
Beverages: Alcoholic, Pet Products, Home Décor,
Entertainment and Health Care categories.
Fred Richards, Kevin Shaw, Zhou Wenjun and
Adrian Whitefoord.
Qualifying designs must have been introduced
in-store between November 2013 and November
2014. Judges scored each entry on five criteria:
design, information architecture, originality,
Take a look and you will discover outstanding
structure, and x-factor. An overall numeric score
design from all around the world. Retailers are
was then assigned to each entry. Gold, Silver and
playing to win and creating compelling customerBronze Awards were
focused brands.
awarded based on
In particular, we would
the numeric score,
like to congratulate the
as a result, there
Retailers
are
playing
to
overall “Best in Show”
are some multiple
winner Eroski and their
win and they are creating
winners at a given
agency, Supperstudio,
level.
compelling
customer
focused
brands.
both hailing from
The scoring system
Spain. Their work
was developed to reward the best Private Brand
proves that great Retail Brands are engaging,
package design in the world, not mediocrity.
entertaining and truly special. We also call your
To protect the integrity of the process, judges
attention to our Publisher’s Choice, the stunning
were not allowed to vote on work by their own
redesign of Mannings-Guardian’s Distilled Water by
agency. All voting was done online and votes were
Passionfruit, Hong Kong.
collected and tabulated independently, by VOCCII.
We would like to thank our esteemed panel of
This competition has been a labor of love. We know
design experts from around the world who took
you will find inspiration in the winners and we hope
their charge to heart and devoted their time and
to see your entry next year.
energy to selecting the best of the best:
Rick Barrack, Maggie Bean, Paula Bunny,
Thank You,
Don Childs, Maria Dubuc, Masanori Eto,
Ruth Galloway, Jean-Pierre Lacroix, Loe Limpens,
Angelo Morano, Glenn Pfiefer, Gustavo Piqueira,
Christopher Durham
Phillip Russo
Founder, My Private Brand
VP of Retail Brands Theory House
Founder, Global Retail Brands
Principal, Kent Media
B EST O F S H O W
Eroski
CATEGORY: Best of Show & B1. New Brand
RETAILER: Eroski
COUNTRY: Spain
AGENCY: Supperstudio
P U B L IS H ER ’ S
C H OI C E
Mannings Water
BEFORE
CATEGORY: B2. Redesigned Brand & G12. Beverages: Non-Alcoholic
RETAILER: Mannings-Guardian
COUNTRY: Hong Kong
AGENCY: Passionfruit Asia
As the agency built for retail, we create innovative brand strategies that identify
high-value opportunities with shoppers and address critical marketing challenges.
We power those brands with breakthrough creative, portfolio strategy, naming,
package design, in-store experiences, social media and activation platforms.
THE AGENCY BUILT FOR RETAIL
theoryhouse.com
+1 704 576 6059
vertex winners...
Eroski Childrens Cereals
CATEGORY: G9. Packaged Goods
RETAILER: Eroski
COUNTRY: Spain
Eroski ICE CREAM CONES
RETAILER: Eroski
COUNTRY: Spain
Eroski Nappies
CATEGORY: P5. Health Care
RETAILER: Eroski
COUNTRY: Spain
Eroski juices
CATEGORY: G12. Beverages: Non-Alcoholic
RETAILER: Eroski
COUNTRY: Spain
vertex winners...
HUB - Exclusively at Woolworths
CATEGORY: H17. Electronics
RETAILER: Woolworths
COUNTRY: Australia
AGENCY: Marque Brand Consultants
Easy Hear & Easy Wear
RETAILER: Hans Anders
COUNTRY: Netherlands
AGENCY: OD
Brigaderia Gelado
CATEGORY: G10. Frozen
RETAILER: Brigaderia
COUNTRY: Brazil
AGENCY: Casa Rex
Jumbo Paper Toy Chips
RETAILER: Jumbo Supermarkets
AGENCY: OD
vertex winners...
Viñas Altas - Toro Wine
CATEGORY: G11. Beverages: Alcoholic
RETAILER: El Corte Inglés
COUNTRY: Spain
Brittains Vodka
RETAILER: Fortnum & Mason
COUNTRY: United Kingdom
AGENCY: Storm Brand Design
BEFORE
Waitrose Pure
CATEGORY: B2. Redesigned Brand & P6. Body Care
RETAILER: Waitrose
AGENCY: DewGibbons + Partners
Continente 100% National Meat
CATEGORY: G8. Fresh
RETAILER: Sonae MC
COUNTRY: Portugal
AGENCY: Sonae MC’s Design Team
vertex winners...
First Class MIx Ice boxes
CATEGORY: G10. Frozen
RETAILER: Dagrofa
COUNTRY: Denmark
AGENCY: Kontrapunkt
Oink, oink
RETAILER: Young and Beautifood
COUNTRY: Spain
Brands
aren’t built
’
they’re
grown.
Put our green thumbs
to work for your brand
and watch it blossom.
From strategy to shelf, MBD is uniquely qualified
to help you realize your private label brand vision.
www.mbdesign.com
Boston | San Diego | Phoenix | China
vertex winners...
Viñas Altas Cariñena wine
COUNTRY: Spain
Created by Jamie
CATEGORY: B3. Licensed or Co-Brand
COUNTRY: Australia
Tesco Kids Tissues
RETAILER: TESCO
AGENCY: Pemberton & Whitefoord LLP
Belle body lotions
CATEGORY: P6. Body Care
RETAILER: Eroski
COUNTRY: Spain
vertex winners...
GESTUS
CATEGORY: B1. New Brand
RETAILER: Dagrofa
COUNTRY: Denmark
AGENCY: Sunrise Reklamebureau A/S
NEU
RETAILER: Foodstuffs Own Brands
COUNTRY: New Zealand
AGENCY: Brother Design Ltd
The evolution of
private label brands
Discover how we evolved packaging
and brand identity of one of the largest
private label personal care brands
in North America.
desig n i ng compel l i ng
at-pu rchase moment s
t hat con nec t i n t he
bl i n k of a n eye
www.sld.com
www.sldesignlounge.com
vertex winners...
Fresh & Easy Sriracha
RETAILER: Fresh & Easy
COUNTRY: United States
AGENCY: The Creative Pack
Refreshe ICE
RETAILER: Safeway
AGENCY: Anthem Worldwide
Pams Confectionery
RETAILER: Foodstuffs
CRYSTAL MOIST
Stop & Shop 100th
CATEGORY: B2. Redesigned Brand RETAILER: Hong Kong
COUNTRY: Mannings China (Dairy Farm)
AGENCY: Innovation Kitchen
RETAILER: Ahold USA
AGENCY: Group360
vertex winners...
Jumbo Pet Food
Gestus Fresh Juice
CATEGORY: G13. Pet Products
RETAILER: Jumbo Supermarkets
AGENCY: OD
RETAILER: Dagrofa
COUNTRY: Denmark
AGENCY: Kontrapunkt
Brava
Nina Ottosson for Petco
RETAILER: Academy Sports + Outdoors
AGENCY: Academy Packaging Design
CATEGORY: B3. Licensed or Co-Brand
RETAILER: Petco and Unleashed by Petco
AGENCY: In-house creative packaging team
Irresistibles
Life Brand
CATEGORY: B2. Redesigned RETAILER: BrandMetro, Super C, Food Basics
COUNTRY: Canada
AGENCY: St. Joseph Communications
CATEGORY: B2. Redesigned Brand
RETAILER: Shoppers Drug Mart
COUNTRY: Canada
AGENCY: Shikatani Lacroix
Archer Farms
Inspire - Exclusively
to Woolworths
CATEGORY: B2. Redesigned Brand
RETAILER: Target
AGENCY: Pearlfisher
CATEGORY: H16. Home décor
COUNTRY: Australia
vertex winners...
Kroger Cheese Snacks
Continente’s Potatoes
RETAILER: The Kroger Co.
AGENCY: The Kroger Co.
