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  • Innovation and ProductivityStanislas de GramontPaul GardnerMartin Powell

  • Innovation and Productivity

    OVERVIEWPACKAGINGRAWS / RECIPES INDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICSCONCLUSION

  • Productivity COGS, non-COGS, cash & Capex

    3

    SUPPLIERS MANUFACTURING LOGISTICS CUSTOMERSWAREHOUSESCUSTOMERS

    SHOPSSHOPPER / CONSUMER

    Opportunity M

    2011 Danonebrand target

    Best in classBenchmark

    M

    Cost & cashStretchthe Model

    Change the Model

    Do more with less

    Innovate and change

    Buy Better

  • Each Division has its own COGS focus

    4

    WatersDairy

    MedicalBaby

    Raw materials

    Packaging

    Industrial

    Logistics

  • Innovation and Productivity

    OVERVIEW

    PACKAGINGRAWS / RECIPES INDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICSCONCLUSION

  • Lightweighting PET Bottlesusing new technologies

    6

    Evolution of Hayat 0,5 L bottle weight

    1614.9

    12.912.1

    11.4 10.9

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    2004 2006 2009 2010 2011 2012

    Driven by technology upgrades

    Weight optimisation Preform

    technology

    Shortneck

    New bottle

    New elimination

    bottle

    Do more with less

    Innovate and change

    Buy Better

  • Ensure consumer preference and logistics performance

    7

    Do more with less

    Innovate and change

    Buy Better

    Key Success factors:- Keep the same consumer preference

    - Lightweight to the max thanks to new technologies

    Outputs:- 7,500T of PET saved in 2010

    - 25,000T CO2 emission reduction

    Thickness and weight distribution

    Thickness & weight distribution 12.7 gr & 11.3 gr Adana blowing

    1.9 gr 2.1 gr1.4 gr 1.7 gr

    2.9 gr

    2.8 gr1.4 gr1.3 gr

    4.5gr4 gr

  • Push to the max the Technologies to lightweight our Actimel Bottles

    8

    Do more with less

    Innovate and change

    Buy Better

    Key Success factors:- Consumers studies to permanently check the preference

    - State of the art technical management at Graham & Danone Side (R&D/Ind)

    Outputs:-Bottle weight divided by 2 since the Actimel Launch in 1996 ( 39kt HDPE saved)

    - CO2 reduction equivalent 130 KT saved since 1996

    Bottle weight evolution

    ?

    Started at 9g of HDPE in 1995 today produced in 6.0g and with a worldwide target of 5.5g (Poland already at 5.2gr)

    Combined with High speed blowing machine developed by our Partner (Graham Packaging) to meet our growth

    Optimizing cardboard surfaces and label thickness

  • Push to the max the Technologies to lightweight our Polystryrene Cups: FOAM project

    9

    Do more with less

    Innovate and change

    Buy Better

    Key Success factors:- State of the art in bubble size & repartition management at the supplier stage

    - Machines well equiped & maintained to deliver the best performing cups

    Outputs:- 12 to 14% less plastic for the same performance & Consumers preference

    -19% less CO2 emission for the Packaging, 40 KT to date. 7 mln COGS savings

    Foam Volumes Evolution Europe

    4,830 9,000 13,400

    23,560 16%28%

    38%

    54%

    2008 2009 2010 2011

    Foam (T) % lines

    The middle one is expanded thanks to a Foaming agentDensity 0.65

    Two standard layersDensity 1.05

    A 3 layer PS

  • 10

    Do more with less

    Innovate and change

    Buy Better

    Visite PDB

    Press

    KOLsTeasing

    CRM

    TV

    Packaging

    Distribution

    Web

    Removing the carton pick ups - a project that required massive 360 communication to consumers

    http://images.google.fr/imgres?imgurl=http://bougeursdeplanete.wifeo.com/images/eco-emballage.jpg&imgrefurl=http://bougeursdeplanete.wifeo.com/les-partenaires.php&usg=__P4CalSu2GiqbOgiJkxqsU8pvmyo=&h=334&w=850&sz=60&hl=fr&start=4&um=1&tbnid=2i2wdPFDr0s1UM:&tbnh=57&tbnw=145&prev=/images?q=eco+emballage&hl=fr&um=1http://www.kickandrun.com/chroniques-parisiennes/wp-content/uploads/2008/12/logo_le_figaro.gif

  • Removing the carton pickups- a real business success story

    11

    Do more with less

    Innovate and change

    Buy Better

    +4% +9% +16% +15%

  • Innovation and Productivity

    OVERVIEWPACKAGING

    RAWS / RECIPESINDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICSCONCLUSION

