Omnichannel Transformation and Connected Experiences with Alberto Kechler, Arla Foods

1
01:00:00,229 --> 01:00:02,265
Welcome to the ecommert podcast, the

2
01:00:02,265 --> 01:00:04,567
definitive platform for global CPG and

3
01:00:04,567 --> 01:00:05,702
e-commerce executives.

4
01:00:06,603 --> 01:00:08,938
Hosted by Mert Damlapinar, a top voice on

5
01:00:08,938 --> 01:00:11,741
LinkedIn, we bring insights from top CPG and

6
01:00:11,741 --> 01:00:14,143
MarTech leaders in e-commerce, retail media,

7
01:00:14,477 --> 01:00:16,312
AI, and digital shelf strategies.

8
01:00:17,180 --> 01:00:19,015
If you find our content valuable, please hit

9
01:00:19,015 --> 01:00:21,084
subscribe and leave a five-star review.

10
01:00:21,451 --> 01:00:22,352
It's completely free for

11
01:00:22,352 --> 01:00:23,987
you, but very valuable for us.

12
01:00:24,587 --> 01:00:26,723
In return, we promise to bring many more

13
01:00:26,723 --> 01:00:28,124
distinguished guests in the future,

14
01:00:28,257 --> 01:00:30,727
like our amazing guest today. This episode

15
01:00:30,727 --> 01:00:31,527
is brought to you by

16
01:00:31,527 --> 01:00:32,795
Commerce Media Brands Summit,

17
01:00:33,062 --> 01:00:35,198
Atlanta, the premier event for you to arm

18
01:00:35,198 --> 01:00:36,165
yourself with strategies

19
01:00:36,165 --> 01:00:37,634
to adopt and implement new

20
01:00:37,634 --> 01:00:39,836
technologies to grow market share and drive

21
01:00:39,836 --> 01:00:41,671
profit. Retail media

22
01:00:41,671 --> 01:00:42,805
pioneers and visionaries

23
01:00:42,805 --> 01:00:44,440
will guide you through two days of learning

24
01:00:44,440 --> 01:00:45,708
and networking, helping

25
01:00:45,708 --> 01:00:46,976
you build your commerce media

26
01:00:46,976 --> 01:00:49,445
toolkit. This episode features Alberto

27
01:00:49,445 --> 01:00:50,813
Keckler, global head of

28
01:00:50,813 --> 01:00:51,981
e-commerce for Arla Foods.

29
01:00:52,582 --> 01:00:54,751
Alberto turns complex omnichannel challenges

30
01:00:54,751 --> 01:00:55,485
into seamless,

31
01:00:55,485 --> 01:00:56,919
connected consumer experiences.

32
01:00:57,687 --> 01:01:00,123
Get actionable insights on retail media and

33
01:01:00,123 --> 01:01:02,025
the digital shelf to drive real growth.

34
01:01:02,325 --> 01:01:03,960
Hello, everyone. Welcome to the e-commerce

35
01:01:03,960 --> 01:01:06,429
podcast. Today, we're at Arla Foods offices

36
01:01:06,462 --> 01:01:08,297
here in Netherlands, lovely downtown

37
01:01:08,297 --> 01:01:09,332
Utrecht, and we're with

38
01:01:09,332 --> 01:01:11,100
Alberto Kechler, the global head

39
01:01:11,100 --> 01:01:13,336
of e-commerce for Arla Foods. Alberto, thank

40
01:01:13,336 --> 01:01:14,470
you very much for having us.

41
01:01:14,771 --> 01:01:15,805
Much welcome. Look

42
01:01:15,805 --> 01:01:16,539
forward to the conversation.

43
01:01:17,140 --> 01:01:18,941
I was planning to get together with you for

44
01:01:18,941 --> 01:01:20,777
several months now since Q3,

45
01:01:20,777 --> 01:01:23,146
24. I'm glad we finally made it in this

46
01:01:23,146 --> 01:01:24,814
cold, nice European winter.

47
01:01:25,581 --> 01:01:25,782
Absolutely.

48
01:01:26,182 --> 01:01:29,686
So when I was in the US two years ago before

49
01:01:29,686 --> 01:01:30,520
we moved to the Netherlands,

50
01:01:31,254 --> 01:01:32,822
I heard Arla Foods a couple of times in

51
01:01:32,822 --> 01:01:33,923
those shows, Indian

52
01:01:33,923 --> 01:01:35,625
conferences, and I realized that

53
01:01:35,625 --> 01:01:37,226
it's a very good quality product, but not

54
01:01:37,226 --> 01:01:38,194
many people in North

55
01:01:38,194 --> 01:01:40,596
America that I know at least talk

56
01:01:40,596 --> 01:01:43,199
to, familiar with this great dairy company.

57
01:01:43,466 --> 01:01:45,168
Can you walk us through about Arla Foods,

58
01:01:45,168 --> 01:01:47,203
which is a magnificent brand footprint here

59
01:01:47,203 --> 01:01:48,037
in Europe, I realize?

60
01:01:48,404 --> 01:01:50,440
Sure, sure. No, absolutely. Arla is one of

61
01:01:50,440 --> 01:01:51,908
the biggest dairy companies in the world.

62
01:01:52,642 --> 01:01:54,811
It's the largest from an

63
01:01:54,811 --> 01:01:56,279
organic production perspective.

64
01:01:56,979 --> 01:02:00,149
It's a 14 billion business, home to some of

65
01:02:00,149 --> 01:02:03,152
the big brands. We have 4 billion brands,

66
01:02:03,152 --> 01:02:04,420
one of them we have right behind you,

67
01:02:04,420 --> 01:02:05,354
Lurpak. Castello is

68
01:02:05,354 --> 01:02:06,589
another massive one, Puck in the

69
01:02:06,589 --> 01:02:09,792
Middle East. It's a cooperative, not many

70
01:02:09,792 --> 01:02:10,793
know that, which means

71
01:02:10,793 --> 01:02:12,195
that it's owned by 12,000

72
01:02:12,228 --> 01:02:14,330
farmers. The model is very simple. The

73
01:02:14,330 --> 01:02:16,466
profits are then shared back with the

74
01:02:16,466 --> 01:02:17,567
farmers based on their

75
01:02:18,067 --> 01:02:22,271
milk contribution, which is a fantastic

76
01:02:22,271 --> 01:02:24,340
model that we as Arla

77
01:02:24,340 --> 01:02:26,008
employees are very, very proud of.

78
01:02:26,008 --> 01:02:28,978
12,000 producers. That's a massive

79
01:02:28,978 --> 01:02:31,447
cooperation network. And I

80
01:02:31,447 --> 01:02:32,648
got to know some of the products

81
01:02:32,648 --> 01:02:34,584
like Castello, I'm a cheese fan, probably

82
01:02:34,584 --> 01:02:35,485
that's why we moved to the

83
01:02:35,485 --> 01:02:36,819
Netherlands, but this bread

84
01:02:36,819 --> 01:02:38,788
over, I mean butter here is really, really

85
01:02:38,788 --> 01:02:41,390
lightweight and tasty, and my wife loves it.

86
01:02:41,390 --> 01:02:44,827
It's a great product. I like it. And I love

87
01:02:44,827 --> 01:02:46,596
to see some of the production facilities,

88
01:02:46,729 --> 01:02:48,631
maybe we can get to Denmark one day or

89
01:02:48,631 --> 01:02:50,299
somewhere. We're raised.

90
01:02:51,601 --> 01:02:53,803
But I want to come back to your story

91
01:02:53,803 --> 01:02:56,606
because I know you, I follow

92
01:02:56,606 --> 01:02:58,107
your footsteps at Mondelēz.

93
01:02:58,107 --> 01:02:59,842
I heard great things about you when I joined

94
01:02:59,842 --> 01:03:01,144
the organization. And

95
01:03:01,144 --> 01:03:02,545
then you took over with Arla

96
01:03:02,879 --> 01:03:05,681
and took e-commerce helm. And now you're in

97
01:03:05,681 --> 01:03:07,884
a much bigger scale and much different role.

98
01:03:08,351 --> 01:03:10,419
Can you walk us through this long journey,

99
01:03:10,887 --> 01:03:11,988
how you started and

100
01:03:11,988 --> 01:03:12,855
where you ended up in the

101
01:03:12,889 --> 01:03:15,358
e-commerce landscape? Yeah, sure. I think

102
01:03:15,358 --> 01:03:16,826
you and I just think we

103
01:03:16,826 --> 01:03:17,927
just missed each other the

104
01:03:17,927 --> 01:03:21,631
years I was at Mondelēz. Sadly, I've been

105
01:03:21,631 --> 01:03:23,132
in e-commerce for 15

106
01:03:23,132 --> 01:03:25,401
years. I started my journey

107
01:03:25,401 --> 01:03:29,505
in e-commerce back in 2008 at Nestle in

108
01:03:29,505 --> 01:03:31,641
Italy. I'll talk a little

109
01:03:31,641 --> 01:03:32,608
bit about the journey of

110
01:03:32,608 --> 01:03:34,143
e-commerce because I think I've seen it all

111
01:03:34,143 --> 01:03:35,444
from my years in

112
01:03:35,444 --> 01:03:37,346
e-commerce, frankly speaking. That was

113
01:03:37,380 --> 01:03:39,849
back then when I was looking after, believe

114
01:03:39,849 --> 01:03:40,783
it or not, a direct

115
01:03:40,783 --> 01:03:43,686
consumer website that we had in

116
01:03:43,820 --> 01:03:48,124
Italy under the brand of Shigusto, the

117
01:03:48,124 --> 01:03:50,259
portion coffee system,

118
01:03:51,194 --> 01:03:52,461
cousin if you want to talk to

119
01:03:52,461 --> 01:03:54,964
you, Nespresso. I transitioned then

120
01:03:54,964 --> 01:03:57,767
after a few years in the UK where I was

121
01:03:57,767 --> 01:03:58,467
leading the e-commerce

122
01:03:58,467 --> 01:04:02,205
business in the UK and then in Mondelēz

123
01:04:02,205 --> 01:04:03,206
for four and a half

124
01:04:03,206 --> 01:04:04,373
years, which was part of the

125
01:04:04,874 --> 01:04:07,944
European team. I was leading the growth

126
01:04:07,944 --> 01:04:08,811
elements of the new

127
01:04:08,811 --> 01:04:10,279
business model and the new business

128
01:04:10,279 --> 01:04:12,648
development model, which was super exciting.

129
01:04:13,115 --> 01:04:14,350
I just posted some

130
01:04:14,350 --> 01:04:16,152
numbers this morning in the

131
01:04:16,152 --> 01:04:18,087
confectionery category. Mondelēz is

132
01:04:18,087 --> 01:04:19,488
leading by far, I think

133
01:04:19,488 --> 01:04:20,990
50% ahead of the competition.

134
01:04:21,624 --> 01:04:23,659
So whatever you guys implemented back then

135
01:04:23,659 --> 01:04:24,627
and we took over and

136
01:04:24,627 --> 01:04:26,729
built upon it still drives the

137
01:04:26,729 --> 01:04:29,165
engine. It was great fun. We played a lot

138
01:04:29,165 --> 01:04:30,032
with a lot of direct

139
01:04:30,032 --> 01:04:31,834
consumers, a category in the UK,

140
01:04:31,934 --> 01:04:34,470
which was great phenomenally well. It was

141
01:04:34,470 --> 01:04:36,906
the last part of probably

142
01:04:36,906 --> 01:04:38,574
the phase which led into the

143
01:04:38,641 --> 01:04:40,610
COVID period and the hyper growth. So I

144
01:04:40,610 --> 01:04:41,978
think the foundations were strong and

145
01:04:41,978 --> 01:04:42,812
obviously through the

146
01:04:42,812 --> 01:04:46,415
central event of COVID that came in. I've

147
01:04:46,415 --> 01:04:48,284
been with Arla for four and a

148
01:04:48,284 --> 01:04:49,952
half years now. I love it here.

149
01:04:50,453 --> 01:04:53,422
I have the privilege of leading an

150
01:04:53,422 --> 01:04:55,458
acceleration unit. There are

151
01:04:55,458 --> 01:04:57,560
four talented people that I work

152
01:04:57,627 --> 01:05:00,997
with in my team. It boils down to a few

153
01:05:00,997 --> 01:05:02,565
simple things. We are

154
01:05:02,565 --> 01:05:04,600
essential vectors, which means

155
01:05:04,600 --> 01:05:06,903
that the vast majority of the time that we

156
01:05:06,903 --> 01:05:07,603
spend is in building

157
01:05:07,603 --> 01:05:10,439
capabilities. Don't forget that our

158
01:05:10,439 --> 01:05:12,708
footprint is global, which means that there

159
01:05:12,708 --> 01:05:14,844
are varying levels of

160
01:05:14,844 --> 01:05:16,779
maturity among the markets,

161
01:05:17,046 --> 01:05:20,383
whether it's in Germany, Finland or in Mina

162
01:05:20,383 --> 01:05:21,817
because we have big business, for example,

163
01:05:21,851 --> 01:05:24,153
in UAE and KSA there. So a lot of the time

164
01:05:24,153 --> 01:05:26,088
that we spend is really

165
01:05:26,088 --> 01:05:27,556
accelerating the capabilities

166
01:05:27,556 --> 01:05:30,526
of people. The second part is obviously we

167
01:05:30,526 --> 01:05:31,460
are responsible for the

168
01:05:31,460 --> 01:05:32,695
business strategy. We define

169
01:05:32,695 --> 01:05:34,730
the strategy from an e-commerce perspective.

170
01:05:34,730 --> 01:05:37,099
I was brought in to define the strategy from

171
01:05:37,099 --> 01:05:39,068
an hour perspective off the back of that

172
01:05:39,068 --> 01:05:40,403
growth that came through

173
01:05:40,403 --> 01:05:42,805
from COVID naturally in some of

174
01:05:42,805 --> 01:05:45,841
the key markets for us. We also work in

175
01:05:45,841 --> 01:05:46,976
target setting and

176
01:05:46,976 --> 01:05:48,444
performance management at our level.

177
01:05:48,477 --> 01:05:50,212
It's an important point of what we do. Our

178
01:05:50,212 --> 01:05:52,214
business is quite sizable from an e-commerce

179
01:05:52,315 --> 01:05:54,383
perspective. It's about 8% of the total

180
01:05:54,383 --> 01:05:55,751
turnover is online. That's a

181
01:05:55,751 --> 01:05:57,053
good share. Which is a good

182
01:05:57,053 --> 01:05:59,021
share of the business. We're getting close

183
01:05:59,021 --> 01:06:00,356
to that 10%, which I think

184
01:06:00,356 --> 01:06:02,224
is where it triggers a lot of

185
01:06:02,224 --> 01:06:04,927
further discussion in a broader business.

186
01:06:06,228 --> 01:06:07,396
And we are well beyond that

187
01:06:07,396 --> 01:06:08,431
in some of the key markets

188
01:06:08,431 --> 01:06:10,967
like the UK, for example. And then the third

189
01:06:10,967 --> 01:06:11,967
element is interesting

190
01:06:11,967 --> 01:06:13,102
because it's something that

191
01:06:13,669 --> 01:06:15,671
wasn't necessarily there when I started the

192
01:06:15,671 --> 01:06:16,505
role. It became a

193
01:06:16,505 --> 01:06:18,140
component, a much more important

194
01:06:18,240 --> 01:06:19,875
component and it's the whole channel

195
01:06:19,875 --> 01:06:20,810
operation perspective.

196
01:06:21,110 --> 01:06:22,411
So think about technology,

197
01:06:22,979 --> 01:06:24,547
think about technology and development. So

198
01:06:24,547 --> 01:06:26,449
kind of a product owner role if you want,

199
01:06:26,782 --> 01:06:28,651
which I also know that Neil spoke about, but

200
01:06:28,651 --> 01:06:30,052
I see exactly the same in

201
01:06:30,052 --> 01:06:32,521
our central accent as well.

202
01:06:32,521 --> 01:06:34,123
And they are the same in the same way as

203
01:06:34,123 --> 01:06:35,291
Nestle has done. So it's an

204
01:06:35,291 --> 01:06:36,325
important part that's becoming

205
01:06:36,325 --> 01:06:37,927
much more important for us in terms of

206
01:06:37,927 --> 01:06:39,395
defining the channel

207
01:06:39,395 --> 01:06:41,897
operations. We do a lot of digital

208
01:06:41,897 --> 01:06:43,466
chef analytics, for example. It's an

209
01:06:43,466 --> 01:06:44,734
important part of analytics.

210
01:06:45,267 --> 01:06:46,936
I'm glad you mentioned the term

211
01:06:47,670 --> 01:06:50,005
your role is relevant to product ownership

212
01:06:50,005 --> 01:06:51,640
because that's something we

213
01:06:51,841 --> 01:06:54,744
proponently defend a lot of times. And the

214
01:06:54,744 --> 01:06:56,645
digital capabilities building is not just

215
01:06:56,645 --> 01:06:59,215
playbooks or recommendations. You need to be

216
01:06:59,215 --> 01:07:00,049
owner of those

217
01:07:00,049 --> 01:07:01,951
capabilities and convince be used

218
01:07:01,951 --> 01:07:03,986
on the business impact. And I think having

219
01:07:03,986 --> 01:07:04,987
someone with commerce

220
01:07:04,987 --> 01:07:06,489
leadership, commerce background like

221
01:07:06,489 --> 01:07:09,291
yourself and many other folks in our

222
01:07:09,291 --> 01:07:10,826
network, this helps to

223
01:07:10,826 --> 01:07:12,695
convince people who is on the market,

224
01:07:12,795 --> 01:07:14,930
who's on the ground and trying to implement

225
01:07:14,930 --> 01:07:17,233
COEs future vision and

226
01:07:17,233 --> 01:07:18,367
implementation recommendation.

