C280, Computer Vision Prof. Trevor Darrell [email protected].
October 2005 seminar presentation: Trevor...
Transcript of October 2005 seminar presentation: Trevor...
AMERICAS CONFECTIONERY
Generating SustainableProfitable Growth
Trevor Bond
EVP Finance, Americas Confectionery
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Agenda for the Day
• Overview
• Driving our Growth Agenda
• Growth Bazaars
• USA: Awakening a Sleeping Giant
• Canada: Building a Total Confectionery Powerhouse
• Mexico: Continuing to Deliver World Class Performance
• Brazil: Transforming the Business Model
• Q&As
Objective of Today’s Presentations
• To demonstrate that Americas Confectionery is building a
sustainable growth machine
• Fueled by outstanding cost management
• Via a platform of it’s people, brands and insights
My Agenda
• Overview of the region
• Delivering what we said we would
• Creating the platform for continued superior performance
We Have Strong Geographical Participation Across the Americas
22%
37%
14%
4%
23%
CanadaPopulation 32mConfy Market Position #1
KEY% of CSAC NSV
USPopulation 293mConfy Market Position #4
MeccaPopulation 182mConfy Market Position #1
BrandinaPopulation 300mConfy Market Position
Brazil #1Colombia #1Venezuela #2
Southern ConePopulation48mConfy Market Position#2
Population Source: 2004 Census dataConfectionary Market Position: Euromonitor
With Strong Market Positions in Many Categories
US#2 in Gum #1 in Cough/Cold #5 in Sugar
Mexico#1 in Gum #1 in Sugar
Brazil#1 in Gum #1 in Sugar
Colombia#1 in Gum#2 in Sugar
Venezuela#1 in Gum #1 in Sugar
Argentina#1 in Gum #2 in Sugar
Canada#1 in Gum & Sugar#1 in Cough #3 in Chocolate
Figures are sourced from IRI/Nielsen/Cortinas/Euromonitor - latest 52 weeks
Supported by Strong Power Brands That Operate Across the Region
October 2003: Key Priorities
1. Deliver the integration – create the new business
2. Generate the Fuel for Growth
3. Create sustainable, profitable, top line growth via Smart Variety
Integration is Now Behind us
• Unified invigorated sales force in each market
• North American warehousing and distribution delivering excellent
customer service
• Shared services established in all markets
• Two primary SAP platforms cover 80% of the Region
Major Elements of FFG Successfully Executed
• Head Office rationalization
• SBS implementation
• IT consolidation & rationalization
Back Office
• 3 factory closures
• US distribution costs reducing post transition
• Procurement benefits ahead of expectations
Supply Chain
• Commercial structures integrated
• Good early progress on value optimization & SKU
rationalization
• Organizational focus on costs as well as growth
Commercial
The Results: Profitable, Double-Digit Growth
2004 Performance versus Plan Versus Year Ago, Like for Like
• Sales up 10%
• Profits up 24%
• Marketing up 25%, or 150 basis
points as a % of sales
• Margins up 140 bps
Sales Profit
Index
We are ‘Beating the Model’
140 150
Our Vision has Stood the Test of Time
BUILD POWER BRANDS
DRIVE TOTAL AVAILABILITYGROW OUR PEOPLE
INNOVATE TO WIN
Working together to create brands people love
Working together to create the Americas’ fastest growing
total confectionery powerhouse.Our Vision:
Grow shareholder value by driving our sales growth to double
digits – “A Pack in Every Pocket Every Day”Our Goal:
Our Culture: A passion for winning – beat the competition. Get the facts.
Move with speed and courage. Be accountable. Be adaptable.
Be aggressive.
