With special thanks to Siemens for sponsoring the research and interviews required to present this innovation special section. GMA CENTENNI A L SPE C I A L Iss UE 2008 FORUM 111 A Survey of Astonishing Accomplishment To some naysayers today, “CPG What do you see? innovation” is an oxymoron, but in fact Everywhere you look, you –– we –– see CPG products that nothing could be further from the truth. make our lives easier, cleaner, lighter, brighter, safer, better nourished, more satisfying and, in so many ways, sweeter. The breadth, depth and variety of innovation in product, formulation, packaging, manufacturing, marketing, distribution, What did our grandparents see? Well? business process, collaboration and co-invention that has characterized CPG for more than a century –– and that is What is the difference? occurring inside hundreds of companies as you’re reading this –– is nothing short of mind-boggling. The difference is a century of explosively creative response to consumer needs. In a word, innovation. Why is it that this remarkable record –– this staggering difference between our choices and those available to our So, this year, 2008, the 100th Anniversary of the Grocery grandparents or great-grandparents when they were our age Manufacturers Association, we celebrate this astonishing –– doesn’t take our breath away? CPG century with a decade-by-decade overview of a barely representative few of the thousands upon thousands of remarkable THE CPG CENTURY Only, perhaps, because we are, as psychologists might say, CPG accomplishments over the past 100 years –– innovations that “habituated” –– we have lost our sense of wonder because we cover the CPG spectrum from products and advertising we recall Years of live with all these options every day. from childhood to packaging and merchandising innovations 0 remaking today’s store to business systems and processes that will Consumer In the kitchen, flip a light switch –– a new CFL, say. Open serve as the springboard to CPG’s future. the refrigerator, the cupboard, the spice cabinet, the bread Packaged Goods box, the storage drawers, the pantry. Look in the laundry As this survey shows, if CPG has a creativity challenge, it 10 room, the medicine cabinet, the shower stall. Peer under the is that, over the past 100 years, it has set itself such a high kitchen and bathroom sinks. Check the desk, the toilet tank, standard –– an uphill climb for any sector. the trash compactor. Think about the garbage bin, the broom closet, the baby’s bassinet, the bird feeder. Consider the car, Indeed, after reading these pages, you, too, might well the cat box, the canine cookie jar. Glance in the mirror at conclude that a synonym for CPG is –– innovation. your smoothly shaved face, artfully enhanced eyes, youthful colored coif. In 2108, may we all look back on 100 years more. INNOVATION – Carol Fensholt, Editor & Publisher 112 FORUM GMA CENTENNI A L SPE C I A L Iss UE 2008 GMA CENTENNI A L SPE C I A L Iss UE 2008 FORUM 113 “In fiscal 2007, we improved our innovation process. We have THE CPG CENTURY enhanced our ability to take creative concepts and turn them Years of 0 into successful products that capitalize on our branded portfolio Consumer Packaged Goods and reflect the marketplace trends we have identified.” 10 INNOVATION Richard G. Wolford, Chairman, President and CEO, Del Monte Foods s 1910 1909 1910 1911 1912 1913 1914 A decision in 1909 to Albacore tuna is In 1910, McCormick & Company Crisco, the first Del Monte In 1912, the National Five entrepreneurs Morgan Foods In 1914, the Wrigley contract with farmers for discovered in seasonal becomes one of the first producers shortening made replaces Biscuit Company invest $100 apiece in purchases its first Company introduces growing crops, rather than abundance off the of tea in gauze pouches, entirely of vegetable hand-soldered introduces the Oreo 1913 to set up the first truck in 1913 to ship Doublemint in the U.S. renting or leasing the land coast of Oregon in introducing tea bags to the oil, is produced by containers with cookie. The innovative commercial-scale product. By the 1930s, It goes on to become from them, assures Lakeside 1910, and the Bumble marketplace. Procter & Gamble “sanitary” three- combination of two liquid bleach company they become the one of the world’s most Foods of higher quality raw Bee brand is born. in 1911. Since it piece cans in chocolate cookie disks in the U.S. Four years nation’s largest private popular chewing gums products since farmers doesn’t contain 1911, ushering in with a crème filling later, they develop fleet operator with with sales in more than who grow vegetables for animal products, the the era of modern, goes on to become the a less concentrated more than 200 trucks. 