Luis Marconi's Long-Term Growth Strategy for Grocery Products
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Luis Marconi has over 17 years of experience at Hormel Foods, currently serving as Group Vice President of Grocery Products. Through innovation, branding, and productivity, he has reinvented the grocery products portfolio to focus on growing categories like Mexican foods and nut butters. Under his leadership, grocery products is positioned for long-term growth of 3% in top line sales and 6% in bottom line profits.
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Luis Marconi's Long-Term Growth Strategy for Grocery Products
- 1. Luis MarconiGroup Vice President, Grocery Products Hormel Foods Career History 2016: Group Vice President, Grocery Products 2012: Vice President, Grocery Products Marketing 2009: Managing Director, MegaMex Foods Joint Venture 2006: Manager of International Joint Ventures, Grocery Products 2000: Manager of International Sales and Marketing, HFIC Favorite Hormel Foods Product 17 Years with Hormel Foods
- 2. Reinventing Luis Marconi Group Vice President, Grocery Products Grocery Products
- 3. Agenda • REINVENTING GROCERY PRODUCTS • A Long-Term Growth Story
- 4. Mexican Foods ‘09 to ‘12 Grocery Products Reinventing REINVENTING GROCERY PRODUCTS Nut Butters ‘12 to ’16 Simple Meals Before ‘08 Our Purpose: To Inspire Consumers With Tasty & Simple Foods Our Drivers: Innovation, Branding & Productivity BRAND
- 5. New Consumer Aligning With the REINVENTING GROCERY PRODUCTS IRI Buyer Index Latest 52 weeks ending 3-19-2017 Simple Meals BOOMER CONSUMPTION INDEX 110 Mexican Foods MILLENNIAL CONSUMPTION INDEX 125 Nut Butters GEN-X CONSUMPTION INDEX 108
- 6. Our Portfolio Balancing REINVENTING GROCERY PRODUCTS Internal Data F'08 F'12 F'16 ~30% Mexican Foods ~70% Simple Meals ~20% Nut Butters ~45% Simple Meals ~35% Mexican Foods ~100% Simple Meals Sales Evolution BRAND BRAND
- 7. Brand Support Increasing Our REINVENTING GROCERY PRODUCTS Internal Data F'12 F'16
- 8. Meaningful Innovation Translating Insights into REINVENTING GROCERY PRODUCTS Peanut Butter Out Of The Jar Fresh Guacamole + Snacking Salsa + Guacamole Nut Butters On-The-Go
- 9. Profitable Growth Consistent, REINVENTING GROCERY PRODUCTS - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 - 50,000 100,000 150,000 200,000 250,000 300,000 Internal Data 10-YEAR CAGR +7% 10-YEAR CAGR +7% Segment ProfitsNet Sales
- 10. • Reinventing Grocery Products • A LONG-TERM GROWTH STORY Agenda
- 11. Mexican Foods Outgrow A Growing Category Grocery Products Reinventing A LONG-TERM GROWTH STORY Our Drivers: Innovation, Branding & Productivity Simple Meals Nurture Category Defining Legacy Brands Nut Butters Scale Up & Innovate In Snacking Our Purpose: To Inspire Consumers With Tasty & Simple Foods BRAND
- 12. Nurturing Category-Defining Legacy Brands Simple Meals A LONG-TERM GROWTH STORY Brand Category $M Dollar Share Share Change $228 90.0% +0.1 pp $171 79.2% +6.0 pp $83 78.2% +1.6 pp $103 67.7% -0.7 pp $537 41.3% +0.3 pp IRI Last 52 weeks ending on 3-19-2017 MINIMAL CAPEX
- 13. Simple Meals A LONG-TERM GROWTH STORY 1 Internal data; 2 Buyer Consumption Index IRI Panel Last 52 weeks ending 3-19-2017 TODAY… Effortless meal creativity Defines the category Iconic equity …GOING FORWARD Engaging consumers in novel ways Multicultural - Asian: 257, Hisp: 132 Multi-channel expansion F'12 F'16 1 2 Net Sales
- 14. Our Brands Supporting A LONG-TERM GROWTH STORY
- 15. Scaling Up & Innovating A LONG-TERM GROWTH STORY IRI Last 52 weeks ending on 3-19-2017 2013 2016 16.5 18.5 Hormel Foods Nut Butter Market Share % + 2.0 Nut Butters
- 16. Nut Butters A LONG-TERM GROWTH STORY TODAY SKIPPY® brand spreads simple fun! Innovation leader Iconic brand equity GOING FORWARD SKIPPY YIPPEE!® Brand building Snacking innovation Distribution runway IRI Last 52 weeks ending on 4-9-2017 Household Penetration (%) 24.9 2013 2016 Dollar Share (%) 16.9 19.5 2013 2016 24.0
- 17. Almond Butter Peanut Butter Confection ACV 60% 16% 26% Chg. L52 Weeks +7pp +7pp +8pp Nut Butters A LONG-TERM GROWTH STORY ON TRACK • Completion of strategic integration • Points of distribution +31% since acquisition IRI Total MULO Ave Weekly ACVL12W Ending 3/19/17HHP and Dollar Share: IRI scan & panel - Total US Calendar Years 2014 and 2016 Points of Distribution: HRL 2017 POD tracker 3.1.2017 2.9 5.4 12.4 25.0 2014 2016 2014 2016 BRAND Household Penetration (%) Dollar Share (%)
- 18. Our Brands Supporting A LONG-TERM GROWTH STORY
- 19. A LONG-TERM GROWTH STORY IRI Last 52 weeks ending on 4-9-2017 Outgrowing a Growing Category 3% 10% 12% Mexican Foods Herdez Wholly Growth % Mexican Foods 5.7 6.4 7.5 9.2 2013 2016 2013 2016 Mexican Foods + 1.8 + 2.8 Retail Sales Household Penetration (%) BRAND BRAND
- 20. Mexican Foods A LONG-TERM GROWTH STORY TODAY Fastest growing salsa Guacamole salsa innovation Authentic equity GOING FORWARD Increasing brand awareness Exploring authentic flavors Distribution in the East IRI Last 52 weeks ending on 4-9-2017 2013 2016 ($m) $45M $59M Retail Sales
- 21. A LONG-TERM GROWTH STORY TODAY #1 Guacamole in America Superfood Innovative GOING FORWARD Lifestyle brand Innovation in refrigerated dips Distribution IRI Last 52 weeks ending on 4-9-2017 40% Peer 1 15% Peer 2 10% Private Label 8% Other 27% Mexican Foods BRAND
- 22. Our Brands Supporting A LONG-TERM GROWTH STORY BRAND
- 23. 3% Top Line & 6% Bottom Line Grocery Products Will Grow A LONG-TERM GROWTH STORY Mexican Foods Outgrow A Growing Category Our Drivers: Innovation, Branding & Productivity Simple Meals Nurture Category Defining Legacy Brands Nut Butters Scale Up & Innovate In Snacking Our Purpose: To Inspire Consumers With Tasty & Simple Foods BRAND
- 24. Reinventing Luis Marconi Group Vice President, Grocery Products Grocery Products