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A GLOBAL RANKING OF THE MOST

CHOSEN CONSUMER BRANDS


I S S U E 5 | M AY 20 17

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???

5 YEARS 15,300
OF SHOPPER DECISIONS
(THATS 1,765 BILLION
BRANDS
SHOPPER DECISIONS)

FOREWORD 5 75%
Sir Martin Sorrell
CONTINENTS
Founder and CEO, WPP

Brand Footprint is a GDP COVERAGE


comprehensive study of the
most chosen and fastest-
growing FMCG brands in 43
countries around the world.
Dissecting the key consumer
trends that influence buying
behaviour, the report continues
to offer fresh insight into the

CONTENTS
winning strategies deployed
by the most successful FMCG
brands.
Now in its fifth edition, Brand
Footprint has established 04 2016 in FMCG 25 Brand leaders speak:
itself firmly in Kantar and
06 Fundamentals Natura
WPPs stable of global
intelligence products, helping to growth 26 In focus:
marketers gauge how well 08 The top 50 Health and beauty
their brands have grown in the 28 In focus:
context of the global FMCG 10 How brands grew in
2016 Beverages
market. Drawing on research
from Kantar Worldpanels FOREWORD
12 Fastest-growing 30 In focus:
international experts, Brand Food
by Sir Martin Sorrell
Footprint is a critical navigation FMCG brands
tool for negotiating the 14 Brand leaders speak: 32 In focus:
challenges of the FMCG market, PepsiCo Home care
and an important indicator for
15 Brand leaders speak: 34 Europe at a glance
future brand success.
The report goes beyond data Yili 36 Asia at a glance
to deliver genuine insight into 16 Number one brand 38 Americas at a glance
real peoples spending habits,
providing the true story behind
by market 40 Africa at a glance
brand growth. 18 Connecting people 42 Ingredients of global
In this world of low growth, to products disruption
little inflation and little or no
pricing power, consumer insight
22 The agency view: 46 Glossary
is vital to drive top-line growth WPP
and market sharemaking 47 Explore the data
24 Brand leaders speak:
Brand Footprint an invaluable Mayora Group
resource for clients.

02-03_bf17_welcome_v9.indd 2 02/06/2017 14:41


WELCOME

BRAND FOOTPRINT 2017:


HOW BRANDS GROW IN AN
UNPREDICTABLE WORLD
73% Even in uncertain and challenging times, brand
growth remains rooted in being chosen more
POPULATION times and by more buyers. Agile and responsive
COVERAGE
brands will continue to find ways of attracting
more shoppers and increasing share.
Welcome to this landmark edition of Brand most important and elusive indicator of
Footprint. Now in its fifth edition, the report growth: choice.
continues to be the leading ranking of FMCG
brands, informing the business decisions of From a village in Venezuela to the expanding
marketers, brands and agencies around the metropolis of Beijing, our global teams work
world. tirelessly to identify the key elements that
drive growth, drilling into the data to find
This years Brand Footprint publishes at a meaningful insights for brands of all sizes.
time of unprecedented change. The global With the unpredictability of world events set
Josep Montserrat political and economic landscape shifted to continue, Brand Footprint equips brands
CEO, Kantar dramatically in 2016, creating a with the tools needed to respond to these
Worldpanel very turbulent year in many parts of the uncertainties.
world. Brexit, Trump, the ongoing Syrian
conflicttodays world is anything but Since Brand Footprint first published in 2013,
predictable. The world in which brands we have built up an unrivalled picture of the
operate is no less changeable, with choices consumers make around the world,
developments such as staffless supermarkets dissecting the performance of thousands
and the continued growth of FMCG of brands in order to help them grow, now
e-commerce impacting how and when they and into the future. The report is the largest
can reach consumers. Against this backdrop, of its type, covering 15,300 brands, 200
theres one thing our research over the past categories, 43 countries and five continents,
five years has confirmed. No matter how representing 73% of the global population.
chaotic the world appears to be, the most
agile and adaptive brands continue to find The underlying theme of this years report
ways to grow. is disruption. This not only relates to the
political and economic climate of today, but
Central to this report is the issue of shopper also to the increasing number of disruptor
choice. Understanding the decisions made brands and trends which are upsetting the
at the moment of truth be it in store or status quo.
online is crucial to how we, as insight
experts, can build an accurate picture of Extending beyond the top 50 ranking and
the global FMCG landscape. Those of you analysis of global and local brands, well
who have followed Brand Footprint over the take a look at some of the most pertinent
past five years will have observed the value trends which have played out over the past
of Kantar Worldpanels exclusive Consumer year and discover how manufacturers and
Reach Point metric, which allows us to rank retailers are reacting to the challenges and,
the best global and local brands by that indeed, opportunities they bring.

02-03_bf17_welcome_v9.indd 3 02/06/2017 14:41


2016 IN FMCG

2016 IN FMCG
Global disruptors: driving uncertainty in FMCG
Following a chaotic year, its no surprise structures move towards modern trade. gradual slowdown (-1% since 2015).
that the global FMCG sector weathered The expansion of private label-focused
the storm rather than hit new heights in discounters have put more pressure on There is a huge variation between
2016. This is reflected in FMCG growth brands in a number of territories. countries both in terms of total annual
slowing from 4% last year to 3% this spend on FMCG and the growth rate of
year. Emerging markets show their that spend. There are disruptive forces
mettle at play: high inflation has impacted
Geographically, the emerging markets With FMCG growth in emerging markets countries like Argentina, leading to a
led the charge. The Africa and Middle continuing to outpace that in developed nominal 26% growth. An unrelenting
East regions saw sales rise by 8%, countries, the branded spend share has price war between competing
buoyed by strong performances from for the first time tipped in favour of the supermarkets, meanwhile, drove spend
the likes of Nigeria. While headline former. In fact, given that sales are flat down in the UK by -2%, marking 30
sales grew quickly in Latin America in developed markets, 100% of FMCG straight periods of deflation through to
with year-on-year spend increasing growth in 2016 can be attributed to the end of 2016.
by 9% runaway inflation masked a emerging markets.
more muted reality for consumers and As populations grow and middle classes
brands. We have become accustomed expand in line with rising incomes, the
BRANDED SPEND SHARE
to dampened growth in the US and emerging markets continue to drive
Europe but this year sees Asia joining global growth. Where established
them; sales only increasing by 2%. DEVELOPED EMERGING markets have faltered, weve seen
MARKETS MARKETS brands both local and global
The health and beauty category
suffered the biggest slowdown in
49% 51% gather momentum in some of the less
developed regions.
2016 with just 1% growth. Home care
performed best with 4% growth, Spend per household remains much The value of choice
and the food and beverages sectors greater in developed markets (that For brands to grow, they need to know
achieved 3% growth eachthe same as these countries also generally have which decisions they are targeting and
the global average. smaller households points to a higher how valuable they are. Brand Footprint
disposable income per household helps us understand this around the
One factor challenging the overall member). On average, annual spend world. Brands must relentlessly strive to
value of branded FMCG sales is the per household continued to increase in win each decision, one by one.
development of private label lines, developing regions (+4% year on year),
that become more viable as local retail while developed countries suffered a The average branded decision at the
shelf costs the consumer $1.92, with the

Consumer reach points (CRPs) value of that decision varying widely by


category. Decisions to buy food brands
are generally worth less than health and
beauty products, for example, but are
purchased more frequently.

X X In 2016, the price gap between global


and local brands has narrowed to the
point of disappearing. No longer does
being a global brand automatically
POPULATION PENETRATION OCCASIONS command a price premium. Global
brand owners are having to work harder
NUMBER OF HOUSEHOLDS % OF HOUSEHOLDS NUMBER OF INTERACTIONS
WITH YOUR BRAND ACROSS to convince consumers that a global
IN A COUNTRY BUYING YOUR BRAND
CATEGORIES IN A YEAR choice offers the additional reassurance
of quality and confers prestige.

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2016 IN FMCG

Top recruiters:
households gained
between take-home and out-of-home
channels continue to blur. Where
in 2016 (m)
online has been cannibalising grocery
Shifting political, and general merchandise sales, large
economic and format supermarkets have responded
by repurposing the space, especially
social tides are into cafs or even sushi bars. Starbucks, Dove
dramatically the archetypal on-the-go brand is now 14
significant as a take-home product, and
changing the ranks 18th in the global beverage brands
FMCG landscape list, growing its CRPs by 12% in 2016.

Changing consumer needs: in recent


Dettol
years there has been a continuous 12
shift in power from the retailer to the
consumer. Both manufacturers and
Brand and manufacturer retailers must look beyond traditional
disruption demographics to understand what
Disruption was the only constant the modern shopper requires of them.
Vim
amid the turbulence of 2016 and looks They need to be able to respond to the 12
set to continue for the foreseeable challenge of creating or curating brands
future. Shifting political, economic which can resonate with an increasingly
and social tides, coupled with fast- divergent buyer base, not just in terms
paced technological development, of positioning but also format, pricing Sunsilk/
are changing the FMCG landscape and promotions.
11 Sedal/
dramatically.
Seda
Fundamentals for growth
We have identified three key areas for remain the same
disruption, to which brands will need to Despite the challenges facing todays
adapt in order to meet customer needs. FMCG players, the fundamentals for
brand growth remain constant.
10 Oreo
Political and economic: while largely
beyond their control, these factors The fact that brands are finding ways
can have huge consequences for to grow in difficult circumstances shows
Colgate
10
businesses. Brands need to adjust their there is always headroom for growth.
strategies to suit the resulting changes Even Colgate, the brand with the worlds
in the consumer climate. In todays highest penetration, only reaches 62%
unpredictable world, those that plan for of the global population.
the challenges ahead will be one step Heinz
ahead of the competition. By concentrating on reaching new 9
customers their non-shoppers
Channels: as the consumer journey brands can flourish, successfully
is lubricated by technology, retailers identifying and exploiting new markets.
Rexona
need to ensure they are maximising
online opportunities. By 2025, online
The prize for finding these new
customers is considerablejust one
9
FMCG sales will reach $150 billion percentage point increase in global
globally, almost trebling its share to penetration will win a brand 11 million
9.3%. As a result, manufacturers need additional purchasing households. Brooke
to be available at every touchpoint. 9 Bond
Some are now bypassing traditional Haircare brand Sunsilk, for example,
distribution channels, opting to go recruited 11 million new shoppers
direct to the consumer. This trend, while in 2016mostly from the growing
Pepsi
unlikely to ever fully supplant traditional emerging markets. This success 8
retail, is disruptive because it changes translated into double-digit CRP growth,
the expectations and behaviour of propelling the brand to the global top 10
Source: Kantar Worldpanel 2016 v 2015
shoppers. Meanwhile, the distinctions for the first time.

04-05_bf17_2016fmcg_v9.indd 5 02/06/2017 15:02


FUNDAMENTAL S TO GROW TH

HOW BRANDS KEEP


GROWING: FIVE YEARS
OF BRAND FOOTPRINT
It is now a widely accepted fact that, for a brand to grow, it needs
to find more buyers.
PAUL MURPHY
40% OF BRANDS REACH LESS THAN 5%
This years Brand Footprint shows
that the largest brands in the world
OF A COUNTRYS HOUSEHOLDS
attract the most buyers. Brands that
40
are growing fastest are doing so by
attracting new buyers (penetration)
35 Percentage of brands
rather than just selling more often to
FMCG value
the same buyers (frequency). With 40%
30
of brands reaching less than 5% of a
countrys households, clearly there is
25
room for all brands to grow further.

Brands show predictable 20

patterns of growth
15
This year we have looked at how the
fastest growing brands have performed
10
over the last five years. We wanted to
understand how these fastest growing
5
brands have achieved such sustainable
levels of growthdid they grow
0
penetration every year?
Penetration
Below 5 5 to 10 11 to 20 21 to 40 41 to 60 61 to 80 Over 80
To address this question, we calculated
the median penetration and frequency Source: Kantar Worldpanel 2016
of purchase for the top 10% fastest-
growing brands (2016 v 2012) for four
brand types based on their size in 2012. It is also worth noting how hard it is become an outstanding performer.
for even the fastest-growing brands to
The relationship this produces is the move up a size group in five years. The Brands with over 10% penetration,
same one we find when we compare data suggests that each year brands should be aiming for a 2.5% growth per
competing brands or show the same should be aiming to grow by the same annum (or a 10% total increase over
brand across different countries: growth amount and therefore marketing five years). All the empirical evidence
is caused by increasing both penetration investments should be allocated in a confirms that if you attract these extra
and frequency, but penetration is the corresponding way. buyers, a consummate rise in frequency
most significant metric in explaining will also occur.
why brands are small or large. As a rule of thumb, a brand with low
penetration under 10% per annum, Looked at in percentage terms, these
The growth pattern is remarkably for example should be aiming for figures suggest that growing a larger
predictable and the same for all brands a 1.5% penetration gain per annum brand is easier than growing a smaller
regardless of size. for each of the next four years to one. But in considering the actual

06-07_bf17_fundamentals_v9.indd 6 02/06/2017 15:03


FUNDAMENTAL S TO GROW TH

chances of growth year on year, we see


FASTEST-GROWING BRANDS
the opposite picture across all market
sectors. This is especially true in 2016,
7
where in every market the largest Small brands Mid-size brands Mass market Super brands
brands have only a 40% chance of any 6
growth this year versus last.
5

Frequency per buyer


However, the actual gains that can be
achieved from growing a small brand 4
are considerably smaller than growing
a much larger one. Consequently those 3
manufacturers with a portfolio of
brands within the same category must 2
always protect their largest brands, as
a loss from a big brand is unlikely to be 1
matched by growing one that today has
a small buyer base. 0
0 10 20 30 40 50 60

Targeting growth Penetration


Its clear from our five-year comparison Source: Kantar Worldpanel 2016
data that marketing plans need to be
constructed by setting realistic annual Once categories are properly defined, For global brands especially, this is very
targets for attracting more buyers. they can tell us a lot about a brands difficult to achieve. Our analysis shows
But where are they going to come future growth trajectory. They will that, for global brands, there is an 8%
from? Additionally, what does future reveal how many buyers are going to chance of growing penetration every
marketing activity need to achieve to be required to meet your brands next year over five years. This rises to 10% for
grow buyers at the rate required? quarterly or annual sales target. small brands (under 25 million CRPs)
and falls to just 6% for brands with over
The most important thing for a brand The job of marketing then starts to 150 million reach points.
is to understand the category it is in. become clearerits about investing
Most brands solve various needs, come appropriately and in the right activities Global brands showing growth over
in a range of formats and present us to be able to attract these extra the course of our study, therefore, are
with numerous features. Any one of buyers, not only for this year but for unsurprisingly rare.
these could create a different buyer and every year.
loyalty structure containing different Below, we have profiled those brands
competitors. You need to understand Brands in sustainable growth that have defied the odds to maintain
how your brand is bought and used Over the five years of Brand Footprint, growth throughout the five years of
and which other brands are chosen in there are some brands that have Brand Footprint.
a similar way to properly define the consistently used the levers for growth
category you are competing in. to expand their buyer base.

