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Innovation at WorkWinter 2014

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Dear Reader,

As we welcome a new year, we at HGS have a timely opportunity to rearticulate and renew our commitment to our customers. Simply put, we rededicate ourselves, in big ways and small, to being your partner in helping you achieve your growth objectives, whatever they may entail. We offer our arsenal of expertise, know-how, and passion in support of your ongoing quest for competitive excellence. We resolve to help you Grow Smarter.

Speaking of growth, global economic indicators have us cautiously optimistic, mainly owing to positive developments in emerging markets. With digital technologies effortlessly connecting people, we expect to see trends like private label adoption, health and wellness, and sustainability to penetrate more populations, more quickly, creating profitable opportunities for product and packaging innovation.

This year also promises to bring interesting developments in the retail world. From grocery to cosmetics, businesses in different industries are trying to gain competitive advantage with new business strategies and tactics, ranging from subscription models to new methods of delivery. There’s a distinct sense that the retail industry is going through a transformational change whose outcome is yet to be revealed. Perhaps once we can clearly identify what Amazon is, we will have our answer.

Digital technologies and the data they help us cull are topics on every executive’s mind these days. On the one hand, there’s much customer data that is not even being leveraged, and companies want to capture even more while they perfect the art of observing without stalking. On the other hand, in supply chains where participants constantly look for real-time information in many disparate places, there is opportunity in adopting social networking tools.

As always we hope you enjoy our Winter issue, and welcome your feedback. We wish you an innovative New Year, and hope that we can be a source and partner of inspiration as you work to achieve your 2014 goals.

Sincerely,

Dan Musachia, President

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HAVI Global Solutions:Operational Excellence. Risk Management. Growth Strategies. Unwavering commitment to help our customers grow smarter.

PACKAGING: The Big Picture ............................................................................................. 4

PACKAGING: Thirst Quenchers........................................................................................ 10

SUSTAINABILITY: Packaging it Green ............................................................................... 14

CATEGORIES: Food, Glorious Food ................................................................................. 18

CATEGORIES: Experiments in Retail ................................................................................ 22

BUSINESS: Harnessing Technology for Brand Domination .............................................. 26

BUSINESS: Harnessing Technology for Supply Chain Excellence ...................................... 30

“Creativity can solve almost any problem.

The creative act, the defeat of habit by originality,

overcomes everything.”

– GEORGE LOIS (American Art Director, designer, and author)

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PACKAGING: The Big PictureAs we celebrate the new year, there is reason to be cautiously optimistic about global economic growth, with the brighter spots mainly in the emerging markets. A number of persistent consumer trends with global tentacles offer plenty of inspiration for packaging innovation. With private label growing stronger every day, packaging has an ever more important role: to differentiate, connect with consumers, and establish loyalty. The brands that can leverage the trends in their favor will have the competitive upper hand.

Global Outlook Partly Sunny • According to the IHS, world growth rate will accelerate

modestly in 2014.1 A great deal of regional variance is part of the forecast with weaker growth in the US, Europe and Japan offset by bright spots in emerging

markets. Euromonitor’s survey of 16,000 respondents in a mix of markets2 found

that consumers in the emerging markets are much more optimistic about future spending, especially in non-essential categories.3

TRENDS

1IHS Top 10 Economic Predictions for 2013, www.ihs.com; 2The emerging markets included were Brazil, China, India and Russia, and the developed markets were France, Germany, Japan, the UK and the US; 3Global Consumer Trends Disclosed: E-Commerce, Environment And More, Rick Lingle, www.packagingdigest.com, 10/28/2013.

Increases in Spending Activities in the Next 12 Months –By Market Maturity

Emerging markets Developed countries

Spending on new technology

Spending on clothing and footwear

Spending on travel/vacations

Visits to the cinema, concerts or theatre

Visits to fast food restaurants

Visits to full-service restaurants

0% 5% 10% 15% 20% 25% 30%

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4The Latin American Consumer Of 2020/ An Assessment Of Latin America For 2013-2016; 5ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam; 5ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam; 6ASEAN Economic Community A Single Market For Packaging by 2015, Stuart Hoggard, www.packwebasia.com, 10/16/2013; 7Consumer Packaging Trends That Are Impacting The Industry, Karl Embree, www.packagingdigest.com, 10/21/2013; 8Consumer Megatrends And Packaging: A Quantitative Study, Jeremy Lagomarsino, www.packworld.com, 6/3/2013.

TRENDS

• By the end of the decade the emerging economies of Asia, Latin America and Africa are expected to double their GDPs from 2010 levels.4 In Latin America greater female labor force participation, a larger working age population, and an increase in the number of middle-income families will drive demand and economic growth.

• In Asia, the ten countries that make up the ASEAN, Association of South East Asian Nations5, expect to benefit from the economic partnership they will be forming by 2015.6 The ASEAN Economic Community (AEC) will be similar to the European Community (EC) in enabling free flow of goods, services, investment, capital, and skilled labor, though unlike the EC it will not seek political integration, or aim for a single currency. The creation of a single market is predicted to fuel economic growth in the region by attracting new investments, and inoculating it against economic uncertainty elsewhere.

Opportunities Ripe For Picking • According to Smithers Pira, five major consumer trends

are impacting innovation in the packaging industry.7 Sustainability remains an important feature of packaging and has become integral to brand building. As healthy living continues to be a key driver in consumers’ lives, it wields influence on design and copy of packaging to ensure clear communication of benefits. Busy lifestyles demand innovative convenience from packaging to help integrate the products into consumers’ hectic, on-the-go schedules. Well-publicized scandals have caused consumers to become more wary about the sourcing and safety of foods and pushed the trust factor to the forefront in purchase decisions. Finally, due to persistent

economic uncertainty there seems to be less pantry-loading and more just-in-time

shopping.

• Are consumer trends consistently incorporated into packaging decisions? Berlin Packaging’s research found this is not always the case.8 The survey asked packaging professionals about how they perceive the life-cycle stage of ten megatrends (see table below), and determined how their companies have addressed them in packaging design. Interestingly, while all of the trends included in the study were perceived to be emerging or thriving by the packaging professionals, the adoption of packaging features addressing the trends were mostly low to moderate. The finding suggests that brands have an opportunity to more strongly incorporate trends that are relevant to their product categories.

Megatrend Description and Dynamics

Rise of Boomers

Adapting to the needs of the 79 million baby boomers who were born between 1946 and 1964. This group now accounts for 26% of the popula-tion.

Rise of Singles Adapting to the single-person household. The number of single-person households has doubled over the past 50 years, with 28% of U.S. house-holds now consisting of only one person.

Scrimp Looking to economize; being sparing or frugal with one's resources

Splurge Indulging in a luxury or pleasure; treating oneself.

Comfort Feeling a sense of physical or psychological ease; lacking any hardship; being nostalgic.

Convenience Increasing ease and accessibility; saving resources (time, energy, effort) and decreasing frustration.

Richer & Bolder Experiences

Delivering a more intense experience to any or all of the senses.

