N E W S L E T T E R Second edition / Q1 / Groupe SEB USA
What’s new: new product launches Amazon business: our bet for 2021
All-Clad 50 years: Our history & Innovation through the years Millville: aiming for excellence
Meet the new members of the management team.
Our commitment: Sustainable development
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L E A D E R S N E W S L E T T E R
These are not unprecedented times! There are many cases, lists of cases where change or something unexpected has put many companies out of business and made other companies come out stronger and reinvent themselves. The invention of the internet put many companies out of business. The ones who could not reinvent their business model for the internet age but rather double down on the old way they did business. Every video store is out of business because of streaming and they could not reinvent themselves. Uber is putting Taxi companies out of business not because of Uber, it’s because the Taxi companies refused to change. Amazon is putting companies out of business and has changed the traditional way of retailing. Book stores barely exist anymore. Not because of Amazon but because they did not reinvent, they refused to change. However, many small businesses were agile enough and had the will to change their business model. They started to adapt, transformed into the digital age of retailing, and onboarded themselves on marketplaces such as Amazon & Co. Another example is Starbucks. When they moved into neighborhoods many companies went out of business. Many coffee shops went out of business, not because of Starbucks but because they refused to change the way they did business. This is not unprecedented!
Yashar Nategh VP of Sales Is it something new? Yes, it is! Is it more sudden? Absolutely! Is it more shocking? Without a doubt it is! But this is not unprecedented in the business world. It is another wake-up call for companies. Companies who will remain in “survival mode” will disappear, companies who will be in “reinvention mode” will succeed.
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Let us jump fast forward into our world. What has happened to our customers since last year? JCPenny filed for Chapter 11 bankruptcy on May 15th. Tuesday Morning filed for Chapter 11 bankruptcy on May 27th and announced to close approx. 230 stores. Sur La Table filed for Chapter 11 bankruptcy on July 8th. You will find many more examples in the restaurant and apparel industry. But there are also some positive examples. Our number 1 All-Clad customer Williams Sonoma was able to operate during the pandemic and rely on their online operations while their stores were temporarily closed. They still plan to close more than 40 doors and become more efficient. Macy’s annual revenue dropped by 30% from 2019 to 2020. However, they were able to compensate part of the decrease through their online business. Best estimates weigh their online business at more than 50% with a YoY growth of more than 20%. Clearly Amazon is one of the big winners if not the biggest winner. In 2020 they have recorded $386B in net sales a growth of 38% vs. 2019. We also had a record year with Amazon ending on the number 1 seat the first time for SEB USA.
The fact that Groupe SEB has started to invest in e-commerce years ago and has built partnerships with players like Amazon across the globe was essential for the future of the company. Our new global Direct-to-Consumer (D2C) initiative is imperative and one key part of our new company project AGILE. A new endeavor for the group to get closer to all the households we serve. In the last issue Martin has mention it as a transformation, as an evolution. I truly believe that too! It will require passion for innovation and creativity. It will require to be more efficient. Ultimately, it will require the ability to learn, to be fast and to be focused, all at the same time. The concept behind that is based on lean management and it is called “The optimal learning loop”.
Chasing your tail
Premature optimization
SPEED
LEARNING
The optimal learning loop
FOCUS
Runing out resources
I am very much looking forward to our future and I hope everyone feels the same. Let me please finish with a simple but true quote of Jeff Bezos: “In business, what’s dangerous is not to evolve.”
M A R K E T I N G
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We are in love with our brands, that's why we want you to know more about our categories. Here we will tell you about the challenges, priorities, new launches and much more!
SDA Category: David Briganti, SDA Marketing Director, tells us: What was happening in the SDA category during 2020? Garment Care struggles were due to the stay at home orders and people not going to work or going out. For most of us the daily wardrobe was sweatpants and a T-shirt and the category saw significant declines. Regardless of the struggles of the category, Rowenta remained the #1 Brand in Garment Care and we captured the largest share growth of any other brand in 2020.
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Kitchen Electrics benefited during this time since we all were cooking more at home due to restaurant closures. Our KE business saw great success with our assortments particularly at Amazon and Walmart. During the year we also optimized our portfolio: reducing sku count to significantly improve our profitability across the entire KE portfolio.