COLGATE NIVEA VIM DOVE


N
 umber one health and Combined leading brands, Continues to expand and Consistent top recruiter,
beauty brand big innovations and a introduce new formats adding 14 million new
continued investment across the emerging households in 2016
Only brand in any category
in brand awareness markets
to be purchased by more Expands across categories
campaigns
than half of the worlds Connects with consumers and geographies
population Launched the award- by tapping into their needs Its wide portfolio of
winning UV protection more quickly than its
Adapts to local tastes products has opened it up
campaign in Brazil, which competitors
Attracted more global to millions of new buyers
helped children keep safe
shoppers than any other Achieved 10% global CRP around the world
from the sun on the beach
brand over the past five growth in 2016
Rose 10 places in Brazilian
years
ranking last year

06-07_bf17_fundamentals_v9.indd 7 02/06/2017 15:03


BR AND FOOTPRINT 2016 GLOBAL R ANKING TOP 50

RANK
2016 2016
rank change Brand name Manufacturer CRP growth % Penetration % Frequency CRP (m)

0 The Coca-Cola 41.5 6046


1 Company -2 13.2

2 0 Colgate-Palmolive 1 62.4 6.1 4174

3 0 Unilever -1 28.2 8.2 2555

4 0 Nestl -9 28.7 7 2195

5 0 PepsiCo 0 24.4 8.1 2177

6 0 Nestl 0 22.8 8.6 2144

7 0 PepsiCo -2 27.8 6.8 2094

8 0 Indofood -1 4.7 35.5 1824

9 0 Nestl 1 30.5 5.4 1806

10 2 Unilever 12 23.7 6.9 1790

11 -1 Unilever -2 27.7 5.7 1728

12 -1 Unilever 2 36.3 4.2 1665

13 0 Unilever 1 32.9 4.3 1543

14 2 Unilever 6 10.7 11.2 1319

15 -1 Procter & Gamble -9 13.7 8.5 1284

16 1 Danone 3 15.6 7.1 1219

17 2 Colgate-Palmolive 0 13.5 7.5 1115

18 2 Unilever 4 13.2 7.5 1092

19 -4 Procter & Gamble -15 21.9 4.4 1071

20 1 The Coca-Cola 24.3 3.8 1009


Company 0

21 -3 Procter & Gamble -13 21.5 4.2 988

22 1 The Kraft-Heinz 18.2 4.8 954


Company 2

23 -1 The Kraft-Heinz 14.5 6 953


Company -1

24 1 Procter & Gamble 2 23 3.7 931

25 1 Mondelz 24 3.4 913


International -2

See page 4 for CRP definition Sources: Kantar Worldpanel, IRI (USA), IMRB (Sri Lanka, Bangladesh), GfK (Russia, Turkey, Italy, Poland, Germany) 2016

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BR AND FOOTPRINT 2016 GLOBAL R ANKING TOP 50

2016 2016
rank change Brand name Manufacturer CRP growth % Penetration % Frequency CRP (m)

26 -2 Ajinomoto -3 6.4 12.7 902

27 2 Unilever 3 6.6 12.3 894

28 4 Unilever 6 20.2 4 888

29 5 Unilever 10 15 5.4 884

30 -2 Nestl 0 7.3 10.8 866

0 Mondelz 2 10.5 7.4 854


31 International

32 -5 Grupo Bimbo -2 5.9 13.2 854

-3 The Coca-Cola 0 20.7 3.7 851


33 Company

34 4 Unilever 7 9.6 7.8 823

35 0 Beiersdorf 2 22.5 3.3 812

36 -3 PepsiCo 0 14.8 4.9 806

37 -1 PepsiCo -2 15.4 4.6 771

38 2 McCormick & 2 13.4 5.2 769


Company

39 0 Ferrero 1 13.2 5.3 762

40 1 PepsiCo 2 12.2 5.6 756

41 -4 Danone -3 12 5.6 746

42 0 Unilever 1 18.6 3.5 707

43 -1 Procter & Gamble -2 12.1 5.2 688

44 0 The Hershey 2 10.7 5.7 678


Company

45 1 Yakult 3 8.4 7.2 663

46 2 Barilla Group 5 13.4 4.5 656

47 3 Reckitt Benckiser 13 18.1 3.3


Group 653

48 -3 Unilever 0 14.8 4 649

49 -2 Del Monte Foods 2 12.3 4.8 648

50 -1 Dr. Oetker 0 10.7 5.2 613

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HOW BR ANDS GRE W IN 2016

NEW NEEDS
Establishing a new category is the ultimate
lever for growth. Brands that identify new
needs and create effective and efficient
ways to meet them can dominate that
space for years to come.

Yakult-owned brand Haru Vegetables


(South Korea) has created facial masks
made from fruit and vegetables. The mask
sheets are made for all skin types, and come
in four varieties: whitening, moisturising,
anti-aging and elasticity. Each contains
HOW TO BE CHOSEN extracts from multiple fruits and vegetables
that are high in essential vitamins.
Luis Simoes
Nescaf having made the in-home
Global chief strategy officer, coffee experience more accessible with its
Kantar Worldpanel Dulce Gusto coffee machines and pods
has now created a new, convenient make-
A brands growth follows a predictable at-home-carry-out category with the Azera
pattern. It is about increasing the number Coffee to Go brand.
of people who choose to buy it: the brands
penetration. We observe this to be true in
every category, country, demographic and
retailer.

The job of the marketer is to increase


the brands propensity and influence on
every single choice that the buyer makes
whether they are standing at the shelf or
populating their online basket.

Advertising plays a vital role as it creates


empires in the mind an identity
shoppers can recognise which reduces MORE MOMENTS
price sensitivity and paves the way for
premiumisation. Everyone buys a repertoire of convenience and fun. It published
brands, which means that at easy-to-follow recipes on websites
But there is more to the issue of choice every category occasion there that used its own products, placed
than advertising. Close to 60% of decisions is chance that a person might products near the fresh food
are made at the point of purchase1, where purchase yours. To increase this sections in store, and held price
distribution, assortment, visibility and chance, brands must ensure they promotions to drive sales. This
promotions combine. Even new products, are available and relevant in as increased Knorrs penetration and
which positively contribute to category many moments of consumption frequencyjumping 10 places
growth in 45% of cases2, are discovered at as possible. They can do this by to become Taiwans 25th most
the shelf. creating new formats or flavours chosen FMCG brand.
that are consumable in a broader
While we believe growth ambitions should range of occasions. In Argentina, rice brand Gallo
be translated into incremental penetration partnered with Molinos to create
targets, Brand Footprint also focuses on Marketing campaigns that help healthy alternative snacks.
understanding the strategic levers behind connect consumption occasions Hijacking the healthy eating trend,
success. with the brand will aid the success the duo launched sweet and salty
of these innovations. versions of their rice snacks a
Here, we examine how they have influenced white chocolate bar and cheese
growth for brands this year. In Taiwan, Knorr increased flavoured crackers with only 99
consumer interest for home- calories per item. These premium
1 Source: PowerPurchase cooking through promotional snacks were consumed by 11% of
2 Source: Kantar Worldpanel Innovation Report 2017 marketing campaigns focused on Argentinean households last year.

10

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HOW BR ANDS GRE W IN 2016

MORE CATEGORIES
Stretching brands across categories can
attract buyers whose needs are not met
by any of the existing brands functions.

Following Downys success with its


Unstopables in-wash scent booster,
launched in 2014, and 2015s Fresh Protect
a range of deodorants for clothes P&G
expanded its product line further in 2016

LEVERS
to introduce a suite of air freshening
products. These included air and fabric
sprays, candles, and plug-in scented oil

FOR
warmers.

GROWTH
In the UK, McVities expanded into the
sharing bags confectionary category with
its Digestives Nibbles range. Targeting
a younger audience and the emerging
evening sharing treat occasion, the
brand hopes to double the category
growth by 2020.

MORE PRESENCE
Many brands are increasing the number
of geographical locations in which a
shopper can both see and choose the
brand. This often requires adapting
product ranges to suit local tastes.

Last year, Heinz began expanding


its Tomato Ketchup product in China.
Having previously focused on affluent
Chinese regions like the East, South
and top-tier cities, Heinz expanded its
MORE TARGETS business to the North and the West. It
developed several pack formats to appeal
To attract new buyers who do not In South Korea, Chung Jung One to these markets and its low-cost pouch
currently purchase the brand or released a range of Anju (Korean helped to drive both category and brand
category, brands can create new foods which are customarily penetration.
variants which appeal to a broader consumed with alcohol) packed
range of individual requirements. in smaller sizes to target the In 2016, Dove introduced its Baby
increasing number of single-member Dove range to India alongside a study
Ben & Jerrys is renowned for households, who enjoy drinking at that found 90% of Indian mothers feel
its range of indulgent ice cream home. pressured to be a perfect parent. At
flavours. In 2016, the brand teamed a high-profile panel event, TV stars,
up with vegan-certified bakeries to psychologists and paediatricians
create brownies and cookies for its discussed the research. By sharing their
famous chunks, to be included in a personal experiences, panellists spoke
new almond milk ice cream formula. directly to mothers and Baby Dove spoke
The result was the release of four authentically to a new audience.
new flavours suitable for vegans and
health-conscious Americas.

11

10-11_bf17_Leversforgrowth_v9.indd 11 02/06/2017 15:06


FASTEST-GROWING FMCG BR ANDS

Starbucks:
home-grown success

FASTEST-
The famous coffee shop, ubiquitous on
high streets and in shopping districts for
many decades, has made the transition

GROWING
to bricks and clicks. Its premium
credentials in the out of home market
have translated well to the grocery store

FMCG
shelf. Indeed Starbucks FMCG products
now hold 18th place in the Brand
Footprint beverage ranking, growing

BRANDS
their CRPs by 12% in 2016.

Kantar Worldpanel data shows that


both iced and hot coffee segments
are growing for Starbucks in-home. By
making its K-Cup capsules compatible
with Nespresso machines, Starbucks
has opened a huge market in its US
home and beyondit is now present in
12 of Brand Footprints country rankings;
showing exceptional growth in eight of
them.
Each year, Brand Footprint seeks to
acknowledge sustainable growth:
Starbucks is also investing in its ready-
to-drink portfolio, partnering with
identifying campaigns, innovations
European dairy manufacturer Arla and and strategies that have contributed
Japanese drinks company Suntory to
produce and distribute its bottled drinks
to a brands rise in the ranking,
across the world, including its famed increased penetration or a gain in
Frappuccino selection. CRPsmany times all three.

Hersheys: pulling all the levers

Americas favourite chocolate, pull on the heartstrings, highlighting market with Reeses Rounds. Back in
Hersheys, has grown its global CRPs the brands message of bringing people the US, in April, it bought barkTHINS, a
by 2% over the past year, cementing together and celebrating lifes special high-quality snacking chocolate with
its place as the 18th most chosen food momentsboth big and small. a strong commitment to using simple
brand. It grew in markets around the and healthy ingredients, moving into the
world during 2016 with its simple, human In Brazil, as part of its five-year plan premium snack space for the first time.
advertising campaigns, improved to become the countrys third-biggest
distribution and shrewd innovations. chocolate brand, Hersheys launched
Chocotubscrunchy cookies with
Its most popular variant, Kisses, which chocolate dip, an on-the-go product in
contributes up to 70% of its overall a new type of packaging which is easier
sales, had long dominated the holiday to carry, lighter and more sustainable.
occasions in the confectionery market.
But, with seasonal business in the US But it was its openness to partnerships
stagnating household penetration and corporate acquisitions that laid the
declining one point for each of the groundwork for Hersheys sustained
last four years Hersheys spotted an success in 2016. In October, as part
opportunity for growth. Its Say it with of a licensing deal with Lightbody
a Kiss campaign used real stories to Ventures, it broke into the UK biscuit

12

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FASTEST-GROWING FMCG BR ANDS

Vim: a product for all occasions Top 10 global risers


Cleaning brand Vim is already a Despite its focus on innovation, the
household name across the globe but brand has not neglected its ethical
showed extraordinary CRP growth for credentials. In some markets, for
2016, up 10% on the previous year. example, it has adopted Unilevers
Sustainable Living pledge. 13 Dettol
In Argentina, its Lavandinas Gel variant
has overtaken its liquid format, entering In Sri Lanka, meanwhile, where
400,000 new households in 2016, the brand is bought by 93% of all
moving seven places up the home care households, the brand partnered with
ranking. the Ministry of Women and Child Affairs
to launch Vim DiviyataDisnean
The gel a concentrated product initiative seeking to economically
that seeps into the sponge, providing empower Sri Lankan women in pursuit 12 Sunsilk/
twice the cleaning power achieved of a more balanced entrepreneurial Sedal/Seda
the greatest growth in penetration in workforce.
homes with young housewives. With a
disinfectant message remaining at its
core, the versatility of Vims bleach gel
means it can function as a replacement
for other cleaners while maintaining the
10 Vim
practicality of cleaning smaller, hard-to-
reach surfaces.

