Milk Bags – A Truly (Eastern) Canadian Idea Lands in the UK
By admin | August 25, 2010
Well, I have been meaning to write about this one for awhile…
A couple of weeks back I was intrigued by the intro to CBC Radio One’s late morning show “Q”, where host Jian Ghomeshi talked for more than two minutes about the little bit of Canadiana that many of us have in our fridges – milk in bags.
Ode to Canadian Milk Bags on CBCs Q
Now, back in Nova Scotia, I grew up with cartons of milk in our fridge but my grandmother swore by milk in bags. Growing up in a province where three dairies (Farmers, Scotsburn and Baxter) all had full assortments at both Sobeys and Superstore, as well as in many c-stores; the brand and format of your milk was not a rare topic of conversation.
In doing a bit more research I found that milk in bags is a hot topic, at least among a select few. Google “milk bags Canada” and you will find 2.1 million hits including a very informative article from the Toronto Star (includes a demo video).
Bags of milk are not available in all areas of Canada. They are very popular in Ontario where up to 80% of milk is bought in bags, while they rarely ever make it across the Ontario / Manitoba border.
Bags have been used in Canada since the late 1960’s and have three widely touted benefits:
- They use less plastic than jugs
- They keep milk fresher as 4L is stored in three bags
- They offer a price advantage vs. other formats
There is some debate as to whether the milk bag is better for the environment than paper cartons or plastic jugs. One of the main barriers is the capability of municipalities to sort and recycle this waste. Heck, we just started having curbside recycling here in Calgary just last year, while Edmonton has offered this service since 1988.
However, it looks like the milk bag is starting to take hold across the Atlantic in the UK where according to an article in the Guardian, Sainsbury’s is rolling out its milk in bags in a bid to save the environment.
Interestingly, Sainsbury has added some great features including printing on each individual bag and a better serving device that completely encloses the bag and looks like a pitcher with a lid on it.
The pitchers from the UK (right) look much fancier than the ones I have been lugging from city to city (left) since I left Quebec in 2006.
Will milk bags ever make it out to Calgary? I can only hope so…
Topics: August 2010 | No Comments »
Nespresso – The Best Coffee You May Have Never Heard Of
By admin | August 25, 2010
As many of you already know, I had the opportunity to live in Paris for about two years when I was the Global Sales Training Director for L’Oreal Consumer Products Division.
While there, I fell into the French coffee culture, where an espresso appears in your daily ritual three or four times a day and the company café is where all the important decision are made among colleagues.
While I was in Paris, Nestle was in the midst of launching its premium coffee delivery system called Nespresso. Seemingly everyone in the city was awaiting the opening of the Nespresso flagship store on the Champs Elysees – a true temple to the caffeinated bean.
What is Nespresso? That’s a good question, as here in Canada the awareness is very low and the product is only really available through on-line sales and machines at a limited number of retailers.
At the heart of the system is a small capsule that contains the coffee, which is inserted into the brewing chamber of a specific machine that accepts only Nespresso capsules. There are a myriad of coffee flavors available, each designated as the best selection for specific drinks (espresso, mocha, latte, etc.) and to match your individual tastes.
The capsules are not available at supermarkets – you must buy from a Nespresso shop or through its on-line club.
But why has Nespresso not caught on in Canada? Probably the biggest reason is the lack of Nespresso boutiques in this country. This is where the true experience comes alive and you become tempted to drop $200+ on a machine and upwards of $0.40 per capsule for the coffee.
My wife and I recently visited the Paris flagship after me rambling on and on about it each time I returned from working in Paris. Skeptical at first, she was convinced we needed a machine once she experienced this store.
First, the store feels more like Tiffany than Safeway. You are greeted by a doorman and enter a colossal space which includes a street side café, a machine gallery, coffee bean interpretive centre, accessory boutique and of course the consultation area; where each shopper can have a face-to-face and over the counter interaction with a counselor.
The counselor helps you pick the right pods, introduces new products and logs all of your purchases in your Nespresso Club profile – helping them get to know you as an individual consumer.