Our Challenges:
Garment Care: We still do not know
the real impact COVID will have on our business in 2021. Garment Care category has been deprioritized at retailers due to the lackluster performance, store closures at our traditional channels of distribution will continue to happen impacting our business.
Kitchen Electrics
while growing is facing challenges from increased competition and potential tariff implications which will impact our profitability and competitiveness.
2021:
We expect there to be a slow recovery in Garment Care as the vaccine becomes more widely available and people start going out again. More realistic timing is going to be after the second half of the year.
Also, we expect Kitchen Electrics to continue to grow just not at the same levels as it did in 2020. We will focus on our more efficient and profitable assortments.
High level SDA Priorities 2021: Maintain leadership position for Rowenta as Garment Care Slowly Recovers from COVID. Leverage Optimized Kitchen Electric and Home Comfort Portfolios, to continue to grow while maintaining profitability. Launch into new growth category of Air Fryers.
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Upcoming product
launches:
March Rowenta : Xcel STEAM FORCE DR82
April T-fal : FV1742 Eco Master
Spring Rowenta : Turbo Silence Extreme + Spring Rowenta : Outdoor Fan
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Upcoming product launches: Spring Rowenta Connected Purifier
Summer Rowenta Pure Air Essential
January Krups Simply Brew Family 10Cup February Krups : Simply To Go
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Cookware Category
What’s new? We have a lot of exciting newness coming in All Clad. First up, the launch of our first direct-to-consumer cookware range on AllClad.com called D3 Everyday. This assortment reaches a never before seen price point, for even more consumers to add All-Clad to their kitchens https://www.all-clad.com/cookware/collections/d3-everyday.html
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All-Clad Celebrates 50 Years! For generations, All-Clad Metalcrafters has been revolutionizing the cookware category with innovative products designed for both professional chefs, Michelin star kitchens and home cooks alike. In honor of the brand's 50th anniversary, All-Clad will be celebrating passionate cooks across the nation and the brand's 'Made for America' mentality with its everlasting connection between the metalworkers who bond metals and the meals that bond people by curating a series of activities, partnerships, and chef collaborations.” We invite you to follow our Instagram account: @allclad to celebrate together.
Upcoming product launches: For our retail partners – our newest launch will be HA1 Curated, exclusively at Crate&Barrel.
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Follow @tfalusa on Instagram to get the latest updates and healthy cooking hacks
US’ LONGEST LASTING NON-STICK;
Tested in external laboratories to gauge abrasion resistance and non-stick durability against our top competitors. The premium ‘Unlimited’ and ‘Endurance’ cookware collections featuring best anti-scratch Platinum Coating; designed for non-stick, non-scratch and nonstop cooking. Launch: July 2021
CLICK. COOK. STACK; Designed
to attract Millennials and Gen Zs (42% of US Population) looking for versatile and space saving all-in-one solution. The innovative removable handles of ‘Ingenio’ lets you take your pans from the stove, into the oven, onto the table and into the fridge. Launch: September 2021
FIRST EVER ENAMELED CAST IRON COOKWARE DESIGNED BY T-FAL; featuring a unique condensation system in the lid to evenly distribute moisture for delicious cooking results.
The Dutch Oven and Casserole feature thick induction compatible base and tight-fitting lid; and it is beautiful enough to be used directly on the table or left on the countertop. Launch: September 2021
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All-Clad 50 Years!
Our History & Innovation through the years HISTORY
PRODUCT LAUNCHES
2021: All-Clad celebrates
its 50th Anniversary
Chef Partnerships expand further
2011: All-Clad celebrates its
40th Anniversary
2010’s
Chef Partnerships expand
D3 Curated SD5 Collective Fusiontec
2020’s SD5 – 5 Layers TK Range Hard Anodized
Bakeware More Tools & Accessories More Electrics D7, LTD, C2, C4, Hybrid, D3 Armor
2004: Groupe SEB purchases All-Clad
2000’s
BD5 Nonstick LTD2 – 5 Layers Kitchen Electrics
Chef Partnerships James Beard C.I.A.
