CGT - Dec 2017

D EC EMBER 2017

PLUS

TOP 100 CONSUMER GOODS

COMPANIES

2017

OUR YEARLY REPORT ON THE WORLD’S LARGEST PUBLIC BRAND BUILDERS

MANAGING DIRECTOR AND PUBLISHER Albert Guffanti aguffanti@ensembleiq.com

Putting Our Fears to Rest

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When you’re involved in awards programs like the ones we conduct here at CGT, there are always a few moments of concern, after you’ve announced the winners, when you wonder if you’ve made the right choices.

It’s extremely rare when these brief moments of self-doubt ever amount to anything. (I can think of only one time in my career and no, I’m not telling you about it publicly.) In most cases, the more you learn about the winners, the more satisfied you become with the selections you made.

And in the case of this year’s crop of Business & Technology Award winners, which we profile beginning on page 6, our satisfaction continues to grow: • Our CMO of the Year, Peter McGuinness, is now Chobani’s Chief Marketing and Commercial Officer, further proof that he and his company are industry trailblazers.

• During his interview with CGT, CIO of the Year Manjit Singh described how closely Clorox’s IT department is aligning with the business units, confirmation that he’s helping drive vital change at the company.

• The founders of SMB Market Award winner Tiesta Tea unveiled a new venture that will have the loose-leaf tea maker bottling ready-to-drink beverages and launching exclusively at Target — yet more evidence of the company’s impressive resourcefulness.

So I encourage everyone to read our profiles of these winners starting on page 6, then visit consumergoods.com to learn about this year’s other two honorees: Dick Clark Supply Chain awardee Johnson & Johnson and Customer Management Award champ General Mills. You’ll also find info on the finalists for all five awards.

Speaking of self-doubt, whenever a magazine issue like this one gets sent to the printer, we editors have a few moments of angst wondering if all the information we published is accurate.

This month’s content is particularly worrisome, given the amount of facts presented in our annual “Top 100 Consumer Goods Companies” list. And our fears proved valid two days before we went to press, when someone on an unrelated conference call mentioned in passing that Nestlé had just named chief digital operations officer Filippo Catalano to replace the retiring Terence Stacey as its CIO. (Coincidentally, Stacey was a finalist in this year’s CIO of the Year competition. Read more about him in our online coverage.) We hope that’s the only change we almost missed.

As usual, there are a lot of great organizations on this year’s list, companies that made plenty of headlines in 2017 as they navigated the endless changes taking place in the consumer goods marketplace. But we also have to recognize that a lot of the newsmakers we covered this year, the smaller, younger companies driving real industry innovation, aren’t represented — unless, of course, they were recently acquired by one of the Top 100.

Finally, our annual Supply Chain Report caused us no worries whatsoever. Once again this year, we were able to secure the subject matter expertise of Lora Cecere from Supply Chain Insights and Simon Ellis of IDC Manufacturing Insights to inform this annual feature, which examines the impact of digital technologies on traditional practices and the need for real-time, outside-in analytics to fuel future growth.

On behalf of everyone here at CGT, we wish you all a happy, healthy and worry-free holiday season.

Peter Breen, Editor-in-Chief

EDITORIAL Editor-in-Chief: Peter Breen pbreen@ensembleiq.com Editor: Alarice Rajagopal arajagopal@ensembleiq.com Contributing Editors: Tim Binder, Jamie Grill-Goodman, Nidhi Madhavan, Patrycja Malinowska, Charlie Menchaca, Samantha Nelson SALES Associate Brand Director: Bill Little blittle@ensembleiq.com Sr Account Executive: Jolly Patel jpatel@ensembleiq.com Assistant to Brand Director: Jen Johnson jjohnson@ensembleiq.com EVENTS SVP, Events & Conferences: Maureen Macke mmacke@ensembleiq.com Director, Event Planning: Patricia Benkner pbenkner@ensembleiq.com Director, Event Content: John Hall jhall@ensembleiq.com MARKETING MARKETING DIRECTOR: Kim Sterling ksterling@ensembleiq.com CIRCULATION Director of Audience Development: Gail Reboletti greboletti@ensembleiq.com Audience Development Manager: Jeffrey Zabe jzabe@ensembleiq.com ONLINE MEDIA Director Product Development: Jason Ward jward@ensembleiq.com Web Development Manager: Scott Ernst sernst@ensembleiq.com Online Project Manager: Whitney Ryerson wryerson@ensembleiq.com ART AND PRODUCTION Corporate Director of Production: Kathryn Homenick khomenick@ensembleiq.com Creative Director: Colette Magliaro cmagliaro@ensembleiq.com Production Manager: Pat Wisser pwisser@ensembleiq.com Subscriptions: 978-671-0449 CORPORATE OFFICERS Alan Glass Executive Chairman Rich Rivera Chief Operating Officer/ Chief Brand Officer Len Farrell Chief Financial Officer Korry Stagnito Chief Business Development Officer & President, EnsembleIQ, Canada Ned Bardic President of Enterprise Solutions/Chief Customer Officer Joel Hughes Chief Digital Officer Greg Flores Chief Human Resources Officer

CORPORATE OFFICE 1 GATEWAY CENTER 11-43 RAYMOND PLAZA, FL 16 NEWARK, NJ 07102 973.607.1300 • Fax 973.607.1395 www.consumergoods.com PRINTED IN THE U.S.A.

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CGT | DECEMBER 2017 | CONSUMERGOODS.COM

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Adopting digitally driven techniques and tools to improve the new product development process has become critical to future growth in a volatile marketplace where the barriers to entry have largely disappeared. In this exclusive webinar, Sopheon’s Brad Eby examines the numerous ways in which digital systems and processes can improve new product success.

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TOP 100 CONSUMER GOODS

COMPANIES 2017

ow tough is the consumer goods market these days? Almost one-third of the world’s largest public consumer goods companies experienced sales declines in 2016. Another 25 leading companies posted growth of 2.0% or less.

That means the annual letter to shareholders didn’t deliver much in the way of good financial news at more than half of the companies listed in CGT’s Top 100 Consumer Goods Companies for 2017.

These decidedly disappointing results confirm the research at IDC Manufacturing Insights, which finds that only 3.0% of the $35 billion in net growth in the consumer goods industry over the last three years has come from traditional, large enterprise players.

Much of the rest is coming, of course, from what IDC calls “lateral” companies: the independents, upstarts, “ankle biters” or whatever else you’d like to call them who’ve taken full advantage of an increasingly digital economy to win substantial amounts of market share from traditional players; Procter & Gamble, Newell Brands and Bic Corp., meet Dollar Shave Club, Harry’s Inc. and Walker & Co. But there is some good news in the fact that — at least so far — these large, traditional players aren’t quite going out of business. In fact, only two of the companies from our 2016 Top 100 have dropped from the list: Keurig Green Mountain became a private enterprise after its 2015 acquisition by JAB Holding, and Tsingtao Brewery Co. simply slipped a little behind new No. 100 Thai Beverage revenue-wise.