For Indian consumers, the Vim Bar is


still the preferred format, but liquid
variants are gaining momentum. This
is mainly driven by urban households 7 Brooke Bond
where it has reached 8% penetration,
growing by 12% year on year.

Pepsodent: keeping clean 6 Sunlight

Oral care has an advantage over other in the Indonesian ranking, where
FMCG categoriesits very products Pepsodent extended the Brush Day and
benefit from an in-built narrative of Night strategy with Bedtime Stories. 6 Rexona
health and wellbeing. Brands in other Acting on research which showed that
categories which openly encourage Indonesians brush only in the morning,
customers to consume their product Pepsodent seized the opportunity to
more frequently could be accused of educate consumers on the benefits of
hard-nosed commercialism. With oral night brushing. 5 Barilla
care, it works.
Working with a famous Indonesian
Climbing another place in the ranking to storyteller to retell traditional stories
4 Pepsodent
become the 7th most chosen health and using mobile, Pepsodent reminded
beauty brand in the world, Pepsodent parents and kids to brush at night and
toothpaste has joined fellow Unilever take better care of their oral health.
brands to promote the frequency of
3 Danone
brushing with a global campaign In Bangladesh, Pepsodent sent its
Brush Day and Night encouraging Dentibus around the country to carry
children to clean their teeth twice a day, out free dental checkups and provide
every day. expert advice of good oral care. Such is Source: Kantar Surf
3 Worldpanel 2016 CRP in millions
the hype it causes, the Dentibus usually
The brand has shown double-digit spends an entire day in an area so
CRP growth and moved up four places everyone can benefit from the visit. Source: Kantar Worldpanel 2016 CRP % growth

13

12-13_bf17_fgdbrands_v9.indd 13 02/06/2017 15:08


BR AND LE ADERS SPE AK

PEPSICO
Eugene Willemsen, executive vice-president, global categories and
franchise management
PepsiCo is one of the worlds leading for you brand to launch variants like side and searching for true value on
food and beverage companies with over Lays Oven Baked, which now sit on the other. Brands that are not sharply
$63 billion in net revenue in 2016 and a our Better for You platform. Other defined are really struggling in this
global portfolio of diverse and beloved examples include the launch of Pure environment.
brands. It has a complementary food Leaf our fresh brewed tea as well as
and beverage portfolio that enables it LIFEWTR, IZZE and Lemon Lemon within Clearly, our industry will continue to
to provide more choices for customers, our beverage portfolio; complemented fundamentally change. Historical
and drives lower costs, productivity by the acquisition of KeVita. advantages will disappear or become
enhancements and new capabilities. just hygiene factors. Barriers to entry
PepsiCos products are sold in more will break downboth in terms of how
than 200 countries and territories brands can engage consumers but also
around the world. new manufacturing solutions which are
available to smaller players.
What makes PepsiCo unique?
Without a doubt, our Performance The key advantage will be the ability to
with Purpose vision. Delivering the best know your consumers better than the
performance for our business, while competition and turn that insight into
making sure that everything we do, we action in a smarter, faster way.
do it with purpose.
Which brands have you
Firstly, its about portfolio admired in 2016?
transformation: creating balance Airbnbits a powerful reminder of what
between our key propositions: Fun for What is your view on how disruption can do to a category. Thats
you, Good for You and Better for FMCG brands grow? something all of us need to be aware of:
You. But another core component is Everything starts with a deep someone, somewhere is thinking about
environmental sustainability; as is talent understanding of the consumer, not how they can disrupt your industry. And
sustainability. Thats one of the things just as an audience but as peoplewith it compels businesses like ours to try
that makes me and many others very all their complexities, irrationalities different things: test different models of
proud to work for PepsiCo. and nuances. We regularly observe, for engagement, different channel options,
example, that people do not necessarily innovate, incubate.
Whats your view on behave the way they think or say they
PepsiCos biggest opportunity will. So, we try to understand all the How has consumer behaviour
for growth? beliefs and motivations buried deep surprised you the most over
The growing demand for healthier, in their psyche. Marketers need to the past five years?
more nutritious options that are also think within the context of lifestyles, Technology has changed consumer
still enjoyable. This is the sweet spot not supermarket shelves. On that behaviour in ways that would have been
in which PepsiCo is uniquely placed to foundation, they can create brands unimaginable a few years ago. But
thrive. Today about 45% of our revenue with a purpose that respond to the theres also an increased expectation
is already derived from what we call our constantly-evolving drivers of choice. from consumers: people dont want to
guilt free propositions. compromise between naturalness, taste
How do you think 2016 will be and goodnessnow, they want it all.
Our continued commitment to portfolio remembered in FMCG?
transformation is crucial. Our innovation 2016 saw purchase motivations become
strategy is focused on this: leveraging starker. People looking for premium and
brands like Lays traditionally a fun super premium propositions on the one

14

14-15_bf17_PepsiYili_v9.indd 14 05/06/2017 12:25


BR AND LE ADERS SPE AK

YILI GROUP
Mr. Pan Gang, chairman and president

What makes Yili so unique? of production capacity and capital.


YILI HAS BEEN CHINAS
We believe that businesses are as For Yili, this is not just about using the
NUMBER ONE BRAND FOR
individual as people. It is mindset and worlds best quality natural resources;
character that make people unique. we have also established our global
FIVE YEARS
Similarly, it is our culture and strategy smart chain, allowing us access to
that shape Yilis uniqueness. From talent and intellectual resources from
1
our corporate belief Yili represents all corners of the world via big data
2
3
quality, our vision becoming the most and smart manufacturing. Together,
trusted health-food provider around the these initiatives are reshaping the global
world to our development strategy of distribution of labour and influencing
innovation throughout the whole supply the global industrial chain R&D,
chain and global networking. Among production and marketing thereby growth. Currently, the average milk-
these, corporate strategy is the most building Chinese brands through smart drinking amount of Chinese is only one
important. global production. third of the global average and a half
of the average in Asia average. As long
At present, a slew of Chinese companies as we keep innovating and provide
are implementing the strategy of The more innovative products and services
Belt and Road, evidenced by the export via our global smart chain, seize the
opportunity of consumption upgrade,
we will have plenty of growth space.
Yili is Chinas largest dairy
producer, priding itself on How is the FMCG industry
creating healthy and nutritious evolving?
products for its customers. Chinese brands are facing a rare
Continuing to lead in Asian dairy opportunity for development. This year,
sectors, Yili is renowned for its the Chinese government designated
outward-looking approach to 10th of May as Chinese Brand Day,
business. highlighting the importance of building
Chinese brands. Within the FMCG
Among other initiatives, it Whats your view on sector, it is very similar. But, in order
has opened its first major Yilis biggest opportunity to seize this opportunity for growth,
overseas dairy factory in New for growth? we must also be aware that with rapid
Zealand, entered into strategic The biggest opportunity for Yili is globalisation, the boundary of global
partnership with Italian dairy upgrading of consumption. Recent and local brands is diminishing. Thats
giant Sterilgarda Alimenti S.p.A, years have seen profound changes why Yili has established the global
founded the Yili European R&D in the restructuring of the Chinese smart chain to offer unique services
Center in the Netherlands the economy: an upgrade of industry to our customers which are rooted in
first overseas R&D center of structure, demand structure, a balance global wisdom.
the Chinese dairy sector and of urban and rural development as
carried out comprehensive well as increasing of income. As a
cooperation with enterprises, result, there has been an explosion in
universities and research consumer appetite for more premium
institutes in the United States in productspeople across the country
multiple fields. are trading up. This gives dairy industry
motivation and support for continuous

15

14-15_bf17_PepsiYili_v9.indd 15 05/06/2017 12:25


NUMBER ONE BR AND BY MARKE T

US Portugal Ireland UK
1082 33 36 574

Mexico
1471

Central America
293

Colombia
162

Venezuela
76

Ecuador
78

Peru
366

Bolivia
164

Argentina
227

Chile
125

Brazil
507

Greece
19
Consumer Reach Points (millions) Turkey
See page 47 for coverage 153
Sources: Kantar Worldpanel, IRI (USA), IMRB (Sri Lanka, Bangladesh),
GfK (Russia, Turkey, Italy, Poland, Germany) 2016

NUMBER ONE BRAND BY MARKET


Despite the long term forces of UK, consumers are attracted by brand Food has the highest incidence of local
globalisation, local brands continue provenance and will pay a premium for brands as tastes tend to be driven by
to thrive; taking the top spot in over home-grown products. native cultures. The health and beauty
half of the markets studied by Brand category boasts the highest level of
Footprint. Increasing numbers of buyers Local brands now account for 72% of global brandsnot only does it have
are turning to local brands, and for a FMCG value growth, increasing in value fewer private label competitors, emerging
variety of reasons. In some cases, they by $12 billion in 2016, in comparison to market consumers place a higher value
can represent a more affordable option $5 billion for global brands. In terms of on global reputation and tend to trust
in struggling economies like Brazil and spend: global brands are growing at them more. Only for beverages is local
Argentina. Meanwhile in developed 2.6% while local brands are growing brand growth being outpaced by global
markets such as Germany and the at 3.9%. brand performance.

16

16-17_bf17_no1brand_v9.indd 16 02/06/2017 15:11


NUMBER ONE BR AND BY MARKE T

Spain France Germany Poland Italy


140 223 314 249 223

Russia
489

Mainland China
1141

South Korea
90

Taiwan
58

Vietnam
51

Philippines
851

Thailand
327

Malaysia
38

Indonesia
1222

Nigeria Saudi Arabia Bangladesh


India 237
545 666 4273

Sri Lanka
Ghana 103
Kenya Egypt
81 517
67

The power of local isnt a new concept, saw Noynoy increase its CRPs by 3% is the only brand in the top five showing
but the shift in political and cultural in 2016impressive for a top-ranking growth in the countrys ranking
mood in 2016 has led to a greater sense brand. (+1.3% CRP).
of national identity.
Even global brands cannot ignore the Global brands, with their marketing
Dairy brand Noynoy, for example, holds commercial benefits of flexing their experience and big budgets, will always
the premier ranking in Greece despite portfolio to fit different cultures. Nestles be with us. But by showing agility in
long being owned by a pan-European Maggi originated in Switzerland, but its distribution, innovation and advertising,
dairy cooperative. Its recent decision grasp of local tastes has seen it hold the local players can provide increasingly
to focus on yoghurt and cheese, number one spot in Malaysia every year compelling reasons to be chosen.
congruent with the Greek national diet, for the last five yearsin 2016, it

17

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CONNEC TING PEOPLE TO PRODUC TS

CONNECTING PEOPLE
TO PRODUCTS
Visibility and accessibility are crucial to brand choice. Can I get it?
and Can I see it? are two of the variables which often determine
whether a brand makes it into the shopping basket.
STPHANE ROGER proliferation or dual-siting across the cheaper alternative with limited stock,
In the old world, brand choice was store will improve the probability of holding just 5.2% value share. In 2016,
governed by the retailer-manufacturer being chosen. it grew to 7.8%. This is a continuous
relationship. Increasing the accessibility trend, even in healthy economies, and
of the brand to as many people This new retail environment has two is showing no signs of slowing.
as possible meant venturing into important human drivers: value and
new geographies, ensuring that convenience. The former has manifested But, discounters have begun to diverge
your products featured in as many in the unstoppable increase in discount in terms of strategy. Some, for example
deployment channels as possible. It retail and private label brands; the latter in Europe and the United States, are
involved deal-making with retailers, through the rise of proximity retailing, premiumising: marrying an improved
negotiating more of your products on direct to consumer and e-commerce. shopping experience with better private
more shelves in more stores across the labels and aggressive price positioning.
market. Value for money This is supported by extensive media
Premium private labels; investment to change perceptions of
This is still, of course, true. Being more deluxe discounters the quality of fresh products in their
visible because of increased product Ten years ago, discounters were simply a stores.