Of course, at the back of the store there is a quiet café with great service, where you can experience any of the products served with all the proper ritual and accessories such as Nespresso cups, spoons and even a small palate for a square of chocolate.
In fact, Nespresso has identified the chocolate square as part of the consumer’s coffee ritual and has launched premium chocolate squares as its first extension of the brand. A perfect fit for one of the world’s largest chocolatiers.
As discussed in this article (free subscription required), Nestle has had an exclusive run in the super premium segment of the coffee category until recently. Protected by patents, exclusive distribution through its own channels and the strength of its branding (including George Clooney as its principal “ambassador”), Nestle has a great head start on copycats and private labels.
Nestle has taken a commodity category and created a super-premium segment by focusing on the experience of the shopper and the ritual involved in preparing and consuming its product.
How can you capture this approach and apply it to your category in order to drive profitable and sustainable growth for your business?
Great justification for a “research trip’ to Paris, non?
RELATED: Nestle Works With Coffee Farmers to Improve Supply
Topics: August 2010 | 1 Comment »
Nutrition Advice – A Huge Opportunity For Canadian Retailers
By admin | August 8, 2010
We’ve all heard the stats before. Canada has a very high level of overweight and obese persons – myself included. At 6’ 2” and 225 lbs my BMI (Body Mass Index) is 28.9.
For those of you who are not familiar (or choose not to be) overweight is classified as a BMI greater than 25 and obese kicks in at a BMI of 30 or above.
Back in January I “peaked” and decided to make a change. I enrolled in a 10K clinic with the Running Room and completed my first race in March. I am now on the tail-end of a half-marathon clinic and will run 21.1 km on August 22nd.
What has struck me during this whole experience is the lack of really solid nutritional advice available at the place where we get the bulk of our food – the grocery store.
My goal here is not to blame the system or producers of high-calorie foods. Personal choices are where each individual needs to be accountable. I chose to eat the Old Dutch Chips and the PC Decadent Chocolate Chip Cookies. I think that everyone needs a little junk food – just not as much as I ate without a healthy dose of exercise.
Of course, the Canada Food Guide (circa 1942), Health Check (circa 1998) and Mandatory Nutritional Labeling (circa 2005) were steps in the right direction. In recent years, some manufacturers have launched their own food rating systems (Kraft and Pepsico come to mind) with varying levels of consumer / industry acceptance and controversy.
Individual product information is helpful. However, there is no one source for getting nutritional advice for your total basket.
A recent feature on the US morning show “Good Morning America” (link) got me thinking that Supermarkets (and other food retailers) could do much more to help their shoppers make better food choices.
Here are a few of my thoughts:
1) On-Site Nutritionists
Many Nutritionists and Dieticians offer grocery store tours to help their clients make better decisions when they are shopping for groceries. Why don’t more grocery chains make this be a service that is offered on a regular basis and widely promoted? This is an expensive service for a shopper to acquire privately but would show great value and build loyalty if it was offered by the store they normally shopped.
2) Nutrition Based Promotions
Why not encourage shoppers for making healthy choices? Even in a category like potato chips one can chose lower salt or baked options. Make these the “featured” product by giving them prominent placement in flyer and in displays. This might even encourage suppliers to develop more healthy products, as those who choose not to participate will lose share of shelf and promotional exposure.
3) Loyalty Card Analysis
Many retailers are stockpiling reams of purchase pattern data through Loyalty Cards. What about “mining” this data and offering nutritional suggestions for shoppers through detailed “report cards” or even simple register coupons for healthier choices. Safeway is already doing this in the United States.
4) Meal Plan Services
Shoppers have routines that are fuelled by habit and lack of time for shopping. Growing up I had pork chops and mashed potatoes almost every Wednesday night. My Mom was busy and pork chops are tasty so it was an easy shopping decision for her.
If retailers could create healthy and tasty meal plans and shopping lists that shoppers could match to their lifestyle (active, young family, weight loss, diabetic, gluten free, etc.) that were downloadable to your computer or iPhone; you could make substantial in-roads by saving shoppers the time the would have to invest to break their habits.
5) Nutrition Ratings Systems
Ok, I admit this is a tough one for me to swallow. We all use ratings systems to book hotels, airlines and even pick companies we like on Facebook. But can it work for food choices?