And the more optimistic news is that this year’s results actually represent an improvement from 2016, when practically two-thirds of the companies (58 to be exact) on the Top 100 list posted negative growth.

That might be a very positive sign that traditional companies are adapting to the many changes in consumer demand and behavior that have taken place in recent years, and are finding ways — new products, sales channels and distribution strategies, and maybe a strategic acquisition or two — to remain relevant despite the rising competitive tide.

And if they haven’t done that quite yet, there’s always next year.

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CGT | DECEMBER 2017 | CONSUMERGOODS.COM

RANK/COMPANY 1.

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Nestlé SA* Philip Morris International Procter & Gamble PepsiCo Unilever N.V.* JBS S.A. Anheuser-Busch InBev Coca-Cola Co. Christian Dior, SE* LVMH Moët Hennessy Louis Vuitton* Tyson Foods Imperial Brands PLC Nike, Inc. 3M Co. L’Oréal* Kraft Heinz Mondelez International Altria Group Danone* Heineken Holding N.V.* WH Group Ltd.* Whirlpool Corp.

Adidas AG Henkel AG Kirin Holdings Japan Tobacco Kimberly-Clark Corp.

British American Tobacco PLC Fonterra Cooperative Group Ltd. Qingdao Haier Co General Mills Associated British Foods Diageo PLC Colgate-Palmolive Co. Asahi Group Holdings San Miguel Corp.

BSH Hausgeräte AB Electrolux Johnson & Johnson (Consumer) Newell Brands Kering Kellogg Co. Svenska Cellulosa AB SCA Uni-President Enterprises Reynolds American, Inc. Kao Corp.

Carlsberg A/S* RB* Grupo Bimbo, S.A.B. de C.V.* VF Corp.

2016 NET SALES $M $86,380 $75,000 $65,300 $62,799 $55,478 $52,219 $45,517 $41,900 $40,000 $39,572 $36,881 $34,126 $32,376 $30,109 $27,196 $26,487 $25,923 $25,744 $23,095 $21,882 $21,534 $20,700 $20,312 $19,696 $18,770 $18,315 $18,202 $17,994 $17,200 $17,135 $16,563 $16,548 $16,461 $15,195 $14,588 $13,811 $13,755 $13,310 $13,307 $13,264 $13,034 $13,014 $12,894 $12,819 $12,503 $12,458 $12,309 $12,226 $12,161 $12,000

1-YEAR GROWTH 0.8% 1.4% -8.0% 0.0% -1.0% 4.6% 2.4% -5.0% 8.0% 5.0% -11.0% 9.3% 6.0% 0.0% 4.7% 44.0% -12.5% 1.2% 2.9% 1.4% 1.5% 1.6% 18.0% 3.5% -5.0% -5.0% 2.0% 6.9% 9.0% 32.0% -6.0% 5.0% 2.8% -5.0% 1.0% 2.0% 3.5% -2.0% -1.5% 124.0% 6.9% -6.0% 2.0% 0.0% 17.0% -1.0% 2.0% 3.0% 15.0% 0.0%

KEY EXEC** Filippo Catalano Patrick Brunel Javier Polit Jody Davids Jane Moran Rogerio Peres (U.S.) Marina Bellini Barry Simpson Pietro Beccari1 Franck Le Moal Scott Spradley2 Alison Cooper1 Jim Scholefield3 Eric Hammes Michael Kingston Francesco Tinto Joher Akolawala Daniel Cornell Cecile Cabanis4 Laurence Debroux4 Julia Anderson5 Michael Heim Michael Voegele Michael Auslander Yoshinori Isozaki1 Yuki Maeda6 Suja Chandrasekaran Phil Colman Gerben Otter Charlie Yu Michael Martiny John Carron7 Brian Franz23 Michael Crowe Naoki Izumiya1 Clifford Que8 Joachim Reichel J.P. Iversen Stuart McGuigan Dan Gustafson Michel Rosilio Brian Rice Robert Sjostrom Chih-Hsien Lo9 Kevin Ostrander 10 Michitaka Sawada1 Mark Dajani Seth Cohen Rolando Ortiz Sandra Harris

RANK/COMPANY

2016 NET SALES $M

1-YEAR GROWTH

51.

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100.

$11,657 $11,643 $11,407 $11,300 $10,983 $10,362 $10,276 $9,523 $9,522 $9,137 $8,891 $8,203 $8,176 $8,031 $7,961 $7,811 $7,710 $7,440 $7,420 $7,264 $7,230 $7,106 $6,829 $6,779 $6,548 $6,440 $6,354 $6,076 $6,028 $5,761 $5,700 $5,474 $5,456 $5,422 $5,400 $5,262 $5,027 $5,020 $4,918 $4,720 $4,632 $4,563 $4,500 $4,412 $4,396 $4,349 $4,311 $4,011 $3,955 $3,887

3.2% -25.0% 2.0% 4.0% -2.3% 4.9% 2.4% 2.8% 3.2% 2.0% 9.0% 0.0% 3.1% 9.7% -1.0% 37.0% -5.0% 0.7% -10.6% 1.5% -1.0% 1.0% 1.0% 5.0% 9.0% 3.0% -0.6% -3.8% 5.2% 3.0% -7.0% 7.0% -4.0% 8.4% 7.4% 4.8% 8.1% 13.0% 1.8% -0.3% 1.5% 13.6% 0.0% 3.0% -2.6% -1.0% -0.6% -2.0% -8.0% -22.0%

Compagnie Financiere Richemont SA* Conagra Brands Stanley Black & Decker Estée Lauder Companies MolsonCoors Brewing Co. BRF - Brasil Foods* Nipponham Group* Hormel Foods ITC Ltd.* Pernod Ricard* GlaxoSmithKline Consumer Healthcare PVH Corp.* Saputo, Inc.* China Mengniu Dairy Co.* Campbell Soup Company J.M. Smucker Co. Dean Foods Co. Hershey Co. Swatch Group SA* Shiseido Co.* Ralph Lauren Corp.

