Transcription
With special thanks to Siemens for sponsoring the research andinterviews required to present this innovation special section.G M ACe n t e n n i a lSp e c i a lIss u e2 0 0 8Forum111
A Survey of AstonishingAccomplishmentTo some naysayers today, “CPGinnovation” is an oxymoron, but in factnothing could be further from the truth.What do you see?Everywhere you look, you –– we –– see CPG products thatmake our lives easier, cleaner, lighter, brighter, safer, betternourished, more satisfying and, in so many ways, sweeter.The breadth, depth and variety of innovation in product,formulation, packaging, manufacturing, marketing, distribution,business process, collaboration and co-invention that hascharacterized CPG for more than a century –– and that isoccurring inside hundreds of companies as you’re reading this–– is nothing short of mind-boggling.THE CPG CENTURY100Years ofConsumerPackaged GoodsINNOVATION112ForumG M ACe n t e n n i a lSp e c i a lIss u e2 0 0 8Why is it that this remarkable record –– this staggeringdifference between our choices and those available to ourgrandparents or great-grandparents when they were our age–– doesn’t take our breath away?Only, perhaps, because we are, as psychologists might say,“habituated” –– we have lost our sense of wonder because welive with all these options every day.In the kitchen, flip a light switch –– a new CFL, say. Openthe refrigerator, the cupboard, the spice cabinet, the breadbox, the storage drawers, the pantry. Look in the laundryroom, the medicine cabinet, the shower stall. Peer under thekitchen and bathroom sinks. Check the desk, the toilet tank,the trash compactor. Think about the garbage bin, the broomcloset, the baby’s bassinet, the bird feeder. Consider the car,the cat box, the canine cookie jar. Glance in the mirror atyour smoothly shaved face, artfully enhanced eyes, youthfulcolored coif.What did our grandparents see? Well?What is the difference?The difference is a century of explosively creative response toconsumer needs. In a word, innovation.So, this year, 2008, the 100th Anniversary of the GroceryManufacturers Association, we celebrate this astonishingCPG century with a decade-by-decade overview of a barelyrepresentative few of the thousands upon thousands of remarkableCPG accomplishments over the past 100 years –– innovations thatcover the CPG spectrum from products and advertising we recallfrom childhood to packaging and merchandising innovationsremaking today’s store to business systems and processes that willserve as the springboard to CPG’s future.As this survey shows, if CPG has a creativity challenge, itis that, over the past 100 years, it has set itself such a highstandard –– an uphill climb for any sector.Indeed, after reading these pages, you, too, might wellconclude that a synonym for CPG is –– innovation.In 2108, may we all look back on 100 years more.– Carol Fensholt, Editor & PublisherG M ACe n t e n n i a lSp e c i a lIss u e2 0 0 8Forum113
THE CPG CENTURY“In fiscal 2007, we improved our innovation process. We haveenhanced our ability to take creative concepts and turn theminto successful products that capitalize on our branded portfolioand reflect the marketplace trends we have identified.”100Years ofConsumerPackaged Goods1910sINNOVATION19091910A decision in 1909 tocontract with farmers forgrowing crops, rather thanrenting or leasing the landfrom them, assures LakesideFoods of higher quality rawproducts since farmerswho grow vegetables forthem are now paid extra forproducing higher quality,more saleable product.114ForumG M AC1911Albacore tuna isdiscovered in seasonalabundance off thecoast of Oregon in1910, and the BumbleBee brand is born.e n t e n n i a lSRichard G. Wolford, Chairman, President and CEO, Del Monte Foodsp e c i a lIn 1910, McCormick & Companybecomes one of the first producersof tea in gauze pouches,introducing tea bags to themarketplace.Iss u e2 0 0 8Crisco, the firstshortening madeentirely of vegetableoil, is produced byProcter & Gamblein 1911. Since itdoesn’t containanimal products, theshortening is suitablefor vegan and kosherdiets.1912Del Montereplaceshand-solderedcontainers with“sanitary” threepiece cans in1911, ushering inthe era of modern,mechanizedcanning.1913In 1912, the NationalBiscuit Companyintroduces the Oreocookie. The innovativecombination