18

18-21_bf17_connecting people_v9.indd 18 02/06/2017 15:12


CONNEC TING PEOPLE TO PRODUC TS

Mini markets are also appearing across The first offers Chinese consumers
DISCOUNTER VALUE SHARE some Asian markets. Sized somewhere access to the American membership-
between convenience stores and only wholesale chain, Sams Club,
supermarkets, their range is limited but bringing together Sams Clubs
BRAZIL UK

2% 14%
their price is extremely competitive. premium, quality products with
JD.coms same- and next-day delivery
Even in Vietnam, known until recently as service. The second is a two-hour fresh
a heartland of traditional trade, there food delivery service for Walmart
has been a boom in mini-store openings customers in selected urban areas. The
DISCOUNTER PENETRATION looking to satisfy this increased demand third taps into the populations appetite
for proximity. Over a third of Vietnamese for imported goods: the Walmart Global
households made a take-home FMCG store connects more items from its
BRAZIL UK
purchase in a mini-store in 2016, visiting assortment in other markets to China,
19% 86% them on average 10 times per annum. which JDs last-mile logistics network will
deliver to customers through its speedy
Source: Kantar Worldpanel 2016 Big format stores are in decline home delivery service.
Big formats, meanwhile, are struggling
In Latin America, value for money is they simply do not answer these Manufacturers must respond to
still the primary driver for consumers new shopper needs. Tesco initially this trend wisely. Defining the right
who are more attracted to low prices renowned for its stack em high, assortment in a smaller or, in the
than ever. The shopping experience sell em low proposition has found case of e-commerce, larger retail
itself may be poorer, but simply being success outside of the UK mainly with environment is crucial to remaining
in the store frames shoppers in bargain its Express and Metro formats, which accessible, visible and competitive.
mode, and their behaviour changes. work for a country like Thailand because
No longer focused around quality or they speak to universal themes of The technology jump
attractiveness, people are happy to hunt convenience, accessibility and value. Developments in technology are making
for the right product at the right price, significant differences to when, where
because the benefit lies in cost-saving. Walmart has developed an interesting and how we shop.
strategy to dodge this decline. By
In Colombia, 2016 was certainly the partnering with JD.com in China, it The launch of Amazons Go store last
year for this channel. Discounters are launched a range of e-store solutions: year is the sort of development that
gaining more and more space, growing could fundamentally disrupt the in-store
considerably in penetration and value. shopping experience. Its Just Walk
Out technology removes the need for
Convenience assistants or checkouts by charging
Proximity retailing Defining the items automatically to the users
Proximity retail is growing exponentially Amazon account as they are picked
worldwide because it facilitates the right assortment from the shelf.
convenience factorin 2016 it had a in a smaller or
6% share of the global retail market. In
China, 80% of shoppers choose a store in the case of SMARTPHONE OWNERSHIP
close to home or on their commute e-commerce
because it is easier. In the UK, micro
formats such as Tesco Express and broader retail COLOMBIA SRI LANKA
Little Waitrose are thriving. Similarly, in
France, Carrefour Express and Carrefour
environment 83% 25%
City have joined foreign competitors is crucial to
in this micro-move. In Mexico, Oxxo remaining
is a successful micro retailer with one
store opening per day. In Colombia, accessible, visible INTERNET PENETRATION
neighbourhood shops one of the and therefore
main channels in the country are still
thriving. In the quest to optimise their competitive BANGLADESH CHINA
budget, households combine traditional
channels with emerging ones. 18% 86%
Source: Kantar Worldpanel IMRB 2016

19

18-21_bf17_connecting people_v9.indd 19 02/06/2017 15:12


CONNEC TING PEOPLE TO PRODUC TS

E-commerce marks another significant


change to how people shop, with a IN 2025, ONLINE FMCG WILL HAVE GROWN FROM 4% TO 9%
26% increase in value globally last year. AND WILL BE WORTH $150BN (USD) GLOBALLY
Economic certainty is not necessarily a
strong indicator of where e-commerce
will thrive. In developing markets such as
15 12
India and Africa, technology is evolving 25
faster with many going online first by
smartphone.

In China, m-commerce plays a huge


role, not only for FMCG, but for all
consumer goods players80% of
all online sales are made by mobile.
Shoppers can now pay in-app or even SOUTH KOREA $7BN MAINLAND CHINA $36BN UK $14BN
using eye-recognition technology.
The Taobao platform has a camera
device within the app. When people 11 8 9
see a product they like, they take a
picture and a few seconds after, will be
presented with a list of products ready
to buy.

Making e-commerce work


In China, e-commerce retailers, such
as Tmall and JD.com, have thrived in FRANCE $11BN TAIWAN $1BN USA $75BN
the last few years as they expand their
category availability and product range
to drive traffic. In the past 12 months, 5 4 3
the e-commerce channel has attracted
55% of urban families to buy FMCG,
with growth substantially outpacing
all brick-and-mortar channels. Each
online sales event, with Singles Day
being the highlight, adds a step change
to e-commerce penetration. Here,
with modern trade channels such
as hypermarkets and supermarkets
NETHERLANDS $1.3BN GERMANY $6BN LATAM $4.5BN
projecting limited growth, all FMCG
companies are trying to increase their strategies not only to help consumers up with delivery service Ocado to
buyers through online stores. make more informed decisions, but promise next-day delivery on all items
also to add value throughout the entire purchased.
Conversely, in Latin America, Kantar shopping experiencewherever and
Worldpanel forecasts e-commerce to whenever that happens to be. Social commerce
represent just 3% of the market by 2025. Customer journeys are important,
The main development barrier here is In Londons Oxford Street shopping particularly when attempting to court
cultural: people like to see and touch the district, fashion magazine Marie Claire impulse purchases.
tems before purchasing and respect has partnered with online beauty
guidance from salespeople. retailer Fabled to open a luxury store. In Asia, social commerce is
Complete with digital screens, each approached differently. Platforms such
O2O (online-to-offline) is the new retail makeup counter also features The as WeChat and Weibo arent media-
reality as many consumers use digital Edit, a selection of products curated by based companies like Facebook and
devices to complete their shopping Marie Claires beauty editors. Twitter. Their model is founded in a
experience. To succeed in the new retail cultural comfort with brands as part of
landscape, manufacturers need to use With informed assistants and digitally conversation, rather than interruptions
a combination of online and offline integrated commerce, it has teamed to it.

20

18-21_bf17_connecting people_v9.indd 20 02/06/2017 15:12


CONNEC TING PEOPLE TO PRODUC TS

E-COMMERCE VALUE SHARE


The new retail environment has two
COLOMBIA SOUTH KOREA
important human drivers: value and
0.1% 19.7% convenience. The former has
manifested in the unstoppable increase
of discount retail and private label
E-COMMERCE TOTAL VALUE
brands; the latter through the rise of
proximity retailing, direct to consumer
COLOMBIA SOUTH KOREA and e-commerce
$9M $4.5BN Stphane Roger, Kantar Worldpanel

Source: Kantar Worldpanel 2016


become more of a marketing channel designer branded fragrances for a
Most Asian consumers make decisions than a logistical tool. Beauty experts will monthly fee and have them delivered
on recommendations and advocacy. perform makeovers and advise on the directly to their door. Its easy to see why
products consumers should choose to brands are intrigued about this new trial
This requires a very different approach subscribe to, all delivered by post each model.
to marketing and how you tell the story week or in some cases daily.
of your brand. If brands have a good Similarly Nestle ReadyFresh in the
story, social media will help it travel at But what about categories once the United States is a water and beverage
no cost. Its also a warning sign preserve of modern trade? Unilevers delivery service offering a wide range
for Western brands moving East. acquisition of the Dollar Shave Club in of refreshing drinks, dispensers, and
Particularly on mobile, people dont 2016 proves how this channel can quickly accessories. Shoppers select when and
trust marketing stimulus or push- bare its teeth. This has rung alarm bells how frequently they would like their
advertising tactics anymore. for many manufacturers specialising in order and the rest is taken care of, direct
necessity goods (like razors, toilet paper to the doorstep.
If youre using push advertising through or feminine care), particularly those in
mobile channels or through online developed markets with efficient and Retailers boundaries are blurring with
channels, people are less likely to buy, inexpensive infrastructure. no clear delineation by location or
certainly impulsively. But what we channel. In this environment, shoppers
discovered was that social media related For others, it is an open opportunity. are demanding more, whether this be
advertising is statistically more likely to As with the beauty boxes in Asia, this is personalisation, real time response,
increase impulse purchases. where marketing and distribution meet, simplicity or theatre.
Dr Sarah Xiao, senior lecturer in to considerable commercial benefit.
marketing at Durham Business School Both manufacturers and retailers need
Scentbird offers a simple and fun way to understand the emerging needs of
Subscription markets: to try new fragrances every month. their consumers and respond in order to
direct to consumer Consumers choose a selection of stay relevant.
Perhaps the biggest opportunity for
brands is the emergence of direct-to-
consumer initiatives.
Sector disruptors
For beauty in Asia, the door-to-door
channel has long reigned. In China,
Korea, and Japan most of the
developed beauty markets it has
remained steady.

Now, with the rise of subscription AMAZON ALEXA AMAZON PRIME AMAZON GO
markets, door-to-door has evolved to

21

18-21_bf17_connecting people_v9.indd 21 02/06/2017 15:12


SOCIAL PURPOSE: THE AGENCY VIE W

WPP
Alina Kessel, president and CEO of Team P&G
How can social purpose impact How have you seen social There are new champions every
a brands bottom line? purpose manifest most day. Increasing amounts of students
To be truly effective, a brands purpose effectively across the (including my son and his university
should have a clear relevance to the marketing spectrum? friends) are choosing the search engine,
functional attributes of the product, the The litmus test for a brands social Ecosia over Google, and encouraging
desired target audience and the issue or purpose is that it works naturally across their parents to change too! Why?
theme creatively explored. the entire spectrum of business activities Because Ecosias defining purpose is to
operational & commercial as well as create a better world through planting
Look at P&Gs Always #LikeAGirl marketing. trees with the ad revenues it attracts.
campaign that empowers girls and A cause that works on a global level,
fights gender bias at an age when they P&Gs commitment to gender equality resonates with a millennial generation
are most vulnerable to confidence loss comes to life in their advertising, and which is truly measurableEcosia
or, more recently, Heinekens Open Your unrestricted to one brand in the P&G proudly communicates that every seven
World social experiment that promotes portfolio and certainly not gender seconds a tree is planted through their
openness and attempts to break specific. ad revenues, adding up to over 7 million
through discrimination and the echo to date.
chambers that divide us by encouraging
people of opposing beliefs to share a Can a mass-market brands
beer. social stance ever alienate
its existing or potential
Great purpose-led brands and buyer base?
campaigns transcend geographies and Great brands take risks. They have
cultural barriers to resonate well beyond a point of view. They pulsate with
their original target audience. They vitality and energy. Harley Davidson
integrate their social purpose into every and Red Bull are excellent examples of
aspect of the brand as part of a long- brand experience successfully taken
term commitment to their cause. to the extreme that inspire consumer
This commitment is illustrated by the identification and loyalty.
Social purpose is not a marketing strength of campaigns and causes
technique or initiative dressed up as that have been championed in recent A detrimental or alienating effect is most
altruism or activism. It has to form part monthsGillette (Go Ask Dad), Pantene likely to happen when the cause isnt
of the organisations DNA. It must be (Dad Do, Strong is Beautiful), SK-II true or relevant to the brand in question,
tangible, relevant and supported from (Marriage Market) and Ariel (Share the or when it isnt truly embraced and
the highest to the lowest levels of the Load). committed to but instead deployed as
organisation. a short term profit booster.
For which causes have you
Savvy and cynical in equal measure, seen brands make a real In the highly-charged economic
both consumers and employees see difference? and political climate, Starbucks has
through white or green washing. People The Pampers and Unicef Partnership announced it will create 10,000 new jobs
expect brands to live up their purpose is a private public partnership that has for refugees. This is a stance that may
and also to leverage their power for the achieved impact on a global scale. well alienate some customers (since
greater good. making the announcement it has been
Since 2006, 300 million tetanus vaccines met with both support and backlash
have been donated through the on social media), but one that, in my
Pampers and Unicef annual initiative. Its opinion, is likely to pay dividends in the
success lies in the simple, yet lifesaving, long term.
message of One Pack: One Vaccine.

22

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A UNICEF PIC WOULD
WORK BEST HERE OR
PERHAPS

22-23_bf17_Alina_v9.indd 23 05/06/2017 11:52


BR AND LE ADERS SPE AK

MAYORA GROUP
Ricky Afrianto, global marketing director
What makes you unique as in the Philippines. But Im most proud
a business? of the successful expansion of Mayoras Indonesian giant, Mayora Group
We believe that every business needs to ready-to-drink business from tea to was formally established in
have a purpose. And our purpose is to coffee and mineral water, which has 1977 and has since become a
serve goodness and happiness to our opened up new markets and new household name in markets
consumers around the world. This is our opportunities for our business. across the worldnow
guiding principle in driving our business distributing its products to over
growth and sustainability. How do you think 2016 will be 90 countries.
remembered in FMCG?
What has been your biggest Previously, we would use US or Japan It plays in eight categories:
success in 2016? as our reference points for development biscuit, candy, wafer, chocolate,
Our core brand Kopiko Coffee and innovation. Now, we look at coffee, instant food, beverage
continues to be a strong driver of Indonesia and see how technology can and cereal. Among its well-
success and is now a category leader change the way we do business. known brands are Kopiko, Roma,
Energen and Beng Beng.
MAYORA BRANDS APPEARING
IN THE 2016 RANKING
What about consumer
behaviour has surprised you
the most over the past
five years?
Certainly, the addiction to gadgets
and social media has been an
unprecedented shift. But its the
ambivalence shown to brands through
this channel which has proven to have a
real impact on our industry.

Looking to the future, to get consumers


GO-JEK, for example, started in 2010 as attention and engage them will be
a small motorbike courier and has since tougher and tougher. Changing
expanded into ride-sharing, takeaway online behaviours, the increasingly
delivery (GO-FOOD) and in 2015 an cluttered nature of the media and new
instant shopping service GO-MART technologies will continue to disrupt the
which will shop for you and bring it to way we do our business and the way we
your door within an hour. market our brands.