Beiersdorf AG* Parmalat SpA* First Pacific Co.* Constellation Brands Dr Pepper Snapple Group Bayer Consumer Health Unicharm Corp.* Hanesbrands Clorox Co. Avon Products Hermes International* Mattel, Inc. PT Gudang Garam* Spectrum Brands Holdings Groupe SEB* Post Holdings Hasbro, Inc. Bandai Namco Holdings* Kewpie Corp. (QP Corp.)* Sapporo Holdings Ltd.* Arcelik A.S.* Herbalife Ltd. McCormick & Co. Electronic Arts* Coty, Inc. Nintendo Co.* Brown-Forman Husqvarna AB* Thai Beverage Public Co.*

KEY EXEC** Frank Vivier 11 Mindy Simon Rhonda Gass Michael Smith Darrin Vohs Pedro de Andrade Faria 1 Hajime Takamatsu 12 Mark Vaupel13 V.V. Rajasekhar Mathieu Lambotte Karenann Terrell14 Eileen Mahoney Richard Rivard Jeffrey Lu Minfang1 Francisco Fraga Bryan Hutsoni15 David Bernard Carlos Amesquita Calogero Polizzi Deanna Johnston (U.S.) Janet Sherlock Barbara Saunier Carlo Polese Manual Pangilinan1 William Newlands16 Thomas Farrah Daniel Hartert17 Yoshihiro Miyabayashi18 Cindy Miller Manjit Singh Sue Liddie Olivier Fournier19 Sven Gerjets2 Susilo Wonowidjojo20 Mark Winger Jean-Michel Andre Joseph Caro Steve Zoltick Shukuo Ishikawa1 Osamu Chonan1 Masaki Oga20 C.S. Oguzhan Ozturk21 Mark Schissel22 Ken Thomas Jason Horwath Jerry Flasz Brian Cheney Tim Nall Anders Johanson2 Thapana Sirivadhanabhakdi1

RULES & GUIDELINES Rank

Because fiscal 2017 has yet to close for many companies, CGT used fiscal 2016 revenue totals to determine each company’s placement on the Top 100 list. All financial information was sourced from Hoover’s Inc. or, in some cases, the company’s most recent annual report.

Revenue for each company is reported in millions of U.S. dollars. If a company’s revenue is reported in a different currency, and Hoover’s did not provide the U.S. dollar equivalent in its report, then the figure was subject to a predetermined neutral exchange rate (Dec. 31, 2016). Year-over-year gains are reported based on information from one of the aforementioned sources.

Inclusion

Since the annual revenue of most privately held companies is not available, our Top 100 list only includes publicly traded companies. Therefore, large, wellknown consumer goods manufacturers such as Mars Inc., Perdue Farms and Dole Food Co. are absent from the ranking. (Mars, for instance, would be a top 15 company with its roughly $35 billion in annual sales.)

It should also be noted that only sales from consumer divisions are considered when ranking companies that also have extensive business-to-business operations.

M&A

In some cases, mergers, acquisitions or spin-offs that took place in the latter half of 2016 and 2017 (such as Henkel’s purchase of Sun Products in 2016 or LVMH’s full acquisition of Christian Dior in early 2017) are not reflected in these sales totals. Deals that occurred in early 2016 or earlier (Newell Brands acquisition of Jarden Corp.) are reflected here. *Dollar amounts configured by CGT using Dec. 31, 2016, conversion rates **All listed executives are Chief Information Officer except (1) CEO; (2) CTO; (3) SVP, Bus. Transformation; (4) CFO; (5) CIO, Smithfield Foods; (6) SVP, Corp. Strategy; (7) Head of Infrastructure; (8) AVP, IS Mgmt; (9) Chief Strategy Officer; (10) VP, Info Mgmt.; (11) Chief Transformation Officer; (12) Managing Exec. Officer: (13) VP, IT Svcs.; (14) Chief Digital/Technology Officer; (15) VP, IS; (16) COO; (17) CIO of Bayer AG; (18) Exec. Dir.; (19) EVP, Org. Dev.; (20) President; (21) Chief Product & Tech Partner; (22) EVP, WW Ops; (23) Chief Productivity Officer

CONSUMERGOODS.COM | DECEMBER 2017 | CGT

5

BUSINESS & AWARDS TECHNOLOGY 2017

CIO OF THE YEAR Manjit Singh

Senior Vice President, CIO, The Clorox Company

INSTRUMENTS OF CHANGE Saluting a year’s worth of exemplary consumer goods executives and organizations Here at CGT, we begin each year by seeking nominations for five awards that honor consumer goods executives and companies that have envisioned and executed transformational business and technology initiatives. The goal is to recognize achievements that not only have improved individual organizations, but which have the potential to inspire the industry at large.

And then we conclude each year here in the December issue by showcasing the award winners.

They’ve been announced previously at various CGT events, but here’s where the industry learns how they earned their trophies.

Our coverage starts here but continues on consumergoods.com, where we present more extensive coverage of the 2017 winners as well as all of this year’s well-deserving finalists.

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CGT | DECEMBER 2017 | CONSUMERGOODS.COM

Given to the CIO who has made the greatest demonstrable business impact on his or her organization through the implementation and use of technology.

If you’ll excuse the pun, the “clearest” example of IT’s status at The Clorox Company these days is the strategic role the department played in the April 2016 launch of the Brita Infinity Pitcher.

The first Internet of Things-enabled device in the water filtration brand’s portfolio (it automatically reorders filters via Amazon Dash), the Brita Infinity also represents the first time in Clorox history where the IT department partnered with the R&D team on product development. IT worked on product design, infrastructure development, sourcing and testing.

At the risk of “floating” another pun (or two), Infinity’s launch proved to be a “watershed” moment at Clorox. “Now, R&D is pulling us in on upfront innovation,” explains Singh. “And it’s had a ripple effect across the enterprise. We’re now seen as a critical part of the business” rather than simply as back-office technicians.

Singh cites that level of internal alignment as his proudest achievement since taking the IT reins at Clorox in November 2014 after a 20-plus year career that included CIO stints at Las Vegas Sands, Chiquita Brands and Gillette. It’s also a key reason why he was named CGT’s “CIO of the Year” for 2017.

“He has improved the image of IT as well as the value that is delivered,” praised Singh’s official nomination, which significantly came from a member of his team. “[Clorox’s] leadership is now depending on him to provide thought leadership on the next big thing.” (Singh joined Clorox’s executive committee in August 2016.)

After assessing the internal landscape at Clorox, Singh initiated a strategic plan of attack to energize and empower the IT team and improve its working relationships across the company.

The plan has three core pillars: • Relate: Ensure strong relationships with the business units by better understanding their needs.

• Innovate: On technology and process within IT, but also in conjunction with the BUs. • Operate: Maintain and improve all the traditional back-office functions.

It also involved implementing an overarching set of acronym-friendly principles that, fortuitously, “fit hand in glove” with Clorox’s own strategic goals: “CADET” stands for “courage, alignment, debate, empowerment and transparency.” A key objective was to foster an environment in which team members are “bold” enough to “recommend the work they think we need to do“ as well as “call out when they think we might be heading in the wrong direction,” Singh says.

Of course, it’s hard to make such lofty philosophies stick if they don’t actually produce results. But Singh’s early tenure at Clorox boasts a laundry list of specific IT successes involving e-commerce, workforce collaboration, data storage and sharing, customer analytics, consumer marketing, cyber-security and other needs that have improved efficiencies, reduced costs and enabled sales growth.

