Retail Disruptors & Their Effect on Private Brands

OCTOBER 2019 Global Retail Brands

RETAIL DISRUPTORS & THEIR EFFECT ON PRIVATE BRANDS

Anuga 2019

Connected Packaging

PLMA Chicago Preview

www.globalretailmag.com www.vertexawards.org

1 GLOBAL RETAIL BRANDS / OCTOBER 2019

VIEWPOINT

’ve been traveling for business for longer than I care to remember. My first business trip was to Chicago in 1982, people smoked on the flight. And no, it wasn’t a propeller plane and the pilot didn’t yell…Contact! The trip was eye-opening.

But it wasn’t until my first visit to Europe that my “global-citizen” eyes were opened. I experienced new cultures and very different perspectives. For the first time, I really began to question things I learned and assumed were fact. Surprising how many beliefs can be questioned when confronted with real-life alternatives.

I guess I was fortunate that rather than recoil and reject these “differences” I embraced them, seeking to blend the best of both worlds. Out of habit, I always look at both sides of an issue before coming to a conclusion. In that way, I am very like the President of the United States. Yes, this last point is indeed a bit of sarcasm.

So it is with our global eyes wide open that we present this refreshed issue of Global Retail Brands. We’ve updated the look a bit, added some new items and present what we hope will be a magazine that continues to deliver relevant content to a very global private label industry.

I owe a debt of gratitude to many individuals for making this refresh a reality. Ab Menik of Inline Design based in Doetinchem, Netherlands has been “encouraging” me to do this for a while, and his restyling of several pages was our inspiration. Melissa Subatch, our Creative Director, embraced these suggestions, added her own personality and delivered this issue. Finally, Perry Seelert of Emerge suggested and contributed our cover story on disruption. Those who read it will owe Perry for these insights.

We sincerely hope you enjoy this issue and welcome your feedback and suggestions.

Kind regards, Phillip Russo Editor/ Publisher [email protected]

4 GLOBAL RETAIL BRANDS / OCTOBER 2019 BUY YOUR SUCCESS

I Production in our own various production plants

I Integrated quality control through in-house production

I Partner for retail, food industry and vending

I Tailor-made qualities of spray-dried, agglomerated, freeze-dried coffee

I Wide range of individual solutions for our clients

I Individually designed packaging options

Please visit us at ANUGA 5 – 9 October 2019 Hall 7.1, Booth D036 E039

DEUTSCHE EXTRAKT KAFFEE GmbH Cafeastraße 1 � 21107 Hamburg � Deutschland � Tel. +49 (0)40 753040 � [email protected] � www.dek.de

Anzeige_Broschuere_210x297+banner.indd 1 29.08.19 13:27 CONTENTS GLOBAL RETAIL BRANDS I OCTOBER 2019 I VOLUME 7 I NUMBER 3

56COVER STORY 76

RETAIL DISRUPTORS & THEIR EFFECT ON PRIVATE BRANDS

64E-COMMERCE

DEPARTMENTS EXECUTIVE BRIEF COLUMNS SERVICES

4 Viewpoint 24 EUROPEAN RETAIL 68 Christopher Durham 76 Global Trade Fairs From LZ Retailytics 12 Contributors Unexecuted Strategy is 82 Advertiser’s Index Just Wishful Thinking Next Issue Highlights 16 Trade Fair Calendar 18 Notable FEATURES 69 Delfim Santos 76 Global Trade Fairs Emerging Global Flavors 56 COVER STORY Spark Innovation Living in the Age of Disruption 70 Karen Surdenik The Impact of E-Commerce 64 E-COMMERCE Disrupting with 72 Uma Kannappan Connected Packaging E-Commerce Content Drives Sales

74 Austin Sniezek Craft Beer and Wine Meet Convenience

6 GLOBAL RETAIL BRANDS / OCTOBER 2019 CTS2019-Global Retail.qxp_Layout 1 8/15/19 12:13 PM Page 1

PLMA’s 2019 Private Label Trade Show StoreBrandsMake Things Happen

For Retailers Store brands build your image. They define who you are.

For Manufacturers They open the door to an exciting world of business For Everyone opportunities. Store brands separate you from your competitors!

17-19 November • Chicago Visitor registration is now open. Telephone +1 212 9723131 or online at www.plmaregistration.com Presented by the Private Label Manufacturers Association BOLOGNA JANUARY 2020 15-16 an event by with the patronage of

www.marca.bolognafiere.it MARCA 2020 TECHNICAL SCIENTIFIC COMMITTEE

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Ad_MARCA2020_420x297_EN_GRAug19.indd 1 27/08/19 13:57 OCTOBER 2019 / VOLUME 7 / NUMBER 3 OF 4

Phillip Russo EDITOR / PUBLISHER [email protected] Jacco van Laar EUROPEAN DIRECTOR [email protected] Melissa Subatch CREATIVE DIRECTOR [email protected] Andrew Quinn DIGITAL DIRECTOR S��, t�u�� , tas�� ea��i�� [email protected] Sabine Geissler GREENTASTE.IT Italian Business Development [email protected] Luisa Colombo Italian Business Development [email protected]

CONTRIBUTORS Delfim Santos Daymon LE RENDEZ-VOUS DE LA CRÉATION ALIMENTAIRE [email protected] Uma Kannappan THE FOOD CREATION MEETING SGK Christopher Durham My Private Brand [email protected]

th th Denise Klug LZ Retailytics 17 - 18 MARCH 2020 [email protected] PARIS PORTE DE VERSAILLES HALL 7.1 Tom Prendergast PLMA [email protected] Perry Seelert Emerge [email protected]

All rights reserved under the Library of Congress. No part of this publication may be r eproduced 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 4 times a year.

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CONTRIBUTORS

MARIA DUBUC TOM PRENDERGAST Marketing By Design, President, Big Red Tom is the Director of Research Services Rooster, Vice President, Maria is a 25 year for the Private Label Manufacturers pioneer in creative management, Maria’s Association (PLMA), based in the key talent is to combine a career’s worth company’s New York headquarters. His of branding experience into something responsibilities include gathering news personal and unique for each and every client. Smart & Final, and seeking trends impacting the global private label and The Home Depot, 7-Eleven, and PriceSmart are among the retail industries, analyzing and sharing that information retailer programs she currently runs. with the member companies of PLMA around the world. Previously he worked at NBC News as a News Assistant for CHRISTOPHER DURHAM the local New York NBC affiliate. Founder, My Private Brand and The Velocity Private Brand Conference. DELFIM SANTOS Christopher Durham is an author, Head of Growth and Customer consultant, strategist and retailer with Relations, Daymon close to 20 years of real-world retail and Delfim Santos is part of Daymon corporate experience creating, launching and building International Leadership team since numerous billion dollar Private Brands. My Private Brand, 2013. He leads the Growth and Customer seeks to drive the changing Private Brand landscape, Relations team based in the International Development focusing on the emerging art and science Center. He is also the Operating Partner for Russia, Middle of Private Brand management. East, Portugal and Czech Republic. Within the past 6 years, Delfim has led the Global Sourcing & Product Development teams and has overseen business operations in several UMA KANNAPPAN countries such as Angola, Kuwait and Croatia. Global Product Director, e-Content, SGK, brings over 20 years of experience in developing and implementing marketing, PERRY SEELERT digital and e-commerce strategies and A retail branding and marketing expert, technologies to create omnichannel with a passion for challenging conventional customer engagement. Her experience includes working strategy and truths. Perry is the Strategic extensively with clients in various industries and sectors, Partner and Co-founder of Emerge, a including consumer products, retail and technology. She strategic marketing consultancy dedicated has also worked with The Consumer Goods Forum and to helping Retailers, Manufacturers and Services grow other industry bodies to provide thought leadership for CPG exponentially and differentiate with purpose. manufacturers and retailers as they collaborate to create mutual value, foster innovation and drive growth. AUSTIN SNIEZEK For the past 5 years, Austin has worked as Project Manager for Marketing by Design (MBD), a branding and packaging design DENISE KLUG agency specializing in high volume retailer Senior Retail Analyst at LZ Retailytics programs. At MBD, Austin has experience in covering German, Austrian, Swiss as well numerous packaging programs. Ranging from high-volume as Benelux grocery retail. Her fields of production rollouts to SKU-by-SKU creative designs. MBD’s expertise lie in discounters, private label and proven record for creating intuitive design systems and rolling health & beauty retail. Prior to her current out more than 10,000 SKUs each year gives Austin ample position, she worked for five years as an analyst for Planet reasons to boast about what they offer. Retail and was head of the Modern Grocery Distribution team in the Frankfurt office. Denise speaks regularly at various international retail conferences. KAREN SURDENIK, serves as the e-Commerce and Social Media Manager for Paramount Roasters, KARA MIENCIER in Lansing, Michigan. She has worked in Kara Miencier, Private Brand Sales a number of sales and marketing roles Executive for Paramount Roasters, has for over twenty years; has extensive a passion for store brands and the experience in data-based marketing receiving high-achiever coffee industry. As a Board of Directors awards for both implementing programs for new revenue Member for Women Impacting Storebrand streams, and exceeding ROI goals for targeted campaigns. Excellence, Kara finds great value in the diversity and By implementing focused marketing strategies, Paramount inclusion mission of WISE and bridging the experience Roasters continually experiences double-digit e-Commerce gap between generations. sales growth. Karen, once a dedicated runner, is now a passionate cyclist and enjoys two-wheeled touring vacations whenever possible.

12 GLOBAL RETAIL BRANDS / OCTOBER 2019 C

CMY

BOSTON | PHOENIX | SAN DIEGO | CHINA | UK

TRADE FAIR CALENDAR

OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY 2020 5 - 9 12 – 15 10 – 12 2020 Anuga Wabel Grocery, Wine Shanghai 12 – 14 2 – 5 Koeln Messe & Spirts, Drinks, Private Label Fair NRF 2020 ISM Cologne Koeln, Germany Sweets Summits “World of Private Label” Javits Convention Center Koeln Messe www.anuga.com Hilton Charles de Gaulle Pavilion New York, NY USA Cologne, Germany Airport Shanghai New www.nrf.com/ www.ism-cologne.com 16 - 17 Paris, France International Expo retail-events Wabel Home, Beauty & www.wabel.com Center 10 – 14 Personal Care Summit Shanghai, China Prodexpo Hilton Charles de Gaulle 12 – 15 www.plmainternational.com Expocenter Fairgrounds Airport Cosmoprof / Cosmopack Moscow, Russia Paris, France Asia www.prod-expo.ru/en/ www.wabel.com Hong Kong Convention Center 12 – 15 21 – 23 Hong Kong BIOFACH Velocity Europe www.cosmoprof-asia.com 15-16 Exhibition Centre Myriad Hotel Marca by BolognaFiere Nuremberg Lisbon, Portugal 13 – 16 Bologna Fiere Nuremberg, Germany www.mpbvelocity.com Vietnam Food Expo Bologna, Italy www.biofach.de Saigon Exhibition & www.marca.bolognafiere.it Convention Center 18 – 21 Ho Chi Minh City, 19 – 21 Private Label Vietnam Winter Fancy Food Show Trade Show Japan www.foodexpo.vn/en Moscone Convention Tokyo Big Sight Center Tokyo, Japan 17 – 19 San Francisco, CA USA www.jma.or.jp/pb/en/ PLMA’s Private Label www.specialtyfood.com Trade Show 22 – 25 Rosemont Convention ToyFair Center Jacob K. Javits Center Chicago, IL New York, NY USA www.plma.com www.toyfairny.com

16 GLOBAL RETAIL BRANDS / OCTOBER 2019 FOR THE 50th TIME IN COLOGNE

WELCOME TO ISM – THE WORLD‘S LARGEST TRADE FAIR FOR SWEETS AND SNACKS COLOGNE, GERMANY 02.02.–05.02.2020 www.ism-cologne.com

Koelnmesse GmbH Messeplatz 1, 50679 Köln, Germany Tel. +49 1806 002 200, Fax +49 221 821 99 1220 [email protected]

ISM_2020_Anzeige_Global_Retail_Brands_210x297mm_Intl_GB.indd 1 06.09.19 15:33 NOTABLE SUPERMARKET WINES

U.S. Supermarket Wines Are Catching Up With European Counterparts U.S. supermarket wines, once considered to be poorly made and rarely worth drinking, scored a major success at the 2019 International Salute to Excellence awards for private label in Amsterdam, winning seven top honors in the category.