It is a noble idea but if each retailer were to develop their own star/points system, with each product assigned a score or rating there would be mass chaos, confusion and cost.
However, an easy rating system that is consistent regardless of where we shop and prominently displayed on-shelf would be helpful to many shoppers.
This is a perfect area for the Canadian Council of Grocery Distributors, Canadian Federation of Independent Grocers, Food & Consumer Products of Canada and Health Canada to work together and build a world-class rating system with input from retailers, suppliers and regulatory authorities. Until all four stakeholders have “bought in” any ranking system will be doomed from the outset.
Retailers have a huge, an often untapped, power for societal change that could be leveraged here. Wal-mart has led the “environmental” charge in recent years with many various projects aimed at reducing the footprint of their operations while at the same time reducing costs and increasing retail margins.
Wal-mart did not only influence shoppers with their “green” approach but also the supplier community. Categories from Laundry Detergents to Toilet Paper to Lightbulbs were all “greened” by Wal-mart working with its supplier partners.
Retailers and Suppliers can do the same for Nutrition – especially now that a “best practice” is in place thanks to the greening that has taken place over the past three or four years.
January and the infamous New Year’s Resolution season will soon be upon us. What a perfect time to launch Nutrition based programs that actually make a difference in the lives of shoppers and their families.
And let’s not forget, when consumers live longer and healthier lives, they work more, earn more and live longer – and they buy more from food retailers.
Talk about healthy sales and margin growth for both the retailer and the supplier!
Topics: August 2010 | 3 Comments »
Book Review: Private Label Strategy
By admin | August 1, 2010
Over the past year or so, Private Labels have been at the forefront of my discussions with both CPG retailers and suppliers. These products have been one of the key drivers in the industry through the latest economic downturn.
While working with a retail client recently on a Private Label initiative, one of my contacts suggested that I read “Private Label Strategy – How To Meet The Store Brand Challenge” by Kumar and Steenkamp.
Whether you are a retailer or a supplier this book is definitely a great addition to your professional library.
The authors are both Marketing professors and the book is published by Harvard Business Scholl Press. However, the book goes beyond academic theory and delves more into practical hands on advice for both retailers and suppliers.
Neatly divided into two perspectives, the book explores Private Labels strategies from a retailer perspective first and then from a supplier / manufacturer perspective in the second half.
Regardless of your role, I highly suggest reading both “sides” of the story to better appreciate the whole picture of this fast growing segment of the market.
Given that President’s Choice and “no name” are the two largest CPG brands in Canada (yes, bigger than Kraft, Kellogg’s or Coca-Cola), Private Label strategy is a subject area worth our time and attention!
Topics: August 2010 | No Comments »
BOGO Redefined: Buy One, GIVE One
By admin | July 22, 2010
I read an interesting article on Retail Wire (Free Subscription Required) today, highlighting the efforts of apparel and toy retailers, which have reinvented the typical Buy One, Get One BOGO into a charitable program of Buy One, Give One.
For instance, children’s apparel chain Whitten Grey offers its shoppers the ability to buy one eco-friendly dress and choose from a selection of African countries where their second dress will be donated. The shopper also gets to pick the color of dress to be donated and to include a personal note to the little girl that will receive her dress in Africa. A noble program.
Lately, I have been noticing the Food Bank donation bins located next to Supermarket exits and just how bare these bins are at this time of year. There are also noble programs but how could retailers and suppliers really make it BIG?
By adopting the Buy One, Give One promotion mechanism in Supermarkets both suppliers and retailers can raise awareness and make it easy for shoppers to donate to Food Banks.
Suppliers and Retailers still get to build brand and category sales while the Food Banks would be consulted to identify products they need at a specific point in time to ensure the maximum benefit is generated for the community. A real win-win-win.
This program could also go beyond Supermarkets and Food Banks.
Another high need group includes Women’s Shelters that protect women and children from abusive situations. Drugstores and Mass Merchandisers could make a difference with BOGO programs on health & beauty products, diapers, infant formula and so much more.