227
01:07:18,968 --> 01:07:22,271
I love it. But now I want to take us down to

228
01:07:22,271 --> 01:07:23,906
the ground from 10,000

229
01:07:23,906 --> 01:07:26,409
view. I want to take us through

230
01:07:26,409 --> 01:07:28,611
the cartography, give us some landscape

231
01:07:28,611 --> 01:07:30,980
analysis because now we're

232
01:07:30,980 --> 01:07:32,314
both I think approaching to two

233
01:07:32,314 --> 01:07:34,383
decades on our journeys. So we're Generation

234
01:07:34,383 --> 01:07:36,786
X, proud Gen X here. And we

235
01:07:36,786 --> 01:07:37,920
worked in, we were fortunate

236
01:07:38,087 --> 01:07:40,222
to work in some leading companies. But I

237
01:07:40,222 --> 01:07:40,890
want you to hear your

238
01:07:40,890 --> 01:07:42,925
opinion. Now you're working on a

239
01:07:42,925 --> 01:07:45,327
global portfolio, very agile, very savvy

240
01:07:45,327 --> 01:07:47,029
team. Where do you see the

241
01:07:47,029 --> 01:07:48,431
current e-commerce landscape

242
01:07:48,564 --> 01:07:51,367
and how our love foods in a very interesting

243
01:07:51,367 --> 01:07:54,203
categories fits in this landscape? Look,

244
01:07:54,203 --> 01:07:56,705
as I said earlier to you, I think because of

245
01:07:56,705 --> 01:07:57,773
how long we've been in

246
01:07:57,773 --> 01:07:58,874
this space, I think we've seen

247
01:07:58,874 --> 01:08:01,577
it all. We see the early inception. I

248
01:08:01,577 --> 01:08:04,580
mentioned when probably back

249
01:08:04,580 --> 01:08:07,216
in 2010, pre-2010, obviously

250
01:08:07,383 --> 01:08:09,952
it was a very, very different landscape than

251
01:08:09,952 --> 01:08:10,786
it is now. Obviously

252
01:08:10,786 --> 01:08:12,521
advancement in consumer behavior,

253
01:08:12,788 --> 01:08:14,723
the completely dramatically shift with the

254
01:08:14,723 --> 01:08:15,591
landscape per se

255
01:08:15,591 --> 01:08:17,960
technology as a follow up on that.

256
01:08:18,727 --> 01:08:21,831
And then in essence, the rise of a lot of

257
01:08:21,831 --> 01:08:23,799
incumbents and digital first technology,

258
01:08:24,066 --> 01:08:26,535
they've completely shifted the last 20

259
01:08:26,535 --> 01:08:28,571
years. I've seen it all.

260
01:08:28,838 --> 01:08:30,639
I've seen the inception of it.

261
01:08:30,639 --> 01:08:33,909
I've seen big FMCG starting to fiddle with

262
01:08:33,909 --> 01:08:35,511
direct to consumers back

263
01:08:35,511 --> 01:08:36,212
in the old days. We don't

264
01:08:36,245 --> 01:08:38,981
understand what it was. I've seen the

265
01:08:38,981 --> 01:08:41,584
acceleration into the omnichannel piece.

266
01:08:42,885 --> 01:08:43,686
Previous, if you want

267
01:08:43,686 --> 01:08:47,323
to look to what COVID was, we started seeing

268
01:08:47,323 --> 01:08:49,391
big players starting to

269
01:08:49,391 --> 01:08:51,093
really work and optimize in

270
01:08:51,093 --> 01:08:55,464
the digital shelf. That was back in 2015,

271
01:08:55,931 --> 01:08:57,399
your day 2016, when you

272
01:08:57,399 --> 01:08:59,668
saw that. I've seen the big

273
01:09:00,336 --> 01:09:02,872
dramatic shift that came through COVID,

274
01:09:02,872 --> 01:09:04,240
obviously in all categories,

275
01:09:04,640 --> 01:09:05,808
irrespective of where you were.

276
01:09:06,876 --> 01:09:10,613
I often say that from not necessarily within

277
01:09:10,613 --> 01:09:12,348
the big decision room to

278
01:09:12,348 --> 01:09:13,749
being sat at the full front

279
01:09:13,749 --> 01:09:15,951
of the decision. We've been called in to

280
01:09:15,951 --> 01:09:17,086
have discussions around,

281
01:09:17,319 --> 01:09:18,888
look, my business has gone

282
01:09:18,888 --> 01:09:21,323
from here to zero in an offline perspective.

283
01:09:21,590 --> 01:09:22,525
And on the opposite side

284
01:09:22,525 --> 01:09:24,460
from zero to your online,

285
01:09:24,460 --> 01:09:26,395
help us define what we need to do moving

286
01:09:26,395 --> 01:09:28,197
forward. But what's really

287
01:09:28,197 --> 01:09:29,231
interesting for me is there's

288
01:09:29,231 --> 01:09:32,134
what's happening from a perspective of the

289
01:09:32,134 --> 01:09:34,136
correction of the hypergrav falling COVID.

290
01:09:34,170 --> 01:09:36,472
Right now, we're in a situation where what

291
01:09:36,472 --> 01:09:38,941
you see is the shift to the

292
01:09:38,941 --> 01:09:40,176
grocery line has happened.

293
01:09:40,809 --> 01:09:43,445
We're still seeing a growth level that's

294
01:09:43,445 --> 01:09:44,847
corrected clearly from

295
01:09:44,847 --> 01:09:46,782
the back of what it was,

296
01:09:46,782 --> 01:09:49,752
the pandemic surge that was there. We see

297
01:09:49,752 --> 01:09:50,753
the rapid transformation

298
01:09:50,753 --> 01:09:53,022
of CPGs with the investment

299
01:09:53,022 --> 01:09:55,190
in the AI. We'll talk a little bit properly.

300
01:09:56,525 --> 01:09:57,893
And then we see the

301
01:09:57,893 --> 01:09:59,762
fragmentation. We see multiple

302
01:09:59,995 --> 01:10:02,731
sub channels. We see multiple areas of

303
01:10:02,731 --> 01:10:03,832
growth within the broader

304
01:10:03,832 --> 01:10:07,770
channel. So we're back in

305
01:10:07,770 --> 01:10:09,538
a phase where we've really seen this mature

306
01:10:09,538 --> 01:10:12,241
in perspective. Now that brings complexity.

307
01:10:13,676 --> 01:10:16,145
That has brought a lot of complexity because

308
01:10:16,145 --> 01:10:18,581
often enough what you're seeing is that

309
01:10:18,948 --> 01:10:21,083
within our perspective, we often talk about

310
01:10:21,083 --> 01:10:22,084
winning offline

311
01:10:22,084 --> 01:10:23,752
requires winning online first.

312
01:10:24,186 --> 01:10:26,388
The reason is very simple. We know the

313
01:10:26,388 --> 01:10:27,623
consumers more and more are

314
01:10:27,623 --> 01:10:28,824
starting the journey online.

315
01:10:29,291 --> 01:10:30,859
And often enough, depending on your

316
01:10:30,859 --> 01:10:32,228
categories, it might not be

317
01:10:32,228 --> 01:10:33,329
to the extent of some of our

318
01:10:33,329 --> 01:10:35,331
categories, but in some other verticals is

319
01:10:35,331 --> 01:10:36,365
very much so the case.

320
01:10:36,865 --> 01:10:37,933
We're seeing consumers now

321
01:10:38,000 --> 01:10:39,902
closing the loop in terms of closing that

322
01:10:39,902 --> 01:10:40,970
deal when it comes to

323
01:10:40,970 --> 01:10:42,271
action buying online. So we see

324
01:10:42,304 --> 01:10:44,106
more actually starting the journey and more

325
01:10:44,106 --> 01:10:44,840
finishing the journey

326
01:10:44,840 --> 01:10:46,775
online. We're seeing an

327
01:10:46,775 --> 01:10:49,211
increased e-commerce fragmentation, whether

328
01:10:49,211 --> 01:10:50,045
that's from a market

329
01:10:50,045 --> 01:10:51,680
perspective, whether that's from a

330
01:10:51,680 --> 01:10:53,649
channel perspective. As I said earlier, that

331
01:10:53,649 --> 01:10:54,149
brings a lot of

332
01:10:54,149 --> 01:10:56,785
complexity. And we've seen continuous

333
01:10:56,952 --> 01:11:00,489
shifts of consumers' perceptions, right? And

334
01:11:00,489 --> 01:11:03,425
expectations of the channel, convenience,

335
01:11:03,626 --> 01:11:07,262
hyper-convenous personalization. At the same

336
01:11:07,262 --> 01:11:08,464
time, all of this,

337
01:11:08,697 --> 01:11:09,865
which I think is where the

338
01:11:09,865 --> 01:11:12,601
complexity and the challenge is brought, is

339
01:11:12,601 --> 01:11:13,469
actually from an

340
01:11:13,469 --> 01:11:14,770
incumbent brand perspective,

341
01:11:14,770 --> 01:11:17,339
which in general and I'm generalizing brands

342
01:11:17,339 --> 01:11:19,008
tend to over index from a

343
01:11:19,008 --> 01:11:19,808
brand market perspective

344
01:11:20,643 --> 01:11:24,380
online versus in the store. It has brought a

345
01:11:24,380 --> 01:11:26,682
lot of pressure on the bottom line.

346
01:11:26,815 --> 01:11:31,120
Yes. The margin on the channel, the margin

347
01:11:31,120 --> 01:11:32,488
in the channel are

348
01:11:32,488 --> 01:11:33,922
diluted. I'm generalizing,

349
01:11:33,922 --> 01:11:37,393
but I think I'm not far off the scale. That

350
01:11:37,393 --> 01:11:39,561
means that for us, from our perspective,

351
01:11:39,762 --> 01:11:42,665
we really need to go into the details of how

352
01:11:42,665 --> 01:11:46,168
do we reprioritize. Reprioritize is meaning,

353
01:11:46,435 --> 01:11:48,737
making the right choices, right? It's about

354
01:11:48,737 --> 01:11:51,206
all about how do we go

355
01:11:51,206 --> 01:11:52,141
about the way to play and the

356
01:11:52,174 --> 01:11:54,310
how to weigh choices, where to play, how to

357
01:11:54,310 --> 01:11:55,978
win, and focusing on

358
01:11:55,978 --> 01:11:57,446
fewer big bets, right? There's

359
01:11:57,446 --> 01:12:00,849
understanding from a present future, where

360
01:12:00,849 --> 01:12:01,650
is the growth going to

361
01:12:01,650 --> 01:12:02,751
come from, and from a future

362
01:12:02,751 --> 01:12:04,920
back perspective at the same level. So we

363
01:12:04,920 --> 01:12:06,488
are really working on

364
01:12:06,488 --> 01:12:08,057
fewer bigger bets. The mantra

365
01:12:08,057 --> 01:12:10,092
for me and my team this year is focusing on

366
01:12:10,092 --> 01:12:11,060
fewer bigger bets.

367
01:12:11,060 --> 01:12:13,328
Impactful and less effort, less

368
01:12:13,328 --> 01:12:15,130
fragmented bets. Exactly, because the

369
01:12:15,130 --> 01:12:15,898
resources are limited,

370
01:12:16,198 --> 01:12:17,266
right? And they're already very

371
01:12:17,299 --> 01:12:19,168
margin-delucative channels. So if I look at

372
01:12:19,168 --> 01:12:20,703
it from an online to online perspective,

373
01:12:21,704 --> 01:12:23,572
and the retail media piece, which plays an

374
01:12:23,572 --> 01:12:25,374
important component, clearly has shifted

375
01:12:25,374 --> 01:12:27,342
dramatically at focus and focuses on fewer

376
01:12:27,342 --> 01:12:29,345
bigger bets. The other big

377
01:12:29,345 --> 01:12:31,113
shift that we're doing from

378
01:12:31,447 --> 01:12:33,682
our perspective is really the management of

379
01:12:33,682 --> 01:12:34,783
the omni-channel wide, the

380
01:12:34,783 --> 01:12:36,185
incremental omni-channel wide.

381
01:12:36,885 --> 01:12:38,420
Because if I look at it in isolation from a

382
01:12:38,420 --> 01:12:39,121
channel perspective,

383
01:12:39,121 --> 01:12:40,322
it's very, very hard for us

384
01:12:40,322 --> 01:12:43,025
to really be able to then bring profitable

385
01:12:43,025 --> 01:12:44,460
and sustainable growth for our friends.

386
01:12:45,194 --> 01:12:47,663
Which we have a couple of follow-up touch

387
01:12:47,663 --> 01:12:48,764
points on the omni-channel

388
01:12:48,764 --> 01:12:50,999
strategy. And I want to get

389
01:12:50,999 --> 01:12:53,068
into some examples, because I've heard both

390
01:12:53,068 --> 01:12:54,103
from you and some of your

391
01:12:54,103 --> 01:12:55,971
peers, and even some of your

392
01:12:56,004 --> 01:12:57,740
watchers from a distance out of our

393
01:12:57,740 --> 01:12:59,408
ecosystem, watching what you

394
01:12:59,408 --> 01:13:00,209
guys are doing, we're going to

395
01:13:00,209 --> 01:13:02,144
come into those. But since you mentioned

396
01:13:02,144 --> 01:13:05,080
omni-channel, let's talk about the synergy

397
01:13:05,080 --> 01:13:06,181
of offline and online.

398
01:13:06,849 --> 01:13:10,452
Because obviously, perishable, frozen, dairy

399
01:13:10,452 --> 01:13:13,822
category is very a pantry item, very high

400
01:13:13,822 --> 01:13:15,924
frequency item, brand loyalty should be

401
01:13:15,924 --> 01:13:17,526
high, but it's our offline,

402
01:13:18,127 --> 01:13:19,495
big elephant in the room is the

403
01:13:19,495 --> 01:13:22,164
offline growth. Where do you see the packets

404
01:13:22,164 --> 01:13:23,332
of growth in online,

405
01:13:23,599 --> 01:13:25,501
post-covid era, and your

406
01:13:25,834 --> 01:13:28,404
omni-channel strategy, how do you capitalize

407
01:13:28,404 --> 01:13:29,505
on the e-commerce, push

408
01:13:29,505 --> 01:13:30,906
e-commerce growth opportunities?

409
01:13:31,140 --> 01:13:33,275
Because this is one of the most important

410
01:13:33,275 --> 01:13:35,344
channels, dilemma for

411
01:13:35,344 --> 01:13:36,345
food and beverage brands,

412
01:13:36,345 --> 01:13:38,547
we've seen that. It's not cosmetics, it's

413
01:13:38,547 --> 01:13:39,882
not app array, it's not

414
01:13:39,882 --> 01:13:41,817
electronics, so we have the

415
01:13:41,850 --> 01:13:43,719
reality of supermarkets and grocery

416
01:13:43,719 --> 01:13:45,120
shopping. And now I can

417
01:13:45,120 --> 01:13:47,523
observe, in Europe, European

418
01:13:47,523 --> 01:13:50,125
consumer loves to go to their store in a

419
01:13:50,125 --> 01:13:52,027
smaller size shopping versus

420
01:13:52,027 --> 01:13:53,796
US consumer buys three times

421
01:13:53,829 --> 01:13:56,832
bigger, just twice a month. Where the

422
01:13:56,832 --> 01:13:58,066
opportunity comes in this

423
01:13:58,066 --> 01:13:59,835
online, offline reality, you know,

424
01:13:59,835 --> 01:14:02,271
omni-channel? It's a fantastic question, and

425
01:14:02,271 --> 01:14:03,605
one that's really close

426
01:14:03,605 --> 01:14:04,873
to my heart, because we are

427
01:14:05,340 --> 01:14:07,209
on a journey, Arla, let me say that.

428
01:14:07,609 --> 01:14:08,477
Interesting enough, you

429
01:14:08,477 --> 01:14:11,046
mentioned some of our categories. Now,

430
01:14:12,781 --> 01:14:16,084
what's fair to say is, and you maybe don't

431
01:14:16,084 --> 01:14:17,286
know that, but a milk

432
01:14:17,286 --> 01:14:19,588
tends to be the top two items

433
01:14:19,588 --> 01:14:21,323
that you add in your basket from an online

434
01:14:21,323 --> 01:14:22,124
perspective, right?

435
01:14:22,758 --> 01:14:24,026
Yeah. They tend to be the

436
01:14:24,026 --> 01:14:26,128
first two items that you add on your online

437
01:14:26,128 --> 01:14:27,763
shopping list, irrespective of that.

438
01:14:29,398 --> 01:14:32,467
The vast majority of our products have a

439
01:14:32,467 --> 01:14:34,470
high percentage of it

440
01:14:34,470 --> 01:14:36,471
being sold or deal, right? And

441
01:14:36,572 --> 01:14:39,341
a lot of it is driven by visibility. In

442
01:14:39,341 --> 01:14:40,642
store, it's about gundolins,

443
01:14:41,009 --> 01:14:42,344
it's about driving the right

444
01:14:42,344 --> 01:14:43,912
level of promotion with the right level of

445
01:14:43,912 --> 01:14:46,615
visibility. Same logic applies to online.

446
01:14:47,282 --> 01:14:48,951
Visibility is key for us. We talk a lot

447
01:14:48,951 --> 01:14:50,052
about winning research,

448
01:14:50,052 --> 01:14:51,119
we talk a lot about making

449
01:14:51,119 --> 01:14:53,489
sure our media is ultimately fit for what

450
01:14:53,489 --> 01:14:55,357
the shopping and basket

451
01:14:55,357 --> 01:14:56,592
ratio from the shop and

452
01:14:56,592 --> 01:14:58,160
consumer is, irrespective of whether it's

453
01:14:58,160 --> 01:14:58,827
milk or butter, that

454
01:14:58,827 --> 01:15:00,162
holds very range for us.

455
01:15:01,063 --> 01:15:02,431
Omni-channel, I mentioned to you the

456
01:15:02,431 --> 01:15:03,966
management of the omni-channel piece within

457
01:15:03,999 --> 01:15:07,169
all that is a fundamental shift. We

458
01:15:07,169 --> 01:15:08,904
recognize and we talk a lot

459
01:15:08,904 --> 01:15:11,406
about connected experiences,

460
01:15:11,607 --> 01:15:14,009
right? It's creating connected experiences.

