Elsevier Food International
Volume 8, No. 3 September 2005
Brand Vision
Royal Numico’s chief executive Jan Bennink (49) never chooses the line of least resistance. When he decided in early 2002 to give up his job at Danone to become Numico’s executive chairman, he knew that he was switching from comfort to trouble. Numico was a former blue chip company that had quickly lost its colour.
EFI Special
Although the elite circle of Wal-Mart, Carrefour, and Metro still maintains a firm grip on the frontline positions in the retail 100, new players have entered the top rankings via ambitious buyouts made last year in the US, Canada and the UK. Planet Retail surveys the retail arena and concludes that traditional grocers who survive through the rat race have shown not only innovative strategies but also astute international expansion and adept M&A activity
Retail 100: Uphill climb in retail ranks
ECR
Many small and medium-sized companies in Europe have failed to take advantage of the benefits of efficient consumer response (ECR) and category management (CM) because of concerns about the cost of data analysis.
R&D
The latest packaging innovations were on show in Cologne last April at Interpack 2005. Ease of use, ‘ready to eat and drink’ and extended shelf life were some of the major trends at the world’s largest packaging fair.
Packaging trends: Call for convenience
Country Profile
With an economy in recession and discounters gaining market share, Italy hardly seems an interesting retail market. However, its quality-sensitive population of 58 million and a retail sector that needs further modernisation, offers potential that attracts foreign retailers, especially from France. These are largely responsible for Italy’s retail restructuring and they hope to reap the fruits of their efforts once the economic tide turns.
Italy: Retail modernisation with help from abroad
Industry Profile
When A.G. Lafley took over the helm at Procter & Gamble (P&G) in 2000, he not only steered the company back into its core activities but also returned to the P&G mantra ‘the consumer is boss.’ Acquiring Gillette for US$75 billion in January this year not only marked the company’s largest acquisition ever, but also added a new dimension to the strategic moves of the iconic consumer goods maker.
Food Watch
As retailers brace themselves for more cutthroat grocery pricing, declining margins and increased competition from every retail channel, many chains are turning to an old friend to help pull their balance sheets out of the competitive fire - non food.
For decades, pricing was more art than science. This pre-technology age provided little in the way of hard data to support informed pricing decisions. Times though have changed radically and retailers now have access to a wide technological arsenal that is, however, not yet being put to full use.
The art and science of retail pricing
Food Buying
Faced with expanding international operations, grocery retailers expect their suppliers to establish competent international key account management (IKAM) organisations. And most suppliers meet their demands. However, some suppliers complain that grocery retailers still offer too little in return for their international key account management efforts.
International key account management
Instore
Although ergonomics has yet to gain the label of ‘top priority’, some food retailers have shown that fulfilling ergonomics in the workplace translates into good business. Already equipment designers and a few retailers in the US and UK are matching words and deeds. However, putting ergonomics in the retail floor requires not only rigorous planning but also the right timing.
Fresh Foods
Potatoes are a key staple in diets across the world, although consumption rates do vary in each market. Worldwide, potato production is increasing and is of key importance in developing economies, with China and India among the world’s top producers of fresh potatoes.
Retail Profile
Within five years Carrefour doubled in size, but its share price was cut in half during the same period. In the last three years share price performance was –26 per cent. Since 2000, Carrefour lost in its home market France an average of 0.8 of a point market share per year. In the first half of 2005, it claims to have regained some market share but clearly much still needs to be turned around at Carrefour.
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