Individualized Connectivity

Accommodating individual preferences while still allowing relationships and networks to form.

Personal Health & Wellness

Seeking a healthy lifestyle

Community & Sustainability

Building closer ties with those around you or with the earth in general.

The survey focused on ten megatrends

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9Differentiation Goes Up The Pack Agenda, Josh Brooks, www.packagingnews.co.uk, 8/5/2013; 10Store Brands To Savor, www.consumerreports.org, August 2013; 11Shoppers Believe Private Label = National Brands In Different Packaging, Pat Reynolds, www.packworld.com, 2/26/2013; 12Romanians Are Increasingly Buying More Private Label Products, www.balkans.com, 5/31/2013; 13Private Label Goes To Asia, www.rabobank.com, 8/12/2013.

TRENDS

• The disconnect found between consumer trends and their low adoption into packaging begs the question of just what drives those decisions. The annual surveys

from Packaging News and easyFairs have consistently found cost reduction to be the top driver of innovation in packaging.9 This year, for the first time since the survey’s launch in 2007, research found that on-shelf differentiation has become just as important as cost reduction. This no doubt speaks to the increasingly competitive world of retail and brands’ constant challenge to maintain brand loyalty across multiple channels. To achieve differentiation, respondents highlighted limited edition packs (36%), QR codes (43%), social media tie-ins (39%), and customized packs (32%) as packaging tactics they plan to employ.

Private Label Global Force• Private label products are growing in popularity all over

the world, and quality seems to have a lot to do with it. In a recent experiment Consumer Reports pitted name brand US products against private label items.10 Comparing products in a number of categories ranging from ice cream to trail mix, the testing uncovered at least one comparable private label to each national

brand favorite. All in all, the expert tasters found more than half of the private label items tested (33 out of 57) as good or better than their name brand counterpart.

• According to a Canadean report on the UK market, brand loyalty in the food and drink categories is eroding rapidly.11 Numerous factors seem to account for this trend; among them are the growing perception that branded and non-branded foods are produced in the same facilities, and that differences in price are driven by marketing expenses, not superior quality.

• Private label is also making gains in less developed and emerging markets. In Romania, for example, private label has reached 8.5% of the total market though it’s still behind the 25%-30% average share observed in the developed regions of Europe.12 Carrefour Romania has reported 10% growth for its private label products last year, a higher increase than the retailer’s global sales. According to Rabobank the pace of private label penetration has been picking up in new markets, and

countries such as India and China are expected to catch up to the European levels in 15 to 20 years.13

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14FSimply Great Drinks Introduces New PomeGreat Into Waitrose, Shaun Weston, www.foodbev.com, 9/23/2013; 15Debossed Custom Closure Depicts ‘One World’, Anne Marie Mohan, www.healthcarepackaging.com, 8/23/2013; 16Big Fish Revamps Kallo Foods’ Rice Cake Range, www.fdbusiness.com, 9/22/2013; 17Sauce Bottle Symbolizes Stalwart Servicemen, Anne Marie Mohan, www.packworld.com, 8/12/2013.

INNOVATIONS

Designing Brand Identity• The Simply Great Drinks Company has

launched a new, pure pomegranate juice under the PomeGreat brand.14 The new product combines the best pomegranate juices from across the globe and features a uniquely refined, rich, and naturally sweet flavor. The PET packaging has an elegant and sophisticated design befitting the product’s provenance, evoking the upscale feel found in the wine category.

• USANA Health Sciences has recently undergone a corporate rebranding effort marking the company’s 20th anniversary.15 The new design was created to convey the company’s vision to ‘prolong life, unify mankind, and fight global hunger.’ To capture this life-centric vision, Australian design firm Cato Partners created a spherical logo with silhouettes of

dynamic human form debossed into a custom closure.

• Kallo Foods has completed an extensive redesign of its rice cake product line with the help of the branding agency Big Fish.16 In a departure from the category, the new packaging features hand-drawn illustrations inspired by Scandinavian folk art and poetry to engage consumers with the brand in a new way.

• Forces Sauces, a new brand of table sauces from the UK, is the result of an initiative that began when a veteran decided to ‘give back’ after receiving cancer support from a veterans’ charity organization.17 In creating the design, bluemarlin took inspiration from uniformed servicemen and women developing a shape that mirrors proud troops standing to attention.

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18GShower Cleaner Has Built-In Remote Spray Trigger, Anne Marie Mohan, www.packworld.com, 6/14/2013; 19Design Futures Create New Dippy Egg Packs, Liz Gyekye, www.packagingnews.co.uk, 8/7/2013; 20Teabag Alternative Launched, Liz Gyekye, www.packagingnews.co.uk, 7/26/2013; 21Chesapeake Boosts Vitamin Brand With New Pack, Philip Chadwick, www.packagingnews.co.uk, 6/24/2013.

INNOVATIONS

It’s Not Just A Container• To create knockout products that surprise and delight the consumer it helps to challenge the packaging to be more than just

a structure that contains. Wet & Forget, once-a-week shower cleaner from New Zealand, has done just that, and is poised to be a category buster with its formula and packaging.18 The brand promises ‘no scrubbing

or wiping,’ and three months of cleaning power in one 64 oz bottle; roughly four times more cleaning power than the traditional daily shower cleaner. Also ground breaking is the custom designed bottle that features a trigger sprayer that snaps into the handle for easy storage. The sprayer features 360-degree operation for maximum reach, and promises 65% more product to be released with each squeeze.

• The British brand consultancy Design Futures has created a brilliant packaging for an innovative product concept.19 Dippy Egg is the perfect soft-boiled egg, an increasingly popular healthy snack that is tough to make on-the-go. The brand’s solution is to package a partially cooked egg that turns into a perfectly cooked one when boiling water is poured on it. The dual-purpose

packaging is designed to protect the egg in transit and serve as a cup to eat from.

• The Teapod from Bistrotea intends to send the humble old tea bag packing.20 Made from a specially laminated non-absorbent food foil, the Teapod ensures that all of the tea’s flavor diffuses into the water without the need for squeezing. The Teapod can be used in place of a teaspoon to stir, and can be removed without dripping.

• Boost Buddy, an e-commerce subscription-based brand supplying multi-vitamins, offers a range of products that can be custom combined to suit all ages.21 Based on their unique needs, consumers are able to select four multi-vitamins from 12 available formulations. The specially designed packs hold four drawers each containing enough vitamins for a week, and dispense only one capsule at a time. Product information cards on each vitamin type are placed in front of the holder for added protection during transit.

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22Technologies For Keeping Baked Goods Fresh, Pat Reynolds, www.packworld.com, 8/12/2013; 23Arla’s New Easy-To-Close Cheese Pack, Pat Reynolds, www.packworld.com, 6/25/2013.

Close Again and Again• Sealed Air has expanded its stand-up Crayovac Multi-

Seal FoldLOK reclosable packaging line to accommodate a greater range of applications.22 The line features a

unique strip that allows the top of the bag to be folded over and affixed to it. The unique mechanism allows the package to be opened and sealed repeatedly, and ensures ease of use for children and the elderly.