Driving change effectively requires balancing “Big Bang” initiatives with smaller “grassroots” projects that can then expand — when that’s the right strategy: Clorox has segmented its IT systems into “core” functions (like cloud-to-cloud architecture) that need to be enterprise-wide and “edge” systems (brand-specific CRM) that should be flexible based on specific business needs.

“We’re in a period where we’ll do more core to edge” [transitioning]. But we need to strike a balance,” Singh says. “You have to protect the core, but the edges are often where you can drive greater growth.”

Singh is quick to point out that top-down change is only effective if the rest of the organization is willing to embrace the concept and capable of carrying out the plan. “The credit [for “CIO of the Year”] really goes to the whole team, everyone who has helped us get to this point,” he says. “When you have well-articulated strategies that are easy to understand and easy to relate to, they are very easily adopted.”

CMO OF THE YEAR Peter McGuinness

Chief Marketing & Commercial Officer, Chobani

Presented to the CMO who made a demonstrable impact on the organization through the implementation and successful use of new marketing strategies, technologies and/or processes For Chobani’s chief marketing & commercial officer, going in house has enabled him to create new chances and opportunities.

Peter McGuinness first learned the CPG landscape while representing a variety of accounts at various agencies all over the world.

As such, McGuinness found himself at an agency about eight years ago pitching to Hamdi Ulukaya, the founder of Chobani.

“We thought we had a great pitch. We all thought we had it in the bag,” he says. But “Hamdi threw us a curveball,” McGuinness says, before teasing that his “relationship [with Hamdi] is still the same today.” Chobani decided to go with a different agency.

Chobani outgrew that other agency just six months later and circled back to McGuinness, who proceeded to work on all the company’s original branding and its first-ever media campaign.

Fast-forward to August 2013, and McGuinness was asked to join the Chobani team.

By that time, the “sleeping giants” in the yogurt category “woke up, and they were angry,” he explains. While the company believed in the superiority of its product and its unique brand values, its competitors still had an enormous amount of resources. So Chobani set out to boost innovation, increase demand and bring the brand to the next level.

McGuinness was a finalist for CGT’s “CMO of the Year” award in 2016, for his accomplishments in building brand strategy, marketing innovation, experiential programs, digital/social outreach, public relations and a media-grabbing retail café. He became our first repeat finalist in 2017 and was unveiled as the winner in June.

But the achievements didn’t end there. Since picking up his award, McGuinness has helped Chobani combine sales, marketing, product innovation, insights, analytics and category management under one integrated “Demand Creation” department — with you-know-who at the helm. The new department, along with the café and the company’s food incubator, are “all strong dimensions and aspects of the brand that we can knit together and grow.”

Chobani no longer has distinct marketing and sales budgets. “We have a demand budget so there is no [internal] competition.”

While the sales-marketing dynamic has always provided some healthy tension, “I think it’s archaic [having separate departments]. “No matter how much you’re aligned, you can’t execute quickly,” he says. “There’s visibility through that collaboration, which is powerful. At the end of the day, we’re all salespeople.”

Chobani continues to break sales records with double-digit growth. (It broke its own weekly share record during CGT’s interview.) “We have an authentic brand, we have a story to tell, we have beliefs that matter — that are relevant,” McGuinness says. He also asserts, of course, that Chobani has the best product.

CONSUMERGOODS.COM | DECEMBER 2017 | CGT

7

BUSINESS & AWARDS TECHNOLOGY 2017

CMO OF THE YEAR “We’re innovating, launching lots of new platforms and SKUs [adding], line extensions, investing in the brand,” says McGuinness.

What’s in store for the future at Chobani? The next goal on the horizon is to move beyond simply being a yogurt maker to become a food-focused wellness brand. “You’ll see us do a lot next year to bring back the specialness of yogurt — through nutritional wellness, community wellness and environmental wellness.”

“I’m happy for now, but not complacent. I’m always restless — live and active like the [yogurt] cultures,” laughs McGuinness.

SMB MARKET

AWARD Tiesta Tea

Presented to a small or mid-size company that best utilizes technology to achieve significant growth.

“The iPhone. That’s a nice tool,” says co-chief executive officer Patrick Tannous, when asked what technologies have helped blended loose-leaf tea maker Tiesta Tea expand its retail footprint to more than 6,500 U.S. stores (and counting) despite having only 14 employees on the payroll.

That comment is just one of the many indications that 8-year-old Tiesta Tea is not a traditional consumer goods company — even though its knack for scoring distribution deals with the likes of Safeway, Costco and now Target would make any old-school packaged goods manufacturer envious.

Tiesta also makes ample use of cloud-based collaboration tool Slack for internal communication and utilizes Salesforce “quite religiously” for operations and account activity, say Tannous, who began developing Tiesta with University of Illinois friend and now co-ceo Dan Klein in 2009 after the two fell in love with loose-leaf tea while studying abroad in Prague.

“And we’re very savvy with the marketing aspects of technology” available through social media like Facebook and Instagram, Tannous

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CGT | DECEMBER 2017 | CONSUMERGOODS.COM

adds. One example is targeting free samples to ZIP codes around specific store locations, which “always gives us a leg up” when talking to new accounts.

“We’re one of the few Millennial companies in the tea category, so we’ve got to use technology to our advantage,” he says.

The impressive growth ($5.1 million in 2016, before Costco came on board) will continue next month, when Tiesta will launch a ready-to-drink line of bottled tea into 950 Target stores. “We’ve been working directly with Target all year to develop the products,” says Klein. The mass merchant will have an exclusive six-month window before the line — an entirely new direction for Tiesta — expands to other channels.

But that doesn’t necessarily mean the employee ranks will be growing exponentially anytime soon. Tiesta’s founders are content to continue outsourcing ancillary functions “that you’re not the best at,” like accounting, finance and HR, explains Klein. “It’s not really about headcount. It’s making sure that your core capabilities are being covered by your own people.” Social media is one of those, he contends (again sounding like a Millennial). “You can’t outsource your own voice.”

“Every employee understands there will be days when they wear hats they did not sign up to wear,” like when the operations director stepped in to manage a key account after a sales team departure, says Tannous.

“It’s about finding people who believe in what you do and want to be part of something that’s more than just work,” he continues. That’s why social causes and community outreach are integral to the overall company mission. Efforts like “Spread the Warmth,” which delivers tea and winter apparel to the indigent in hometown Chicago, are another example of the Millennial mindset at work. Tiesta also is devoting a portion of sales to build water wells in Nigeria, from which it sources hibiscus.

Staying small also lets Tiesta stay nimble.

The company jumped at the chance to join a one-store test of bulk merchandising that Safeway was planning after learning about the effort at an industry trade show. The bulk tea sold well, and within 12 months Tiesta had rolled out a branded “Scoop Station” across seven Safeway retail divisions. “Sometimes, the ideas that can take you to the top are the ones you never thought of,” Klein says.