The Award-Winning This is the best performance ever Retailers and Wines: recorded for wines sold exclusively by U.S. supermarkets, more than doubling the number of 2018 winners. The showing demonstrates that U.S. private label wines continue to get BEST QUALITY: closer to their European counterparts Kirkland Signature Bordeaux in terms of value and quality – _ especially among wines costing less Supérieur 2016 (Bordeaux, $10) than $15. This matters because wines BEST VALUE: that are sold exclusively by European Kirkland Signature Asolo supermarkets have long been Prosecco NV (Italy, $10) considered among the best wine in the world at combining those two things.

“Don’t overlook private label store wines,” said Washington Post wine columnist Dave McIntrye, one of 18 BEST QUALITY: international judges who participated Trader Joe’s Platinum Reserve in the 2019 wine awards program. Pinot Noir 2017 “These were good value, high quality (Russian River Valley, $15) bottlings. Some stores are doing a great job sourcing really good juice” BEST VALUE: Trader Joe’s organic Grower’s Reserve Wines were judged in 25 categories by The organization was founded in 1979 Merlot 2017 (California, $5) varietal, style, and appellation, and each to promote retailer’s store brands in category was judged for best quality foods and beverages, as well as home and best value. The 18 men and women and health products. PLMA sponsors who judged the competition came from two trade shows annually in Chicago around the world, and included Masters and Amsterdam. of Wines, sommeliers, winemakers, wine writers, wine educators, and retailers. They judged 350 wines from BEST QUALITY: 40 retailers in 11 countries. Scarlet Path Zinfandel 2017 (Lodi, $8), To see all results for the 2019 judging, Outlander Cabernet Sauvignon visit www.plmasalute.com/wine- 2016 (Paso Robles, $9) awards. The international Salute to Excellence Wine Awards are a BEST VALUE: competition sponsored by the Private Evanta Malbec 2017 Label Manufacturers Association, with (Argentina, $4) offices in New York and Amsterdam.

18 GLOBAL RETAIL BRANDS / OCTOBER 2019 Our team looks forward to working on your private brand coffee program!

Steve Morris Angelo Oricchio President / COO Chairman / CEO 517.853.2419 517.853.2404 [email protected] [email protected]

www.globalretailmag.com 19 NOTABLE PLMA CHICAGO TRADE SHOW

PLMA Chicago Trade Show Continues To Serve Growing Interest In International Own Brands Products

On store shelves across the U.S.A. Further reflecting the changing and online, store brands are making tastes, preferences and values of things happen, driving sales growth, today’s shoppers, a wide range and capturing the attention of of cannabidiol (CBD) and hemp- American shoppers. That is why derived product formulations are virtually every major U.S. retailer driving interest and attention at will be coming to PLMA’s 2019 PLMA’s 2019 trade show, as are PrivateLabel Trade Show, 17-19 plant-based meat-alternatives, fair November, in Chicago. trade products and sustainably sourced ingredients and packaging, Today’s retailers are more focused wines & spirits, and an ever- than ever before on expanding their expanding assortment of natural and own brands in response to the latest organic, kosher and halal foods. consumer trends, and some of the

More Than 10,500 Attendees On the nonfoods side, international appeal has also been an important factor for consumers in categories that range from cosmetics to home and kitchenware products. Year after year, procurement teams from virtually every U.S. supermarket and drug chain, mass merchandiser, wholesale club and discounter attend the PLMA show, as do online, decade’s most important trends convenience, specialty retailers and internationally are gaining greater foodservice distributors. Buyers and currency with American shopper’s visitor registrations last year event as well. surpassed 5,000 and total trade Among the top draws for younger show attendance exceeded 10,500. consumers are a variety of ethnic cuisines and international specialties for the frozen and refrigerated departments, as well as new and interesting imports that are packaged for the ambient sections of the store

20 GLOBAL RETAIL BRANDS / OCTOBER 2019 Among the other trending topics 50 Countries Exhibiting for own label in the U.S. to be Exhibitors from over 50 countries addressed by PLMA speakers have participated for many years and seminars: among the more than 1,400 • Sam Mayberry, the former companies located throughout the head of product development for food and non-foods areas of the Amazon retailconsumables and show floor at PLMA Chicago, as well private label, will speak on the All suppliers exhibiting at PLMA as in country pavilions from Great topic of the competitive battle are also invited to submit their Britain, France, Italy, Spain, Holland, for the last mile to the consumer newest and most innovative products Denmark, Belgium, Estonia, Kosovo, and how ecommerce is continuing to be featured in PLMA’s New Product Greece, Turkey, Thailand, Korea, to change the rules of retail. Expo. New Product Expo is a part of Pakistan, China, Colombia, Brazil, PLMA popular Idea Supermarket®, Peru, Chile, Canada and more. • Virginia Lee, CBD research which showcases own brand programs manager at Brightfield Group, These international exhibitors have from retailers around the world. a leading source of market been among the largest contributors intelligence for the CBD and For information on attending to the growth of PLMA’s Chicago cannabis industries, will speak or exhibiting at PLMA’s trade show in recent years. And about CBD formulations that Private Label Trade Show, as more and more international are now only beginning to appear contact PLMA +1 212 972 3131, suppliers and products pour into the in supplements, pet products and email [email protected], or U.S. private label marketplace their nonfoods, and which are widely visit www.plma.com. presence is expected to be felt even expected to follow into food more for 2019. products. Nothing captures the dynamic spirit • Jim Wisner, president of Wisner of U.S. store brands better than Marketing Group will report on PLMA’s annual event. Own brands how retailers will need to adapt accounted for virtually half of all their product assortments to growth last year in physical stores, rapidly expanding consumer where sales continue to climb at a rate interest in plant-based foods, four times that of the national brands. on the heels of recent rollouts of In addition, private label has emerged alternative meat offerings by as “the new challenger brand” in major U.S. fast-food chains like e-commerce, according to a June Burger King, KFC and others. 2019 report by Nielsen.

www.globalretailmag.com 21 NOTABLE RETAILERS IN THE NEWS

Target Unveils Good & Gather: New Flagship Owned Brand Featuring High-Quality, Great-Tasting and Affordable Food and Beverage Products our way of helping even the most time-strapped families discover the everyday joy of food.”

Target announced the introduction of want great-tasting food they can feel Good & Gather, Target’s largest owned good about feeding their families,” As Target’s flagship food brand, Good Food & Beverage brand. Grounded says Stephanie Lundquist, executive & Gather will include a number of in guest research, the flagship brand vice president and president, Food & product extensions including kids, will offer a wide range of food and Beverage, Target. “We saw this as a organic, seasonal and signature lines. beverage products that prioritize huge opportunity for Target to help. Over time, Good & Gather will phase taste, quality ingredients and ease, at So our team got to work on our most out Target’s existing Archer Farms a great value. Good & Gather will be ambitious food undertaking yet, and Simply Balanced food brands available in stores and online on Target. reimagining our owned food brands and reduce the number of product com for same-day delivery beginning to serve up convenient, affordable offerings under the Market Pantry September 15, 2019. options that don’t cut corners on brand, simplifying the food and “Our guests are incredibly busy and quality or taste. Good & Gather is beverage shopping experience.

Traditional Supermarkets Are Losing Shoppers, But Kroger, For One, Is Fighting Back According to an article from picked up share to represent 20% and Andria Cheng, Senior Contributor, over 9% of U.S. food and consumables Retail, Forbes.com, “On American purchases last year. Dollar General consumers’ grocery shopping list, and other dollar store chains, which one item is increasingly missing: have added coolers and doubled down traditional supermarkets. on produce and other grocery sales, have also picked up share. Those stores’ share of U.S. food and Teeter and Ralphs, on Thursday consumable products consumption The shifting consumer behavior reported its best quarterly comparable last year dropped 2.5 percentage and increased competition have sales since its revamp plan began. points, to 35% of the $1.25 trillion put traditional supermarkets, led Online sales jumped 31%. market, according to Inmar Analytics’ by Kroger, on their toes. Kroger in It said it has expanded grocery pickup 2019 Future of Food Retailing Report, late 2017 started a three-year plan to 1,780 locations and delivery to released Wednesday. By 2023, the to “Restock Kroger,” a key part of 2,225 to cover about 95% of its target analytics firm forecasts, traditional which involves making itself an households. It’s also working with supermarkets’ share will decline to “omnichannel” retailer and meeting European online grocery retailer under 33%. consumer demands how, when and Ocado to build automated warehouses where they want. Where are consumers shopping to fulfill e-commerce orders.” instead? Supercenters led by Walmart Kroger, which operates about 2,760 To read the full article, visit: and wholesale clubs like Costco have stores under names including Harris www.forbes.com

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its in-house expertise will have to fight Edeka to Launch with overly strong family companies Local Proximity Organic Concept dm and Rossmann, the competition Formats Take in the organic-only sector is highly By Matthias Queck, fragmented and no real threat to the Lead Research Director & the number one, even if takes a bit In developed markets – like Germany Discounter Expert longer to grow organics the organic or the UK – discounters chip away at way. Anyway, the biggest retailer for catchment areas of large formats. In

organic foods in Germany still is: … contrast to that in Central & Eastern discounter Aldi! Europe, it is small-sized proximity formats that expand into more rural locations with an offer catering to Big Box Loses consumers with a more traditional Ground in Central mindset. & Eastern Europe Profi in Romania, Dino in Poland and Studenac in Croatia – all are By Sebastian Rennack, domestic single-country minimarket Senior Retail Analyst operators who have been growing Germany’s leading grocer Edeka is at double-digit figures, despite the preparing to launch its own organic & CEE Expert presence of large multinationals. food store chain, dubbed Naturkind. Their assortments feature a full food The move comes after it has opened its range, often procured from medium- first drugstores in co-operation with sized domestic producers. Most of the small family company Budni. concepts not only emphasize national Although it comes as no surprise that and local origin of the goods, but also Edeka is finally also trying to get a include serviced fresh counters. Dino foothold in the lucrative and growing and Studenac even run their own organic food market, it is remarkable meat processing factories. that – unlike for its drugstore venture In the past, this strategy has proven – the co-operative is going it all alone. highly effective in retail frameworks It is doing so with help from organic of the emerging markets, wholesalers but without the store Tesco in Poland announced plans to constituting a major differentiation expertise of an existing retailer in the downsize all its hypermarkets to a point against discount giants such as sector, of which there would be several. more compact format. Over the last Aldi and Lidl. However, this might Key competitor Rewe Group tried five years, the retailer has already change soon. In their metamorphosis it all on its own more than once but closed almost 100 stores in the country. towards the supermarket format, failed so far. Schwarz Group, via Lidl, Now, the average sales areas of the almost all big discount players have wanted to acquire a specialist grocer, remaining 60 big boxes will be reduced started trialling serviced counters: but underestimated the opposition by one-third. According to data from Aldi and Lidl started an unofficial emerging from the ethical conviction of the Polish Ministry of Finance, Tesco’s test in selected Hungarian stores those who would not want to sell off to net revenue in 2018 went down by 2.1 while Polish discount market leader an ‘evil’ discount retailer. percent while earnings before taxes Biedronka officially announced Indeed, the romantic image of a fell to -3.8 percent from revenue after plans to open counters in 70 out of sustainably managed corner store for slipping into the red in 2017. its almost 3000 stores by the end of organics conflicts with a 59-billion- The demise of the old big box format, the year. German discounter Penny euro retail conglomerate, which is what used to be a phenomenon for (Rewe Group) is experimenting Edeka. But given the lack of new mature markets only, is now reaching with concessionaire butchers and business fields for Edeka – the the emerging markets of Europe. piloting own service departments in only major German grocer without According to LZ Retailytics data, the the Czech Republic and in Romania. operations abroad – it simply has market share of hypermarkets (with If the results of these pilot projects to give it a try. Relying on the food a sales area larger than 2,500 sq m) will justify further roll-out, this expertise of its own independent in organised retail in the region will will be one more factor that will shopkeepers may help. Unlike in the decline from 23.6 percent end of 2018 significantly accelerate big box‘s decline in CEE. case of drugstores, where Budni with to 19.8 percent by 2023.