of twochocolate cookie diskswith a crème fillinggoes on to become thebest-selling cookie inthe U.S.G M A1914Morgan Foodspurchases its firsttruck in 1913 to shipproduct. By the 1930s,they become thenation’s largest privatefleet operator withmore than 200 trucks.Five entrepreneursinvest 100 apiece in1913 to set up the firstcommercial-scaleliquid bleach companyin the U.S. Four yearslater, they developa less concentratedversion for householduse, and the Cloroxbrand takes off.Ce n t e n n i a lSp e c i a lIss u eIn 1914, the WrigleyCompany introducesDoublemint in the U.S.It goes on to becomeone of the world’s mostpopular chewing gumswith sales in more than150 countries.2 0 0 8Forum115
THE CPG CENTURY100Years ofConsumerPackaged Goods1920sINNOVATION“Pappas feels strongly that investment ininnovation is essential. We want to pass onthe business to the next generation as aninnovative, efficiently-run enterprise, primedfor whatever challenges the future brings.”“We’re taking a strategic approach toour businesses globally, with a focus onbuilding brands, fostering innovation andpartnering with customers.”Tom Falk, Chairman, President and CEOKimberly-Clark CorporationDean Pappas, CEO, Clement Pappas & CompanySignatu re with OUTLINE version SymbolFor overall widths of MORE than 2 inches (Symbol is SMALLER in relation to type)1921192419251926For overall widths of LESS than 2 inches (Symbol is LARGER in relation to type)1-ColorMachine wrapping isintroduced into the productionprocess for Hershey’s Kissesin 1921, with technology alsoemployed to add the signatureplume to the top of the foilto signify to consumers thatit is a genuine Hershey’schocolate. This plume provesto be so popular that it istrademarked in 1924 by TheHershey Company.116ForumG M ACSince 1921, Betty Crockerhas symbolized a traditionof service to consumers.The name of this fictitiousFirst Lady of Food hasbecome synonymouswith helpfulness,trustworthiness and quality,and a major brand asset forGeneral Mills.e n t e n n i a lSp e c i a lI2-ColorKimberly-ClarkCorporation introducesa disposable cleansingtissue called Kleenexto remove cold creamor makeup instead ofusing face towels. Italso advertises Kotex,its disposable femininehygiene pad, in GoodHousekeeping magazine,initially offending readers.PMSBlack(or other single PMS color)ss u e2 0 0 8PMS542PMS425In the early 1920s, acooperative is formed thatmakes butter from fresh, sweetcream instead of sour cream,and sells it in one-poundpackages with individuallywrapped sticks instead of intubs. In 1924 a contest is heldto name the product, and thebrand Land O’Lakes – a tributeto Minnesota’s sparkling lakes– debuts.Lever Brotherslaunches its CleanHands Campaign.Part of a child healthpolicy, it educateschildren about dirtand germs andencourages themto wash their hands“before breakfast,before dinner andafter school.”In 1924, Mars introducesMilky Way, the first ofthree candy bars thatbecome part of America’sconfectionary culture.Three Musketeers andSnickers follow in thenext decade.G M AClement Pappasinitiates cranberryprocessing in 1925and pioneers thecommercial productionof cranberry sauce.Ce n t e n n i a lSAfter studying Eskimos in the Arcticand observing that food which israpidly frozen at extremely lowtemperatures retains its freshnessand flavor, Clarence Birdseye formsthe General Seafood Corporation(a predecessor to Birds Eye Foods)and unveils his “Quick FreezeMachine” in 1926. He then focuseson marketing, entering into a jointventure to make refrigerated grocerydisplay cases for his products.p e c i a lIss u e2 0 0 8Forum117
“Virtually every consumer product company talks about innovation. The hard partis turning the talk into meaningful results. Our product innovation process has beencompletely reinvented. It results in rapid identification and development of fewer,bigger and better ideas. Our innovation parameters are quite clear: Ideas that aresticky Ideas that expand our margins Ideas that play our inherent strength in healthand wellness Ideas we can own, arising from unique technologies we protect.”THE CPG CENTURY100Years ofConsumerPackaged Goods1927Edwin Perkins modifiesa soft drink syrup calledFruit Snack in 1927 byconcentrating it into apowder. He packages it inenvelopes and changesthe name to Kook-Ade(and then Kool-Aid), whichultimately