“There’s no book for any of this. There’s no book for creating a tea product, no book for getting into grocery stores. You need to surround yourself with people who have the experience,” Klein says, noting that other, more seasoned entrepreneurs are often willing to pass on the learning. “Don’t be shy. Get out there and talk to them,” he suggests.

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SUPPLY CHAIN REPORT 2017

STATE OF THE SUPPLY CHAIN I T ’ S HIGH T IM E CGS S T AR T E D TH IN K IN G ABOUT D IGITAL TRAN SFORMATION

he consumer goods supply chain is poised for a revolution. At no prior time in the history of this industry has there been more change — or potential for change — than there is today. IDC Manufacturing Insights predicts that, by the end of 2018, one-third of companies will find themselves disrupted by digitally enabled competitors. That’s only two years away.

The reality is that this competition often comes from unexpected, unanticipated places. Indeed, in many segments of the manufacturing industry, traditional barriers to entry have fallen, opening up opportunities for smaller “lateral” competitors to take share points from traditional and established large enterprise players.

IDC estimates that these competitors will take between 10 and 15 share points from established players by 2022 — barring acquisitions. The commoditization of production through a range of contract manufacturers, the ability for all companies to leverage market research from services like Google Insights, and other such factors means that the playing field has been leveled.

Digital transformation (DX) is about the consumer and the customer; that’s the world we live in. As many companies use digital competencies in the supply chain to drive better products and services, the ones that don’t will find themselves increasingly uncompetitive.

Digitally enabling the supply chain is critical, but it’s useful for everyone to be “reminded” why this is the case. It’s partly about reconciling “reality” from “aspiration” and accepting that today’s aspiration is tomorrow’s reality. Not all things digital must be necessarily disruptive. We view DX as a continuum ranging from things that are simply evolutionary (to do now for efficiency or effectiveness) to things that are truly revolutionary (to do in the future as a part of a supply chain “reimagining”).

The move to a digitally enabled, “thinking” supply chain must be undertaken in the name of readi-

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By Simon Ellis Vice President, Supply Chain Strategies IDC Manufacturing Insights

ness, return and relevance. Early-mover advantage is likely to be significant in DX, so making investments in technology, platforms or other infrastructure must be done in the context of readiness and preparedness.

As significant new capabilities emerge, the best-in-class consumer goods supply chain must be able to quickly consume and disseminate those new capabilities. But these investments must also provide a return, either by doing the same things done in the past better — thus driving efficiency or effectiveness — or by enabling new approaches.

Lastly, there is relevance: How do investments made today relate to the fundamental role of the business, or how do they facilitate new business models, as an example.

F I G U R E 1:

The Digital Supply Chain

CAPABILITIESBASED PROCUREMENT

EXTENDED PLANNING

LOGISTICS AUTOMATION

Sourcing Intelligence

Demand Signal Insight

Smart Postponement/MicroLogistics Network

Supplier Network Management

Extended S&OP

Transportation Optimization/ Capacity Visibility

Automated Kanban

Thinking Supply Chain

Global Trade Automation/ Regulatory Community

SOURCE: IDC, 2017

The digital mission of consumer goods companies is to create and offer engaging experiences at scale for both the consumer (the end-user) and the customer (mainly retail). It’s not enough to meet the needs of consumer segments; you must meet and exceed the needs of individual consumers in both ways they expect and ways they have not yet imagined.

There will be an increased emphasis on innovation excellence, both in terms of new product success rates and in the number of new products that will be required; the ability of the supply chain to manage different engagement models; and the ways in which both consumers and customers are engaged — and how that engagement gets funded. Consumer and customer expectations in brand-oriented value chain market segments will make this strategy mandatory, but implementation success and efficiency will be what determines profitability and competitive differentiation.

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SUPPLY CHAIN REPORT 2017

The Thinking Supply Chain IDC has been writing about supply chain modernization for several years now, but adopting a DX strategy sparks a tremendous sense of urgency for creating and enabling capabilities resilient enough to withstand the underlying complexity of satisfactorily delivering the promised experience.

Because of the complex nature of demand and the obligations for a productive innovation ecosystem, consumer goods companies have always had to deal with demand complexity through multiple tiers — both upstream to suppliers and downstream to customers and, now, consumers. Consequently, programs under this strategic priority will focus on closer collaboration with suppliers, more inclusive and faster planning, and smarter logistics (as summarized in Figure 1).

Capabilities-Based Procurement Although CG companies don’t deal with the same levels of complexity as other manufacturing sub-segments, supply and price management through multiple tiers remains an important part of their supply chains. This is particularly true as many companies move, for example, from making their own products to relying on contract manufacturers for finished goods.

Procurement traditionally has been based on buying defined volumes of ingredients, packaging and finished goods from suppliers, but it will transition to an approach that recognizes and reserves capacity for important inputs at key suppliers — which in turn will give companies the flexibility to respond to demand shifts more quickly.

Extended Planning DX dictates that supply chain decisions be made using near-realtime information on demand and consumption. CG companies will need to improve demand signal insights, engage more broadly TAB LE 1 :

Digital Transformation Horizons GOA L

EXAMPLES

HORIZON 1

Efficiency and effectiveness: Do the things we do today better (Pacer)

Using IoT to monitor equipment performance, or advanced analytics to better understand onshelf availability

HORIZON 2

Be resilient to market disruption: Have a business that can quickly adapt to changes in the marketplace (Fast Follower)

Using social media to extend the innovation process, or supply chain assistants to anticipate supply network disruptions

HORIZON 3

Be the disruptor: Support new business models or dramatically re-imagined ones (Leader)

Using 3D printing to enable product personalization, or IoT to capture usage data and improve the product experience

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within an extended sales & operations process, and recognize opportunities to both learn from prior action and improve future performance.

There is, then, an opportunity to use this thinking supply chain to improve how, what and when new products are brought to market.

Logistics Automation The movement of materials (both inbound and outbound) in consumer goods remains relatively inefficient, with many companies addressing the challenge either by requiring suppliers to be within close proximity or by maintaining excessive “buffer” inventories. To improve the cadence of this supply chain, companies will invest to automate logistics processes including transportation, warehousing and global trade.

Where Are We? The obvious question, then, is where do CG companies stand in terms of digitally transforming the supply chain? To begin to answer this, it’s important to revisit a comment made at the outset: What is the goal of DX? We’ve found it useful to articulate this in terms of different horizons, as summarized in Table 1.

The reality is that most companies are currently in Horizon 1. They’re beginning to employ digital technologies to drive efficiency in their supply chains, and using that as a way to improve the customer and consumer experience.

We do see a few companies emerging with digital business models (like 3D printing personalized cosmetics at home), exploring value-added adjacencies (Under Armour capturing health data) or digitizing the actual experience (Vivanda’s FlavorPrint process). But these remain the exception rather than the rule — at least for now.

