Australian Drinks Awards

DIAGEO WINS SUPPLIER OF THE YEAR

What retailers want from suppliers in 2020

Words John McLoughlin, Managing Director APAC at the Advantage Group

There is no doubt that issues arising from COVID-19 have dominated focus for suppliers this year.

However, we will eventually emerge from this situation, and as we do, we will return our attention to the issues that relate to a more normal trading environment.

Retailers provided some very clear feedback to the supplier community via the 2020 Drinks Association Advantage Engagement Survey this year on areas of focus beyond collaboration during the pandemic.

Rapid changes in shopper transaction, business models, technology and emerging new channels are making the path to high performance less clear.

Retailers are looking for trading partners who can help them manage and achieve expectations in their business today, as well as help them get ready for changing requirements tomorrow.

Here are some of the most prevalent themes from the feedback as they relate to “managing for today”, and “helping me get ready for tomorrow”. “This supplier proactively seeks to understand how we’re evolving our high-level objectives. They find a way to make it work with their business. It unlocks a lot of opportunity for both parties to have those high level, upfront conversations. Then we get into the detail and develop a strategy to get there.” – Australian liquor retailer

MANAGING FOR TODAY

1. Demonstrate partnership through understanding retailer strategies When retailers describe suppliers as “partners”, they are talking about suppliers who understand their business and who jointly build and deliver plans that demonstrate a willingness and capability to help them achieve outcomes aligned to their unique strategies.

Many liquor retailers have been actively reassessing their strategies over the last 12-18 months. Retailers believe there is an opportunity for many suppliers to improve their understanding of these changes.

Suppliers need to stay curious, seeking to understand what their customers are trying to achieve, and using that knowledge as they develop internal plans and engage through joint planning.

“Suppliers need to demonstrate thinking about the category holistically. Their attitude needs to be about playing a role for the greater good of the category. Certain suppliers have jumped on this and understand that all boats rise with the rising tide. Others are so dependent on market share, focusing only on their own brands, that they lose relevance in our growth plans.” – Australian liquor retailer

“Supplier capability with regards to utilising insights, understanding shopping decisions and anticipating future consumption is still not close to where the FMCG companies are. A challenge we have in liquor is there are a couple of big players and then it drops away quite quickly. Small to medium suppliers have to make an investment choice to get ahead of the game rather than always following.” – Australian liquor retailer

2. Execution as a driver of category growth When evaluating supplier execution, retailers will assess operational effectiveness and capability to manage brands through the lens of how this contributes to the growth of the category. It includes marketing, range management and in-store promotion, as well as reliable, efficient stock availability.

The point that retailers often feel is missed by suppliers is the importance of category growth outcomes. Retailers are, more than ever, alert to a share-shift focus, and feedback shows that there is a real opportunity for suppliers to secure a higher level of support from retailers if they employ a more category-centric approach.

Liquor is a category brimming with exciting and innovative brands. Suppliers who are able to look beyond the power and growth of individual brands, focusing first on how to grow the category through their brands, will find it easier to align their execution plans with retailers. 2. Vision grounded in insight Retailers highly value suppliers who are able to help them prepare for and navigate an uncertain future through a capability for identifying opportunity and risk from current trends.

This capability begins with the depth of understanding the current situation, and the trust retailers show in a suppliers vision will be based on the degree to which a supplier can demonstrate this understanding.

Retailer expectations of how suppliers utilise insight and knowledge to support future thinking are generally not being met. Understanding shopping and consumption drivers is a foundation skill, without which it will be difficult to partner with retailers to drive future growth.

For suppliers, it is clear that retailers are beginning to think about your engagement with them not only in managing the business for today, but also in getting ready for tomorrow.

TOP SUPPLIERS REVEALED AT 2020 AUSTRALIAN DRINKS AWARDS

The results of the 2020 Advantage Engagement Survey were used to determine the winners of the 2020 Australian Drinks Awards, which were announced during a virtual ceremony on July 30, hosted by Shelly Horton.

I want thank all of our retail partners for taking the time to provide feedback to the supplier community. While we carried out our research mid crisis this year, our retailer partners and suppliers prioritised our work in an incredibly disrupted environment to ensure we got the response we needed for our program.

And so, onto the winners….

GETTING READY FOR TOMORROW

1. Reputation and the growing impact of e-commerce At the core of reputation is an assessment by retailers about who you are as a supplier. It represents their trust in you, how reliable are you in doing what you say you will do, how closely do you align with their values, and do they believe you will be a good partner into the future.