Food Banks and Women’s Shelters need our help all year round. However, the holiday season will soon be upon us, and what better time to kick off a Buy One, Give One program than when need is high and shopper awareness is equally high.
Imagine if each retailer in Canada ran only one of these promotions per year, with the free products being placed locally. With the high level of geographic overlap, our industry could stabilize the supply to these important organizations and make a huge difference to Canadians in need.
Food for thought.
Topics: July 2010 | No Comments »
Wal-mart & P&G Take Collaboration To The Next Level
By admin | July 18, 2010
Last Saturday, my wife and I sat down to watch a little bit of television on a gray and rainy night with not much hope of finding new content in the depths of mid-summer.
We settled on a “new to us” movie called “Secrets of the Mountain” on NBC – which turned out to be the latest in Wal-mart / P&G collaboration.
Think Hallmark Hall of Fame but with product placements and advertisements from both Wal-mart and P&G.
We have always known that these two companies have had a close relationship, which is evident in stores, but this really takes things to the next level.
Cast with credible actors, well produced and containing a decent “family story” – the movie quickly starts with product placements from P&G brands like Pringles and Dawn. They also included several “pantry shots” with plenty of Wal-mart’s “Great Value” brand predominantly placed.
This is a great example of how suppliers can build their own, as well as Private Label brands, at the same time.
The movie was sprinkled with 30-second spots for both P&G products and Wal-mart’s current Rollback campaign. There were also plugs for the second movie in the series titled “The Jensen Project” which aired this past weekend.
In Canada, this could be a great new way for suppliers and retailers to work together. Imagine the Unilever / Loblaws movie hour on CBC.
Production costs could be lowered through attractive tax incentives offered by both Federal and Provincial governments for generating Canadian content. We have a wealth of great Canadian talent from actors, producers and musical artists that could result in quality content.
Bulk purchases of commercial airtime would reduce the cost per impression (did I mention the US airing of “Secrets” drew 7.5 million viewers) while the saturation of ads and product placements would like increase media spend efficiency.
Add to this the potential for strengthening the supplier / retailer relationship – this could be a winning solution for both sides of the equation.
The question is “Who will be first in Canada?”
Topics: July 2010 | 1 Comment »
Amazon – A Threat to Canadian CPG Retailers?
By admin | July 11, 2010
Several weeks ago our newsletter carried a story about how Canadian Heritage has finally allowed Amazon to build its own warehouse / fulfillment centre in Canada. Due to what some would argue are protectionist strategies to support Canadian booksellers – Amazon orders are currently managed and fulfilled by a Canada Post warehouse.
Up until this point Amazon was only a major threat to Book, Music and DVD retailers in Canada. This new fulfillment centre will give Amazon the flexibility to enter into new categories such as electronics and general merchandise and beyond.
But could Amazon move into CPG categories such as dry grocery, home care and personal care?
A story on Reuters is reporting that Amazon is now offering an on-line Grocery service in the UK to compete with Tesco, J. Sainsbury and others in this developed Grocery delivery market.
Could Amazon do the same in Canada?
On the pessimistic side, one could say that shipping cans of corn or boxes of laundry detergent through the mail makes it hard to make money. There is some truth to this however Amazon is likely one of Canada Post’s biggest customers and no doubt could negotiate some nice price breaks.
On the optimistic side, many Canadians that live “North of 60” receive a large proportion of their groceries by “Food Mail” – the contract for which was recently awarded to the Northwest Company. Of course the costs are much higher than urban Canadians pay (and is backed by a federal subsidy).
Not much is stopping Amazon from launching a service that focuses on urban markets by launching smaller fulfillment centres across Canada or partnering with an existing retailer like Sobeys to source direct from stores – the model used by many on-line grocery retailers including Toronto’s Grocery Gateway (in partnership with Longo’s).
Amazon brings a powerful brand to everything it does. In fact, a report by Kantar Retail and Milward Brown has identified Amazon as the second most valuable retail brand in the world, trailing only mighty Wal-mart.
That’s right. Amazon’s brand is worth more than Tesco, Carrefour, IKEA or Costco.
