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Some Thoughts on Leadership in the Global Food Industry. Dr. David Hughes Emeritus Professor of Food Marketing International Nuffield Contemporary Scholars Conference Institute of Directors 116, Pall Mall, London, UK Friday, March 2 nd , 2012.
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Some Thoughts on Leadership in the Global Food Industry Dr. David Hughes Emeritus Professor of Food Marketing International Nuffield Contemporary Scholars Conference Institute of Directors 116, Pall Mall, London, UK Friday, March 2nd, 2012
Population Projections for Japan and Proportion of Population 65+ years Proportion pop 65 + years 36 34 32 30 million people 28 26 24 22 20 Source: National Institute of Population & Social Security, Gov. of Japan
World Population: Who's Going Up and Who’s Going Down? *Latin America & Caribbean Source: UN (population scenario planning)
Top Global Grocery Profit Performers in 2010 Profit Margin = EBIT after earnings from associates and other exceptional items ROCE = Return on Capital Employed Source: OC&C UK, 2010
Top Global Food Profit Performers, 2010 Profit Margin = EBIT after earnings from associates and other exceptional items ROCE = Return on Capital Employed Source: OC&C UK, 2010
Proprietary Technology and Demand Chain Squeeze Life Science Companies Ownership of Genetic Rights nursery people growers/farmers distributors manufacturers etc. get squeezed! market power polarised Global Food Retailers and Food Service Firms Ownership of Information on Shopping Behaviour
Leading Farmer-Owned Companies in the Global Food Industry • Danish Crown • Arla • Fonterra • Friesland Campina • Kerry • Limagrain • Rabobank With special mention for The Netherlands and Denmark: two countries that have punched above their weight in international food markets and embraced farmer ownership of the value chain
Advertising spend: 5% of retail sales, i.e. US$20 million p.a.
An “Expert Brand” in Bone Health Source: New Nutrition Business, J. Mellentin, 2011
Michael Porter’s “Big Idea” for BusinessWhat’s Good for American Business is Good for America (Coolidge?) Turned on Its Head:What’s Good for America – its citizens’ health, the environment, future generations, disadvantaged groups ....., etc., is Good for American Business M. Porter and M. Kramer, “Creating Shared Value”, Harvard Business Review, Jan/Feb, 2011
FAO Global Food Price Index: 1990 to 2012 Source: FAO
David Yelland View on Farmers and Leading Public Opinion (Farmers as “The Victims”)
Who is the Boss in the Global Food Industry? The Consumer and She Wants it All! She wants products which are: • better for me • more convenient • better tasting • better price • better for my well-being and body • feel good • look good • safer for my children • better for the world and my locale • environment • Third World • my countryside • better for Bambi/Flipper/Little Nemo/Babe/Bo Peep
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