150 countries. them are now paid extra for shortening is suitable mechanized best-selling cookie in version for household producing higher quality, for vegan and kosher canning. the U.S. use, and the Clorox more saleable product. diets. brand takes off. 114 FORUM GMA CENTENNI A L SPE C I A L Iss UE 2008 GMA CENTENNI A L SPE C I A L Iss UE 2008 FORUM 115 “Pappas feels strongly that investment in innovation is essential. We want to pass on “We’re taking a strategic approach to THE CPG CENTURY the business to the next generation as an Years of our businesses globally, with a focus on 0 innovative, efficiently-run enterprise, primed Consumer building brands, fostering innovation and Packaged Goods partnering with customers.” for whatever challenges the future brings.” 10 Tom Falk, Chairman, President and CEO Dean Pappas, CEO, Clement Pappas & Company INNOVATION Kimberly-Clark Corporation Signatu re with OUTLINE version Symbol s For overall widths of MORE than 2 inches (Symbol is SMALLER in relation to type) 1920 1921 1924 1925 1926 For overall widths of LESS than 2 inches (Symbol is LARGER in relation to type) 1-Color 2-Color Machine wrapping is Since 1921, Betty Crocker Kimberly-Clark In the early 1920s, a Lever Brothers After studying Eskimos in the Arctic PMS PMS PMS In 1924, Mars introduces Clement Pappas Black 542 425 introduced into the production has symbolized a tradition (orCorporation other single PMS color) introduces cooperative is formed that launches its Clean Milky Way, the first of initiates cranberry and observing that food which is process for Hershey’s Kisses of service to consumers. a disposable cleansing makes butter from fresh, sweet Hands Campaign. three candy bars that processing in 1925 rapidly frozen at extremely low in 1921, with technology also The name of this fictitious tissue called Kleenex cream instead of sour cream, Part of a child health become part of America’s and pioneers the temperatures retains its freshness employed to add the signature First Lady of Food has to remove cold cream and sells it in one-pound policy, it educates confectionary culture. commercial production and flavor, Clarence Birdseye forms plume to the top of the foil become synonymous or makeup instead of packages with individually children about dirt Three Musketeers and of cranberry sauce. the General Seafood Corporation to signify to consumers that with helpfulness, using face towels. It wrapped sticks instead of in and germs and Snickers follow in the (a predecessor to Birds Eye Foods) it is a genuine Hershey’s trustworthiness and quality, also advertises Kotex, tubs. In 1924 a contest is held encourages them next decade. and unveils his “Quick Freeze chocolate. This plume proves and a major brand asset for its disposable feminine to name the product, and the to wash their hands Machine” in 1926. He then focuses to be so popular that it is General Mills. hygiene pad, in Good brand Land O’Lakes – a tribute “before breakfast, on marketing, entering into a joint trademarked in 1924 by The Housekeeping magazine, to Minnesota’s sparkling lakes before dinner and venture to make refrigerated grocery Hershey Company. initially offending readers. – debuts. after school.” display cases for his products. 116 FORUM GMA CENTENNI A L SPE C I A L Iss UE 2008 GMA CENTENNI A L SPE C I A L Iss UE 2008 FORUM 117 “Virtually every consumer product company talks about innovation. The hard part is turning the talk into meaningful results. Our product innovation process has been THE CPG CENTURY completely reinvented. It results in rapid identification and development of fewer, Years of bigger and better ideas. Our innovation parameters are quite clear: Ideas that are 0 Consumer sticky…Ideas that expand our margins…Ideas that play our inherent strength in health Packaged Goods and wellness…Ideas we can own, arising from unique technologies we protect.” 10 INNOVATION Gary M. Rodkin, President, CEO and Director, ConAgra Foods s s 1920 1930 1927 1928 1929 1930 1933 1934 Edwin Perkins modifies At the advice of her In 1929, Hector The modern system of In the 1930s, the Three cranberry A schoolteacher decides to In 1934, Campbell Soup a soft drink syrup called pediatrician, Dorothy Gerber Boardi, an Italian brand management is Tasty Baking growers who want supplement his $65 monthly salary introduces Chicken Fruit Snack in 1927 by struggles to hand-strain immigrant and chef developed by Procter Company, looking to expand the in 1933 during the Great Depression Noodle and Cream concentrating it into a foods for her seven-month- at a restaurant in & Gamble in the early to capitalize on the market for their by selling pepper seeds. Now of Mushroom soups, powder. He packages it in old daughter. Her husband, Cleveland, obliges 1930s and remains the country’s penchant crop come up with a America’s largest producer of varieties that continue to envelopes and changes Daniel, moves the process customers asking standard for consumer for economy, new and innovative pimentos and bell peppers, Moody be two of the company’s the name to Kook-Ade to his Fremont Canning for jars of his tomato product companies launches individually- product made Dunbar vegetables are fresh three top-selling soups (and then Kool-Aid), which Company and, by late 1928, sauce to take home.