CATEGORY: G8. Fresh
RETAILER: Sonae MC
COUNTRY: Portugal
AGENCY: Sonae MC’s Design Team
7-Select Go!Yum
F&E Take & Bake Pizza
RETAILER: 7-Eleven
AGENCY: Brandimage
CATEGORY: G8. Fresh
Tesco Meats
SELECT BEVERAGES
RETAILER: Tesco
AGENCY: Pemberton & Whitefoord LLP
CATEGORY: G12. Beverages: Non-Alcoholic RETAILER: Safeway COUNTRY: United States
AGENCY: Anthem Worldwide
Meijer Mix 6 Pack
Viñas Altas rioja
RETAILER: Meijer
AGENCY: Meijer Packaging Design
COUNTRY: Spain
vertex winners...
Pams Pasta & Sauces
CANVAS
CATEGORY: G8. Fresh
RETAILER: Foodstuffs Own Brands
RETAILER: Canadian Tire COUNTRY: Canada AGENCY: Jackman Reinvents
WinCo Foods
Master Cuisine
RETAILER: WinCo Foods
AGENCY: Marketing by Design
RETAILER: Big Lots!
COUNTRY:United States
AGENCY: Big Lots! In House Design
Woolworths Essentials
Daily Chef Organic
COUNTRY: Australia
RETAILER: Sam’s Club
AGENCY: Rouge 24, Inc.
HeadRush
F&E Protein Powder
CATEGORY: H17. Electronics
RETAILER: The Source
COUNTRY: Canada
AGENCY: The Source: In-house
vertex winners...
HemisFares
Continente’s Cured Hams
CATEGORY: G8. Fresh RETAILER: Sonae MC COUNTRY: Portugal AGENCY: Sonae MC’s Design Team
MAXIMUM
Giant/Stop & Shop Pasta
CATEGORY: H15. Home Improvement RETAILER: Canadian Tire Corp.
COUNTRY: Canada
AGENCY: Perennial Inc.
RETAILER: Ahold USA COUNTRY: United States AGENCY: Group360
The Snack Artist
7-Select Holiday Popcorn
CATEGORY: B2. Redesigned Brand RETAILER: Safeway COUNTRY: United States AGENCY: Anthem Worldwide
CATEGORY: G9. Packaged Goods RETAILER: 7-Eleven COUNTRY: United States AGENCY: Brandimage
vertex winners...
Jumbo Snacks
Womo Travel Diaries
CATEGORY: G10. Frozen RETAILER: Jumbo COUNTRY: Netherlands AGENCY: OD
CATEGORY: P7. Beauty
RETAILER: Womo Srl
COUNTRY: Italy
AGENCY: CBA Italy
Cape Covelle
Moia
CATEGORY: B1. New Brand RETAILER: Topco Associates LLC COUNTRY: United States AGENCY: Topco Associates LLC
RETAILER: Eurocash
COUNTRY: Poland
AGENCY: Galileo Global Branding Group
P$$T...
WomO
RETAILER: Womo Srl
COUNTRY: Italy
AGENCY: CBA Italy
JENNY CRAIG
Good Livin’
CATEGORY: G9. Packaged Goods RETAILER: Jenny Craig COUNTRY: United States AGENCY: Brandimage
CATEGORY: G9. Packaged Goods RETAILER: Mapco COUNTRY: United States
AGENCY: Galileo Global Branding Group
La Collezione Sorbets
Raley’s frozen pizza
CATEGORY: G10. Frozen RETAILER: Metro, Super C, Food Basics COUNTRY: Canada AGENCY: St. Joseph Communications
CATEGORY: G10. Frozen RETAILER: Raley’s COUNTRY: United States AGENCY: Galileo Global Branding Group
SPAR
DINDA
CATEGORY: G9. Packaged Goods RETAILER: SPAR Netherlands COUNTRY: Netherlands AGENCY: Yellow Dress Retail
CATEGORY: G9. Packaged Goods RETAILER: Cotia COUNTRY: Angola AGENCY: Galileo Global Branding Group
vertex winners...
Kero
Winn-Dixie OJ
CATEGORY: G11. Beverages: Alcoholic RETAILER: Kero COUNTRY: Angola AGENCY: Galileo Global Branding Group
CATEGORY: G12. Beverages: Non-Alcoholic RETAILER: Winn-Dixie COUNTRY: United States AGENCY: Galileo Global Branding Group
Viñas Altas Lambrusco
Pams Feminine Hygiene
COUNTRY: Spain
CATEGORY: P5. Health Care RETAILER: Foodstuffs Own Brands COUNTRY: New Zealand AGENCY: Brother Design Ltd
MOOV
Our Family Cheese
CATEGORY: P7. Beauty RETAILER: Eurocash COUNTRY: Poland AGENCY: Galileo Global Branding Group
CATEGORY: G8. Fresh
RETAILER: Nash Finch COUNTRY: United States
AGENCY: Marketing by Design
Th e Ju d g e s
Maggie Bean
Creative Lead, Theory House
North Carolina, United States
The former principal of Karro Bean
Design House, she has 20 years of
creative development and strategy
experience. She has worked on
campaigns for The Fresh Market, Food
Lion, and BB&T, and strives to bring
fresh creativity to everything she does
Adrian Whitefoord
Co-founder,
Pemberton & Whitefoord,
London, England
Whitefoord believes the best design
requires a combination of emotion
and logic. Pemberton and Whitefoord
clients include Tesco, Nestlé, Starbucks
and Seicomart.
Jean-Pierre Lacroix
President, Shikatani Lacroix
Toronto, Canada
Lacroix is a visionary design thinker,
author and speaker, and serves as a
board member with the Packaging
Association of Canada. Over the past
20 years, he has built a reputation as an
innovator, passionate about packaging
design and branding.
Loe Limpens
Managing Partner, Yellow Dress Retail
Amsterdam, Netherlands
Limpens studied Fashion design at the
Academy of Applied Arts in Maastricht,
Netherlands, and Design Management
in Rotterdam, Netherlands. For twenty
years he has been working for Private
Label manufacturers, design agencies
and leading retailers. He has experience
in the creative and strategic side of
Private Label packaging and is a leading
expert in retail design. He is co-author
of “Private Label Uncovered”, a 2011
released overview of major Retail
Brands developments.
Maria Dubuc
Director, MBD
Vice President, Big Red Rooster
Massachusetts, United States
A 25 year pioneer in creative
management, Dubuc’s key talent is to
combine a career’s worth of branding
experience into something personal and
unique for each and every client. Smart
& Final, The Home Depot, WinCo Foods
and PriceSmart are among the retailer
programs she currently runs.
Masanori Eto
Creative Director, ADBRAIN, Inc.
Tokyo, Japan
A board member of the Japan Package
Design Association, Eto has over 25
years of package design and advertising
experience. His designs have been
recognized nationally in Japan and
globally. He has also served on jury of
the A’Design awards and competition
(2014), Japan Package Design Award
(2014) and The Dieline Awards(2015).
Glenn Pfeifer
Executive Creative Director, Galileo
Global Branding Group
Connecticut, United States
Pfeifer is responsible for brand and
creative development for packaging
and shopper marketing clients. He
brings a unique perspective to his work,
having worked on marketing creative
for a diverse global client list, including
Citigroup, Sony, Bacardi and ESPN.
Paula Bunny
With nearly 25 years of experience,
Childs has created award-winning,
category-changing design, earning
nearly 200 awards for his design,
including two gold CLIOs. He believes
design doesn’t just create value, but
shapes culture and impacts lives.
Fred Richards
CCO & Partner, Kaleidescope
Chicago, United States
Richards has over 20 years of creative
experience in branding and design, with
MLR Chicago, FutureBrand, Interbrand
and The Brand Union. He has led
creative development initiatives for
clients including P&G, Bayer, Wrigley
and Unilever.
Kevin Shaw
Creative Director, Brother Design
Auckland, New Zealand
Founder, Stranger & Stranger
San Francisco, United States
Prior to returning to New Zealand to
manage the Foodstuffs New Zealand’s
Pams brand, Bunny crafted private
brand design for global companies
including Johnson & Johnson, Gillette,
and Kraft Foods.
In 1994, Shaw created what would
become one of the world’s leading
drinks packaging companies. He
believes products need to stand out
rather than fit in, and that packaging is
key to communicating brand stories.