461
01:15:14,209 --> 01:15:15,143
It's translating the

462
01:15:15,143 --> 01:15:17,446
brand experience almost in a

463
01:15:17,446 --> 01:15:19,481
channel-less world. Channel-less not

464
01:15:19,481 --> 01:15:21,250
recognizing the channels do

465
01:15:21,250 --> 01:15:23,719
not exist, but it's so dynamic

466
01:15:23,986 --> 01:15:26,655
that it doesn't matter what's going on. As a

467
01:15:26,655 --> 01:15:28,857
consumer, I don't detect the jumps. I don't

468
01:15:28,891 --> 01:15:31,126
detect the transition. It's so seamless,

469
01:15:31,560 --> 01:15:33,929
it's like channel-less in that perspective,

470
01:15:33,929 --> 01:15:36,632
which is super interesting. For us, that

471
01:15:36,632 --> 01:15:37,533
connected consumer

472
01:15:37,533 --> 01:15:39,601
experience goes in the likes of three

473
01:15:39,601 --> 01:15:41,570
areas. It's about having the relevant touch

474
01:15:41,570 --> 01:15:42,771
points, selecting those

475
01:15:42,771 --> 01:15:43,872
touch points that are mostly

476
01:15:43,906 --> 01:15:46,208
backed with the consumer. It's about the

477
01:15:46,208 --> 01:15:47,809
brand consistency. That is

478
01:15:47,809 --> 01:15:50,679
key. Often enough, you see

479
01:15:50,712 --> 01:15:53,282
a lack of brand consistency across the

480
01:15:53,282 --> 01:15:54,650
channels to which your

481
01:15:54,650 --> 01:15:57,252
message is served. We are working

482
01:15:57,286 --> 01:16:02,491
a lot on that. PDPs, secondary images,

483
01:16:02,724 --> 01:16:03,725
mobile optimized series

484
01:16:03,725 --> 01:16:05,160
with the right brand look and

485
01:16:05,160 --> 01:16:07,529
feel is fundamental for us because a shopper

486
01:16:07,529 --> 01:16:08,363
is ultimately searching

487
01:16:08,363 --> 01:16:09,431
for the product online

488
01:16:09,431 --> 01:16:11,166
irrespective of where ultimately you work.

489
01:16:11,166 --> 01:16:12,434
It's not in your control.

490
01:16:12,701 --> 01:16:14,102
Many retailer platforms,

491
01:16:14,102 --> 01:16:15,804
many marketplace have different algorithms,

492
01:16:16,004 --> 01:16:17,506
different technical features. Correct.

493
01:16:17,940 --> 01:16:19,641
Sometimes the best content in the world,

494
01:16:19,641 --> 01:16:21,209
best creative of your

495
01:16:21,209 --> 01:16:22,311
brand doesn't make its way.

496
01:16:22,311 --> 01:16:24,846
It is not uploaded in a proper way, which

497
01:16:24,846 --> 01:16:26,281
leads into a whole discussion around the

498
01:16:26,315 --> 01:16:28,450
simulation process. We come to that on

499
01:16:28,450 --> 01:16:30,085
digital and self-advocacy. The

500
01:16:30,085 --> 01:16:30,986
other piece is the meaningful

501
01:16:30,986 --> 01:16:33,288
messages. It is delivering compelling and

502
01:16:33,288 --> 01:16:34,122
personalized messages

503
01:16:34,122 --> 01:16:35,190
with soft post-contextual.

504
01:16:35,824 --> 01:16:40,362
The big shift for us is we know that the

505
01:16:40,362 --> 01:16:41,229
omnichannel is

506
01:16:41,229 --> 01:16:43,365
transformation. That is a key piece.

507
01:16:43,365 --> 01:16:44,600
We recognize omnichannel is a

508
01:16:44,600 --> 01:16:45,801
transformation and it's a

509
01:16:45,801 --> 01:16:47,736
company-wide capability build.

510
01:16:48,804 --> 01:16:51,306
We started a journey. We are at the

511
01:16:51,306 --> 01:16:52,708
beginning of the

512
01:16:52,708 --> 01:16:54,242
transformation journey. It's exciting

513
01:16:54,409 --> 01:16:56,244
because I'm leading this project from

514
01:16:56,244 --> 01:16:57,045
another perspective

515
01:16:57,045 --> 01:17:00,449
whereby we've been really clear

516
01:17:00,549 --> 01:17:02,951
around what our ambition is, delivering

517
01:17:02,951 --> 01:17:03,919
collective consumer

518
01:17:03,919 --> 01:17:06,989
experiences, and thereby tackling the

519
01:17:06,989 --> 01:17:09,491
areas that will enable that. Anything from

520
01:17:09,491 --> 01:17:12,060
mindset, from definition of

521
01:17:12,060 --> 01:17:13,829
what it is, from process and

522
01:17:13,829 --> 01:17:17,265
governance, from the KPIs, from the creative

523
01:17:17,265 --> 01:17:19,501
execution and ultimately the whole training.

524
01:17:19,534 --> 01:17:23,271
Those are some of the big areas. Those are

525
01:17:23,271 --> 01:17:24,339
big initiatives. Big,

526
01:17:24,339 --> 01:17:25,440
big initiatives that we're

527
01:17:25,440 --> 01:17:26,708
looking into from a novella channel

528
01:17:26,708 --> 01:17:28,143
perspective. Let me give an

529
01:17:28,143 --> 01:17:29,378
example because I think for me,

530
01:17:30,245 --> 01:17:33,281
where one of the key examples that we've

531
01:17:33,281 --> 01:17:34,850
just recently been working

532
01:17:34,850 --> 01:17:36,251
on is really understanding

533
01:17:36,318 --> 01:17:38,587
how in order for us to deliver this

534
01:17:38,587 --> 01:17:39,287
connected consumer

535
01:17:39,287 --> 01:17:40,422
experience, we look at processes.

536
01:17:41,323 --> 01:17:43,992
And what we've really understood is often

537
01:17:43,992 --> 01:17:46,161
enough in that process, it

538
01:17:46,161 --> 01:17:47,562
doesn't help you deliver that

539
01:17:47,596 --> 01:17:50,165
into a consumer connected experience because

540
01:17:50,165 --> 01:17:51,967
it's ultimately managed by

541
01:17:51,967 --> 01:17:53,068
different functions within

542
01:17:53,068 --> 01:17:55,804
your innovation. And that cross-functional

543
01:17:55,804 --> 01:17:57,272
piece is an important one.

544
01:17:57,272 --> 01:17:59,141
So we've been really detailed

545
01:17:59,207 --> 01:18:02,177
about what is our experience on our brands

546
01:18:02,177 --> 01:18:04,680
today versus a specific job

547
01:18:04,680 --> 01:18:05,647
to be done because it starts

548
01:18:05,647 --> 01:18:07,549
from a brand job to be done, which is part

549
01:18:07,549 --> 01:18:09,251
of the brand strategy. What

550
01:18:09,251 --> 01:18:10,485
is the connected experience

551
01:18:10,485 --> 01:18:12,621
today? Is it a connected experience today?

552
01:18:13,021 --> 01:18:14,289
What is the ideal

553
01:18:14,289 --> 01:18:16,525
experience in the future and where do

554
01:18:16,558 --> 01:18:19,661
we have the gap? That gap, that tangible gap

555
01:18:19,661 --> 01:18:20,962
allows us to understand

556
01:18:20,962 --> 01:18:22,431
which ones are the touch

557
01:18:22,431 --> 01:18:24,399
points, which ones are the messages, which

558
01:18:24,399 --> 01:18:25,767
ones are the KPIs. So we go

559
01:18:25,767 --> 01:18:27,169
into specific details to be

560
01:18:27,169 --> 01:18:29,371
able to bridge the gap between where we are

561
01:18:29,371 --> 01:18:30,739
today and the future.

562
01:18:30,739 --> 01:18:32,007
That's part of a process, right?

563
01:18:32,007 --> 01:18:33,208
It's part of something that we've been

564
01:18:33,208 --> 01:18:33,675
playing in the brand

565
01:18:33,675 --> 01:18:35,944
experience. So instead of fixing existing

566
01:18:36,078 --> 01:18:37,913
backward looking touch points, you're trying

567
01:18:37,913 --> 01:18:39,481
to build the next step.

568
01:18:39,748 --> 01:18:41,083
We started on earlier. It

569
01:18:41,083 --> 01:18:43,151
starts in the five-year strategy from the

570
01:18:43,151 --> 01:18:44,052
brand perspective, into

571
01:18:44,052 --> 01:18:45,520
the three-year strategy, into

572
01:18:45,587 --> 01:18:47,923
the yearly execution. But it all starts from

573
01:18:47,923 --> 01:18:48,457
that connected

574
01:18:48,457 --> 01:18:49,891
experience throughout at the very

575
01:18:49,891 --> 01:18:51,526
beginning. Because if you're trying to

576
01:18:51,526 --> 01:18:53,762
retrofit it, often enough you fail. No,

577
01:18:53,762 --> 01:18:55,430
100%. I totally agree

578
01:18:55,430 --> 01:18:58,300
with that. And the goal post, while it's

579
01:18:58,300 --> 01:18:59,367
being pushed further, the

580
01:18:59,367 --> 01:19:00,569
timeline is getting shorter.

581
01:19:01,136 --> 01:19:03,772
I mean, nobody has five-year strategy plan

582
01:19:03,772 --> 01:19:04,906
anymore in the e-commerce.

583
01:19:05,207 --> 01:19:06,541
Yes, financial teams still might

584
01:19:06,541 --> 01:19:09,678
have, but our runways reduced down to 18

585
01:19:09,678 --> 01:19:11,379
months or so in reality.

586
01:19:11,379 --> 01:19:12,681
Correct. But you're bridging to the

587
01:19:13,515 --> 01:19:14,950
business cycle, right? Because you're

588
01:19:14,950 --> 01:19:16,618
bridging the brand strategy

589
01:19:16,618 --> 01:19:18,019
planning process to the business

590
01:19:18,019 --> 01:19:19,621
cycle. Right. So often enough, that's where

591
01:19:19,621 --> 01:19:20,088
there's a bit of

592
01:19:20,088 --> 01:19:22,124
disconnect. And you mentioned another,

593
01:19:23,258 --> 01:19:26,761
it may sound cliche, but as real in the

594
01:19:26,761 --> 01:19:30,365
e-commerce ecosystem again, the

595
01:19:30,365 --> 01:19:31,333
cross-functional team.

596
01:19:32,534 --> 01:19:34,169
Because it takes different functions,

597
01:19:34,402 --> 01:19:35,937
different capabilities to

598
01:19:35,937 --> 01:19:37,572
achieve and synchronize this at

599
01:19:37,606 --> 01:19:40,709
the same time in a seamless way. Can you

600
01:19:40,709 --> 01:19:43,512
describe the team where it

601
01:19:43,512 --> 01:19:44,746
was four years ago when you

602
01:19:44,746 --> 01:19:46,681
initiated this transformation? And now where

603
01:19:46,681 --> 01:19:48,350
it is, and what type of

604
01:19:48,350 --> 01:19:49,384
team structure you're trying

605
01:19:49,384 --> 01:19:52,587
to build for excellence? It's another really

606
01:19:52,587 --> 01:19:53,722
good question. I think for

607
01:19:53,722 --> 01:19:56,491
me, when I think in general

608
01:19:56,625 --> 01:19:58,827
about what leaders are doing really well,

609
01:19:58,827 --> 01:20:00,562
back to how they ultimately

610
01:20:00,562 --> 01:20:03,165
enable ultimately doing the

611
01:20:03,198 --> 01:20:05,901
connected experience that we mentioned just

612
01:20:05,901 --> 01:20:07,702
above, it starts with a

613
01:20:07,702 --> 01:20:09,304
consumer first approach. Right.

614
01:20:09,504 --> 01:20:12,340
It starts with having the leadership mandate

615
01:20:12,340 --> 01:20:14,409
around making sure we are

616
01:20:14,409 --> 01:20:16,044
focused on the consumer. And

617
01:20:16,044 --> 01:20:17,813
that's key, right? We are building big

618
01:20:17,813 --> 01:20:20,482
brands here. It's part of

619
01:20:20,482 --> 01:20:23,585
what we do as Aarla. It's really

620
01:20:23,585 --> 01:20:25,887
anchored in deep consumer insights and

621
01:20:25,887 --> 01:20:26,822
understanding. That's a key

622
01:20:26,822 --> 01:20:28,223
part of it, right? Which often

623
01:20:28,223 --> 01:20:29,925
enough in some areas within the function

624
01:20:29,925 --> 01:20:31,393
within bigger products and

625
01:20:31,393 --> 01:20:32,127
bigger organizations, it's

626
01:20:32,160 --> 01:20:36,364
not necessarily the case. It's about the

627
01:20:36,364 --> 01:20:37,499
possibility of future

628
01:20:37,499 --> 01:20:39,167
proof in sales channels for me,

629
01:20:39,167 --> 01:20:41,603
which is key. I go back to my model these

630
01:20:41,603 --> 01:20:42,804
days, it was all about

631
01:20:42,804 --> 01:20:44,439
where is it that the revenue was

632
01:20:44,439 --> 01:20:45,774
coming within the channel. I'm talking

633
01:20:45,774 --> 01:20:46,775
broader than that. It's

634
01:20:46,775 --> 01:20:48,310
understanding where are the pockets of

635
01:20:48,743 --> 01:20:51,746
sub-channel, untapped opportunities, white

636
01:20:51,746 --> 01:20:53,248
space, call them whatever you want.

637
01:20:54,482 --> 01:20:55,350
And then to your point is the

638
01:20:55,350 --> 01:20:57,485
cross-functional collaboration. So those

639
01:20:57,485 --> 01:20:58,520
three areas for me are

640
01:20:58,587 --> 01:21:01,122
what leaders have in the space of only

641
01:21:01,122 --> 01:21:01,890
channels from a structure

642
01:21:01,890 --> 01:21:03,892
perspective. As I said to you

643
01:21:03,892 --> 01:21:06,862
earlier, it's a journey. I don't necessarily

644
01:21:06,862 --> 01:21:10,031
believe a one size fits all works because it

645
01:21:10,465 --> 01:21:13,168
depends on the organization maturity. And

646
01:21:13,168 --> 01:21:13,902
within the organization

647
01:21:13,902 --> 01:21:15,203
maturity, you might have as I said

648
01:21:15,203 --> 01:21:17,105
earlier, different levels of maturity within

649
01:21:17,105 --> 01:21:18,206
organizations, right?

650
01:21:18,440 --> 01:21:19,407
Different levels of maturity

651
01:21:19,441 --> 01:21:22,611
within the different markets. So when I look

652
01:21:22,611 --> 01:21:23,612
at the journey that

653
01:21:23,612 --> 01:21:24,946
we've been into, inevitably,

654
01:21:25,914 --> 01:21:28,216
the central of accents and the acceleration

655
01:21:28,216 --> 01:21:30,518
unit was brought in to drive capabilities.

656
01:21:31,186 --> 01:21:34,122
At a local market level, you had teams which

657
01:21:34,122 --> 01:21:35,390
were standalone teams.

658
01:21:36,124 --> 01:21:37,225
Now we are in the transition

659
01:21:37,225 --> 01:21:38,960
period because the local level, what we're

660
01:21:38,960 --> 01:21:41,696
seeing is as e-commerce

661
01:21:41,696 --> 01:21:44,165
mature, as we start discussing

662
01:21:44,165 --> 01:21:46,534
about the omnichannel value, some of those

663
01:21:46,534 --> 01:21:48,637
functional areas,

664
01:21:48,870 --> 01:21:50,071
there were specialist roles

665
01:21:50,105 --> 01:21:52,240
sat inside us within the local business

666
01:21:52,240 --> 01:21:53,742
units and now becoming

667
01:21:53,742 --> 01:21:56,811
dispersed. So we've seen specific

668
01:21:56,945 --> 01:21:59,914
functions being embedded as part of chain,

669
01:22:00,482 --> 01:22:01,950
as part of category, as

670
01:22:01,950 --> 01:22:04,686
part of business management.

671
01:22:05,120 --> 01:22:06,688
So you're seeing that already in action.

672
01:22:06,688 --> 01:22:07,989
I'll give you an example of

673
01:22:07,989 --> 01:22:09,124
this because when I look at

674
01:22:09,758 --> 01:22:11,760
what has been done in the UK, for example,

675
01:22:12,527 --> 01:22:13,828
we are seeing some of

676
01:22:13,828 --> 01:22:15,597
these elements being embedded

677
01:22:15,997 --> 01:22:18,600
into the BU. So we have e-commerce managers

678
01:22:18,600 --> 01:22:20,468
who are sat within a

679
01:22:20,468 --> 01:22:22,003
Tesco business unit within and

680
01:22:22,003 --> 01:22:24,406
Asda within a JS business unit in the UK

681
01:22:24,406 --> 01:22:25,874
specifically, who are

682
01:22:25,874 --> 01:22:28,109
responsible for the channel,

683
01:22:28,510 --> 01:22:30,679
who are responsible for the category, who

684
01:22:30,679 --> 01:22:31,513
are responsible for the

685
01:22:31,513 --> 01:22:32,447
individual shelf, who are

686
01:22:32,447 --> 01:22:33,949
responsible for the retail media and

687
01:22:33,949 --> 01:22:35,383
acceleration, but they are sat

688
01:22:35,383 --> 01:22:37,619
functionally within the business

689
01:22:37,619 --> 01:22:40,989
unit and they go to the customers facing as

690
01:22:40,989 --> 01:22:41,957
an entity, an

691
01:22:41,957 --> 01:22:43,591
omnichannel entity, no longer a

692
01:22:43,625 --> 01:22:45,560
standalone part of the business. That's

693
01:22:45,560 --> 01:22:46,628
quite different,

694
01:22:46,928 --> 01:22:48,530
significantly and positive for different

695
01:22:48,530 --> 01:22:50,832
than traditional income structure, which was

696
01:22:50,832 --> 01:22:53,902
a standalone silo, sometimes supported by a

697
01:22:53,902 --> 01:22:56,638
standalone COE, but integrating those

698
01:22:56,638 --> 01:22:58,506
skilled capability-focused

699
01:22:58,506 --> 01:23:00,709
roles into BU, I think really

700
01:23:00,709 --> 01:23:03,211
unlocks the speed and unlocks the longhouse,

701
01:23:03,445 --> 01:23:06,281
learning. What other sexy roles, what other

702
01:23:06,548 --> 01:23:08,850
non-traditional roles do you have sit in the

703
01:23:08,850 --> 01:23:10,785
BU to allow the BU to

704
01:23:10,785 --> 01:23:12,554
accelerate and execute on e-commerce

705
01:23:12,721 --> 01:23:14,689
more effectively? Look, what we're seeing

706
01:23:14,689 --> 01:23:15,690
is, and it's interesting

707
01:23:15,690 --> 01:23:17,225
because it goes back to also the

708
01:23:17,225 --> 01:23:19,060
role of the central exit. I mentioned how I

709
01:23:19,060 --> 01:23:20,862
see also the central exit,

710
01:23:20,862 --> 01:23:21,963
my function, the fact that

711
01:23:21,997 --> 01:23:24,399
I'm leading an omnichannel transformation

712
01:23:24,399 --> 01:23:26,368
within Arla is also

713
01:23:26,368 --> 01:23:28,002
giving you a hint of where the

714
01:23:28,002 --> 01:23:30,005
central exit will transition, right? Because

715
01:23:30,005 --> 01:23:30,972
it was an e-commerce

716
01:23:30,972 --> 01:23:33,308
central exit, it's now leading

717
01:23:33,441 --> 01:23:34,843
a transformation of one-richannel

718
01:23:34,843 --> 01:23:36,111
directionally, we are

719
01:23:36,111 --> 01:23:37,579
becoming, back to my point at the very

720
01:23:37,612 --> 01:23:39,848
beginning, around omnichannel value, an

721
01:23:39,848 --> 01:23:42,817
omnichannel central exit. It's about

722
01:23:42,817 --> 01:23:43,752
embedding omnichannel

723
01:23:43,752 --> 01:23:46,221
best practices, right? No longer just purely

724
01:23:46,221 --> 01:23:47,789
the specialness of what it was in

725
01:23:47,789 --> 01:23:48,590
e-commerce, which was

726
01:23:48,623 --> 01:23:51,126
when we set up five years ago. Within the

727
01:23:51,126 --> 01:23:52,827
local teams, if you think

728
01:23:52,827 --> 01:23:55,230
about channel development roles,

729
01:23:55,230 --> 01:23:57,232
channel development roles, often enough in

730
01:23:57,232 --> 01:23:58,566
the past were offline

731
01:23:58,566 --> 01:24:00,268
channel development, online channel

732
01:24:00,268 --> 01:24:01,903
development. Right, strict distinction.