24 GLOBAL RETAIL BRANDS / OCTOBER 2019 growth, either by expending relevant the brand – or European distributer Retail Food product categories at their over- Zandbergen – appeared to be Specialists Grow sized big boxes, launching dedicated overwhelmed by the huge demand. banners of their own, or acquiring Customers also wondered if Lidl was By Gildas AÏtamer, already established players. Earlier not smart enough to better predict Senior Retail Analyst & this year, liquor store operators that this product was a bestseller. France Expert Krasnoe & Beloe (ca. 7,400 stores), But Lidl wouldn’t be the largest retail Albion-2002 (4,200 stores) and chain in Europe (by sales) if it was Russian retailer Dixy announced not also one of the most strategic their plan to merge, potentially players. creating Russia’s third largest grocery retailer, reminding once again that the potential of these food specialists should not be overlooked.

Case Study:

Organic and Wholefood stores as well How Lidl got the as Beer, Wines and Spirits chains; most out of Beyond Frozen Food operators and other retail Food Specialists are thriving Meat’s German in Europe. The 15 largest operators It had the chance to use the Beyond in the channel account for 1.9% of market entry Meat trial to identify the demand, the European grocery market in By Denise Klug get huge media coverage (there is no 2018 and will reach 2.4% by 2023, Director of Product & such thing as bad publicity) and lure LZ Retailytics data shows. This Private Label Expert in excited shoppers of the perfect represents a combined EUR13.7bn in target groups into its stores (even if additional retail sales across Europe. fake-meat patty shelves were empty – To put this into perspective, the they actively entered the outlets!). minimarkets and hypermarkets are expected to post a EUR25.7bn and Directly after Aldi announced it was EUR27.4bn increase during the going to launch an advanced meat- same period. free burger patty, Lidl got there first and surprisingly put its own private A good example of food specialists label copycat on the market – four nibbling away at market shares can days earlier than the arch-rival. be seen in France, paradoxically the home of “everything under one roof” The packaging of its “Beyond Burger” looks like a carbon copy of the brand. hypermarkets. There, three food When trendy vegan burger patty And also, just like the brand, it is specialists already saw sales soar producer Beyond Meat hit the German displayed next to meat products and above the EUR1bn milestone: Picard market earlier this year, it decided not in the vegetarian section which (frozen food), Biocoop (organic to do its retail debut at Lidl. A clever helps to be seen as a direct alternative food), and Grand Frais (fresh move which is already justified by the by flexitarians. A good plan, as this produce). The last two posted sales sheer size and footprint of the massive group is growing rapidly and will up double digits last year. They will discount chain. see their combined market shares become even larger in the near future. grow from 1.5% in 2018 to 2.1% in Lidl first announced the impermanent 2023, representing a footprint in the special offer extensively via all social Your direct line to French retail market similar to that of media channels creating a huge stir. LZ Retailytics discounter Aldi. But then, the meat substitute was Food Retail Experts: sold out within hours, resulting in a [email protected] Very much like suppliers looking for frustrated outcry of shoppers. new distribution channels, full-range grocers are looking to tap into these Planning to launch a European expanding grocery territories for production facility not until 2020,

www.globalretailmag.com 25 NOTABLE ANUGA, COLOGNE - 5-9 OCTOBER

100 Years of Anuga

Willy Brandt visits Anuga in 1973.

With around 360 exhibitors and 40,000 visitors, the first Anuga in Cologne was the best event since its inception, which is why the organisers opted for Cologne as the permanent location. In 1951, for the first time over 1,200 exhibitors from 34 countries took part, whereby Anuga ultimately established itself as the central international business platform for the food industry in Cologne scheduled every two years.

In 2003, the Anuga “10 trade shows under one roof” concept was implemented. Today, with 7,405 exhibitors and around 165,000 trade visitors from the trade and out-of-home In 2019, Anuga is celebrating its market, Anuga has developed into the leading global trade fair for 100th anniversary - a remarkable food and beverages. sign of its long-term support of the industry. The first Anuga Anuga Frozen Food: took place in Stuttgart in 1919 with the participation of around The international frozen 200 German firms. Based on food industry meets up the concept of an annual touring in Cologne exhibition, further events of Frozen products make life easier and international cuisine is no longer the General Food and Luxury imaginable without them. In the scope Exhibition were staged, among of Anuga Frozen Food, Anuga will from 5 to 9 October 2019 once again others in Munich in 1920, in be offering a concentrated business Berlin in 1922 and in Cologne platform for the suppliers and trade buyers of the frozen food industry. in 1924. In Halls 4.1 and 4.2, of Koelnmesse,

26 GLOBAL RETAIL BRANDS / OCTOBER 2019 Events for the frozen food industry in the scope of Anuga: As the partner of Anuga Frozen Food, with its exhibition stand the dti forms the central point of contact for the frozen food industry in Germany in Hall 4.2, B11/C10. The international around 600 exhibitors will present workloads. Frozen food products are and German guests will thus be the wide spectrum of products and especially indispensable in the out- offered a comprehensive offer of services of the frozen food segment of-home market and are recording information and a communicative to the retail trade and to the still high growth rates. Pre-portioned “frozen food lounge”. fast growing food service segment. and ready-prepared components Around 7,500 exhibitors from more ensure the highest safety, flexible The dti is for the first time also than 100 countries are expected to preparation and portioning and represented at the DEHOGA Food participate at Anuga in Cologne. relieve the burden on the staff in the Service Marketplace in Anuga professional kitchens. Frozen food Culinary Concepts. The dti will supports the food service sector with be presenting its digital offer of Themes and trends its culinary core competence, because information for chefs, the TK-PEDIA In general, the significance of frozen many tailor-made concepts and knowledge database. food products for the consumers products offer the right answers to is growing. The German Frozen meet the high demands of the guests. Food Institute (dti), which has been the exclusive partner of Anuga Guided Tour Innovation Frozen Food and Anuga Culinary in Frozen Food Concepts since 2013 and which will also be represented this year in Sunday, 6 October 2019, Hall 4.2, confirms this as well. The 4:00 p.m. exhibition stand of the dti serves as The Anuga VIP offer also includes a the central point of contact for the Frozen Food Trend Tour for the first frozen food industry in Germany time, which is being jointly conducted and presents current shopper by Nutrimarketing and dti. Current insights into frozen food products. international product trends will be The strongest trends on the frozen highlighted. It is necessary to register food market are convenience and in advance. health. Healthy eating is en vogue among the consumers and is being achieved through innovations from the sections vegan, vegetarian and free-from products.

The trend towards meat substitute products wouldn’t be conceivable without frozen food, the new meat alternatives are at home in the frozen food department. Convenience remains to be very important for the consumers. Ready-made meals and bakery products satisfy the wish for time-saving options and reduced

www.globalretailmag.com 27 NOTABLE FINGER FOOD

Let’s Talk About Snacks! Creative ideas for finger food and snacks come out of the Frostkrone Food Group ateliers at five different locations where they are then immediately developed and produced. The wide selection is a veritable kaleidoscope of delicacies ranging from dainty, deluxe finger food specialities through trendy snack ideas featuring exquisite creations of cream cheese right up to practical Pizza Pockets for the oven and the microwave, not forgetting of course the huge variety of potato-based snacks.

The products can be found in locations all around Europe, in the USA and throughout Asia in supermarket freezers, at the discounter store and also in all kinds of food service outlets and snack stations and sandwich bars. They are mostly available under a brand name in deep freezers and at fresh food counters or deli shops. Alone in 2018 this snack specialist produced more than 24 tons of foodstuffs at his locations in And from the fresh food counter we The Frostkrone Food Group Germany, France and the USA. have the chilled Chocolate Cups in comprises the following companies: the variations of Cookie, Cheesecake & the German frostkrone Tiefkühlkost The finger food & snack category Strawberry, Stracciatella and Passion GmbH and Bornholter Käsevertriebs of foodstuffs is fast moving and Fruit & Peach - surprises do not come - und Produktions GmbH, Varenne ephemeral because the consumer is any sweeter or more wonderful. Gastronomie and Piz`wich Europe, always looking for change and a new both of which are located in France, flavour of the month. For that reason The Breakfast Pizza Pockets and also the US-American business it is vital that fashionable trends find are available for preparation in the Rite Stuff Foods Inc. their way into deep freezers. Here are microwave or in a conventional some examples of such new products: oven. Filled with a hearty helping of www.frostkrone-foodgroup.com scrambled egg, spicy, full-flavoured Anuga Cologne: Maxxarella is the longest-lasting Cheddar cheese and gently sautéed 5th-9th Oct. 2019 kind of cheese delight you can imagine potatoes, these are the answer to Hall 4.2. Stand Nr.:C-30 and it can be held just between two all questions on rustling up a swift fingers. Thanks to an innovative breakfast. And because of their production process, the mozzarella practical shape and easy preparation, can be incredibly stretched inside its they are ideally suited for sale in bake- breaded coating. The cheese gently off stations, petrol stations and kiosks. melts to form a delicious waterfall enveloped in perfectly seasoned, crispy, golden breading and is served as a little piece of heaven.

28 GLOBAL RETAIL BRANDS / OCTOBER 2019 Finger Food! READY IN A FLASH!

Streetat its fbeoodst

Delicious snacks from all over SPICY the world for your tasty turnover TATOR TOTS

STREETFOOD STYLE

CREAMY RIKAKATS

See for yourself by coming to visit us in Cologne! 5-09.10. 2019 ANUGA Cologne Hall 4.2 www.globalretailmag.com 29 www.frostkrone-foodgroup.com Stand C-030 NOTABLE MINI STREUSEL

First Savoury. Now also Sweet. Frozen Foods Specialist Galileo Extends its Product Range

Galileo has long been attracting attention in the industry for years with its tasty savoury innovations, which include Bruschetta, MiniBurgers and Pizza Buns. Many of these products have disrupted the market in recent years while consistently titillating customers’ taste buds. Nor should we forget Mini Pizzas, which have propelled the firm from Trierweiler, Germany to the status of number one in the private label category.

Galileo also took this path with its new Pizza Donuts, which were launched in the first half of this year as its latest Street Food Hero. They combine a handy doughnut format with typical pizza toppings for unique flavour experiences. So far five varieties are available in packs of two: Salami, Margherita, Bacon, Chicken and Three Cheeses.

Today when Stefano La Vecchia talks about his latest new creations – which are sweet, a first for him – he knows that the recently launched The Macarons are available in the ‘Petit Café Galileo’ sub-brand following flavours: Cassis, Framboise, has a lot of potential in various Mocca, Fruit de la Passion, Chocolat, international markets. They also Citron and Noix de Coco, each of extend the label’s range of savoury which comes in boxes of eight or 24. deep freeze specialities in a new taste direction. With these two products, Galileo is once again underscoring its They are the ‘Mini Streusels’ and reputation as an innovation leader. If ‘Macarons’, both of which are actually you’re tempted to try them yourself, beloved classics. They are now don’t miss this year’s ANUGA fair finding their way into the frozen food in Cologne! aisle in new guises. The round Mini Streusels are extremely yummy small The Macarons also leave no doubt Be warned, though – cakes made with soft yeast dough about Galileo’s passion and expertise they’re addictively good. and topped with fine butter streusel. as a frozen food specialist: these You can find Galileo at They are available in the following irresistible taste treats are ready to Stand A48 in Hall 4.1. versions: Classic, Apple, Raspberry, eat in minutes. They are ideal as Blackcurrant, and Apple-Vanilla, all desserts, for nibbling with coffee, of which come in packs of nine. or simply as in-between snacks.