Rick Barrack
ZHOU Wenjun
Chief Creative Officer &
Managing Partner, CBX
New York, United States
Founder, Creative Director
& Architect, 524 Studio
Beijing, China
Barrack has twenty years experience
in consumer and retail branding, and is
the creative vision behind U by Kotex
and the rebranding of Duane Reade’s
private label portfolio.
Wenjun is a Cube-awarded member of
the Art Directors Club, and focuses on
product design, art and photography.
His work has earned numerous awards
including, One Show Design Pencil, Red
Dot, Cannes Lions and HKDA Global
Design. His work has been published
and exhibited globally.
Gustavio Piqueira
Principal, Casa Rex
São Paulo, Brazil
Piqueira is the most recognized graphic
designer in Brazil, receiving over
200 international design awards and
serving as consultant to major global
companies as a leading trendsetter.
He has designed typefaces, illustrated
children’s books and written 13 books
on various topics.
Angelo Morano
Designer/Art Director, Morano Design
Toronto, Canada
Morano is an award-winning registered
graphic designer and principal of
Morano Design. With over 15 years
of experience, he brings passion and
modern design sensibility to his product
packaging and brand identity projects.
He has managed two of Canada’s most
recognized private brands: JOE FRESH
and President’s Choice.
Don Childs
SVP, Executive Creative Director,
Brandimage
Cincinnati, Ohio United States
Ruth Galloway
Creative Director,
Marque Brand Consultants
Sydney, Australia
Ruth Galloway is an award-winning
designer with over 17 years experience
in brand and brand packaging design.
Having helped shape and define some
of the worlds leading and most iconic
companies, in 2007 she co-founded We
are Him+Her, a London based creative
agency focused on building brands
and positioning them for success
through strong strategic thinking and
beautiful packaging solutions, building
an impressive global and local client
list including the likes of Unilever
and Tesco. After the 2013 acquisition
of the company, she relocated to
Sydney and joined Marque as Creative
Director in 2014 where her extensive
experience, intuitive sympathy for the
retail shopper, and enthusiasm for the
changing retail landscape help guide
Marque and Woolworths on a continued
path to success.
Retail Analysis /
Vendor Allowances –
The Culprit behind Tesco’s
Financial Turmoil
By / DAVID MERREFIELD
Not long ago, Tesco, the largest conventional supermarket chain in the U.K. and a major international retailer, startled the industry by declaring that its reported profits for the past two
years were wildly overstated and bogus.
To what degree were profits puffed? Tesco confessed that reported profits for the past two years
had been bloated to the extent of £263 million [about US$430 million at the time], with some
£118 million of that occurring in the preceding 18 months or so. It’s difficult to gauge exactly
what £263 million means for Tesco, but it’s possible that it could represent up to 80 percent of
its operating EBITDA.
The profit-overstatement disclosure came on top of an earlier-reported 41 percent profit decline
for the first half of last year. Clearly, the edifice was crumbling at an accelerating rate.
Tesco didn’t immediately provide explanation of what could have been at the root of the accounting
contretemps, but said that an investigation would ensue. However, the nature of the problem was
immediately obvious: Vendor allowances were the villain. True enough: Tesco later issued a statement that the problem was “accelerated recognition of commercial income [vendor allowances].”
T
This is serious stuff. The U.K.’s Serious
Fraud Office has undertaken a criminal
investigation of Tesco’s overblown
profitability. Other investigations are
likely. Moreover, Board Chairman
Sir Richard Broadbent resigned. His
successor is to be John Allan, an
executive with an extensive portfolio
of experience, including retail, logistics
and most recently housebuilding.
Beyond that, roughly a dozen other
topside executives resigned, including
the CEO and CFO. Beyond that, in a bid to preserve
capital, Tesco is expected to leave its
long-time headquarters in Cheshunt
and move to a “campus” in Welwyn
Garden City, where it already has a
presence. This may be accompanied by
some 2,000 layoffs. Tesco also intends
to reduce its 90,000 storekeeping units
in a typical store by 30,000. Numerous
stores will be shuttered. All these
developments are directly related to
vendor allowances, as we’ll see.
To that end, let’s take a look at
vendor allowances to see how they
become fertile ground for cooking the
books and see how Retail Brands figure
into the situation. We’ll also see why
vendor allowances are of far greater
importance to the supermarket trade
channel than any other, even though
they exist to some extent for department
stores and for consumer-electronics
stores.
Vendor allowances exist in a
netherworld, and aren’t mentioned in
polite company, so it’s necessary to
do some conjecturing about how they
came about and the forms they take.
Many observers think the contagion
originated in the U.S. and spread from
there. In the U.S., they most likely were
a response to wage and price controls
imposed by U.S. President Richard
Nixon in the 1970s. Manufacturers,
hearing that such controls were in the
offing, instituted steep price increases.
At the same time, though, they told their
retail customers not to worry because
newly instituted allowances would
wash out the effect of price increases.
Manufacturers hoped to wean retailers
off allowances in due course, leaving
the price increases intact. That didn’t
happen.
Vendor allowances started as
rebates or “street money” paid to
retailers to offset their cost of promoting
products. In time, the allowances
mutated to many other forms, more
often than not under growing pressure
from retailers. Examples include
“deals” (short-term price reductions
offered to retailers), slotting fees
(monies paid retailers to “slot” products
in their warehouses or stores), offinvoice deductions (unilateral retail
markdowns of vendors’ invoices)
returns (markdowns for goods retailers
deem to be unsalable) and incentive
rebates (monies paid by vendors to
retailers to achieve sales goals).
All of these practices are rife with
opportunities for retailers to wrest
undue funds from vendors, or for
vendors to curry favor with retailers.
They also engender inefficiencies that
boost price points for consumers.
In the U.S., vendor allowances
are often referred to as a “drug,” in
the sense that allowances are seen as
integral to retail profitability, but that
their contribution cannot reasonably
be continued indefinitely. Nevertheless,
at many supermarket companies,
allowances constitute the
entirety
of profit and without them they they
would go out of business.
Although all allowances are
insidious, perhaps none are so pregnant
continued >>
Retail Analysis /
with opportunity for misapplication as
are incentive rebates. Those rebates
are paid to retailers who agree to sell
some amount of product in excess of
what was sold during a prior period,
say the preceding year. Retailers are left
to their own devices to produce sales
results. Generally, allowances are paid
on a quarterly basis as sales goals are
achieved.
But, suppose a retailer is under
profit duress and needs a way to make
reported results for a quarter to look
better than they are. The temptation
grows to recognize upcoming quarterly
vendor
payments
immediately,
possibly while pushing some costs
to out quarters. Like a gambler on a
losing streak, a thin hope remains that
one more roll of the dice will make
everything come out right in the end.
Indeed, Tesco fits the bill of a
company under financial duress because
of changing consumer dynamics
and competitive pressure from deep
discounters Aldi and Lidl. Moreover,
Tesco is withdrawing from some costly
foreign adventures, such as its ill-fated
Fresh & Easy stores in the U.S.
In the U.S., one company failed
outright because of misapplication of
incentive rebates, that being grocery
wholesaler Fleming Cos. Several years
ago, Fleming not only pre-booked vendor
proceeds, but demanded from vendor
representatives “side letters” stipulating
that allowances would be paid even if
sales performance fell short; prevailing
contracts specified performance.
When the vendors’ headquarters
discovered and halted the fraud,
Fleming collapsed and went out of
business almost overnight.
Similarly Ahold’s operations in the
U.S. nearly came to ruin because of
allowance pre-booking. Ahold, based
in the The Netherlands, operated a
number of supermarket chains in the U.S.
at the time, alongside an institutional
foodservice company. Misapplication of
allowances was particularly widespread
at the foodservice operation.
The question often arrises about
why vendor allowances have persisted
for so long if they produce such a
pernicious effect on the parties involved,
and on consumers. The answer is that
as is true of most dysfunctional systems,
the players see good reasons to turn
a blind eye to the downside. Retailers
perceive that if they are better than their
competitors at wringing money from
vendors, they achieve a competitive
advantage. It has been proposed that if
supermarkets were required to disclose
what proportion of profitability comes
from allowances, the practice would
fade. In reality that would exacerbate
the problem by showing the laggers
that there’s more money to be milked
from manufacturers.
