disrupting the “big food” innovation...
TRANSCRIPT
Disrupting the “big Food” innovation model
Gil Horsky May 16th 2019
OUR MISSION: TO LEAD THE FUTURE OF SNACKING
80,000employees
Sold in over
150 countries
‘18 net revenues
$26 billion
• 1st in Chocolate
• 1st in Biscuits
• 1st in Candy
• 2nd in Gum
Huge MARKET
ON TRENDMDLZ
LEADERSHIP
$1.2TConsumer Behavior
Growing faster than food across
the world
Global packaged snacks leader
Our core categories are ~45% of
packaged snacks
WHY SNACKING?
“Power shifts” are changing how consumers live,
eat & shop….
Smaller companies are winning & growing the category
Stage-Gate – Prof. Cooper 1986
The industry’s innovation playbook hasn’t
changed for the past 33 years…
Cheaper marketing costs through digital and
social media
Ability to outsource everything from product development to manuf.
& distribution
Sinking distribution costs via Amazon / DTC coupled with startup-
friendly retailers
Widespread consumer demand for authentic,
healthy and high-quality foods
There has never been a better time for new smaller food
brands to successfully penetrate the food industry
So maybe we should turn the “big food” innovation process on its
head and focus on starting new entrepreneurial food companies?
Broad Snacking hunting grounds: Well-Being, Premium, Digital platforms
INVENT
Develop innovative businesses or brands
REINVENT VENTURE
Independent Innovation and Venture Hub
Minority investments in start-up companies
Accelerate or reposition existing small brands
OUR FOCUS AREAS
Snacks that are Good for People, Kind to the Planet, Deliciously Fun!
1
Next GenFruit & Veg
Appealing, exciting, and
accessible F&V for modern lifestyles.
2
No Guts, No Glory
Making gut health more
accessible and enjoyable
through new forms/flavors.
3
Heroic School Snacks
Snacks that meet the demands of kids & schools,
and give parents bragging rights.
4
Ready to EatCare
Snacks designed to naturally
bolster the Body and Mind.
5
Planet First Snacks
Snacks that actually support planet Earth and its inhabitants.
OUR APPROAC
H
Agile, Fast &
Experimental
Curious &Collaborative
Progress over
Perfection
Entrepreneur vs. Intrapreneur
Entrepreneur: A person who organizes and manages his/her business,
usually with considerable initiative and risk.
Intrapreneur: A person inside a large organization who takes risks to
solve problems and grow business.
They have entrepreneurial skills blended with managerial skills but operate within the confines of an organization.
• Word was coined in 1976 by Gifford and Elizabeth Pinchot
• Based on their concept of an intra-corporate entrepreneur
• The American Heritage Dictionary made the word mainstream by adding it in 1992
You need a team with the right mindset to drive this
change in a $26B company
FOCUS ON HYPER-ENGAGED CONSUMERS
• Taking a ‘tribal approach’ vs mass market
• If they won’t buy it, nobody will
• Gives us better pulse on what’s important to them, most likely to work
• Allows more agility, flexibility and risk of failure
CONSUMER CENTRIC TRANSACTIONAL LEARNING
• Non-conventional ‘testing’
• Real-time, real-life situations
• Online, offline experiences
• Agility and speed to adapt
AN UNCONVENTIONAL ECOSYSTEM
INTERNAL
EXTERNAL
Procurement
R&DInnovation
Safety
Regulatory
Nutrition
Legal
CorporateAffairs
Policy
FinanceSales
Marketing
Manufacturing
Innovation
Science
NGOs
Incubators
Start-ups
VCs
Culinary
Suppliers
Technology
Influencers
Investment is just the beginning
Access and visibility to our ecosystem
Capabilities to take them to the next level
INVESTING IN STARTUPS
Distribution (DSD and warehouse RTM)
R&D and Quality(State of the Art Tech centers worldwide)
Digital marketing and media (top 15 global advertiser)
Procurement (huge buying power, quality, service, cost efficiency, responsible sourcing)
Manufacturing (factories worldwide, proprietary tech, world-class systems and processes, strong co-man network)
Consumer Insights(market segmentation, social listening, shopper insight, data analytics)
Underpinned by an amazing team of committed leaders and experts who havea passion to lead the future of snacking and empower the world to snack right!
PARTNERING WITH ENTREPRENEURS
OUR FIRST INVESTMENTS
Thank you!