1. Findus Italy
Findus Italy e
il business dei Frozen
Foods
Master MUM – Università La Sapienza
9 maggio 2011
Fabrizio Cannizzaro – Operations & IT Director
6/27/2011Prepared by Sarah Leslie, IT Support Centre
1 Espresso Steering Group - November 18 2010Launch slides
071010.ppt
2. Agenda
• Who am I?
• Cenni storici su Findus
• Birds Eye Iglo Group
• Il mercato dei surgelati
• Il Modern Trade in Italia
• Findus e le sfide del mercato
• Il processo di S&OP (Sales & Operations Planning)
6/27/2011Prepared by Sarah Leslie, IT Support Centre
2 Espresso Steering Group - November 18 2010Launch slides
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3. Who am I?
6/27/2011Prepared by Sarah Leslie, IT Support Centre
3 Espresso Steering Group - November 18 2010Launch slides
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4. • Fabrizio Cannizzaro, 49 anni, sposato, 1 figlia stupenda (e
anche la moglie ma meno)
• Laurea in Economia alla Sapienza, Dottore commercialista e
revisore contabile
• 22 anni di Unilever in Finance, Customer Service, Logistic e
Sales in varie company e locations
• dal febbraio 2010 in Findus (in Permira dal 1 ottobre)
• Findus Operations & IT Director
• Amante del mare e del sole, scrittore dilettante e lettore
professionista, ex-tennista (medio-basso) prima dell’anca bionica
6/27/2011Prepared by Sarah Leslie, IT Support Centre
4 Espresso Steering Group - November 18 2010Launch slides
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5. Operations & IT Dept: Organisation chart
Operations
& IT Chairman
Director
Report to Mignini
Cannizzaro
Customer Demand Logistic &
Information
Service Mgr Planning Cabinets
Tecnology
Mgr Mgr
Mgr
Sales
CS Team 1 CS Team 2 CSTeam 3 Systems Order Tak& Asssitant Assistant
5 People 4 People 5 People
Copacker Mgr Logistic 2 People
Mgr CS Support Mgr
1 People
Assistant
Assistant Order Taking Assistant
Cabinets
2 People 3 People 1 People
1 People
CS Support
3 People
6/27/2011Prepared by Sarah Leslie, IT Support Centre
5 Espresso Steering Group - November 18 2010Launch slides
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6. Operations & IT Dept - Main Activities
Logistic&Cabinets Demand Planning Information Technology
-Logistic LTA mngt (operational - S&Op process mngt (Sales - Unilever Contract
interface with Unilever Logistic) forecast by sku’s, Forecast bias management (SLA control)
- Direct Findus contracts with analysis) - Satellite systems (incident
3PLP (primary network) - Stock optimisation (monitoring, mngt and troubleshooting)
- Network mngt (audits and shelf life analysis) - IT Budget control
stocks reconciliation) - Interface with Factory and
- Interface with UL, Accenture
- External Benchmarking Copackers (production plans and
and External suppliers
-Cabinets (capex, UL goods deployment)
agreement, maintenance and - Interface with Logistic and - IT Development (Project
scrapping, Interface between Procurement (copacker products) management)
Findus&UL Sales Force/LSS) - Critical sku and obsolete mngt - IT integration (Beig IT central
- Reporting,KPI analysis and - Product Master data system)
issues management - Help desk and users support
Order Taking Sales systems
Customer Service teams
- Order taking (concessionaires and - Project mngt
- Cash collection & credit mgt centralised customers) - Scouting on new
(Overdue,Ageing analysis, - System update & Reporting opportunities
Dunning process,Bad debts - Logistic Issue management - Master data management
- Trade Contract mngt (Fiscal & -Sap SD & Idoc
Legal interface, Contracts flow -Sap BW (Sales Reporting per
and archiving, Rebates CS Support
customer, channel, salesrep)
monitoring, Promo invoice - Satellite systems (SFA,
bookeeping and control) - Pricing
TPR, EDI & JiT)
- Concessionaires & Agents - Invoicing (Cumulative, Triangular,
- Help Desk to SF
mngt (agreement,trade terms, Concessionaires, Reivocing)
- IT Training to sales force
incentive plan) - Goods returns and CN issuing
-Claims mngt -Cash application
6/27/2011Prepared by Sarah Leslie, IT Support Centre
6 Espresso Steering Group - November 18 2010Launch slides
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7. Cenni storici
Findus Italy … da Fruit INDUStry
a Marabou
a Nestlè
a Unilever
a BEIG/Permira
a…
6/27/2011Prepared by Sarah Leslie, IT Support Centre
7 Espresso Steering Group - November 18 2010Launch slides
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8. Le origini (1)
• il marchio Findus nasce in Svezia in una piccola
fabbrica della Fruit INDUStry (da cui deriva il nome)
• nel 1941 il marchio, insieme alla fabbrica è ceduto a
Marabou, un’azienda alimentare svedese, che nel 1945
lancia la prima gamma di prodotti surgelati a marchio
FINDUS
• nel 1962 Marabou vende il brand Findus alla Nestlè
che lo esporta in tutta Europa e che nel 1964 apre lo
stabilimento Italiano a Cisterna di Latina
• nel 1969 in Italia la Unilever, leader di mercato nei
gelati con Algida/Eldorado/Soave, entra nel mercato
surgelati con il brand IGLO che inizia velocemente a
8 erodere alla Findus (Nestlè) importanti quote di mercato
6/27/2011Prepared by Sarah Leslie, IT Support Centre
Espresso Steering Group - November 18 2010Launch slides
071010.ppt
9. Le origini (2)
• la Nestlè perde margini e profitti, il business Findus in
Italia non e’ sostenibile e quindi contatta Unilever per fare
business insieme
• nel 1970 si crea una Joint venture che produce e
commercializza gelati e surgelati (Findus+Iglo) di cui
Unilever detiene il 75% e Nestlè il 25%
• tale co-gestione finisce dopo poco tempo a seguito di
divergenze strategiche e Unilever ne diviene proprietaria
insieme al marchio Findus per la sola Italia mentre all’estero
rimane di proprietà Nestlè (ora è di Lyon Capital)
• all’estero Unilever opera nel mercato Frozen Foods con i
marchi IGLO e BIRDS EYE ai quali si aggiunge Findus per
l’Italia
6/27/2011Prepared by Sarah Leslie, IT Support Centre
9 Espresso Steering Group - November 18 2010Launch slides
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10. I giorni nostri
• nel 2006 Unilever vende il business dei surgelati al fondo
di Private Equity Permira Capital con l’eccezione di Findus
Italia (il fiore all’occhiello!)
