retail trends & priorities - pefc-keurmerk · supports fmcg brands, retail, food service,...
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Retail trends & priorities
What does this mean for packaging?
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Background ~20 yrs in retailJoined ASDA in 2007 as first Head of Corporate Sustainability➔ Created and ran Sustainability Department
➔ Wrote and managed Asda’s strategy and policies
➔ Responsible for external engagement – governments, NGOs, media
➔ Responsible for internal alignment – Board to stores across 180,000+
Regularly co-managed by Walmart➔ Created and co-directed the Global NGO Management Network
➔ Wrote policy and delivered global sustainable palm oil procurement
➔ Subject matter lead on timber & wood fibre sustainability
➔ Embedded into US Team on regular basis
Tesco 10 yrs - last position Head of Regional Corporate Affairs➔ Led Tesco’s local engagement across a third of the UK
➔ Responsible for all local stakeholders – MPs, Councils, other traders
➔ Media spokesman on local issues
I set up ETANTE
ETANTE set up in June 2014 with clear aims & principles➔ Deliver value through sustainability
➔ Unlock competitive advantage
➔ Mitigate future risks to operating model
➔ World class communications & engagement
➔Unique position having ‘been there and done it’ in-house
➔Supports FMCG brands, retail, food service, government,
academia, finance & certification
Member of PEFC Council
Board Member since 2011 – now on 2nd appointment
Fill the retailer seat on the Board
Help to advise & support around➔ New strategy development & direction of travel
➔ Engagement with corporates
➔ Branding & identity
➔ Fund raising
Inside the mind of retail
The sector & current challenges
Key themes today
Put you inside the mind of major retailers➔ What is the market like? Who is winning?
➔ Where is their strategic focus today and next 5 years?
➔ What are their sustainability plans?
UK consumer behaviours & expectations➔ What are they demanding from their shops?
➔ How much do they care about green issues
➔ Are they demanding green products?
New product development & packaging trends➔ What is the current focus of activity?
➔ What kinds of packaging trends are emerging?
➔ How can PEFC gain advantage?
New markets
• Emerging markets needs
• Westernised diets growing
• £45m gov funds to encourage
exports
• More lucrative than UK / EU?
New Product Development
• War on sugar
• C-stores growth in fresh
• Use of certification by
Discounters
• On-line packaging needs
More power to producers
• Grocery Code Adjudicator
• Consolidation = more power
• New contractual terms likely
• Greater competition for
security of supply
New marketplace
• ALDI larger than Waitrose
• Discounters = 10%
• Discounters growing fastest
• Pound shops expansion
• C-stores now ‘destination’ shops
New ways to shop
• Omni-channel growth
• Smaller baskets
prevalent
• Top up shops
normalised
• Click & collect common
New Challengers
• Collection when it
suits you
• Amazon Fresh &
Google Express
• New concept stores
Retail is changing & fast
Sustainable development case is made
In UK by 2080
4° higher summer temps
1/4 less rainfall
1 metre higher sea level
By 20203 need
50% more food & energy
30% more fresh water
~8.3 billion people
Will hit profits
Higher agri-chemical prices
Water reflect real cost
Soil health!
Costly mitigation
UK retailer environmental
goals
Key Goals
• Reduce direct emissions by 50% by 2020
• 75% reduction in fleet emissions by 2020
• Reduce water usage
• Support supply chain to reduce emissions
• ZWTL & prioritise food waste reduction
Key Goals
• Reduce direct emissions by 30% by 2020
• Use 100% natural refrigerants by 2030
• Fewer, Fuller vehicles
• 20% renewables by 2020
• Maintain 50% water reductions
• Source 35 key raw materials sustainably
Key Goals
• Reduce direct emissions by 10% by 2015
• Reduce fridge leaks to <8% by 2015
• Reduce fleet emissions by 60% by 2015
• 30% renewables by 2020
• Reduce 20m tonnes CO2 out supply chain
• Zero waste to landfill (ZWTL)
Key Goals
• Reduce direct emissions by 30% by 2020
• Lower fleet emissions YOY
• Increase renewables – PV & PPAs
• 20% water reduction by 2020
• Support supply chain efficiencies
• Zero waste to landfill (ZWTL)
5 facts about UK ‘green’
consumers1. They do care & this concern is increasing
2. They will not / cannot pay more for green products
3. Visible waste in the home drives them crazy!
4. Their loyalty is driven by CSR activity – if price, quality &
convenience are the same
5. Clever initiatives, such as in packaging, can drive sales
Customers care about green
•~ 80% in 2012/13
•> 90% today
Sustainability is a rising topic
•~3% in 2011 rank ‘a lot’
•>11% today rank ‘a lot’
•>80% talk about being green
Provenance ranks highly
•77% question food sources & sustainability
Sustainability drives buying
•>70% make this claim (all things price & quality being equal)
Food waste
•>90% waste food and so money
•~85% want retailer’s help
US research backs this up
1. Eco friendly product makes me think its higher quality
2. More likely to try products from companies who care
3. 54% will no sacrifice anything in buying eco:• 71% will not sacrifice quality
• 63% will not sacrifice price
• 46% will not sacrifice convenience
Natural Marketing Institute (NMI) has a 13 yr
study that in 2015 included 3,000 US adults
Their segmentation showed22% LOHAS Strongly care
21% Naturalites Care about buying green products
24% Drifters Newer to green but see benefits
18% Conventionals Cost is king!
15% Unconcerned No interest in eco or society
NPD & Packaging
What are the trends?
External factors are starting to
biteWRAP in the UK are thought leaders on sustainability affecting products:
Types of NPD underwayEmerging new work stream referred to as Sustainable NPD
Developing to benefit from the higher consumer demands
5 Common themes• More energy efficient cooking methods
• Packaging that’s fit for purpose
• Greater shelf life & freezability
• Seasonally grown with less waste
• Lower GHG production methods
How can wood based fibres support this innovation?
Packaging opportunitiesOptimisation• Less is more! Thicker weight just means more waste
• Ease of recyclability – paper simpler than plastics
Enhanced profitability• Shelf ready packaging
• Cube optimisation
• Temperature indicators on tertiary packs
Consumer benefits• Embedding of freshness / date code indicators
• Re-sealable packs & longer life, e.g. TetraPak
• Natural & chemical free