1999: Waterford Crystal
purchases All-Clad
1988: Sam Michaels purchases All-Clad
1980’s
1971: Ulam begins manufacturing finished cookware products as All-Clad Metalcrafters
1960: John Ulam, (founder of All-Clad) establishes Composite Metal Products, Inc 1967: Composite Metal
Products forms alliance with Alcoa to create Clad Metals, Inc
1960’s
1990’s
D3 Stainless Cooper Core Bakeware Specialty Pieces Kitchen Tools
Innovation continues as Master Chef is adapted in 1981 with LTD, featuring a dark exterior Retailers expand: Williams Sonoma, along with other Kitchen Specialty and High-End Department stores are selling All-Clad
1970’s
Master Chef Cop*R*Chef
S A L E S
N E W S L E T T E R
Amazon Business The Amazon business continues to show strong performance YoY however, we are anticipating softer trends as we are up against COVID-19 starting in March. Cookware continuing to drive the business with double digit growth expected to remain throughout 2021. Continuing from 2020, we do anticipate some headwinds in 2021 mostly related to inventory.
Most notable launches coming up in Kitchen Electrics are Airfryers and in cookware we are focused on introducing our customer to the Ingenio portfolio along with our new Unlimited range. Additional launches we are anxious to introduce are Cast Enamel and Fusiontec. Our Simply Brew line in KRUPS is off to a great start with the TOGO and 10Cup launched in January and our digital brewer launching in 2H of 2021. In linen care, we are excited to expand the breath of our iron portfolio not only in Rowenta but also under the T-fal brand.
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Meet the new members of the Management Team Be on the look out for next edition with Luis Ocampo, VP of Operations
What’s one thing that surprised you about working in GS USA? I was actually surprised at the number of expats within our US business. I think it speaks volumes that the organization values the development of talent in this way. It speaks to the commitment to build talent with key development experiences in mind. Many organizations wouldn’t.
Are you an early bird or a night owl? Typically, an early bird... some of the most productive things can be done before most people are awake.
N E W S L E T T E R
NO POVERTY
Nicholas Miele
VP of Human Resources GS USA & Canada What’s the worst jobÉNERGIE you’ve PR ever had, and what ET didD’UN you CO learn from it? ABORDABL
Working at a bank as a Financial Sales Rep….my biggest learning from this was around Ethics and Morals… never compromise them.
What’s one thing you’re currently trying to make a habit? measures
What is your favorite part of your job so far?
tomindful fight In this pandemic, I have been very climate about consistent eating habits. This cha will be something I will try and stick to when things begin to normalize a bit.
My team…. hard working team with a lot of passion to make Groupe SEB the best it can be.
What’s your favorite way to unwind after a busy day?
What was your very first job ever? I worked unloading trucks filled with in-ground swimming pools. I was 12.
After a really busy day I am usually full of energy, so I take just a few minutes to reflect and then try to strike up a conversation with family to check in with them on their days.
PRE T
ge
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Millville is officially ISO triple certified for ISO 9001 Quality, ISO 14001 Environment, and now ISO 45001 Safety! Thank you so much for your efforts.
“ZERO” HUNGER
HEALTHINESS AND WELL-BEING
quality education
MANAGEMENT SYSTEM CERTIFICATE
Site Certificate No.: 217032CC20-2017-AQHSE-FRA-DNV
Initial date: 04 December 2004
gender equality
Valid: 24 February 2021 – 31 December 2022
Central Office Certificate No.: 217032-2017-AQHSE-FRA-DNV Rev.7
This is to certify that the management system of
decent work INDUSTRy, GROUPE SEB USA Corp. and economic INNOVATION and MILVILLE – NJ 08332 - USA growth 2121 Eden Road – INFRASTRUCTURE
reduced inequality
VILLES ET COMMUN DURABLE
has been found to conform to the Management System standards:
ISO 9001:2015 / ISO 14001:2015 / ISO 45001:2018 This certificate is valid for the following scope: Activity of design, purchasing, manufacturing, selling, logistics and aftersales service for domestic and professional products sold under the brands of SEB Group.