• nel 2006 Permira fonda Birds Eye Iglo Group Limited,
leader di mercato nei surgelati in Europa
• nel 2010 Unilever Italia crea la newco Compagnia Surgelati
Italiana tramite spin-off del ramo surgelati a marchio Findus
•il 1 ottobre 2010 Permira perfeziona l’acquisto di C.S.I.
ricongiungendo di fatto in BEIG Group il business surgelati
Unilever del 2005
• ora cosa succedera?
6/27/2011Prepared by Sarah Leslie, IT Support Centre
10 Espresso Steering Group - November 18 2010Launch slides
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11. BIRDS EYE IGLO GROUP
6/27/2011Prepared by Sarah Leslie, IT Support Centre
11 Espresso Steering Group - November 18 2010Launch slides
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12. Competitive landscape
• BEIG Group produce un RSP, inclusa Findus Italy, pari a
circa 2,7 Miliardi di Euro (Italy 0,7m)
• è leader assoluto di mercato in Europa con una quota del
12% circa,
• ha quasi 3 volte la relative share del primo competitor
(Findus Group di Lyon Capital con il 4% circa)
• ha una grande solidità finanziaria facendo parte di
Permira Capital, un grande fondo di private equity (in Italia
possiede anche Marazzi, Valentino, Sisal e …)
6/27/2011Prepared by Sarah Leslie, IT Support Centre
12 Espresso Steering Group - November 18 2010Launch slides
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13. Birds Eye Iglo + Findus
• #1 in Europe overall
• Present in 15
countries
UK #1
31% of sales
• 4 production facilities: 20% share
Germany #1
17% of sales
- Bremerhaven 85kt 8% share
- Reken 85kt 2
- Lowestoft 110kt 1
2
Austria #1
- Cisterna 100kt 1 1
7% of sales
55% share
1
• Strong core 5
categories: 1
1
Fish 26% share 1
Veg 30% share Italy #1
29% of sales
Poultry 26% share 35% share 6/27/2011Prepared by Sarah Leslie, IT Support Centre
13 Espresso Steering Group - November 18 2010Launch slides
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14. BEIG Brand ideal (Core Purpose)
We believe that the world would be
a better place if everyone saw our
frozen food as the smart choice
because they realised how amazing it
can really be.