Things we thought were impossible


in the past are being made possible
now. For example, we see more and
more local companies outgrowing their
home, taking a leap and becoming
strong international leaders. And I think
this was the year of local companies
breaking out of their niche and making
an impact on a global scale.

24

24-25_bf17_MayoraNatura_v9.indd 24 02/06/2017 15:14


BR AND LE ADERS SPE AK

NATURA
Fernanda Faria, global head of consumer marketing insights
What makes Natura unique as Whats your view on how environmental or social concerns.
a business? FMCG brands can grow? At Natura, we believe sustainability
Natura was born from a passion of Brazilian companies are starting to enter offers a huge opportunity for growth.
both cosmetics and relationships. We different multichannel strategies in order Consumers want to buy natural
create our products using sustainability, to grow. Several local and international products that will not damage the
technology and advanced thinking. Our brands are going into direct sales or planet, and they are prepared to pay
focus on nature has made our brand opening up franchises and kiosks in a premium for this benefit. Any new
what it is todayits right there in our order to reach new audiences and business venture in the FMCG space
name. offer greater convenience. Amid tough should put this at the heart of their
economic conditions, brands are brand and communications.
Where are you looking next in increasingly modifying their offerings
terms of your growth strategy? across multiple channels in order to Has anything surprised you
Natura is a Brazilian brand which is learn what operates well and then about consumer behaviour
already present in seven Latin American deploy the most effective strategy for over the past five years?
countries, so we believe that further each channel. In the past, consumers have been very
growth across the region still has huge slow to adapt their behaviour to new
potential. In terms of channel strategy, innovations, but this has changed
we are expanding rapidly. We began enormously in the past five years.
as a direct sales company, with a
team delivering our products door-to- In just a few years, apps like Airbnb and
door. Now, in Brazil, we are opening Uber have completely changed the
up physical stores and moving into way people go on holiday and travel
e-commerce. We also recently opened aroundpeople have adapted very
our first store in the United States. quickly to this new technology, changing
their behaviour almost overnight. It
shows that if you provide solutions that
are convenient and cost effective then
A company born of its passion consumers will embrace them.
for cosmetics and relationships,
Natura develops its products And what about the next
using a network of people five years?
capable of integrating scientific If you were to start a new Sustainability will continue to be at the
knowledge and the sustainable business in the FMCG space, front of peoples minds when making
use of the rich Brazilian what do you think that purchase decisions and innovations
botanical biodiversity. would look like? in this area will drive a new era of
I think we are at a turning point in the responsible manufacturing.
With a strong belief in world, where consumers have a much
improving both society and greater understanding of the impact
the environment and society consumption is having on the planet.
better Natura is a proud The internet has opened up a new
member of B Corpa global frontier of information, empowering
network of organisations that people to learn more about the world
combine economic growth with they live in.
the promotion of social and
environmental well-being. People increasingly desire brands
that offer solutions to the worlds

25

24-25_bf17_MayoraNatura_v9.indd 25 02/06/2017 15:14


IN FOCUS: HE ALTH AND BE AUT Y

HEALTH AND BEAUTY


People are increasingly worried about their physical wellness and
safety. Anxieties around air pollution and environmental issues offer
growth opportunities for brands across the globe.
ASHLEY KANG brands functions. In the past, products
People are busier than ever; our promised to reduce the appearance % WEEKLY USAGE
lives loaded with information and of wrinkles; enhance elasticity. Now, PENETRATION
responsibilities. Global choices especially in Asia, there is a shift toward
of health and beauty brands are protection: creating a barrier for skin, BRAZIL CHINA
SOAP
therefore powered by three universal
drivers: health, happiness and
creating immunity against a harsh
environment. Multinationals like ELC 94% 22%
convenience. and LOreal (up 5% in global CRPs) have
launched detox care and pollution-
Shoppers not only want their choices defending face masks. BRAZIL CHINA
GEL
12% 87%
to fuel a specific need or fulfil a
particular function, they look for Beauty from within
appended benefits and features which Research by Kantar Worldpanel China
help them improve their lives across found that two-thirds of consumers
the spectrum of human wellness, not believe that to have beauty, one must
just aesthetics. have a healthy body. 67% of Chinese
% WEEKLY USAGE
consumers prefer cosmetics with PENETRATION IN CHINA
Make my life healthy natural ingredients; 55% are adopting a
Globally, the health and beauty healthier diet. FACE
CLEANSER SHAVING
market is driven by safer and more
natural products rather than simply
efficacy; consumers are actively
Similarly, in the US, consumers believe
that the elements most affecting
80% 88%

VS
seeking health and wellness. These beauty are lifestyle-related. To promote
trends play out across two broad its Active Naturals moisturising
brand assets: natural ingredients range made from oatmeal Aveeno
of the product itself as well as a challenged online influencers to use the
protective function against pollution product while adopting a diet packed
and mental stress. with fruit and vegetables. MOUTH DEODORANTS
WASH

Protection It is no surprise that South Korea is 1% 4%


For beauty, 2016 marked a change one step ahead in the beauty stakes.
in the communications around Increased attention to ingredients is now Source: Kantar Worldpanel Usage 2016

Brand story Rexona


Rexona is one of Unilevers star brands Continually innovating with new In Brazil, where it made its name
for 2016, increasing its global CRPs formulas and formats, the past in bar soaps, Rexona has achieved
by 6%. Marketed as Sure in the UK few years have seen the launch of impressive growth in a contracting
and Ireland, it has enjoyed success in compact, environmentally-friendly economy, breaking into the top 30
markets spanning China (+9% CRP), deodorant cans suitable for carrying most chosen brands for the first time.
Ecuador (+18% CRP), Egypt (+18% around as well as a breakthrough This is largely attributed to its strong
CRP), Germany (+10% CRP) and rural technology, Motion Sense, which reputation combined with lower
Indonesia (+22% CRP), where it is the activates tiny microcapsules when prices. The adaptation of formats
third fastest rising brand. the wearer is more active, ensuring and packages has played well to the
freshness throughout the day. broader trend of cost-benefit which is
sweeping the nation.

26

26-27_bf17_infocus_Healthand Beauty_v9.indd 26 02/06/2017 15:20


IN FOCUS: HE ALTH AND BE AUT Y

Top 10 health & beauty brands globally by CRP


CRP %
GROWTH

1 Colgate 4,174 1
more discerning. Koreans demand of
their products a certification from the 2 Lifebuoy 2,555 -1
Environmental Working Group (EWG)
or similar third-party organisation 3 Sunsilk/ 1,790 12
before they will consider their purchases
Sedal/Seda
virtuous. 4 Dove 1,665 2

Make my life happy and 5 Lux 1,539 1


meaningful
Health and beauty trends are also 6 Palmolive 1,102 0
heavily reflective of culture; an
emotional aspiration for engagement 7 Pepsodent 1,092 4
and experience continues with a
growing concern for the community. 8 Pantene 988 -13
Brands are stepping in where others Head &
cant, or wont. 9 Shoulders 931 2

Nowhere is this more evident than 10 Rexona 888 6

in China, where Japanese prestige


Source: Kantar Worldpanel 2016 CRP in millions
skincare brand SK-II launched its
Marriage Market Takeover campaign. In
Shanghai, single women over the age of innovation. Black/charcoal variants are Make my life convenient
27 are labelled leftover women and are very popular and can command a price In developed beauty markets, women
often pressured by friends and family premium across the category. are wearing less makeup or opting for
into marrying fast. The brand created a more natural lookin the UK, 35%
a film designed to bring communities The magic man report using less in 2016 than in previous
together and remove the stigma. SK-II Just like women, says Axe, with a 3% years. In the West generally, this natural
sits just outside Chinas top 100 brands, CRP increase in Germany, men want look sees products such as Perricone MD
growing its CRPs by 12%. the freedom to be themselves. Its new No Makeup makeup (moisturiser with a
find your magic campaign showcases little coverage) enjoying success. In the
Me, too a range of different male identities, East, tone-up cream is very popular
Brands that do well create something abilities, sexualities and looks. a nourishing cream with an instant
special for me. Premiumisation is brightening effect.
one of the key themes in growth Perhaps less daring is an Indian-based
development for health and beauty, start-up seeking to make beauty In South Korea, consumers have
and big manufacturers are achieving manly, tapping into a demographic specific routines for different occasions:
this through acquisitions. which either steals their girlfriends natural during weekdays; more special
products or is embarrassed about at the weekend. Brands are evolving
Unilever recently acquired Living Proof buying them. The Man Company is to effectively target these specific
a luxury haircare brand adding to a middle-market subscription service occasions with various formulas and
its portfolio of Prestige brands. It joins which offers manly products for formats such as day, night, and
skincare stalwart Dermalogica and haircare, body, shaving and facial on-the-go.
ultra-premium REN, a niche bodycare moisturiser.
brand made from 100% plant- and
mineral-derived ingredients. Sector disruptors
In the Philippines, premiumisation is
taking over oral care as specialised
variants such as whitening and
sensitive are fast growing. While the
main player is still Colgate (ranked 5), MULTI-FUNCTION BEAUTY MICRO-MOMENT
competitors like Hapee (ranked 22) are PRODUCTS THROUGH FOOD ROUTINES
enjoying sustainable growth through

27

26-27_bf17_infocus_Healthand Beauty_v9.indd 27 02/06/2017 15:20


IN FOCUS: BE VER AGES

BEVERAGES
As consumer tastes change and more people become health
conscious, brands need to think of innovative responses to
encourage more buyers to choose them.
TOM PATTINSON per cup, while the average out-of-home
Younger people consume fewer hot coffee sells for 1.69. By addressing a AVERAGE SPEND ON OUT-OF-
drinks than previous generations, and completely new occasion, Nescaf has HOME COFFEE OCCASIONS
government intervention is currently encouraged existing coffee buyers to
focused on reducing sugar in soft make additional trips, resulting in a rise
drinks. This has led to a development of 42% in incremental category sales.
CHINA THAILAND
of products with natural attributes,
multifunctional benefits and less sugar. Downsizing $4.40 $0.96
Brands are increasingly taking an ethical
In- and out-of-home rather than a solely profit-driven
consumption stance towards product development
In China, new variants of tea are being and packaging. Coca-Cola and PepsiCo, CARBONATED DRINKS
developed for young urban dwellers manufacturers of the two biggest CONSUMED OUT OF HOME
spending more time inside the home. beverage brands in the ranking, recently
Nongfu Tea, a product fusing tea united to discuss downsizing their
with juice, reported one of the fastest products and cutting back on cut-price
penetration growths in 2016, reaching deals in stores. This is congruent with a BRAZIL THAILAND
9.4% of Chinese shoppers within six
months of launch.
growing demand for more sustainable
packaging and production.
20% 75%
Conversely, in the UK, Nescaf Adjusting package sizes has a
famous for its in-home Dulce Gusto secondary effect: differentiation. In 2015,
coffee machines and pods has Coca-Cola launched a 1.25-litre bottle HOUSEHOLDS USING A
created a new make-at-home-carry- as an alternative to the 2-litre bottle, WATER DISPENSER
out category with its Azera Coffee to and a 7.5 ounce can as an alternative to
Go brand, aiming to provide the carry- the traditional 12-ounce can, resulting in
out experience from the convenience of a 9% spike in sales in the USA.
SAUDI ARABIA ARGENTINA

64% 18%
the consumers home or workplace.
Responding to the sugar
The brands price premium is justified backlash
by sustainability and convenience With the media spotlight turned firmly
factors, coupled with a cleverly altered on sugar, many consumers around the
Source: Kantar Worldpanel OOH individual
price frameCoffee to Go costs 67p world are seeking healthier alternatives. responses 2016

Brand story Tang Nutri


Mondelz Internationals Tang has tub packaging was supplemented diet, helps to provide nutrients for
been a rising star in the Top 50 by one-drink-size sachets ideal for the family, enhancing its role as a
ranking for the second year in a row. lunchboxes pre-mixed drinks and partner for meals.
A powdered drink with innovation liquid concentrates.
baked into its core, it was used by Its global growth continues at pace,
earlyNASAmanned space flights In Brazil, the brand introduced a adding 2% to its CRPs in 2016 and
which propelled it to fame. Since, functional variant: Tang Nutri retaining its position as the sixth
it has thrived by clever promotions complete with Vitamins C, D and most chosen drinks brand in the
and new product variants. Its large Zinc which, coupled with a balanced world.

28

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IN FOCUS: BE VER AGES

Top 10 beverage brands globally by CRP


CRP
GROWTH

1 Coca-Cola 6,046 -2
Energy drink Red Bull, in position 15 of
this years ranking with a CRP increase 2 Pepsi 2,176 0
of 3%, is changing its focus as health-
conscious millennials turn to zero- 3 Nescaf 2,111 0
calorie variants. The brand launched
a range of exotic zero-sugar flavours 4 Sprite 1,009 0
via Instagram in 2016, supported by
bespoke messages on trains, cycle 5 Fanta 851 0
routes and in fitness clubs to capture
the attention of young drinkers. 6 Tang 848 2

PepsiCo is also responding to changing 7 Milo 825 0

consumer needs with Naked Juice well


on its way to being the companys next 8 Brooke Bond 823 7

billion-dollar brand which introduced


Naked Cold Pressed in 2016. Tropicana 9 Lipton 646 0

launched Tropicana Essentials


Probiotics, becoming the first brand to 10 Mountain Dew 552 2

bring probiotics to mainstream juice


Source: Kantar Worldpanel 2016 CRP in millions
consumers.