It is the latter area that is being heavily impacted by quickly evolving changes in technology and shopper transactions.

Reputations are being built more rapidly in the emerging e-commerce arena. The recent COVID-19 crisis has turbocharged retailer investment and focus in their e-commerce platforms and digital traffic.

Partnership opportunities will develop quickly, and the pace and capability you demonstrate in this growth area will likely also have a disproportionate impact on the overall reputation of your business.

“During the crisis, every supplier came out of the woodwork to talk to us about online, and capability varied dramatically. Online will be more front of mind moving forward, and we have seen evidence of this already. If they are not already activating in this space, suppliers will struggle. Regardless of the percentage of online in their business, suppliers will have to invest.” – Australian liquor retailer

Diageo wins 2020 Supplier of the Year

DIAGEO IS CELEBRATING WINNING ITS THIRD SUPPLIER OF THE YEAR TROPHY IN FIVE YEARS AT THE DRINKS ASSOCIATION’S 2020 AUSTRALIAN DRINKS AWARDS.

The Australian Drinks Awards were live streamed this year and hosted by TV personality Shelly Horton.

Hundreds of drinks industry members watched via Zoom as four awards were handed out for Supplier of the Year, Most Improved Supplier, Category Management and Supply Chain Management.

The winners were chosen via the annual Advantage Engagement Survey. The Drinks Association has been commissioning Advantage Australia for the past decade to conduct the annual survey, which provides members with favourability ratings and qualitative retailer feedback from the off trade, on premise and wholesale channels.

“The whole team at Diageo are proud beyond measure at being named 2020 Supplier of the Year at the Australian Drinks Awards,” said Diageo Commercial Director Chris Shaw (pictured right).

“In a year that’s been like no other and that has brought challenges like none we’ve faced before, the Australian Drinks Awards are a moment of celebration and recognition of our industry when those moments are currently few and far between.

“I know how difficult the last six months have been for so many in our industry, in particularly our on-premise partners who have been so hard hit by the COVID-19 pandemic. I’m proud of how suppliers as a group have stepped up to the support the hospitality industry and it was great to see that collective industry response recognised in the awards ceremony.

“Thank you to the award organisers The Drinks Association, and the Advantage Group, which runs the Advantage Survey. If the detailed survey results are anything like last year, then I think we’ll continue to see the evolving expectations of retailers, wholesalers and the on-premise being met by ever rising standards of service from all suppliers. We’re seeing increased capabilities and greater collaboration between supplier and customer which is fantastic, and bodes well for the future of our industry.

“Thank you also to the entire team at Diageo Australia who all contributed to this result. With much change in the leadership of our commercial business units, it’s fantastic so see our new teams continuing to build upon the collaborative relationships with all our partners.”

John McLoughlin, Managing Director APAC at the Advantage Group, said the traits that most describe Diageo are focus and consistency.

“Focus because every year this business sets out to be a retailer-centric supplier that excels in engaging its partners and consistency because Diageo has been placed in the top three for this award for six of the last seven years,” he explained.

DIAGEO WINS INAUGURAL CATEGORY MANAGEMENT AWARD

Diageo also won the Category Management Award, which is new to the Australian Drinks Awards and has been introduced to inspire excellence in the sector.

It celebrates the critical competency of category management, including planning to meet category objectives, providing valuable insights, optimising category assortment and shelving.

“Category management is a key contributor to the retailer supplier interface,” said McLoughlin.

“I like to think of category management as the common language that both retailers and suppliers speak. We know from our data that the skills of building insightful category development plans are highly valued by retailers and as such this is a key driver of retailer engagement.

“We congratulate Diageo on also collecting the Category Management Award this year. Well done Diageo on again delivering excellence in retailer engagement.”

Shaw said: “I’m so proud of our category management team led by Kate Bean. Winning this new award is recognition of our intent to put the customer and the shopper at the heart of everything we do in this space. We know that the biggest opportunity for our business and for our customers’ business comes from unlocking category growth, so we go into every planning session with a shared category agenda as our focus.

“It may be Diageo’s name on the award, but it’s not our award alone. It’s shared with our customers. It’s only through our collaborative efforts to build compelling joint category strategies and plans that we drive growth for all of us, led by market and retail insights, shopping insights, and consumer understanding.

“Our significant investment in our digital capabilities means we’ve been able to adapt at pace to a fast changing retail environment that will only continue to evolve in the months and years ahead.”