“Convenience without Compromise”
6/27/2011Prepared by Sarah Leslie, IT Support Centre
14 Espresso Steering Group - November 18 2010Launch slides
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15. BEIG Organisation
Category Market Unit Operations
Fish
Managing Director Factory Ops
Vegetabl
e
Chicken
Procurement
Meals Marketing Sales Finance Supply Chain HR
Distribution
•P&L Accountable
•Owns the customer Technical
•Best in class trade spend and customer
•Marketing management IT
•R&D •Owns the local consumer
(HR)
•Category Productivity •Integrates category NPD/EPD into MU plan
•Productivity delivered by TPV (Market & •Market leading
product specific) productivity
•Owns the local employee engagement
6/27/2011Prepared by Sarah Leslie, IT Support Centre
15 Espresso Steering Group - November 18 2010Launch slides
CONFIDENTIAL Page 15 071010.ppt
16. Il mercato dei surgelati
6/27/2011Prepared by Sarah Leslie, IT Support Centre
16 Espresso Steering Group - November 18 2010Launch slides
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17. Il mercato Frozen Foods in Italia è grande ... e molto profittevole
B€
100
46.8 95
Ambient
Chilled
Perishable
Frozen Food 26.2
Beverage
40
1,7
1,7
20 1,7
1,7
1,9
2,0
2,1
2,5
2,9
3,7
0
Bakery Cheese Frozen Veg jams Dessert Fixed Yogurt Wine Diary Water Other Perishabl Total
Foo weight e
d1 veg
Average
32-34% 20-22% 34-36% 22-24% 36-38% 38-40% 32-34% 24-26% 26-28% 28-30% 28-30% 28-30% ~30%
retailer
Margin2 :
FF has a strong impact both on turnover
and margin contribution for retailers
1. Including 0,2 B€ of door to door business 2. Calculated on a Top 5 retailer data, single channel example
Source: IRI data 6/27/2011Prepared by Sarah Leslie, IT Support Centre
17 Espresso Steering Group - November 18 2010Launch slides
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18. ... ed è composto da 7 categorie principali
First Second Side
Categories Dish Dish Dish Other Examples of products
1 Ready Meals Starter, First dishes,
Soups,
meat recipes, vegetable
mixes, fish recipes
2 Sofficini & Other
Fun (OF) Sofficini
3 Fish
Fish fingers, mixed fried
seafood, fish Fillets,
Seafood, Whole & steaks,
4 Natural
Vegetables
Peas, Natural Minestrone,
Spinaches
5 Potatoes French fries, Natural
potatoes
6 Pizza Margherita, Napoli
7 Other Dough
6/27/2011Prepared by Sarah Leslie, IT Support Centre
18 Espresso Steering Group - November 18 2010Launch slides
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19. Findus ha una chiara market leadership....
Followers Nestlè and Orogel far from Findus MS
Tot Tot.
Value Market
(€) Share
810 585 386 229 139 109 79
11%
6% 2.3bn
Market 17%
13%
21%
share
37% 10%
31% 24%
28% 18% Other Prod.
PLs 23%
27% 66%
7% Aia 1%
4%
14% 21% Mccain 1%
22%
9%
Pizzoli 2%
3% 0% 12% Cameo 3%
28% 75%
Orogel 5%
26%
46%
Nestle 8%
25%
38% 34% Findus 34%
20% 5%
4% 0%0%
5%
7% 3%
3%
Fish Natural Veg Ready Meals Pizza Potatoes Other
Sofficini & OF
Source: IRI, analysis 6/27/2011Prepared by Sarah Leslie, IT Support Centre
19 Espresso Steering Group - November 18 2010Launch slides
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20. ... Nessuno come Findus in Europa (tranne l’Austria)
Market value1 480
5.939 5.045 2.693 2.324 1.337
(M€)
MS (%) 100 Others
20 24 23 26 PL
30 26
80 Iglo
Oetcker Group
16 Mc Cain
34 23
60 35 Wagner
47 1
44 Nestlè
8
40 9 Bo Frost
5 42
3 16 Ad van Geloven
10
2 2
7 Orogel
20 15 8 11
5 34 Cameo
12 7 8 8
5 1 2 Findus Italia
6 5 8 6 6
0 Findus Europe
0 20 40 60 80 100
United Kingdom Germany France Italy Benelux2Austria
Only Iglo in Austria has an higher MS (42% vs. 34% of Findus)
1. All market value data point refer to 2008, except from Itay referring to 2009 2. Includes Holland, Luxembourg and Belgium
Source: Euromonitor 6/27/2011Prepared by Sarah Leslie, IT Support Centre
20 Espresso Steering Group - November 18 2010Launch slides
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21. Lenta ma graduale growth of PLs e niche specialists
Value market share per player, %, 2005-2009
Δ MS
100
25,2% 24,8% 24,7%
'05-'08 '08-'09
25,8% 26,0%
80
Other (1.0%) (0.1%)
21,0% 21,4% 21,6% 22,4% 23,4% PLs +1.5% 0.9%
60
0,8% 1,0% 1,1% 1,2% Mccain +0.4% 0.1%
1,3%
1,1% 1,2% 1,4% 1,4% Mainly in potatoes
1,6%
4,4% 1,5% 4,6% 1,7% 4,7% 2,1% 4,7% 2,5% Pizzoli +0.3% 0.2%
4,7% 2,8%
40 10.6% 9.1% Cameo +1.0% 0.2% Mainly in pizza
9.7% 8.6% 8.0%
Orogel +0.3% 0.0% Mainly in vegetable
Nestle (2.0%) (0.6%)
20
34.8% 34.4% 34.8% 34.2% 33.6% Findus (0.6%) (0.6%)
0
2006 2008 2009
2005 2007
Years
Source: IRI data, analysis 6/27/2011Prepared by Sarah Leslie, IT Support Centre