• Another innovative closure system comes from Aplix featured in Arla Food’s cheese line.23 Made from polyethylene, the closure system features self-mating micro-hooks that don’t have to be aligned perfectly to seal properly. Easy and intuitive to use, the Aplix system helps maintain the freshness of the product for as long as possible.

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PACKAGING: Thirst QuenchersAt its simplest, the growing wellness trend dictates drinking your water and eating in a more wholesome way. For time-crunched consumers, water is the easy part, getting the right nutrition on the go, however, is the challenge. Enter a whole new range of beverage categories to deliver ‘nutrition’ in liquid form. The expansion of drinkable nutrition has resulted in crowded shelves, and brands are pushing the packaging envelope to differentiate, engage the consumer, and offer convenience.

Drink Your Water• The global bottled water industry is one of the fastest

growing industries according to a new report by Research and Markets.24 Rising population, growing consumer spending, and the wellness movement are expected to propel the industry to $70B globally by 2017. Currently Europe and the US together account for over 50% of the total water market, with Europe accounting for 75% of the sparkling format.

• Canadean reports that in the past seven years China has doubled its share of the global packaged water market, and is forecasted to exceed the US by the end of this year.25 However, per capita water consumption in China still lags behind the US indicating that category growth is far from over.

• In the US there’s a great deal of consumer interest in modified water, such as water with added natural flavorings, fortified with different nutrients such as vitamins, minerals and protein, or carbonation.26 Such

enhancements tend to elevate the water experience which then call for more unique bottling options such as different shapes, closure systems, or upscale materials such as glass.

No Time For Breakfast• Breakfast may be known as the most important meal

of the day, but research shows that time constraints are causing many people to go without. According to Roper Reports Worldwide, eating on the run has been growing steadily; the percentage of consumers who ate on the go at least once a week was 31% in 2012, up from 21% in 2008.27 In the UK only 34% eat breakfast on a regular basis28 and in the US 31 million skip it every day, with young adults (20%) and teens (17%) most likely to do so.29

TRENDS

24UGrowth Potential For Global Bottled Water Industry, Bill Bruce, www.foodbev.com, 10/1/2013; 25China Forecast To Overtake US As Global Packaged Water Leader By Year-End, www.canadean.com, 8/13/2013; 26Beverage Flavors Sparkle, Jamie Grill-Goodman, www.privatelabelbuyer.com, 9/12/2013; 27How Fuel Breakfast Milk Drink Is Succeeding Using Tetra Pak’s DreamCap, Shaun Weston, www.foodbev.com, 7/18/2013; 28Ibid; 29Attention Grabbers On The Go, Rebecca Eve Schweitzer, www.foodandbeveragepackaging.com, 10/14/2013.

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30What’s Behind The Green Juice Fad?, Katherine Rosman, www.wsj.com, 11/11/2013; 31Arla Food Ingredients To Launch Protein Water Beverage Concept, Aife Boothroyd, www.foodmag.com.au, 9/26/2013; 32New Japanese RTD Tea Product In Bamboo Shaped Bottle, Trina Tan Ker Wei, www.packwebasia.com, 9/27/2013; 33How Fuel Breakfast Milk Drink Is Succeeding Using Tetra Pak’s DreamCap, Shaun Weston, www.foodbev.com, 7/18/2013.

INNOVATIONS

Liquid Nutrition• Move over yoga mat, the new fashion accessory of the

healthy living devotee is a clear bottle of green vegetable juice.30 Sold in the US for as much as $10 a bottle these juices claim organic ingredients and cold-pressed juicing for maximum nutritional benefit. Combining different fruits and vegetables for different health benefits, these juices have crossed over from hydration to meal replacement.

• Arla Foods, the Scandinavian dairy producer, has launched a new fortified water containing a high quality whey protein isolate equivalent to 25% of the daily recommended protein intake.31 The company is banking on the growing popularity of dairy proteins led by the success of Greek yogurt and has pitched the prototype to key soft drink companies.

• Suntory Beverage and Food Limited has launched a new ready-to-drink product in Japan targeting body fat reduction, adding to a growing category of products called foshu, or products with specific health benefits.32 Lyemon Tokucha from the company’s lyemon green tea brand features the bamboo-shaped bottle unique to the brand with customized graphics evoking a slim waist to communicate the product’s health benefit.

Got Milk?• Liquid Fuel is the first liquid breakfast

product to hit the UK market, and be merchandised in the cereal aisle.33 Providing breakfast skippers a healthy milk-based option on the go, Liquid Fuel is packaged in a Tetra Prisma Aseptic package that is ergonomically designed for easy handling. It also features the DreamCap that provides a comfortable drinking experience and one-step recloseability.

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34Meiji Introduces Sports Milk In Japan, Shaun Weston, www.foodbev.com, 9/22/2013; 35First Milk’s FruMoo Bridges The Smoothie/Shake Gap, Richard Ford, www.thegrocer.co.uk, 9/8/2013; 36Coca-Cola Japan To Launch World’s First Hot Fizzy Drink, Danielle Demetriou, 9/11/2013, www.telegraph.co.uk; 37AquaFina’s New Line Of Sparkling Water ‘Makes A Splash’ With Teens, Karl Embree, www.packagingdigest.com, 10/1/2013.

• Japan’s first dairy sports drink from Meiji targets men and women over 30 and their families.34 The beverage provides almost twice the protein content of regular milk, yet

fewer calories.

• British dairy brand First Milk is introducing a new product that sits at the delicious intersection of a milk shake and a smoothie.35 Branded FruMoo, the

products are made with fresh whole milk and fruit juice. Merchandised in the milk section, the drinks aim to offer a healthy option to consumers.

For The Fizz Of It• Coca-Cola Japan is poised to shake up the beverage

category with a hot and fizzy drink called Canada Dry Hot Ginger Ale.36 While the popularity of beverages and soup in self-heating packaging dispensed from vending machines has been growing in Japan, this marks the first time such drinks come in a carbonated format.

• Thanks to the new portfolio of waters from Aquafina FlavorSplash it’s gotten a bit easier to get teens to stay hydrated.37 The new line of sparkling water drinks and liquid water enhancers provide teens calorie-free thirst quenching with a little cool factor.

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38Coke’s Ice Bottle – Cold To The Last Drop, Anton Steeman, www.bestinpackaging.com, 7/17/2013; 39Alexir To Unveil ‘Cartocan’ At Packaging Innovations Show, Liz Gyekye, www.packagingnews.co.uk, 8/13/2013; 40Spanish Dairy Debuts First Aseptic ‘Carton Bottle’, Anne Marie Mohan, www.packworld.com, 7/1/2013; 41Single-Serve Wine Vials Provide ‘Accessible Luxury’, Anne Marie Mohan, www.packworld.com, 7/29/2013.