30 GLOBAL RETAIL BRANDS / OCTOBER 2019 MINI STREUSEL

SAVOURY first then sweet In addition to our successful Street Food Heroes, at ANUGA 2019 we will present ANUGA 2019: two new seductive frozen specialities Where to find us under the Petit Café Galileo heading: HALL 4.1 our Mini Streusel topped with fine butter streusel and our irresistible Macarons. STAND A48 See you in Cologne! Pizza Donuts www.galileo-food.de

GALI_Anz_Global-Retail-Mag_A4_RZ.indd 1 22.08.19 18:06 NOTABLE FROZEN FINGER FOODS

NewForrest The Finger Food Specialist

NewForrest is a leading Dutch manufacturer of frozen finger foods. We believe finger foods will shape our future eating patterns. Our focus is to develop this market.

A major part of our business is developing and co-manufacturing finger foods for other companies, so we’ve invested heavily in the necessary plant and facilities. We co-manufacture for a number of internationally recognised food companies. We also supply private label finger foods to several renowned retailers.

To inspire you, we’ve developed new finger food inspiration especially for Anuga. We kindly invite you to taste our ‘Cheese classics’ and ‘Veggie favourites’ at our stand. Meet our product development team and tell us your finger food wishes! We are pleased to co-manufacture your products for Oven, Airfryer or Deep Fryer.

WHERE NewForrest Frozen hall 4.2 Stand C-069 www.newforrest.nl/en

Come and see us! 5-9 October 2019 Koelnmesse Cologne, Germany Frozen hall 4.2 Stand number C-069

32 GLOBAL RETAIL BRANDS / OCTOBER 2019 COME AND VISIT US at Anuga 2019 To taste our ‘Cheese classics’ and ‘Veggie favourites’

What Meet our product development team and tell us your fingerfood wishes. We are pleased to co-create your Private Label products for Oven, Airfryer or Deep Fryer.

Where NewForrest Frozen hall 4.2 Stand number C-069

www.newforrest.nl/en NOTABLE GUILT-FREE INDULGENCE

Modern Enjoyment – Indulgence Plus from

Following the trend of more healthy diet, more and more people are living more consciously! Frequently described as “soft health” in studies, the motto is conscious pleasure. This describes how customers wish to see a combination of well-being and enjoyment. Must-haves for young clients. The new erlenbacher free from range for a young target group: trendy products in a young, refreshing look with added value accompanied by nutritional awareness. New gluten free varities : Berry-Skyr Slices with a smooth vanilla skyr cream garnished with fruity-fresh blueberries and raspberries and a crispy nut topping based on a gluten- free almond base. Apricot-Lime Slices with a fluffy muffin base, topped with velvety-soft apricot halves and a mix of lemon & lime mix and crunchiness with mixed nuts. Dark Cherry Slices - two dark sponge cake layers with a cream with black forest kirsch and swirled fruity cherry preparation.

OUR stand no. at ANUGA is HALL 4/A031 www.erlenbacher.com

34 GLOBAL RETAIL BRANDS / OCTOBER 2019 INDULGENCE PLUS FOOD HABITS ARE CHANGING • Berry-Skyr Slices: trendy taste of the new generation • free from colourants, artificial flavours, preservatives, hardened vegetable fats/oil • with creative symphony of fruits and high protein dairy product (skyr) • pre-cut portions, easy handling, frozen TENFR U E L E G

05–09 OCTOBER 2019 HALL 4 • STAND A031 ONCE TASTED – FOREVER TEMPTED www.erlenbacher.com NOTABLE PASTA SAUCES & CANNED VEGATABLES

Leading Italian Producer in the Canned Food Sector

The Italian company is leader in the canned food sector and boasts leading positions on some demanding foreign markets, where La Doria is a major supplier for mass market retailers

La Doria is an Italian, leading corporation in the canned food sector and particularly in the production of tomato-based products, pasta sauces, canned vegetables, fruit juices and beverages. The company The company’s strengths LA DORIA SPA is the leading Italian producer of La Doria’s strengths can be Via Nazionale, 320 - 84012 Angri canned vegetables and tomato- summarized as follows: (SA) – Campania - Italy based products (peeled and chopped +39.081.5166111 • High quality products, guaranteed tomatoes), the first largest producer www.gruppoladoria.it by quality controls of raw materials; of pasta sauces under private labels and the second largest producer of • High industrial efficiency allowing Cristiano Ermenegildo fruit juices and beverages (the first in cost leadership thanks to high Export Sales Director the private labels segment). technology of process, optimal Phone +39.081.5166221 utilization of the production Mail cristiano.ermenegildo@ A leading position abroad capacity and vertical integration; gruppoladoria.it The company also enjoys leading • Large volumes in order to satisfy positions on some demanding COMPANY DETAILS retailers’ needs in terms of foreign markets, including the UK, Year Established: 1954 quantity; Australia and Japan. It ranks first Ownership: Family business in the English market for tomato- • Wide range of products; Company Certifications: based products and baked beans • Segmentation of the private label Organic, BRC food (gsfs), IFS FOOD, under private labels. La Doria is offer to compete in different ISO 14001:2004, ISO 9001:2008, a major supplier for mass market segments: value, own brand, Kosher, OHSAS 18001, retailers both in Italy and abroad, premium; FSSC 22000 and is specialized in the private labels sector, or the supermarket’s • Innovation of products, size and PRODUCTS DETAILS brands. Approximately 93% of packaging, indispensable in a Categories: Tomato based products, La Doria’s sales are generated via mature market like the canned Pasta sauces, Pulses, Fruit juices and this channel, with clients such as food market. beverages Tesco, Sainsbury’s, Woolworths, • The continuous introduction of Price Positioning: Premium, Whole Foods, Sam’s Club, Morrison, higher value-added and service Mainstream, Discount Waitrose, Asda, Lidl and Ica. products allow to meet market INTERNATIONAL TRADE demands and to improve both In addition to private labels, the SHOWS PRESENCE trade and final customer loyalty; Group sells products under the La ANUGA Cologne Doria brand, which iwhich have been • High level of flexibility through Germany (5-9 October) on the market for about 60 years, La customized recipes, packaging Hall 7- Stand D013a Romanella (for value products), Althea, and service; Bella Parma (for pasta sauces) and • Specialized expertise in the other major Italian and international Private Label market. leading brands (copacking).

36 GLOBAL RETAIL BRANDS / OCTOBER 2019

NOTABLE VISIT AT ANUGA

Leading Supplier QUALITY WITHOUT COMPROMISE DEK never compromises when it of Instant Coffee comes to their products. They buy the and Coffee Drinks most important raw material – the coffee beans – direct from the growers DEK is one of the leading suppliers in the best tropical regions. They of instant coffee and instant coffee offer customers a real competitive drinks to the retail own-brand advantage with their expertise and market. They manage the whole dedication to quality at every stage value chain – from purchasing of of production. Experienced coffee raw materials, production and fully roasters know how to create the best automated packaging (using high- blends and their relationships with Have a Coffee with DEK at Anuga performance machines) all the way suppliers go back decades. From the Hall 7.1 through to distribution. Innovative green bean to professional packaging, Stand D036-E039 product development and modern whether it’s pure, instant coffee, www.dek.de packaging design is a priority for DEK. instant coffee drinks – like cappuccino Maintaining consistent, high quality – cocoa drinks or coffee substitutes, is a core philosophy. Thanks to their they have the right solution for every flexible production facilities, they conceivable product range. can supply customers with exactly the blends they require and in a wide variety of packaging solutions.

• 100% Natural, Vegan, Kosher, Tasty and Healthy Wholegrain and GMO-Free Delicious Dishes • Includes Products that are Gluten-Free Certified

Ready in Just 10 • Ready in a few minutes… Minutes…or less Just add Water Nuova Terra will be showcasing their • Suitable for Hot/Cold Salads, wide range of convenient, ready-to-eat Soups, Risotto and Side Dishes grains and beans at Anuga. Perfect for • Have a Shelf-life of 20 months Visit them at Anuga today’s health conscious, consumer Hall 11.3 who place a premium on convenience – The full range of items will be Stand D 015 these products deliver. in display at Anuga. www.lebonta.it

38 GLOBAL RETAIL BRANDS / OCTOBER 2019 DRIVING RETAIL DIFFERENTIATION, GLOBALLY. FROM CONCEPT TO CONSUMER

The global leader in private brand development.

Brand Strategy, Market & Retail Insights Brand & Product Development Design & Creative Services Demonstrations & Interactions Category Management & Analytics Global Sourcing & Trading Retail Merchandising

Contact the International Development Center for more information: [email protected] Europe | Middle East | Africa | Asia | Latin America NOTABLE PREMIUM CHOCOLATE

Vanini is the premium chocolate brand Italian hazelnut paste filling - and by the Vanini. from ICAM and was created following a Gourmet line, a refined fruity selection lengthy process of selection at plantation where Extra Virgin Olive Oil from at the Very Heart level, resulting in a prestigious range of Calabria lends a creamy softness. chocolate bars and pralines: products Ethical partnerships with our farmers of Chocolate made using exclusive, innovative recipes and direct control over all stages of which offer a novel taste experience. The the supply chain make Vanini truly Vanini range is the outcome of traditional exceptional. skills coupled with extensive research into the best premium ingredients to use Vanini respects the 3P Program: People, in both bars and pralines. Planet and Palate through delivering positive benefits to producer economics, The constant desire for excellence, environment and taste. pursued with passion and conviction by the ICAM founding family, has now In September Vanini will launch new delivered a uniquely sophisticated bars in the Bagua cocoa range, each chocolate based on precious cocoa from characterized by a high cocoa content the Amazon territory in Perù and using and premium quality ingredients carefully selected cocoa beans from from the Mediterranean. The praline Bundibugyo, Uganda. assortment is now also presented in a bag in answer to consumer needs. Two delicious bar ranges are characterized by an intense and persistent cocoa flavor: Bagua, with Discover the Vanini pure passion its single origin Perù dark chocolate for chocolate when you visit selection and Uganda, made up of ICAM at Anuga. certified organic bars, accompanied by Hall 11.2, Italian Collective, crunchy inclusions and sweet and salty Stand E031 flavor notes. For more information, The praline assortment is made up of contact: Samantha Geroli, the Dolce Vita range - four different Export Area Manager at: recipes all based around a creamy [email protected]

40 GLOBAL RETAIL BRANDS / OCTOBER 2019 A PURE PASSION FOR TASTE

The ,,Gourmet,, praline assortment The ,,Dolce Vita,, praline assortiment A dark chocolate shell surrounds a creamy filling, where organic At the heart of this range is an incredibly soft gianduja, Italian Extra Virgin Olive Oil meets hints of fresh fruit made with only Italian hazelnuts, blended with a variety and spicy notes that intrigue. of tasty refined inclusions.

Single Origin Perù - Bagua Cocoa An extraordinarily pure cocoa found only in the Peruvian Amazon forms the perfect base for some unique and exquisite recipes: a high cocoa content enhances the innovative flavour of this incredible origin. www.vaninicioccolato.com

pagina vanini eng 2019.indd 1 13/09/19 17:19 NOTABLE MARKET INFORMATION

Lucart Group 65 Years of Expertise, Research and Technology The history speaks for Lucart: over 65 years of expertise has allowed them to develop the expertise and technology necessary to realise quality products in line with market and environmental allow Lucart to be one of the main process separates cellulose fibres from needs. A journey that today, has led partners for tissue business in Europe. polyethylene and aluminium through Lucart to be a main European player physical-mechanical action without A consistent path following a road in all its reference markets. Just like the use of harmful substances for both map of innovation and distinctivity the past, Lucart will continue to invest man and the environment and they has brought Lucart to be the point of in technology research and in the are not discarded but re-used in other reference for eco-tissue. In 1998 it was reduction of environmental impacts to manufacturing activities. the first company to launch a recycled create quality products in the common paper brand which has evolved step interest of producers, distributors For more information, please after step into Grazie Natural. The and consumers. email Mr. Dario Brandi (Dario. range against any sort of waste and [email protected]) The production capacity is now about significant example of the real circular and visit the web site www. 395.000 tons per year, divided into economy. It’s paper from brick: an “all lucartgroup.com 12 paper machines and 65 converting natural color” paper obtained from lines. The ten production facilities recycled cellulose fibres contained in Italy, France, Spain and Hungary in beverage cartons. The production Join us in Lisboa WITH DISCOUNT & SAVE 20% CODE: GRBVEL

21-23.10.2019 | LISBOA, PORTUGAL | VELOCITYEUROPE.ORG

NOTABLE FROZEN FRUIT SMOOTHIES

SMOOTHIE REBELS® Frozen Healthy Happiness - Goes Global

all freshly frozen at the origin within 5 hours.