21 Espresso Steering Group - November 18 2010Launch slides
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22. Il Modern Trade in Italia
6/27/2011Prepared by Sarah Leslie, IT Support Centre
22 Espresso Steering Group - November 18 2010Launch slides
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23. La Grande Distribuzione
1) Proprietà diretta dei punti vendita, centralità di comando, alto
potere decisionale
2) Proprietà dei grandi gruppi finanziari / multinazionali
3) Multicanalità ( Super e Iper )
4) Elevata copertura del territorio con p.v. dalle superfici
medio-grandi
5) Presenza di marche private (DOB)
6/27/2011Prepared by Sarah Leslie, IT Support Centre
23 Espresso Steering Group - November 18 2010Launch slides
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24. La Distribuzione Organizzata ( DO)
1) Proprietà p.v. detenuta dai soci = Alta frammentarietà logistico
decisionale
2) Ricerca di alleanze per raggiungere la dimensione critica
3) Duplicazione dei livelli di negoziazione
4) Multicanalità
5) Copertura del territorio con p.v. dalle superfici medio-piccole
(prossimità)
6/27/2011Prepared by Sarah Leslie, IT Support Centre
24 Espresso Steering Group - November 18 2010Launch slides
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25. MT – Universe and MS by Groups and Banners 2010 H+S
Frozen
Food
Key
Clients
Gruppo Others-
Centrale C.S.A (C4,
Pam/ Lom bardini
Auchan Finiper ESD Bennet Esselunga SICON Stand
Italiana Sun, Agorà)
Panorama (0,4)
(10,4) (7,4) (9,0) (2,3) (10,0) (17,3) Alone
(24,5) (12,2) (3,1)
(3,2)
Coop Selex -
Auchan CRF Finiper Conad C3
Italia Schlecker
(4,0) 8,9 (2,6) (11,9) (1,5)
(17,9) (9,0)
Despar Gruppo
Sma/city Unes Rewe G.R.I.D.O
Servizi Sun
)5( (0,7) (1,9) (0,3)
(3,9) 1,4)
Indipe nde nt i
Sigma Crai Agorà Ce.Di.Gros Interdis
(1,3)
(1,9) (1,1) (1,9) (0,6) (3,5)
Il Gigante Sisa
(0,8) (2,9)
Source: Top Trade 2009 H+S – Potential Frozen
Coralis
(0,6)
27. Retail Groups in Italy : a multichannel approach
of which
Quota LCC HYPER SUPER SUPERETTE DISCOUNT
SUPERSTORE
COOP ITALIA 26,1 13,7 15,5 6,5 10,5
CONAD 5,3 11,7 2,1 16,0 2,5
CARREFOUR ITALIA 16,2 7,8 1,8 11,4
GRUPPO AUCHAN 16,2 7,0 8,0 9,9
ESSELUNGA 0,0 11,9 47,9 0,0
SELEX 4,6 9,2 4,0 6,4 13,0
INTERDIS 0,1 5,6 1,4 9,7 8,0
DESPAR SERVIZI 1,1 4,9 4,3 4,8 1,8
SISA 0,0 4,8 1,3 5,7
FINIPER 10,3 1,1 0,0 0,5 0,6
GRUPPO PAM 4,3 3,2 1,1 2,6 7,0
BENNET 9,0 0,3 1,0 0,0
GRUPPO REWE 0,4 2,9 3,9 0,6 7,7
GRUPPO LOMBARDINI 0,9 0,6 0,0 1,2 8,5
EUROSPIN 0,0 17,8
LIDL 0,0 14,4
TOTALE 100 100 100 100 100
LEADER
27
FOLLOWER 6/27/2011Prepared by Sarah Leslie, IT Support Centre
Espresso Steering Group - November 18 2010Launch slides
COMPETITORS 80% 071010.ppt
28. Tipologia dei Punti di Vendita
- Grandi Ipermercati (oltre 5000 mq)
- Ipermercati (da 3000 a 5000 mq)
- Superstore (da 1500 a 3000 mq)
- Supermercati (da 400 a 1500 mq)
- Superettes (da 200 a 400 mq)
- Libero servizio (da 100 a 200 mq)
- Negozi Tradizionali (fino a 100 mq)
- Discount
6/27/2011Prepared by Sarah Leslie, IT Support Centre
28 Espresso Steering Group - November 18 2010Launch slides
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29. In-Home market in Italy is composed of three different distributors
categories
Retail
Modern Trade Normal Trade Specialists
Chains/ stores associated to Local stores not associated to Typical street merchants not
big buying groups any buying group associated to any buying group
• Often distributed on the • Classified into two different
whole national territory clusters
Food stores
Four distribution formats • Small stores, with direct Corner markets
• Hyper, ~397 stores assistance of personnel/ • Italian market located in
• Super, ~8 855 stores owners dedicated in town area, with
• Superette, ~6 849 stores • Mainly dealing food direct assistance of owners
• Discounter, ~3 690 stores (minimum 5 different • Mainly dealing food
products)
5 Top players • ~19 000 stores Hawkers
• International: Carrefour, • Mobile format mainly located
Auchan Mixed stores (food + non food) in crowded areas
• Italian: Coop, Conad, • Direct assistance of • Both dealing food and non
Esselunga personnel/ owners food products
• Minimum 3 grocery segments
(at least 5 food categories...)
• ~30 000 stores
Source: IRI data 6/27/2011Prepared by Sarah Leslie, IT Support Centre
29 Espresso Steering Group - November 18 2010Launch slides
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30. Top 5 retailers are growing...
Value market share on modern trade, food and non-food market, %, 01 - 08
Italians
MS ∆ p.p.
