Innovation is all about It’s proactive …… and
• Innovation is necessary: Innovation in “Food”
changing anyway (cause
> val. +3.1% CAGR
> vol. +0/4% CAGR
Global Top 10 Top 10 Risers
By value by brand value growth, (year-on-year)
Rank Brand Value ($m)
1 Google 100,039
Brand growth (%)
2 Microsoft 76,249 China Merchants Bank 168
3 Coca-Cola* 67,625 Blackberry 100
4 IBM 66,622 Amazon 85
5 McDonalds 66,575 Wendy's 72
6 Apple 63,113 AT&T 67
7 China Mobile 61,283 Aldi 49
8 GE 59,793 Auchan 48
9 Vodafone 53,727
Johnnie Walker 42
10 Marlboro 49,460 Kronenbourg 1664 41
*includes Diet Coke, Coke Light and Coke Source: Millward Brown Optimor (including
Zero. Source: Millward Brown Optimor data from BrandZ, Datamonitor and
(including data from BrandZ, Datamonitor Bloomberg)
Old = New?
The Retro Brandwagon – Financial Times, May 2009
Andy Bond of Asda, comments: “At a time when people are having to
watch the pennies, many are reverting back to doing things like their
parents did…. we’re seeing the sales of brands like Kellogg’s, Bird’s
custard and Vimto rising faster than others, as people hark back to their
“The brands that do best manage to balance evoking memories with
What is right investment %?
Unilever 2.4% (2005 data)
Danone 1.2% (est.)
Nestle 1.79% (est.)
• Ireland – small
• Breakthrough vs. Adoption?
• Activity ≠ Success!
• Approx. 30% activity in cheese
Everyone’s at it…… so
Everyone has to be at it!
Know your customers!
40 % PL
Tesco Safway Carrefaur Aldi
PL quality – largely not an issue; better?
It tends to be a ‘Rocky Road’
Beer & It pays!
Enthusiasm This is taking time
This is taking time Maybe not a bad idea
Maybe not a bad idea
Results aren’t is suffering
Is it worth it?
Is it worth it? Start to see
Start to see
The Dark Night of
Weeks or months Up to two years
With varying influence between Innovation
and Operational teams
How the text books see it
Innovation Operation More like reality
Innovation Operation But what it needs to be
And the hurdle rates are very high
With particular challenges for FMCG
Increasing/Decreasing the pace of Innovation
In 2003 our NPD pipeline x 12
In 2007 our pipeline x 76
In 2009 our pipeline x 12
Success of New Product Launches Falling
Competitors & Retailers will copy – 6 weeks!
Shelf Space Squeeze – 1 in 1 out
- US multiple 41,000 skus (+50% in 5 yrs)
- UK multiple +8% skus chasing +2% space
A new approach needed….
Investment banker invests in 10 start-ups
Invests €100k into each
Result at end Year 1
7 of the 10 go out of business
2 of the 10 break even
1 is spectacular and returns 1200%
Is this success or failure?
Success of course ….it is not about the
quantity but it is about the numbers
Fail fast …. Fail cheap
Have a variety of innovation initiatives from the
more certain to the uncertain
Evaluate them differently …… don’t use business
case thinking where uncertainty is high
Innovation is not just about products but should
impact all functions…. is there a better way?