Internal Entrepreneurship. Irish Centre for Business Excellence 10 th November 2005

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1 Internal Entrepreneurship Irish Centre for Business Excellence 10 th November 2005

Internal Entrepreneurship The Jacob Fruitfield Food Group Intro Some Thoughts on Entrepreneurship in Established Businesses #1 How Local Brands Can Win #2

2 Internal Entrepreneurship The Jacob Fruitfield Food Group Intro Some Thoughts on Entrepreneurship in Established Businesses #1 How Local Brands Can Win #2 Clear Strategy..but room for Entrepreneurial Opportunism #3 Brand Issues: Quality Brand Thinking The Role of Innovation Effective/Efficient Marketing Activity

3 Personal Background Education/Awards: St Vincent s CBS, Glasnevin, Dublin University College Dublin (B.Comm., M.B.S.) Bord Bia Food Entrepreneur Award 2004/5 Fellow of the Marketing Institute of Ireland 2005 Ernst & Young Industry Entrepreneur of the Year 2005 Career History: Marketing Assistant Wiggin s Teape 1984 Brand Manager Batchelors (Northern Foods) 1986 Marketing Manager Fox s Biscuits (Northern Foods) 1988 Marketing Director Cantrell & Cochrane Ireland 1991 Marketing Director Irish Biscuits/Jacob s (Groupe Danone) 1994 Managing Director Evian/Volvic UK&Ireland (Groupe Danone) 1997 Managing Director Fox s Biscuit (Northern Foods) 1999 Managing Director Kellogg s UK & Ireland 2001 Managing Director FruitfieldFoods 2002 Chief Executive Jacob Fruitfield Food Group 2004

4 Intro to the JFFG Founded as an independent business in July 2002 by its four shareholders. 100% Irish owned, with substantial bank debt. Key steps: Acquired Nestle Ireland s loss making ambient foods business (Chef, Fruitfield, Silvermints, Scots Clan etc) in July Acquired Jacob s/irish Biscuits from Groupe Danone in Acquired Real Irish Food Company in Agreed 20 year brand licence on Bewley s brand and A distribution agreement on Lir Chocolates in A test market Joint Venture with Dafgaard, Sweden on a new range of frozen handheld snacks branded Billy s Total annual sales 105m in 2005, EBITDA of 12.5m, directly employing 550 people at three sites.

5 JFFG Locations/Sites

7 Selected Market Positions in Ireland SECTOR BRAND SHARE RANKING Marmalade Fruitfield, Old Time Irish, Little Chip 50% No. 1 Sauces Total Chef 39% No. 1 Ketchup Chef 36% No. 2 Salad Acc ments Chef 22% No. 1 Dry Baby Foods Liga 45% No. 1 Mint Confectionery Silvermints 24% No. 2 Cream Biscuits Boland s, Jacob s Cream Crackers 65% No.1 Fig Rolls Jacob s 92% No. 1 Choc Biscuits Elite, Chocolate Kimberley 30% No. 1 Mallows Kimberley, Mikado, Coconut Creams 90% No. 1 Savoury Biscuits Jacob s Cream Crackers, TUC, Ritz 53% No. 1 Assortments USA, Afternoon Tea 52% No. 1 Biscuits Total Jacob s, Boland s 36% No. 1 Fresh Coffee Bewley s 23% No. 1

8 Some Thoughts on Entrepreneurship in Established Businesses:

9 Some Thoughts on Entrepreneurship in Established Businesses: #1 How Local Brands Can Win

10 AMBIENT FOOD BRAND ANALYSIS Irish Owned Foreign Owned Irish Produced Imported

11 AMBIENT FOOD BRAND ANALYSIS Irish Produced Imported Irish Owned Chef Club Orange Fruitfield Bewley s Jacob s Flahavans Silvermints Chivers Hunky Dory s Lir Ballygowan Roma TUC Don Carlos Foreign Owned Hellmann's Erin Coke Lyon s Tea 7 Up Cadbury s (e.g. Time Out) Hula Hoops Maxwell House Heinz Volvic Cadbury s McVities Kellogg s Polo Weetabix

12 AMBIENT FOOD BRAND ANALYSIS Irish Produced Imported Irish Owned Chef Club Orange Fruitfield Bewley s Jacob s Flahavans Silvermints Chivers Hunky Dory s Lir Ballygowan Roma TUC Don Carlos Foreign Owned Hellmann's Erin Coke Lyon s Tea 7 Up Cadbury s (e.g. Time Out) Hula Hoops Maxwell House Heinz Volvic Cadbury s McVities Kellogg s Polo Weetabix