becomes a popculture favorite for Kraft.118ForumG M AC1930s1920sINNOVATIONGary M. Rodkin, President, CEO and Director, ConAgra Foods19281929At the advice of herpediatrician, Dorothy Gerberstruggles to hand-strainfoods for her seven-monthold daughter. Her husband,Daniel, moves the processto his Fremont CanningCompany and, by late 1928,the first commercial babyfoods from Gerber are readyfor the national market.In 1929, HectorBoardi, an Italianimmigrant and chefat a restaurant inCleveland, obligescustomers askingfor jars of his tomatosauce to take home. Headds pasta and otheringredients, and ChefBoy-ar-dee productsfrom ConAgra Foodsare born.e n t e n n i a lSp e c i a lIss u e2 0 0 81930The modern system ofbrand management isdeveloped by Procter& Gamble in the early1930s and remains thestandard for consumerproduct companiestoday. The system callsfor one person to bein charge of a brandand head up a team tomarket it.In the 1930s, theTasty BakingCompany, lookingto capitalize on thecountry’s penchantfor economy,launches individuallypackaged, lunchboxsized pies. At a nickela piece, Tastykakesare immediate hits.Three cranberrygrowers who wantto expand themarket for theircrop come up with anew and innovativeproduct madefrom cranberries,introducing OceanSpray CranberryJuice Cocktail in 1930.G M A19331934A schoolteacher decides tosupplement his 65 monthly salaryin 1933 during the Great Depressionby selling pepper seeds. NowAmerica’s largest producer ofpimentos and bell peppers, MoodyDunbar vegetables are freshprocessed from proprietary seedstock and employ proprietaryroasting methods to carmelize thenatural sugars and give them asmoky, sweet flavor.In 1934, Campbell Soupintroduces ChickenNoodle and Creamof Mushroom soups,varieties that continue tobe two of the company’sthree top-selling soupssold to this day. The thirdis Tomato soup, whichdebuted in 1897.Ce n t e n n i a lSp e c i a lIss u e2 0 0 8Forum119
“The twin pillars of success over the 116-year existence of Hormel Foods havebeen “Innovation” and “Quality.” Innovation includes the creation of flavorful andconvenient products by teams of employees, and it also includes technologicalinnovation aimed at enhancing food safety, improving work processes andstreamlining customer service, among other things.”THE CPG CENTURY100Years ofConsumerPackaged Goods19361937In 1936, Oscar Mayer& Co. rolls out theWienermobile, anearly mobile marketingvehicle that promotesthe company’s hot dogs.120ForumG M ACe n t e n n i a l1939The world’s first instantcoffee is developedby Nestlé in 1937 andbranded Nescafé (acombination of Nestléand café). It becomes astaple beverage of theU.S. armed forces duringWorld War II.SMcCormick &Company developsnew metalcontainers for itsspice line in 1937.The innovationwins seven nationalpackaging awardsfor the companyover the next twoyears.p e c i a lIss u e2 0 0 8Kraft Macaroni &Cheese dinners debutin the U.S. and Canadain 1937. Initial successis due to rationing ofmilk and dairy duringWorld War II andconsumer demandfor hearty, meatlessentrees.1940s1930sINNOVATIONJeffrey M. Ettinger, Chairman, President and CEO, Hormel FoodsThe first can ofSPAM luncheonmeat is producedin 1937. WithAmerica’s entryinto World War II,Hormel provides15 million cans ofthe product to thetroops every week.The J.M. SmuckerCompany’s applebutter jar receivesThe Wolf Award in1939 at the NationalPackaging Show forbest packaging.E & J Gallo Winery’s commitment toprotecting the land and enhancingwildlife habitat through sustainableagricultural practices originateswith the Winery’s co-founders inthe late 1930s. In 2005 the companyis recognized as the first U.S.winery to receive the InternationalStandards Organization’s ISO 14001certification, a status createdto assist companies in reducingimpacts on the environment.G M ACe n t e n n i a l1940Niche marketing makes its firstappearance when Pepsi-Cola Co. PresidentWalter S. Mack makes an historicmarketing decision: to hire Pepsi’s firstblack salesmen to target black consumers.Blacks were then a consumer markettotalling 8 billion, yet most corporationsnever considered the demographic in theirselling efforts. Mack’s hiring of Herman T.Smith as its first black salesman was sounusual it was noted in the March 18, 1940edition of The New York Times.Sp e c i a lIss u e2 0 0 8Forum121