The reality is that DX in the supply chain is moving rapidly. While companies that haven’t started are not that far behind yet, the leaders are moving quickly and, in relatively short order, the laggards will be substantially behind.

The key message, then, is to understand the implications of digital transformation and begin the journey to a digitally enabled, thinking supply chain now. ●

STATE OF ANALYTICS D E FINING E N D T O E N D T R AN S P AR E N CY

oday’s supply chain leaders have a problem. They are drowning in data, yet low on insights. In short, they cannot see. Data is everywhere, but not yet in useable formats.

The evolution of supply chain analytics is an exciting opportunity for business leaders. Traditional approaches focus on building analytics as an extension of existing enterprise applications: advanced planning, customer relationship management, enterprise resource planning, supplier relationship management, transportation management and warehouse management. New analytics approaches are designed based on data flows and requirements.

In this new world, data pools and streams inform business teams using new forms of analytics. The analytics infrastructure synchronizes, harmonizes and visualizes data flows. The analytics layer sits between the traditional application layer and workforce productivity.

These advancements are happening at both the enterprise and inter-enterprise level. The significant advances are being made in the following areas: Cognitive Computing: Within five years, decision support technologies like supply chain planning, revenue management and sourcing will be transformed through the use of cognitive computing. This new approach will allow teams to drive new business value through semantic reasoning.

The challenge for most teams will be trusting new forms of analytics. Companies will have to divorce themselves from spreadsheets.

Open Source Analytics: When e-commerce providers could not scale on relational database technologies, they evolved open source capabilities on Hadoop. Massive parallel processing enables schema on read handling and greater flexibility in the design of analytics. Instead of being stuck with inflexible hierarchies, schema on read enables the building of hierarchies and relationships by reading the data. This allows capabilities to evolve.

F I G U R E 2:

By Lora Cecere Founder & CEO Supply Chain Insights, LLC

Critical Analytics Techniques for 2030

Supply chain leaders: What techniques are most important for driving excellence?

5%

SENTIMENT A N A LY S I S

28%

C OGNITIV E R EAS ONING

22%

INTERNET OF THINGS

22%

CONCURRENT O P T I M I Z AT I O N

23%

DATA V IS UALIZATION SOURCE: SU PPLY CHAIN IN SIGHT S, L L C

Machine Learning: Companies are plagued by disparate data. The view is that it’s “dirty” data. The reality is that most silos within an organization need data with a different context. But the traditional approach of hand-coding master data is expensive and outdated. The use of machine learning facilitates the read of data when needed and the shaping of data to the business context. Machine learning will transform master data processes within two years.

Streaming Data Architectures: Today’s businesses operate on batch processes and latent data. With the evolution of the Internet of Things and advanced sensors, new processes will evolve to facilitate decisions at the speed of business.

This includes redefining replenishment from the outside in, redefining digital manufacturing to transform maintenance, and building new processes for service of heavy equipment, utilities, and asset-intensive operations.

Unstructured Data Mining: Within the organization, 70% of data is unstructured. This data is essential for understanding consumer sentiment, warranty and quality data. Mining this unstructured data enables its use for building a better understanding of how consumers view their products based on consumption patterns.

These advances are not an extension of existing processes and technologies. Testing and learning is required to understand the value and limitations of these technologies, which then will drive the design and implementation of new processes.

S U P P LY C H A I N R E P O RT | D E C E M B E R 2 0 1 7 | C G T

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SUPPLY CHAIN REPORT 2017

As shown in Figure 2, the evolution will be based on a confluence of new technologies. The continued dependency on spreadsheets is limiting the evolution of supply chain visibility (see Figure 3).

Electronic data interchange is the backbone of visibility today, but the future will change dramatically through blockchain.

How so? There is a movement to multi-tier lineage and supply chain finance. While blockchain is not the replacement for integration from one company to another, it is useful for the transformation of multi-tier processes. Why is this important?

Outsourcing is a Reality. For the average company, outsourcing of manufacturing and transportation is a certainty. Over 90% of companies are involved in outsourcing: 30% outsource 40% or more of their manufacturing, and 55% outsource at least 40% of their logistics on a volume basis.

Supply chain visibility has many forms. But few are being delivered well. Visibility within the company is being addressed by current IT architecFIG U RE 3 :

tures, but business-to-business architectures that support emerging supply chain visibility requirements are evolving. Blockchain is promising to improve track and trace, supply chain finance, and product lineage.

The gaps in supply chain visibility are large. Satisfaction with EDI is high, but it’s brittle. The average company has seven different ERP instances; 49% of companies report that ERP spending plays a major role in their IT budgets. The gaps for supply chain visibility are high, and the answer will not come from ERP. Improving visibility is critical as supply chains grow more complex. Leaders will pave a new path using blockchain. To improve transparency through analytics, here are three steps to take: 1. Define Priorities and Align Solutions. It is important for companies to document requirements for supply chain visibility for transportation, sourcing and manufacturing. This includes planning and unstructured data.

2. Get Clear on What You Are Doing Today. Document the “As Is” and the “To Be” states. The goal is to have transactions flow hands-free and to have the right data for the right people chain when they need it.

3. Align IT Strategies with Future Goals. Line of business leaders need to work with IT to align IT spending and future plans. Rationalize ERP spending, maximize private networks and qualify new public visibility solutions.

Companies have to “unlearn” the past to rethink how to use new technologies to improve transparency. It requires nothing less than a paradigm shift. ●

Current State of Visibility

96% 83%

79%

95%

87%

85%

74% 63%

62% 53% 38%

50%

47% 35%

29%

18%

-50% INTER-ENTERPRISE ORDER MANAGEMENT TO CUSTOMERS

-45%

-44%

FIRST TIER MATERIAL SUPPLIERS

TRANSPORTATION & LOGISTICS NETWORK

-40%

-40%

THIRD-PARTY MANUFACTURING

THIRD-PARTY LOGISTICS

-33%

-32%

TRANSACTIONS & SUPPLY CHAIN DECISIONS WITHIN COMPANY

SECOND & THIRD TIER SUPPLIERS

-22%

MANUFACTURING WITHIN COMPANY

Greatest Gaps

IMPORTANCE

PERFORMANCE

S O UR C E: S U P P LY C H A IN INS IG H TS , LLC Q1: How important is it for your company to have visibility of the supply chain in each of the following areas? (Scale: 1=Not at all important, 7=Extremely important) Q2: How well do you think your company performs on having supply chain visibility in each of these same areas? (Scale: 1=Poor, 7=Excellent)

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GAP

STATE OF AUTOMATION D I G I T IZAT IO N IS N O T DIGIT AL IZ ATION

By Lora Cecere Founder & CEO Supply Chain Insights, LLC

FIGU RE 4 :

Let’s start by recognizing that “digitization” is not “digitalization,” although both can improve automation.

