morning business session master deck - march 2017...8 food delivery –disrupting how food is bought...

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Morning Business Session

Panel Presentation: “Disruption — Business as Unusual”

Presentation to the members of theAmerican Bakers Association

Cyrille Filott –Global Strategist Consumer Foods

Business as Unusual

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Rabobank: The world’s leading F&A bank

Note 1: Ranking as per Global Finance 2015

EUR 426bnoutstanding capital with

EUR 98bncommitted to the F&A sector

Active in all segmentsin the Netherlands with a

F&A focus worldwide

Located in

43countries

ranked amongst the

Top 25safest banks globally

(1)

Access to finance, knowledge and networks

Rabobank Banking‐for‐Food

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Disruption!Introduction

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• Sales on this day through TMall

• 2009: < USD 100 mln

• 2016: USD 17.8 bln

• Number of parcels: 657 million

• Best selling food brand: Three Squirrels

Singles day in China

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• The consumer

• Channels• Competitive forces• Including disruptive innovations

• Political changes

• The economy

• Supply chain/commodity prices

Industry issues Macro factors

Disruption – outside factors influencing a business

Disruption!The Consumer

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Experience

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Sustainability

Convenience

Health

Transparency

Millennials are changing eating culture

• Convenient, seen as healthy

• Experience through interesting flavours

• Market growth of 50% in past 5 years

Examples

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• Now 5% of the US food market (from 0% 20 years ago)

• Double digit growth rates

• Seen as healthy and more sustainable

Organic food Popcorn

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• In 70% of food categories big brands are losing share to small brands in food retail

• Distrust of (big) brands

• Big food companies slow to turn the ship

‐6.0%

‐4.0%

‐2.0%

0.0%

2.0%

4.0%

6.0%

BakedGoods

FrozenBakedGoods

Bread Pastries DessertMixes

Market share changes 2011‐2015 in food retail

Big Brand Private Label Small Brand

Different appetite for brands

Where do consumers learn and talk about food?

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Disruption!Channels

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0%

10%

20%

30%

40%

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Hypers Superstores/ Supermarkets Hard & Soft discount, limited Convenience stores Other Online

Europe: where are people to buy food?

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Food delivery – disrupting how food is bought

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Online grocery

• Impact on assortments, marketing and supply chains

Meal kits

• Simple DIY

• Fast growing market – opportunities for bakers?

Ready‐to‐Heat

• Catering to a particular audience?

Ready‐to‐Eat

• Without an (aggregator) app restaurants will find it tough to survive

Food retail type Food service type

With a huge impact on suppliers

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Marketing• Demographics

• Impulse

• Basket size

• Over‐index/under‐index

• Filters

• ‘Share of screen’

• Category captain

• Profiling

• Price blurring

• Digital coupons

• Listing fees

• Support new entrants

• Consumer tracking

• Profiling

• Benchmark

• Big data vs. privacy

Assortment• On‐screen visibility

• Formulations

• Brand /logo recognition

• Substitution

• Ranking

• Reviews

• More SKUs/’long tail’

• NPD

• Auto‐fill

• Freshness

• Packaging size

• Pricing strategy

• Private Label/Store Brands

• Regional products

• Cross‐selling

• Loss leaders

• Shopping lists

Supply Chain• Complexity

• IT investments

• Working capital

• Forecast data

• Logistic costs

• Production costs

• Production runs

• Delivery times

• Shrinkage

• Listing fees

• Packaging standards

• Recalls

• Direct to consumer

• Market places

• Alternative channels/platforms

• Fulfillment

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Disruption!Innovation

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This time it is personal

Personalised marketingPersonalised food

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The connected world will lead to disruption

Money Technology People

Start ups everywhere

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No bakery –yet?!

High barriers to entry

Not necessarily “on trend”

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Panel discussionConsumer, Channels, Competitive forces

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This document has been prepared exclusively for your benefit and does not carry any right of publication or disclosure other than to Coöperatieve Rabobank U.A. (“Rabobank”), registered in Amsterdam. Neither this document nor any of its contents may be distributed, reproduced or used for any other purpose without the prior written consent of Rabobank. The information in this document reflects prevailing market conditions and our judgement as of this date, all of which may be subject to change. This document is based on public information. The information and opinions contained in this document have been compiled or derived from sources believed to be reliable, without independent verification. The information and opinions contained in this document are indicative and for discussion purposes only. No rights may be derived from any potential offers, transactions, commercial ideas et cetera contained in this document. This document does not constitute an offer or invitation. This document shall not form the basis of or cannot be relied upon in connection with any contract or commitment whatsoever. The information in this document is not intended and may not be understood as an advice (including without limitation an advice within the meaning of article 1:1 and article 4:23 of the Dutch Financial Supervision Act). This document is governed by Dutch law. The competent court in Amsterdam, The Netherlands has exclusive jurisdiction to settle any dispute which may arise out of or in connection with this document and/or any discussions or negotiations based on it. This report has been published in line with Rabobank’s long‐term commitment to international food and agribusiness. It is one of a series of publications undertaken by the global department of RaboResearch Food & Agribusiness. ©2017 ‐ All Rights Reserved.