733
01:24:02,137 --> 01:24:02,704
Right now, strict distinction,

734
01:24:03,004 --> 01:24:04,139
back to the omnichannel beast,

735
01:24:04,172 --> 01:24:06,708
is channel development across, is making

736
01:24:06,708 --> 01:24:08,543
sure that our brands are

737
01:24:08,543 --> 01:24:10,545
fit for the channel. Our

738
01:24:10,545 --> 01:24:12,280
strategy is fit for the channel, our channel

739
01:24:12,280 --> 01:24:13,181
strategy works. The

740
01:24:13,181 --> 01:24:14,549
categories that we play in

741
01:24:14,549 --> 01:24:17,385
specific channels need to match them, right?

742
01:24:17,385 --> 01:24:18,186
The brands that are

743
01:24:18,186 --> 01:24:19,754
stronger online versus offline,

744
01:24:19,754 --> 01:24:21,823
that's clearly part of how we define and go

745
01:24:21,823 --> 01:24:23,658
with our channel strategy.

746
01:24:24,059 --> 01:24:24,826
Same with the categories,

747
01:24:25,226 --> 01:24:28,263
right? The category management. Often

748
01:24:28,263 --> 01:24:29,664
enough, it's about the power

749
01:24:29,664 --> 01:24:30,932
couples, right? It's making sure

750
01:24:30,965 --> 01:24:32,700
some of our brands, some of our categories

751
01:24:32,700 --> 01:24:34,536
are stronger online than

752
01:24:34,536 --> 01:24:35,870
they are in offline. It's

753
01:24:35,870 --> 01:24:37,972
about how you flex them. So some of those

754
01:24:37,972 --> 01:24:38,773
roles are very, very

755
01:24:38,773 --> 01:24:40,575
important for us. The trade, the

756
01:24:40,575 --> 01:24:44,679
activation part, traditionally, as I said to

757
01:24:44,679 --> 01:24:45,380
you at the very beginning,

758
01:24:45,380 --> 01:24:46,481
has grown through the likes

759
01:24:46,481 --> 01:24:48,616
of visibility in store. Right. The reality

760
01:24:48,616 --> 01:24:49,851
is the same moves apply

761
01:24:49,851 --> 01:24:51,186
from an online perspective. So

762
01:24:51,186 --> 01:24:53,321
we're trying to match that from a shopper

763
01:24:53,321 --> 01:24:54,322
and trade marketing. But

764
01:24:54,322 --> 01:24:55,356
you need to cross-pollinate

765
01:24:55,423 --> 01:24:57,892
this digital know-how into the offline

766
01:24:57,892 --> 01:24:59,727
domain to make the needle

767
01:24:59,727 --> 01:25:01,196
move. Correct. That's where the

768
01:25:01,196 --> 01:25:02,664
skill and execution happens. And that's the

769
01:25:02,664 --> 01:25:03,832
hardest bit, right? Because

770
01:25:03,832 --> 01:25:05,200
essentially it's a journey.

771
01:25:05,500 --> 01:25:07,168
It's not going to happen day in and day out

772
01:25:07,168 --> 01:25:07,969
because the level of

773
01:25:07,969 --> 01:25:10,205
expertise that a trade team

774
01:25:10,305 --> 01:25:12,607
in a local organization from an offline

775
01:25:12,607 --> 01:25:13,908
perspective had with the

776
01:25:13,908 --> 01:25:16,211
floor stickers and POS material,

777
01:25:16,911 --> 01:25:18,980
those specialties are very different to the

778
01:25:18,980 --> 01:25:20,148
one that are online. So the

779
01:25:20,148 --> 01:25:21,015
two are going to come back

780
01:25:21,049 --> 01:25:22,884
and match each other. And they're felt

781
01:25:22,884 --> 01:25:24,586
enhancing some of those

782
01:25:24,586 --> 01:25:25,954
specialties within the local

783
01:25:25,954 --> 01:25:28,022
organization. And to your point, the biggest

784
01:25:28,022 --> 01:25:29,090
benefit of this

785
01:25:29,090 --> 01:25:31,826
transformation is also not only

786
01:25:31,826 --> 01:25:33,862
looking at consumer or the brands, also

787
01:25:33,862 --> 01:25:35,029
looking at data companies

788
01:25:35,029 --> 01:25:36,464
like Nielsen and Circana,

789
01:25:36,965 --> 01:25:38,600
which they had very proven, very

790
01:25:38,600 --> 01:25:39,567
established, accurate

791
01:25:39,567 --> 01:25:41,369
reporting on the POS side of things

792
01:25:41,369 --> 01:25:43,972
to report offline. But look at the online

793
01:25:43,972 --> 01:25:44,706
and omni-channel

794
01:25:44,706 --> 01:25:46,774
measurement. They're also going

795
01:25:46,808 --> 01:25:48,843
through this transformation to deliver

796
01:25:48,843 --> 01:25:50,578
acceptable measurement on

797
01:25:50,578 --> 01:25:51,779
the omni-channel combining.

798
01:25:52,013 --> 01:25:54,215
And Merv, you know, the big question that

799
01:25:54,215 --> 01:25:55,350
every company wants to know,

800
01:25:55,583 --> 01:25:57,318
back to the challenges that we have in the

801
01:25:57,318 --> 01:25:59,287
profitability piece, it's not necessarily,

802
01:26:00,288 --> 01:26:03,391
am I spending the money where I should be

803
01:26:03,391 --> 01:26:04,392
spending it efficiently?

804
01:26:04,759 --> 01:26:05,627
The question I'm having

805
01:26:05,627 --> 01:26:08,730
necessarily is, if I have the 100K, am I

806
01:26:08,730 --> 01:26:10,365
better off with an

807
01:26:10,365 --> 01:26:12,600
objective, an overarching KPI that's

808
01:26:12,700 --> 01:26:15,603
defined from an holistic sales incremental

809
01:26:15,603 --> 01:26:17,572
perspective, not channel incremental.

810
01:26:17,572 --> 01:26:18,673
Or shifting the sales.

811
01:26:18,673 --> 01:26:20,742
Or shifting the sales. Is it better spent in

812
01:26:20,742 --> 01:26:22,410
store or online? And

813
01:26:22,410 --> 01:26:23,845
whether it's in store or online,

814
01:26:24,145 --> 01:26:26,047
in which level of touch point? Those are

815
01:26:26,047 --> 01:26:28,349
some of the clear questions

816
01:26:28,349 --> 01:26:29,284
that we're asking ourselves.

817
01:26:29,484 --> 01:26:31,686
There's not Alberta's money from an

818
01:26:31,686 --> 01:26:32,487
e-commerce perspective

819
01:26:32,487 --> 01:26:33,454
needs to be efficient.

820
01:26:33,454 --> 01:26:34,722
Those days are gone. Checking

821
01:26:34,722 --> 01:26:36,524
the budget boxes are all gone.

822
01:26:37,058 --> 01:26:38,927
It's about holistic and it's about

823
01:26:38,927 --> 01:26:40,328
omni-channel incrementality.

824
01:26:40,328 --> 01:26:41,095
That's why we're transitioning

825
01:26:41,296 --> 01:26:43,631
into something that are specialisms

826
01:26:43,631 --> 01:26:45,300
cross-functional. It's

827
01:26:45,300 --> 01:26:46,501
about embedding and ensuring

828
01:26:46,501 --> 01:26:48,002
that we have the right KPI. The other thing

829
01:26:48,002 --> 01:26:49,671
is clearly having defined

830
01:26:49,671 --> 01:26:51,372
common KPIs is a means for

831
01:26:51,372 --> 01:26:53,408
them because people, you know, trying to

832
01:26:53,408 --> 01:26:55,510
react if they have specific targets.

833
01:26:55,743 --> 01:26:58,646
I totally agree. Now it's time to give a

834
01:26:58,646 --> 01:26:59,747
shout out to some of the

835
01:26:59,747 --> 01:27:00,949
team members or some of the

836
01:27:00,949 --> 01:27:04,519
markets. Give us a really nice juicy example

837
01:27:04,519 --> 01:27:06,588
of some of these transformation initiatives

838
01:27:07,288 --> 01:27:09,657
with some markets, with some retailers. Give

839
01:27:09,657 --> 01:27:11,125
us one or more couple of

840
01:27:11,125 --> 01:27:12,594
initiative examples, please.

841
01:27:13,094 --> 01:27:14,095
Give a shout out to

842
01:27:14,095 --> 01:27:15,029
the teams if you want to.

843
01:27:15,029 --> 01:27:17,265
I will do it. It's a big shout out to my

844
01:27:17,265 --> 01:27:20,468
Danish folks. You know, as I said to you,

845
01:27:20,468 --> 01:27:23,605
is a Danish and Swedish organization owned

846
01:27:23,605 --> 01:27:24,706
by Danish and Swedish.

847
01:27:24,939 --> 01:27:25,406
Skål.

848
01:27:25,406 --> 01:27:28,776
Predominant. So exactly. For me, it's a big

849
01:27:28,776 --> 01:27:29,744
shout out to my Danish

850
01:27:29,744 --> 01:27:31,346
folks. We've done an initiative

851
01:27:31,346 --> 01:27:34,282
which is super interesting. We often talk

852
01:27:34,282 --> 01:27:35,617
about brand to show off. How

853
01:27:35,617 --> 01:27:36,884
do you shorten the journey?

854
01:27:37,352 --> 01:27:40,121
Brand and shelf. And what we've done is

855
01:27:40,121 --> 01:27:41,990
something that we called Click and Cook.

856
01:27:42,223 --> 01:27:44,492
It's a proprietary technology that we've

857
01:27:44,492 --> 01:27:45,493
developed in the last

858
01:27:45,493 --> 01:27:47,829
four years. And it's about

859
01:27:48,162 --> 01:27:51,032
taking recipe inspiration all the way down

860
01:27:51,032 --> 01:27:51,866
into basket

861
01:27:51,866 --> 01:27:53,668
fulfillment. So what we've done is,

862
01:27:55,270 --> 01:27:58,239
in a market like Demma, we are 65% of the

863
01:27:58,239 --> 01:27:59,107
dairy category, believe

864
01:27:59,107 --> 01:28:00,908
it or not. It's a heavy,

865
01:28:01,609 --> 01:28:06,547
predominant dairy consumption market. Our

866
01:28:06,547 --> 01:28:09,283
brand new website is the

867
01:28:09,283 --> 01:28:10,652
go to place when it comes to

868
01:28:10,652 --> 01:28:13,988
recipe inspiration. So I want to, as a

869
01:28:13,988 --> 01:28:14,822
Danish consumer, be

870
01:28:14,822 --> 01:28:16,024
inspired on what I can eat

871
01:28:16,324 --> 01:28:18,826
this evening. And believe it or not, we have

872
01:28:18,826 --> 01:28:22,063
something close to 30, 35 million sessions

873
01:28:22,230 --> 01:28:26,167
per round on our R&D. 35 million. That's

874
01:28:26,167 --> 01:28:27,468
big. On the market, they

875
01:28:27,468 --> 01:28:29,070
have six and a half million

876
01:28:29,137 --> 01:28:32,340
population. Just to give you the context of

877
01:28:32,340 --> 01:28:33,641
it. And what was clear

878
01:28:33,641 --> 01:28:35,843
to us is the plethora of

879
01:28:36,411 --> 01:28:38,680
sessions and traffic that we were generating

880
01:28:38,680 --> 01:28:39,647
on recipes, we

881
01:28:39,647 --> 01:28:41,382
rationed, could create tangible

882
01:28:41,382 --> 01:28:43,751
commercial value. So what we did was we

883
01:28:43,751 --> 01:28:44,886
closed the roof and we

884
01:28:44,886 --> 01:28:46,587
bridged the gap there from

885
01:28:46,721 --> 01:28:50,525
effectively being able to take recipes and

886
01:28:50,525 --> 01:28:52,427
create a basket fulfillment

887
01:28:52,427 --> 01:28:53,861
method by linking a simple

888
01:28:53,928 --> 01:28:56,831
API solution in the likes of a retailer, say

889
01:28:56,831 --> 01:28:58,633
any retail on a selling

890
01:28:58,633 --> 01:29:00,601
group or cop there. So

891
01:29:01,102 --> 01:29:03,271
we were able to bridge that gap between the

892
01:29:03,271 --> 01:29:04,539
brand of shell, thereby

893
01:29:04,539 --> 01:29:07,308
creating and sending traffic to

894
01:29:07,308 --> 01:29:10,511
some of these retailers, and then thereby

895
01:29:10,511 --> 01:29:12,513
ultimately getting the level of conversion

896
01:29:12,513 --> 01:29:15,183
that was driving it. So it's a fantastic

897
01:29:15,183 --> 01:29:16,751
initiative, something we're very proud of,

898
01:29:16,751 --> 01:29:18,853
because it generates value for them. It

899
01:29:18,853 --> 01:29:20,188
helps them with some of the JBP

900
01:29:20,188 --> 01:29:20,922
conversation, because

901
01:29:20,988 --> 01:29:23,691
we generate a ton of traffic for them and a

902
01:29:23,691 --> 01:29:24,392
lot of conversion,

903
01:29:24,692 --> 01:29:26,227
because I can give you a stat,

904
01:29:26,694 --> 01:29:28,930
30 million was 35 million is the session

905
01:29:28,930 --> 01:29:30,264
that we created. We

906
01:29:30,264 --> 01:29:32,033
created about one million baskets

907
01:29:32,033 --> 01:29:33,768
of some of these retail platform. That is

908
01:29:33,768 --> 01:29:35,303
sizable, if you consider

909
01:29:35,303 --> 01:29:36,504
we're talking about the day.

910
01:29:36,504 --> 01:29:38,740
That is sizable. And it's revenue that we

911
01:29:38,740 --> 01:29:42,577
generated by taking a simple solution with

912
01:29:42,577 --> 01:29:44,612
an algorithm, an API integration matching

913
01:29:44,612 --> 01:29:45,880
the recipes with some

914
01:29:45,880 --> 01:29:46,547
of the products. That's

915
01:29:46,581 --> 01:29:48,149
probably the hardest bit is that product.

916
01:29:48,149 --> 01:29:50,218
Basket building and generating.

917
01:29:50,918 --> 01:29:53,688
And butter and salmon and matching it with

918
01:29:53,688 --> 01:29:55,890
the retailer SKUs,

919
01:29:56,190 --> 01:29:57,558
because you have difference to

920
01:29:57,558 --> 01:29:58,993
use depending on the level of the retailer.

921
01:29:59,660 --> 01:30:00,395
And that for me was a

922
01:30:00,395 --> 01:30:01,662
prime example of a technology

923
01:30:01,929 --> 01:30:05,099
enabled a really collaborative solution. And

924
01:30:05,099 --> 01:30:06,467
it's not an awareness

925
01:30:06,467 --> 01:30:07,769
or brand equity campaign.

926
01:30:08,569 --> 01:30:11,773
It's generating context. And it's also

927
01:30:11,773 --> 01:30:13,641
creating experience for the consumer,

928
01:30:13,708 --> 01:30:15,676
not just shopping exercise. Exactly. Great

929
01:30:15,676 --> 01:30:17,211
example of shopping and media.

930
01:30:17,278 --> 01:30:19,247
It's a fantastic example of shopping and

931
01:30:19,247 --> 01:30:22,116
ending in the revenue. Now

932
01:30:22,116 --> 01:30:24,085
brings me an advanced form

933
01:30:24,085 --> 01:30:27,188
of shoppable media, the hardest topic of the

934
01:30:27,188 --> 01:30:29,323
last two or three years in the industry.

935
01:30:29,924 --> 01:30:32,960
Of course, of course, there were a couple of

936
01:30:32,960 --> 01:30:33,895
things we cannot avoid

937
01:30:33,895 --> 01:30:34,896
in the session. Anyway,

938
01:30:35,329 --> 01:30:36,664
we're going to come to the two letter word

939
01:30:36,664 --> 01:30:39,600
again. But this is a great

940
01:30:39,600 --> 01:30:40,768
example of shopping media.

941
01:30:40,802 --> 01:30:43,438
And I love it because it attracts new to the

942
01:30:43,438 --> 01:30:45,339
brand, new to the retailer consumers

943
01:30:45,740 --> 01:30:47,942
while they're in the context of searching a

944
01:30:47,942 --> 01:30:50,545
recipe to save the night. Maybe they're just

945
01:30:50,545 --> 01:30:52,547
dating, maybe they're just hosting the

946
01:30:52,547 --> 01:30:54,248
parents. Perfect occasion for

947
01:30:54,248 --> 01:30:56,684
me. But then it brings it to

948
01:30:56,684 --> 01:30:58,719
your point. Additional investment to the

949
01:30:58,719 --> 01:30:59,921
retailer platform, additional

950
01:30:59,921 --> 01:31:01,122
traffic, additional consumer,

951
01:31:01,589 --> 01:31:04,492
as well as additional investment. Where do

952
01:31:04,492 --> 01:31:08,129
you see Arla in the retail media frenzy? And

953
01:31:08,963 --> 01:31:10,398
what are the challenges you're going

954
01:31:10,398 --> 01:31:11,265
through? Because now this is

955
01:31:11,265 --> 01:31:12,467
a very innovative approach,

956
01:31:12,467 --> 01:31:15,403
but I'm sure none of the retailer is just

957
01:31:15,403 --> 01:31:16,904
opening up the gates for

958
01:31:16,904 --> 01:31:18,005
the shoppable media. They're

959
01:31:18,005 --> 01:31:20,708
asking investment for the retail media. Can

960
01:31:20,708 --> 01:31:22,543
you walk us through in the journey what

961
01:31:23,044 --> 01:31:25,313
daily company like Arla going through with

962
01:31:25,313 --> 01:31:26,480
the retail media network?