Their packaging facility in the Netherlands is situated at the Port of Rotterdam, Europe’s largest seaport. It provides excellent and cost-efficient infrastructure by sea, land and air, allowing them to ship complete assortments of mono fruits, mixed fruits, frozen fruits and fruit & vegetable combinations to their global partners.

RedOrange is fulfiing a wide range of private label contracts for retail and foodservice. For their own Smoothie Rebels®, the range contain 100% frozen fruit or a 100% blend of frozen The future looks smooth for fruit and vegetable. RedOrange Food. Since the launch The range has six delightful smoothie of their Smoothie Rebels® early kit mixes that give consumers the 2018, it has been an exciting journey convenience to blend their own for the Dutch frozen fruit supplier. smoothie. Just add one sachet of 150g RedOrange is a fully equipped frozen fruit together with 200ml of supplier, capable of delivering high juice, water or milk in your blender volumes of frozen fruit for retail and and blend for 60 seconds. The result foodservice. With a state of the art, is a 350ml delicious smoothie full of BRC, IFS certified packing facility healthy goodness and great taste. and direct sourcing capabilities in more then 26 countries. Their unique Smoothie Rebels® with its colorful global sourcing strategy allows them packaging is disrupting the frozen to offer clients various fruits from fruit category. Frozen fruit compared different origins across the world, to the fresh fruit category still has

44 GLOBAL RETAIL BRANDS / OCTOBER 2019 in Belgium, Germany, France, UK, Switzerland and Scandinavia. Their next market effort will target Japan, Korea, USA, Chile, Peru, Australia and New Zealand.

The growth of the global frozen fruit a very low penetration level with a products and the convenience of portfolio may indeed be inevitable. maximum of 25%. Over the years healthy alternatives to snacking are What position will Smoothie more and more retailers are giving factors expected to drive this growth. Rebels® take? the category more space as it is The optimistic outlook continues To learn more, you may contact: outperforming other categories. The as a study from Innova Market [email protected] growth for the frozen fruit category Insights indicated that the growth will grow with more products. in the Superfood Category of Smoothie Rebels® is focussing on Drink Concentrates and Mixes was the 6 varieties and will develop an measured at 99% from 2013 organic range and 3 new category through 2017. products based on different Will the frozen fruit category take segments. As these products are market position from the ready- still in development, RedOrange to-drink smoothie category with representatives could not disclose global brands such as Innocent, more detailed information. Coolbest and Chiquita? With a

What should make this product even greater appreciation for fresher and more appealing to retailers is that natural foods, real fruits over puree growth in the category appears quite and concentrates, the chances of the positive. According to a report by frozen segment gaining ground seem Persistence Market Research in 2018, better than ever. the global frozen fruit category is As a result of attaining their likely to grow 5% on an annual basis distribution goals in the Netherlands for the next 9 years. A growing health within a year of their initial launch, a consciousness, a stronger preference global roll out of Smoothie Rebels® for natural products over processed is in progress. RedOrange Foods is anticipating initial success

www.globalretailmag.com 45 NOTABLE UNLEASHING GREAT TASTE

Taste is What Consumers Want Taste is the number one driver of consumer preferences in the dynamic food and beverage market. While food & beverage trends evolve, great taste continues to be the most important repurchase driver.

Consumer’s perception focuses on a couple of key areas and expectations. In dry beverages, depending on the application such as hot or cold instant drinks or tea infusions, consumers expect:

• full taste experience • high flavor impact • instant solubility & flavor release • consistent blend quality • natural taste experiences • premium natural appeal • visual pleasing appeal • consistent quality • reasonable prices

In sweet areas such as baked goods, chewing gum, confectionery, and chocolates, consumers look for the following properties:

• consistent flavor performance • continuous flavor release • high flavor impact • good and lasting taste • visually appealing colored particles • balanced taste

Consumers look for great taste enjoyment in all food and • natural appeal drink. Encapsulating flavors protects and delivers this great taste. evocore® supports food and beverage manufacturers in this task, offering the most comprehensive portfolio of encapsulation taste solutions. The evocore® family delivers fit-for-purpose flavor performance at an attractive cost-in-use.

46 GLOBAL RETAIL BRANDS / OCTOBER 2019 And Taste is What • Superior flavor delivery with the ® broadest portfolio of encapsulation evocore Delivers solutions, pioneering technology As much as producers of foods and development drinks want to stand out with their individual products and their taste • Technical expertise with long-term impact, they also want flavor impact in-house proven know-how across to endure and provide a memorable all categories experience. • Collaborative product creation with Whereas liquid flavors provide the tailor-made solutions for customers’ right solution for many applications, specific technical challenges. others require specific characteristics to prevent them from mingling with the matrix, such as in teas or Four Areas Of It also offers high flavor impact and chewing gums. long-lasting experience. Expertise Define Consequently, the requirements of In sweet application, it can be a manufacturers mirror consumer The evocore® playful partner for those looking at demands and add challenges to visually appealing colored particles, product creation. Encapsulation Platform for instance. spray drying: evospray® - extrusion: evoglass® - evodry® - evostar® evoglass® SF Pioneering technology for a full Bringing it All Together These solutions offer superior, taste experience with consistent Encapsulation with evocore® helps continuous flavor release while being quality at affordable price. Symrise’s protect great taste in food and flexible with sugar-free matrix in spray drying solutions bring instant beverages. It enables accommodation instant drinks or sweet products. solubility and flavor release, are easy of the widest variety of needs in a to apply in dry mixes, soups or sweet Ultimately stable. Made to appeal. demanding market by uniting all chewing gum, compressed tabletts or Symrise encapsulation technologies ® ® baked goods. drip casting: evocap - evocap under one roof. alginate - evopearls® Expect no deblending! Symrise encapsulation solutions help Symrise’s drip casting solutions overcome challenges enabling great And for health conscious consumers, offer an outstanding flavor burst in taste and protecting flavors during some of Symrise’s spray drying sweet applications for exciting taste production, transport and storage of solutions also offer sugar-free experiences. the final product. evocore® increases options. Beyond its intense flavor impact, flavor stability and ensures delivery of drip casting technology also bring granulation: evogran® - the desired taste release while taking the longest-lasting experience. It can evogran® coating into account technical aspects and come in sugar free, vegan, kosher or evogran® is a unique technology financial targets for the end product. halal solutions. offering an optimal flexibility (in ® Symrise evocore provides a broad color and shape). Its genuine added For more information, range of encapsulation solutions value lays in its natural appeal when www.symrise.com/flavor/our-unique- that cover: coated directly coffee or tea leafs. recipe/evocore

www.globalretailmag.com 47 NOTABLE FRESH SOUPS AND SALADS

La Linea Verde Group Confirms its Presence at Fruit Attraction

22-24 October 2019 Feria de Madrid Hall 9, STAND 9C02

Vegetales Línea Verde Navarra, the Spanish branch of La Linea Verde Group, will take part in Madrid Fruit Attraction Exhibition for the 11th time. The Group is a reliable European producer of bagged salads and chilled fresh soups for more than 60 retailers’ brands in Italy and in Europe. With 6 production sites (Italy, Spain and Serbia), 5 commercial offices (Italy, Spain, Serbia, Russia and France) and a 300M € turnover in 2018, La Linea Verde is the right partner for International large-scale retailers.

The International outlook of the company is intended not only in terms of export but also in terms of new openings in Europe: in March 2018 a new commercial office in France was opened to establish new commercial relationships with French retailers. The Group is the owner of state-of the heart fields and greenhouses and, driven by a strong commitment to agriculture, innovative products of exceptional their relationships with International boasts a short, clean and integrated added-value: bagged salads, prepared large scale retail buyers. In this agricultural supply chain also in salads, chilled fresh dishes, fresh occasion, the company will present, partnership with loyal partners. juices. Organic versions of all beyond their original range of the product ranges are available fresh-convenience products, the Moreover, La Linea Verde group (ORGANIC certification since 1992). new Asian-style soups. is investing more and more in human capital, energy savings and The management team of the For more information: new technologies to increase its Group will welcome you on a big, www.lalineaverde.it. production efficiency. The key to eye-catching stand (HALL 9, STAND the company’s success lies in its 9C02), looking forward to reinforcing

48 GLOBAL RETAIL BRANDS / OCTOBER 2019

At Seneca, we're still doing things the way we always have - the right way. Think globally, grow locally.

99% of our produce is grown by AMERICAN FARMERS

Please visit www.SenecaFoods.com to learn more about our company, people and products. www.okaproductsofficial.com www.okaproductsofficial.com NOTABLE WOMEN IMPACTING STOREBRAND EXCELLENCE

Join Us!

In the last seven years, WISE has is the webinar series. Relevant WISE gain the benefit of connecting developed a wide geographic network business and leadership topics are to diverse perspectives which of more than 50 Partner companies addressed by expert speakers. These enhance innovation and facilitate the and over 300 Members who strive to webinars can be attended in real time creation of more interesting products deliver on the WISE Mission to drive or visited at your leisure on and services that can reach a wider success in the store brands industry our website. consumer audience. through diverse collaboration and In 2020, WISE is planning to If you are looking to develop or leadership. Our organization came to increase our business networking enhance your leadership skills, life as thought leaders, both women events. Coordinated in local markets, build your network and have fun and men, saw the need to continue the content strives to educate with remarkable women and men, successful bottom line growth in the and to facilitate valuable industry consider a Membership with WISE. industry by cultivating diversity right connections. Our organization is open to anyone in here, right now! Our competitive the store brands industry regardless business environment makes it For those looking for a more personal of position, years of service or gender. paramount for companies in the store conversation, our Mentor Circles are brand industry to assemble talent available as a WISE Partner Member Our New Member from all walks of life. benefit. Past participants have raved sign up is open 24/7 at that the collaborative structure and WISE is committed to providing www.womeninstorebrands.com content allow contributors to share meaningful benefits to our and to learn from different viewpoints Or visit us on the PLMA show Members, including a keen focus and experiences. The program is floor at booth F2002. on development for those ready to considered, by our Members, an Join US! step into or recently promoted to a important perk of Membership. leadership role. At little or no cost to Members, the board of directors In this unique private brand industry, and the committees have developed a our community of entrepreneurs, solid platform of professional growth manufacturers, packaging suppliers, resources. A key part of our program brokers and retailers who belong to

54 GLOBAL RETAIL BRANDS / OCTOBER 2019

COVER STORY

LIVING IN THE AGE OF DISRUPTION

56 GLOBAL RETAIL BRANDS / OCTOBER 2019 e are living in nated “Moneyball” movie. Beane said, chaotic times at “technology will transform the social retail. There are fabric of the sport”, and he is credited more product with starting the analytics arms race choices than in Major League baseball. Analytics ever, shoppers today are driving player personnel/ want things now roster decisions, salary negotiations, or at least within 24 hours, our palates how defensive players are positioned, are becoming much more global, auto- pitching changes and pitch count – mation is ubiquitous in the front and they are even driving the stadiums back ends of the store, and technology themselves and how concessions are is a huge enabler for speed, analytics heat-mapped to staff accordingly and and new consumer behaviors. It is have food ready at the right times. And THE DECISIVE head-spinning how fast all of this is baseball is not unique, as the impor- happening. tance of analytics is similar to so many other global sports today. LIST OF But out of this cloud of chaos and “age of disruption”, there will be retail What Beane is to baseball, Bezos is to RETAIL winners and losers, supplier champi- retail. Here is a guy that has over 500 ons and laggards; and we have to ask patents pending, and one of the more ourselves, how will private brands fare well-known is for “Anticipatory Ship- DISRUPTORS amidst all of this disruption? How ping”. Yes, Amazon is using predictive should private brands and your com- analytics to ship products to warehous- pany respond most effectively to each es before consumers even order them. & THEIR of these disruptive forces and what are the implications? Though in the case of retail and Ama- zon, other retailers are not far behind, EFFECT ON So, to stoke the fire of the Disruption and some would like to even claim they conversation and really get it burning, are nudging ahead. Kroger’s CIO has here is a unique perspective on the Top said that “data collection is our present PRIVATE Ten Disruptors At Retail. You can, of and future”, and the company is back- course, argue if one of the disruptors ing it up with their 84.51° division. If you are focused on did not make the sports can heat-map stadiums, then BRANDS list, but the real argument should be 84.51° can and does heat-map (through “what are you doing about it, do you infrared and video technology) the have enough resources deployed, store experience, from what time of and are we acting fast enough to take day you enter a store, to who with advantage?” and how you conduct your shopping. By Target in Minneapolis has identified pregnant mothers through big data be- Perry Seelert BIG DATA, fore they even become mothers, so they can reach these important consumers Strategic Partner ANALYTICS & before other CPGs bombard them in the hospital and shortly thereafter. Emerge MONEYBALL For many “big data” observers, the on- While the largest retailers are invest- slaught of analytics driving two of the ing heavily in big data that drives biggest industries in the world, sports both shopper understanding as well and retail, started in the mid-nineties as efficient supply chain behaviors, it by Billy Beane and Jeff Bezos. Now is the Private Brand department that Bezos you obviously have heard of, but needs to ensure they are getting their if you haven’t heard of Billy Beane, the fair share of analytical investment and General Manager of the Oakland Ath- resources. Big data and how we use it is letics baseball team, then maybe you one of the biggest disruptors today. know him from the Best Picture nomi-

www.globalretailmag.com 57 Go tubing, You-Tubing that is…All we have to say is that 70% of Gen Z spend more than 2 hours a day on Youtube. That’s right, 70%! To ignore it and the “influenc- ers” that define what audiences like and buy is suicide.