Asahi celebrates winning Most Improved Supplier

DEDICATION, DETERMINATION AND HARD WORK WERE KEY TO ASAHI PREMIUM BEVERAGES WINNING MOST IMPROVED SUPPLIER AT THE 2020 AUSTRALIAN DRINKS AWARDS.

It’s been a huge six months for Asahi Premium Beverages (APB), from supporting its on-premise customers during lockdown to winning Most Improved Supplier of the Year at the 2020 Australian Drinks Awards and the recent announcement that it is combining with CUB.

But one thing has remained constant for APB: the importance of being responsive and agile as its customers’ needs rapidly evolve.

Michael Ritoli (above, right), General Manager Sales, said taking out Most Improved Supplier of the Year is proof of the outstanding performance by his team.

“It’s fair to say, our team were elated with winning this award and it’s a credit to everyone across the Asahi business who has contributed to this achievement,” said Ritoli.

“With any industry award, it’s always a combined effort; we’re incredibly lucky to have an amazing team at Asahi. Spanning across sales, marketing, supply chain and the many other support structures, we all unite in making Asahi a superb place to work.

“It’s a fantastic achievement to win the Most Improved Supplier as it recognises all the hard work our people put into providing the best service we can to our valued partners.”

Ritoli said it was the dedication, determination and hard work of the team over the last 12 months that contributed to the win. Examining the results from the 2019 Advantage Engagement Survey proved invaluable in identifying areas of improvement.

“We analysed the feedback from the previous year and put in place a strategy to address areas that we believed required us to lift our game,” he explained.

“An action plan was developed engaging all functions of the business, with many people contributing, ensuring that the feedback was actioned and we closed the gaps from the prior year.”

Winners at the 2020 Australian Drinks Awards were determined by the annual Advantage Engagement Survey.

“The purpose of the Most Improved Supplier Award is to recognise a supplier that has made significant improvements in the way it works with retailers,” said John McLoughlin (above), Managing Director APAC at the Advantage Group.

“This award recognises a supplier that has made a step change in their engagement capability. It was won by Asahi in a landslide this year, with a massive increase in its Net Favourable Score to 21 points, seven points more than the next placed supplier. This improvement has been driven by a strong intent and focus from the team to drive engagement with their retailer partners. Congratulations to Asahi!”

THE MOST IMPORTANT ATTRIBUTE FOR SUPPLIERS

Ritoli said he believes empathy is the most important attribute for suppliers to have during current restrictions and lockdowns.

“We know how difficult it has been, and will be, for our customers, particularly those in the hospitality world,” he noted. “We’ve tried to understand their most immediate challenges, which for many, as mentioned already, is cash flow and have been working closely with them to ensure they are supported through this demanding period.

“We continue to remain nimble and flexible in our approach to problem solving, identifying opportunities and putting measures in place to act quickly in a considered manner. Above all, we remain focused on our customers, ensuring they have access to our resources.

“Through the Open Arms program, for example, we’ve been busily commissioning hibernated equipment and providing cash flow solutions to those customers most in need through the help of our sales and credit teams.”

Why Treasury Wine Estates won the Supply Chain Management Award

TREASURY WINE ESTATES’ PROACTIVE PROJECT TO IMPROVE THEIR SUPPLY CHAIN ENGAGEMENTS TWO YEARS AGO HAS BEEN REWARDED, WITH THE COMPANY WINNING THE SUPPLY CHAIN MANAGEMENT AWARD AT THE 2020 AUSTRALIAN DRINKS AWARDS.

“This award is a fantastic recognition of our team’s hard work and ongoing commitment to deliver service excellence to our customers,” TWE Regional Operating Officer David Alpen said. “We have a strong focus on continuous improvement and collaboration in our supply chain, this has shown through in recent times as we have navigated the challenges of COVID-19.

“I also want to acknowledge the efforts and support from our customers and valued partners who have worked closely with us throughout the year.”

“The purpose of the Supply Chain Management Award is to recognise the supply chain community and in 2020 and during the COVID crisis, no discipline has been more important than supply chain,” added John McLoughlin (above), Managing Director APAC at the Advantage Group.

“The focus for the award is on driving partnership behaviours that ultimately will improve availability. In the last few months collaboration has been the critical ingredient in navigating through the crisis and supply chain teams have been at the epicentre of that.

“Congratulations to TWE on winning the Supply Chain Management award.”

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