Manufacturers tolerate allowances
because, inter alia, they are able to use
deals to power “trade loading,” that is,
to quickly move product from their own
depots to retailers’, which makes their
short -term sales figures look better
than they really are. Bonuses hang on
such slender threads.
Notwithstanding the durability of
vendor allowances, there’s some small
reason to hope that Tesco’s post-scandal
actions will lead supermarkets out of the
wilderness. One indicator is that Tesco
is now awake to the fact that vendor
allowances and price pressures poison
trade relations between a retailer and
its vendors. In a bid to ameliorate that,
Tesco intends to establish an internetbased Tesco Supplier Network, the main
function of which will be to allow its
5,000 vendors to air grievances if they
think that have been ill treated by Tesco.
The way we can measure future
progress in the movement against
allowances is to take a look at two
factors: The net number of SKUs a
supermarket offers and the amount of
private label product sold as compared
to national brands.
SKU
reductions,
now
being
undertaken by Tesco, signal that a
supermarket is weeding out products
that were there only because they
yielded an allowance, not because
there was much consumer demand.
Private label does something similar. In
broad generalization, the greater the
percentage of private label offered in a
supermarket, the greater is the likelihood
that the supermarket is in the business of
selling product instead of buying product.
That’s because private label offers few, if
any, allowance opportunities.
Some stores, such as Marks &
Spencer, Aldi and Lidl depend almost
entirely on private label. Tesco offers
more than 40 percent of all product
under various private brands. Tesco
lags some of its U.K. competitors in the
own brand race, but is running well
ahead of its counterparts in the U.S. In
the U.S., Kroger is the largest and most
successful supermarket chain. Its private
label penetration is about 28 percent,
well ahead of its U.S. peers. In the future,
we may see an uptick in private label
penetration at both Tesco and Kroger.
Another reason to hope that
vendor allowances are on their way
to the rubbish heap is that SKU
attenuation, such as that by Tesco,
allows a supermarket to align itself
with changing consumer demands.
Increasingly fewer consumers enjoy
a trip to the city’s edge to stock up on
consumables. Instead, shopping trips
tend to be taken locally with a particular
meal occasion or pantry shortage in
mind. As urban dwelling gains more
favor in the future, which seems likely,
that phenomenon will only increase.
SKU reduction will position Tesco
to reduce the size and number of
supermarkets and to align them better
with what consumers want. Price points
can be reduced. Customers will return.
If all that transpires, the biggest
remaining issue will center on what to
do with all that real estate.?? GRB
Vasco Brinca, Senior Vice President, EMEALA, Daymon Worldwide /
The Challenge of
Choice in Today’s
Global Retail Landscape
Retailers around the globe today have more power in the value chain than ever before as
many have become actual agents for change in the lives of their consumers. From a greater
focus on health and wellness to introducing opportunities to access ethnic-inspired flavors
and products, retailers often hold the key to a new world of better life experiences.
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to start, and offer a gateway to trial
that apply to most consumers versus
for other categories and experiences
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to build effective strategies.
decisions.
Daymon Worldwide regularly
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ultimately become the best choice for
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consumer trends, it’s also crucial
For more information or to speak
to review the category-specific
with Vasco Brinca, please contact him
opportunities that exist for Private
via email: [email protected]. GRB
Brands at a particular store level
before moving forward with a new
2
Consumers on every continent
have more choices about where and
how they shop than ever before,
creating an increasingly competitive
retail landscape that blurs the lines
between online and physical shopping
environments.
The notion of a primary store has
all but disappeared as consumers shop
multiple formats for everyday needs.
Digital growth has also fragmented the
supply chain, as shoppers now have
more choices for online ordering plus
multiple points of fulfillment such as
in-home delivery and click and collect
models.
The actual role of the primary
shopper has also changed as the
responsibility is increasingly shared by
several members of the household.
All of these complex scenarios
make building brands and securing
shopper loyalty difficult goals for
retailers to achieve, but it can be
done. In fact, this environment offers
particular opportunities for retailers
to leverage their Private Brands as a
means to differentiate from competitors
and inspire core consumers with
targeted innovation that speaks to their
particular needs.
To do this well, global retailers
must invest the time and marketing
Jesse Moen, Director, Continuous Improvement Practice, SGK /
Building a Superior
Artwork Process to
Strengthen your Brand
It’s extremely rare to meet a packaged-goods brand marketer who doesn’t admit, “I have
too many rounds of revisions and it takes too long to get my packaging approved.” This is very
harmful to brand performance: it reduces speed-to- market and sales and increases expenses
across the board. And with new EU and impending U.S. regulations on labeling accuracy, this
kind of inefficiency will be even more costly because it leads to mistakes.
Some companies accept
packaging headaches. But some
dig in and solve them. They start by
looking at root causes. There are two,
and they are as cultural as they are
technical.
The first one goes like this >>
“I have a new package coming
(maybe a full redesign or just an
ingredient change). And we have
a deadline. I don’t have all of the
data I need (something as critical as
a nutrition statement or something
discretionary, such as romance copy),
but there’s so much pressure that we
might as well just get started. Just go!”
It’s a fallacy that this pays off
in the long run. It works every once
in a while, but when a major brand
is executing, say, 5,000 packaging
changes a year, it’s not sustainable.
Pretty soon you’re driving more rounds
of revisions, and people are desperately
seeking information that should have
been there when production began.
This costs money, and it’s how costly
mistakes happen on shelf.
There’s a practical solution to this,
but the change has to be cultural too.
The company has to say; “We’re not
going to do this anymore. We’re going
to figure out what data we need at
each stage-gate, and we’re not going
to move forward until we get that
data.” This is crucial. But it’s hard.
The second cultural issue >>
The second cultural issue is
package data and how it’s handled;
whether a brand manages its packaging
in-house or uses vendors. The most
efficient brands understand that
package data is diverse and it’s coming
from everywhere: nutrition facts,
ingredients, net weight, barcode, logos
and other art elements, romance copy,
etc., can come from marketing, design,
legal, packaging R&D, product R&D
and more. Efficient brands standardize
the way this data is gathered and
stored. Whether they use carefully
curated and protected spreadsheets or
a more sophisticated digital database,
every stakeholder contributes to a
standardized, secure data platform.
As logical as this sounds, there are
manufacturers and brands that have a
different system for every division. It’s
confusing and inefficient, and it makes
automation impossible for packaging
as well as for related items such as
coupons, circular artwork and direct
mail.
And it contributes directly to our
first root cause – of saying, “Just go!”
before all the inputs are gathered,
organized and approved. Along with
a logical, curated database, efficient
brands establish that once the data is
stored, it’s “gone” – it’s official and not
to be changed. But the data as a whole
can’t “just go” until they are all there.
Once a company has addressed
these two root causes, then it can
standardize according to Six Sigma
principles. It can optimize according to
lean manufacturing principles. And it
can automate by tying the optimized
database directly to package design
functions.
Current and impending packaging
regulations make these improvements
crucial. There’s less chance of error
at each discrete stage, but there’s a
holistic benefit too. If a major brand
makes packaging changes to half its
SKUs a year, that could total 5,000.
EU and pending U.S. packaging
regulations will involve every SKU – so
let’s say 10,000 for a large brand. If
the typical approval process involves
10 people, several rounds of changes
and 10 minutes per approval, you’re
talking thousands and thousands of
hours spent (in a relatively short time)
on something that’s not adding to your
bottom line.
But what if the proposed U.S.
regulations are significantly watered
down in the coming year? Brands
are free to hope for this, but their
issues will remain. Yes, implementing
data collection and management
best practices is hard work. It might
require new technology. And it will
require cultural change, which is the
hardest. But it’s hard work that pays
off permanently. On the other hand,
when 10 stakeholders are involved in
a package process that starts too early,
has too many revisions and still results
in an error, that’s hard work with no
payoff. GRB
Jesse Moen brings 10+ years of expertise in brand development/deployment and
in the practice of continuous improvement.