'01 – '08
14,9%
% 15% 14,3% 14,4% 14,7% Coop 2.8
13,7%
13,1%
12,1% 12,5%
10% 9,2% 9,4% 9,5% 9,1% Conad 0.4
8,4% 1.4
7.5%
8.0% 8,9% CRF
7.1% Auchan 0.3
6,2% 6,5% Group
5,3% Esselunga 2.6
4,5% 4,6% 4,8% 5,1%
5%
0%
7.6
2001 2002 2003 2004 2005 2006 2007 2008
Top five retailers account for ~50% of total market
Source: AC Nielsen 6/27/2011Prepared by Sarah Leslie, IT Support Centre
30 Espresso Steering Group - November 18 2010Launch slides
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31. ... and the biggest 6 buying groups represent ~87%
of Modern Trade sales
Market share on gross Modern trade sales
(%) 2008 data
25%
22.7%
1.2%
2.0%
20% 18.4%
1.2%
4.6% 16.3%
1.4%
15% 2.0% 2.5% 14.6%
2.0% 1.7%
4.7%
2.9%
10% 3.6%
7.9%
7.1%
14.9%
5% 9.1% 8.9%
8.2%
Coop Auchan Conad Carrefou Selex Esselunga
0% r
Centrale Intermedia Sicon3 GD plus4 ESD Esselunga
Italiana 1 902
1. Despar, Il Gigante, Sigma 2. Pam, Bennet, Crai, Lombardini, Sun, Metro 3. Interdis, Rewe 4. Finiper, Agorà, CeDiGros, Alfi, Disco Verde, CDS, Cedi Market
Source: AC Nielsen (Top for Top and GNLC) 6/27/2011Prepared by Sarah Leslie, IT Support Centre
31 Espresso Steering Group - November 18 2010Launch slides
197700-73 project Boreas 26 oct 09 – Lbi-ec-Mil 31
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32. Italian Modern Trade – Concentration level vs
other european country
2008 data
GERMANY HOLLAND UK
Edeka Group 28,3 Superunie 30,6 Tesco 31,4
Rewe Group 21,3 Albert Heijn 29,4 Asda 16,7
Markant 18,9 C1000 14,2 Sainsbury 16,2 ITALY
Tengelmann 8,4 Super De Boer 7,3 Morrison 11,1
Metro 8,2 Somerfield 4,1 Coop Italia 14,9
Conad 9,1
TOP 5 85,1 TOP 5 81,5 TOP 5 79,5 Carrefour Group 8,9
Gr. Auchan 8,2
Selex 7,9
TOP 5 49,0
FRANCE GREECE SPAIN
Carrefour Group 21,6 Carrefour Group 23,3 Carrefour 22,0
Leclerc 15,9 Vassilopoulos 12,2 Mercadona 21,4
Intermarchè 11,8 Skalvenitis 10,4 Eroski Group 11,7
Auchan 8,9 Spar Veropoulos 6,3 ECI Group 8,2
Systeme U 8,5 Massoutis 5,7 Auchan Group 7,5
TOP 5 66,7 TOP 5 57,9 TOP 5 70,8
6/27/2011Prepared by Sarah Leslie, IT Support Centre
32 Espresso Steering Group - November 18 2010Launch slides
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33. Italian Trade by Store Format
# pos
45885
4193
8950
425
12059
6/27/2011Prepared by Sarah Leslie, IT Support Centre
33 Espresso Steering Group - November 18 2010Launch slides
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34. In retail, FF is sold mainly through Supermarkets (52%)
Distribution FF Food
channels FF (M€) (%) (%) Rationale
• Target of small families
Super1 1 208 52.1 49.1 • Limited offer of fresh /
superfresh products
• Easy for transportation
Superette 370 16.0 14.6 (close to home)
• Target of small families
• Wide offer of fresh /
Hyper 334 14.4 16.4 superfresh products
• Far from home
• Good variety of FF
Discounter 225 9.7 10.1 private label products
• Long-term food
purchases
Normal Trade 182 7.8 9.8
• Limited offer of FF
products
• Short-term food
2 319 100 100
purchases
1. Including both super <2 500 sm and >2 500 sm
Source: IRI data 6/27/2011Prepared by Sarah Leslie, IT Support Centre
34 Espresso Steering Group - November 18 2010Launch slides
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35. Findus has clear leadership in all channels but Discounters
FF market share by channel, %, 2009
Tot. Market
Total Share
FF 1 222 370 335 227 182 2.3bn
Market 100
share 13% 16% Other 24%
22% 25%
(%) Private Label 23%
80 12% Aia 1%
26% 53% Mccain 1%
1%
22% 4% Pizzoli 2%
25%
60 13% Cameo 3%
2%
5% Orogel 5%
3%
5% 9% 3% Nestle 8%
40 8% 5% Findus
Findus 34%
8%
avg: 34% 34%
52%
20 42%
34%
30%
1%
7%
0
2%
0 20 40 60 80 100
Super Superette Hyper Normal trade
Discounter
Findus strong leader both in Modern Trade fastest
growing channel (i.e. Super) and Normal Trade
Source: IRI data 2009 6/27/2011Prepared by Sarah Leslie, IT Support Centre
35 Espresso Steering Group - November 18 2010Launch slides
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36. Findus e le sfide del mercato
• la complessità
• il mondo esterno
• il consumatore
• il cliente ed i suoi marchi
• il circolo vizioso dei prezzi
• il punto di vendita
6/27/2011Prepared by Sarah Leslie, IT Support Centre
36 Espresso Steering Group - November 18 2010Launch slides
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37. Le sfide : La complessità
FINDUS- Routes to Market
Primary transportation PoSs
Secondary transportation
C Primary Delivery
I Depots
S #180
9.700
T Centralized
E 70%
R cold store
N
A
P.