THE CPG CENTURY“Our solid performance in the year was the result of various factors These factors showcase the strength of our business strategy whichis based on an unwavering commitment to product innovation, brandleadership and distribution strength ”100Years ofConsumerPackaged Goods12219411945In 1941, Marsintroduces M&Ms,which become aconvenient snackfor the U.S. armedforces duringWorld War IIbecause the candywouldn’t melt inchanging climates.Rich Products opens itsdoors in 1945 when RobertE. Rich revolutionizes foodprocessing by discoveringthat the soya bean canbe frozen, thawed andwhipped. This leads to theintroduction of the world’sfirst non-dairy whippedtopping, Rich’s WhipTopping.ForumG M ACe n t e n n i a lSGrupo Bimbo beginsoperations in MexicoCity in 1945 and goes onto become one of themost important bakeriesin the world due to itsproduction, volume, salesand brand positioningof over 5,000 products.A major innovation isadding vitamins andminerals to its products.p e c i a lIss u e2 0 0 819461948The first heavy-dutysynthetic laundrydetergent quicklybecomes thedominant brand in thecategory. Procter &Gamble introducesTide in test marketsin 1946 and beginsnational distributionthree years later.Dial is the firstdeodorant soapdeveloped in the U.S.Introduced in theChicago market in1948, the name Dialis chosen becausethe soap advertises“around the clock”protection againstthe odor caused byperspiration.1950s1940sINNOVATIONDaniel Servitje, CEO, Grupo BimboA St. Louis inventordevelops a specialaerosol valve andcreates Reddi-wipreal whipped creamin 1948. ConAgraFoods expands tonational distributionin 1954.19541955In 1954, C.A. Swanson & Sonsdevelops the first TV dinnerconsisting turkey, corn breaddressing and gravy, butteredpeas and sweet potatoes.The initial production order– considered a gamble – isfor 5,000 frozen dinners thatcome in a box resemblinga TV and retail for 98 cents.Swanson sells 10 million thefirst year.There were no fluoridetoothpastes before Procter& Gamble introduced Crestin 1955. The AmericanDental Association soonrecognizes Crest aseffective in preventingtooth decay, and itbecomes the leadingbrand in the category.G M ACe n t e n n i a lSp e c i a lIss u eBush Brothersexpands beyondits core bakedbean products bydeveloping canned,southern peas in 1955.2 0 0 8Forum123
THE CPG CENTURY100Years ofConsumerPackaged Goods12419591959Orange-flavored Tangdebuts in 1959 as asugared, powdered,non-carbonatedbreakfast drinkfrom General FoodsCorporation. Popularitytakes off when NASAuses the beverage onGemini space flights afew years later.Procter & Gambledevelops the firstdisposable diaper in1959. Pampers featuresa unique three-piececonstruction to absorbmoisture, distribute ituniformly, and transmitfluid to the absorbentcore without passing itback to the skin.ForumG M ACe n t e n n i a lBrenda C. Barnes, Chairman and CEO, Sara Lee CorporationSThroughout the decade, KelloggCompany launches severalready-to-eat breakfast cerealsthat become consumer favorites.They include Kellogg’s CornPops, Frosted Flakes, HoneySmacks, Coca Krispies, andSpecial K, the first high-proteinbreakfast cereal. Tony the Tiger,a cereal icon, bursts on thescene as a spokescharacter forFrosted Flakes.p e c i a lIss u e“Innovation is an essential component of our long-term growth strategy. Weknow Sara Lee’s future success will depend on our ability to keep the productinnovation pipeline full of exciting new ideas that cater to real consumer needs.”David Mackay, President, CEO and Director,Kellogg Company1960s1950sINNOVATION“We take a global approach to innovation,expanding and adjusting our portfolio tomeet consumer needs around the world.More than 270 new products or adaptationsof other successful products wereintroduced in 2007 alone.”2 0 0 8In the 1950s and 60s,Canada Dry (part ofCadbury Schweppes)becomes the firstmajor soft drinkcompany to introducesugar-free drinks andto package soft drinksin cans.1962A handful oforchardists purchaseTree Top in 1962 andform a grower-ownedcooperative. Since itsinception, that handfulof orchardists grew, atone time, to be 2,500grower-owners in thestates of Washington,Oregon, and Idaho.The slogan, “With aname like Smucker’s,it has to be good” iscoined in 1962.Becel, the pioneering“health” margarine, islaunched after the medicalcommunity asks Unileverto develop a cholesterollowering food product.At first, it’s only availablefrom pharmacies.G M ACe n t e n n i a l1968Playtexintroduces thefirst plasticapplicatortampon in 1968.Sp e c i a lIFollowing the death of itsfounder in 1968, Juanita’s Foodsdecides to exit the fish canningbusiness and begin producingcanned Mexican foods.Although canning traditionalMexican foods is initiallyviewed as heresy by manyHispanics, Juanita’s grows tobecome the world’s largestmanufacturer of menudo, apopular Mexican stew.ss u e2 0 0 8Forum125