He is the driving force behind the success of
the SGK Continuous Improvement Practice
(CIP) and has strategically led initiatives
with CPGs and retailers such as Campbell’s, Dial, Diamond Foods, General Mills,
Logitech, Merck, Proctor & Gamble, 3M,
Safeway, and Titleist. Jesse earned a MA
from the University of California, Berkeley
and holds a Lean/Six Sigma Black
Belt from the University of St. Thomas.
www.sgkinc.com; [email protected]
Koen de Jong, Managing Partner, International Private Label Consult (IPLC) /
Managing
Private Labels
Early January, I went to the UK to visit the stores of a few major retailers to
gather some last bits of material for my next book: Managing Private Labels. After
an exhausting day in the stores I posted one of my most striking observations of that
day on the LinkedIn discussion group, Private Label News. The question I posted
was: ‘Is Tesco offering too much choice to its shoppers?’
A comparison between Aldi and
Tesco during my visits revealed an
astonishing difference in shopper
choice between the two retailers. In
most cases Aldi as a limited assortment
discounter, only offers one own
label equivalent alternative to the
market leading brand in the category.
Tesco however, offers a plethora of
alternatives under the Tesco brand.
A few examples: next to Nutella’s
hazelnut spread Tesco offers 13
chocolate-based own label spreads.
It has up to 11 own label alternatives
to Fairy washing up liquid and 6 own
label alternatives to Sun-Pat peanut
butter. ‘Is this getting too much, or is
offering a wide assortment next to a
different experience the battleground
where Tesco (and other mainstream
retailers) should continue to make the
difference?’ I wondered on LinkedIn.
The question was answered by
the new Tesco CEO Dave Lewis himself
as he announced only 2 days after my
post to axe 20,000 SKUs, more than
20% of the 90,000 SKUs Tesco stocks.
Low cost retailers such as Aldi
and Lidl have eaten away significant
market share of the big-4 (Tesco,
Asda, Sainsbury’s and Morrisons) in
the UK. Simplicity is the key-word
for these retailers and this is also
reflected in their assortment. It is not
without reason they are called limitedassortment discounters.
There is a phenomenon called
‘shopper stress’ which indicates
the confusion for consumers that
results from too much choice offered
during their shopping trip. This will
not happen that easy in Aldi or Lidl.
According to The Guardian, Tesco
stocks 224 SKU’s air freshener (Aldi
12, all own brand), 98 SKUs rice (Aldi
6 options, all own label), 283 SKUs
coffee (Aldi 20, of which 15 own
brand), to name a few.
Hard discounters are in the
business of selling at low cost
and maximizing rotation. From my
profession as a private label consultant
I am a great admirer of Tesco. Over
the past few decades phenomenal
initiatives to drive private label
innovation were taken by this retailer.
Whether being the good-better-best
architecture, organic, fairtrade, freefrom or venture brands, it all sprouted
from their head-office in Cheshunt. I
can only hope they will quickly get
back on their feet and will continue to
surprise their shoppers and competitors
with what they have been so good at
in the past. GRB
Koen De Jong is founding director
of International Private Label Consult, a
boutique consulting firm specialized in
strategic consult and project management support to manufacturers and
retailers. With offices in France, The
Netherlands, Germany and Spain IPLC
helps its clients with a pragmatic
and action oriented approach.
[email protected]
Photos copyright IPLC
Perry Seelert, Co-Founder and Strategic Partner, Emerge /
The Lineage
of a Brand
Does the Story of Who Owns
and Creates the Brand Really Matter?
There are two wildly popular television shows that are global, Shark Tank and Dragon’s Den,
which are must-see viewing in our household. Both of them are cut out of the same cloth, setting
up great confrontations between the entrepreneurs who pitch their product/company ideas and
the “sharks” who evaluate them for equity stakes. I can’t get enough of it. One thing that sharks
are always looking to tease out of the entrepreneurs is why they started the business, where did
they see the consumer need, and did the company’s origin come from a place of true passion?
They are interested in the heart and soul behind the idea just as much as the economics.
More than ever today, the
lineage of a company and a brand
matters to consumers. It matters
in retail branding too, and there are
new lessons to be learned about how
you should connect your own brand
vividly to your store. There are three
underlying drivers to why brand
ownership, story and lineage are
important facets to your success:
Authenticity & The Millennial
Generation – You have read of the
increasing consumer importance
of Millennials and how they value
customization, are digitally native and
early adopters, but one of the ethics
they value the most is the authenticity
of companies and brands. They want
to understand roots and the purpose/
mission within a brand. Are the roots
and mission real?
Interestingly, the big food
conglomerates have gobbled up many
of these mission-oriented companies.
Campbell’s purchased Plum Organics
and Bolthouse Farms recently, and
General Mills bought Cascadian Farms
and Annie’s Naturals. They have done
it to become more credible in the
natural and organic segments, yes, but
they also chose not to develop these
products under their existing brands.
They also decidedly do not advertise
that the brands have new owners.
In fact, companies like Anheuser
Busch/InBev choose to hide these
purchases, like they did when they
bought craft brewing sensation Goose
Island. Nowhere in the marketing,
advertising or packaging is there even
a hint of the association to InBev, and
you may ask, “do consumers even
care”? Well, yes, increasingly they
do. Sales show Goose Island is doing
well (increasing distribution), but there
is a core consumer who has been
disaffected and moved away.
Transparency & Honesty – One of
the most successful brand turnarounds
in North America has been with the
pizza chain, Domino’s, and you want
to know why? It is because they were
incredibly honest about their new
mission, and many Millennials (and
more) gave them tremendous credit
for their truth-telling. They came out
and said their pizza and sauce had lost
their way, that they were bland and
boring and not very flavorful. They
basically said they sucked. And this
honesty resonated, and has had a huge
effect in Domino’s reacquiring share
from Pizza Hut.
Safety – The third driving reason
for exposing your brand’s lineage
is that beyond authenticity and
transparency, consumers want to know
where a brand comes from for safety
purposes. They want to know what
a toy’s plastic composition is, what
country it came from and in the food
chain they increasingly want total
ingredient visibility and origin.
Clearly, having your retailer’s
name on the package adds to the
brand’s lineage, and when the story is
told right, can add meaningful texture.
Danny Wegman not only puts the
family name on the product line, but
Wegmans Dog Food, called “Bruiser”, is
even named after their beloved family
dog. It has meaning.
What happens when you don’t
utilize your retailer name on your
brand? That can be perfectly fine in
many cases, as long as the brand’s
exclusivity to the store is clearly called
out. Take for instance Price Chopper’s
new line of meats, Chiappetti, which
positions itself as humanely raised by
family farmers. Throughout the meat
case, within advertising and across
social media, the brand is distinctly
marked as a “Price Chopper Exclusive”.
However, if your own brand does
not have the retailer’s name, is not
endorsed by the retailer’s overarching
brand, or is not denoted as
continued >>
a brand “exclusive” to the store, then
I think you are working against the
preferences of Millennials, and working
against an overall consumer who is
seeing their product and brand choices
with a new transparency. Tell the story
of where the brand comes from and
why you created it, and you will be
well positioned for the enlightened
shopper. GRB
Perry Seelert is retail branding and
marketing expert, with a passion for
challenging conventional strategy and
truths. He is the Strategic Partner and
Co-founder of Emerge, a strategic marketing consultancy dedicated to helping
Retailers, Manufacturers and Services
grow exponentially and differentiate
with purpose. Please contact Perry at
[email protected]
Irene tortorella
Junk Mail vs.
Junk Food
Tired of take away? Had enough of wasting money eating out?
Want to impress that special someone with a home-cooked dinner,
but short on inspiration about the menu?
You need to go back to the good
old times when you were cooking at
home. Don’t tell me you don’t have time
for that, because even in our busy lives
it takes longer to order a pizza than
leave 100 grams of pasta to boil for 10
minutes. And it’s not just Italians who
know how to make pasta sauces: Gefen
Mushroom pasta sauce is an excellent
and quick choice for all the family’s
liking, a lesser known brand, but one
worth picking up when you see it.
So, let’s start from the grocery
shopping.
I know you don’t like going to
the supermarket, you feel lost and
don’t get excited at all in front of those
stacks full of same-thing-different-
name products. Your palms start to
sweat when you have to make a
decision about what to have for dinner.