963
01:31:27,481 --> 01:31:32,720
Yeah, super topic. Clearly one that's put a

964
01:31:32,720 --> 01:31:35,022
lot of pressure on any big FMCG.

965
01:31:35,122 --> 01:31:36,991
Everybody feels that at the same time it's

966
01:31:36,991 --> 01:31:38,125
also forcing us to do

967
01:31:38,125 --> 01:31:39,460
things differently. So when I

968
01:31:39,460 --> 01:31:41,229
think about on the channel, I strongly

969
01:31:41,229 --> 01:31:43,664
believe retail media has

970
01:31:43,664 --> 01:31:44,932
been the accelerator of the

971
01:31:44,932 --> 01:31:47,268
cross-functional collaboration. Nonetheless,

972
01:31:47,635 --> 01:31:50,204
I think for me, I think

973
01:31:50,204 --> 01:31:51,572
over the last year we've done

974
01:31:52,406 --> 01:31:54,442
exceptionally well with Arla from a

975
01:31:54,442 --> 01:31:56,010
perspective of being clear

976
01:31:56,010 --> 01:31:57,745
around how do we want to approach

977
01:31:57,745 --> 01:32:00,948
it. And for me, especially consideration

978
01:32:00,948 --> 01:32:03,351
like budget allocation and prioritization

979
01:32:03,951 --> 01:32:05,520
have always been very, very,

980
01:32:05,520 --> 01:32:07,054
very important for us to define.

981
01:32:09,490 --> 01:32:11,125
I might sound controversial, but I think

982
01:32:11,125 --> 01:32:12,493
it's important you kind of

983
01:32:12,493 --> 01:32:13,461
get where I'm coming from.

984
01:32:13,461 --> 01:32:16,030
Bringing our perspective. So Arla, we're

985
01:32:16,030 --> 01:32:18,766
clear that retail media per

986
01:32:18,766 --> 01:32:20,167
se needs to have a positive

987
01:32:20,301 --> 01:32:23,404
impact on sales. That is a fundamental thing

988
01:32:23,404 --> 01:32:26,140
that we... Table stakes. Table stakes. Now,

989
01:32:26,674 --> 01:32:29,610
I don't hear often enough brands talking

990
01:32:29,610 --> 01:32:31,412
about what does a positive

991
01:32:31,412 --> 01:32:33,180
impact on sales mean? How

992
01:32:33,180 --> 01:32:34,815
do you achieve that? Correct. That could be

993
01:32:34,815 --> 01:32:35,750
a pleat of saying, and it

994
01:32:35,750 --> 01:32:36,551
goes back to some of the

995
01:32:36,551 --> 01:32:38,953
trading fundamentals that we have within the

996
01:32:38,953 --> 01:32:41,489
same category management program. It's about

997
01:32:41,489 --> 01:32:43,157
creating existing baskets. It's about

998
01:32:43,157 --> 01:32:44,025
retaining existing

999
01:32:44,025 --> 01:32:46,327
shoppers. It's about acquiring new

1000
01:32:46,327 --> 01:32:49,730
customers. It can be engaging laps ones, or

1001
01:32:49,730 --> 01:32:50,565
it can be ultimately

1002
01:32:50,565 --> 01:32:52,733
satisfying units. So one of these

1003
01:32:52,733 --> 01:32:55,870
five or six areas for us is key about how do

1004
01:32:55,870 --> 01:32:57,605
we understand the role of

1005
01:32:57,605 --> 01:32:59,507
retail media. When it comes

1006
01:32:59,540 --> 01:33:02,877
about how do we evaluate each retail media

1007
01:33:02,877 --> 01:33:04,946
specifically in light

1008
01:33:04,946 --> 01:33:06,447
of the objective that you

1009
01:33:06,447 --> 01:33:08,950
have totally, and thereby having new

1010
01:33:08,950 --> 01:33:10,551
priorities, we are very clear.

1011
01:33:10,551 --> 01:33:12,119
We're very stringent on Arla.

1012
01:33:12,119 --> 01:33:14,722
And I think it's about the targeted gig

1013
01:33:14,722 --> 01:33:16,924
abilities. I think that's a

1014
01:33:16,924 --> 01:33:18,759
fundamental step is understanding

1015
01:33:18,859 --> 01:33:22,463
how does that retail media network better

1016
01:33:22,463 --> 01:33:23,731
than others help reach

1017
01:33:23,731 --> 01:33:25,399
specific shopper segments.

1018
01:33:25,399 --> 01:33:26,934
And you're not shooting in the dark. You're

1019
01:33:26,934 --> 01:33:27,735
not shooting that. It's

1020
01:33:27,735 --> 01:33:28,703
a fundamental piece. It's

1021
01:33:29,270 --> 01:33:31,372
ability of reaching a shopper is

1022
01:33:31,372 --> 01:33:34,041
understanding can it reach

1023
01:33:34,041 --> 01:33:35,743
the shopper within the context,

1024
01:33:36,110 --> 01:33:39,447
so remit of the retail media wall gardens or

1025
01:33:39,447 --> 01:33:42,483
beyond? Because as you know, retail media is

1026
01:33:42,483 --> 01:33:44,185
moving up the funnel and into the store.

1027
01:33:44,585 --> 01:33:47,588
Right. Of course. The other

1028
01:33:47,588 --> 01:33:48,456
one is the measurement and

1029
01:33:48,456 --> 01:33:53,294
reporting. How transparent is and how

1030
01:33:53,294 --> 01:33:54,695
sophisticated is the

1031
01:33:54,695 --> 01:33:56,130
network reporting? That's really,

1032
01:33:56,163 --> 01:33:58,032
really important. It's about the ground

1033
01:33:58,032 --> 01:33:59,066
narrative from the sales

1034
01:33:59,066 --> 01:34:00,067
data we need to achieve.

1035
01:34:01,268 --> 01:34:04,505
It's about the media opportunities. What are

1036
01:34:04,505 --> 01:34:05,206
some of those touch

1037
01:34:05,206 --> 01:34:06,741
points? What are some of the

1038
01:34:07,341 --> 01:34:10,244
areas that that specific retail media allow

1039
01:34:10,244 --> 01:34:11,345
us to reach those shoppers

1040
01:34:11,345 --> 01:34:12,313
and those consumers with?

1041
01:34:12,980 --> 01:34:14,782
It's about how the innovative and technology

1042
01:34:14,782 --> 01:34:15,983
aspect works from a

1043
01:34:15,983 --> 01:34:18,185
level. And then last but not

1044
01:34:18,185 --> 01:34:20,588
least is, is it contributing to my JVP?

1045
01:34:21,489 --> 01:34:22,590
Right. Is it part of my

1046
01:34:22,590 --> 01:34:23,791
partnership? Does it unlock

1047
01:34:24,025 --> 01:34:26,060
further discussions around optimization?

1048
01:34:26,527 --> 01:34:28,729
Because inevitably, you know it better.

1049
01:34:29,397 --> 01:34:31,565
Some of these elements of retail media are

1050
01:34:31,565 --> 01:34:34,368
within the trade terms or

1051
01:34:34,368 --> 01:34:35,770
outside of the trade. So it's

1052
01:34:35,770 --> 01:34:38,439
important that we go about this. And we

1053
01:34:38,439 --> 01:34:39,707
talked about this in one of

1054
01:34:39,707 --> 01:34:41,042
the previous meetings we had

1055
01:34:41,042 --> 01:34:43,711
couple months back. And JVP is an important

1056
01:34:43,711 --> 01:34:45,379
topic. Retailers not

1057
01:34:45,379 --> 01:34:46,681
always asking for interest,

1058
01:34:47,148 --> 01:34:49,650
increased amount of investment. But brands

1059
01:34:49,650 --> 01:34:50,918
also need to understand the

1060
01:34:50,918 --> 01:34:51,952
retail media's profitability

1061
01:34:52,420 --> 01:34:55,389
impact to the retailer's piano. 100%. It

1062
01:34:55,389 --> 01:34:57,024
gives you leverage to

1063
01:34:57,024 --> 01:34:58,526
understand where they coming from

1064
01:34:58,626 --> 01:35:01,195
and how to budge or agree on the terms,

1065
01:35:01,429 --> 01:35:02,196
agree on the investment

1066
01:35:02,196 --> 01:35:04,365
level, the tactics. And you're

1067
01:35:04,365 --> 01:35:06,901
absolutely right. So I think for me, it's a

1068
01:35:06,901 --> 01:35:08,569
fundamental part of it.

1069
01:35:08,569 --> 01:35:10,237
It's been super clear on

1070
01:35:11,305 --> 01:35:13,708
their element, right? Inevitably, it's a

1071
01:35:13,708 --> 01:35:14,875
cash cow to some level.

1072
01:35:15,342 --> 01:35:16,777
Some people have gone as far as

1073
01:35:16,811 --> 01:35:20,781
saying it's a paper to play element, which I

1074
01:35:20,781 --> 01:35:23,150
partially agree. But

1075
01:35:23,150 --> 01:35:24,118
it's not too dissimilar to

1076
01:35:24,118 --> 01:35:25,786
what used to be the past around the store

1077
01:35:25,786 --> 01:35:27,521
side. So it's media per se.

1078
01:35:27,521 --> 01:35:28,222
That's what I'm trying to get.

1079
01:35:28,689 --> 01:35:30,424
And for me, it's helped you optimize that

1080
01:35:30,424 --> 01:35:31,659
level of investment, which

1081
01:35:31,659 --> 01:35:33,027
inevitably will be reinfenced

1082
01:35:33,027 --> 01:35:35,062
within the trade. I've done think and I'm

1083
01:35:35,062 --> 01:35:36,163
stretching it again, maybe

1084
01:35:36,163 --> 01:35:37,465
challenging some other thinking,

1085
01:35:37,865 --> 01:35:40,768
we will be able ever to clear cut black and

1086
01:35:40,768 --> 01:35:43,571
white, separate retail media

1087
01:35:43,571 --> 01:35:45,339
investment terms outside of

1088
01:35:45,339 --> 01:35:48,843
the trade investment thing. 100%. But now I

1089
01:35:48,843 --> 01:35:49,543
want to come into

1090
01:35:49,543 --> 01:35:52,279
another double-edged sword.

1091
01:35:53,447 --> 01:35:55,983
The first party data is because you

1092
01:35:55,983 --> 01:35:56,684
mentioned targeting

1093
01:35:56,684 --> 01:35:58,486
capabilities. Yes. And targeting

1094
01:35:58,486 --> 01:36:00,721
capabilities requires robust first party

1095
01:36:00,721 --> 01:36:02,289
data. And then also you can

1096
01:36:02,289 --> 01:36:03,390
take some of this aggregated

1097
01:36:03,390 --> 01:36:04,892
first party data and use it in other

1098
01:36:04,892 --> 01:36:06,627
campaigns, other audience generating

1099
01:36:06,627 --> 01:36:09,096
practices. But I've been

1100
01:36:09,096 --> 01:36:10,965
hearing that many brands, of course,

1101
01:36:11,465 --> 01:36:13,167
everybody's very careful to

1102
01:36:13,167 --> 01:36:14,468
maintain their relationship with

1103
01:36:14,568 --> 01:36:17,071
their partners, of course. But from my

1104
01:36:17,071 --> 01:36:18,272
observation, not many brands

1105
01:36:18,272 --> 01:36:19,940
are happy or satisfied with the

1106
01:36:19,940 --> 01:36:23,544
first party output they receive on their

1107
01:36:23,544 --> 01:36:25,446
investment. I'm not going to

1108
01:36:25,446 --> 01:36:26,747
put you on the spot, but I want

1109
01:36:26,747 --> 01:36:29,550
you to share your observations. Where do you

1110
01:36:29,550 --> 01:36:31,051
see the first party impact

1111
01:36:31,051 --> 01:36:32,720
and the ongoing relationships?

1112
01:36:33,154 --> 01:36:35,990
Is there still room for improvement? Is it

1113
01:36:35,990 --> 01:36:37,892
came to a place that okay,

1114
01:36:37,892 --> 01:36:39,026
it's generating the impact

1115
01:36:39,994 --> 01:36:42,563
required? How is your observation on this? I

1116
01:36:42,563 --> 01:36:43,964
mean, I want to be straight with you.

1117
01:36:43,998 --> 01:36:47,101
I don't think it's got to a point where it's

1118
01:36:47,101 --> 01:36:52,907
been maybe as where we would want it to be.

1119
01:36:53,107 --> 01:36:55,543
Has it come a long way? I certainly think it

1120
01:36:55,543 --> 01:36:56,744
has. And again, I'm

1121
01:36:56,744 --> 01:36:58,579
generalizing because it depends on

1122
01:36:58,579 --> 01:37:01,482
again, specific retail or retail media

1123
01:37:01,482 --> 01:37:02,817
networks, depending on

1124
01:37:02,817 --> 01:37:04,251
different markets, because as you

1125
01:37:04,251 --> 01:37:05,786
know, the space is at least within the

1126
01:37:05,786 --> 01:37:06,921
universe and for me, that

1127
01:37:06,921 --> 01:37:08,923
is a very different level of

1128
01:37:08,923 --> 01:37:12,059
maturity. To your point, it's key for us,

1129
01:37:12,059 --> 01:37:13,727
right? It's about making sure we get the

1130
01:37:13,761 --> 01:37:15,696
precision target. I was mentioning earlier,

1131
01:37:16,096 --> 01:37:18,866
it's about also enabling some of the future

1132
01:37:18,866 --> 01:37:20,601
proofing against the good good appreciation,

1133
01:37:20,601 --> 01:37:22,102
which you know well,

1134
01:37:22,970 --> 01:37:24,905
it's about the performance

1135
01:37:24,905 --> 01:37:26,640
optimization. I think that's the key

1136
01:37:26,640 --> 01:37:28,442
component of it, which for us is

1137
01:37:28,442 --> 01:37:29,543
fundamental, right? Because

1138
01:37:29,543 --> 01:37:31,412
it's like, how do I invest the fishing with

1139
01:37:31,412 --> 01:37:33,981
effective unless I have

1140
01:37:33,981 --> 01:37:35,516
data clear rooms where

1141
01:37:35,516 --> 01:37:37,318
I'm able to match some of the first party

1142
01:37:37,318 --> 01:37:38,919
data that I have as well. Like some of the

1143
01:37:38,953 --> 01:37:41,088
markets, read the first party data and

1144
01:37:41,088 --> 01:37:42,323
create some very specific

1145
01:37:42,323 --> 01:37:43,424
precision marketing target

1146
01:37:43,424 --> 01:37:45,459
thing. Exactly. It's very hard for me to do

1147
01:37:45,459 --> 01:37:46,994
the job right. Okay, now

1148
01:37:46,994 --> 01:37:49,463
you came to the next sensitive

1149
01:37:49,463 --> 01:37:53,567
area, measurement. I mean, yeah, first party

1150
01:37:53,567 --> 01:37:55,269
data came a long way. I

1151
01:37:55,269 --> 01:37:57,571
also agree and there is room to

1152
01:37:57,571 --> 01:37:59,873
grow. But in terms of measurement, we have

1153
01:37:59,873 --> 01:38:01,008
so many solutions in the

1154
01:38:01,008 --> 01:38:02,176
market. Some of them are very

1155
01:38:02,176 --> 01:38:04,411
well proven vetted mainstream global

1156
01:38:04,411 --> 01:38:06,113
solutions. Some of them

1157
01:38:06,113 --> 01:38:07,081
will rely on the retailer and

1158
01:38:07,147 --> 01:38:09,183
marketplace reporting. Sometimes we rely on

1159
01:38:09,183 --> 01:38:10,584
the agency. It's also

1160
01:38:10,584 --> 01:38:12,786
fragmented. The choppy waters

1161
01:38:12,786 --> 01:38:16,090
territory. Yes. Where do you see measurement

1162
01:38:16,090 --> 01:38:16,991
because all the whole

1163
01:38:16,991 --> 01:38:18,425
cause now we discussed this

1164
01:38:18,425 --> 01:38:20,728
as well. All the whole co agencies managing

1165
01:38:20,728 --> 01:38:21,829
billions of media

1166
01:38:21,829 --> 01:38:24,231
budgets. Also reporting back

1167
01:38:24,231 --> 01:38:28,502
with the acquisitions they made. Do you see

1168
01:38:28,502 --> 01:38:30,471
some consolidation in the

1169
01:38:30,471 --> 01:38:31,805
measurement landscape or do

1170
01:38:31,805 --> 01:38:33,474
you see in house building capabilities? Do

1171
01:38:33,474 --> 01:38:34,108
you mention some

1172
01:38:34,108 --> 01:38:36,143
capabilities? Yes, I think, I think

1173
01:38:36,143 --> 01:38:39,346
I see a good intent. Okay, that's a good

1174
01:38:39,346 --> 01:38:42,383
word, which I think is a

1175
01:38:42,383 --> 01:38:44,118
careful and political word

1176
01:38:44,118 --> 01:38:47,087
chosen by you smart. So intention, I think

1177
01:38:47,087 --> 01:38:49,023
is clear. And it's good

1178
01:38:49,023 --> 01:38:51,091
intentions. If I look at where

1179
01:38:51,091 --> 01:38:52,826
we're at from an art perspective, however,

1180
01:38:53,661 --> 01:38:54,628
because often enough

1181
01:38:54,628 --> 01:38:57,164
attribution windows differ, because

1182
01:38:57,164 --> 01:38:59,700
often enough some of the elements that we

1183
01:38:59,700 --> 01:39:01,368
receive from some specific

1184
01:39:01,368 --> 01:39:03,003
retailers are not to the level

1185
01:39:03,070 --> 01:39:05,105
of granularity that I was mentioning in

1186
01:39:05,105 --> 01:39:06,373
those discussions around

1187
01:39:06,373 --> 01:39:08,042
how do I prioritize a specific

1188
01:39:08,042 --> 01:39:10,644
retail media network. Inevitably, what we

1189
01:39:10,644 --> 01:39:11,645
have to do is get to a

1190
01:39:11,645 --> 01:39:13,380
point where we build a report in

1191
01:39:13,380 --> 01:39:16,784
house, right? We were able because we wanted

1192
01:39:16,784 --> 01:39:17,651
to have our own

1193
01:39:17,651 --> 01:39:19,486
understanding of how on what level of

1194
01:39:19,486 --> 01:39:21,455
incrementality we were we truly getting

1195
01:39:21,455 --> 01:39:23,290
without taking some of

1196
01:39:23,290 --> 01:39:24,491
these retail media networks,

1197
01:39:24,491 --> 01:39:26,226
marketing their own homework. We wanted to

1198
01:39:26,226 --> 01:39:28,696
be pragmatic and clear in

1199
01:39:28,696 --> 01:39:29,363
terms of our privatization.