THE CPG CENTURY100Years ofConsumerPackaged GoodsINNOVATION“The greatest challenge for anybusiness leader is we cannot see thefuture. Our greatest responsibility isthat, nevertheless, we must make wisedecisions not just for our companies,but for future generations.”“Heinz is well-positioned for consistentgrowth in sales and profits as we continueto develop innovative healthy, great tastingand convenient foods across our corecategories and geographies where we haveleading brands and strong infrastructure.”H. Fisk Johnson, Chairman and CEOSC JohnsonWilliam R. Johnson, Chairman, Presidentand CEO, H. J. Heinz Company1980s1970sSignatu re with OUTLINE version SymbolFor overall widths of MORE than 2 inches (Symbol is SMALLER in relation to type)197019721975197619791981198219851988For overall widths of LESS than 2 inches (Symbol is LARGER in relation to type)1-ColorChurch & Dwight isthe sole corporatesponsor of the firstEarth Day in April1970, and later thatyear introduces Arm& Hammer PowderLaundry Detergent,the first nonphosphate detergent.126ForumG M ARich Products signsa 25-year deal in 1972which gives it namingrights to the BuffaloBills brand newfootball stadium. Itis one of the earliestexamples of the saleof naming rightsin North Americansports.Ce n t e n n i a lSS.C. Johnson makesthe bold move in 1975to voluntarily andunilaterally eliminatechlorofluorocarbons(CFCs) from itsaerosol products,such as Raid insectspray, three yearsbefore the U.S.mandate.p e c i a lIss u eIn 1976, Red Goldrevolutionizes thetomato industry byadopting the use ofcoreless tomatoes,which were firstdeveloped fouryears earlier.2 0 0 8Dr. Anthony J.F. O’Reillybecomes President and CEOof Heinz in 1979, launchingan era in which the companybecomes a leader in thenutrition and wellnessrevolution, and penetratessuch challenging markets asSouth Africa, Russia, the CzechRepublic, Hungary, SouthKorea, China, India, Egypt,Botswana and Zimbabwe.PMSBlack(or other single PMS color)2-ColorPMS542PMS425Kimberly-ClarkCorporation introducesDepend incontinenceproducts. The firsttelevision ads air in1981 with actress JuneAllyson encouragingpeople to “get backinto life.”Backed by a 100million advertisingcampaign, theCoca-ColaCompany in1982 introducesDiet Coke whicheventuallybecomes the topselling soft drink inthe U.S.G M AConsolidatedFoods Corporationchanges itsname to Sara LeeCorporation in1985 to reflect itsconsumer marketingorientation. In 1988,the corporationreaches the 10billion sales mark.Ce n t e n n i a lOscar MayerLunchables debuts in1988 and kicks off thelunch combinationscategory in the U.S.Kraft goes on to developinnovative varieties ofthese convenient meals,including pizza, taco,breakfast selectionsand better-for-youchicken dunks.Sp e c i a lIss u eRed Gold installs thefirst state-of-the-artevaporator in its plantin 1988, allowing it toconcentrate tomatopuree at a lowertemperature thantraditional atmosphericcooking, resulting intomato products withconsistent color, textureand flavor.2 0 0 8Forum127
“We will place an increasedemphasis on brand-building andinnovation, as we continue onthe path toward becoming a toptier consumer packaged goodscompany.”THE CPG CENTURY100Years ofConsumerPackaged Goods19951996Gregg L. Engles, Chairman,CEO and President, Dairy GroupDean FoodsA.G. Lafley, Chairman & CEO, The Procter & Gamble CompanySignatu re with OUTLINE version Symbol2000s1990sINNOVATION“Every business has some central organizing principle that people use as the basis for makingdecisions, meeting challenges, and creating opportunities. For P&G, it is innovation. Innovationmust be the central driving force . at the center of the business in order to choose the rightgoals and business strategy and make how-to-win choices. It is central to the job of every