But health is not the only factor consumers. T-plus, a new entrant into
impacting consumption. In China, the UKs healthy drinks market, has
fewer hot days led to lower demand for In China, fewer blended green, herbal and fruit teas
cooling carbonated drinks. Purchase with vitamins to deliver 50% of the
frequency for urban households fell hot days led to recommended daily allowance of nine
by 7.6% in the 12 months to the end of lower demand essential vitamins per teabag. The move
June 2016, a decrease of 1.7 trips per is attracting new buyers at pace, while
household. for cooling soft also demanding a premium price.
drinks
Broadening mindsets Heinz, meanwhile, has entered the
Drinking habits are changing as beverage category in India with Power
consumers are faced with more choice Sprouts, a multigrain malt drink with 31
than ever. The rise of mocktail bars Functional benefits added vitamins, aimed at children.
and drink awareness campaigns is As well as removing things from
having a negative effect on alcohol products, brands have also started The number one brand in the ranking,
consumption: younger people especially adding functional benefits to drinks not Coca-Cola, introduced Coca-Cola Zero
are choosing healthier alternatives, previously associated with health. Sugar a reformulated and rebranded
even when socialising. The number of version of Coke Zero in Belgium,
teetotal 16 to 24-year-olds in Britain Tea producers in the UK have France, Ireland, the Netherlands and the
rose by more than 40% between 2005 added ingredients such as matcha United Kingdom. It also launched Fanta
and 2013similar trends have been and vitamins C and B12 to boost Lemon +C in Japan, containing a level of
noted in other parts of Europe and the sales amongst health-conscious vitamin Cequal to that of 80 lemons.
US.
Sector disruptors
Upon opening the refrigerator, this
demographic is as likely to quench their
thirst with a soft drink or water as they
are a beer or glass of wine. Thus, brands
often no longer compete within their
own categories and instead battle to be ADDING IN
chosen based on the occasion. WEARABLES LEGISLATION
GOODNESS

29

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IN FOCUS: FOOD

FOOD
People around the world are becoming acutely aware of what they
put in their mouths and crucially the ramifications of those
choices on their lifestyle and quality of life.
FRASER MCKEVITT Added protein is the most common:
Technology has been a powerful driver popular in Filipino households is a milk
I CHOOSE A SNACK
of changing attitudes towards food. and cereal drink Energen which FOR HEALTH
Not only are Western consumers ranked 11th in the Philippines food
adorned with smart watches, Fitbits ranking, up five places. Available in a
and heart monitors, scientists are sachet and consumed for breakfast,
developing a device that uses chewing a coffee break or late-night snack, it PORTUGAL BRAZIL
noises to monitor calorie intake. includes nearly the full alphabet of
vitamins, protein, calcium and folic acid.
21% 12%
But while its easy to fret about
calories and clean eating in countries In Mexico, not even the humble yoghurt
with an established or growing middle is spared the clean eating trend. Lala YOGHURT
class, these concerns are almost Semillas, a food brand bought by 93% PENETRATION
directly proportionate to higher of Mexican households, encourages
consumer confidence. In recession-hit consumers to start their day naturally
Venezuela, by contrast, food products and healthily with a seed-infused
SAUDI ARABIA PHILIPPINES

99% 29%
have suffered the mostpeople are yoghurt pot.
spending 27% less year on year. While
consumers are enjoying fewer treats, Transparency is still front of mind for
diets have become more basic, plainer consumers the world over: people
in taste and heavy on carbohydrates. havent forgotten the recent scandals MAYONNAISE
engulfing some major manufacturers. PENETRATION
More healthy In Asia, brands arent trying to hide
In previous years, weve seen the food anything: actively telling the shopper
industry tackle health concerns by how to mitigate undesirable chemicals
removing ingredients: less salt, fewer in foods, advising that upon boiling, for URBAN
BOLIVIA INDONESIA

98% 8%
calories, reduced fat. In 2016, the example, they will be washed away.
trend moved toward adding things
back in. In Chile, biotech company The Not
Company (NotCo) was founded to
Source: Kantar Worldpanel and Usage 2016

Brand story Danone


Danone has long been a global visual and linguistic branding more increasing its CRPs by 23% in 2016
success story in the Brand Footprint commonly found in premium skincare. it is cream cheese and fresh milk
ranking, the sixth most chosen food rather than yoghurt that sees it
brand in the world and the fastest Such is Danones credibility in the soar up the ranking. Indeed, cream
growing in the top 10. yoghurt space, its daughter brand cheese was responsible for Danones
Oikos a super-premium Greek breakthrough in this market,
Premiumisation is at the heart yoghurt has broken out as a separate attracting a large contingent of
of Danones growth strategy, and burgeoning brand in many buyers through increased distribution
demonstrated most acutely by its Western markets including Spain, Italy and price promotions. In fresh milk,
recent rebrand of the Activia line and the USA. the brand presents a quality image,
of functional yoghurts. The global priced below the market average;
relaunch began last year, initially in Conversely, in Brazil, where the brand representing a clear cost benefit
35 countries, and aims to mirror the is showing exceptional growth message for the consumer.

30

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IN FOCUS: FOOD

Top 10 food brands globally by CRP


CRP %
GROWTH

1 Maggi 2,195 -9
create transparency in the supply chain.
An artificial intelligence algorithm 2 Lays 2,094 -2
analyses and produces affordable,
plant-based foods that taste exactly like 3 Indomie 1,824 -1
their animal-based counterparts.
4 Knorr 1,728 -2
More happy
Sugar wars rage on around the world 5 Nestl 1,353 2
but certainly at a governmental level
are mainly limited to juices and soft 6 Danone 1,102 3
drinks.
7 Heinz 953 2
Thats not to say that the snacking
occasions havent changed at the 8 Kraft 953 -1
hands of our newfound quest for
healthy living. Snacking tastes in some 9 Oreo 913 -2

parts of the world are heading towards


nuts and popcorn, which is perceived as 10 Ajinimoto 902 -3
healthier. PepsiCo reacted by launching
Source: Kantar Worldpanel 2016 CRP in millions
Popworks in the UK, a product which
hits the need for both indulgence and
health, with many flavours to choose food eaten on the go. In parallel, making media outlets across TV, radio and
from. meals at home means consumers are newspapers, is amplifying the pace of
now focused on the main course with behaviour change. Some categories
Indonesian manufacturer Mayora has fewer starters or desserts. are paying a high price for the resulting
introduced a sweet snack with a double change in brand choices: the French
occasion. Out of the cupboard or out of Canny retailers can seamlessly link population in general are drinking
the freezer, chocolate bar Beng-Beng, together convenience with health, less alcohol, consuming less bread
with a 15% increase in CRPs this year, providing naturally put together meals and choosing fewer animal products,
has enjoyed enormous success as an ice that are good for you. especially red meat.
cream or a biscuit.
More connected Ultimately, consumers are more
More convenient In Asia, brand conversation is part of informed and are more passionate
Meals are changing both with our everyday life. Television culture plays a about food then they have been before,
lifestyles and our tastes. Increased large part in this. In Indonesia, Thailand and are demanding transparency
urbanisation has led to smaller and China especially, consumers will across the entire food supply chain.
households; smaller households to probably not only know the stars of They care about how their food is raised
changing mealtimes; even greater these shows but also their favourite and grown.
numbers of people are eating alone. snack, what coffee they drink, and what
instant noodle brand they prefer. They care how it is packaged and sold
As such, the need for the right-sized and they actively seek companies
products and packaging as well as The ever more frequent food bashing, whose practices align with their own
promotions that erode any stigma of a position adopted by French values.
being alone is on the rise, alongside
offerings than recognise individual need Sector disruptors
states. Heinz, for example, is finding
success across China with its single-
3D
serve Dip & Squeeze ketchup format.

In France, increasingly profound


changes in consumption behaviours are
linked to new lifestyles, with a growth in PACKAGING FOOD AS MEDICINE 3-D PRINTING
meals eaten outside the home and fast

31

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IN FOCUS: HOME C ARE

HOME CARE
A growing global middle class and enhanced infrastructure in
developing regions present opportunities for brands to expand their
home care ranges into new markets and categories.
SIMON SKELDON A category of occasions ONE TOILET AT HOME
As disposable incomes rise in line with Encouraging new product usage or
economic growth, more consumers more varied consumption is a certified
in more markets will invest in white technique for FMCG brand growth. This KOREA PORTUGAL

84% 34%
goods such as washing machines and is especially true within home care,
dishwashers, affording brands the where local and global brands have
capacity to develop and premiumise found creative ways to increase product
their portfolios. usage across multiple occasions.
DOG AT HOME
Currently, over 60% of the worlds Febreze is a great example of a brand
population still wash their clothes by stretching into new occasions. The
handin India, for example, there are product was launched as a fabric
only three home care categories that refresher for shoes, furniture and GREECE CHILE
are fully penetrated: packaged soap,
washing detergent and matchsticks,
clothes, but P&G has extended its
proposition to focus on air occasions,
17% 73%
leaving enormous headroom for targeting different rooms in the
brands to grow. household (or indeed the car) that may
benefit from odour control. Febreze FAMILIES WITH YOUNG
In established markets where continues to grow, climbing one place in CHILDREN
penetration is high, the challenge is the global homecare ranking in 2016.
very different. Brands that create new
occasions or routines, identify new Social responsibility SPAIN PHILIPPINES
benefits and offer outstanding value
increase their chances of winning.
Sustainability sells. Worries about waste
and the environment are an increasingly
13% 46%
important consideration when choosing Source: Kantar Worldpanel Family Form 2016

Brand story Patanjali


Once dismissed as a fad, Indian all categories. Its Herbal Home Care all its products from oats and spices to
FMCG company, Patanjali, has been Collection includes incense sticks laundry detergents carry the Patanjali
on a soaring trajectory of growth to keep homes smelling good and branding.
over the past year, almost doubling premium laundry detergents which
its penetration to reach over 44% promise to not only take care of Patanjalis business has the goods
of households in urban India. In clothes but also bodies. to back up its branding claims: it
home care alone, it now penetrates sources raw ingredients direct from
14% of the populationfast Meeting the consumer appetite farmers (offering them support and
becoming a legitimate competitor to for safe, environmentally-friendly, technological development) and retains
multinational giants. transparent products; critical to its control of the entire supply chain
success is its credibility around natural factory to retail. It uses traditional and
Founded in 2006 with a social offerings, unique business model and modern trade as well as e-commerce to
conscience at its core, Patanjalis a shrewd understanding of the Indian reach consumers directly.
mission is unambiguous: to create consumer. Unbound by traditional
a healthier society, starting with marketing conventions, it spends little Already approved by the FDA and
everyday products. This as well as on advertising, relying instead on available in the US and Canada,
its popular herbal positioning has word-of-mouth. Rather than creating Patanjali is exploring expansion into
struck a chord with shoppers across daughter brands for each category, China, Bangladesh and Africa.

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IN FOCUS: HOME C ARE

Top 10 home care brands globally by CRP


CRP %
GROWTH

1 Sunlight 1,319 6
a brand. In a crowded marketplace
where multiple products are selling 2 Downy 1,284 -9
the same end result brands are
increasingly selling themselves on the 3 Tide 1,071 -15
concept of shared responsibility.
4 Surf 894 3
Value is no longer determined solely by
the formula or whether its convenient; 5 Vim 884 10
its how the product makes people feel
when they purchase it. 6 Ariel 575 -7

In the UK, Persil launched a Learning 7 Omo 556 -5

for Tomorrow initiative in partnership


with UNICEF. The initiative is funded 8 Fairy 482 0

with an initial $1.4 million donation from


Persil and Unilever Global Partnerships, 9 Clorox 461 0

which will contribute to UNICEFs


global education programmes, 10 Comfort 357 5

providing access to quality education


Source: Kantar Worldpanel 2016 CRP in millions
opportunities for 10 million children in
Brazil, India and Vietnam. Nudging the
top 30 most chosen home care brands Safe for me and my family they are growing fast.
globally, Persil sits at position 31. In markets spanning China and France,
a growing number of shoppers are Cleaning brand Briochin is made from
Dettol, the fastest riser in the ranking, searching for products that omit natural old-fashioned ingredients
continues to educate regarding the substances detrimental to the health of vinegar and bicarbonate of soda.
importance of hygiene and has entered either the environment or the individual. It commands a price premium by
the Top 50 in position 47. For these shoppers, marketing that respecting the surfaces you use it on
avoids shock slogans or promises of and has seen 114% growth in the last
Premiumisation overkill will succeed. year alone.
As global wealth rises, so does the
taste for the finer things in life. Home In France, manufacturers are opting Ideals Sanytol, which prides itself
care products are traditionally very in to the European Ecolabel, a on a no-bleach formula, reached a
practical purchases; a necessity rather government-regulated promise that penetration of 17.5% in 2016, climbing 10
than a luxury. However, brands are any product which bears its seal is places in the French ranking. In China,
tapping into rising disposable incomes environmentally friendly and of good eco-friendly detergent brand Kispa is
by developing products that reflect this quality. performing well: increasing its CRPs
lifestyle switch. by 59% and jumping 39 places in the
This has opened opportunities for ranking.
In the Philippines, premiumisation smaller, local brands that can use their
is burgeoning within the laundry size as an advantage to disrupt the This trend towards cleaning without
category. market with non-toxic alternatives. The polluting for your family and for your
breakthrough brands may be small, but planet is becoming difficult to ignore.
In 2016, Ariel launched several premium
laundry products such as Swakto, which Sector disruptors
combines Ariel washing powder with
another P&G brand Downy to add
additional fragrance. It is now the third-
fastest growing brand in the country,
growing its CRPs by 35%.
RISING MIDDLE
LEGISLATION WATER CLASSES

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EUROPE AT A GL ANCE

EUROPE
The mood in Europe was dominated
by one theme in 2016: disruption.
Brexit; fraying relations between
Russia and the West; the emergence
of populist nationalism and anti-EU
sentiment; the refugee crisis. Social,
economic and political pressure
mounted in all directions.
Despite these uncertainties, the European
economy performed well in 2016. Lowered
borrowing costs, boosted asset prices
and improved credit market conditions all
contributed to buoyed wealth, confidence
and consumer spending.