GENERATE THE FUEL FOR GROWTHOur Focus:
Sustaining Fuel for Growth
• Leverage the regional supply infrastructure:
Sourcing
Manufacturing Network
Ewen(41)
EmeraldRockford*(35)
Cali
Bertrand
Puebla
Buenos Aires
Rockford
Gladstone
Cali
Bauru
Emerald
Ewen Granby
Our current manufacturing network
comprises 10 factories producing over
330,000 tons
2005 ProductionVolume(k tons)
122
Customers
Canada Canada, US
United States 38 US, Canada
MeCCA, US, CanadaMeCCA 64
Brandina 81 Brandina, EMEA
Southern Cone 25 S. Cone, Brandina
Total Region 330
Sustaining Fuel for Growth
• Leverage the regional supply infrastructure:
− Mexico supply of Splash to NA
− South American gum base supply
Sourcing
Sustaining Fuel for Growth
• Leverage the regional supply infrastructure:
− Mexico supply of Splash to NA
− South American gum base supply
Sourcing
• SKU rationalization enabling automationSimplify toreduce costs
SKU/Piece Size Rationalisation: Swedish Fish
beforeafterafter
• Reduced Piece Sizes from 14 to 4 (71%), SKUs by 50%
• Simplification enabled automation, increasing gross margin by
600 basis points
• No impact on brand growth (H1 05 growth 29%)
Sustaining Fuel for Growth
• Leverage the regional supply infrastructure:
− Mexico supply of Splash to NA
− South American gum base supply
Sourcing
• SKU rationalization enabling automation
• Value optimizationSimplify toreduce costs
Value Optimization: A Way of Life in Canada
From • Multiple projects underway which
will deliver $3m+ in 2005
• Dentyne Ice project alone saved
$1m across North America
• Further projects already
underway, expanding into
distribution & merchandising
spend
To
Sustaining Fuel for Growth
• Leverage the regional supply infrastructure:
− Mexico supply of Splash to NA
− South American gum base supply
Sourcing
• SKU rationalization enabling automation
• Value optimization
• Non production spend
Simplify toreduce costs
Sustaining Fuel for Growth
• Leverage the regional supply infrastructure:
− Mexico supply of Splash to NA
− South American gum base supply
Sourcing
• SKU rationalization enabling automation
• Value optimization
• Non production spend
Simplify toreduce costs
• US distribution network
• Continuous improvement programmes
• Procurement practices into Latin America
Furtheroptimisation
Creating Profitable Growth… by Building Power Brands Across the Region
3%
11%
0%
2%
4%
6%
8%
10%
12%
14%
2000-2 2002-5
Power brand growth is nearly 4x that of pre-acquisition given
double-digit increases in marketing spend
Average Annual Growth 15%
Marketing Spend Powerbrand Sales CAGR
*Proforma, at constant currency
… Underpinned by Great Innovation
• 2.4% share in Canada
• #1 Trident SKU
• Brought novelty to the brand and
category
• Represents 6% of Halls sales in
Brazil, highly incremental and
margin enhancing
…Executed by Advantaged RTM
• Expansion in key growth channels
• Distribution gains of legacy Cadbury products
• Sales force now biggest in Canada
• Conducted largest ever shopper research
• Investment behind RTM in Mexico
• Sales force expansion to drive growth
• See the growth Bazaar
Route to market is an investment
Enabled by Growing our People
• Commercial capabilities programme
• Develop and refresh the talent pool
• Corporate social responsibility plans across the Region
• Striving to become “ The Place To Be”
Each BU is Playing its Role• Continue growth in gum via differentiated, relevant
innovations
• Expand and grow Halls
• Profitably grow chocolate share
• Use Total Confectionery position to leverage next
chapter of growth
• Drive gum growth via innovation, RTM and
commercial investment
• Continue the expansion into differentiated sugar
• Continue focus on core brands
• Expand profitably into other consumer types and
categories
Summary
• We have delivered what we
promised
− In the market place
− To our colleagues
− To our shareowners
• We are well placed to build
a track record of profitable
growth through our
− Power Brands
− RTM scale & insight
− Ongoing cost agenda