leader— business unit managers, functional leaders and the CEO.”1998For overall widths of MORE than 2 inches (Symbol is SMALLER in relation to type)19992002For overall widths of LESS than 2 inches (Symbol is LARGER in relation to type)TMProfitability & Sustainability1-ColorFairbault Foodscelebrates its 100thanniversary with theconstruction of anew warehouse atFairbault IndustrialPark in 1995.128ForumG M AIn 1996, DeanFoods pioneersthe refrigeratedsoymilkcategory withthe introductionof Silk.Ce n t e n n i a lKnouse Foodsreceives the DuPontAward for “Excellencein Packaging” aswell as DuPont’s topDiamond Award in1998 in recognitionof its 46-48-ounce,plastic easy-grip applesauce container.Sp e c i a lIIn 1999, FlowersFoods becomes thefirst commercialwholesale baker tointroduce a sugarfree bread calledNature’s OwnSugar Free.ss u e2 0 0 8Unilever starts the 21st centuryby launching two initiatives: Pathto Growth, a concentration oninnovation and brand develomenton a focused portfolio of 400brands (down from 1,600), andfollowed in 2004 by Vitality,a mission “to meet everydayneeds for nutrition, hygiene, andpersonal care with brands thathelp people feel good, look good,and get more out of life.”Procter & Gamble launchesa “connect and develop”model for new products asan alternative to innovationfrom within. The companycollaborates with suppliers,entrepreneurs and others,looks throughout the worldfor technologies, ideas andproducts with potential,then develops, improvesand markets them.2-ColorKimberly-Clark Corporationopens an InnovationDesign Studio equippedwith advanced virtualreality technology thatenables the company totest merchandising layoutsand chart a shopper’sproduct choices withoutbuilding physical mockupsor conducting in-storesurveys.PMSBlack(or other single PMS color)PMS542PMS425G M ARalston Foods isthe industry leaderin private labelready-to-eat and hotcereals, supplyingover 50 varietiesthat compete withnational brandsin terms of taste,appearance andnutrition.Ce n t e n n i a lSIn 2002, CampbellSoup introducesSoup at Hand,the first line ofsippible soupsdesigned tofit the lifestyleof America’sincreasingly onthe-go consumer.p e c i a lIss u eGeorgia Pacific begins using itsPackaging Systems Optimization(PSO) calculator in 2002 tohelp its customers reducetotal packaging costs whileachieving greater sustainabilitywith a short lead time. Over 180million in annual savings areidentified by computing potentialsavings in terms of raw materialcost, energy consumption andgreenhouse gas emissions(GHG).2 0 0 8Forum129
THE CPG CENTURY100Years ofConsumerPackaged Goods2000sINNOVATION2003ForumG M A“At Campbell Soup Company, innovationcontinues to be critical to our success. Theprogress we have made as a company,particularly throughout the last six years ofour company¹s transformation, is based onthe innovative mindset we apply to our work.”Indra K. Nooyi, Chairman and CEO, PepsicoDoug Conant, CEO, Campbell Soup Company2004In 2003, Kraft works withSafeway Stores using a newcollaboration process developedby IDEO, a global design andinnovation firm. They createa cross-functional team thatimproves Safeway’s stockposition through a redesignedsupply chain and alignmentbetween the trading partners. Inone category, Kraft experienceda 162% sales increase.130“Across the entire spectrum of categories, ourcontinued focus on R&D and innovation as wellas consumer insights enables us to adapt andcontinually meet consumer needs, while stillleveraging the global strengths our flagshipCarbonated Soft Drinks beverage portfolio.”CCampbell Soupdeploys breakthroughgravity-feed shelvingin supermarkets in2003. The uniquesystem groups soupsin a highly-visibleand efficient way andmakes it easier forshoppers to find andselect their favoritevarieties.e n t e n n i a lSFrito-Lay removestrans fats fromDoritos, Tostitosand Cheetossnacks in 2003.p e c i a lIss u eIn 2004, Kraft introduces aline of South Beach Diet(now called South BeachLiving) products developedby Arthur Agatston,author of the best-sellingbook, “The South BeachDiet.” The products meetconsumer interest in eatingthe right combinationof carbs and fats from avariety of foods.2 0 0 8PepsiCo introduces the SmartSpot on packaging in 2004to help consumers identifyfood and beverage choicesthat contribute to a healthierlifestyle. The