Vol. 2 No. 3

March  2008

Retailer Profile

  The Industry Affairs Review is made possible

by support of:

 

In This Issue:  

   

Retailer Profile:
Starbucks' Shultz

 

GMA Profile:

Hershey's CIO

 

Collaboration at IS/LD

 

Save the Date: Unsaleables Conference

 

Unsaleables Project Update

 

GAGNY Highlights

 

Sustainability

Resource Guide

 

Trend Snapshot

  

Datebook

 

 


GMA Industry

Affairs Group:

 

Troy J. Beeler
Senior Manager

Sales & Sales Promotion

  

Jonathan Downey

Coordinator

Business Development
  
Jeanne Iglesias
Director
Supply Chain & Technology

 

Alexis Larkin

Assistant

Supply Chain &

Technology
 
Brian Lynch
Director
Sales & Sales Promotion

 

Jessica Martin

Intern

Industry Affairs
 
Stephen A. Sibert
Senior Vice President
Industry Affairs

 

Brooke Weizmann

Senior Manager

Industry Performance

 

 


Industry Affairs

Review Team:

 

Natalie Berg
Grocery Retail Manager
Planet Retail Ltd.
IAR Consultant

 

Lisa Allen
ALLEN Communications, Inc.

IAR Editor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Starbucks Icon Returns to Re-energize a Maturing Chain

 

At a Glance

 

  Key Operating Facts

Group Sales (Inc VAT) 2007

USD $12.2 Billion

Net Sales (Ex VAT) 2007

USD $  9.4 Billion

EBT

USD $ 1.056 Billion

No. of Countries

42 (at end of 2007 fiscal year)

Key Markets

US, Canada, UK, China

Key Formats

Coffee shops

          Source: Planet Retail Ltd. - www.planetretail.net

 

By Planet Retail

 

The king of coffee is back. Howard Shultz, the man largely credited for making coffee hip, regained his position as CEO of Starbucks on January 8 and prompted the resignation of incumbent CEO Jim Donald. The move comes at a critical time for the coffee house giant, which is aiming to turn around its slowing US-based business.

 

Schultz took over as Starbucks’ chairman and chief executive in June 2000 but later divided leadership duties between himself and Donald, with Donald serving as CEO and Shultz assuming the role of chairman. In returning to the position that made him and the Starbucks brand famous, Shultz is now charged with reassuring investors that the company is still exciting and innovative.

 

Starbucks'  Founder, Chairman,

President and CEO, Howard  Schultz

Shultz is widely recognized for expanding Starbucks into a retail icon and cultural phenomenon. He joined the company in 1982 when it just sold coffee beans, leaving after three years to form his own chain of Il Giornale coffee stores.  He eventually acquired Starbucks from the management team for USD3.8 million in 1987, rebranding the Il Giornale coffee shops under the Starbucks banner.

 

Under Shultz’s leadership, Starbucks expanded aggressively across the US and the world. He believed getting a good cup of coffee was only one part of the equation: consumers also wanted to be a part of the “Starbucks’ experience.” Starbucks’ warm interiors, hip music and cosy vibe are found in all of its stores, with formats changing only for specific countries such as Saudi Arabia.

 

Married with two children, Schultz lives in Seattle, Starbucks’ home town. The city is also home to another of Schultz’s passions, the Seattle Supersonics, which he bought in 2001 as part of the Basketball Group of Seattle. Although he has since sold the team, Shultz remains a loyal sports nut.

 

Starbucks has expanded a long way from home

Source – Planet Retail – www.planetretail.net

 

While Schultz may like sports, he positively loves Starbucks. His now famous memo to then CEO Jim Donald detailed what Schultz saw as the “commoditization of the Starbucks’ experience.” The memo, which said rampant expansion had dulled the company’s uniqueness and attention to detail, became a de facto mission statement

that prompted his return to the company. Under Shultz’s management once again, Starbucks will likely look to get closer to its customers and find innovative ways to improve their enjoyment of the brand.

 

  

Industry Affairs News

 

Supply Chain and Technology

 

GMA IS/LD Conference Stresses Manufacturer-

Retailer Partnerships
Collaboration will be the theme of this week’s GMA 2008 Information Systems & Logistics Distribution (IS/LD) Conference, March 30 – April 2 at The Westin Mission Hills Resort & Spa in Palm Springs, CA, with more sessions focused on manufacturer-retailer partnerships than ever before. Co-located with the Food Marketing Institute (FMI) Supply Chain Conference, IS/LD is must-attend event for information technology and logistics executives.  