Cheers To Beverage Packaging• A globally established beverage like Coca-Cola has

a different challenge than others: how to infuse it with newness and excitement while maintaining what makes it iconic. How about making the bottles out of ice and serving it on the hot beaches of Colombia? This is what Coca-Cola did last summer where micro-filtered water was poured into silicone moulds in the brand’s iconic bottle shape, and frozen to -25 degrees Celsius.38 The ice bottles were then transported to the Columbian beaches and filled at the vendors’ stalls. To prevent frozen fingers, each bottle was wrapped with a branded rubber band designed to double as a bracelet.

• While it makes for a fun exercise in zero-waste packaging, an ice bottle is not exactly a viable solution for sustainability. However, a new beverage packaging from carton manufacturer Alexir presents a more feasible eco-friendly alternative.39 Called Cartocan, it is the first and only cylindrical shaped packaging made from cartonboard that can be filled aseptically and remain shelf-stable for up to 12 months. With

the exception of carbonated drinks, CartoCan is an alternative to plastic or glass for the entire drinks category.

• CAPSA, the largest Spanish dairy company, has launched a new packaging format combining the body structure

of a liquid carton with the closure system of a plastic bottle.40 Called the Tetra Evero® Aseptic from Tetra Pak, the new package offers the environmental advantages of a paper-based material and the usability benefits of a bottle design.

• The Vini Winery has introduced a sleek and elegant single-serve wine format, a 187ml glass vial called The Vini.41 Unlike some of the other single-serve formats designed to be consumed on-the-go, the Vini is meant to be poured into a glass to aerate like any other fine wine. The format is expected to transform the by-the-glass experience at restaurants by allowing sommeliers to pour the wines at the table and giving patrons peace of mind about the freshness

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y SUSTAINABILITY: Packing It GreenSustainability remains as one of the leading consumer trends and continues to inspire product and packaging innovation. There are a number of ways for the packaging industry to ensure greater sustainability; recycled-content, recyclable, or bio-based materials, resource reduction, and pallet optimization are just a few. As green claims proliferate, consumer confusion is unavoidable and better information is necessary for purchase decisions.

Better Measures for Better Results• ‘Green’ or ‘environmentally friendly’ products continue

to proliferate, but what exactly qualifies products to be classified as such is not often spelled out. A Eurobarometer poll has found that indeed nearly half (48%) of all European consumers are confused by the incomparable and diverse environmental information

TRENDS

42Brussels Proposes New ‘Green’ Products System, Liz Gyekye, www.packagingnews.co.uk, 4/16/2013.

they see.42 The European Commission plans to change that by establishing two standard methods across the European Union for measuring environmental performance throughout the product life-cycle.

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43Triangle Replaces Chasing Arrows In Resin Identification Code, Anne Marie Mohan, www.packworld.com, 6/12/2013; 44Whole Foods Creates Rating System For Produce, Floral, www.supermarketnews.com, 9/27/2013.

TRENDS

• ‘Green’ confusion certainly is not unique to Europe. In place since 1988, the US Resin Identification Code (RIC) has recently been revised to better help consumers identify resin content in products.43 In order to address the consumer confusion around recyclability, the new logo was changed to eliminate the chasing arrows. The task group working on the updates is also addressing the incorporation of new resins to facilitate identification for consumers, retailers, waste collectors, and recovery facilities.

• Not keen to wait for the government to clear things up, American natural foods grocers Whole Foods has developed its own rating system to help customers better understand the sustainability of its produce and floral products.44 The company’s three-tiered system (good, better, best) takes into account a broad set of sustainability factors such as farm worker welfare, water conservation, biodiversity, waste, and energy.

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45Biopac Extends ‘Green’ Cup Range, Andreas Exarheas, www.foodbev.com, 9/12/2013; 46Berry Plastics Launches Versalite Cup, Shaun Weston, www.foodbev.com, 9/24/2013; 47UK Paper Maker Claims ‘World First’ With Disposable Coffee Cup Recycling Kit, Liz Gyekye, www.packagingnews.co.uk, 7/30/2013; 48Spectra Introduces Sugarcane Plastics To Range, www.packagingnews.co.uk, 9/23/2013; 49APPE Unveils Plastic Aerosol Pack, Liz Gyekye, www.packagingnews.co.uk, 9/25/2013.

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Greener Materials• Expanding environmentally conscious options in the

single-use cup category is Biopac’s new double walled hot cup.45 Made from certified FSC board and 100% compostable, the new cups feature two layers of board for improved thermal protection and eliminate the need for a sleeve.

• The new Versalite cup from Berry Plastics Group is made from polypropylene and is suited to both hot and cold applications.46 The technology offers thermal insulation and durability while ensuring recyclability.

• As on-the-go coffee consumption grows, so does the challenge of how to deal with all the disposed cups. British specialty paper manufacturer James Cropper has developed an innovative new technology to recycle the used cups into high quality paper products.47 The groundbreaking technology involves softening the cup waste in a warm solution allowing the plastic coating to separate from the fiber. Once water and pulp remain, impurities are filtered out leaving high-grade pulp suitable for upscale applications such as luxury papers and packaging materials.

• British rigid plastics manufacturer Spectra Packaging has added sugarcane-based plastics to its portfolio.48 The substrate features the same chemical properties as standard plastics, the company has said. Further, sugarcane helps to reduce greenhouse gas emissions by capturing carbon dioxide from the atmosphere, and the resulting plastic is fully recyclable further benefiting the environment.

On The Shelf• The traditional aluminum aerosol

can gets a facelift with the new plastic alternative from APPE called SprayPET.49 The lightweight construction of the PET-based aerosol offers a more desirable cost structure while ensuring excellent durability without denting or rusting. The material allows creation of a broad variety of shapes and styles for maximum brand impact. It is also recyclable and features a lower carbon footprint.

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50Innovative Pouches Launched In Brazil, Pat Reynolds, www.packworld.com, 7/29/2013; 51Squeez’Ems, www.booginhead.com; 52Sprayer Pouch, Rick Lingle, www.packagingdigest.com, 10/1/2013; 53Clear Lam Packaging, Inc. Advances PrimaPak™ Technology, www.packstrat.com, 9/24/2013.

• Brazilian cosmetic giant Natura has launched a new line of personal care products called Sou with innovative packaging and a lower price point.50 All the products in the range come in 6.7 oz. tear drop shaped stand-up pouches and a flip top cap closure system. Compared with rigid plastic containers of the same volume, these packages require 70% less plastic, making the product more eco-friendly as well as more affordable.

• As flexible pouches grow in popularity in retail applications it was inevitable that they would make the leap to home use. Squeez’Ems, created by Booginhead, aims to give parents and children added convenience while on-the-go.51 The lightweight, flexible pouches are easy to fill, clean and store and designed to be reusable. Cleverly designed as one piece to eliminate lost parts, the pouches are freezer, microwave, and top rack dishwasher safe.

Improving The Cube• There are many ways of

getting at sustainability, and the Sprayer Pouch brings resource savings through shipping and storage costs. The new packaging format features a patent-pending flexible structure with a flat bottom and excellent stiffness.52 Just one pallet of the lightweight and flat format would hold the same number of Sprayer Pouches as an entire truckload of empty conventional bottles.