spot is placed onsome 250 products, includingTropicana Pure Premium,Gatorade Thirst Quencher,Baked! Lays, Potato Crisps,Quaker Oatmeal, Diet Pepsi,and Life Cereal.Kraft wins the first GMA CPG Award forcollaborative supply chain redesign withSafeway, then the nation’s fifth-largest retailerand recipient of some 300 million pounds ofKraft product annually. Facilitated by Palo Alto,CA-based design firm Ideo, the effort sought toimprove customer collaboration and alignment.Results: a 162-percent year-to-year increase intotal sales of one featured category, a sevenpercent improvement in full pallet shipments,new-product speed to retail cut 50 percent, newinnovation tools and a “true partnership.”20052006Campbell Soup Co. wins the GMA CPGAward for its center-store categoryturnaround of soup, a multipart effort toredefine soup as a much-larger “simplemeals” category starting in 2002. The newapproach, “Integrated Category Planning,”shifted the entire company’s thinkingfrom a brand focus to a mega-categoryfocus, reversing a 30-year decline incondensed soups and incremental salesfrom new convenience- and health-orientedpackaging, products and merchandising.Sara Lee Foods establishesan ongoing R&D relationshipwith Purdue University in2006 by launching the SaraLee Innovation Award, anopportunity for collegestudents to win 10,000 byproviding the company withan innovative idea or productwith the potential to enter themarketplace.G M ACe n t e n n i a lSp e c i a lIss u e2 0 0 8Forum131
“We use high levels of brand investment and innovation to nurture our PowerBrands to above industry and company average growth rates. Our innovation rateat almost 40% of net revenue from products that launched in the prior three yearsstrengthens the positions of our Power Brands within their categories, continuallyenhancing their consumer appeal. These innovations are then supported with amarketing investment that is amongst the highest in our industry – with our mediainvestment alone running at 12.4% of net revenues.”THE CPG CENTURY100Years ofConsumerPackaged Goods2000sINNOVATION2007Masterfoods USA, Wm.Wrigley Company andTime/Warner Retail winthe 2006 GMA CPG’sAward for collaboration onresearch identifying a 2billion industry opportunityfrom better checkstandmerchandising; and thatfailure to adequatelymerchandise front endresults in losses averaging 100,000 per store per year.132ForumG M ACIn 2007, Furmano Foodsbases its product andpackaging innovationson collaboration andsees a sales lift of itstomato sauce when itmoves from a red to ayellow label. How? Byplacing prototypes in theretail aisle to determinewhich label stands outon the shelf.e n t e n n i a lBart Becht, CEO and Director, Reckitt BenckiserSUnilever wins GMA’s 2007 CPG Award for itsgroundbreaking collaboration with Ahold.Unilever and Ahold worked together tounite multiple marketing and merchandisingpersonnel inside Ahold, spanning over 20categories. This broad team ensured thatout-of-store and in-store programming metshopper needs –– and were well-executedacross more than 1,000 stores. Result:Shopper trips to the store rose 90 percent,multiple category buying rose 80 percent,sales per trip rose 25 percent, and totalstore sales rose by 138 percent.p e c i a lIss u e2 0 0 8Reckitt Benckiser becomes the firstmajor fast-moving consumer productscompany to target a new standard incarbon reduction by launching Carbon 20in 2007, a revolutionary program aimed atreducing its total carbon footprint by 20%per unit by the year 2020. This “cradle tograve” approach across the entire productlife cycle measures not only the carbonimpact of raw and packaging materials,manufacturing, logistics and distribution,but also consumer use of products, wherethe greatest carbon impact can occur.Sunny Delight Beverages respondsto consumer expectations forfresher tasting, more wholesomeproducts in 2007 by launching FruitSimple, a 100% juice smoothiedesigned to provide two fullservings of fruit in every 8-ounceglass
brand Land O'Lakes - a tribute to Minnesota's sparkling lakes - debuts. Lever Brothers launches its Clean Hands Campaign. Part of a child health policy, it educates children about dirt and germs and encourages them to wash their hands "before breakfast, before dinner and after school." In 1924, Mars introduces Milky Way, the first of