Conference highlights include:

  • Ahold Global discussing its approach to providing a “clear view of data” between trading partners

  • Kimberly-Clark on leveraging virtual reality technology for insight development and store environment enhancement

  • Giant Eagle, Inc. and General Mills, Inc. on creating supply chain growth

  • Executives from The Coca-Cola Company, Safeway, Inc., Wegmans Food Markets, Inc. and The J.M. Smucker Company in a panel discussion on “new ways of working together”

 

For post-conference materials contact Alexis Larkin.

 

 

Sales and Sales Promotion

 

Save the Date: Joint Industry Unsaleables Conference, September 22-23
The 2008 Joint Industry Unsaleables Management Conference will be held September 22-23 at the Renaissance Vinoy Resort & Golf Club in St. Petersburg, FL. Manufacturers, retailers and service providers interested in exploring challenges associated with unsaleables should plan to attend this highly-regarded annual conference. Session topics are currently under development; please contact Troy Beeler with input and/or speaker proposals. For more information about sponsorship opportunities, contact Jonathan Downey.

 

Annual Study to Explore Costs, Root Causes Linked

to Unsaleables

The GMA/FMI Joint Industry Unsaleables Leadership Team and Deloitte Consulting LLP will complete the data collection phase of its annual unsaleables survey at the end of March. The survey analyzes costs, root causes and industry best practices associated with unsaleable products, and provides the foundation for an annual report on improving management practices. If your company isn’t already involved in the study, don’t miss the opportunity to participate: contact GMA’s Troy Beeler for more information.

 

 

Industry Performance

 

Product Safety, Innovation Underscored for Industry Analysts at CAGNY
Escalating commodity costs and a weakening US economy were among hot topics presented to Wall Street’s industry analysts by food, beverage and CPG companies at the annual Consumer Analyst Group of New York (CAGNY) event last month. Companies acknowledged that tackling these challenges will take time, but for now are largely focused on three key areas: improving safety and quality of existing brands; innovating in the areas of sustainable packaging/delivery and healthy, convenient products; and creating fresh marketing messages. “Boosting product safety and quality was a key message sent to analysts and it reinforces the importance of GMA’s work to strengthen, modernize and improve our nation’s food safety system,” said GMA Senior Vice President of Industry Affairs Stephen Sibert, who attended CAGNY along with GMA’s Brooke Weizmann, senior manager, industry financial performance.

 

Other key goals issues/goals shared at CAGNY included tapping into markets in developing nations, particularly BRICs countries; the ethanol debate and rising energy and commodities costs; and the reevaluation of pricing for both competitive advantage and cash generation. Also on the horizon: new tax and accounting standards and a pending fight in Washington to gain relief on taxes and SEC regulation.

Contact: Stephen Sibert or Brooke Weizmann

 

 

Environmental Sustainability

 

Environmental Sustainability Resource Guide Goes Online this Spring

GMA is introducing a virtual version of its popular Environmental Sustainability Resource Guide, which will allow visitors to search for-profit and not-for-profit companies actively engaged in sustainability initiatives within the CPG and retail industries. The new online format will also allow users to access case studies and other educational materials from featured industry partners. The guide will be posted on the GMA Environmental Sustainability Summit website in late spring. For information about being listed in the guide, contact Jonathan Downey

 

 

 

 Bringing the voice of the shopper to the sales and marketing process.
www.SmartRevenue.com

 

New Report Shows Revenue Growth Depends on Exceeding Shopper Needs

Grocery marketing has come a long way from the big brand dominance of decades past, with today's marketers operating via multiple retail channels, dozens of marketing vehicles and a more savvy, information-rich consumer. A new position paper by SmartRevenue examines the benefits of using "Shopper-Centric" knowledge to build models of the most effective ways to deliver what shoppers want, when and where they want it. The model looks at the shopping trip as the confluence of all promotional activity, starting from the home and/or workplace and leading to the store shelf and the POS. SmartRevenue's paper explores how marketers can move beyond existing demand creation paradigms and begin converting data into competitively useful insights and shopper-centric strategies to increase conversion at the customer, category and brand levels. Click here for the full report.

 

 

  

 

Trend Snapshot

 

GMA’s Industry Affairs Review has teamed up with consumer research firm NPD Group to provide readers with a monthly snapshot of consumer trends and eating patterns. Check out the latest research in this space each month. 

 

Despite recent food safety incidents, Americans believe their food supply to be safe.

 

“Overall, I feel foods sold in supermarkets/restaurants are safe.”
Percent of Adults Agreeing with Statement

 

Source: The NPD Group - www. npd.com         

Based on 1 year ending February 2007         

 

Americans have shown steady confidence in the nation’s food supply over the past five years, with a majority agreeing that food sold in supermarkets/restaurants is safe.