With important elections ahead for the


UK and Germany, unpredictable politics
will undoubtedly continue to impact
FMCG companies in Europe and further
afield.

United Kingdom:
rise of the flexitarians

Flexitarianism has emerged as a more


achievable alternative to going fully
vegetarian or vegan. Campaigns by the
government and celebrity chefs have Spain:
highlighted the impact that eating lifestyles not diets
meat can have on health and the UK consumers
environment, leading many more to Brands in Spain are encouraging
embrace a flexible plant-based diet. are opting to consumers to get healthy; not just
avoid meat for through what they consume but how
Our insight shows that Britons are they behave.
opting to avoid meat for at least two at least two days
days a week, with the average person a week, with the Danones Greek yoghurt, Oikos was
now eating meat 5.4 times a week very successful in Spain as part
across the country. average person of this drive towards being more
eating meat just healthy. With a 21% increase in CRPs
Interestingly, we are also seeing a the brand went up 13 places in the
counter-trend of indulgent luxury in the 5.4 times a week Spanish ranking to position 37. This
snacking and beverages sectors, where improvement was driven by the
brands have created full-fat premium launch of new varieties to the range.
varieties to satisfy the cheat meal
mentality.

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EUROPE AT A GL ANCE

Top five growing


brands in Europe

Pringles 19

Wrigleys 9

Lindt 7

Barilla 6

McCain 6

Source: Kantar Worldpanel, GfK 2016 % CRP


growth

not included in the ranking

Russia:
going digital

Russian consumers have traditionally


been wary of online transactions,
making e-commerce adoption slow.
But domestic e-commerce is picking up
pace, now accounting for 2% of retail
spend. Consumers are becoming more
tech savvy and social media friendly
Germany: over 82% of the population now uses
France: migrating tastes social media, with regional platforms
simplifying beauty regimes like Vk and Moi Mir dominating.
More than 476,000 asylum applications
The number of personal care usage were registered in Germany in 2015, In 2016 Garnier launched its new Pure
occasions is reducing among the French, with officials putting the total number 3-in-1 face cream with an augmented
contributing to a noticeable category of arrivals at over one million. The influx reality app. When someone took a
decline. Regime simplification (fewer of large numbers of migrants and picture of the product through the app,
categories and fewer occasions) is refugees over a short period of time Russian pop star Erop Kpna appeared
most prevalent in morning routines has created a cacophony of cultures. in the shot and performed a song and
and is characteristic of many social New restaurants are popping up in dance routine. This created 21,000 user-
factors: increased time pressures, an Germanys towns and cities to serve generated videos with 28.1 million views
expectation of convenience and the exotic Middle Eastern taste buds, and on social media, helping Pure 3-in-1
current fashion of a more natural food stores are expanding product achieve 49% sales growth, rising to be
beauty. lines to meet the demands of this new the market leader.
market. As Germanys burgeoning
The popularity of a new product migrant community continues to
micellar water is a symptom of this expand and integrate into society, the
trend. An all-in-one toner, cleansing native population is beginning to explore
milk and moisturiser, this product does these new flavours and integrate them
little to boost volumes, but is a natural, into their diets. In the future, FMCG
simple remedy for consumers and brands will need to consider the shifting
enjoys enviable growth in a difficult tastes of Germanys population in order
market. to feed the desire for new flavours.

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34-35_bf17_Europe_v9.indd 35 05/06/2017 12:33


ASIA AT A GL ANCE

ASIA
Asias FMCG market
has continued to
slow throughout
2016, showing
growth of 2% year
on year.
In any other region, a 2% growth
trajectory would be met with
satisfaction, celebration even. But
Asias successes over the previous
decade mean that expectations are
high for both FMCG and the economy
in general. If they fall short, consumer
and market confidence tends to suffer.

Whats more, growth is no longer


propelled by China: the north Asian
economy remains soft. Instead,
Vietnam, Indonesia, the Philippines
and India are largely responsible for
the continents fiscal firepower. India:
amplifying brand choice
With attention turned toward
domestic consumption following While shoppers are still motivated by
international trade concerns, FMCG value, this is not the sole purchase
brands must fight harder for their driver. Low-unit packs often succeed
share of consumer spend. FMCG because Indian consumers want variety
growth rates hover between 2% and and choice: people wont just buy the China:
3% but the average Asian salary grew one sachet; they will choose 15 or 20. health trumps wealth
between 5% and 6% in 2016, up to 10% They want to try new variants and mix
in some countries. and match. Consumer appetite in turn with
consumer confidence in some regions
Overall basket spend therefore Equally, the much-reported growth is changing faster than some brands
fluctuates based on a more complete of the local brand, where brands can adapt. The Chinese middle classes
lifestyle repertoire: whether or not, originate from and stay in India, isnt are changing their mantra from
for example, a shopper is saving for a considered to be an example of down- opulence to well-being. A common
smartphone or planning a holiday will trading. We are now witnessing the perhaps politically motivated phrase
affect their spend across all sectors. growth of hyper-local brands, which are is emerging: Health Trumps Wealth.
manufactured, chosen and consumed
in distinct regions. They can match, The perception of premiumisation
like for like, qualities being offered by also contributes to growth. Chinese
national or even international players brand Ganten has positioned itself
and are being chosen proudly by the as a mineral water which springs
higher socio-economic groups as well as from a first-class environment; on its
the less affluent. way collecting over 100 high-quality
minerals proven to have considerable
health benefits. Gantens CRPs have
grown by 23% over the past year.

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ASIA AT A GL ANCE

Top five growing


brands in Asia

Oishi 22

Sunsilk 16

Dettol 15

Chik 11

Vim 11

Source: Kantar Worldpanel 2016 % CRP growth

not included in the ranking

Philippines:
simplicity and positivity

International controversy aside, the


new president has nonetheless inspired
the majority of low-income Filipinos
to believe that their quality of life will
improve. This increased confidence has
led not only to increased spend but also
a desire to ease pressure and simplify
their lives.

Laundry brand Ariel used this insight


to innovate. In 2016 it launched a
new format Ariel Gel to massive
fanfare. Its communications message
kept affordability at its core, but also
Asian food and beverage brands have played to emotional positivity (the TV
commercial became a viral hit online).
long outshone their multinational
counterparts and have continued to Its sister product, Ariel Power Gel, spoke
to the Filipino attraction to simplicity
grow at over twice their speed over and ease, reaching 4% penetration in
the past year. In 2016, this trend was just 12 months following launch. This
helped the brand climb 16 places in the
mirrored in the health and beauty ranking, growing its CRPs by 35%.
categories where speed of innovation
and better engagement with consumers
were two factors which spelled success

37

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THE AMERIC AS AT A GL ANCE

THE AMERICAS
2016 was a year of volatility for the
Americas. In Latin America, economic
growth hit rock bottom in many countries
as equality gains stalled and consumer
confidence crashed.
Prolonged recessions in Brazil and Mexico:
Venezuela and notable slumps in connecting sustainability with
Argentina and Ecuador undermined consumer benefits
the progress of surrounding countries.
Politically, the impeachment of Local brand Industrias Alen has earned
President Dilma Rousseff in Brazil, a place at the top of the countrys
a further democratic breakdown home care ranking. It now reaches
in Venezuela and the election of 93% of Mexican households through Colombia:
US President Trump in November brands like Pinol and Cloralex. The smart shoppers
threatening the North American Free secret to its meteoric rise? The brand
Trade Agreement compounded a has a longstanding commitment to Tightening purse strings are forcing
difficult year. sustainability that goes beyond its Colombians to shop smart and top up
mission and vision. their groceries with discount brands.
Most Latin American households
reduced their basket consumption in As well as a sustainability committee Indeed, the sluggish Colombian
2016, yet a handful of brands found that sets new goals each year, ranging economy is proving fertile ground for
a way to reach double-digit earnings. from green packaging to national discounters. High inflation and slow
Many of these were local or regional regulation and recycling schemes, growth combined, lowering consumer
accounting for one in every two dollars Industrias Alen has also made the confidence to -10.7% in December 2016.
spent on FMCG in the region last year important link between sustainable A 9% increase in prices of the FMCG
which were able to capitalise on the living and the notion of natural. shopping basket is causing consumers
demand for more affordable, more Ensueo is the first fabric softener in the to make on average eight fewer trips
readily-available goods. market that is vegetable based, which per year. The result is more space
saves water by low foam production. for the discounters, earning them 25
The packaging is also made from 100% penetration points in 2016, led by local
renewable material. Ensueo moved retailers such as D1.
up one place in the rankings in 2016,
becoming Mexicos 29th most chosen Bartering in Venezuela
brand.
The recession in Venezuela has
majorly impacted modern trade, with
supermarkets and hypermarkets losing
20% market share in only five years.

79% of Venezuelan households have New informal channels have emerged,


purchased from bachaqueros, which including the exchange of goods and
selling on to friends and neighbours,
guarantee the provision of goods but at as people adapt and find resourceful
a highly inflated price solutions. 79% of households have
purchased from bachaqueros, which
guarantee whatever people want but at
a highly inflated price: mothers can pay
on average eight times above what they
used to for their babies diapers.

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THE AMERIC AS AT A GL ANCE

USA:
home delivery
Top five growing
Americans are embracing convenience.
Initially slow to adopt the e-commerce
brands in Latin America
revolution, the nation is now falling
in love with home delivery services. Soya 13
Amazon grew its workforce by 50%
in 2016, claiming it will need a further Nivea 12
100,000 workers by 2018 to meet excess
demand. Physical stores are still the
Del Valle 5
most frequent way Americans purchase
FMCG products, but preferences are
changing. The success of meal delivery
Rexona 4
services such as Blue Apron and Hello
Fresh, which provide 15.2 million meals Nescau 4
every month between them, signify this
mindset shift. Maximise convenience,
minimise time input: thats the new Source: Kantar Worldpanel 2016 % CRP growth
mantra. Bart Bronnenberg,
professor of marketing at the
Tilburg School of Economics and
Management

Brazil:
the declining FMCG basket

Between 2009 and 2012, Brazil


experienced a period of increased
consumption, fueled by income growth,
controlled inflation and increased
access to credit. Indeed, the country
was regarded as an international
success: its consumers spending more
on luxury items such as travel, home
improvements, beauty services and
personal care, as well as expanding their
FMCG basket.

Since 2015, Brazils political crisis


has impacted the economy and
consumption. Brazilian wages declined
and debt rose last year, as household
spending surpassed income. Brazilians
were forced to cut their FMCG
expenditure and have intensified their
search for value for money. Premium
brands can still win, as long as they
provide a clear benefit, but consumers
will try to choose the more accessible
products: namely, those that are on
promotion.

There was no significant recovery of


FMCG consumption in 2016, and the
same is expected for 2017. Our research,
in partnership with IBOPE DTM, suggests
FMCG spend will recover by as little
not included in the ranking as 1.7%.

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AFRIC A AND MIDDLE E AST AT A GL ANCE

AFRICA AND
MIDDLE EAST
Africa has been one of the shining lights of the
developing world in recent years, with some
economies growth outpacing most emerging
countries around the globe.
While the long-term outlook remains Egypt: pack size
positive, Africas growth story has management
become more complex. The gulf in
wealth between countries and between Egypts economy experienced a
socioeconomic groups remains vast, as huge transformation in 2016 when its
do differences in culture, infrastructure currency began to float freely. This led
and politics. Problems besetting the to devaluation and high inflation, in
continents leading economies, such as turn detrimentally affecting consumer
cheap commodity prices and slumping confidence and purchasing habits.
sovereign credit ratings, are softening the Brand choice is now determined by
growth prospects of surrounding nations. pack size: unlike Ghanaians, Egyptians
The threat of increasing food prices and are bulk buying to save money,
a reduction in US-African trade has also avoiding impulse purchasing and
created uncertainty. achieving maximum value for an ever-
reducing number of trips.
Despite this, as the worlds second-fastest
growing region after Latin America This change in behaviour was
and equal to the Middle East FMCG misjudged by many brands who Nigeria: forever young
companies are rushing to cash in on the calculated that smaller pack sizes
African consumer and the modernising would succeed in a time of high Nigeria is predicted to reap
economy. inflation. Thus, innovation was the benefits of a long-awaited
minimal in 2016understanding demographic dividend. Its
the right pack size and assortment population the largest in Africa
remained a key challenge and brands reached 182 million in 2016 with
With more primary, if not sole, route to growth. more than half under the age
than half of of 30 and 40% under 14 years
old. The effect of this is two-fold:
its population Ghana: downsizing placing a strain on the nations
under 30, economy and public services,
Challenging economic conditions have yet presenting opportunities for
Nigeria has the led consumers to seek affordability: brands to tap into a huge market
opportunity choosing smaller formats and shopping of young Nigerians.
more frequently. Better price positioning
to reap the has seen some brands in Ghana gain a Arla Foods has used both to
benefits of this competitive edge. Local player Doffi is establish itself as a major player
a great example: by heavily discounting within the dairy business. In 2016,
demographic its core products at strategic times to it partnered with the government
dividend accommodate tightening purse strings, to develop the Nigerian local dairy
the detergent brand climbed 30 places industrycreating a sustainable
in 2016. value chain that contributes to
food security and local jobs.