BRAGGING ABOUT YOUR PENETRATION Bragging never used to be in vogue, but now it is, at least when it comes to retail- Gen Z’ers are disrupting the market- ers’ penetration numbers. While many Eu- ing landscape like no other group, even ropean retailers teeter between 40-50%+ Millennials. This generation (ages 6-23) private brand penetration, there are some is now gaining the purchasing power, leading U.S. retailers that are closing in or entering the job market, and if you want have already exceeded 30%. Wegmans and to be effective in reaching them, there are HEB are always those best-in-class region- four key things you can do as a supplier or al operators mentioned as excelling in pri- retailer, and all of it is disruptive. vate brand, but look at Costco, Kroger and Albertson’s/Safeway who are getting much Think fashionably. A product’s aesthet- more blatant at expressing their progress, ic is the #1 thing Gen Z consumers look and Kroger especially. for before they buy. Fashionable design matters to them more than any other They are sharing progress towards the generation. metric not just because of Wall Street and investors. Retailers like Kroger are also Pop-Ups are a real deal, not for just doing it for the supplier community – it the retail and CPG elite. These retail sends a clear message to Private Brand and CPG pop-up stores allow consumers suppliers that they should come to Kroger to be more experiential, and interact in fun first, not second with innovation. When and unique ways. Not only are retailers they say that “41 of their top 50 items are like H&M using them globally, but so are Private Brand products” or “from 2011 to manufacturers like Coke & P&G. Why not a 2017 they have experienced 37% Private creatively executed private brand pop-up? Brand growth, from $15B to $20.5B” it definitely gets your attention. They are Know geo-fencing. Gen Z’ers are the serious. This number grew to $21.5B in first generation to use their smartphone 2018! This public buzz about penetration more than TV. So geo-fencing stores and and private brand growth intentionally sending location based alerts via mobile disrupts how we think about them and phones is highly effective. other retailers who rightfully tout it.

58 GLOBAL RETAIL BRANDS / OCTOBER 2019 THE NEED FOR SPEED Being fast is your friend. It is the con- Immediate response - The “need sumer’s friend too, and it may be one for speed” also affects how we situate of the biggest disruptors of our times. customer service and the ease of There are three shopper “demands” product returns. Free shipping for you should keep front-of-mind gen- all shopper returns will be the norm erally-speaking, and private brands in the future, and get your customer would apply to all of them. service moving to live chat.

Immediate delivery – The custom- No waiting in lines – Lines are and er’s expectation around delivery is 24 will become a thing of the past. At hours or less, and increasingly mov- the very least there will be significant ing to “same day” or within the hour. tools to reduce wait times. It is not Amazon started this freight train, just Amazon Go that is going cashier- with Prime (101 Million members, less, but 7-11 (X-Store in Taiwan) and and 62% of all U.S. households) and Sam’s Club are all testing their own Prime Now. Walmart/Uber and Tar- versions of high-tech, cashierless get/Shipt understand this consumer experiences. imperative. GrubHub, UberEats, Door Dash all reinforce shoppers’ notions of immediacy when it comes to food delivery. You need to also if you have ecommerce. If you have ecommerce, then you need to live up to the notion of immediacy too.

www.globalretailmag.com 59 ALDI & LIDL THE TIP OF THE ICEBERG The game-changer for the Limited Assortment/Hard Discount sector is who and how they are attracting a different set of consumers, including Millennials. They always had the consumer who treated “value as a ne- cessity” (45 million people in the U.S. are below the poverty line, less than $25K for a family of four), but they now are bringing in more consumers who think of “value as a priority”. This desire for value transcends demographics, as smart consumers exist at all levels, and Aldi and Lidl know this. Their marketing, advertising and even product development is all very artful in broadening their appeal.

Their cultural persistence to keep learning and their huge investment (Aston Martin in Aldi parking lot – credit Cavendish Press) around the world, should get your attention. Even though their market share is less than 3% in the U.S., don’t let this lull you into a comfortable state of mind. Just look what they Ethnic cuisine is becoming more have done in the U.K. and Australia GLOBALITY the norm than the aberration where over the last couple of years. consumers’ taste for bolder, more ad- venturous cuisine is on the rise. More & THE travel, more cooking shows and Food Networks, internet culinary blogging EFFECT and greater access are all factors. This should be called a “welcome ON CUISINE disruptor”, but it poses challenges of trend-watching, quicker new product development and global importing.

Truly ethnic variety seemed out- of-reach and is now much more commonplace. In the U.S. it is Asian cuisine that is the fastest growing, correlated with the Asian population that is also growing the quickest (a 72% increase since 2000). Korean food is on fire around the world, literally, but it is that little gem from Vietnam, Sriracha, which is the flavor that keeps on giving. Retailers like Trader Joe’s and Walmart have already taken notice, where you will find Sriracha incorporated into chips, soups, hummus, salads, and even donuts and beer.

60 GLOBAL RETAIL BRANDS / OCTOBER 2019 INCUBATORS AND THE SHIFT TO SMALL Let’s face it, the share of food and beverage sales of the Top 25 CPG companies has declined steadily, from 66% in 2012 to 63% in 2016 (AT Kearney study). This sobering fact has them trying new things in terms of innovation, so one of the big disruptors on the horizon are CPG Incubators and Accelerators.

Most of the big CPGs now have an in- THE cubator or accelerator that they own, oversee or nurture. General Mills ROLE OF (301INC), Pepsico (The Hive), Nestle (Terra), KraftHeinz (Springboard) and more recently Mars (Seeds of HUMANS Change). Retailers like Target & Some would call this disruptor the Metro also have their own versions “Rise Of The Machines”, but Arnold of accelerators. All of this is to launch Schwarzenegger and The Terminator more entrepreneurial ventures and had already coined this phrase! The smaller brands faster, something movie (along with the cartoon The these big-brand institutions had out- Jetsons) had a lot of things correct, learned and are not built to do today. namely that automation will become These more fleet afoot incubators, in ever present, consuming what once a way, are admissions by big brand- were human tasks. This is already CPGs of their own lethargy. having a hugely disrupting effect on retail and the store experience itself. This trend has the potential to be really detrimental to own brands, so Friendly customer service – more retailers have to get in the game There are divergent views on the role and direct their incubation efforts of people, their impact on friendly towards private brand opportunities. service and the interface throughout This is different than having Innova- departments. Retailers like HEB, tion or Culinary centers, as true incu- Hy-Vee and Waitrose would swear by The changing check-out – Ahold bation involves bringing in entrepre- well-trained employees, but for Ama- and Sainsbury have moved heavily to neurs from outside your organization zon Go and Walmart (say goodbye to self checkouts for efficiency and cost and giving them degrees of freedom the greeter), not so much. reasons. This will be a sign of things and investment to thrive. to come, as one employee can handle as many as 8 self-service checkouts.

Supply-side and delivery – Bots, drones and driverless vehicles are all taking humans out of the equation. Amazon has over 45,000 warehouse robots and even warehouses pushing 1 million square feet have only 1500 employees.

Automation as a disruptor is here to stay, but with a lack of human touch points in and out of the store, you have to think about telling and selling the virtues of private brands through new media and in unique ways.

www.globalretailmag.com 61 farm marketing, as well as fewer supply ECONOMICS chain options. One of the obvious courses of action in & POLITICS response to these economic and political Out of all the disruptors on the list, I disruptors is to fully diversify your think the “Economic & Political” disrup- supply chain, eliminate country-specific tion is the toughest to guard against or reliance as much as possible. Begrudg- leverage to your advantage. Three things ingly we would also say that further really stand out in this arena: automation can also be a buffer as it applies to minimum wage mandates. China, Trade & Tariffs – Trade is a worldwide point of stress right now – Brexit, USMCA and China-US tariff es- calation are all threatening the stability of the supply chain, which clearly affects AMAZON- non-food costs passed on to consumers but also the strength of the agricultural markets. THE $15 Minimum Wage – If there were ELEPHANT a change in political parties, the $15 minimum wage could be the law of the land (in the U.S.). The Minimum Wage IN THE conversation is highly country and cul- turally-specific (as countries like France ROOM already have living wage mandates), but $15 an hour in the U.S. could have Amazon really is the elephant in the detrimental effect on restaurants, food room with any retail conversation, delivery services, food manufacturing especially a discussion about “disrup- plants and many more. tion”. The reality is they are included in all types of industry discussions like Fewer Farms & Shrinking new media (Washington Post), film/tv Agriculture – There is shrinking production and so much more. global farmland and fewer farmers in total, and the number of actual farms has The scale of their digital retail sales rep- reduced over time. Farms are getting resents ½ the entire market. Their $258 bigger (acreage), but the regional and Billion outweighs the next 49 of ecom- smaller farmer is getting squeezed out. merce providers. They account for 32% Bottom line is this means less “local” of all food and beverage sales through

62 GLOBAL RETAIL BRANDS / OCTOBER 2019 ecommerce in the U.S., and Walmart represents ½ of Amazon’s share. OK, you get the point, the numbers are staggering.

These numbers for Amazon should point you to two key things. First, it is critical that you beef up your ecommerce efforts to be salient in the future. Look to Walmart for this cue, as only 3% of their retail revenue comes from on-line, but they are desperately pushing for a greater share. Acquisi- tions like FlipKart, Bare Necessities, Eloquii and Art.com should tell you how serious they are, and you should be too.

The vulnerable areas of Amazon are twofold, and things you should be THE trying to leverage. First, their integration of AmazonPrime and Whole Foods is still a glass half full or half ACTIONS empty (75% of Whole Foods shoppers Debate these Top Ten Disruptors, pri- are Prime members, but only 20% of oritize which apply to you most, and Prime members are regular Whole ensure you have strategically thought Foods shoppers). So, get your sus- about the implications and resources tainability and organic/natural efforts for the future. Many of these disrup- into high gear, something Kroger has tors demand a preemptive investment done with Simple Truth as a $2B+ to be successful, but first there needs brand. And second, the music to your to be an acknowledgement that they ears should be to continue moving indeed matter. Hopefully this has ahead on your branding, marketing provoked you to think about their and innovation of your private brand impact and what you can do, and that programs, because Amazon still has you cannot remain comfortable. As a relatively clumsy and disconnected JFK said, “change is the law of life”, approach. Their brands still have low and even though it can be daunting, levels of equity, so you should try to it is those retailers who think ahead, build your brands while you can to invest in the future, and embrace big establish loyalty and trust. data that will rise above the rest.

www.globalretailmag.com 63 DISRUPTING THE CPG INDUSTRY with CONNECTED PACKAGING BY MICHAEL ELIAS, CHIEF REVENUE OFFICER, EVRYTHNG

Over the past several years the Consumer Packaged Goods (CPG) industry has been buzzing with the promise of connected packaging. A world in which products no longer sit idle on the shelf but rather buzz with life, smart with data previously scattered in the wind as items journeyed through the supply chain.