Secondary 27% 34.000
D. Depots
C (SDC) DIRECT
O
P C.
A #11 3.900
C
K
3% Concessionaires
E cold stores
R
S
tot.
37 47.600
6/27/2011Prepared by Sarah Leslie, IT Support Centre
Espresso Steering Group - November 18 2010Launch slides
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38. Le sfide: adattarsi al mondo esterno
Continuo riallineamento delle strutture interne per
fronteggiare i cambiamenti esterni
ESTERNO
AVVIO BRAND CHANNEL CENTRALIZZAZIONI PARTNERSHIP NUOVO MODELLO GLOBAL
SUPER
COMPETITION COMPETITION > 50% LOGISTICA NEGOZIALE
CENTRALIZZAZIONI CENTRALI CUSTOMERS
sul PDV
MASTER CATEGORY BUSINESS UFFICIO MASTER CUSTOMER
VERTICALIZZAZIONE International
PLAN 1 ACCOUNT MANAGER ACCOUNT ORDINI PLAN 2 TEAM
Team
INTERNO
6/27/2011Prepared by Sarah Leslie, IT Support Centre
38 Espresso Steering Group - November 18 2010Launch slides
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39. Le sfide : il Consumatore
Aumenta la sua mobilità
8,6 8,2 7,9
Variazioni % Trimestrali
6,8 7,3
6,4
vs anni precedenti
2,5
-0,7
-1,3
-2,2 -3
-4
-4,9
Numero scontrini -6,3
Valore medio scontrini
ott-dic 07 nov 07-gen 08 dic 07 - feb 08 gen - mar 08 feb - apr 08 mar - mag 08 apr - giu 08
• Visita più punti vendita
• Più frequentemente
• Spende meno per atto di acquisto
6/27/2011Prepared by Sarah Leslie, IT Support Centre
39 Espresso Steering Group - November 18 2010Launch slides
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40. Le sfide : il Consumatore
Il consumatore è sempre più rivolto alla ricerca della convenienza:
% MOLTO + ABBASTANZA
D’ACCORDO
% molto
Quando devo fare un
acquisto, guardo, confronto
e chiedo molto più di prima 50 83
Ultimamente sto molto più attenta
Cambio facilmente un punto quando vado a fare la spesa perché
vendita se è conveniente 51 78 cerco prodotti in promozione/
offerta speciale/ sottocosto
Cambio facilmente una
48,9
marca se è conveniente 49 78 50
45 40,9
40
35
30
25
20
15
7,1
10
1,0 2,1
5
0
Per niente Scarsamente in Mediamente Piuttosto Perfettamente
d'accordo accordo d'accordo d'accordo d'accordo
6/27/2011Prepared by Sarah Leslie, IT Support Centre
40 Espresso Steering Group - November 18 2010Launch slides
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41. Le sfide: Il Cliente e I suoi marchi
Le Marche del Distributore
Private Label – Quota Valore (I+S+LSP) +150 bps in 4 anni
11,9 12,1 12,3 12,7 13,4 +70 bps ultimo anno
2004 2005 2006 2007 2008
Stanno aumentando di quota ma ad un rate inferiore
A quanto accade nel resto d’Europa
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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42. PLs presence is still low compared to other countries...
MS ∆ p.p.