You definitely don’t like queing at
the cashier. You lazy you! What about
shopping online? The Internet is a big
place but it’s also the best place to find
discounts. You can even compare prices
and split your weekly shopping, or
just use each supermarket website as
reference for your grocery list.
I also believe you don’t love
receiving weekly updates from retailers
into your personal e-mail, or do you?
But there you go, if you sign up to
Sainsbury’s or Morrisons newsletters
and wait a couple of hours, then
check what’s on at your local store,
you might not be too disappointed.
You might have learned that for your
Valentine’s Day romantic dinner at
home, you could have had a bottle
of Louis Delaunay Champagne Brut
that for £12.99 (was £25.99) at Tesco.
Would have made you look like a real
romantic sort.
So, don’t leave these precious
mails to go to the junk mail folder,
they can be the first source for your
food shopping rehab. And what about
the good old-fashioned supermarket
leaflet? I love to use them as reading
material, on my sofa, after a long
working day. You can see the best
deals of the week, still compare prices
and collect some coupons. Forget
take-away leafleats, you’re better off at
ASDA. GRB
Richard Kohn /
Let’s try: The big surprise
will be that what seems an
insurmountable challenge for
them, is simple for us.
Winning in private label is driven by a few factors: Speed of response, flexibility, pricing and
increasingly, based on my most recent experiences, solving simple problems for our clients.
Or perhaps they are just simple
for us, because of our depth of
knowledge and ability to perform.
Let me explain more. We know
there are a number of operational
models retailers use for private label.
These range from extensive in house
teams to totally outsourced supply.
For those with less extensive a team,
there’s a real opportunity (less so with
bigger teams, but I believe it is still
there). Middle management ranks in
retailers having been culled in recent
years. The result is a knowledge gap
in those retailers that smart private
labelers can exploit.
Managers working in major
retailers today are very impressive
characters. In most cases they
have passed through the fast track
management training courses as top
performers. They are bright, intelligent
and commercially very savvy. They also
are responsible for multi million Euro/
Dollar budgets. These are extremely
busy people, used to success and used
to wielding great power.
Then comes along a problem to
which they don’t, despite their great
wealth of experience, training and
budgets, know the answer. In today’s
retail management environment, where
can they turn? Colleagues – perhaps:
but then they don’t want to show
any weakness. Senior management
– unlikely: there’s not a lot of them
left and those that are there, so busy
it’s unlikely that they will have time.
Consultants – never: they cost money.
Develop a good and trusting
relationship with your category
manager, one where they feel they can
share with you the product challenges
they face, where you solve a few
simple problems for them and then
you become an invaluable source of
support.
Believe me, I know this because
I have sat on both sides of the table.
It just seems that even more now, as
retailers try to move from recessions
to growth, the need for a wise,
experienced counsellor at the shoulder
of the buyer, offering easy solutions is
more valuable than ever before. The
big surprise will be that what seems an
insurmountable challenge for them, is
simple for us.
Most category managers simply
have no time to manage their long
list of branded contacts and then
an extensive network of suppliers
across the every expanding range of
categories that they have to cover.
In a nutshell: Find a busy
category manager, with too much
on their plate, handling multiple
big brands and big categories. Set a
meeting and then listen, just listen.
You’ll be surprised at how easy it is to
win new business! GRB
Richard is an expert in global
marketing and an acknowledged strategic
brand leader. He currently heads the
private label division at one of the largest
retail pharmacy groups in Europe. He’s held
senior management positions in A brand
CPG companies and led international
marketing and strategy teams across CPG,
consumer durable and business services
companies. He’s also the European client
partner for a leading brand excellence
training institute which delivers brand
and communications courses to Fortune
500 companies. Richard is dedicated to
bringing the discipline and science of brand
marketing and marketing communications
to private labels, empowering them to
cultivate critically essential marketing
management competencies to lead them
to build leadership brands.
[email protected]
Jean-Pierre Lacroix, President, Shikatani Lacroix /
Driving At-Purchase
Impulse Purchases
Retailers and marketers face a new set of opportunities thinly veiled as challenges. Looking at the glass half
empty perspective – the challenges – today’s grocery shopper faces a complex (and confusing) retail environment
with more than 60,000 supermarket products, and these numbers continue to grow along with the range of retail
channels available. To amplify the issue, the number of weekly shopping trips in the U.S. dropped from a high of
2.2 in 2012 to 1.6 per week in 2014, and consumers are also more willing to accept living with less.
However, from a glass half full
perspective – the opportunities – the
average time spent grocery shopping
rose to 41 minutes. With this extra time
spent in the store, retailers have new
opportunities to drive private label
impulse purchases – the acts of buying
without pre-shopping objectives
or consideration – since so many
decisions are being made at the shelflevel. Marketers and retailers need
to consider four design factors when
developing their packaging program.
Factor One: Strong Visibility >>
It’s pretty obvious that to drive
impulse sales, the product needs to be
noticed during the split second it takes
a consumer to buy a product.
In packaging design, we defined
the key criteria driving shelf visibility
– the BlinkFactor™, where 40% of
all communication consumers absorb
is visual, and 80% of this visual
connection lays in colors and shapes.
Are your brands’ colors and shapes
setting you apart from competitors and,
more importantly, drive an effective
emotional connection with consumers?
When considering increasing
your brand’s visibility, you should also
consider the entire product category
in which the product competes
for customer attention. When we
redesigned the Shoppers Drug Mart Life
Brand, we took the time at the client’s
mock store to review each packaging
concept within the shelf setting to
ensure the designs truly stood out.
Factor Two: Leverage
Shop-Ability >>
How marketers leverage the
natural way consumers shop will
ensure their product effectively helps
solve customer’s buying decision.
Sometimes it can consist of a color
(green=organic, light blue=healthier
alternative, etc.) or the hierarchy of
communication where the sub-brand
plays a critical role. Since people shop
with their eyes, the ability to leverage
large images that either reinforce
the end benefit or help understand
the final usage help quickly fill the
information gaps when consumers are
making their final purchase.
Factor Three: Align to
Shopping Behavior >>
Marketers and designers
understand that there is a huge range
of types of shopper behaviors: stockups, fill-ins, special purpose visits, and
quick trips, and each one influences
which product categories will be able
to leverage impulse behaviors.
For example, in many shopper
categories these can consist of seasonal
packaging, sweepstakes-type flashed
packaging or unique collectables. If
consumers are doing stock-ups, offering
bonus packaging, time-limited offers
highlighted on the packaging, or multiple
purchase offers help drive purchase
behavior. This type of incentive provides
added value in the form of convenience,
and it drives the consumer away from
potentially buying a competing brand.
Package design for fill-ins and special
purchases should reflect strong shelf
impact, stronger end-benefit messaging,
or reinforce a lifestyle benefit that talks
to the emotional state of the consumer.
Factor Four: Emotional
Connection >>
Ultimately, impulse sales need to
create effective emotional connection
with consumers in the split second
it takes to make a buying decision.
Most impulse purchases are traced
to a consumers lifestyle needs and
self-expression plays a critical role. In
essence, brands reflect customer’s selfimage and effectively tapping into this
behavior will drive impulse purchases.
Packaging that makes this connection
has higher odds to be considered
during the unplanned at-purchase
moment. The package design imagery,
colors and messaging should all play
a role in ensuring the resulting image
takeaway aligns consumers’ self image.
Conclusion >>
Impulse purchases represent a
critical opportunity in ensuring brands
win at retail by increasing their
selection odds with the customers.
Impulse can only occur with a package
design that is highly visible, reflects
the shop-ability of the category,
reflects consumers shopping behavior
and makes a strong emotional
connection in the fraction of the time it
takes to make a buying decision. GRB
NOTEable /
<< MarcabyBolognaFiere from page 21
posting the best results were food groceries (+2.5% in
value and 0.4% in volume), fresh produce (+0.6% in
value), and pet-care (+2.0% in value).
There was a full house too for the inaugural meeting
organized by ADM entitled “Private Labels and Value
Creation in the Agro-food Supply Chain: two sides of the
same coin” where one of the topics was best practices
to ensure agro-food products achieve their full potential
within the large scale retail system.
