May 19, 2006

WPP boss Martin Sorrell talks retailing

Sir Martin Sorrell, CEO of WPP (photo: Tom Campbell)
Martin Sorrell: "Retail brands have to be communicated"
Given his omnipresence in the international media, an interview with WPP boss Sir Martin Sorrell is like déjà vu. Sorrell runs the marketing services group and world's largest advertising company by revenue (2008: €8.3bn) from a headquarters in London's classy Mayfair district. This 64-year-old powerhouse sets himself big goals and even larger bonuses. His current potential pay package is a whopping €70m, but this isn't a soft option for bankers. After investing €22m of his own money, Sorrell only gets the dough if he meets a specific goal: WPP must be the top performer by market capitalisation within a peer group of nine over a five or 10-year period. In between striving for his bonus, he gave his view as an international ad man of mass market retailing & the fmcg industry.
April 28, 2006

Talk with Rémy Cointreau CEO Laborde

Jean-Marie Laborde, CEO Rémy Cointreau (photo: Bert Bostelmann)
Jean-Marie Laborde: "The Chinese love cognac"
Just one glance at the business card of Jean-Marie Laborde betrays where his main interest lies: the front is in English and the reverse in Chinese. In fact, the eyes of the urbane and cosmopolitan CEO of Rémy Cointreau S.A. light up at the mere mention of the Middle Kingdom. Small wonder when business in the People's Republic of China is powering the global growth of this highly-profitable spirits & champagne group (2008/09 revenues: €714m). Warming to his subject with evident relish, Laborde (59) gives an enthusiastic tour d'horizon of the potential he sees in South-East Asia and reveals how the French family company intends to harness it.
February 17, 2006

Talk with Campari CEO Enzo Visone

photo: Campari
Enzo Visone: "We are hunters"
If Enzo Visone, CEO at Gruppo Campari, wants to celebrate a 40 per cent rise in the share price over the last year, he doesn't have far to go. A few strides along the corridor from his office and he can fix himself a drink at the company bar. Should he wish to relax, he can take a stroll outside Milan headquarters. There he can choose from any number of glamorous coffee shops and restaurants in the famous La Galleria Vittorio Emanuele II. And if ever he feels the need for inspiration, he could always visit the opera at nearby La Scala or say a prayer in the cathedral. After all, Enzo Visone has a hard act to follow. He succeeds statesman-like Marco Perelli-Cippo who enjoyed the confidence of the Garavoglia owner-family. Visone intends to pursue the acquisitions trail mapped out by his illustrious predecessor. But will he also be able to grow the spirits group in a disciplined way that will continue to create value for shareholders?
January 13, 2006

gardeur fashion man Hiltrop talks food retail

Klaus Hiltrop, CEO gardeur ag (photo: Ludwig Heimrath)
Klaus Hiltrop: "Customers want a story"
Sometimes it is worth looking over the fence of one's own industry in order to gain cross sector insight. When food retailers meet, all too often it is only to commit intellectual incest. For this reason, we asked Klaus C. Hiltrop, sales & marketing director at Mönchengladbach-based fashion company gardeur ag, how he views food retailing. Hiltrop (57) has been active in the fashion industry since the 1970s and is an eloquent commentator on retailing and brands. The charismatic manager was one of the first to predict the demise of Marks & Spencer when it came to Germany in 1996. He was bitterly disappointed after a visit to their first store on the Schildergasse in Cologne. Klaus Hiltrop is also no friend of the factory or designer outlet centre. He sees this distribution channel as a dangerous dilution to brands. As a brand manager who has always lived by the power of labels, his comments on retail brands are doubly instructive.
October 21, 2005

Talk with Tesco International CEO Philip Clarke

Philip Clarke, Tesco International CEO (photo: Mark Mackenzie)
Philip Clarke: "We don't just plant flags"
Philip Clarke, Asia, Europe & IT director at Tesco Plc, works for a global retailer which arrived relatively late on the international playing field. Since the mid-90s, the UK's leading grocer has more than made up for lost time with multiple entries in eastern Europe and south-east Asia. Last year, international operations in Asia and Europe were added to Phil Clarke's managerial responsibilities. The 45-year-old Tesco veteran first started work for the company in 1974. After college, he rose through the ranks to become a store manager, product buyer, marketer and, as from 1998, a board member responsible for the group's supply chain and IT operations. Recently, this down-to-earth Liverpudlian has exited Taiwan. Could this be the harbinger of a major realignment overseas?
February 4, 2005