Contact: Troy Beeler

 

 

GMA Leadership Profile

 

GMA Leadership Profile:

George Davis, The Hershey Company

 

Current Position:

  • The Hershey Company for 7 years

  • Vice President and Chief Information Officer, member of The Hershey Executive Team

Leadership:

  • GMA Information Systems (IS) Committee

  • Chairman, GMA IS Committee

  • IT Consultant to Homeland Security

  • Executive Board of Directors, Children's Miracle Network

  • Board of Directors, Technology Council of Central Pennsylvania

  • Board of Directors, Leadership Harrisburg Area

  • IT Advisory Board, Penn State University, Middletown Campus

  • IT Advisory Board, Villanova University

  • Habitat for Humanity

Career Highlights:

My greatest highlights have been working with people and watching them grow and mature in their jobs under my leadership.  To take an IT Department and develop and encourage the skills of my employees to create a highly effective team is my greatest achievement.  It is an honor and responsibility to pass on what I have learned over the course of nearly 40 years in business.
 

Personal:

I was born in Kittery, Maine on October 28, 1948.  I have two older brothers and two older sisters so that makes me the youngest, and, as we all know, the youngest is the most trouble.  I was no exception.  It wasn’t until I joined the Judo Team in High School that I learned the value of control and discipline.  My Dad was a career Navy Officer, and after college, I received my commission in the Air Force.  I married my high school sweetheart, Mary, during our senior year in college, Today we are the proud parents of two daughters, Sarah and Kate, and the proud grandparents of five.  In my family, we are still known as the newlyweds.  On weekends I can be found fixing something, gardening, or woodworking.  I am always busy.  I love to travel, fish, and hike in the woods.
 

Education:

  • Elementary:  Oliphant Elementary, Middletown, Rhode Island

  • High School:  Fitch Senior High, Groton, Connecticut

  • College:  University of Connecticut, Storrs, Connecticut.  Bachelor of Arts, Biochemistry.

First Job:

My first job was in junior high school.  My mom wanted me to get a job delivering newspapers, but since that involved getting up early, I wanted nothing to do with it.  Then one day I was walking home from school and the owner of a junk yard I was passing asked me if I would like a job.  It seems he had a big contract to demolish old Navy housing and he needed someone to pull the nails out of the wood so he could resell it.  So that’s what I did.  I stopped by every day after school and all day Saturday and pulled nails out of wood.  I think I made a $1.00 an hour.  I did so well that he kept me on all summer to help sell all that wood.

 

How’d You Reach Where You Are Today?:

I have always thrived on challenging opportunities, and as a result, I have always chosen or volunteered for jobs and assignments that others thought were impossible.  Sometimes they were right, but most of the time they were not.  I would not only succeed, but it would become a stepping stone to bigger and better opportunities. In other cases, failure also led to greater future success. I have worked for public companies and private companies.  I have worked in the Consumer Products, Food Service, Food Processing, Fragrance and Cosmetics, Consulting, and Aerospace and Defense Industries.  I have insourced, I have outsourced, and I have worked for an outsourcer.  Through it all, I focused on my goal, which was to be the Chief Information Officer of a Fortune 500 Company.  In January 2001, I got that chance and joined The Hershey Company as their first Chief Information Officer.
 

Success is a lot of things.  Some of it is luck, timing, and location.  All of it is hard work.  Much of it is the support of the people who surround you and the people who work for you.  I believe that “the harder I work, the luckier I get.”

 

 

Datebook

 

Mar. 30-
Apr. 2     

Information Systems and Logistics Distribution

(IS/LD) Conference

Rancho Mirage (Palm Springs), CA

Contact: Jeanne Iglesias, Liz Cookson

 

Apr. 17

Industry Development Team Meeting

Washington, DC

Contact: Jessica Martin

 

May 5

Industry Affairs Council Meeting

Four Seasons Hotel Las Vegas

Las Vegas, NV

Contact: Diana Randazzo

                                                                             

June 6 - 8

GMA Executive Conference

The Greenbrier

White Sulphur Springs, WV

Contact: Mary Olsen

 

July 9 - 10

Consumer Confidence Summit

Washington, DC

Contact: Stephen Sibert

 

 

 

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@ Copyright 2007 by GMA, 1350 I Street N.W. #300, Washington, D.C. 20005. All rights reserved. Some content and copyright for specific information are provided and owned by Planet Retail, a leading provider of grocery retail intelligence— www.planetretail.net.

 

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