The tradeshow closed
with a message of
confidence and encouragement for Italian
producers. “One in five
products sold in modern
retail chains is a private
label”, commented
Francesco Pugliese,
Chairman of ADM, the
organization grouping
major retailers. A key
feature of MarcabyBolognaFiere is that 95% of exhibitor
companies are SMEs. This is one of the venues that can
really help kick-start the nation’s economy.
Not only do private label products mean extra value for
consumers - being equal in quality to the major brands
yet with a 30% lower sales tag - they are also mostly
produced by SMEs. So purchasers can be sure products
are very likely to be made in Italy from local agricultural
produce. Private labels are a guarantee of quality and
food safety – at lower prices”.
The next MarcabyBolognaFiere will be held on 13 – 14
January 2016. GRB
trade fairs /
PLMA’s International Salute to
Excellence Awards winners to
be announced at 2015 “World
of Private Label”
PLMA’s 2015
“World of Private Label”
19-20 May, Reflects
Success of Private Label
across Europe
All signs point to PLMA’s 2015 “World of Private Label” Trade
Show, to be held 19-20 May in Amsterdam, being the biggest
ever, as retailers and manufacturers work together to meet the
growing demand for retailer brands.
A new consumer poll by Nielsen finds that perceptions about private
label are overwhelmingly favorable in Europe and around the globe.
Two of every three shoppers say that retailer brands offer good value
for money and 71% believe that private label quality has improved
over time.
The growing popularity among consumers across Europe is reflected in
the market share statistics compiled by Nielsen for PLMA’s International
Private Label Yearbook. Retailer brands now account for at least 30% of
all products sold in 15 countries, the greatest number ever.
Three countries—Sweden, Finland and Czech Republic—have
A highlight of this year’s “World of
Private Label” Trade Show will be
the announcement of the winners
of PLMA’s International Salute to
Excellence Awards. The Awards give
recognition to outstanding food and
non-food private label products that have been introduced by supermarkets, hypermarkets, discounters,
drugstores, and specialty stores in the past year.
National and international retailers have submitted
their best and most innovative private label products,
covering many food and non food categories, for consideration by an international panel of industry experts,
including chefs, former retailers, academics, nutritionists, journalists and packaging specialists.
The panel carefully examines all the products and then
grades them on several criteria, including performance,
taste, concept, packaging, design and value for money.
The judging takes place in Amsterdam in April and the
award-winning products will be displayed in PLMA’s
Idea Supermarket®, where visitors can also see products from retailers across Europe, North and South
America and Asia. GRB
crossed the 30% market share line for the first time. The number
of countries achieving 30% share has been rising steadily. Back in
2011, only 10 countries made it. In 2012, the number climbed to 12.
Private label growth has been especially strong in Spain, where
it now accounts for more than half of all products sold, In five
countries—United Kingdom (45%), Portugal (45%), Germany (44%),
Belgium (41%) and Austria (40%)—private label represents at least
four of every ten products sold.
“The Nielsen data makes it clear that shoppers across Europe are
putting more private label products in their baskets,” said Brian
Sharoff, PLMA President. “Retailers are responding to consumer
needs by expanding their private label programs and introducing
more innovative products.”
Last year, PLMA’s “World of Private Label” Trade Show attracted
more than 11,000 buyers and visitors from 115 countries. There were
nearly 4,000 exhibit stands on the trade show floor, featuring more
than 2,250 exhibitors from 70 countries, including 53 national and
regional pavilions.
Products on display on the Trade Show floor include fresh, frozen
and refrigerated foods, dry grocery, and beverages as well as nonfood categories, including cosmetics, health and beauty, household
and kitchen, auto aftercare, garden, and housewares and DIY. The
show floor was divided into separate food and non-food halls to help
visitors make the most of their time.
PLMA offers a special pre-show seminar program prior to the show.
Admission to the seminars is complimentary to all registered visitors
and exhibitors. The seminars will be presented in the Forumzaal
at the RAI Exhibition Center on Monday, 18 May 2015 from 14.00–
16.00. Presentations are translated into English, French, German,
Italian and Spanish. GRB
Poland’s
Professional
Event on
Private Labels
Targi Kielce – Central and Eastern
Europe’s second largest Expo Center
will produce the second edition of
Exhibition And Conference for Private
Label Producers PLME - 29th and
30th June 2015.
MDD Expo 2015
31st of March and 1st of April
On the 31st of March and 1st of April, 2015, private label brands will be
showcased at the European exhibition for trade professionals held at Paris
Expo, Porte de Versailles (Hall 3). From micro- and medium-sized businesses to
multinationals, the 550 exhibitors present at MDD Expo will share their capabilities
and innovation.
Since innovation is an essential factor in the development of private label brands,
it is the star of all the exhibition’s events, making MDD Expo a unique showcase of
the latest global trends in private label brands.
International Sourcing >>
30% of the exhibitors are foreign manufacturers and visitors will be able to
discover pavilions from: the Netherlands, the United Kingdom, Turkey, Tunisia,
Belgium, Italy, Algeria, Germany and others.
Europe’s retail market sees an
increased number of private labels
sold in retail chains. The organizers
report that private label products
account for about 19% of Poland’s
retail sales, and 28% for food
products.
Retailers; from delicatessen, through
hyper-and supermarkets, to luxury
and highly specialized shops
have own brand, often discounted
programs on offer.
PLME is one of the few events of
this kind in Europe; an international
business platform solely dedicated to
the private label industry – a meeting
place for the Continent’s producers,
wholesalers and major and most
important retail chains. Last year’s list
of exhibitors of over 100 companies
from Germany, Austria, Italy, Ukraine,
Lithuania, Belgium, Serbia, Hungary
and Poland.
2 dedicated villages to help buyers source their products >>
For the second time and in partnership with the Club PAI (French association of
Intermediary food product manufacturers), the Village Ingrédients will highlight
the importance of quality ingredients and intermediary food products in the
development of new trends in private label brands.
The exhibition is accompanied by the
conference which brings together
representatives of Poland’s major
companies and institutions in the
private label sector.
MDD Expo Pépites (Little Gems)—micro- to medium-sized companies new to
the private label market—will also be a unique wealth of exclusive talent for all
retailers seeking differentiation and/or new flavors. An ideal sourcing partner for
unearthing original know-how.
For more information on exhibiting or
attending, please contact Robert Frąk,
Project Manager: [email protected],
or visit: www.markiwlasne.pl. GRB
For the second year running, the Pack Store will provide relevant answers on
practicality, sustainability, space saving ... The innovative packaging of private
label brands is a major challenge for both product manufacturers and retailers,
and will once again be highlighted at this space. GRB
trade fairs /
3d Wabel
Frozen Summit
Doubles in Size
and Confirms
Success!
March 11-12, 2015
Hilton Hotel, Paris Charles
De Gaulle
Increasing
numbers of frozen
food suppliers and
giant retail buyers
are turning to the
2015 Wabel Frozen
Summit, making it a must event on the
2015 Frozen Food calendar.
Saving time and costs in the sourcing
and selling process, Wabel gathers
together 100 suppliers and more
than 80 buyers to talk business over
two days in private meetings, preorganized in the run up to the event.
Leading European retailers, such as
Tesco, Intermarché, Asda, Carrefour,
Leclerc, Auchan, Cora, Casino, Morissons
are participating in the event, along
with AMS, BLOC, EMD, AGENOR, the
largest buying alliances in Europe.
WABEL provides participants with
conferences (IRI - sales performance
and MINTEL - latest products
innovations, IFS – certification benefits),
store checks, retailer insights and
networking lunches. WABEL will also
showcase innovations in frozen private
label at the Wabel
Award Ceremony.
Frozen, Desserts,
Fruits & Vegetables,
Fish & Seafood, Ice Cream, Meat, Pizza,
Ready Meals
Upcoming 2015 Summits >>
Household & Personal Care Summit
Paris October 14 & 15 2015
Hilton, Charles De Gaulle (Airport)
Grocery Summit >>
Paris November 25 & 26 2015
Hilton, Charles De Gaulle (Airport)
www.wabel.com. GRB
SIAL CANADA Returns to Toronto
The largest food tradeshow in Canada is coming to
Toronto’s Direct Energy Center
SIAL Canada, the International Food and Beverage tradeshow, returns to Toronto
for the third time from April 28 to 30, 2015. The Toronto edition promises to be a
source of inspiration and innovation for the entire agri-food industry.