1200
01:39:29,663 --> 01:39:32,199
Inevitably, we have to build our own our own

1201
01:39:32,199 --> 01:39:33,267
solution to be able to

1202
01:39:33,267 --> 01:39:35,402
understand and compare

1203
01:39:35,402 --> 01:39:38,005
apples across different retail. Is it global

1204
01:39:38,005 --> 01:39:38,872
or regional? It's a

1205
01:39:38,872 --> 01:39:40,374
global thing. Wonderful. Which

1206
01:39:40,374 --> 01:39:42,710
I think it's a it's not ideal to build

1207
01:39:42,710 --> 01:39:43,911
something like that. You've

1208
01:39:43,911 --> 01:39:45,012
got to start somewhere. You've

1209
01:39:45,012 --> 01:39:46,980
got to start somewhere to be able for you to

1210
01:39:46,980 --> 01:39:49,283
be super clear around am I

1211
01:39:49,283 --> 01:39:50,751
truly investing my dollars

1212
01:39:50,784 --> 01:39:53,354
widely? Is the ROI I'm receiving for

1213
01:39:53,354 --> 01:39:55,322
RetailRx better than the one that I'm

1214
01:39:55,322 --> 01:39:56,390
receiving for RetailY

1215
01:39:57,057 --> 01:39:58,192
and to be able to have some clear

1216
01:39:58,192 --> 01:40:00,127
benchmarks? That is the club.

1217
01:40:00,461 --> 01:40:02,196
It took us a year to get there.

1218
01:40:02,196 --> 01:40:03,831
I think it's a great solution for what we

1219
01:40:03,831 --> 01:40:04,865
need now. Is it truly

1220
01:40:04,865 --> 01:40:06,200
something that we will be lifting

1221
01:40:06,200 --> 01:40:08,569
and using the future? Probably not if the

1222
01:40:08,569 --> 01:40:09,770
intention comes to fruition.

1223
01:40:10,637 --> 01:40:11,905
It's a journey and there are

1224
01:40:11,905 --> 01:40:15,376
stages. But since you managed that I love

1225
01:40:15,376 --> 01:40:17,011
actually since the opening,

1226
01:40:17,878 --> 01:40:19,346
you're hitting all the hot

1227
01:40:19,346 --> 01:40:21,548
spots for me. You mentioned product owner,

1228
01:40:22,249 --> 01:40:23,217
you mentioned the

1229
01:40:23,217 --> 01:40:25,986
implementation of specific roles in

1230
01:40:25,986 --> 01:40:28,021
the BU. Now you mentioned that you have

1231
01:40:28,021 --> 01:40:29,223
in-house capabilities for

1232
01:40:29,223 --> 01:40:31,091
measurement and naturally we

1233
01:40:31,091 --> 01:40:32,860
ended up in the artificial intelligence

1234
01:40:32,860 --> 01:40:36,730
world now. So AI. I'm sure I

1235
01:40:36,730 --> 01:40:38,298
mean we don't do anything without

1236
01:40:38,298 --> 01:40:41,201
AI nowadays. I mean I don't see the need to

1237
01:40:41,201 --> 01:40:42,903
mention their existence of

1238
01:40:42,903 --> 01:40:44,905
AI. But walk us through a couple

1239
01:40:44,905 --> 01:40:48,008
of the AI driven AI forced transformative

1240
01:40:48,008 --> 01:40:48,709
initiatives

1241
01:40:48,709 --> 01:40:51,011
capabilities you built and how do

1242
01:40:51,045 --> 01:40:53,881
you invest in AI? Or are you taking to the

1243
01:40:53,881 --> 01:40:55,849
agent automation? What's the

1244
01:40:55,849 --> 01:40:57,851
next phrase? So I think for me

1245
01:41:00,220 --> 01:41:01,789
from an other perspective probably what

1246
01:41:01,789 --> 01:41:04,224
we're using is two areas

1247
01:41:04,224 --> 01:41:06,927
right? And AI is interesting

1248
01:41:06,927 --> 01:41:09,830
because AI has applicabilities that are to

1249
01:41:09,830 --> 01:41:12,733
your point earlier vast right? So if I sync

1250
01:41:12,733 --> 01:41:14,902
a retail media which is a hot topic as we

1251
01:41:14,902 --> 01:41:15,702
just discussed,

1252
01:41:16,737 --> 01:41:18,939
hyper-personalization and targeting.

1253
01:41:19,039 --> 01:41:21,408
Some of that big stuff that AI can enable us

1254
01:41:21,408 --> 01:41:22,309
right? In terms of

1255
01:41:22,309 --> 01:41:23,710
analyzing a vast amount of

1256
01:41:23,710 --> 01:41:27,147
consumer data making sense out of it. The ad

1257
01:41:27,147 --> 01:41:33,087
automation, six seven years ago I had people

1258
01:41:33,921 --> 01:41:36,623
in teams in the local markets bidding

1259
01:41:36,623 --> 01:41:39,960
manually against specific

1260
01:41:39,960 --> 01:41:41,061
sales. I remember. I remember

1261
01:41:41,361 --> 01:41:43,664
that's what it was five six years ago. I

1262
01:41:43,664 --> 01:41:46,166
felt like we were at war

1263
01:41:46,166 --> 01:41:49,603
against the big armies with sticks.

1264
01:41:50,337 --> 01:41:52,272
Transformers versus humans. We were throwing

1265
01:41:52,272 --> 01:41:53,607
sticks at them and I

1266
01:41:53,607 --> 01:41:55,109
think that's probably where

1267
01:41:55,109 --> 01:41:56,944
we were five five years ago. And obviously

1268
01:41:56,944 --> 01:41:58,645
the whole automation of

1269
01:41:58,645 --> 01:42:01,715
optimization of the best

1270
01:42:01,748 --> 01:42:04,318
media to get the best action on the best

1271
01:42:04,318 --> 01:42:05,986
outcome is a clear part of it

1272
01:42:05,986 --> 01:42:08,355
right? What I'm super excited

1273
01:42:08,555 --> 01:42:11,291
when I think about AI and I think is where

1274
01:42:11,291 --> 01:42:13,861
potentially this will also go from a retail

1275
01:42:13,861 --> 01:42:15,762
media perspective and it will change some of

1276
01:42:15,762 --> 01:42:18,832
our our approach is the

1277
01:42:18,832 --> 01:42:20,200
whole conversational AI

1278
01:42:20,634 --> 01:42:23,670
search specific. Which I think is a great

1279
01:42:23,670 --> 01:42:25,205
topic because if you think

1280
01:42:25,205 --> 01:42:26,473
about how we are managing

1281
01:42:26,473 --> 01:42:28,675
search for some of our brands is about

1282
01:42:28,675 --> 01:42:30,511
keywords, keyword targeting

1283
01:42:30,511 --> 01:42:33,514
right? The level of search and

1284
01:42:33,514 --> 01:42:34,781
where you see some of the transformation

1285
01:42:34,781 --> 01:42:36,550
from the likes of Google. But

1286
01:42:36,550 --> 01:42:37,651
I think sooner or later we'll

1287
01:42:37,684 --> 01:42:40,854
come to the retailers is about how does

1288
01:42:40,854 --> 01:42:42,089
conversational search

1289
01:42:42,089 --> 01:42:43,690
dramatically shift the way

1290
01:42:43,690 --> 01:42:47,327
consumers are engaging with search. How it

1291
01:42:47,327 --> 01:42:48,862
will impact us. I think

1292
01:42:48,862 --> 01:42:50,464
it will impact us in a way

1293
01:42:50,464 --> 01:42:53,500
that's a lot more contextual. It will

1294
01:42:53,500 --> 01:42:56,570
inevitably help us to redevelop and

1295
01:42:56,570 --> 01:42:57,771
reconsider how we create

1296
01:42:57,771 --> 01:43:01,942
content specifically because it's so smart

1297
01:43:01,942 --> 01:43:03,343
in a way that it's done

1298
01:43:03,343 --> 01:43:04,711
differently to what it is today.

1299
01:43:05,279 --> 01:43:07,514
I'm not long ago just be focusing on key

1300
01:43:07,514 --> 01:43:08,849
search though which is

1301
01:43:08,849 --> 01:43:10,350
how my search strategy works

1302
01:43:10,350 --> 01:43:12,185
right now but I need to start feeding into

1303
01:43:12,185 --> 01:43:14,621
something a lot more conversation. And I can

1304
01:43:14,621 --> 01:43:17,524
see the perfect use case. I mean anyone

1305
01:43:17,524 --> 01:43:18,959
spending time in kitchen

1306
01:43:18,959 --> 01:43:20,861
dealing with anywhere between

1307
01:43:20,861 --> 01:43:23,463
five to fifteen ingredients and there is

1308
01:43:23,463 --> 01:43:24,965
always a media element in the

1309
01:43:24,965 --> 01:43:26,400
kitchen. You're entertaining,

1310
01:43:26,900 --> 01:43:29,102
you're cooking, you're doing breakfast. So

1311
01:43:29,102 --> 01:43:31,572
search is a way of making

1312
01:43:31,572 --> 01:43:33,907
things effective and faster

1313
01:43:34,007 --> 01:43:35,609
in the kitchen anyway. It's not like a

1314
01:43:35,609 --> 01:43:37,644
parade or cosmetics. So I can

1315
01:43:37,644 --> 01:43:38,879
see the perfect use case and

1316
01:43:38,879 --> 01:43:40,814
since you correct the code with a great

1317
01:43:40,814 --> 01:43:42,649
previous example like

1318
01:43:42,649 --> 01:43:44,585
shoppable media of click to cook

1319
01:43:44,952 --> 01:43:47,054
and I can see another great example coming

1320
01:43:47,054 --> 01:43:48,855
in the conversational

1321
01:43:48,855 --> 01:43:50,290
search area with some retail.

1322
01:43:50,724 --> 01:43:52,492
Maybe it's too early for the retailers but

1323
01:43:52,492 --> 01:43:53,527
you're seeing it some of

1324
01:43:53,527 --> 01:43:54,861
these retail stuff and already

1325
01:43:54,861 --> 01:43:56,430
shifting especially in different vertical.

1326
01:43:56,697 --> 01:43:59,166
Yeah. But that's I think is in the

1327
01:43:59,166 --> 01:44:00,200
direction. How it will

1328
01:44:00,267 --> 01:44:02,402
impact us is an open question because I

1329
01:44:02,402 --> 01:44:03,403
don't have a crystal ball

1330
01:44:03,403 --> 01:44:04,771
answer to it. And this is a

1331
01:44:05,038 --> 01:44:09,109
great segue to digital shelf because unlike

1332
01:44:09,109 --> 01:44:11,111
retail media and

1333
01:44:11,111 --> 01:44:13,180
sponsored or paid search results

1334
01:44:13,513 --> 01:44:15,649
conversational search will require past

1335
01:44:15,649 --> 01:44:16,850
purchase behavior,

1336
01:44:16,850 --> 01:44:18,785
keyword relevancy, online and

1337
01:44:18,785 --> 01:44:21,888
stock availability, product performance and

1338
01:44:21,888 --> 01:44:22,990
all the components of

1339
01:44:22,990 --> 01:44:24,725
digital chef. Okay another

1340
01:44:24,891 --> 01:44:27,327
challenging question for you. I mean digital

1341
01:44:27,327 --> 01:44:28,428
shelf is even more

1342
01:44:28,428 --> 01:44:30,931
advanced and mature capability now

1343
01:44:31,031 --> 01:44:33,367
much longer in the market. Are you satisfied

1344
01:44:33,367 --> 01:44:34,768
and happy with the

1345
01:44:34,768 --> 01:44:36,136
current digital self measurement

1346
01:44:36,470 --> 01:44:40,941
stage we are as a CPG global landscape? Are

1347
01:44:40,941 --> 01:44:41,708
you building anything

1348
01:44:41,708 --> 01:44:43,010
exciting on digital shelf?

1349
01:44:44,177 --> 01:44:47,180
I think for me digital shelf is the

1350
01:44:47,180 --> 01:44:49,016
fundamentals right. I told you

1351
01:44:49,016 --> 01:44:51,818
earlier how we as all I need to

1352
01:44:51,852 --> 01:44:54,988
fall in love with fundamentals. Somebody was

1353
01:44:54,988 --> 01:44:56,923
talking it was Kobe Bryant believe it or not

1354
01:44:57,424 --> 01:45:00,894
black man. Okay oh yeah. He spoke about the

1355
01:45:00,894 --> 01:45:02,629
fact that it's all about

1356
01:45:02,629 --> 01:45:04,531
falling in love with fundamentals.

1357
01:45:04,831 --> 01:45:08,135
Any good fantastic NBA all-star player like

1358
01:45:08,135 --> 01:45:10,604
him like he was was

1359
01:45:10,604 --> 01:45:12,105
spending the vast majority of his

1360
01:45:12,105 --> 01:45:14,574
time focusing on the fundamentals. Okay. And

1361
01:45:14,574 --> 01:45:16,043
that's where often enough we

1362
01:45:16,043 --> 01:45:17,411
talk about the non-sexy stuff

1363
01:45:17,444 --> 01:45:19,980
and I am absolutely cool with falling in

1364
01:45:19,980 --> 01:45:21,048
love with non-sexy stuff

1365
01:45:21,048 --> 01:45:22,215
and I think we as all have

1366
01:45:22,215 --> 01:45:24,551
a need of doing that. Digital shelf is

1367
01:45:24,551 --> 01:45:26,687
stables. Must have

1368
01:45:26,687 --> 01:45:28,388
fundamental fundamentals. And for us

1369
01:45:28,388 --> 01:45:30,223
it's key right. We drive it for the flywheel

1370
01:45:30,223 --> 01:45:31,792
like any big because

1371
01:45:31,792 --> 01:45:33,827
organization has. We're obviously

1372
01:45:33,827 --> 01:45:38,365
also lifting and utilizing AI in some

1373
01:45:38,365 --> 01:45:39,866
instances to do that and

1374
01:45:39,866 --> 01:45:41,134
it's two areas that we use AI

1375
01:45:41,835 --> 01:45:46,206
by applying itself to the digital shelf. And

1376
01:45:46,206 --> 01:45:47,941
for me those two areas are

1377
01:45:49,910 --> 01:45:52,846
the content part. The content creation piece

1378
01:45:52,846 --> 01:45:55,549
we've done so much that

1379
01:45:55,549 --> 01:45:57,351
I'm so proud of over the last

1380
01:45:57,351 --> 01:46:00,921
12 months in terms of enhancing some of our

1381
01:46:00,921 --> 01:46:03,390
content to the level that needs to be done

1382
01:46:03,757 --> 01:46:07,661
in order for us to hit that specific shop or

1383
01:46:07,661 --> 01:46:09,029
that consumer's context

1384
01:46:09,029 --> 01:46:10,130
for buying a product which is

1385
01:46:10,230 --> 01:46:12,599
great. There are some great tools out there

1386
01:46:12,599 --> 01:46:14,201
which allow us to

1387
01:46:14,201 --> 01:46:16,703
understand when we're doing

1388
01:46:16,703 --> 01:46:18,605
content creation how do we optimize further.

1389
01:46:19,506 --> 01:46:21,808
You know some the business of the world, the

1390
01:46:21,808 --> 01:46:23,176
driving flies of the world. These are some

1391
01:46:23,176 --> 01:46:24,745
of the tools that we're

1392
01:46:24,745 --> 01:46:26,113
doing from that perspective.

1393
01:46:26,913 --> 01:46:29,750
That has both the visual but also the

1394
01:46:29,750 --> 01:46:30,951
written components. Those

1395
01:46:30,951 --> 01:46:32,219
are very important for us.

1396
01:46:32,386 --> 01:46:34,721
The content element of digital shelf is key

1397
01:46:34,721 --> 01:46:36,823
for us. The other

1398
01:46:36,823 --> 01:46:38,525
aspect and this is inevitably

1399
01:46:38,825 --> 01:46:41,862
something that we are very very very very

1400
01:46:41,862 --> 01:46:44,030
clear on is how do we apply

1401
01:46:44,030 --> 01:46:45,332
for example machine learning

1402
01:46:45,332 --> 01:46:47,334
into some of the elements of digital shelf

1403
01:46:47,334 --> 01:46:50,103
optimization. Taking actions that are

1404
01:46:50,971 --> 01:46:53,640
accounting for the impact that I could have.

1405
01:46:53,640 --> 01:46:55,509
Some of the KPIs that we're measuring around

1406
01:46:55,509 --> 01:46:58,645
distribution, around availability, online

1407
01:46:58,645 --> 01:47:00,080
and offline sales. To be

1408
01:47:00,080 --> 01:47:01,181
able for us to make some

1409
01:47:01,181 --> 01:47:03,283
informed decision around the action that I

1410
01:47:03,283 --> 01:47:04,351
should be taking on the

1411
01:47:04,351 --> 01:47:05,852
specific ASU, in that specific

1412
01:47:06,086 --> 01:47:08,555
retail, in that market is clear because it's

1413
01:47:08,555 --> 01:47:10,290
all driven by some very

1414
01:47:10,290 --> 01:47:11,324
clear understanding of the

1415
01:47:11,458 --> 01:47:13,160
measurability and the impact of it. Exactly.

