January 13, 2006
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
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
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
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
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
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
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?
August 13, 2004
David Reid: "Don't bet against Tesco"
He would probably be the first to quibble with the characterisation. However, quiet-spoken non-executive Chairman David Reid is generally regarded as one of the brains behind the international success story that is Tesco Plc. Like his board colleague, Lucy Neville-Rolfe, Reid also represents a friendlier, kinder side to Tesco than some of the more hard-ball players around CEO Sir Terry Leahy. This doesn't mean that he is any less ambitious for the company though. Reid's pose with hand on globe at head office in Cheshunt, near London, looks significant for the future: Tesco intends to conquer the world. Rhodesian-born David Reid is quietly proud of Tesco's achievements. The 57-year-old top manager clearly feels that the UK's leading grocer has successfully contained Aldi and Lidl at home, while out-competing global retail titans Carrefour and Wal-Mart in South-East Asia. Significantly, he carefully sidesteps, but does not deny an interest in expanding the business to the US. That said, Reid warns against arrogance. This particularly applies to his younger managers "because they have never known hard times or our earlier difficulties".
July 23, 2004
Feargal Quinn: "Respect, service, value and passion"
Retail legend Senator Feargal Quinn hasn't changed much over the years. He is still affable and remarkably forthright, and, like most Irish, he has the gift of the gab. Regrettably, his days in a management executive role are now over. But anyone who recalls the innovative way he used to run Dublin-based supermarket chain Superquinn will always be interested in hearing his views. His famous book "Crowning the Customer" has gone a long way to popularising them. This delightful read is surely one of the best books ever written on retailing. In its heyday during the 80s and 90s, Superquinn was a Mecca for retailers world-wide. Quinn even forced suppliers to negotiate with him on the shop floor and got shop staff speeding around on roller-skates. When he ran his own show, Feargal Quinn only ever gave interviews in his stores. "This is where I belong; this is where I should be – with my customers."
March 26, 2004
Jan Åström: "We've got a good mix"
Jan Åström, CEO of Stockholm-based SCA (Svenska Cellulosa Aktiebolaget), has that typically Swedish attribute of robust optimism. SCA is among the ten largest papermakers in the world and has an impressively broad product portfolio. The Hygiene Products division accounts for roughly half of group revenues, Packaging for a third and Personal Care (ladies' hygiene, nappies/diapers, incontinence products) for the remaining 15 per cent. At SCA's historic headquarters in elegant Stockholm, Åström (48) sketched out his plan for growth via own label, the global "Tena" brand, and international expansion. While doing so, Jan Åström knows that he can leverage considerable economies of scale with gross 2003 revenues touching €9.4bn. He can also play on a value-added chain that reaches from forestry to packaging.