• The new flexible PrimaPack™ package from Clear Lam Packaging Inc. aims to provide a more cost effective alternative to some current rigid structures such as cans and bottles.53 With up to 30% improvement in package cube PrimaPack confers measurable cost savings and sustainability improvements. The product line offers two styles of reclosable lid systems, and merchandisability on six sides.

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ood CATEGORIES:

Food, Glorious FoodThe current health and wellness trend has consumers seeking more ‘natural’ foods. Consumers are more open to new approaches to traditional dishes, cooking with ancient grains, seeking nutrition in obscure vegetables and greens, and experimenting with new flavors and different cuisines. Yet today’s lifestyles are hectic and busy so there’s more snacking than ever before. The food market is responding to those too busy to cook with healthier snack options on the go, and hot meals that can be delivered with a few mouse clicks.

It’s Only Natural• According to a Mintel survey, 51% of Americans seek

out ‘all natural’ foods when shopping, and foods labeled as such have reached $40B in sales in the last 12 months.54 The US Food and Drug Administration (FDA) does not currently have a definition for foods labeled ‘natural,’ but will soon be establishing new guidelines as part of the ‘food labeling modernization’ bill. Meanwhile lawsuits have been piling up; at least 100 have been filed in the last two years, challenging the ‘natural’ claims of major food and beverage manufacturers such as Unilever’s Ben & Jerry’s, Kellogg’s Kashi, and Beam Inc.’s Skinnygirl alcoholic beverages. In response, a growing number of brands such as Pepsico’s Naked Juices and Pepperidge Farm’s Goldfish crackers are

pre-emptively eliminating the use of the word on their packaging.

• Notwithstanding legal definitions, American consumers seem pretty clear in their interpretation of ‘natural foods’ and value the term even more today than in the past.55 According to The Hartman Group consumers believe ‘natural’ means no artificial flavors, colors or preservatives (56%), absence of growth hormones (49%), pure (47%), real (46%), absence of genetically modified foods (46%), absence of pesticides (46%) and fresh (45%).

54Some Food Companies Ditch ‘Natural’ Label, Mike Esterl, www.wsj.com, 11/5/2013; 55The Top 10 Trends In Private Label, Douglas J. Peckenbaugh, www.privatelabelbuyer.com, 11/6/2013.

TRENDS

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56Report Forecasts Major Trends In Natural Products, Mark Hamstra, www.supermarketnews.com, 9/3/2013; 57Menu Trends Driven By Sophisticated Consumers, Alicia Kelso, www.qsrweb.com, 9/13/2013; 58New Age Fusion Food: The Latest Trent To Hit Mumbai, Phorum Dalal, www.mid-day.com, 10/6/2013; 59How America Eats: Capturing Growth With Food On The Run, www.iriworldwide.com, 9/2013; 6090% Of School Snacks Brought From Home, www.progressivegrocer.com, 9/10/2013; 61New Study Says Snacks Industry Will Rise By 30.5% Over Next Five Years, Shaun Weston, www.foodbev.com, 7/17/2013; 62Restaurants On The Run Merges With Food Delivery Service, www.qsrweb.com, 7/15/2013; 63Why Rocket Internet’s Foodpanda Is A Safer Bet Than Zalora And Lazada, Terence Lee, www.techinasia.com, 5/15/2013.

• New Hope Natural Media reports that the US natural products industry is focusing on simplifications of product formulations, improved transparency and greater personalization.56 With the simplification of formulations, the ingredient lists are getting shorter and featuring fewer items that are not immediately recognizable as food. Consumer desire for transparency is driving brands to consider communicating provenance in their ingredient selection and packaging. Finally, the desire for personalization is providing brands the opportunity to customize the consumers’ experience through product assortment and packaging.

Sophisticated Palates• According to the Kruse Company ethnic foods are

among the top influencers of current menu flavor trends in the US.57 As consumers develop more sophisticated palates they are more liable to experiment with new flavors. Kruse predicts sour to be the next big flavor to come into focus with influences coming from Korean and Greek cuisines (yogurt, feta cheese), pickles/pickling and vinegar/vinaigrettes.

• ‘Ethnic foods’ are also enjoying the spotlight outside of the US. In India’s urban centers like Mumbai, Delhi and Bangalore fine dining is experiencing a renaissance with dishes being prepared free from strict traditional methods.58 Restaurant patrons enlightened with cooking shows and foreign travels are trusting new-age chefs to surprise and delight them with innovative combinations in what’s called Mash-up cuisine.

Snacking Beats Square Meals• According to the Consumer Eating Behavior Survey

conducted by IRI, only 52% of Americans eat three ’square meals’ (38% with several snacks, and the remaining 14% with no snacks).59 Twenty-eight percent eat 4-5 ‘mini’ meals, and 21% are full-on snackers who ‘eat on the run and just grab something to eat/drink when I have a chance.’

• Snack foods are also becoming a part of students’ lunch bags. NPD Group’s SnackTrack research found that American kids aged six to 12 consume, on average, 4.1 snack foods per day and teens aged 13 to 17 eat 3.8.60

• Snacking also seems to be a growing trend on the other side of the pond. A new study from Key Note found that snack foods category in the UK grew 8.3% in 2012, and is expected to grow by another 30.5% over the next five years.61

Food’s On Its Way• Restaurants On The Run

has been on an acquisition marathon for the past five years, and its most recent merger with 742-Dine grew its network of restaurants to 1,500 strong.62 The company operates in eight of the top 30 metro areas in the US and delivers to more than 10,000 customers a day.

• Food delivery is on the rise in disparate corners of the world from Vietnam, Singapore, Indonesia, to Turkey and the Middle East.63 Foodpanda Asia, a food delivery service, has recently secured funding from the Russian Rocket Internet, banking on margins in the 30-40% range, and 25-40% monthly growth rate. The company reports that within six weeks of its mobile app launch, 15-35% of orders started coming through there. Besides transaction fees, the company hopes to eventually monetize from advertising and food ordering analytics for partners.

TRENDS

Mint Chocolate Samosas, Indian Chef Limaye’s version of the molten lava cake at Auriga restaurant

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64Healthy Snacks, Compliant Packaging, Pat Reynolds, www.packworld.com, 8/26/20133; 65Egg Snack Packaging Finds Odor-Free Solution, www.packstrat.com, 9/5/2013.

INNOVATIONS

Simple, Healthy Snacking• More than a decade ago a consortium of apple growers determined that people would eat more apples if they were easier to eat; thus was

born Crunch Pak, the leading producer of sliced apple products.64 With a solution containing vitamin C and calcium, and breathable packaging, the company was able to ensure the crispness and freshness of the raw apples after they are sliced. The inherently short shelf life of the sliced apples makes food safety a critical issue for the brand. For fast, easy and accurate traceability and recall, Crunch Pak has adopted Videojet printing and labeling solutions that provide use-by date, Global Trade Item Number (GTIN), lot number, and customer number.

