grocery industry, private brands and its evolution joe mckie, vice president, private brands food...
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GROCERY INDUSTRY, PRIVATE BRANDS AND ITS EVOLUTION
Joe McKie, Vice President, Private Brands
Food Marketing Institute
AGENDA
1. Provide a brief description of FMI 2. Share FMI’s private brands efforts3. Give a high-level view of the evolution
of our industry and private brands4. Demonstrate what’s next for private
brands
2
FMI Members Include…FMI Members Include…
THE ASSOCIATION
FMI conducts programs in public affairs, food safety, research, education and industry relations on behalf of its nearly 1,250 food retail and wholesale member companies in the U.S. and around the world.
More than
25,000retail food
stores
More than
25,000retail food
stores
Regional firms
Regional firms
$650billion
combined annual sales
volume
$650billion
combined annual sales
volume
Nearly
22,000pharmacies
Nearly
22,000pharmacies
260companies from
more than
65countries
260companies from
more than
65countries
Multi-store chains
Multi-store chains
IndependentoperationsIndependentoperations
330associate members
that include retail
supplier partners
330associate members
that include retail
supplier partners
3
FMI SERVES AS THE VOICE OF FOOD RETAIL
Food Safety and Defense
Food Safety and Defense
Government
RelationsAdvocacy
Government
RelationsAdvocacy
Educational Conferences
and eLearning Platforms
Educational Conferences
and eLearning Platforms
Information Services and
Business Intelligence
Information Services and
Business Intelligence
Industry Networking
and Collaboration
Industry Networking
and Collaboration
Industry and Consumer Research
Industry and Consumer Research
Health and Wellness
Promotion
Health and Wellness
Promotion
Social, Environmenta
l and Sustainability Advancement
Social, Environmenta
l and Sustainability Advancement
Communications Resources and Support
Communications Resources and Support
Industry Attractiveness
and Awareness
Industry Attractiveness
and Awareness
Private BrandsPrivate Brands
FMIFoundation
FMIFoundation
4
Private Brands
TOTAL STORE COLLABORATION
Asset Protection Fresh Foods Supply Chain Technology
Engagement in the areas of loss prevention, risk management, workplace safety, crisis management, technology, and overall asset protection
Emphasis on perishables and offer center-store assortments that differ from those of traditional retailers—especially in the areas of ethnic, natural and organic
Global forum to exchange ideas and information on future trends, current techniques and best practices to strengthen the performance of the Private Brands industry
Focus on logistics, transportation, distribution, warehousing, supply & demand planning, forecasting, purchasing and technology across the entire supply chain
Approaches to mobility, payments, data security, cloud computing, in-store innovation and social commerce
5
FMI PRIVATE BRANDS GROUP
•Provides leadership and advocacy
•Supports a global forum to exchange ideas – knowledge and education
•Promotes collaboration on non-competitive industry issues
•Acts as a platform, supporting strategic versus transactional collaboration between retailer brand owners, suppliers and trading partners
6
GROCERY INDUSTRY AND ITS EVOLUTION
The Evolution Private BrandsOf Terminology
Generic Private Label
7
GROCERY INDUSTRY AND ITS EVOLUTION
1995-2012
38%growth in sales
38%growth in sales
77%growth in capacity
77%growth in capacity 8
Source: Food Retailing 2013: Tomorrow's Trends Delivered Today
GROCERY INDUSTRY AND ITS EVOLUTION
Source: U.S. Grocery Shopper Trends 20129
GROCERY INDUSTRY AND ITS EVOLUTION
10Source: Booz & Company 2013 Consumer Trends Survey;
Booz & Company analysis; Nielsen analysis
GROCERY INDUSTRY AND ITS EVOLUTION
11
Private Brands can make and are making that connection…
likes and dislikes
likes and dislikes
Tastes
and
distaste
sTastes
and
distaste
s
Wants and
WishesWants and
Wishes
GROWTH AND ACCEPTANCE OF PRIVATE BRANDS
Sources: Nielsen/PLMA , GfK/Roper, Ralcorp, Supermarket News
12
TRENDS AND CRITICAL ISSUES
13
Process is Critical