Disrupting the CPG Industry transparency from brands. At the same trackable across the full product lifecycle time, GenX and the aging population of and ready to drive consumer experiences. A few industry disruptors have changed retiring Baby Boomers are demanding the trajectory of the CPG industry ever more convenience. Brands that can The Breakthrough forever, making the promise of connected deliver both transparency and personalized packaging a reality. Billions of products The breakthrough is in being able to consumer experiences are going to rise are quite literally being ‘born digital’ with digitize products at mass scale. With this to the top. a digital identity on the web, providing new digital ecosystem, brands now have a consumer product brands with real-time The good news is that the digital switch- platform that delivers both: data intelligence and end-to-end supply on of the world’s consumer products • Supply chain visibility and control to provides a scalable path to resolve chain traceability and consumers with provide GenZ consumers with the these divergent needs. full transparency and personalized transparency they seek; and digital experiences. A New Digital Ecosystem • Instrumentation and control of the product journey to deliver personalized Why now? EVRYTHNG built the partner ecosystem omni-channel experiences to GenX Consumer product brands are facing required for brands to realize the full consumers. more challenges today than ever before potential of this technology. Our partners between the need to meet the multi- Avery Dennison, which labels and tags a To bring the impact of this new generational expectations of consumers -- significant portion of the world’s apparel digital ecosystem to life, in May GenZ to GenX -- to the massive takeover and footwear products; WestRock, which of online sales by a few key players. The supplies around a fifth of the world’s fibre- Mowi — the world’s largest producer of good news is that the digital switch-on of based packaging; and Crown Holdings, Atlantic salmon — and EVRYTHNG the world’s consumer products provides a which operates at a similar scale with announced the first end-to-end food scalable path for brands to address these canned and other metal packaging, are traceability platform to deliver full divergent issues head-on. able to produce products with a digital visibility into provenance of salmon identity at point of production. Products bought and consumed by customers Multi-generational Consumer are being “born digital” with a GS1 Digital worldwide. Consumers around the Link code and a digital identity in the Expectations world can point their phones at a packet cloud. -- GS1 Digitial Link upgrades the of salmon, authenticating the item Meeting the divergent needs of GenZ traditional barcode to connect every and accessing information about the and GenX requires a strategy that enables product to the web. provenance of that specific portion of fish, diverse consumer needs to be met on a including where it came from and how it converged and common product platform. In addition to creating integrations with was farmed. What’s even cooler is that the This is a defining driving force for 2019 packaging and supply chain leaders, experience, powered by EVRYTHNG, and beyond. EVRYTHNG is also working directly with global brands like, Mowi ASA to is also the industry’s first mass-scale GenZ consumers are making values- ensure products are produced with digital application of the new GS1 Digital based purchasing decisions, demanding identities as they are manufactured — Link standard.

64 GLOBAL RETAIL BRANDS / OCTOBER 2019 • $461bn or 2.5% of global trade lost each making process. The goal is to create brand year due to counterfeiting loyalty that inspires future purchases.

• Growing costs and environmental impact EVRYTHNG provides consumers with of waste, arising from lack of visibility into consent-based access to content via the closed loop supply chains NFC tag on each bottle of Pinea Wine. Through this same tag EVRYTHNG • Consumer loyalty is dwindling — collects real-time data about where and how shifting focus to sustainable, ethical often consumers are engaging and transparent brands – the rise with bottles to shape informed of the B corp marketing programs. The same digital ecosystem that is allowing brands to address the divergent needs of Winning with Connected Packaging multi-generational consumers is allowing With brands increasingly relying upon consumer product brands to embrace this omnichannel consumer engagement transformative time and reclaim market strategies to grow and retain customers, leadership. Beyond the tools to digitize the technology behind the creative has and connect every product to the web become the winning difference. According with a digital identity, we provide the to research by Invesp, companies with real-time data to drive consumer trust omnichannel customer engagement and provide brands with visibility, control strategies retain on average 89% of their and pre-emptive intelligence throughout customers compared to 33% customer the product life-cycle. EVRYTHNG retention rate for companies with weak also allows brands to fight two of their omnichannel strategies. This is particularly biggest supply chain problems: counterfeit evident when trying to grow brand products and gray market imports. awareness with millennials and generations after. This year’s winning ‘Top Your RITZ’ To learn more about MOWI's Pinea Wine’s ConnectedBottle campaign was targeted at millennials. end-to-end food traceability Using the EVRYTHNG platform, each platform, scan the QR code with Spanish fine wine-maker, Pinea partnered RITZ Crackers product is assigned a QR you smartphone camera; click on with EVRYTHNG to launch its code with a corresponding Active Digital the browser link that pops up in #connectedbottle authentication initiative. Identity™ (ADI) in the cloud to manage your camera app; enjoy video. Wine enthusiasts now have the ability to authenticate the vintage and receive a the data from and about that item. Using unique consumer experience with a tap of EVRYTHNG’s mobile scanning software, EVRYTHNG co-chaired the GS1 their smartphone. Using a smartphone, the RITZ mobile experience allows standards development process that consumers scan the QR Code on the back consumers to scan a QR code on the yielded GS1 Digital Link and is now the label or tap the NFC Tag to engage with connected packaging, automatically identify first platform to allow consumer product the bottle. This is huge because more than the product and initiate the relevant, brands, to digitize products at mass scale. 2 billion smartphones can automatically personalized consumer experience. Combining the GS1 Digital Link and interact with standard codes — meaning EVRYTHNG digital identities has created every bottle of Pinea Wine can quite an unprecedented opportunity to apply literally connect with every consumer. data science and intelligence to every Each tag is encoded with a unique serialized product’s journey, and to every product’s ID number to connect every bottle to experience for the consumer. the web with EVRYTHNG Active Digital Identities. Through this single code, Reclaiming Control -- Pinea can validate product authenticity. Disintermediation in the If someone were able to counterfeit the CPG Industry label itself, the system could still detect a problem. EVRYTHNG both validates The massive takeover of online sales and the product authenticity and identifies trade domination of a few players like Amazon has abnormalities such as parallel markets. reduced some of the world’s most beloved brands to mere manufacturers: Online Pinea can also connect and engage retailers get powerful data about who has consumers with contextual, personalized purchased products while leaving brands experiences through this same tag. With in the dark. Plus, global brands are facing the new #connectedbottle, consumers are bigger, more critical macro business issues learning more about the wines and quite than ever before. literally, following the complete wine-

www.globalretailmag.com 65 Personalized, Contextual Consumer Experiences The EVRYTHNG platform applies patented, context-based rules to determine the exact, personalized brand content and mobile experience to dynamically deliver to each individual consumer. A key differentiator in the ‘Top Your RITZ’ campaign is the EVRYTHNG geo-fencing rule which allows the brand to pinpoint exactly where a consumer is engaging with the product: • Connected into the Almond. • deliver personalized services and • In-store, consumers were given a io blockchain ecosystem, linking experiences to consumers; store-branded mobile experience for an immutable ledger of product • verify products are authentic; the specific retailer -- in this case, information and events with the unique • confirm a product’s status in Walmart, Kroger or Lowes Foods. digital identity of each can of FACT. the supply chain; Contextualized experiences included: • Uses EVRYTHNG’s mobile SDK to suggested food and beverage pairings, • draw conclusions about operational build the consumer app which can recipes, and coupons. performance and efficiency. access product data and crypto-rewards. • Post purchase, consumers receive continued suggestions for fun, new Product Digitization is food and beverage pairings by simply scanning the QR code on the box. Happening Now FACT’s launch is evidence of a shift in Engagement Analytics the way brands manufacture and take products to market. Product digitization The EVRYTHNG platform allows the — where every physical item becomes an brand to track consumer actions during interactive, trackable and intelligent asset product engagement to reveal unique — is at the heart of this change. Now any consumer behaviors and preferences to physical item – whether a beverage can aid in retargeting activities. Brands can or package of salmon – can be connected also track engagement by store to gain to the web to start telling its story to insight to valuable in-store activity -- consumers and brands alike. typically a blind spot for brands. Every FACT can tells the product’s unique Consumers are Changing and story – where, when and how it was Brands Need to Change, Too farmed, where and when it was packaged, and its journey to store. It even shares Almond.io has launched a new drink brand its carbon footprint, based upon the – “FACT” – digitized on the EVRYTHNG journey the ingredients and ultimately, platform to meet consumer’s growing the finished product, took to reach thirst for knowledge about the products consumers’ hands. they’re buying.

By engaging with consumers directly Is Connected Packaging at ‘point of consumption,’ Almond can Right for Your Brand? To learn how product digitization is better understand its customers and see With connected packaging -- powered by transforming the FACT consumer where and when its products are being this new digital ecosystem -- consumer experience, scan the QR code with consumed. And at the same time, build product brands are no longer left guessing. you smartphone camera; click on deeper relationships with customers by Data can now be gathered at a mass scale – the browser link that pops up in building trust through product & supply the crucial word being mass – with a simple, your camera app; enjoy video. chain transparency. printed, scanned code that follows a product throughout its journey. Brands now know How does it work? where every product item is, who’s got it and To learn more about how your brand • Integrated with Crown Packaging how it is recycled and/or disposed of. might benefit from connected packaging to embed digital identities which are This massive firehose of intelligence and this new digital ecosystem, encoded in DataMatrix codes printed pumping into the cloud is processed contact Michael Elias at onto the ends of cans at point of in nanoseconds to: manufacture. [email protected]

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UNEXECUTED STRATEGY IS JUST WISHFUL THINKING EXECUTE! EXECUTE! EXECUTE!

There are four questions that retailers So “What is the best private • Persistence is irreplaceable. Stay around the globe often ask me: brand strategy?” and “How many the course. Nurturing and growing brands should I have?” Both are big private brands take time and 1. “Who does private brand best? questions; let me tell you how we commitment. Loblaw launched (So, I can copy them) begin. A few questions: Presidents Choice in 1991 – 2. “What is the best private brand 28 years ago. CORPORATE strategy?” • Unexecuted strategy is just wishful • What is your corporate strategy? 3. “How many brands should thinking. EXECUTE! EXECUTE! I have?” • What are your business goals? EXECUTE!

4. “What makes a private brand The ideal private brand portfolio Private Brand strategy should portfolio successful?” helps the retailer succeed with its not be a secret. Shout it from the stated corporate strategy. Either by mountaintops. Engage every associate These questions always generate a directly reinforcing the retail brand or from cashiers to executives. Enlist thought-provoking conversation, and by creating brands that extend, add every manufacturer and service occasionally they lead to a productive value, or protect the retail brand. provider as allies and tell them consulting engagement where we can your strategy. Speak at conferences dive deeper into potential solutions. CONSUMER (Shameless plug for the Velocity • What is your consumer strategy? Conference www.mpbvelocity.com). Let’s start with the first question, The best strategy is clear and • Who are you trying to reach? “Who does private brand best? executable. The approach must (So, I can copy them). It is simply • What are your consumer/ inspire action and create an army enough to rattle off a list of best customer goals? of passionate advocates all working in class private brand retailers: to develop a portfolio of private Trader Joe’s, Loblaw, Costco, Aldi, Does your private brand portfolio brands that customers love. HEB, Wegmans, Jumbo, Waitrose, help you engage with your target Carrefour, etc. That does not mean, customer? however, that the answer is to copy someone else. Although it’s always If you can answer these, you have Christopher Durham smart to benchmark the competition, taken the first steps to create an Founder, My Private Brand and The copying them is not. ownable and differentiated private Velocity Private Brand Conference. brand portfolio strategy. Christopher Durham is an author, The next two questions go hand However, a few words of caution. consultant, strategist and retailer in hand. Benchmarking from the • If your strategy is a secret, with close to 20 years of real-world previous questions reveals retailers it will FAIL. retail and corporate experience are succeeding with a variety of creating, launching and building • If your strategy changes with private brand portfolio strategies. numerous billion dollar Private Costco’s iconic single brand strategy the wind (or each new leader) Brands. My Private Brand, seeks to - Kirkland Signature brand creates you will FAIL. drive the changing Private Brand repeat customers with their focus • The best strategy executed poorly landscape, focusing on the emerging on quality and consistent execution. will FAIL. art and science of Private Brand Discount grocer Aldi steals shoppers management. from mainstream grocers with their total commitment to private brand dominance in their house of private brands.