VIE AQUATIQUE
Place and date: Genas, 24 February 2021
VIE TERRESTRE
PAIX, JUSTICE ET INSTITUTIONS EFFICACES
For the issuing office: DNV GL - Business Assurance Parc Everest, 54 Rue Marcel Dassault – 69740 Genas - France
Estelle Mailler Management Representative Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid. Unit : DNV GL Business Assurance France, Parc Everest, 54 Rue Marcel Dassault, 69740, Genas, France. TEL:+33 (0)4 78 90 91 40. www.dnvgl.fr/certification
PARTENA POUR LA RÉALI DES OBJE NO
NO POVERTY POVERTY
ÉNERGIE PROPRE ÉNERGIE PROPRE D’UN COÛT ETET D’UN COÛT ABORDABLE ABORDABLE
measures measures
H U M A N
R E S O U R C E S
N E W S L E T T E R
EAU PROPRE ET ASSAINISSEMENT OUR SUSTAINABLE
DEVELOPMENT COMMITMENTS
Convinced that Sustainable Development represents a lever for creating value for the territories, but also for our customers and consumers, we try to act throughout our value chain, involving all the group's business lines. responsible attractive, our brands must show UTÉSTo remain consumption what they bring to society. Sustainable and production Development now extends to Innovation and Marketing with a view to progressively designing a range of products and services that can have a positive impact on our consumers’ daily lives and the preservation of the planet.
ATS
S U S TA I N A B L E ATIONDEVELOPMENT
TIFS
ERO” ” NGER ERTY GER
GOALS
ent work RGIE PROPRE nt work d economic UN COÛT economic wth RDABLE th
Esures
HEALTHINESS quality “ZE RO” HEALTHINESS HEALTHINESS quality AND WELL-BEING education education HUNGER AND WELL-BEING AND WELL-BEING
NO NONONO POVERTY POVERTY POVERTY POVERTY
“ZE RO” “ZE RO” “ZERO” “ZE RO” “ZE RO” HUNGER HUNGER HUNGER HUNGER HUNGER
NO POVERTY
“ZERO” HUNGER
VIE VIE VIE
VIE PAIX, JUSTICE PAIX, JUSTICE
NO “ZE RO” HEALTHINESS quality quality HEALTHINESS quality HEALTHINESS HEALTHINESS quality POVERTY HUNGER AND WELL-BEINGeducation education AND WELL-BEING education AND WELL-BEING AND WELL-BEING education HEALTHINESS
decent work and economic growth
VILLES reduced measures VILLES ETET measures measures measures inequality tofight fight COMMUNAUTÉS to fight to fight to DURABLES climate change DURABLES climate change climate change climate change
VILLES ET responsible VIE VIEVIE responsible VIE COMMUNAUTÉS consumption AQUATIQUE AQUATIQUE consumption AQUATIQUE AQUATIQUE DURABLES andproduction production and
measures to fight climate change
VIE AQUATIQUE
PAIX, JUSTICE PARTENARIATS PARTENARIATS
PARTENARIATS
INDUSTRy, INNOVATION and INFRASTRUCTURE measures responsible VIE VIEVIE VIE to fight consumption TERRESTRE TERRESTRE TERRESTRE TERRESTRE change and climate production VIE TERRESTRE
HEALTHINESS quality gender EAU PROPR gender EAU PROPRE gender EAU PROPRE ETE gender EAU PROPRE AND WELL-BEINGASSAINISSEMEN education equality ASSAINISSE equality ASSAINISSEME equality equality ASSAINISSEM
quality education
gender EAU PROPRE quality gender EAU PROPRE ET ÉNERGIE PROPRE reduced decent work INDUSTRy, reduced ÉNERGIE PROPREdecent decent work gender EAU PROPRE ETET INDUSTRy, ÉNERGIE PROPRE decent work INDUSTRy, reduced ÉNERGIE PROPRE decent work ÉNERGIE PROPRE work ÉNERGIE PROPRE decent work INDUSTRy, reduced ASSAINISSEMENT education equality ASSAINISSEMENT ET D’UN COÛT and economic INNOVATION and inequality ET D’UN COÛT and and economic INNOVATION equality ASSAINISSEMENT ET D’UN COÛT and economic INNOVATION and inequality and economic ETequality D’UN COÛT economic and ET D’UN COÛT and economic INNOVATION and inequality inequality ABORDABLE growth INFRASTRUCTURE ABORDABLE growth ABORDABLE growth INFRASTRUCTURE growth ABORDABLE growth INFRASTRUCTURE ABORDABLE growth INFRASTRUCTURE ÉNERGIE PROPRE ET D’UN COÛT ABORDABLE
INDUSTRy, decent work INDUSTRy, reduced INDUSTRy, reduced INNOVATION and inequality and economicand inequality INNOVATION INFRASTRUCTURE growth INFRASTRUCTURE
Our Sustainable Development strategy was born from extensive internal cosultation that involved the Group's various business lines and countries. Consistent with the UN's Sustainable Development Goals, it aligns the vision of all the teams, gives the Group the opportunity to become a contributing company at all levels and to pave the way by positively inspiring other economic players.
