Vandemoortele, a Belgian baking company rapidly expanding in the US, is using TrueCommerce integration with QuickBooks Online to build strong relations with major food grocers and optimize its supply chain
Vandemoortele may be new to the United States, but the company’s history goes all the way back to 1899 in Izegem, Belgium. Originally a baking oil refinery, Vandemoortele expanded into dough and pastry products in the 1960s, and in 1978, began making frozen bakery products. Already selling across Europe, Vandemoortele entered the US market in 2017.
“We work with retail and food service brands,” said Vandemoortele’s Vice President of Operations and Finance for the US, Brendan McGinn. “We import frozen baker products, primarily croissants, donuts and maple pecans from France and Belgium.”
The company chose QuickBooks Online for their US accounting system. QuickBook’s web-based platform and user-friendly interface made it an ideal choice. “QuickBooks is a great place to start and such a super easy website to use,” commented Mr McGinn. “Give it a week, and you have it down pat.”
Knowing it wanted to expand to work with larger retail grocers, Vandermoortele realized the next step was to invest in EDI – a must-have requirement to do business with major chains. “We looked into getting EDI because the clients we hope to work with all use EDI,” explained Mr McGinn. The company already trades directly with BJs, as well as a number of restaurants and cafes. “The goal is to increase our presence,” said Mr McGinn.
Starting from ‘Base Zero’
To help with its search for an EDI provider, Vandemoortele chose to work with an accountancy firm, who quickly introduced it to TrueCommerce. Mr McGinn commented: “They said - these are the guys we like to work with. TrueCommerce has a good reputation.”
Still, Mr McGinn was apprehensive of getting started with an entirely new way of trading with retailers. He recalled: “My initial thought was, this looks like it’s complicated as heck. I’d never used EDI before, and neither had my partner. We were coming from base zero.”
TrueCommerce was able to quickly put Mr McGinn and his team at ease. “Having an Implementation Specialist on board, walking me through step-by-step was a really big help,” said Mr McGinn. He went on: “He went above expectations, making it easy for us to navigate the website.”
A web-based platform with expert support
One of the major selling points for QuickBooks is its online platform, which can be accessed and managed remotely. Likewise, TrueCommerce’s innovative Foundry Platform, of which EDI is a part, features a cloud-based architecture. For Vandemoortele, especially today, this is a huge benefit.
“I can manage TrueCommerce EDI for QuickBooks from anywhere,” Mr McGinn said. “I can be at home, I can be in my office, I can be on vacation. The efficiency of it is great.”
TrueCommerce’s best feature, Mr McGinn felt, is its people. “I think TrueCommerce’s biggest selling point is the customer service. That’s what sets it apart, especially for someone like me, who’s coming from a very basic level of knowledge.”
True Commerce’s Managed Service approach combines technical expertise and QuickBooks-specific experience with a solid support infrastructure, to give Vandemoortele the tools it needs to succeed. “I’m not an expert, but I’m getting there,” said Mr McGinn. “It’s definitely helpful to know there’s someone there—that I can pick up the phone or send an email and ask for help.”
Looking toward the future
As Vandemoortele continues to grow its US footprint, it knows integrated EDI for QuickBooks Online will play a critical role in creating relationships with top retailers. “We’re still in the early stages, but so far so good,” clarified Mr McGinn. “We’re using TrueCommerce EDI with one wholesaler right now. We plan to have more clients and customers use it as well.”
To Vandemoortele, TrueCommerce is an ideal partner to help drive that growth. “TrueCommerce is professional, easy to work with, and has very good customer service,” noted Mr McGinn. As for other food and beverage companies, he had this to say. “I would absolutely recommend TrueCommerce. One hundred per cent.”
www.truecommerce.com
Covid-19 has played havoc with the 2020-21 film schedule and thrown into disarray the carefully plotted alignment between movie release dates and sales of licensed goods. Marty Brochstein takes a look at the market
When Target CEO Brian Cornell said during the company’s 2nd quarter analyst call that it’s “difficult right now to forecast beyond a couple of weeks at a time,” he might well have been painting a picture of the film release schedule for the next year and a half or more.
And when his Target COO John Mulligan said during the same call that “mostly this is about conversations (with vendors) and then having the agility and flexibility” to make changes because everything is “moving very rapidly,” he gave a cogent description of ongoing discussions among studios, licensees and retailers, and how each of those parties has a vested interest in finding a way to adapt to changed circumstances.