1416
01:47:13,727 --> 01:47:14,528
And this is the

1417
01:47:14,528 --> 01:47:16,763
fundamentals of what you will expect

1418
01:47:16,763 --> 01:47:18,765
any digital shelf analytics tool to be able

1419
01:47:18,765 --> 01:47:20,434
to provide. We have a

1420
01:47:20,434 --> 01:47:21,935
partner that we're working on

1421
01:47:21,935 --> 01:47:24,738
that does exactly that and it's about really

1422
01:47:24,738 --> 01:47:26,473
driving that element of

1423
01:47:26,473 --> 01:47:27,474
optimization under the

1424
01:47:27,507 --> 01:47:30,043
shelf which is key. Taking considerable

1425
01:47:30,043 --> 01:47:31,244
action based on the outcome.

1426
01:47:32,345 --> 01:47:34,047
Source question, spotlight,

1427
01:47:34,881 --> 01:47:37,050
how fast if you want to update the digital

1428
01:47:37,050 --> 01:47:38,185
content on any given

1429
01:47:38,185 --> 01:47:39,786
retail of any given market?

1430
01:47:39,786 --> 01:47:41,621
What is the shortest period of time you can

1431
01:47:41,621 --> 01:47:42,823
execute the option with?

1432
01:47:43,089 --> 01:47:44,024
It's a fantastic question.

1433
01:47:44,524 --> 01:47:46,927
Yesterday I was talking to a CMO because I

1434
01:47:46,927 --> 01:47:48,562
said to we need to be able

1435
01:47:48,562 --> 01:47:51,164
across, I think we have in

1436
01:47:51,164 --> 01:47:53,400
excess of I don't know how many thousand

1437
01:47:53,400 --> 01:47:54,801
SKUs we were looking into.

1438
01:47:54,801 --> 01:47:56,102
This is across right so you

1439
01:47:56,102 --> 01:47:57,471
might have a very long tail or some of the

1440
01:47:57,471 --> 01:47:59,940
SKUs. We made an estimate

1441
01:47:59,940 --> 01:48:02,843
that with the current speed it

1442
01:48:02,876 --> 01:48:05,612
will take us three years. I know that's why.

1443
01:48:05,846 --> 01:48:07,681
So I said to him yes and

1444
01:48:07,681 --> 01:48:08,849
we were discussing how do we

1445
01:48:08,849 --> 01:48:10,884
speed it up in order for us to do it in 11

1446
01:48:10,884 --> 01:48:13,086
months. Whether I will be

1447
01:48:13,086 --> 01:48:14,421
able to live in that time frame

1448
01:48:14,421 --> 01:48:16,723
depending on tools, depending on people,

1449
01:48:16,990 --> 01:48:18,859
depending on investment, I'll

1450
01:48:18,859 --> 01:48:20,126
come back to you in 11 months

1451
01:48:20,160 --> 01:48:21,561
because the outcome is otherwise three

1452
01:48:21,561 --> 01:48:22,729
years. And it's not in your

1453
01:48:22,729 --> 01:48:25,131
hands. Again it takes two to

1454
01:48:25,131 --> 01:48:28,101
tango. Some retailers, some platforms don't

1455
01:48:28,101 --> 01:48:30,136
accept content update. This

1456
01:48:30,136 --> 01:48:31,571
is clearly not with the level

1457
01:48:31,605 --> 01:48:33,507
of have they looked end to end process and

1458
01:48:33,507 --> 01:48:34,174
syndication. I'm just

1459
01:48:34,174 --> 01:48:35,175
talking about the content

1460
01:48:35,208 --> 01:48:37,711
creation. Preparing it to be syndicated.

1461
01:48:38,078 --> 01:48:39,446
Okay yes it's a very challenging. The

1462
01:48:39,446 --> 01:48:40,447
syndication goes a bit.

1463
01:48:40,947 --> 01:48:45,652
I know. I love it. And now I want to elevate

1464
01:48:45,652 --> 01:48:46,953
us again. We talk a lot

1465
01:48:46,953 --> 01:48:48,154
on the ground level with

1466
01:48:48,154 --> 01:48:50,657
tactical implementations, great case

1467
01:48:50,657 --> 01:48:52,225
studies, where the opportunity

1468
01:48:52,225 --> 01:48:55,996
is. But take your palantir out,

1469
01:48:56,529 --> 01:48:59,466
crystal ball out. Tell us where do you see

1470
01:48:59,466 --> 01:49:00,967
in the future of e-commerce,

1471
01:49:01,167 --> 01:49:02,836
what Arla is preparing for.

1472
01:49:03,503 --> 01:49:05,672
And also let's go a little ambitious. Let's

1473
01:49:05,672 --> 01:49:07,240
go selfish. What do you

1474
01:49:07,240 --> 01:49:08,308
want to see in the future

1475
01:49:08,308 --> 01:49:10,543
of e-commerce as an e-commerce season

1476
01:49:10,543 --> 01:49:13,380
leader? I think for me it's

1477
01:49:13,380 --> 01:49:15,181
super interesting. There's

1478
01:49:15,181 --> 01:49:18,285
some big challenges ahead of us. In any big

1479
01:49:18,285 --> 01:49:19,452
FMCG I'm sure you've seen

1480
01:49:19,452 --> 01:49:20,554
the latest results from some

1481
01:49:20,554 --> 01:49:22,489
of the big guys that were posted in terms of

1482
01:49:22,489 --> 01:49:23,189
the yearly results.

1483
01:49:24,024 --> 01:49:24,991
Things are getting tough.

1484
01:49:25,125 --> 01:49:27,761
Things are getting tough. We at Arla, I

1485
01:49:27,761 --> 01:49:29,162
think today we're going to

1486
01:49:29,162 --> 01:49:31,331
be posting our yearly results

1487
01:49:31,331 --> 01:49:32,766
which have been solid. They've been good.

1488
01:49:33,300 --> 01:49:35,569
E-commerce we've done exceptionally well.

1489
01:49:36,970 --> 01:49:39,940
Just in touch with for me. That's important.

1490
01:49:40,807 --> 01:49:41,308
I think what you're going

1491
01:49:41,308 --> 01:49:44,744
to see is a real focus on

1492
01:49:45,845 --> 01:49:48,281
inevitably value as a key driver for some of

1493
01:49:48,281 --> 01:49:48,848
the shoppers and

1494
01:49:48,848 --> 01:49:50,450
consumers. Yes we've come off the

1495
01:49:50,450 --> 01:49:52,252
back of the hyperinflation but it's not like

1496
01:49:52,252 --> 01:49:52,986
inflation has gone

1497
01:49:52,986 --> 01:49:54,120
away from us. The level of

1498
01:49:54,888 --> 01:49:57,290
price that we have put it through the market

1499
01:49:57,290 --> 01:49:59,192
as a manufacturer is high

1500
01:49:59,192 --> 01:50:00,160
and I think it's still going

1501
01:50:00,160 --> 01:50:01,728
to be there. That's going to clearly impact

1502
01:50:01,728 --> 01:50:04,230
the brand growth. And we

1503
01:50:04,230 --> 01:50:05,832
are lucky now because we also

1504
01:50:05,832 --> 01:50:08,335
produce on label for some of the big retail

1505
01:50:08,335 --> 01:50:09,102
out there. So it's a

1506
01:50:09,102 --> 01:50:10,303
careful balancing act that we

1507
01:50:10,303 --> 01:50:12,138
have for example working out. But in general

1508
01:50:12,138 --> 01:50:14,107
and in generalizing value as

1509
01:50:14,107 --> 01:50:14,808
a key driver is going to be

1510
01:50:14,808 --> 01:50:16,977
there. That puts discount as a channel still

1511
01:50:16,977 --> 01:50:19,145
very much growth. Mindful of

1512
01:50:19,145 --> 01:50:20,213
the fact that over the last

1513
01:50:21,181 --> 01:50:24,150
12 to 15 months e-commerce in some of the

1514
01:50:24,150 --> 01:50:25,485
big markets in grocery

1515
01:50:25,485 --> 01:50:26,486
in some of our categories

1516
01:50:26,486 --> 01:50:28,588
has been outpacing the rest of the other

1517
01:50:28,588 --> 01:50:31,324
categories. That's yet and I

1518
01:50:31,324 --> 01:50:32,726
think that will still stay. I

1519
01:50:32,726 --> 01:50:34,561
think e-commerce is still going to be the

1520
01:50:34,561 --> 01:50:36,463
growth driver. It's going to

1521
01:50:36,463 --> 01:50:37,731
count as in the latest I've

1522
01:50:37,731 --> 01:50:40,300
seen it for about 20% of the growth. 20 plus

1523
01:50:40,300 --> 01:50:41,901
yes. So 20 plus across the

1524
01:50:41,901 --> 01:50:43,103
global. It depends obviously

1525
01:50:43,103 --> 01:50:45,639
the different verticals in different ways in

1526
01:50:45,639 --> 01:50:48,141
general. Some of which

1527
01:50:48,141 --> 01:50:49,009
are not high with that.

1528
01:50:49,909 --> 01:50:51,144
Which means that the channels in growth

1529
01:50:51,144 --> 01:50:53,480
which means the fundamentals of the channels

1530
01:50:53,680 --> 01:50:55,749
are there. They're strong. They're still

1531
01:50:55,749 --> 01:50:57,684
going to be strong. What

1532
01:50:57,684 --> 01:50:58,885
I'm going to see I think is

1533
01:50:58,885 --> 01:51:02,989
a big shift where the power couples

1534
01:51:02,989 --> 01:51:04,290
countries are going to be

1535
01:51:04,290 --> 01:51:05,892
shifting. You used to talk about

1536
01:51:05,925 --> 01:51:08,161
China and North America has been the two

1537
01:51:08,161 --> 01:51:09,429
growth drivers. There were

1538
01:51:09,429 --> 01:51:12,132
50% of that growth. I think

1539
01:51:12,332 --> 01:51:16,536
you will see other markets other areas

1540
01:51:16,536 --> 01:51:18,705
growing fast that you need

1541
01:51:18,705 --> 01:51:20,206
to be accounting for. That

1542
01:51:20,206 --> 01:51:22,142
puts pressure on us to be able to really

1543
01:51:22,142 --> 01:51:24,210
understand am I better off

1544
01:51:24,210 --> 01:51:25,512
spending my resources growing

1545
01:51:25,512 --> 01:51:27,681
for example in North America or am I better

1546
01:51:27,681 --> 01:51:29,249
off futureing some of that

1547
01:51:29,249 --> 01:51:30,617
growth. Predicting the next

1548
01:51:30,617 --> 01:51:32,452
way. Predicting the next way. That's going

1549
01:51:32,452 --> 01:51:33,453
to be an interesting one.

1550
01:51:34,487 --> 01:51:35,388
The other piece is going to

1551
01:51:35,388 --> 01:51:37,490
become even harder is a fragmentation. You

1552
01:51:37,490 --> 01:51:38,825
go here I'm going to

1553
01:51:38,825 --> 01:51:39,826
talk a little about further

1554
01:51:39,826 --> 01:51:41,361
fragmentation. We're at the heart of

1555
01:51:41,361 --> 01:51:43,229
fragmentation. We are here we

1556
01:51:43,229 --> 01:51:44,464
are the heart of fragmentation

1557
01:51:44,464 --> 01:51:46,599
forgetting North America which is still

1558
01:51:46,599 --> 01:51:47,801
going to become more

1559
01:51:47,801 --> 01:51:49,769
fragmented. Europe is fragmented by

1560
01:51:49,769 --> 01:51:50,837
default and we want to become more

1561
01:51:50,837 --> 01:51:52,672
fragmented within the

1562
01:51:52,672 --> 01:51:54,474
channel. And then the other piece was

1563
01:51:54,474 --> 01:51:56,109
the omnichannel stuff. The omnichannel

1564
01:51:56,109 --> 01:51:57,210
value driver. The only

1565
01:51:57,210 --> 01:51:59,345
channel aim to end profitability

1566
01:51:59,512 --> 01:52:01,247
is going to be a keyword for us. That means

1567
01:52:01,247 --> 01:52:03,650
as I said to you is the

1568
01:52:03,650 --> 01:52:05,218
shift in growth series around

1569
01:52:06,219 --> 01:52:10,490
value, retail media, balancing as I said to

1570
01:52:10,490 --> 01:52:12,425
you earlier short-term

1571
01:52:12,425 --> 01:52:14,794
tactical gains versus long-term

1572
01:52:14,794 --> 01:52:17,030
brand building activities. These are some of

1573
01:52:17,030 --> 01:52:18,231
the headaches that we're going to have

1574
01:52:18,731 --> 01:52:21,334
and the whole thinking and the whole focus

1575
01:52:21,334 --> 01:52:22,702
on the channel

1576
01:52:22,702 --> 01:52:24,471
investment I think is going to

1577
01:52:24,471 --> 01:52:26,439
need here for us. So we're going to have to

1578
01:52:26,439 --> 01:52:27,440
make some tough choices I

1579
01:52:27,440 --> 01:52:29,642
think in other and any big

1580
01:52:30,410 --> 01:52:32,612
manufacturer. That's what we're getting paid

1581
01:52:32,612 --> 01:52:33,446
for. That's what we're

1582
01:52:33,446 --> 01:52:35,014
getting paid for I guess and I

1583
01:52:35,014 --> 01:52:38,184
think for me it's really making sure and I

1584
01:52:38,184 --> 01:52:39,252
think we do the right thing from a

1585
01:52:39,252 --> 01:52:40,086
prioritization of the

1586
01:52:40,086 --> 01:52:43,089
omnichannel value piece. Making clear

1587
01:52:43,089 --> 01:52:46,693
decisions and being very very demanding

1588
01:52:46,693 --> 01:52:48,061
around our investments.

1589
01:52:48,528 --> 01:52:51,397
Don't take it for granted. Don't just jump

1590
01:52:51,397 --> 01:52:52,832
on the wagon because

1591
01:52:52,832 --> 01:52:54,801
investments should be there. Protect

1592
01:52:54,968 --> 01:52:56,936
your brand. Fall in love with the

1593
01:52:56,936 --> 01:52:58,571
fundamentals. I keep saying that. I love

1594
01:52:58,571 --> 01:52:59,839
that. I think that's so

1595
01:52:59,839 --> 01:53:01,274
important for us to do because the

1596
01:53:01,274 --> 01:53:02,242
fundamentals are what's

1597
01:53:02,242 --> 01:53:03,276
going to keep our brand service

1598
01:53:04,010 --> 01:53:07,480
and then where you have the opportunity then

1599
01:53:07,480 --> 01:53:10,049
understand future back

1600
01:53:10,049 --> 01:53:10,750
where some of that growth

1601
01:53:10,750 --> 01:53:12,786
is going to come from. Because some of the

1602
01:53:12,786 --> 01:53:14,387
growth come from some markets

1603
01:53:14,387 --> 01:53:15,755
and some verticals you might

1604
01:53:15,755 --> 01:53:17,490
not be aware of. But make those tactical

1605
01:53:17,490 --> 01:53:18,892
choices. The famous Boston

1606
01:53:18,892 --> 01:53:21,060
Matrix e-commerce penetration

1607
01:53:21,294 --> 01:53:22,962
e-commerce growth. Where is it that you

1608
01:53:22,962 --> 01:53:24,497
can't play. There's a role

1609
01:53:24,497 --> 01:53:25,632
within the matrix organization.

1610
01:53:25,932 --> 01:53:28,101
Here I'm taking you up on this because you

1611
01:53:28,101 --> 01:53:30,103
said that some of the growth will come from

1612
01:53:30,370 --> 01:53:33,406
back from other pockets. Quick commerce

1613
01:53:33,406 --> 01:53:36,109
during Covid it exploded.

1614
01:53:36,810 --> 01:53:38,044
So many companies get so big

1615
01:53:38,044 --> 01:53:40,914
investments. Rapid delivery last mile etc.

1616
01:53:41,648 --> 01:53:43,049
Now they most of them went

1617
01:53:43,049 --> 01:53:44,384
into difficulty. Some of them

1618
01:53:44,384 --> 01:53:46,920
got bankrupt etc. But I've seen some reports

1619
01:53:46,920 --> 01:53:47,921
last six months last

1620
01:53:47,921 --> 01:53:49,088
seven months consecutively.

1621
01:53:49,823 --> 01:53:52,025
Quick commerce is not going anywhere and

1622
01:53:52,025 --> 01:53:53,860
still driving growth in

1623
01:53:53,860 --> 01:53:55,528
many of these markets. Not just

1624
01:53:55,528 --> 01:53:57,564
pockets but I want to see of course your

1625
01:53:57,564 --> 01:53:59,199
opinion. Do you see quick

1626
01:53:59,199 --> 01:54:00,967
commerce delivery last mile

1627
01:54:00,967 --> 01:54:03,069
delivery still a growth driver as a

1628
01:54:03,069 --> 01:54:04,204
sub-channel? How is your

1629
01:54:04,204 --> 01:54:06,139
experience? It varies by market.

1630
01:54:07,040 --> 01:54:09,676
It varies by players. For example some of

1631
01:54:09,676 --> 01:54:10,743
the Nordics in

1632
01:54:10,743 --> 01:54:12,512
Scandinavian markets the likes of the

1633
01:54:12,512 --> 01:54:15,248
Volt is a big growth drive. The likes for a

1634
01:54:15,248 --> 01:54:16,416
Flink in Germany for

1635
01:54:16,416 --> 01:54:17,517
example is a big growth driver.

1636
01:54:18,017 --> 01:54:19,752
So I think especially for some of our

1637
01:54:19,752 --> 01:54:20,820
categories and don't forget

1638
01:54:20,820 --> 01:54:22,822
that milk is one of the things

1639
01:54:22,822 --> 01:54:25,258
that you kind of realize in the evening that

1640
01:54:25,258 --> 01:54:25,925
you haven't got food.

1641
01:54:26,392 --> 01:54:27,327
You can't get your coffee.

1642
01:54:28,661 --> 01:54:31,664
And we massively inevitably over trade

1643
01:54:31,664 --> 01:54:33,466
because of that. Because of

1644
01:54:33,466 --> 01:54:35,168
our specific shop omission in

1645
01:54:35,168 --> 01:54:36,903
some of our categories like milk for

1646
01:54:36,903 --> 01:54:38,771
example. I think in some

1647
01:54:38,771 --> 01:54:39,973
areas over here we will still

1648
01:54:40,006 --> 01:54:43,943
drive some of our growth. Again how much and

1649
01:54:43,943 --> 01:54:47,614
how big? I think the jury is very much out.