@Cyrille_Filott

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Source: Deloitt US, 2016

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Thank you

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Click to Add Title

Click to add text

American Bakers Association

Ashleigh MichaelsCorporate Executive R&D ChefFood Programs and OffersMarch 27, 2017

About Me…

– Food Manufacturing • Schwans, Dawn Foods, De Beukelaer Cookie Company, AllergyFree Foods

– QSR, CPG/Licensed products • Focus Brands, Auntie Anne's International, Cinnabon Domestic & International, Starbucks)

– Convenience Store Food Programs

and Offers• Racetrac Petroleum Inc.

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Who We Are•

•Headquartered in Cobb County, Georgia since 1976• Third‐generation, family‐owned business

• Serving guests since 1934• Second‐largest privately owned company in Georgia

• More than 7,000 team members •2 Operating Retail Divisions Made up of…

•More than 700 stores in 12 states •RaceTrac Numbers:

•18,000 guests per store per week•Offers more than 3,000 retail and grocery items to address out guests’ needs, including premium food offerings•4 Million gallons of fuel each day

• Made To Order Offer

• High quality foods – Top pillar

• Made To Order Menu and Process Evaluation

• Consistency among 4 regions

• Limited Time Offers

• Waste Control

• Speed of Service

Nutritional Regulatory laws

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Understanding Equipment and Operation Capabilities

Leveraging Licensed products

SKU rationalization

SKU Cross utilization

Thaw and Serve testing

Insights into Offers……the WHY?

Jean-Manuel LEVEQUE

CEO DELIFRANCE French company Owned by VIVESCIA cooperative Top player of the frozen bakery industry Present in 20 countries, exporting to 80

Chairman AIBIEuropean Association of Plant Bakers

Established: 1956 – Offices at Brussels Mission: Advocating the common interests of plant bakeries at the level of the Europeanand international institutions 15 Members: Austria, Belgium, Bulgaria, Denmark, Finland,France, Germany, Italy, Netherlands, Portugal, Russia, Slovenia, Spain, Ukraine, United Kingdom

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Who is behind this bakery in Europe?

An artisanal bakery? A retailer?

A hard discounter ?Foodservice ?

Digital?

4000 Drives in France (both click&drive and click&collect)

N°1 bakery supplier in Europe

Decreasing number of artisan bakers

- 350 bakers / year (FR)

4000 ISBSchwarz is N°4 retail

player worldwideBoom of fast casual

(+15% visits)

Leading to a channel blurring in bakery

Food to go menus & seated lunch

Seated lunch

Presentation shelves

Presentation shelves

Product presentation

Product presentation

Distribution channels are inspiring each other, blurring segmentation

Retailers Artisan Bakers

Foodservice

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The answer from the Bakery industry: freezing…

Source: based on Gira 2015

+7 points since 2009+4 points in 5 years

RETHINKING FOOD

PRODUCT INNOVATION

AMERICAN BAKERS ASSOCIATION

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@dhgisme | @foodtechconnect

We are the site of record & world’s largest food innovation community.Since 2010, we’ve cultivated a community of 30k+ leaders.

E V E N T S J O B B O A R DN E W S & A N A L Y S I S

WHO WE ARE + WHAT WE DO


THE NEW FOOD ECONOMY

Big Food is Struggling: the top 25 US food companies lost $18B in market share since 2011.

Small and mid-sized companies accounted for 46.4% of CPG sales last year.

Food Startups are Growing: $10 Billion was invested into new Food and Food & Ag Tech ventures across the globe in 2015.

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NEW TECH & BUSINESS MODELS ARE DISRUPTING FOOD


CONSUMERS BUSINESS & TECH

PEER-TO-PEER

ON-DEMANDDELIVERY

SOCIAL MEDIA

ECOMMERCE

ACCELERATORS+

INVESTMENT

CROWDFUNDING

TARGETED ADS

BIG DATA

DRIVERS OF INNOVATION

VALUES

TECHADOPTION

CONVENIENCE

MILLENNIALS

HEALTH & WELLNESS

PERSONA-IZATION

TRANSPARENCY

PERSONALIZED

SOCIAL

DISCOVERY

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Companies that are better for PEOPLE, PLANET & PROFIT are transforming the food industry.


KEY INNOVATION AREAS

1. Sales Channels

2. Authenticity

3. Personalization

4. Ingredient Innovation

5. Decentralized Production

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NEW SALES CHANNELS

ONLINE GROCERY MEAL KITS D2C BRANDS


AUTHENTICITY

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INGREDIENT INNOVATION


FOOD WASTE INNOVATION

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PERSONALIZED NUTRITION


DECENTRALIZED PRODUCTION

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Companies that are better for PEOPLE, PLANET & PROFIT are transforming the food industry.

Danielle Gould

[email protected]

morning business session master deck - march 2017...8 food delivery –disrupting how food is bought...

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