• Hard-boiled eggs are a popular snack item for those on the go, however when kept in a bag, they tend to develop ‘confinement odor’, making them unpleasant to the consumer.65 Sirane has adapted an absorbent patch developed originally for vacuum packed lamb for Snack Egg, a single portion shelled hard-boiled egg from The Original Egg Company. A custom designed innovative flow wrap packing machine allows the British free-range eggs to be individually wrapped within minutes of being cooked, ensuring ultimate freshness, and odor-free consumption.

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66Soup Debuts For Coffee Brewing System, www.packstrat.com, 9/10/2013; 67Linpac Packaging Extends Food Pack Selection, Liz Gyekye, www.packagingnews.co.uk, 9/19/2013.

• Campbell Soup Company and Green Mountain Coffee Roasters, Inc. have announced the brewing of a brilliant new innovation bringing together Campbell’s soups in a Keurig K-cup.66 With snacking and mini-meals growing in popularity, the companies have joined forces to bring consumers a convenient and healthy hot meal option that can be prepared at the touch of a button.

• Linpac Packaging has expanded its retailer range to provide a broader array of options for chilled and prepared convenience foods growing in popularity across Europe.67 The new products include solutions for

wet contents that prevent leakage, innovative stacking for vertical presentation, clip-in topping trays for segregating toppings to ensure freshness, and more.

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CATEGORIES: Experiments in RetailTo gain an advantage in the brutally competitive world of retail, companies are tweaking every aspect of their business. New models are emerging in response to the widening competitive set and changing consumer needs. Retailers are focused on eliminating the barriers that may prevent consumers doing business with them and employing new tactics to bring in traffic and create repeat purchases. Inside the store, retailers are looking at shopper data more closely to maximize sales and create wins.

Changing Grocery Models• Relay Foods seeks to make shopping for local foods

more convenient for customers.68 The online grocery service takes orders for items ranging from vegetables to diapers, and then delivers them to a designated spot once a week for customers to pick up. Relay works with local (defined as within a 250-mile radius) farmers and vendors to provide customers with fresh, organic products wherever possible.

68Locally Sourced Grocery Delivery Service Expands Into Lynchburg, Eleanor Kennedy, www.newsadvance.com, 9/23/2013.

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69Door-to-Door Organics Delivers Fresh Prepared Meals, www.gourmetretailer.com, 4/1/2013; 70Skip The Store: Grocery Delivery Service Blue Apron Expands To The West, Alice Truong, www.fastcompany.com, 8/14/2013; 71Waitrose Is Trialing Temperature-Controlled Lockers For Click-And-Collect, Shaun Weston, www.foodbev.com, 7/15/2013; 72Gourmet Catalog Signs On To Social Selling, www.gourmetretailer.com, 7/8/2013; 73Luxury Resellers Are Giving Fashion A Second Life, Robert Klara, www.adweek.com, 9/2/2013.

• US natural and organic foods e-tailer Door to Door Organics has added fresh prepared meals to its assortment.69 The e-tailer will now be carrying a rotating weekly assortment of meals which serve from three to four people that can be ordered via the company’s website.

• Blue Apron, the grocery delivery startup, has time-stressed customers in mind. The startup simplifies the task of planning and cooking meals by allowing customers to subscribe to purchase groceries that are featured in the company’s pre-planned meals.70 Each week, subscribing customers receive an insulated box containing the perfectly portioned ingredients for the week’s healthy meals scaled to feed their individual families. The service costs about $10 per meal per person.

TRENDS & INNOVATIONS

• British grocer Waitrose is working on new ways for its customers to buy and collect groceries.71 Having completed a trial with drive-through in five locations, the company now is experimenting with temperature-controlled lockers in convenient locations where customers can go and collect orders they placed online.

Social Selling Gone Hi-Tech• Qwiqq is a new social selling platform designed to help

small business to turn ‘likes’ into dollars.72 The iPhone based app allows posting and sharing of wares with the touch of a button to all the key social media platforms such as Facebook, Twitter and Foursquare. Purchasing is also easy as the app is already integrated with PayPal. The housewares industry buying group Gourmet Catalog has recently entered into an agreement with Qwiqq, giving its 300 strong independent gourmet retailer base a powerful way to connect with their communities.

• Now there’s a more affordable way for hard-core fashionistas to maintain their expensive lifestyle.73 New online retailers such as Shop-Hers, SnobSwap, and FashionPhile are re-inventing the sale and exchange of pre-owned luxury apparel and accessories by allowing fashionistas to conduct peer-to-peer trade. For example, when a potential shopper joins Shop-Hers, a custom

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74Neiman Marcus, Bergdorf Gear Up For Holidays With Permanent Free Shipping, Joe McCarthy, www.luxurydaily.com, 10/2/2013; 75Will Same-Day Delivery Save The Mall, Tom Ryan, www.retailwire.com, 9/3/2013; 76In Philippines, A Tale Of Two E-Commerce Markets, Terence Lee, www.techinasia.com, 7/15/2013; 77Attention Amazon Moms: Target.com Wants You, George Anderson, www.retailwire.com, 9/26/2013; 78Will Consumers Pre-Pay For Groceries, Mark Heckman, www.retailwire.com, 9/24/2013.

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algorithm matches her with similarly sized females with items to sell. On SnobSwap.com shoppers can offer to swap items with another seller or do a combination of swap and cash for more

flexibility.

Rethinking Shipping & Delivery • In an effort to shore up their competitive edge, brick-

and-mortar retailers are looking for different strategies to keep customers coming back. Neiman Marcus Group recently began offering free shipping and returns for all domestic purchases made through its online stores and retail locations.74

• The second largest US mall operator is introducing same-day delivery of both online and in-store purchases.75 The company hopes that the offering will help inoculate the retailers against the same-day delivery convenience offered by Amazon, Google, and eBay, and appeal especially to those without private transportation. The service will allow purchases from various stores to be aggregated for delivery, and be provided by Deliv, a company that uses crowd-sourcing to find drivers to make the deliveries.

• CashCashPinoy, the number one flash sales site in the Philippines, is rethinking the logistics of its e-commerce business.76 The company is hampered by the vastly inconsistent logistics infrastructure servicing the metro Manila area and the provinces. While urban logistics are fairly smooth and cheap thanks to strong competition, deliveries to provinces are dominated by a handful of players that can charge more but can’t really support the kind of flow and volume CashCashPinoy needs. To tackle the problem the company is now testing pick-up kiosks in central locations, a solution becoming increasingly popular across Asia. The website would give consumers the option to choose the method of delivery where they could opt for doorstep delivery for a fee, or pick up for free.

Securing Future Sales• Target.com recently launched a new subscription

service that allows parents to save money by ordering baby care basics on a recurring basis.77 The program mirrors Amazon’s Subscribe and Save program, allowing consumers to choose regular delivery intervals from four to 12 weeks. Participants in Target’s program benefit from 15% savings and get free shipping.