1650
01:54:47,881 --> 01:54:49,949
The consolidation has put us away from the

1651
01:54:49,949 --> 01:54:50,850
excitement and the

1652
01:54:50,850 --> 01:54:51,651
destruction of the problem

1653
01:54:51,651 --> 01:54:53,620
we had three four years ago. It's something

1654
01:54:53,620 --> 01:54:54,954
that we are carefully

1655
01:54:54,954 --> 01:54:57,457
balanced. Great to hear that.

1656
01:54:58,358 --> 01:55:02,228
Now I love the balance you're bringing out

1657
01:55:02,228 --> 01:55:03,162
as a commerce

1658
01:55:03,162 --> 01:55:04,631
background people but you have a

1659
01:55:04,631 --> 01:55:06,699
tremendous understanding of technology. We

1660
01:55:06,699 --> 01:55:08,101
talk about many more tech

1661
01:55:08,101 --> 01:55:09,402
applications. We talk about

1662
01:55:09,435 --> 01:55:11,104
how it's going to make customer experience

1663
01:55:11,104 --> 01:55:12,705
better. Now I want to

1664
01:55:12,705 --> 01:55:14,407
turn the last shift gears

1665
01:55:14,641 --> 01:55:17,944
against towards consumer one more time. So

1666
01:55:17,944 --> 01:55:19,879
in order to make all

1667
01:55:19,879 --> 01:55:21,581
these changes meaningful for

1668
01:55:21,581 --> 01:55:24,183
the consumer we talk about you need

1669
01:55:24,183 --> 01:55:26,286
cross-functional team and it has a

1670
01:55:26,286 --> 01:55:27,487
synchronization of this team.

1671
01:55:27,887 --> 01:55:30,089
But at the end of the day this organization

1672
01:55:30,089 --> 01:55:31,824
needs to be effective. You

1673
01:55:31,824 --> 01:55:32,825
cannot just keep creating

1674
01:55:32,992 --> 01:55:35,762
roles. You cannot just keep dialing diagrams

1675
01:55:35,762 --> 01:55:36,729
and expect them to

1676
01:55:36,729 --> 01:55:39,532
perform. And I know you're a very

1677
01:55:40,967 --> 01:55:43,770
lead by example kind of person I've seen you

1678
01:55:43,770 --> 01:55:45,872
in action too. How do you

1679
01:55:45,872 --> 01:55:46,706
build this effectiveness

1680
01:55:46,806 --> 01:55:48,942
in the organization because this massive

1681
01:55:48,942 --> 01:55:52,111
transformation never stops. It's always on

1682
01:55:52,111 --> 01:55:54,747
the moon. It's like trying to fix the engine

1683
01:55:54,747 --> 01:55:55,815
while the engine is running.

1684
01:55:56,282 --> 01:55:57,350
Walk us through a little bit

1685
01:55:57,350 --> 01:56:00,219
of this organizational effectiveness in a

1686
01:56:00,219 --> 01:56:01,154
global company like

1687
01:56:01,154 --> 01:56:03,222
Arla. Yes I think for me

1688
01:56:04,490 --> 01:56:08,361
it's a careful balance between again some of

1689
01:56:08,361 --> 01:56:11,864
the fundamentals that we need to focus on.

1690
01:56:12,332 --> 01:56:17,370
It's also what culturally makes us unique I

1691
01:56:17,370 --> 01:56:18,571
think within e-commerce

1692
01:56:18,571 --> 01:56:19,739
is some of the soft skills.

1693
01:56:19,772 --> 01:56:24,344
I think for me soft skills are a key part of

1694
01:56:24,344 --> 01:56:28,581
something that we really really go by within

1695
01:56:28,581 --> 01:56:32,185
Arla. An example we are we call ourselves

1696
01:56:32,185 --> 01:56:33,553
data driven movers and

1697
01:56:33,553 --> 01:56:35,021
shakers. I think that's

1698
01:56:35,021 --> 01:56:38,191
that's the prime example of if I were to

1699
01:56:38,191 --> 01:56:39,225
pull out some of the soft

1700
01:56:39,225 --> 01:56:40,960
skill required to be successful

1701
01:56:41,828 --> 01:56:45,064
in any role within digital within Arla.

1702
01:56:45,064 --> 01:56:46,032
It's exactly that. It's

1703
01:56:46,032 --> 01:56:48,301
the whole shift of becoming

1704
01:56:48,801 --> 01:56:50,770
and focusing a lot more on some of those

1705
01:56:50,770 --> 01:56:51,771
soft skills which I think

1706
01:56:51,771 --> 01:56:53,006
is an interesting element.

1707
01:56:54,907 --> 01:56:57,377
I like the data driven movers and shakers

1708
01:56:57,377 --> 01:56:59,045
and next to the love the

1709
01:56:59,045 --> 01:57:00,380
fundamentals I think these

1710
01:57:00,380 --> 01:57:02,682
are good cause for me for my key takeaways.

1711
01:57:03,616 --> 01:57:05,418
But then you are

1712
01:57:05,418 --> 01:57:07,620
challenged with the generational

1713
01:57:08,154 --> 01:57:11,257
changes. Yes. And it's getting harder and

1714
01:57:11,257 --> 01:57:12,925
harder to motivate this

1715
01:57:12,925 --> 01:57:15,495
rapidly evolving agile team

1716
01:57:16,329 --> 01:57:18,064
before it was just a couple of generations

1717
01:57:18,064 --> 01:57:20,199
working together. Now four generations are

1718
01:57:20,199 --> 01:57:21,868
working at the same time. Fifth generations

1719
01:57:21,868 --> 01:57:23,669
on the way. How do you

1720
01:57:23,669 --> 01:57:25,004
lead as a leader? How do you

1721
01:57:25,004 --> 01:57:27,373
motivate these people and the soft skills

1722
01:57:27,373 --> 01:57:28,307
and also emotional

1723
01:57:28,307 --> 01:57:34,013
personal side? It's hard. I think

1724
01:57:34,080 --> 01:57:37,350
thanks for the honesty. I think it's not an

1725
01:57:37,350 --> 01:57:39,385
easy thing. Often enough

1726
01:57:39,385 --> 01:57:40,853
and I mentioned that to you

1727
01:57:40,887 --> 01:57:44,357
when we have a chat earlier. The

1728
01:57:44,357 --> 01:57:46,125
expectations of the young

1729
01:57:46,125 --> 01:57:49,162
force coming to work is very very

1730
01:57:49,195 --> 01:57:51,998
different to what my expectation was when I

1731
01:57:51,998 --> 01:57:52,965
was coming to work.

1732
01:57:53,366 --> 01:57:55,835
Right. In terms of flexibility,

1733
01:57:56,569 --> 01:57:59,272
in terms of hybrid ways of working, in terms

1734
01:57:59,272 --> 01:58:01,707
of collaboration. They

1735
01:58:01,707 --> 01:58:04,944
require it's interesting

1736
01:58:05,044 --> 01:58:07,046
because it's a bit of a dichotomy. They

1737
01:58:07,046 --> 01:58:11,250
require more hybrid ways of

1738
01:58:11,250 --> 01:58:13,319
working and yet they leverage

1739
01:58:13,419 --> 01:58:15,988
and strive when they are together and they

1740
01:58:15,988 --> 01:58:18,124
need to be in a spirit

1741
01:58:18,124 --> 01:58:19,659
where they are together. Right.

1742
01:58:19,659 --> 01:58:21,727
It's about that careful balance between

1743
01:58:21,727 --> 01:58:23,863
solutions that enable

1744
01:58:23,863 --> 01:58:26,899
people to get together and strive

1745
01:58:26,966 --> 01:58:30,603
and learn and work with each other and then

1746
01:58:30,603 --> 01:58:31,471
give them the

1747
01:58:31,471 --> 01:58:35,074
independence and the recognition

1748
01:58:35,908 --> 01:58:38,711
for what they're doing. So I think it's a

1749
01:58:38,711 --> 01:58:40,213
fine balance for me. What

1750
01:58:40,213 --> 01:58:41,681
motivates my team, I think

1751
01:58:41,981 --> 01:58:43,883
especially in a central accident for

1752
01:58:43,883 --> 01:58:48,020
example, is you are by

1753
01:58:48,020 --> 01:58:49,722
default in a central accident the

1754
01:58:50,022 --> 01:58:53,359
specialist in the function. There's no one

1755
01:58:53,359 --> 01:58:54,827
in general within

1756
01:58:54,827 --> 01:58:56,128
Arla that knows e-commerce

1757
01:58:56,229 --> 01:59:00,533
better than my team. That means that it's

1758
01:59:00,533 --> 01:59:03,102
hard for you unless you are

1759
01:59:03,102 --> 01:59:04,504
naturally curious and this

1760
01:59:04,504 --> 01:59:06,038
is where I'm really pushing my team to

1761
01:59:06,038 --> 01:59:08,674
really look external to learn

1762
01:59:08,674 --> 01:59:10,977
and increase your knowledge.

1763
01:59:11,344 --> 01:59:13,112
Right. Because what you're doing is you

1764
01:59:13,112 --> 01:59:14,547
might end up being lazy and

1765
01:59:14,547 --> 01:59:15,815
sit back because realistically

1766
01:59:15,915 --> 01:59:17,483
you're just training the people, you're

1767
01:59:17,483 --> 01:59:18,284
building the capabilities.

1768
01:59:18,618 --> 01:59:19,418
And you don't want to be left

1769
01:59:19,452 --> 01:59:21,554
behind crushed by the wind. Correct. You

1770
01:59:21,554 --> 01:59:22,288
keep building up. The

1771
01:59:22,288 --> 01:59:23,656
natural leader in e-commerce

1772
01:59:23,689 --> 01:59:25,591
needs to be curious. The curiosity is a

1773
01:59:25,591 --> 01:59:26,792
fundamental part of it and

1774
01:59:26,792 --> 01:59:30,163
that's why I hire more than ever

1775
01:59:30,563 --> 01:59:33,499
for soft skills like curiosity versus the

1776
01:59:33,499 --> 01:59:34,300
hard skills because I

1777
01:59:34,300 --> 01:59:35,401
know those hard skills I can

1778
01:59:35,401 --> 01:59:37,637
actually get. You can teach and you can

1779
01:59:37,637 --> 01:59:38,538
build upon. The soft

1780
01:59:38,538 --> 01:59:39,805
skills I'll never be able to do.

1781
01:59:40,573 --> 01:59:42,742
Yeah and soft skills are changing faster

1782
01:59:42,742 --> 01:59:44,577
than ever. It's so

1783
01:59:44,577 --> 01:59:45,745
important that I think the soft

1784
01:59:45,778 --> 01:59:47,880
skills are going to be here. G said it

1785
01:59:47,880 --> 01:59:48,915
right. The soft skills are

1786
01:59:48,915 --> 01:59:49,849
going to become the hard skills.

1787
01:59:49,849 --> 01:59:51,083
She's absolutely right. Soft is the new

1788
01:59:51,083 --> 01:59:52,785
hard. She said that. No.

1789
01:59:53,719 --> 01:59:55,288
Kudos to G from here as well.

1790
01:59:55,821 --> 01:59:58,791
Then okay I'm going to put you on a hot spot

1791
01:59:58,791 --> 02:00:00,459
one more time. Then with

1792
02:00:00,459 --> 02:00:01,894
all these dynamics of the

1793
02:00:01,894 --> 02:00:03,262
ways of working, with all these

1794
02:00:03,262 --> 02:00:05,331
organizational shifts, what

1795
02:00:05,331 --> 02:00:07,733
change do you predict to happen?

1796
02:00:08,467 --> 02:00:13,072
I think what you will find is more demand

1797
02:00:13,072 --> 02:00:16,075
around hybrid and remote

1798
02:00:16,075 --> 02:00:17,109
ways of working. That's going

1799
02:00:17,109 --> 02:00:19,011
to be an important one that will

1800
02:00:19,011 --> 02:00:22,815
dramatically shift further the whole

1801
02:00:22,815 --> 02:00:23,849
thinking of an organization.

1802
02:00:24,383 --> 02:00:26,485
You're here in the office in Madrid with me

1803
02:00:26,485 --> 02:00:27,853
and if you look around this

1804
02:00:27,853 --> 02:00:29,155
is a brand new office which

1805
02:00:29,355 --> 02:00:32,358
has a 250. A magnificent high-end place. 250

1806
02:00:32,358 --> 02:00:35,361
places. You see there's not a lot of film.

1807
02:00:35,628 --> 02:00:37,997
It's a first look so it's one of the week

1808
02:00:37,997 --> 02:00:39,832
days that you will expect

1809
02:00:39,832 --> 02:00:40,800
people to be in the office

1810
02:00:40,800 --> 02:00:43,402
but that gives you an idea of a sense of

1811
02:00:43,402 --> 02:00:45,371
being able to tap into

1812
02:00:45,371 --> 02:00:47,106
whenever I want into the office.

1813
02:00:47,540 --> 02:00:50,243
That basically will shift dramatically into

1814
02:00:50,243 --> 02:00:52,578
collaboration tools that will bring people

1815
02:00:52,578 --> 02:00:54,680
together because people by nature need to be

1816
02:00:54,680 --> 02:00:55,481
there. I think that's

1817
02:00:55,481 --> 02:00:56,582
an important aspect that

1818
02:00:56,582 --> 02:00:58,284
we are very mindful within our community. It

1819
02:00:58,284 --> 02:00:59,885
will transition a lot of thinking around.

1820
02:01:00,553 --> 02:01:04,090
I also observe the same thing. During COVID,

1821
02:01:04,090 --> 02:01:05,324
post-COVID now we're

1822
02:01:05,324 --> 02:01:07,593
settling out and I see people

1823
02:01:07,593 --> 02:01:09,695
want to be able to decide when they want to

1824
02:01:09,695 --> 02:01:10,863
shift gears, when they want

1825
02:01:10,863 --> 02:01:12,265
to be involved and immerse

1826
02:01:12,265 --> 02:01:14,800
themselves into a team structure, get

1827
02:01:14,800 --> 02:01:16,269
synergized, get motivated,

1828
02:01:16,769 --> 02:01:17,803
then when they want to pull

1829
02:01:17,803 --> 02:01:20,740
themselves out to their downtime, meantime

1830
02:01:20,740 --> 02:01:22,642
and doing things with my

1831
02:01:22,642 --> 02:01:24,744
own pace. I think they want

1832
02:01:24,744 --> 02:01:26,445
to be able to be flexible in that regard.

1833
02:01:26,445 --> 02:01:28,080
They are and it goes back to

1834
02:01:28,080 --> 02:01:29,582
the trust and the empowerment.

1835
02:01:29,615 --> 02:01:32,151
For me as the fundamental thing, it has

1836
02:01:32,151 --> 02:01:33,552
changed dramatically versus

1837
02:01:33,552 --> 02:01:34,987
when I started my career a

1838
02:01:34,987 --> 02:01:39,592
long time ago. Go, go, go. Now it's about

1839
02:01:39,592 --> 02:01:40,626
the trust and empowerment

1840
02:01:40,626 --> 02:01:42,328
and I think for me that's

1841
02:01:42,328 --> 02:01:45,031
the one thing that we are getting a lot

1842
02:01:45,031 --> 02:01:46,832
better at in many bigger FFTGs

1843
02:01:46,832 --> 02:01:47,833
is that trust and empowerment.

1844
02:01:48,701 --> 02:01:51,304
No, I can see that there's a very well

1845
02:01:51,304 --> 02:01:53,806
balanced and firing up on all cylinders,

1846
02:01:54,106 --> 02:01:56,509
nice engine from what I can see and it seems

1847
02:01:56,509 --> 02:01:59,912
like an all on balance. No, this was really

1848
02:01:59,912 --> 02:02:01,914
interesting. I'm glad we touched upon a

1849
02:02:01,914 --> 02:02:04,150
couple of data-driven product

1850
02:02:04,150 --> 02:02:06,619
phrases. I love this because

1851
02:02:06,886 --> 02:02:08,587
I've been building products last three, four

1852
02:02:08,587 --> 02:02:11,791
years. We talked a lot about future and most

1853
02:02:11,824 --> 02:02:13,959
importantly, dear to my heart, you're

1854
02:02:13,959 --> 02:02:14,960
bringing everything back

1855
02:02:14,960 --> 02:02:16,929
to the commercial impact and

1856
02:02:16,929 --> 02:02:18,531
where the business can benefit from all

1857
02:02:18,531 --> 02:02:19,965
these sexy shiny objects

1858
02:02:19,965 --> 02:02:21,333
we're discussing and trying to

1859
02:02:21,367 --> 02:02:23,769
resolve. Unfortunately, we've come to the

1860
02:02:23,769 --> 02:02:24,637
end of our conversation.

1861
02:02:25,004 --> 02:02:26,072
Now it's almost an hour.

1862
02:02:26,272 --> 02:02:27,840
Thanks for having us here in this lovely

1863
02:02:27,840 --> 02:02:30,042
office. Alberto, it was a

1864
02:02:30,042 --> 02:02:31,911
pleasure. Thank you very much

1865
02:02:32,011 --> 02:02:34,046
having us on e-commerce. Welcome to the

1866
02:02:34,046 --> 02:02:34,980
show. Thank you so much.

1867
02:02:35,181 --> 02:02:36,082
Thank you for tuning in,

1868
02:02:36,082 --> 02:02:38,451
everyone. We had Alberto Kechler, global

1869
02:02:38,451 --> 02:02:39,585
head of e-commerce for

1870
02:02:39,585 --> 02:02:41,120
Arla Foods here in Utrecht,

1871
02:02:41,120 --> 02:02:43,122
Netherlands in this lovely office. Until

1872
02:02:43,122 --> 02:02:44,323
next time, stay ahead of

1873
02:02:44,323 --> 02:02:45,658
the curve. We thank Alberto

1874
02:02:45,658 --> 02:02:47,326
Keckler and team Arla Foods for their

1875
02:02:47,326 --> 02:02:48,661
hospitality. E-commerce

1876
02:02:48,661 --> 02:02:50,129
continues providing insights about

1877
02:02:50,162 --> 02:02:52,698
e-commerce, retail media, digital shelf and

1878
02:02:52,698 --> 02:02:54,767
artificial intelligence use cases for global

1879
02:02:54,767 --> 02:02:57,870
CPGs. Stay ahead of the curve and subscribe

1880
02:02:57,870 --> 02:03:00,773
for more episodes every week. To access all

1881
02:03:00,773 --> 02:03:02,875
our insights, follow e-commerce on LinkedIn

1882
02:03:02,875 --> 02:03:04,443
and subscribe to our newsletter.