% '03 – '08
50% 48.2%
UK 10.2%
41.1%
40% 38.0% 38.0% 37.8% 37.9%
33.4%
30.3% Spain 8.4%
28.7% 30.4%
27.4% 28.7%
30% 25.0%
26.2% 26.8% 27.3% Germany 6.7%
25.5%
23.7% 28.0%
France 4.2%
26.3% 27.2%
24.8% 25.3%
23.8%
20%
13.4% 14.1%
12.2% 12.4% 12.7% 3.1%
11.0% Italy
10%
0%
2003 2004 2005 2006 2007 2008
...And has a lower growth rate
Source: AC Nielsen 6/27/2011Prepared by Sarah Leslie, IT Support Centre
42 Espresso Steering Group - November 18 2010Launch slides
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43. Coop Italia - Focus on Private Label
Strong communication support:
folders, in store radio, TV, print
6/27/2011Prepared by Sarah Leslie, IT Support Centre
43 Espresso Steering Group - November 18 2010Launch slides
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44. Coop Italia - Focus on Private Label
Forte teatralizzazione nel PDV
in Super and Hyper markets;
Confronti diretti tra i prezzi di
branded and PL products
6/27/2011Prepared by Sarah Leslie, IT Support Centre
44 Espresso Steering Group - November 18 2010Launch slides
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45. Coop Italia - Focus on Private Label
Attacco diretto a market leaders
6/27/2011Prepared by Sarah Leslie, IT Support Centre
45 Espresso Steering Group - November 18 2010Launch slides
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46. Coop “price increase war”
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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47. Esselunga reaction: via PL…
6/27/2011Prepared by Sarah Leslie, IT Support Centre
47 Espresso Steering Group - November 18 2010Launch slides
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49. … and brands
• Reazione veloce alla situazione di mercato
• Volantini di “convenience” principalmente
con categorie traffic builder
• Forti promo su branded products
• Competizione diretta on PL price with
Coop Italia
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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50. Le sfide: il circolo vizioso dei prezzi
L’industria scarica l’aumento dei
costi sui listini per mantenere il
livello di profittabilità
L’industria aumenta i prezzi
di listino per mantenere il Il Trade non riesce a trasferire tali
livello di supporto sui propri aumenti sul prezzo al consumo
prodotti da parte del trade
Il Trade fa pressione
sull’industria per extra
risorse per compensare la
perdita di margine Trade Margins
Reduction
50
51. Come si può contrastare il circolo vizioso dei prezzi
Per restare competitivi vs competitori diretti e marche
private dobbiamo:
Minimizzare gli aumenti di listino/intervenire
sull’equazione di valore
• riduzione dei costi
• miglioramento della qualità
• innovazione
Arbitraggi di risorse
• clienti/canale – dare priorità a quelli con maggiore ROI
• brand – privilegiare gli investimenti sui prodotti con maggiore
elasticità al prezzo
6/27/2011Prepared by Sarah Leslie, IT Support Centre
51 Espresso Steering Group - November 18 2010Launch slides
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52. Le sfide: vincere sul PdV
Per vincere in uno scenario difficile e competitivo
come quello attuale bisogna conquistare il
consumatore anche sul punto di vendita:
• con i nostri prodotti sempre disponibili sul pdv (no
OoS)
• con il giusto assortimento per store format (miglior
assortimento ovunque)
• con la corretta proposizione di valore e convenienza
(affordability)
• con la migliore esposizione a scaffale (visibility)
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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53. Il processo di S&OP
6/27/2011Prepared by Sarah Leslie, IT Support Centre
53 Espresso Steering Group - November 18 2010Launch slides
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54. What is Sales & Operation Planning?
It is NOT a meeting!
It is a structured process to run, develop and
grow the business
Integrated marketing, sales and supply
planning, with clear understanding of their
financial impact
Continuous management of change, issues &
assumptions for the business
Ensure that the right people make the right
decisions at the right time
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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55. S&OP summary
MEETINGS ACTIONS OUPUTS
week 1 week 2 week 3 week 4
Marketing Review Cash Up - Create P&L
Demand Review Meeting
Meeting Forecast
Supply Reconciliation
Create Volume Forecast Board Review Meeting
Meeting
Agreed P&L
Summary of Agreed Volume Forecast
Assumptions Forecast
Decisions to drive
the Business
Note: Updated Financial forecast in value provided to
Support Centre as part of monthly results, Friday of wk 1.
Timings suggested to hit this deadline
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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56. Marketing Review Meeting
Objective To provide the detailed planning assumptions for the next 18 months by Product Group
Organisation Leader: Marketing Director
/ Attendance Attendance: Brand Manager, Market Intelligence, Demand Planner, Category, Finance, Sales Dir,
Ops Dir
Input Marketing: Market NPD timings, NPD assumptions, Media planning,
Category: promo performance, NPD performance, market pricing, Distribution Changes,
promotional strategy
Demand Planner: Forecast Accuracy/Bias,
Market Intelligence: Data KPI sheet containing category volume performance, Findus share
performance, Market projections Market consumption data,
Agenda ALL to Attend
Market Performance: market intelligence to update on Market perf, share & key KPI’s using the
category dashboards
Forecast Accuracy Performance: Planner to give brief update on last months performance & key
drivers of accuracy/inaccuracy
Separate session by Category
FY assumptions sheet. Marketing to lead, detailing market trend assumptions, activity plan, media
plan, distribution changes
NPD: Marketing to lead Update on future NPD timelines and status within innovation process.