United Nations Sustainable gender EAU PROPRE Development Goals equality ASSAINISSEM to which Groupe SEB is committed
reduced INDUSTRy, VILLES ET VILLES responsible responsible VILLES ETETET VILLES responsible inequality INNOVATION and responsible COMMUNAUTÉS COMMUNAUTÉS consumptio consumption COMMUNAUTÉS COMMUNAUTÉS consumption consumptio INFRASTRUCTURE DURABLES DURABLES and produc and productio DURABLES DURABLES and production and produc
reduced inequality
VILLES ET COMMUNAUTÉS DURABLES
responsible consumptio and product
VIE PAIX, JUSTI VIE PAIX, JUSTICE PARTENARIATS PARTENARIATS PAIX, JUSTICE PARTENARIATS PAIX, JUSTICE PAIX, JUSTICE PARTENARIATS TERRESTRE ET AQUATIQUE TA INNL ET INSTITUTIONSPOUR POUR SS USSTA SUUTA IA NIINSTITUT A BAA INSTITUTIONS POUR SU IN B ELBBELLEE ETET INSTITUTIONS SS TA ET INSTITUTIONS POUR EFFICACES EFFICACES DEVELOPMENT LA RÉALISATION EFFICACES DEVELOPMENT RÉALISATION EFFICACES DEVELOPMENT EFFICACES LALA RÉALISATION DEVELOPMENT LA RÉALISATION DES OBJECTIFS DES OBJECTIFS DES OBJECTIFS DES OBJECTIFS PAIX, JUSTICE ET INSTITUTIONS EFFICACES
GOALS GOALS GOALS GOALS
PARTENARIATS S U S TA I N A B L E POUR LA RÉALISATIONDEVELOPMENT DES OBJECTIFS
GOALS
T
S
H U M A N
R E S O U R C E S
N E W S L E T T E R
Demonstrate our respect for each person and our utility for society on a daily basis
People matter
Ethics, Human Rights and Governance Responsible purchasing
Responsible employment policy • Working conditions • Social dialogue Citizenship engagement
SUSTAINABLE INNOVATION
CIRCULAR REVOLUTION
Empower our customers to adopt sustainable lifestyles thanks to our products and services
Make our products and services part of the circular economy Quality and sustainability
COOKING FOR GOOD
BETTER HOMELIFE
Repairability Recycled materials Second life Rental
gender equality
VILLES ET COMMUNAUTÉS DURABLES
Make healthy and tasty home-made food accessible to EAU all PROPRE ET Product safety
Help everyone to live better in a healthy home, regardless of their age and health
Home-made food for all
Inclusive-design products
ASSAINISSEMENT
responsible
Healthy eating consumption and production and sharing Sustainable cooking
PARTENARIATS S U S TA I N A B L E POUR LA RÉALISATIONDEVELOPMENT DES OBJECTIFS
GOALS
Healthy home
Recycling
CLIMATE ACTION
Contribute to the fight against climate change thanks to our low-carbon strategy Eco-design Eco-manufacturing Eco-logistics Eco-friendly workplace
H U M A N
R E S O U R C E S N E W S L E T T E R
New Comers
James Campbell Joy Rebustes Nicholas Miele Derek Finocchiaro Derrick Sheppard Rajshaud Morris Lamar Hopson Nicole Gonzalez Luis Ocampo
Production Supervisor Product Manager VP HR GS Culinary Relations Manager Forklift Operator Forklift Operator Forklift Operator Customer Service Associate VP of Operations
All-Clad GS USA Parsippany GS USA Parsippany GS USA Parsippany GS USA Milville GS USA Milville GS USA Milville Imusa Doral GS USA Parsippany
Work anniversaries
5
10
years
Gabriel Cramer Lisette Rios Feryal Rehman Ana Toro
15 25
Joseph Sayre Canonsburg Nilsa Galan GS USA Milville
years
20 years
GS USA Milville GS USA Milville GS USA Parsippany GS USA Parsippany
Andrea Weier GS USA Parsippany
years
Heidi Mariak GS USA Parsippany
Melvin Hatfield Canonsburg
years
N E W S L E T T E R Second edition / Q1 / Groupe SEB USA