  • Project Jumbo baby food

    13

    Anticipate reglementationevolution

    Better nutrition Better ingredients 81 Recipes, 1000 labels

    for 35 CBUs in 9 months

    Project JUMBO: Recipe/Formula upgrades

    PRODUCT DEVELOPMENT & OPERATIONS

    81 Recipes improved, 12,000 hrs R&D/PD Complexity reduction

    (15 recipes and 5 base-powders less) No impact on

    customer service and low write-offs

    Do more with less

    Innovate and change

    Buy Better

  • Smaller volumeSame nutrition in 125ml bottle as in original 200ml bottleInnovation in Protein

    Technology

    Innovation that improves patient compliance at a lower cost price and less packaging

    14

    Do more with less

    Innovate and change

    Buy Better

    Reduction in size of protein fraction reduces viscosity of high protein nutrition

    Less packaging material

    Reduced conversion costs

    20% reduction in carbon footprint at production level

    Improved patient compliance

    Improved intake

  • TransformationTraditional use of milk

    15

    Skimmedmilk

    Sweet whey

    Acid whey

    Cream Butter

    Skimmer

    Directly to cheese

    WPCsWheyPowders

    SMPBlends

    Feed1Lt for each1kg of product

    Do more with less

    Innovate and change

    Buy Better

  • What is Membrane technology?

    16

    MEMBRANE FILTRATION

    WHEYPROTEINS

    PROTEINS LACTOSE + MINERALS

    LACTOSE MINERALS

    Other optional filtration step Other optional filtration step

    CASEIN

    SKIMMED MILK

    Do more with less

    Innovate and change

    Buy Better

  • TransformationTodays use of milk

    17

    Skimmedmilk

    Whey

    By-Products

    Cream Butter

    Skimmer

    Directly to cheese WPCsWheyPowders

    SMPBlends

    Crackingmilk

    InnovationDrinks

    Cream desserts

    Optimise salesEg cream

    ExcessComponents

    Casein

    Whey

    Minerals

    Lactose

    Water

    Do more with less

    Innovate and change

    Buy Better

  • Innovation and Productivity

    OVERVIEWPACKAGINGRAWS / RECIPES INDUSTRIAL DESIGN

    CUSTOMER SERVICE AND LOGISTICSCONCLUSION

  • Danone Eaux FranceCarrefour Miramas case

    1st common warehouse between 1 supplier & 1 customer in France, supplied by full trainsWarehouse with 2 functions:- Deliver 123 Carrefour stores Just In Time- Deliver other Danone customer warehouses

    Benefits: CO2 reduction/ Service / Innovation/ Customer intimacy/ positive media coverage

    19

    Do more with less

    Innovate and change

    Buy Better

  • 21%

    9%

    37%

    16%

    17%

    Increasing on-shelf availability

    20

    Buy another flavour

    Buys product later

    Buy other brand

    Doesnt buy at all

    Buys in other store

    30% sales lostby the Retailer

    46% sales lost bythe Manufacturer

    Do more with less

    Innovate and change

    Buy BetterFOR ALL

    Shopper behaviour when product is missing on shelf (ECR Europe)

    4 bn of saleslost in Europe

  • Store or Field Alert

    Store Order Control

    Danone Store Alert

    Danone Sales Force

    Customer Store Team

    In StoreExecution

    OSA proven solutions

    E-Pos DataDanone

    Store OrderDanone

    WarehouseTo Store Delivery

    Do more with less

    Innovate and change

    Buy BetterFOR ALL

    Customer Warehouse

    E-Pos Data

    21

  • Innovation and Productivity

    OVERVIEWPACKAGINGRAWS / RECIPES INDUSTRIAL DESIGNCUSTOMER SERVICE AND LOGISTICS

    CONCLUSION

  • Innovation & Productivity Summary

    23

    Stretchthe Model

    Change the Model

    Do more with less

    Innovate and change

    Buy Better

    A track record of deliveryInnovation and productivity go together Inno gives sustainable productivity perspectives Our culture of labbing and landing provides vivid pipeline filling and roll out Innovative and cost efficient formulas will provide ground for further growth opps in emerging AND developped market

    SUPPLIERS MANUFACTURING LOGISTICS CUSTOMERSWAREHOUSESCUSTOMERS

    SHOPSSHOPPER / CONSUMER

    23

    Innovation and ProductivityInnovation and ProductivityProductivity COGS, non-COGS, cash & CapexEach Division has its own COGS focusInnovation and ProductivityLightweighting PET Bottlesusing new technologiesEnsure consumer preference and logistics performancePush to the max the Technologies to lightweight our Actimel Bottles Push to the max the Technologies to lightweight our Polystryrene Cups: FOAM projectRemoving the carton pick ups - a project that required massive 360 communication to consumersRemoving the carton pickups- a real business success storyInnovation and ProductivityProject Jumbo baby food Innovation that improves patient compliance at a lower cost price and less packagingTransformationTraditional use of milkWhat is Membrane technology?TransformationTodays use of milkInnovation and ProductivityDanone Eaux FranceCarrefour Miramas ca