• In the grocery business a very small percentage of the 30,000 to 50,000 SKUs make it onto the shopping list, yet drive most of the sales.78 A new service called Aisle50 incentivizes shoppers with deals directly from the manufacturers to pre-pay for branded grocery items. The customers then collect the items at a participating retailer using their loyalty cards and the pre-paid item is deducted from their total bill at the store.

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79Beauty Subscription Ecommerce: Asia’s Next Big Startup Trend? www.ventureburn.com, 8/13/2013; 80A Virtual Lock On The Shopper Experience, Jim Dudlicek, www.progressivegrocer.com, 10/3/2013; 81Customizing Store Layout With Basket Data, www.retailwire.com.

TRENDS & INNOVATIONS

• In Asia the majority (60%) of women’s online purchases is on fashion, underscoring why beauty subscription services seem to have become the latest trend.79

Customers can sign up for a monthly or annual fee, and have a ‘box’ of beauty products delivered to them monthly. To name a few, countries such as South Korea (Memebox), Singapore and Vietnam (Glamybox), Taiwan (Glossybox), Indonesia (Lolabox and BeautyTreats) and China (MyLuxBox) have a strong base of paying subscribers already. Optimizing The Store With Data

• InContext Solutions has a new service called ShopperLab that enables creation of 3D store simulations, complete with planograms stocked with branded products that users can navigate as though shopping in a real supermarket.80 InContext can replicate retailers’ specific stores to exact specifications, and allow the 3D projection to be navigated from every angle enabling testers to grab products from shelves, read packages and even interact with avatars of store associates or other customers. The technology gauges shopper reactions including movement and eye tracking.

• LoyaltyOne provides analytics based on customer-specific basket data to tweak store layouts and improve sales and margins.81 For one grocer, major decline in the sales of adult cereals was a problem that a traditional review of pricing, promotion, assortment and planogram failed to illuminate. When LoyaltyOne analyzed basket data, it found the grocer was missing out on purchases by seniors. In those stores the cereal aisle featured children’s products at the bottom, family choices in the middle, and adult cereals on top. To better attract older shoppers, the grocer reorganized the planogram dividing kids’, family, and adult cereals into horizontal segments, and adjusted the fixtures to lower the top shelf. With minimal cost outlay and disruption, the grocer was able to general immediate incremental ROI, demonstrating the value of understanding shopper data.

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82To Sell Consumer Goods In China, You’ll Need To Go Digital, But Chinese-Style, Winter Wright, www.adage.com, 7/15/2013; 83Absolut Unveils ‘Transform Today’ Global Campaign, www.progressivegrocer.com, 9/12/2013.

BUSINESS: Harnessing Technology for Brand DominationIn this age of technology and globalization, brands are constantly looking for ways to remain relevant without losing their core values, and connect with their audience via a multitude of touch points. On the one hand, the competitive survival instinct demands harnessing the data being collected every millisecond across countless points; on the other hand, brands must keenly observe the line separating the consumer’s personal space, which may vary depending on individual touch point.

Multi-Channel Multinational• According to McKinsey by 2016 there will be 351

million online consumers in China, and Forrester predicts total online sales of $315B in two years.82 Given the pace of online adoption it is no surprise that brands can win in big ways by incorporating digital marketing, especially in emerging markets. For the Chinese market P&G created a multi-faceted Valentine’s Day campaign for its Rejoice brand including online videos, digital ads, and sharable content, and saw its sales increase a whopping 354% during the campaign.

• Absolut, the venerable vodka brand, has unveiled a new global campaign designed to ‘connect with the creative spirit and inspire artistic transformation around the world.’83 In keeping with the new brand ethos ‘Transform Today’ the company is collaborating with four contemporary artists around the world who will open up their creative processes to global audiences and encourage them to explore their own creative potential.

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The Answers Are In Big Data (If You Can Find Them)• A pair of studies from IBM suggests that reliance

on data analytics for decision-making separates the leaders from the laggards.84 While 74% of leading CPGs use data analytics, just 37% of the lower performing companies do so. Similarly, among retailers, 65% of the leaders consider big data analytics critical to their business compared to 38% of others.

• Big Data is the beast that everyone wants to tame, but so far only a few have successfully been able to do so. According to a worldwide poll of 2,200 marketers, fewer than 10% are systematic in their use of data, and only one in five claim to have an integrated view of what their customers are doing.85

• Unfortunately it is not just marketers who are struggling with mastering Big Data.86 According to a an IT industry association survey (by compTIA), while 78% of US businesses and IT executives believe harnessing their data would make them a much stronger business, 73% concede that they are struggling with translating the data into actionable insights.

• The gap between the belief in Big Data and the adoption rate of technologies to leverage it can also be found in Asia. According to The Economist’s Intelligence Unit, a majority of C-level executives in Asia believe

that technologies such as Big Data analytics, cloud computing, SaaS and social media will have the greatest impact on business strategy in the next decade.87 However, the diversity of the technology landscape and linguistic variation in Asia pose special challenges to Big Data analytics adoption in that area of the world.

Bracing For Privacy Backlash• Big Data has a great deal of promise for businesses, and

involves a close look at customer behavior --sometimes disturbingly so. A recent study by Brick Meets Click found that 64% of retailers are collecting Big Data tracking their customers’ shopping behavior.88 The data is used to drive more tailored traffic, manage inventories, and develop store-specific assortments customized to the needs of shoppers, in store and online.

• Last Fall US retailer Nordstrom started testing new technology to track customer’s movements by following the wi-fi signals from their phones.89 While the company is not unique in its desire to learn more about customers’ shopping behavior and preferences, or the tactics used, shoppers were not too happy when they learned about them. Nordstrom ended the experiment after a few months based partially on customer feedback, raising questions about the level and forms of scrutiny shoppers find acceptable.

• As privacy concerns grow, data-mining companies like Acxiom seek to quell concerns with new initiatives such as the company’s new website AboutTheData.90 The new site invites visitors to enter their information to access a portal where they can see the information the company has gathered, such as age, income, ethnicity, and more.

84Retailers, CPS Using Big Data Analytics to Outperform Others, www.progressivegrocer.com, 7/16/2013; 85Marketers: Too Many Big Data Fish To Fry, Karl Greenberg, www.mediapost.com, 8/5/2013; 86Improving Customer Experience Leads Big Data Priorities, www.emarketer.com, 10/2/2013; 87Big Data And Asia: The Trends And The Challenges, Mohit Sharma, www.techinasia.com, 8/8/2013; 88Why Don’t More Shoppers Worry When Big Data’s Watching, Sheri Roder, www.adage.com, 7/18/2013; 89Attention, Shoppers: Store Is Tracking Your Cell, Stephanie Clifford, www.nytimes.com, 7/14/2013; 90Will Transparency Help Big Data Face Down Its Critics, www.adage.com, 9/9/2013.

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91McDonald’s Arabia Launches Original TV Series For Ramadan, www.saudigazette.com, 7/25/2013; 92Walmart Launches Online Reality Series, www.progressivegrocer.com, 9/24/2013; 93Target Launches Digital Video Service, www.supermarketnews.com, 9/25/2013; 94Tesco Launches UK’s Biggest Magazine, Arif Durrani, www.marketingmagazine.co.uk, 9/23/2013.