What’s the difference? When we digitize a process, we translate a physical state into a digital signal. This can be used to improve automation but is not necessarily digital.

In contrast, digitalization takes this signal as a process input and translates it — and perhaps a myriad of other inputs — through process logic into a digital output. This takes many forms. The process of mapping signals is important, but it’s not the end state.

Let’s take an example. An EDI document transmits and digitizes data, but current EDI processes do not enable the digital supply chain. Why? The signals are not bi-directional or processed at the speed of business.

Another example is sensor data in manufacturing. Most plants have multiple programmable logic controllers and sensors. These technologies transmit outputs, but our current processes don’t use them to drive a digital manufacturing transformation.

In moving manufacturing to a digital strategy, companies use digital signals to redefine maintenance down times; sense shifts in speed to alert based on prescriptive analytics (or bots) for quality; and transmit the signals to robotics and wearables for hands-free operations.

These are just a few examples, by the way. The full list of how signals can be used in manufacturing is endless. The challenge is translating these signals into digital process outputs.

New Technologies Driving Process Advancement

Unlearning What You’ve Learned

hese days, terms like “digital” and “digitization” are bandied about like popcorn hopping from a kettle on a hot summer day. As the words fill the air, they lack clarity. They are not actionable. One of the reasons is that there is no common definition across the industry.

At Supply Chain Insights, we define the “digital supply chain” as one that redefines the atoms and electrons of today’s processes. Here are some examples (also shown in Figure 4): • Uberization: sharing platforms for collaborative economies.

• Redefining business to business activity through blockchain (multi-tier finance, lineage, track & trace).

• Additive manufacturing (3D printing of finished goods spare parts).

• Digital manufacturing (combining robotics, wearables and the Internet of Things) to redefine maintenance downtime.

B LO C K C H A IN

COGNITIVE COMPUTING

STREAMING DATA (IOT)

OPEN SOURCE ANALYTICS WEARABLES AND MOBILITY

3D PRINTING

ROBOTICS

The movement to a digital supply chain makes much of what we already know obsolete. And that includes many of our traditional ways of thinking. This transition can be very uncomfortable for supply chain teams.

One example involves the building of outside-in processes, which of course makes standard inside-out thinking obsolete. Today’s processes are very focused on orders and shipments.

But does the digital supply chain require an order? If a drone uses pattern recognition to monitor real-time inventory, how does that change warehouse management? If cognitive engines replace and redefine supply chain planning, what is the role of collaborative forecasting? If machine learning can read master data, do we need to hard-code data? What is the role of ERP as we transition from transactional process flows relying on an ERP-based SCM platform to thinking systems using open source-based cognitive computing?

The opportunities to reinvent the possible and drive new value are endless.

But here are a few.

1. Accelerate Value Networks. While companies talk value networks, the current focus of automation within organizations is enterprise-centric. As a result,

S U P P LY C H A I N R E P O RT | D E C E M B E R 2 0 1 7 | C G T

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SUPPLY CHAIN REPORT 2017

In building the digital supply chain, companies need to fund process innovation.

eliminate the need for a business process outsourcing relationship and redefine third-party logistics. New business models will evolve. Smart 3PLs will lead the transformation. We will have to learn to touch things — paper, Excel spreadsheets, and keyboards — less often.

3. Evolve the Learning Organization. The gulf between IT organizations and line-of-business leaders at many organizations today is wide. The role of IT has been more focused on “keeping the lights on” and, as a result, there is little funding for innovation. In parallel, line-of-business leaders are struggling to keep up with the pace of innovation.

The companies that will move fastest will recognize that this shift requires a redesign of organizational thinking to embrace technology. This includes partnering with best-of-breed technologists, building small cross-functional teams to test new tools, and undertaking structured/active learning focused on process innovation.

Companies need to fund process innovation. Today, most only fund product innovation. There has been an assumption that software brings “best practices,” so the focus has been on implementation. In building the digital supply chain, this is no longer the case (see Figure 5).

One large driver is the progression of analytics from descriptive to autonomous decision support. This evolution is enabling self-driving vehicles, sensing in business networks and sensing capabilities for rule matching; examples include allocation, available to promise, route tendering, inventory matching, order deduction matching. This drives an improvement in enterprise agility.

Today’s supply chains respond, but they do not sense. The ability to sense, learn and then drive an intelligent response is a fundamental underpinning of many of these shifts to the digital supply chain. ●

companies are driving marginal improvement and treading the same ground over and over again.

The transition from EDI to blockchain enables banking disintermediation and the secure, real-time sharing of data between trading partners.

Use of these technologies requires the definition of multi-tier process capabilities. For example, how should companies share demand data? What are the possibilities for supply chain finance? In this transition, what is the role of banking? How do we collaborate in new ways and build trust? I firmly believe that the human element will be the toughest obstacle here.

2. Disintermediate 3PLs and Redefine BPO Relationships. Machine learning and rule automation will FIG U RE 5 :

Evolution of the Digital Supply Chain

DECREASING EXCITEMENT -54%

INCREASING EXCITEMENT

-41%

TODAY

-57%

BY 2030

GAP (2030 VS. TODAY)

72%

72%

65%

33%

-37% -33% 48%

17%

Data Increased visualiza- visibility tion into supply chain

-11%

Mobile technologies

13%

Demand sensing

13%

Corp. social responsibility

9%

13%

43%

39% 22%

7% 26% 24%

24% 17% 17%

24% 11%

Big data

7%

11%

Supply sensing

17% 9%

Digital manufacturing

3D printing

13%

Use of unstructured data

28%

Collaborative economy

33%

30%

7% IoT

Machine Blockchain and learning hyperledger

S O U R C E: S U P P LY C H A IN INS IG H TS , LLC Q1: When it comes to driving supply chain excellence, what are the top 5 supply chain trends impacting [your company’s] supply chain(s) today?

Q2: What do you think will be the top 5 trends to impact [your company’s] supply chain(s) by 2030?

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61%

46%

7% Robotics

52%

65%

20%

46%

30%

9%

35%

65%

9% Autonomous vehicles

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S P O N S O R E D

CO N T E N T

SIFTING THROUGH DATA & ANALYTICS HYPE

Small Strategies Yields Big Results Myth

My company is too small to need insights beyond what I can get from analyzing basic sales and spending data.

Reality KURT KAISER Vice President, Business Development TPM Retail AFS Technologies

www.afsi.com

“Chances are you already have much of the information that would make you smarter.”

Small consumer goods companies know their shipments and trade spending history. What they probably don’t know is exactly where the money is being spent, what products and activities it’s funding, and if the spending is effective. When a company says it’s “too small” to invest in data and analytics capabilities, a handful of justifications usually reside below the conclusion: My exit strategy doesn’t require it.