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AFRIC A AND MIDDLE E AST AT A GL ANCE

Top brands in Africa


and Middle East

Saudi
Arabia 666
Almarai
Nigeria
Indomie 545

Egypt
El Arosa
517

Ghana
Sasso 81
Kenya
Royco 67

Source: Kantar Worldpanel 2016


CRP in millions

Saudi Arabia: a hub for


FMCG investment?

The Saudi Arabian government has


made trade and investment a priority
for negotiating a tough economic
landscape. Its burgeoning population
and high per-capita income attracted
investment from numerous FMCG
manufacturing companies and
cooperatives, keen to capitalise on the
countrys strategic location.

Irish dairy cooperative Ornua has


Kenya: sensitive skin opened a $20 million white cheese
manufacturing facility in Riyadh,
Increased spend on out-of-home, social proving a central hub to access high-
media and other forms of advertising growth dairy markets in the Middle
has increased consumer awareness East and North Africa (MENA). Ornua
of skin allergies in Kenya, leading to uses pioneering technology to produce
a boost in sales for dermatological a range of white cheeses hugely
products. popular in the region for bakeries,
delis and restaurants. PepsiCo has also
Washing powder brand Omo performed announced plans to open one of its
well in 2016 after repositioning itself as largest manufacturing plants in Jeddah,
a friendlier product for sensitive hands. as it looks to break into new markets in
Traditionally known for harsh (but Asia and MENA.
Countries with household panels effective) cleaning, a change in formula
Countries with no current coverage allowed it to maintain its tough on
stains appeal while introducing a new
gentle message. It is now Kenyas sixth
most chosen brand, climbing one place
in the ranking.

41

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INGREDIENTS OF GLOBAL DISRUP TION

INGREDIENTS OF
GLOBAL DISRUPTION
For the past five years of Brand Footprint, we have written
extensively about trendsthose we see emerging, fading and
those being effectively exploited by brands and retailers for
commercial gain.
Mostly, trends are transient; their consumer tastes, manufacturer and the means to purchase goods online still
prominence rising and falling from retailer innovation, technological prefer to shop in a physical environment.
year to year as their stimulus is either advancements, or shifting political
heightened or removed. winds. Real disruption tends to happen
when technological capability crosses
But occasionally they collide and gather The uneven rise of global e-commerce with consumer demand in the right
pace, forging a trajectory which disrupts is an interesting study in disruption. In economic, political and commercial
markets and changes the landscape developed markets, the technology was environment.
of industries, societies and human ready at the turn of the century, but
behaviours permanently. the people were not. Even now, while Here, our experts have identified the
e-commerce penetration is steadily trends which have potential to become
The impact of trends predicates increasing, there are large pockets of the real disrupting forces on the global
on many moving parts: changing world where consumers equipped with FMCG market.

.
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INGREDIENTS OF GLOBAL DISRUP TION

coffee and whole beans, the concept of


Brand building making packs work harder is a growing

and the Internet trend. In the United States, many


manufacturers have now committed
of Things to using the Grocery Manufacturers
Association (GMA)s new SmartLabel
an augmented reality product label to

Nigel Hollis Packaging meets increase nutritional transparency.

Kantar multi-functionality In a collaborative agreement with Tri-


Millward (the end of packaging?) Star Packaging, Colpac has created
Brown Gourmet 24.7, which offers a multi-
Alison Martin, Kantar functional solution, enabling food
When your washing machine orders Worldpanel manufacturers and retail own brands
its own detergent and your fridge to pack both wet and dry dishes into
plans meals around its contents FMCG is increasingly married with a single pack combination. A sleeve
expiry dates, where do consumer technological advancements to develop featuring a menu which highlights
choice and brand relationships multi-function packaging solutions. contents, secures the pack and includes
feature in everyday life? Packaging is no longer just a means to a set of chop sticks completing the
transport or contain consumer goods, take-away experience.
whether youre buying fast food to eat
out of home or stocking up for a week of Urbanisation is also propelling
family meals. innovation in packaging. City living
means smaller storage spaces,
We often see innovations on the shelf increasing demand for smaller package
begin life in the service market sector. sizes, concentrates and multiuse/
KFC India, for example, has offered multifunction products. Urbanisation
The truth is: exactly where they consumers the chance to both refuel may also increase the importance of
always did. Technology and and recharge at the same time, with the lighter and easy-to-transport products,
automation might remove some development of new packaging for its as few consumers will want to carry
individual choices, but that makes meal boxes that doubles as a charging heavy packages through crowded city
it even more important for brands unit for mobile phones. Some Pizza streets.
to understand what motivates Hut boxes meanwhile turn into a movie
consumers to influence those fewer, projector for smartphones. The future?
but perhaps bigger, decisions that Already we can see initial signs of the
they make. Coca-Cola has led the charge in bottom falling out of the packaging
giving its bottle caps a second life industry altogether, as products
Ultimately, the challenge is to by instructing consumers on how to innovate their way out of it.
make your brand the obvious repurpose them as functional items
choice before someone even such as water squirters and pencil Technology is bestowing upon the
starts thinking about shopping sharpeners. Last year, it released a industry new categories that require no
the category. Brands need to multipack box design that transforms packaging whatsoever and new formats
go beyond the utility offered by into a virtual reality viewer. Examples of which drastically reduce the need for it.
sensors, machine learning and repurposing and reusing are abound. With household penetration of single-
cloud computing to create a New Walkers Tear n Share come in a serve coffee machines at an all-time
meaningfully different experience unique bag that turns into a bowl so you high, technologists creating edible
that is woven deep into lifestyles, can open, share and enjoy right from water bottles, and global brands such
not just shopping trips. the pack with your friends and family. as Budweiser introducing Draftmark a
compact, easy-to-use draught beer
The biggest danger to brands and At the other end of the spectrum, system that fits in your fridge the era
profits is to make assumptions we can see packaging that has an of bottles and cans may be nearing
about how people will behave and intrinsic benefit from the outset. From its end.
why they do what they do. And the spoilage-detecting milk caps, ripe fruit
only solution I see to that problem detectors, responsive electronic stamp The future of packaging, therefore,
right now, is to ask. concepts and temperature-sensing might mean no packaging at all.
labels to venting control for ground

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INGREDIENTS OF GLOBAL DISRUP TION

Winning the last mile

Bryan
Gildenberg
Kantar
Retail
Whilst the Internet of Things might
mean that machines take care of
the ordering, at least on a day-
to-day basis, the factor that will
ultimately lead to mass adoption of
this technology is cracking delivery.
Getting it fast and cheap are going
to be critical to the appetite for
online and automated shopping.

Without a doubt the leader in


this space is Amazon. Through
AmazonFresh and PrimeNow it
is beginning to reset peoples
expectations about speed of
delivery. In some cities it has been
trialling deliveries that you can
get in two hours or, in the case of
a phone charger I once ordered in
Seattle, 22 minutes. When you also
consider that people are effectively
locked-in if they purchase a Prime
subscription, and that those
subscription levels are soaring, you
can see that they are some way
ahead of other retailers in winning
this race.

The alternative, and something


thats likely to appeal to a number of
smaller retailers and also to brands,
is a model like Instacart. Acting as
the front-end in partnership with
companies like Uber who have
efficient last mile distribution models
in place will be an attractive option
to stay in the game.

44

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INGREDIENTS OF GLOBAL DISRUP TION

It couldnt come at a better time for


the FMCG industry. With e-commerce
penetration rates growing steadily in
many markets around the world, online
discovery is becoming an increasing
concern for retailers and manufacturers
alike. These speech recognition tools are
Artificial intelligence developing fast and can make shopping
digitally simpler, more personalised and
meets the Internet intuitive.
of Things
Visual discovery is another useful way
Luis Simoes, Kantar to find brands you didnt even know you
Worldpanel wanted; image recognition is smoothing
out the purchasing experience. The
The development of innovations like Taobao platform in China has a camera
Amazon Dash and the Echo Dot device within the app. If consumers see
represent the starting pistol for a greater something they like, they take a picture
integration of artificial intelligence (AI) and a few seconds after will have a list
into our everyday lives. of products ready to buy. The Pinterest
Lens app works similarlypoint the
While it hides under the guise of camera at a product and it searches for
convenience, this clever marriage of AI it online.
and the Internet of Things (IoT) is much
less about what devices can do for the Amazon, Google, Facebook and Apple
individual the output and much more are shifting our expectations of whats
concerned with what increased user possible; helping people find products
interaction the input can do for the at their moment of need. As a result,
wealth of data held by the companies retail is becoming more about how we
who manufacture them. experience everyday life rather than
an event in itself. The key to success is
As machine learning becomes standard understanding how to seamlessly blend
for these in-home devices, every word into the consumers life in an easy and
spoken to digital assistants Alexa or non-intrusive way.
Google Home means insight mined,
behaviour learned and marketing better The future?
optimised. AI gives brands the opportunity to
personalise the customer journey like
never before. Currently little more than
a marketing gimmick, AI provides a
As e-commerce chance for the personalisation trend
to stretch beyond packaging, to pack
grows around size, flavours and delivery format. The
the world, online scope of this is huge: retailers can use
AI to predict demand and set prices.
discovery is However, moving from on-demand to
becoming an predictive commerce and products is
the real challenge that retailers and
increasing concern manufacturers face next. The biggest
for retailers and threat is whether the bricks and mortar
retailers can keep up, changing their
manufacturers old ways of behaving to become more
alike intuitive and adaptive in line with this
new world.

45

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GLOSSARY OF TOP 50 MOST CHOSEN BR ANDS

Manufacturer Brand Name 2016 Rank Category


Ajinomoto Ajinomoto 26 Food
Barilla Group Barilla 46 Food
Beiersdorf Nivea 35 Health and Beauty
Grupo Bimbo Bimbo 32 Food
Colgate-Palmolive Colgate 2 Health and Beauty
Palmolive 17 Health and Beauty/Home Care
Danone Danone 16 Food
Activia 41 Food
Del Monte Foods Del Monte 49 Beverages
Dr. Oetker Dr. Oetker 50 Food
Ferrero Kinder 39 Food
Indofood Indomie 8 Food
McCormick & Company McCormick 38 Food
Mondelz International Oreo 25 Food
Tang 31 Beverages
Nestl Maggi 4 Food
Nescaf 6 Beverages
Nestl 9 Food, Beverages
Milo 30 Beverages
PepsiCo Pepsi 5 Beverages
Lays 7 Food
Cheetos 36 Food
Quaker 37 Food
Doritos 40 Food
Procter & Gamble Downy 15 Home Care
Tide 19 Home Care
Pantene 21 Health and Beauty
Head & Shoulders 24 Health and Beauty
Safeguard / Escudo 43 Health and Beauty
Reckitt Benckiser Group Dettol 47 Homecare
The Coca-Cola Company Coca-Cola 1 Beverages
Sprite 20 Beverages
Fanta 33 Beverages
The Hershey Company Hersheys 44 Food
The Kraft-Heinz Company Heinz 22 Food
The Kraft-Heinz Company Kraft 23 Food
Unilever Lifebuoy 3 Health and Beauty
Sunsilk/Sedal/Seda 10 Health and Beauty
Knorr 11 Food
Dove 12 Health and Beauty
Lux 13 Health and Beauty
Sunlight 14 Home Care
Pepsodent 18 Health and Beauty
Surf 27 Home Care
Rexona 28 Health and Beauty
Vim 29 Home Care
Brooke Bond 34 Beverages
Close-Up 42 Health and Beauty
Lipton 48 Beverages
Yakult Yakult 45 Food

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E XPLORE THE DATA

EXPLORE THE DATA


You can access the data from all
the countries and sectors in this years
Brand Footprint online. Learn more
about your brands global footprint
and the most chosen brands in your
sector and market.
www.kantarworldpanel.com/brand-
footprint-ranking/#/explore-the-data

NEW FOR 2017


The 2016 ranking is our best continuous improvement process, report the brands. For instance we
estimate of brand consumer we have undertaken a number of have increased the number of brands
reach points and has undergone a enhancements across a selection that are reported in Russia, Poland
number of changes since the 2015 of our panels that have resulted and Ireland, resulting in new brands
ranking. in data reworks. The countries such as Brooke Bond included in the
with such reworks include Brazil, ranking.
In 2016, where measured, rural Germany, Mexico, Indonesia and
populations were included in Italy. The overall result is that the 2016
regional and global rankings. ranking is our most accurate
South Africa data is no longer Last but not least, in Brand reflection of global consumer
included in the ranking. The South Footprint 2017 we have continued reach points, however the changes
Africa data was previously provided to improve our data collection described above mean that in some
by GfK which has not included the and brand attribution which has cases the positions and metrics will
data for this country in 2016. In our also resulted in changes in how we have changed from previous rankings.

Number one brand by market


Ghana, Nigeria and Kenya are not included in the global ranking. The listed brand for Vietnam is the most
chosen in the top four urban areas only. The listed brand for Indonesia is the most chosen in urban areas only.

Thanks to our Data for Germany, Data for the Data for Bangladesh Kantar Worldpanel
partnership with Italy, Poland, Russia USA was and Sri Lanka was in collaboration with
Europanel we have and Turkey was provided by IRI supplied by IMRB. CTR in China
been able to offer provided by GfK Kantar Worldpanel
countries outside in collaboration with
of the Kantar IMRB in India
Worldpanel footprint

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