Global Brands, New Vehicles.• Increasingly big brands are getting into the business of creating content to further connect with consumers and maintain

engagement and loyalty. McDonald’s Arabia recognized the Muslim holy month of

Ramadan with a 30-part independently produced television series.91 The series brought to life 15 of the region’s most popular folk tales in a classical Arabic dialect, employing a traditional storytelling style called Hakawati. The effort was an extension of the brand’s family time initiatives throughout the region.

• US retailing giant Walmart developed a reality web series in the tradition of the popular American entrepreneurship show Shark Tank.92 The series highlighted 20 finalists from its ‘Get On The Shelf’ crowd-sourcing product contest where each week

four finalists showcased their product to garner public votes and sell their items at Walmart in-store, and online.

• Target Corporation recently launched Target Ticket as part of an effort to further cement its place in the lives of American families. A digital video service that offers ‘kid-safe’ content across digital devices, Target Ticket provides customers an overall quality rating, as well as filters for age-appropriateness, violence, profanity, Motion Picture Association of America (MPAA) ratings, and TV Parental Guidelines.93

• The British supermarket giant Tesco has launched a new magazine created to engage with readers and across the three core subjects of food, family and living.94 While the content is designed to be delivered in a multitude of ways (in print, digitally on the web, portable devices, and in social media) it comes through a single portal, and replaces Tesco’s pre-existing publications.

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95Harris Teeter Using Big Data To Enhance Mobile, Social, www.progressivegrocer.com, 8/1/2013; 96Brooks Brothers, National Retailers Analyze ‘Big Data’ From Sales To Adjust Marketing, Mohana Ravidranath, www.articles.washingtonpost.com, 9/22/2013; 97Fashion Meets Big Data, Kathy Gordon, www.wsj.com, 9/9/2013.

Big Data Applications• US grocer Harris Teeter plans to deploy next

generation predictive analytics software from Tresata.95 The company will use the big data analytics platform to dynamically understand its growing body of customer data and provide shoppers better value across multiple channels; online, mobile, social, and brick-and-mortar.

• Big name retailers like Brooks Brothers, Neiman Marcus, and Revolve Clothing are among the companies that have recently subscribed to eCommera’s DynamicAction software that automatically tracks and visualizes large volumes of sales data.96 The software takes into account many factors such as inventory counts, customer views, and items viewed but not ordered, and provides analytics with a list of simple recommendations that could save money, all in a fraction of the time it would take the internal teams to do so with their traditional methods.

• To avoid costly missteps, the fashion industry is increasingly relying on Big Data forecasting.97 Worth Global Style Network (WGSN), a leading industry forecaster from the UK, has been experiencing tremendous demand growth for its services in the last few years. The company takes all the relevant trend information and packages it ‘in a way that speaks the language of the retailers and manufacturers.’ EDITD, another outfit from the UK, gathers data on who’s selling what, and provides real-time data to retailers to help them determine what to showcase on the storefront or when to discount it.

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98Five Trends That Will Dominate Supply Chain Software Spending In 2013, Kimberly Odom, www.supplychain247.com, 9/25/2013; 99Cloud Update: Winning Retail Strategies, Lorna Pappas, www.retailtouchpoints.com, 9/30/2013.

BUSINESS: Harnessing Technology for Supply Chain ExcellenceSupply chains can be quite extensive, including a number of vendors, distribution centers, shipping partners and more, often separated by oceans and time zones. Consequently, information and knowledge are distributed throughout the chain and no single source has all knowledge at any point in time. As a result, there is an opportunity to gather and use that information distributed among supply chain participants. Perhaps it is time for supply chains to embrace cloud computing and social networking.

What Can Cloud Do For You?• According to Gartner, spending on on-demand software

or SaaS (Software as a Service) will grow to $22.1B by 2015.98 For growing organizations adding new subsidiaries and/or regional offices, cloud computing offers a smart ERP solution without the headaches that typically accompany on-premise implementation or the never-ending capital drain. By employing cloud based ERP systems for the global subsidiaries while preserving the on-premise systems at the headquarters, the hybrid approach of a two-tier ERP provides the global real-time visibility within a short span and a fraction of on-premise only implementation.

• The retail world is betting big on the cloud with 73.2% reporting they expect to employ cloud services by 2018.99 Today’s retailers face the challenge of getting their brands out across a multitude of channels, and need to access customer data across all the different touch points. A centralized cloud platform with a core hub of data that can be continually updated with the latest software developments can help them do that. Hanover Direct, parent of The Company Store and Company Kids, and the up and coming Philz Coffee are among the retailers taking this route. Both companies have engaged the NetSuite cloud platform for their various ERP, manufacturing, financial, inventory and order management needs to ensure ‘anytime, anywhere data access.’

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100Social Business Study: Shifting Out Of First Gear, David Kiron, Doug Palmer, Anh Nguyen Phillips, Robert Berkman, MIT Sloan Management Review, Research Report 2013, July 16 2013; 101Social Media Is In Your Supply Chain Future, Joseph L. Mazel, www.palletcentral.com, 4/2013; 102Supply Chain And Logistics Technology: Social Networking Comes To Transportation Management, Brooks Bentz, Roddy Martin, Bill Kammerer and Tushar Narsana, www.logisticsmgmt.com, 5/1/2013.

Social Supply Chain• For most companies, social media is considered the

purview of the customer-facing side of the business, not supply chain. In fact, by department, the largest users of social media in enterprises are marketing (with 78% using social media to a moderate to great extent), IT (64%), sales (63%), and customer service (62%). The functions using social media least are operations (46%), supply chain operations (36%), risk management (35%) and finance (28%).100

• It seems though there is growing interest as 57% of those not currently using social media for supply chain activities indicated they would be likely to use these channels if they became available, according to IDG Research Services.101 Tracking industry trends, monitoring shipment status, and obtaining prices were among the many uses the respondents could see social media being helpful.

• Full supply chain visibility may be the Holy Grail, and thanks to recent technological developments it may finally be possible to build that elusive ‘transportation control tower’ to get there.102 The notion of a transportation control tower has been hamstrung by technological limitations presented by the difficulty in creating a comprehensive network of connected trading partners, where the partners could number in hundreds, or even thousands. Further was the device-dependent nature of data and applications that would need to be used by all the partners. With the advent of cloud computing and social networking, suddenly the once-impenetrable transportation control tower becomes nothing more than ‘Facebook for logistics.’ It is possible to envision companies ‘friend’ their ocean carriers, truck lines, and 3PLs on a cloud platform featuring Transportation Management Solutions such as dynamic routing and scheduling of shipments, claim management, audit and payments of freight charges, and more.

TRENDS & INNOVATIONS

MarketInsights is published by HAVI Global Solutions.

Please send your questions, comments and/or suggestions to Karen Weidenaar, Vice President, Global MarCom, at kweidenaar@havigs.com.