Kicking off next Tuesday, the Consumer Goods Forum Global Summit is the focal point of the global retail and FMCG calendar. Stephen Wynne-Jones spoke to Ian Cook, outgoing Colgate-Palmolive CEO and Forum co-chair, about what delegates can expect from this year’s event. This article first appeared in ESM Issue 3 2019.
It’s a well-known fact that, in retail, nothing stands still, but the pace at which change is taking place in grocery at present is nothing short of unprecedented.
The Consumer Goods Forum Global Summit, taking place in Vancouver on 11-14 June, is therefore more than an important date on the retail and FMCG calendar – it represents a valuable opportunity to test the pulse of the industry and act as a springboard for truly global initiatives.
This year’s event will feature presentations from some of the industry’s biggest names, with Nestlé chief executive Mark Schneider, L’Oréal’s Jean-Paul Agon, Judith McKenna of Walmart International, Galen Weston of Loblaws and Max Koeune of McCain among those sharing their vision as to how to make the industry a more progressive, more dynamic place.
In addition, a series of seminars will examine topics ranging from the shopping habits of millennials to efforts to combat plastic pollution, to the ‘digital transformation’ of the industry.
Indeed, the ‘digital’ subtext is referenced in the theme of this year’s event – ‘Growth through New Retail’ – which will address how new technologies, changing consumer demands and the growth of digital-first disruptors are shaking the foundations of the retail and CPG space. Vancouver, one of the leading start-up hubs in the world, is an ideal location for what promises to be an insightful three days of debate and discussion.
In addition, ESM: European Supermarket Magazine has once again been confirmed as media partner for the summit and will be reporting live from the event.
Brand Leadership
This year’s summit will also see the appointment of two new co-chairs to the Consumer Goods Forum, following on from the tenure of current co-chairs Olaf Koch of Metro AG and Ian Cook of Colgate-Palmolive, who have presided over one of the busiest periods in the forum’s history.
For Cook, this year is momentous for another reason. At the start of April, he passed on the mantle of president and chief executive of Colgate-Palmolive to Noel Wallace, assuming the role of executive chairman of the business for a 12-month period, to assist with the leadership transition.
Cook first joined Colgate-Palmolive in 1976 and, since becoming chief executive in 2007, has overseen significant growth in the company’s performance. In 2018, worldwide net sales totalled $15.5 billion (€13.73 billion) – an increase of 0.5% on the prior year – while spearheading global sustainability and health awareness initiatives, such as the Colgate ‘Bright Smiles, Bright Futures’ initiative.
As Cook tells ESM, the cornerstone of the Consumer Goods Forum is about building consumer trust and driving positive change – factors that are becoming increasingly important amidst widespread changes to how, why and where we shop.
“One of the things we have really focused on is that the industry can’t do it alone,” Cook says of his time as forum co-chair. “We have worked pretty hard to position the Consumer Goods Forum as a ‘partner of choice’, to drive collaboration, not just for the member organisations, but also across a wide array of stakeholders and constituents.
“We’ve also tried to adopt an approach that increases the urgency in how issues are dealt with. How can we, as an industry, move quicker to keep pace with some of these changes we’re seeing?”
The Role Of Data
At successive Consumer Goods Forum events, the increasing role of data in both the retailer and shopper journey has been ever-present, and Cook believes that the theme of this year’s event, with its focus on ‘new retail’, will address the blurring of the lines between traditional and future strategies for the sector.
“Everybody today talks about omnichannel, and for a consumer goods company, this is really important,” he says. “This idea of people-centricity gets talked about a lot these days, but I do believe that the Consumer Goods Forum members understand that they need to satisfy shopper needs, no matter where or how they buy.
“Today, consumers routinely move across different retail environments, and we have to adapt to that reality and keep our products and brands relevant. That leads to the notion of experience. We have to offer a great experience, exceptional service, greater efficiency and greater transparency – that’s what shoppers have come to expect.
“Ultimately, any change in the industry is going to be driven by the consumer, and data becomes a way to understand how they interact with brands, with retailers, and what they are looking for from the customer experience.”
Defining Disruption
Positive disruption has been another underlying theme of recent Consumer Goods Forum Global Summits, and while much has been made of the industry upstarts – the ‘Ubers’ of this world – nibbling at the heels of established industry players, Cook believes that large brands can also be disruptive, benefitting from the long-standing trust that consumers have in them.
“There is disruption, and there is disruption at scale,” he says. “We all know there are countless energetic, exciting and vibrant small businesses that have performed really well, and there is an assumption that they will not just bite the ankles of the larger companies, but maybe even usurp them. I think that big brands have a role to play in driving disruption, however, particularly as both shoppers and the new generation of employees in companies are looking to develop businesses with purpose, rather than just businesses for economic gain.”
While, historically, brands may not have been as agile – the bigger the supertanker, the more difficult it is to turn – Cook believes that, by embracing technology and also investing in people, even major firms can boast a disruptive mindset.
“A combination of technical capabilities and people can help drive the change in organisations,” he says. “If I take our brand Colgate as an example, our brand purpose is that everybody deserves a future they can smile about. If you bring that into a customer relationship context, that takes you beyond a simple product offering and can give you a platform with a purpose. Rather than something to buy, it becomes something to buy into. That keeps the brand relevant and vibrant for the future.”
Trade Concerns
In recent years, the Consumer Goods Forum Global Summit has found itself aligned with global sociopolitical events, such as the Brexit vote, or last year’s meeting of US President Donald Trump and North Korea’s Kim Jong-un. Allied to this, global concerns over trade wars, increased protectionism, and wealth inequality remain a consistent subtext for those in attendance.
Cook believes that the summit and the forum, in general, have an important role to play in ensuring that brands are well equipped to face a rapidly changing world.
“There’s no question that volatility in our world has increased, and as brand leaders in consumer packaged goods, specifically, you can only control what you can control,” he says. “The beginning and the end of that, in my view, is staying connected with consumers – meeting their needs no matter what is going on around you. Without overgeneralising it, packaged goods have an advantage, in that consumer demand for these sort of items is not going to fluctuate wildly. There’s no evidence that Brexit will see people brush their teeth less, for example.
“It comes back to that simple and fundamental need to keep pace with the consumers that are choosing to purchase your products. Obviously, you need to have plans in place to deal with the issues when they arise – we’ve already moved some inventory into the UK, in case the borders are closed on a hard basis – but I still think that’s secondary to keeping pace with the longer-term view, and focusing on the people that are choosing your products.”
Strong Collaboration
The Consumer Goods Forum’s reputation for fostering collaboration has led to a number of cross-industry initiatives in recent years, and Cook expects this year’s event to prove similar.
“These sort of collaborations are an essential part of our activities,” says Cook, “and it’s not just collaboration between manufacturers and retailers, it’s a broad level of collaboration with local authorities, governments, academia, NGOs. More and more, we are finding that if you want to get things done at scale and with some speed, you need to have a group of people and organisations rowing the boat together because no one organisation is going to get the job done by themselves.”
As to what Cook himself is most looking forward to from this year’s summit, he says that “curiosity is the most important prerequisite” for an event such as this.
“What’s unique about the Consumer Goods Forum is that when those at the summit get inspired, things start to happen, often on a global scale.”
For a full Summit programme, visit www.theconsumergoodsforum.com.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