As the largest food tradeshow in Canada,
SIAL Canada offers visitors an unequalled
selection of International, Canadian and
Quebec products. In addition, as the
largest tradeshow in the Great Lakes
region, SIAL Canada has significant
influence across the American Northeast.
In 2014, SIAL Canada experienced recordbreaking numbers in Montreal. For three
days, Montreal became the capital of the agri-food and food-service industries.
With 786 exhibitors from 44 countries and nearly 15,000 professional visitors
from 61 countries, there’s no doubt that the 2014 edition of SIAL Canada was a
resounding success.
Now back in Toronto for 2015, SIAL Canada is proud to position itself as the only
tradeshow in Canada that reflects the very latest consumer trends. In fact, 3 out of
4 visitors to the 2014 show attended in order to see the industry’s newest trends
and products. This year, visitors from at least 60 countries are expected to come
meet and do business with nearly 800 exhibitors in the over 230,000 sq. ft. of
exhibition space.
Indonesia: 2015 Country of Honour >>
As Italy was in 2011 and Morocco in 2013, Indonesia will be SIAL Canada’s Country
of Honour for 2015. With 249 million inhabitants, Indonesia is the ASEAN’s most
important agricultural country and its leading economy, accounting for 38% of GDP.
A strategic sector that is expanding rapidly, supported by ever-increasing local
demand, the food market (+57%
between 2011 and 2015) is a vital
factor, not only for the country
itself, but also for the entire ASEAN
zone.
SIAL Innovation: the only
international contest with a presence in the four corners of the world. Made up
of food-industry experts, and held in partnership with XTC World Innovation, the
jury awards 10 finalists and one Grand Prize. The Grand Prize winner, as well as
all of the finalists, will have the unique opportunity of traveling the world to all
of the SIAL shows, which include: Canada (Montreal/Toronto), China, Brazil, the
Philippines (SIAL ASEAN), Paris, Jakarta (SIAL InterFOOD) and Abu Dhabi. This year,
for the first time, a “people’s choice” award will also be granted.
An International Brand >>
By 2050 in Canada, 50% of the population will be of foreign origin, and, by
2031, 56% of Toronto’s population will be of Asian origin. In keeping with these
changing demographics and consumers’ growing demand for ethnic and specialty
products, SIAL Canada will offer a world of products to discover. GRB
Bologna Welcomes
Cosmoprof
Cosmoprof Worldwide 2015, the quintessential international
beauty event and center for trends and information about the
global cosmetics world, will take place from 20th-23rd March.
The 2015 edition will host 27 national collectives (Korea,
China, Taiwan, Poland, Germany, Colombia, France, the Far
East, Greece, Belgium, Spain, Pakistan, Turkey, the UK, Israel,
Peru, the US, and for the first time, the United Arab Emirates,
Thailand and the Netherlands.
The International Buyer Program, a tool that has been
consolidated over the years, will involve 25 regions of the
Contract Manufacturing
Moves Forward at
Cosmoprof North
America
Cosmoprof North America (CPNA), the premier B2B
international beauty show, promises to deliver even more
attractions at its event in Las Vegas on July 12-14, 2015.
world at the upcoming edition. It will also have an add-on,
the International Buyer Program Cosmopack; targeting buyers
specialized in machinery and innovation for the cosmetics
industry, contract manufacturing, packaging and raw
materials.
Cosmopack >>
Cosmopack, “the show within the show” of Cosmoprof,
will take place from 19th to 22nd March. The landmark
international event dedicated to the beauty sector’s supply
chain will open a day ahead of Cosmoprof, giving its
exhibiting companies coming from 33 international countries
an opportunity to make contact with exhibitors at Cosmoprof
Worldwide Bologna, the major potential buyers for companies
in the production chain.
Companies from 33 countries worldwide will be taking part
in the event. In 2015 these will all be linked by the theme of
eco-sustainability, a vital aspect of industrial production that
will be the subject of workshops and special initiatives.
Major manufacturers of machinery and technology for
cosmetics firms, companies producing primary and secondary
packaging and raw materials businesses will all be taking
part too. The world of raw materials will be the main theme
of “Spotlight on Ingredients”, the project aimed at promoting
high-quality and highly innovative raw materials.
The Cosmopack Factory project will be returning for the
2015 edition. This is a special exhibition area where the
manufacturing process for the most famous and widely
distributed beauty products is reproduced live and the secrets
of mascara will be revealed.
www.cosmoprof.com. GRB
In addition to providing multiple opportunities to network
and learn about/discover the latest beauty innovations,
CPNA has also redesigned its layout to improve traffic
flow and provide attendees with one-stop-shop pavilions
to meet their needs. The newly designed floor plan
showcases the change from four to three pavilions that
include: Packaging, Contract Manufacturing & Private
Label; Retail [Cosmetics & Personal Care] and Professional
Beauty [Hair, Nail, Tools, Wellness & Spa].
Those looking for contract manufacturing solutions won’t
need to search too hard as this section has also been
moved to the front of the show floor, acting as the first
point of reference
for attendees as they
walk into the main
hall. Looking for
packaging solutions?
Companies
exhibiting include:
HCT Packaging,
Baralan USA/
Arrowpak, Lady
Burd Private Label,
Bottlemate Inc. and
HCP Packaging to name a few. Also, don’t forget to check
out the Popup Installation display of The Dieline Award
winners from 2015. The Dieline is the industry’s source
for daily package design inspiration, resources, news,
conferences, events, and awards.
www.cosmoprofnorthamerica.com. GRB
advertisers index / Next Issue Details
Special thanks to these advertisers whose
support has made this issue possible.
advertising inquiries
Europe
Mr. Jacco van Laar
Global Retail Brands magazine
Herman de Manstraat 29
3842 AT Harderwijk,
The Netherlands
Tel. +31 (0) 6 13 68 18 08
[email protected]
Cosmoprof / Cosmopack Bologna / 13
Daymon Worldwide / 19
DEK (Deutsche Extrakt Kaffee) / Back Cover
Drogheria & Alimentari / Inside Front Cover Spread
Fifty2, The My Private Brand Project / 15
Ms. Inta Lasmane
Business Development Director
[email protected]
Indian Retail Congress / 65
Jupiter Prestige Group / 5
Marca by BolognaFiere / 11
AMERICAS, ASIA,
AUSTRALIA, Africa
Mr. Phillip Russo
Global Retail Brands magazine
240 Central Park South, Suite 9G
New York, NY 10019 USA
Tel. +1 917 743 6711
[email protected]
Massimo Zanetti Beverage USA / 9
MBD / 35
MDD Expo / 8
PLMA World of Private Label, Amsterdam / 7
PLME, Poland / 17
Ms. Laura Lemos
[email protected]
Shikatani Lacroix / 39
Theory House / 27
Voccii / 49
WABEL / Inside Back Cover
In the next issue
of Global Retail
Brands Magazine…
november 2014 / ISSUe FIve
Global Retail BrandsGlobal Retail Brands
PLMA Amsterdam
Products And Suppliers
European Retail Innovation
Anuga Preview
Are Suppliers Ready for the
Digital Retail
Revolution?
PLMA Chicago
Ad Close:
April 13, 2015
Global Suppliers from Italy,
Peru and more…
SyStème
ShiftS the power
balance
HEMA - Global Brand Moves into New Markets
How Much Brand Choice Is Too Much?
Driving Up Seductive Brand Desirability
Multichannel Shopping Blurs Lines
Between Virtual and Physical
The Target of Tomorrow
Is the Purchase Funnel Dead?
OctOber 2014 / ISSUe fOUr
www.vertexawards.org
YOU THINK MEETING RETAIL BUYERS
IS HARD WORK?
FROZEN SUMMIT
PARIS MARCH 11 & 12, 2015
80
100
800
RETAIL BUYERS
SUPPLIERS
BUSINESS
MEETINGS
OVER 2 DAYS
AT WABEL WE BRING
€1.4Bn PURCHASING POWER TO YOU !
YOUR PRIVATE LABEL EXPERT.
www.wabel.com

Vertex Best of Show - Global Retail Brands

Transcription

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