Assumptions for forecast. Performance of current NPD,
Sales Promotional Plan: Category to lead summary of sales promotional calendar
Output •Documented assumptions for major forecast drivers
•Split to Product Group Level
RACI Marketing: Accountable for Assumptions
6/27/2011Prepared by Sarah Leslie, IT Support Centre
56 Insights/Finance/Sales/Demand Planning planning: Consult Espresso Steering Group - November 18 2010Launch slides
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57. Demand Review Meeting
Objective To agree the detailed Volume plan for the next 18 months by Product Group
Organisation Leader: Operations & IT Director
/ Attendance Attendance: Brand Mgr, Mkt Intelligence, Demand Planner, Category, Sales, Finance, Mktg Dir,
Sales Dir
Input Demand Planner: Template containing: Forecast LV (tonnes, cases, comparison to PLV, AP, prior
year), Forecast Accuracy/Bias, Obsoletes/stock exposure
Marketing: Assumptions Template
Agenda Forecast Accuracy Performance: Planner to give brief update on last months performance & key
drivers of accuracy/inaccuracy
Product Group Analysis: Planner to lead review of Volume Forecast. Objective to highlight key
impact of major assumption changes. Highlight areas of major change to Last forecast, Previous
year, Discuss whether risk/opportunity need to be applied. Generate risk/gaps to feed into
Operational Review
NPD: Planner to lead review of NPD volume forecast, Rate of Sale data, target weighted
distribution and pipefill assumptions
Sales Promotional Plan: Category to lead review of sales promotional volumes
Risks & Opps, gaps to target: Summary of key risks & opportunities by category
Output •Volume Forecast by SKU for next 18 months
•Documented changes to LV since prior demand cycle
•Risks and Opportunities summary
RACI Sales & Marketing: Accountable for Forecast
DP: Responsible for Volume Forecast
Insights/Finance/Sales/factory planning: Consult
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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58. Supply Reconciliation Meeting
Objective To agree a supply plan that balances supply and Demand for next 18 months
Organisation / Leader: Operations & IT Director
Attendance Attendance: Factory Supply Planner, Head of Procurement, Factory Finance, Factory Director, Demand
Planner
Input Factory Planning: Capacity Plans, stock projections, plant performance, identified gaps in supply,
alternatives/options to supply, recommendations
Procurement: Raw material gaps in supply, alternatives/options/recommendations
Factory Finance: Projected costs of plans, financial impacts of options to resolve
Factory Director: Plant performance, Projects impacting supply, plant impact of supply plan
Demand Planning: Vol fcst, risks/opps potential to inform decisions
Agenda Demand and Assumptions update - Operations Director:
Review plant performance – Factory Director
Plant Supply Plan for next 18 months, Stock, Cost & Service Implications - Factory Planning:
Raw Materials supply plan, Stock, Cost & Service Implications- Factory Planning:
Obsoletes and SSL review – Demand Planning
Co-Packers – Issues to resolve – Demand planning
Output •Next 18 months supply plan
•Inventory forecast
•Supply/demand issues to resolve
•Feedback future constraints
•Obsoletes issues for resolution
RACI Operations Director: Accountable for supply Plan
Factory Planner: Responsible for supply plan
Factory Director: accountable for delivery of agreed supply plan
Procurement: Accountable for delivery of raw materials to agreed supply plan
Finance/Demand Planning: Consult/inform
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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59. Board Review Meeting
Objective To agree a the P&L forecast for next 18 months
To decide on issues escalated through the process
To course correct on Gaps, Risks & Opportunities
Organisation Leader: Finance Director
/ Attendance Attendance: Finance Director, Marketing Director, Sales Director, Ops Director, Factory Director,
Findus Procurement Contr, Other Participants as appropriate
Input Finance: P&L by SKU for next 18 months
Marketing: Assumptions Template
Operations: Volume risks & opportunities, Supply issues
Agenda Performance review: Key KPIs
P&L next 18 months: Risks & Opportunities – Issues for resolution
Supply issues to sign off
Output •Next 18 months P&L Forecast by SKU
•Gaps vs business plan, actions to close
•Decisions on Supply resolution
•Decisions to mitigate risks and take opportunities
RACI Sales & Marketing Directors: Accountable for Forecast. (Sales to 3 months, Mktg 3-18 months)
Finance Director: Accountable for Financial forecast call
Operations: Responsible for Demand Plan, Accountable for agreed supply plan
Insights/Finance/Sales: Consult & Inform
6/27/2011Prepared by Sarah Leslie, IT Support Centre
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60. S&OP Summary Critical process phase
3-4 days
4 steps monthly process
Marketing Review Demand Review Supply Chain Review
Board Review Meeting
Meeting Meeting Meeting
Participants
• Marketing (owner) • Demand Planning (owner) • Demand Planning (owner) • Board
• Category • Marketing (per category) • Production (Production
• Demand Planning • Category (per category) planning & Finance)
• Finance • Finance (2/3 people) • Procurement
• Volume estimates • Main outcomes marketing
• Mktg Activities sharing by sku – all sku in portfolio • Economics (cash-up) and
review
Agenda
• New launches volumes
• Demand planning KPI’s • Main demand changes (by
• Consumer Promo discussion product family)
• Advertising • Forecast Bias & • Production plan
Accuracy
• Sell-out trends (past & future) • Overview Stock &
• Issues on stock/ obsolescence
obsolescence
• Total monthly Volumes • Forecast validation • Economics (cash-up) and
volumes validation
Output
• List of Activities • Period :18 months (to be)
• GAP analysis and
• Demad Planning, Category • Volumes input in production SALES/MARKETING/ Agreed action
Next Steps
and MKTG estimate volumes plan PROCUREMENT
by sku (total level) based on • All of departments engage •Review activities based on
- History their own interface production plan
- Planned trade promo - Demand Planning => •Possible over-stock allocation
(salesware) production
- Marketing activities •Obsolescent products pushing
- Procurement => Co-packer
•Volumes Cash-Up
6/27/2011Prepared by Sarah Leslie, IT Support Centre
60 Espresso Steering Group - November 18 2010Launch slides
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