G L A S G O W Jim Cook Commercial Director Private Label Congress and Exhibition Retailer Demands.
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Transcript of G L A S G O W Jim Cook Commercial Director Private Label Congress and Exhibition Retailer Demands.
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Running Order
• Overview of the Whyte & Mackay Group
• Growing demands of sophisticated retailers
• Summary
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16th May 2007 Whyte & Mackay acquired for $1b by United Breweries India
Whyte & Mackay becomes part of Worlds largest spirits company (USL).
115m cases a year with 15 brands selling 1M+ cases a year
4 whisky brands in Top 10 fastest growing brands in the world
Whyte & Mackay the No1 Scotch Whisky Private Label supplier in the world
Part of the worlds largest spirits company....
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Dalmore, Isle of Jura, Fettercairn and Tamnavulin malt distilleries Invergordon Grain
Distillery
Warehousing Bottling Facility
Dalmore House Headquarters
Fully Integrated
Retailers demand that Scotch Whisky suppliers control the supply chain…….
Malt Distilleries
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Whyte and Mackay have direct control of the supply chain……
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15
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Direct control Third party sourced
Supply Chain % cost split
Packaging elements sourced indirectly
Spirit production, bottling, maturation warehousing
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• Front end process (retail customer facing)
– Production/manufacturing legislative compliance
– Product appearance; visible perfection
– Distribution excellence
– Precision logistics
– Environmental controls
• Back end process (shopper facing)– Differentiated products
– Packaging design creativity
– Innovation/pioneering NPD
– Zero tolerance to in-store out of stocks
Wide retailer demands on two fronts…….
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Operating to exacting standards……
• Front end process (retail customer facing)
Legislative compliance: (BRC) Global food standard accreditationAudits by industry compliance specialists Two production facility visits per year. Random customer audits. Zero tolerance based audits
Product appearance; visible perfectionInternal quality control measures; zero tolerance. Immediate corrective actionCustomer led random checks
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• Front end process (retail customer facing)
Distribution excellenceDedicated customer service assistant for each major customerBack hauling (customer collection)24hour/365 days service
Precision logistics98.5% in-bound delivery compliance (on time and in full)Penalties for non-compliance
Environmental controlsPackaging waste reduction targets Carbon foot print (20% packaging weight reduction target over three years)
Operating to exacting standards……
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Innovation and creativity….
•Back end process (shopper facing)
Differentiated products Unique product recipes /taste flavours for each
customer Compete favourably with leading brands Capable of industry award winning accolades
Packaging design creativity – creating a design shift
Challenging category convention Compete with international brands
From this To this
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Innovation and creativity…..
• Back end process (shopper facing)
Innovation/Pioneering ideasStimulate consumer interest…..lead not followVintage products, extra aged products, use of maturation technologyEvents led products (Christmas, Fathers Day, national celebrations etc). Merchandising advances (shelf-ready selling units, malt whisky prestige tray
units etc)
Master BlenderMaturation technology Innovative Products
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• The retailing environment is fiercely competitive
• Retailers in search of differentiated products and services
• This search places increasing demands on suppliers
• Suppliers need to be agile and responsive to changing conditions
• Close collaboration of retailer and supplier is a pre-requisite for
success
• Selection by the retailer of their Private Label supplier is vital
• Both retailer and supplier must aim for a long term, enduring
relationship
Summary……