Talk with InBev CEO John Brock

John F. Brock, CEO InBev (photo: InBev)
John F. Brock: "The challenge is to be the best with the highest ebitda margin"
John F. Brock, the American CEO of Belgian brewery giant InBev S.A., is never happier than when talking figures. However, more than just bits and bytes flow through the man's blood. He is also a good sport. In order to oblige our photographer, he climbed with astonishing agility up a fire ladder onto the roof in the snow and ice of a Belgian February. Lebensmittel Zeitung had come to company headquarters in beautiful Louvain (Leuwen) in order to find out more about Brock's global strategic priorities post the jumbo-marriage of Interbrew and AmBev. The tankard-sized brewer is such a prolific deal-maker that its name grows longer and longer as the years go by. Let us hope for sprightly John Brock that the problems which arise from this ambitious merger activity are merely orthographical...
January 14, 2005

Talk with Carlsberg CEO Nils Andersen

Nils S. Andersen, CEO Carlsberg (photo: Jerry Bergmann)
Nils Andersen: "I don't see myself as a tough guy"
From his office in the historic brewing tower at the headquarters of Carlsberg Breweries A/S in Copenhagen, CEO Nils S. Andersen can look over the Öresund strait to the coast of nearby Sweden. Perhaps it is not without significance that his room faces east towards the new demand for premium beer in traditionally vodka-loving Russia. This modest, polite man at the helm of the world's fifth-largest brewer can afford to make a long-term commitment to developing premium brands without short-term shareholder pressure. Carlsberg is majority owned by a charitably-minded foundation. The world being as it is, however, this doesn't mean that 47-year-old Nielsen, dubbed "the hatchet" by his critics, doesn't have to take some very tough decisions...
November 26, 2004

Talk with Pinault-Printemps-Redoute CEO

Serge Weinberg, CEO Pinault-Printemps-Redoute (photo: Baxter)
Serge Weinberg: "There is no ideal corporate structure"
You can walk to Serge Weinberg's office from the Printemps flagship department store on Paris's elegant boulevard Haussmann. True to form, the CEO of Pinault-Printemps-Redoute SA (PPR) is an elegant, cosmopolitan Frenchman with great charm. Although he describes himself as a "mild authoritarian", his staff seemed to like and respecte him. PPR, with revenues last year of €24.4bn, clearly wants to increase its exposure to the luxury and fashion business. One only needs to recall its purchase of Gucci. In view of the high margins, this is obviously an enticing proposition. The more PPR moves in this direction, however, the more its current structure as an unwieldy French conglomerate seems out of place.
October 22, 2004

Talk with Kraft Foods CEO Roger Deromedi

Roger Deromedi, CEO Kraft Foods (photo: Peter Rondholz)
Roger Deromedi: "We must accelerate innovation"
Roger Deromedi, CEO of Kraft Foods, Inc., is a pleasant man with a big task on his hands. Deromedi (51) knows that he has to reorganise the world's second-largest food group (2003 revenues: €25.2bn) in order to create a new growth model and to regain market share. In a sense, Deromedi also has to fight history. Kraft Foods is a huge conglomerate resulting out of General Foods, Kraft, Jacobs Suchard and Nabisco. Now, that's a lot to focus. Since 1998, the Northfield/Illinois-based company belongs to US tobacco giant Philip Morris which was renamed Altria Group, Inc. in January last year. Although Kraft Foods managers will never admit it openly, one could well imagine them secretly yearning to free themselves from the yoke of Big Tobacco. The lawyers, however, maintain that this would constitute fraudulent conveyance. Now, don't they call this being between a rock and a hard place?
October 1, 2004

Talk with Imperial Tobacco CEO Gareth Davis

Gareth Davis, Imperial Tobacco Group (photo: Imperial Tobacco)
Gareth Davis: "No one wins a price war"
Primed with films like "The Initiative" and "Thank You for Smoking", one might expect a representative of "Big Tobacco" to be a mixture between the Godfather and Gordon Gekko. Gareth Davis, chief executive of Imperial Tobacco Group Plc (2008 revenues: €22.3bn), had none of these allures. Under the long tenure of Mr Davis (59), Imperial Tobacco has undergone significant expansion — not least through its acquisition of Reemtsma in Germany. The Bristol/UK-based company's major international competitors have also grown, however, taking the industry to what many observers see as the end-game phase of global consolidation. Meanwhile, Big Tobacco has been hit by a wave of litigation in the US and a huge flourish in international contraband. Tough times for a high-margin industry?