12th June 2014
Dear Refreshment R&D Team,
Last week I had the pleasure of visiting our North American business, hosted by Leo Aquino (R&D Director IC/ Refreshment North America), Gregg Lehmberg (R&D Director Beverages North America), and the Refreshment RDC team based in New Jersey.
North America is one of our largest ice cream and tea businesses. It’s a mature ice cream market with one of the highest per capita consumption and very intense competition from both regional and national brands. It is also a large and dynamic tea market where tea is mostly enjoyed iced. Our business is undergoing a huge business transformation. After years of under-investment, we are reinvesting back in the core of the Lipton brand to improve quality. We also entered new high growth segments like capsules and liquid water enhancers. In ice cream, LCBM and the portfolio transformation are well underway to premiumise and step-change the profitability of the business.
One day 1, I visited the marketplace to experience the explosion of the super-premium and luxury tea markets. Brands like David’s Tea, Harney & Son’s and Teavana (owned by Starbucks) are transforming how consumers experience tea and raising the ceiling on what consumer are prepared to pay for a cup of tea both in-home and out-of-home.
One day 2, I presented to the Walmart Ice Cream Buyer during a full-day integrated Knowledge-based selling event at the CiiC. It reinforced the critical importance of product superiority claims and demos when so much of the success of our brands is defined by placement and promotion decisions made by retail customers.
Ari Label, Customer Development Director for Refreshment reflected on the impact of Knowledge-based selling to our business
‘It is a game-changing initiative for our business and has really transformed the way we talk to customers and the focus of the conversation by shifting the conversation away from being just about item at a price’.
I also saw the transformation of Lipton’s core with the new packaging architecture starting to land in the market. I saw how Lipton is trying to ‘go where the growth is’ by launching Lipton K-Cups and Liquid Water Enhancer with products that taste better and are made with real ingredients.
One day 3, we reviewed how LCBM is being accelerated to transform the profitability and quality of our Ice Cream business. Mix tool box is now being rolled out across Canada and US delivering product superiority claims and quality improvement across Breyers and our novelties brands. R&D is also playing a critical role in making sure that the aggressive supply chain network transformation is delivered with rigor.
Last but not least, I experienced the power of Perfect Pleasure in unlocking premiumization for Breyers and accelerating the growth of one of the fastest growing segments of the US market. Breyers Gelato is a great example of combining global proprietary technology and chefmanship to create a superior product that excites all sense and recreates the gelateria experience at home.
A huge thanks to the local team for their passion and energy in sharing some of their key R&D initiatives.
Clive Gristwood
12th June 2014
Dear Refreshment R&D Team,
Last week I had the pleasure of visiting our North American business, hosted by Leo Aquino (R&D Director IC/ Refreshment North America), Gregg Lehmberg (R&D Director Beverages North America), and the Refreshment RDC team based in New Jersey.
North America is one of our largest ice cream and tea businesses. It’s a mature ice cream market with one of the highest per capita consumption and very intense competition from both regional and national brands. It is also a large and dynamic tea market where tea is mostly enjoyed iced. Our business is undergoing a huge business transformation. After years of under-investment, we are reinvesting back in the core of the Lipton brand to improve quality. We also entered new high growth segments like capsules and liquid water enhancers. In ice cream, LCBM and the portfolio transformation are well underway to premiumise and step-change the profitability of the business.
One day 1, I visited the marketplace to experience the explosion of the super-premium and luxury tea markets. Brands like David’s Tea, Harney & Son’s and Teavana (owned by Starbucks) are transforming how consumers experience tea and raising the ceiling on what consumer are prepared to pay for a cup of tea both in-home and out-of-home.
One day 2, I presented to the Walmart Ice Cream Buyer during a full-day integrated Knowledge-based selling event at the CiiC. It reinforced the critical importance of product superiority claims and demos when so much of the success of our brands is defined by placement and promotion decisions made by retail customers.
Ari Label, Customer Development Director for Refreshment reflected on the impact of Knowledge-based selling to our business
‘It is a game-changing initiative for our business and has really transformed the way we talk to customers and the focus of the conversation by shifting the conversation away from being just about item at a price’.
I also saw the transformation of Lipton’s core with the new packaging architecture starting to land in the market. I saw how Lipton is trying to ‘go where the growth is’ by launching Lipton K-Cups and Liquid Water Enhancer with products that taste better and are made with real ingredients.
One day 3, we reviewed how LCBM is being accelerated to transform the profitability and quality of our Ice Cream business. Mix tool box is now being rolled out across Canada and US delivering product superiority claims and quality improvement across Breyers and our novelties brands. R&D is also playing a critical role in making sure that the aggressive supply chain network transformation is delivered with rigor.
Last but not least, I experienced the power of Perfect Pleasure in unlocking premiumization for Breyers and accelerating the growth of one of the fastest growing segments of the US market. Breyers Gelato is a great example of combining global proprietary technology and chefmanship to create a superior product that excites all sense and recreates the gelateria experience at home.
A huge thanks to the local team for their passion and energy in sharing some of their key R&D initiatives.
Clive Gristwood
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