Given their established brand identity and new found flexibility with their new fulfillment centre, Amazon’s move into the Canadian CPG scene may not happen tomorrow; but it may happen much sooner than we think it possibly could happen.
Topics: July 2010 | No Comments »
A Peak Inside Canada’s Biggest Retailers & CPG Suppliers
By admin | July 7, 2010
A report released by Report on Business Magazine that ranks Canada’s Top 350 Private Companies is an interesting read for both retailers and CPG suppliers in Canada.
Most intriguing is a look at the revenues of Canadian companies that are privately owned by other companies (such as Canada Safeway or Unilever Canada). This information is required to be disclosed and most companies would prefer to not highlight their Canadian revenues in the consolidated annual reports.
This information complements the insights found in the SINS Canadian Retailer Year in Review which we aim to keep up to date with the latest information from the Annual Reports of Canada’s biggest retailers (home-grown or international).
A very interesting read.
Topics: July 2010 | No Comments »
Why KAMs Need Category Management Skills Today More Than Ever
By admin | July 7, 2010
When I first started as a KAM at Unilever in 1997, Category Management was just emerging in Canada and quite frankly was the domain of a few people in the sales team that were gathered in one corner of the office surrounded by mountains of AC Nielsen data books. That’s right – literally huge binders of panel data that were sent to the offices once per month and stored in rows upon rows of cabinets.
Heaven forbid if you took a book and didn’t return it to its correct spot – especially as a KAM. The CatMan people would hunt you down and scold you.
With the arrival of Workstation software on my computer things changed forever. Unilever was very forward thinking in having all their KAM teams to be proficient in Workstation and have at least the fundamental Cat Man skills so that they could find growth opportunities with their clients and be full participants in Category Management Projects.
Cat Man analysis was firmly embedded in the KAM role whether it be for business planning, business reviews, opportunity gap analysis or full blown CatMan projects.
Today, I am surprised at how the level of proficiency in CatMan skills is on the decline in the KAM population. Often KAMs are not even able to use basic CatMan concepts that would help them grow their business. I often get blank stares when I talk to participants in my KAM Training courses about simple concepts like CDI and BDI. Yikes!
Of course, the true spirit of CatMan is an objective approach to the category that is not influenced by one particular supplier’s view on the category and brands within. The goal is to “grow the pie”.
But for a KAM, CatMan skills can be used offensively to find opportunities to drive their brand growth.
In today’s tough economy where every sale at retail involves an intense battle – KAMs need to have these analytical skills to keep ahead of the competition and find opportunities for them to grow their market share within their customer.
In working with over 1000 KAMs from 80 countries around the world I have developed a list of core competencies of a world-class KAM and Category Management Skills transcend several of these competencies including: Thorough Business Planning, In-Touch With the Retail Reality and Fact Based Selling.
Interestingly, we have a world-leader in Category Management training right here at home. Category Management Knowledge Group, based in Calgary, offers high value on-line Category Management training that won’t break your training budget. Their training has even been approved as part of the accreditation process by the industry-leading Category Management Association.
CatMan is not just for the CatMan department. What is your plan to sharpen your CatMan skills?
Topics: July 2010 | 1 Comment »
SINS Market Visit Report – Carrefour Bucharest, Romania
By admin | July 4, 2010
While in Bucharest recently I had the opportunity to explore a local Carrefour Hypermarket of which there are more than twenty in Romania.
These stores are massive and are full of great ideas that CPG professionals around the world can learn from and help improve their business.
I have taken some of the best ideas and summarized them in our SINS Market Visit Report including:
1. Carrefour – Everything Under One Roof
2. Office Supplies Merchandising
3. Clear Brand Blocking – Cat Food
4. Branded Bulk Pet Food
5. McDonald’s Ketchup – Kid Appeal
6. In-Section Promotion Zones
7. A Fragrant GWP Idea
8. Value Sizes In The Beer Category
9. Usage Occasion Insight in Spirits
10. Wine “Shop In Shop”
11. Impulse Purchase Sidewinders
12. Highlighting Bio Dairy Products
We hope you enjoy this peak inside the world’s second largest retailer.
Download the full report here.
Topics: July 2010 | No Comments »