68 GLOBAL RETAIL BRANDS / OCTOBER 2019 COLUMN DELFIM SANTOS Head of Growth and Customer Relations DAYMON

TRENDING TASTES EMERGING GLOBAL FLAVORS SPARK INNOVATION IN PRIVATE BRAND

Thanks to a convergence of factors, The bowl craze in Europe and North including technological innovations, America offers yet another avenue shifting demographics and rising for retailers and Private Brand urbanization, consumers from all manufacturers to capitalize on. cultures and walks of life are more The format already carries healthy connected than ever before. They credentials thanks to its association are increasingly exposed to different with freshly prepared salads and soups. customs and traditions, which is Pulling in the foods of the world theme creating a cultural mosaic would create the opportunity to go of experiences. beyond chilled prepared meals and to develop solutions that capitalize on In the food industry, this is resulting in complementary trends such as plant- demand for an ever-widening variety based proteins and low carb meals. of cuisines, as more consumers are introduced to new flavors and eating Whether it’s tracking trends around styles. At the same time, there is the world or addressing local needs growing interest in home cooking and and preferences, retailers and creating Instagram-worthy “made- manufacturers must remember that it-myself” dishes. This presents a in the new era of Private Brand, prime opportunity for retailers and continuous innovation is critical. manufacturers to innovate with Private There’s nothing less than shoppers’ Brands by developing new “foods of dollars and loyalty — and ultimately, the world” offerings that go beyond retailers’ and manufacturers’ success — mainstream ethnic cuisines and tap into on the line. emerging flavor combinations, such as those found in Peruvian, Asian, Middle Eastern and African cooking. Delfim Santos Some innovative retailers are already With single-ingredient products like is part of Daymon International beginning to capitalize on this Smoked Spanish Paprika and Red Leadership team since 2013. He leads emerging trend by introducing Private Miso Soybean Paste in addition to the Growth and Customer Relations Brand artisan sauces and dressings that its sauces, Kroger’s HemisFares line team based in the International allow consumers to try out new cuisines demonstrates another way retailers and Development Center. He is also the in an easy way. For example, Kroger manufacturers can get in on the trend. Operating Partner for Russia, Middle recently added several new Japanese- Namely, by introducing unique “foodie” East, Portugal and Czech Republic. inspired products to its HemisFares ingredients that allow consumers to Within the past 6 years, Delfim has line, including a Shichimi Togarashi experiment with their own dishes and led the Global Sourcing & Product Seven Spice Blend and Katsuo Tsuyu flavor combinations. Ghee is a prime Development teams and has overseen Brewed Noodle Dipping Sauce. example of such an ingredient that’s business operations in several Similarly, in Canada, Loblaws is using ripe for Private Brand innovation. A countries such as Angola, Kuwait its President’s Choice “Memories Of” clarified butter commonly used in the and Croatia. label to encourage consumers to cook Middle Eastern, Indian and Southeast and share culinary experiences like Asian cuisines, the product benefits Moroccan Sweet and Spicy Tagine from natural perceptions as well as its right at home. connection with Ayurvedic medicine. It can also be mixed with herbs, spices and other flavors to further tap into the global flavors trend.

www.globalretailmag.com 69 COLUMN KAREN SURDENIK Manager, e-Commerce and Social Media PARAMOUNT ROASTERS

WHETHER YOU’RE A RETAILER OR A CPG, E-COMMERCE HAS CHANGED, AND WILL CONTINUE TO CHANGE THE WAY YOUR BUSINESS DOES BUSINESS WITH OTHER BUSINESSES.

There are close to 1.5 million e-commerce companies in North America and almost 3 million globally. At the core of this growth is technology. In order to stay competitive, manufacturers and retailers must continually invest in technology systems. In many cases, they are uniting to compete for the attention of consumers in a growing number of digital marketplaces, social sites, websites and PWA (Progressive descriptions, attributes) is as allowed many major digitally native Web Applications.) important, if not more, as the physical brands and store brands to grow. product. Think about this. How This is accomplished by providing E-commerce has provided consumers long ago was it that you shopped for information that offers shoppers the ability to seek and find products shoes, clothes, cleaning supplies, complete and accurate information and specific brands on any or all and food products, exclusively at about the product and oftentimes the of these spaces. If not managed brick and mortar stores? Remember company. Detailed content is what properly, the same item can be the experience? You picked up the sets one product apart from another, presented with different images, product, judged the weight, felt the all with a goal to convert the shopper content and attributes. The challenge fabric, could see the exact color or to a buyer. Today retailers of any size for retailers and brands is to control size. Maybe you read the ingredients are able to reach markets that were their content, and keep it current or a catchy slogan on the front of the unheard of five or even two years ago. and consistent for consumers. Enter package. You looked at a few other Creating and standardizing SKUs can Product Information Management, items on the same shelf, made your be a daunting and time-consuming PMI, software. selection and that was it. task. Acquiring images, specific product information, category-specific Content is king in e-commerce Shopping online eliminates metadata etc. is an integral step in the marketing. Shopping has changed, these experiences. It has become e-commerce system. Recently Alibaba so retailers must change. In order for overwhelming for consumers as not revealed that its AI based copywriting retailers to be competitive, they need only can they shop in more online tool can produce 20,000 lines of copy to capture and hold the attention of places, they now have access to per second and is used a million times online shoppers. This is done with more products than ever before. a day by its vendors. specific and detailed content of which And, unless one is completely CPGs should be able to provide in a unplugged, it’s almost impossible to Product content syndication or PIM concise manner. How a manufacturer not be constantly bombarded with capabilities whereby content can is able to support and provide a advertisements. be pushed to multiple sites with retailer with digital content can be consistency and accuracy is now vitally important to compete in Because of this consumers must being implemented by the U.S. largest digital marketplaces. depend on detailed content retailers. Advances in these systems provided by the retailer, and/or the are providing an end to end solution Because of ecommerce, product manufacturer to make purchasing for transmitting product content for information in all forms (images, decisions. Content is what has wholesale and e-commerce channels.

70 GLOBAL RETAIL BRANDS / OCTOBER 2019 Allowing for a faster item set-up when bringing new products to market, quicker times for content refresh as new packaging variations occur, or adding engaging media is an incredibly valuable tool for e-commerce teams. It’s only a matter of time before these tools are not the exception, rather the expectation to listing and relevant SEO search.

Today a product’s path to purchase can start on a social channel and end at storefront, a website or on a PWA. PIM applications will streamline the management for product information across an entire organization from supply chain to customers. It will provide a one-stop system to collect and enrich Karen Surdenik, product information and create product serves as the e-Commerce and Social ROI goals for targeted campaigns. catalogs and distribute this information Media Manager for Paramount By implementing focused marketing to sales teams and ecommerce channels. Roasters, in Lansing, Michigan. She strategies, Paramount Roasters Retailers and manufactures who has worked in a number of sales continually experiences double-digit implement these applications will and marketing roles for over twenty e-Commerce sales growth. Karen, continue to have an advantage in our years; has extensive experience in once a dedicated runner, is now a growing digitized world. data-based marketing receiving passionate cyclist and enjoys two- high-achiever awards for both wheeled touring vacations whenever So start now by developing deep brand implementing programs for new possible. trust, and begin to ask the question: revenue streams, and exceeding what can be exposed?

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21-23.10.2019 | LISBOA, PORTUGAL | VELOCITYEUROPE.ORG COLUMN UMA KANNAPPAN Global Product Director e-Content SGK

4 WAYS E-COMMERCE PRODUCT CONTENT DRIVES SALES

To provide context on the importance of e-commerce product content, a survey by Namagoo found that out of the ten top reasons consumers listed for what makes a great online shopping experience, six of these top reasons were all product content related or influenced by product content. Additionally, consumers have repeatedly shared that other important factors that influence their decision to buy when shopping online include: • Clear, high-quality and ample product images that answer their questions and elevate the appeal of the product • Product reviews provided by other people like them • Product descriptions that give more 1 detailed and accurate information 2 about what the product is and Ensure the product title Create the right visual assets what it does stands out and product Another key consideration are the • The ability to easily find the product product images that appear in the that they were looking for in copy is keyword-rich image gallery or carousel on the search listings One of the most important aspects of product detail page. The goal is to aim • Mobile optimized product images core product content on a retail site is for a minimum of six to seven high that make the right products easy to the product title. The title appears on resolution, high quality images. It identify when shopping on mobile the product detail page on a retailer makes sense to leverage all available devices site and shows up in search listings, image slots to showcase the product both on desktop and mobile. In search When thinking about e-commerce core effectively. The number of images listings, the product title often appears content, the role of that core content allowed and image specifications vary next to the primary product image. really is to help online shoppers quickly by retailer so it is crucial to understand The product title and primary image find and buy the products that they individual retailer requirements for need to be compelling, in order to get are looking for while providing proof creating product images. the consumer to click-through to the points that reinforce how the product product detail page. Product images that show alternate meets their requirements — in order to views of the product provide the best address any hurdles to purchase. The It is critical to incorporate the right way of replicating the brick-and-mortar ultimate goal of e-commerce product keywords with high consumer search store experience, where consumers are content is to persuade consumers to volumes, as well as including keywords able to pick up the product and interact buy, and that could be through a brand that are relevant to the product with it. Include infographics to visually story, a product story, or important category, in the product copy. These show the benefits and features of the details that provide credibility for the keywords factor into the algorithm product as well as lifestyle images. This product and how it fits in the context that retailers use to optimize search on helps online shoppers clearly picture of the consumer’s lifestyle. Here are their site and ensure that the product is how the product will fit into their the four ways e-commerce content findable when consumers day-to-day lives. drives sales growth: are searching.

72 GLOBAL RETAIL BRANDS / OCTOBER 2019 A product-centric short form video can be prominently called out on mobile on digital commerce world. Consumers help to increase engagement and dwell specific images include brand, product no longer shop through a singular time on the product detail page. Video type and variants such as channel and e-commerce product has been shown to create a sales uplift color or flavor. content can also be used to inform other when it’s included on a retailer’s site. sources such as voice shopping, list A short video, 1.5 minutes or less, is recommendations, next best actions, ideal. The video can be used to reinforce 4 virtual and augmented reality shopping product benefits and features, usage Ask for ratings and reviews and so much more. As such, this is occasions, and also cross-sell other one of the best investments brands product varieties that are available on Another vital aspect of core product can make when they are looking to the retailer’s site. content is ratings and reviews. Many differentiate their products and deliver consumers read at least three reviews a stellar consumer experience. before deciding to buy a product. These 3 reviews can create both sales traffic and Uma Kannappan, Make your images work conversion, and so it’s important to get Global Product Director, e-Content, as many positive and recent reviews as SGK, brings over 20 years of experience on mobile displays possible. The goal is to get a minimum in developing and implementing As more and more consumers shop of fifteen positive reviews and an marketing, digital and e-commerce on their mobile phones, especially for average rating of 4 stars or above. strategies and technologies to create favorites that they replenish often, Brands should respond to both positive omnichannel customer engagement. brands should consider including a and negative reviews as quickly as Her experience includes working mobile version of the primary product possible, so their customers feel extensively with clients in various image in their online image gallery on their opinion matters and the brand industries and sectors, including the product page. is responsive to their questions. consumer products, retail and This consequently increases overall technology. She has also worked with Size and quantity are the biggest customer satisfaction and the The Consumer Goods Forum and other areas of confusion when consumers probability that the customer will buy industry bodies to provide thought are shopping online, so it’s important from those brands again. leadership for CPG manufacturers and to ensure mobile optimized images retailers as they collaborate to create highlight this information prominently. The role of product content is more mutual value, foster innovation and Other product information that should important than ever in today’s always- drive growth.

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