13 Our Competitive Advantage as the Leading Local Food Company Closer to Irish Consumers / Irish Trade Customers. Responding with appropriate solutions to local needs. Being faster, local decision making. Using resources, funds more effectively. Taking advantage of networks Optimising local brands with real heritage

14 How Local Brand Can Win We aim to be best in the world at: optimising the performance of local brands.

16 ALDI

17 ALDI LIDL

18 ALDI LIDL ENTRANCE

19 Some Thoughts on Entrepreneurship in Established Businesses: #2 Clear Strategy..but room for Entrepreneurial Opportunism

20 Strategic Planning Process Clearly Stated Vision/Aim Defined Key Business Drivers Profitable Business Growth Operational Excellence Pride in Achievement Robust Balanced Scorecard Measurements

21 Culture Statement Values: Excellence Pride in Achievements Openness and Involving Passion for food and brands Pace and Urgency Behavourial Competencies: Accountable Driven/Entrepreneurial Results Orientated Disciplined/Professional

22 A Comment on Pace/Urgency It s not good to be gaining speed if your losing altitude at the same time Padraig O Ceidigh, Aer Arann

23 Crucial Ingredient: Freedom to Act Constantly seeking new business e.g. coffee, frozen foods. Robust professional processes, but know when to break the rules! Quality of management team is crucial.

24 Some Thoughts on Entrepreneurship in Established Businesses: #3 Brand Issues: Quality Brand Thinking The Role of Innovation Effective/Efficient Marketing Activity

25 Quality of Brand Thinking Kellogg s versus Jacob Fruitfield: What s different? The planning process/analysis The resources The timeframe/pace The use of research

26 Quality of Brand Thinking Kellogg s versus Jacob Fruitfield: What s different? The planning process/analysis The resources The timeframe/pace The use of research What s not? The depth of thinking The quality of communication Presentation of packs

27 The Role of Innovation NPD at Nestle Ireland and at Jacob s/danone. Role of Innovation at JFFG: Growth objectives Brand repositioning Make or Buy Decisions Our Structures and Processes

28 The JFFG Innovation Stage-Gate Process Idea Generation Feasibility Development Launch

29 The JFFG Innovation Stage-Gate Process Idea Generation Feasibility Development Launch

30 The JFFG Innovation Stage-Gate Process Idea Generation Feasibility Development Launch Number of Projects

31 GTI Health & Snacking x% Est NPD Sales x% Act NPD Sales Ideas Idea screening x,xxx,000 NSV Idea Generation Functional Biscuits Fortified Biscuits xxx,000 NSV Business Case over view Liga Milk Breaks Jacob s Healthy Cracker Jacob s Light Development Jacobs Gluten Free Jacob s Mediterraneo xxx,000 NSV Pre- launch review Liga Snack Pack Launch Tuc Salt & Pepper Products Action Zone - Push new projects into development

32 Some Recent Innovations (1)

33 Some Recent Innovations (2)

34 Some Recent Innovations (3)

35 Some Recent Innovations (4)

36 A Recent Renovation

37 Effective/Efficient Marketing Spend for Entrepreneurial Businesses

38 Effective/Efficient Marketing Spend for Entrepreneurial Businesses What Multinationals Do: Buy research to cover their arse! Pay daft fees to suppliers/agencies Overman marketing teams

39 Effective/Efficient Marketing Spend for Entrepreneurial Businesses What Multinationals Do: Buy research to cover their arse! Pay daft fees to suppliers/agencies Overman marketing teams What Entrepreneurial Firms Do: Pay for results when possible Saving the cents, negotiate like a retailer! Make better management judgements, unsupported Minimise non value added activities

40 Key Messages/Conclusion Local Brands Can Win! Local brands must be faster, more responsive and better than the imports. Entrepreneurial businesses live with contradictions: A clarity of strategy but retain space/freedom to be opportunistic. Defined KPI s but flexible enough to find new ways Robust professional processes but permission to break the rules Entrepreneurial businesses need to know when to take on the big guys

43 Job Vacancies at National Account Controller Senior Brand Manager Management Accountant Group HR Manager

44 Thanks for Listening!

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