When small, growing companies have a winning product everything else seems to take care of itself. But when trade spending is equal to one-fifth of your revenue, deploying trade dollars in a more profitable way will improve the bottom line — whether your intention is to grow the company or make it attractive to a suitor.

We don’t have the right data. The analytics space covers a lot of ground. Many solutions can provide third-party data, but chances are you already have much of the

information that would make you smarter. You just aren’t collecting and managing it in a way that makes it as valuable as it could be.

We don’t have the bandwidth. In the absence of a system, work time is dominated by collecting and submitting information and compiling spreadsheets to do basic analysis.

There are many mature capabilities that can do this much more effectively than spreadsheets.

Transformation will take effort that stretches the bandwidth of your team. This, however, is short-term pain for long-term gain.

Tools are too expensive. If this has been your experience in the past, look again. Most vendors now have pricing that takes your size into consideration.

No matter what the size, your company can achieve a respectable return on investment from a progressive data and analytics strategy if you understand what’s possible and make it a priority.

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S P O N S O R E D

CO N T E N T

SIFTING THROUGH DATA & ANALYTICS HYPE

Mastering a Single View of Consumers Myth

Consumer goods manufacturers can identify their customers but not their consumers.

Reality

AURIA MOORE Director of Solution Strategy, Customer Master Data Management Stibo Systems

www.stibosystems.com

“If the lens on your consumer isn’t clear, it’s nearly impossible to establish a connection.”

With consumers demanding personalized connections with brands in exchange for loyalty, consumer goods manufacturers need to understand who is purchasing their products, how often, and through which preferred channels. But they’re generally separated from the discovery process, because their direct customers — retailers — are the ones collecting that data directly from consumers.

That information, along with what factors converted them, is then isolated by retail location/distributor and stored in separate systems, creating a fuzzy picture of who is buying what at the consumer level. And that makes it challenging for manufacturers to gauge market demand and understand who their best (and worst) consumers are.

A customer master data management (CMDM) solution can help create a single identity and trusted record of business-to-business and consumer customer data.

For customer support and account management teams, CMDM improves engagement. It enhances cross-sell/up-sell discussions by creating a single view of the consumer,

correlating transactional and interaction data, along with the individual’s personal history with the brand.

For marketers, CMDM provides a reliable foundation for segmentation. It connects siloed data points, removes duplicates and cleanses the data to create a unified view of consumers so marketers can ultimately deliver relevant messages and offers.

Product manufacturers who leverage CMDM gain insight into their actual consumers, not just into the customers/distributors where they make purchases. By connecting data from separate systems (such as CRM and ERP), along with other interaction data, companies will get a clearer idea of who is buying what, how often they’re buying, and what their preferred purchase methods are.

Consumers don’t want to be treated as equals. They want a personal connection with brands and demand that offers and interactions are based on an understanding of who they are. If the lens on your consumer isn’t clear, it’s nearly impossible to establish a connection. Getting the data right is the first step in improving their journey.

April 25-27, 2018

The Drake Hotel | Chicago, IL

5th ANNUAL

RETAIL AND CONSUMER GOODS

UNLEASH THE POWER OF DATA TO DRIVE COMPETITIVE ADVANTAGE For more information, visit: www.consumergoods.com/analytics-summit Statement of Ownership, Management, and Circulation (Requester Publications Only) 1. Publication Title Consumer Goods Technology

4. Issue Frequency Jan, Mar, May, Jun, Oct, Dec

2. Publication Number 1

5

3

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3. Filing Date 8

4

2

1

5. Number of Issues Published Annually

Contact Person Jeffrey Zabe

Telephone (Include area code) EnsembleIQ, 4 Middlebury Blvd., Randolph, NJ 07869-1111

14. Issue Date for Circulation Data Below

Consumer Goods Technology

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13. Publication Title

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EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste 200, Chicago, IL 61631-3731

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EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste 200, Chicago, IL 61631-3731

Korry Stagnito, President Canada & Chief Business Devl Officer

EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste 200, Chicago, IL 61631-3731

d. Nonrequested (2) Distribution (By mail and outside the mail) (3)

(4)

25,767

25,717

13,041

12,963

Outside County Nonrequested Copies Stated on PS Form 3541 (include sample copies, requests over 3 years old, requests induced by a premium, bulk sales and requests including association requests, names obtained from business directories, lists, and other sources)

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X I certify that 50% of all my distributed copies (electronic and print) are legitimate requests or paid copies.

17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the issue of this publication.

18. Signature and Title of Editor, Publisher, Business Manager, or Owner 13,041

12,963

12,309

12,396

12,396

November 2017

Date

9/21/17

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

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e.

Total Nonrequested Distribution [Sum of 15d (1), (2), (3) and (4)]

12,309

f.

Total Distribution (Sum of 15c and e)

25,710

g.

Copies not Distributed (See Instructions to Publishers #4, (page #3))

250

358

11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities. If none, check box.

X None

h.

Total (Sum of 15f and g)

25,960

25,717

Full Name

i.

Percent Paid and/or Requested Circulation (15c divided by 15f times 100)

50.2%

50.4%

Complete Mailing Address

16. Electronic Copy Circulation

d. Percent Paid and/or Requested Circulation (Both Print & Electronic Copies) (16b divided by 16c Í 100)

Requested Copies Distributed by Other Mail Classes Through the USPS (e.g., First-Class Mail®)

c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4))

Editor (Name and complete mailing address)

Statement of Ownership, Management, and Circulation (Requester Publications Only)

June 2017

Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date

25,359

* If you are claiming electronic copies, go to line 16 on page 3. If you are not claiming electronic copies, skip to line 17 on page 3.

12. Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) (Check one) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: Has Not Changed During Preceding 12 Months Has Changed During Preceding 12 Months (Publisher must submit explanation of change with this statement.)

PS Form 3526-R, July 2014 [Page 1 of 4 (See instructions page 4)] PSN: 7530-09-000-8855

PRIVACY NOTICE: See our privacy policy on www.usps.com.

PS Form 3526-R, July 2014 (Page 2 of 4)

PS Form 3526-R, July 2014 (Page 3 of 4)

PRIVACY NOTICE: See our privacy policy on www.usps.com.

Consumer Goods Technology (USPS 0011-255, ISSN 1530-8421) is published 7 times per year: January/February, March, May, June, August, October, and December, by Ensemble IQ, 4 Middlebury Boulevard, Randolph, NJ 07869. Subscription rates: $89 for U.S. addresses; $99 for Canadian addresses; $109 for all other addresses. Single copies are $20; add $2 for postage to Canada, or $5 to other countries. For Air Mail, add $65. Copyright 2016 by Ensemble IQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or information storage and retrieval system without permission in writing from the publisher. Periodicals postage paid at Dover, NJ 07801-9998 and additional mailing offices. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to: Consumer Goods Technology, PO Box 261, Lowell, MA 01853.

CONSUMERGOODS.COM | DECEMBER 2017 | CGT

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