The film schedule is being upended and readjusted for two primary reasons: the shuttering of movie theaters for months at a time in most parts of the US, particularly in New York and California; and the pandemic-driven interruption of film production around the world. The theater closures are a near-term factor that affects the studios and their partners today, while the production halt is forcing filmmakers, licensees and potential retail and promotional allies to rejigger their long-term planning.
In normal times, licensed merchandise based on “tentpole” films plays a key role on a variety of levels. Of course, each of the stakeholders appreciate the revenue the business generates. In 2019, the Entertainment/Character sector (of which films are a major part), accounted for 44 per cent of the global $292.8B global licensing business, or $128.4B, according to Licensing International’s Annual Global Licensing Industry Study. (In the US, which has a much more diffuse licensing industry than any other country, the Entertainment/character segment accounted for 31 per cent of the overall industry, or $49.3B.)
Beyond the revenue the business generates, the studios know the value of an instore or online merchandise display in promoting the film itself. The merchandise supplier values the ability to offer its retail customers potentially hot-selling SKUs, proving itself as a key vendor. And retailers want to take advantage of the marketing dollars that a studio puts behind a major project to draw traffic to the store or site – particularly if it’s able to negotiate for exclusive items.
But the pandemic upset the apple cart. For example, items tied to Wonder Woman 1984 moved onto retail shelves in late summer - in line with its scheduled August release - before the film shifted for a fourth time this year to Dec. 25 in the U.S. – and licensees have been faced with the hard decision of warehousing product or shipping it to retail without the backing of the film’s marketing muscle.
It’s not just consumer product licensees. Dairy Queen was promoting a Wonder Woman 1984 cookie collision Blizzard drink this summer as the film’s release bounced from June 5 to Aug. 14 and Oct. 2 before landing on Christmas Day. Not exactly a hot time to sell a cold drink.
“We had little choice but to ship the [Wonder Woman 1984] product because it had been designed, made and packaged and shipped to retailers [and] it was too late to pull anything back,” says McFarlane Toys CEO Todd McFarlane. “Retailers made a commitment on a purchase order and shelf space and without the products, those shelves might be bare.”
Licensees have been adapting their strategies as release dates and platforms shift. In the spring and early summer, films such as Scoob and Trolls slid from planned theatrical showings to streaming and VOD platforms - cinemas were shuttered around the world - but late enough in the process so that retailers who carried the goods were able to take advantage of theater-like marketing efforts.
The experience with Disney’s Mulan was more complex. In many parts of the world, Disney launched the film in September as a “premium” streaming event on Disney Plus – charging, for example, $29.95 in the US, less than a family might have spent to see it in a theater. In China and some other countries, it went into theaters. Merchandise tied to the film was in US stores as early as spring in advance of the originally planned premier.
The experience with Scoob, Trolls and Mulan also raises the issue of whether feature films that play only on streaming platforms can support a full-fledged licensed merchandise program at retail. So far, the biggest streaming-based licensing success stories have been for a pair of more traditional episodic TV series – ‘Stranger Things’ on Netflix, and the Star Wars offshoot ‘The Mandalorian’ on Disney Plus. Stakeholders on all sides of the licensing equation are keeping a close eye on how that question is answered.
Conversations with licensing executives reveal a general willingness on both sides of the contractual equation to deal with the fluidity of the movie market, relying on the realization that these are special times and that even once things go back to ‘normal,’ long term business relationships need to be fostered.
As the industry works its way through the rest of 2020, and toward a radically recast 2021 and beyond, those relationships will come increasingly into play.
Licensing International
Marty Brochstein is the resident brand and licensing expert and head of industry relations at Licensing International. Licensing International is the leading trade organization for the global licensing industry, working to foster the growth and expansion of brand licensing around the world, raise the level of professionalism for licensing practitioners, and create greater awareness of the benefits of licensing to the business community at large. Founded in 1985, Licensing International boasts members in over 40 countries.
https://licensinginternational.org
FMCG challengers in Covid times: forget about the product, brand is key. By Mike Foster
Being a new entrant to the FMCG arena is a challenge at the best of times. So, when arguably the worst of times hit with the advent of Covid-19, the rate of change within the sector left many niche brands struggling to keep up. Challenger brands felt the immediate impact keenly. Keeping supply lines open was difficult, and there was markedly less room on the shelf as grocery stores were simplifying their lines.
Consumers turned to old favorites, comfort food and familiar products (the likes of Kraft Heinz, for example, saw a welcome boost to Q1 sales due to stockpiling). The big CPGs were able to handle the seismic changes better. If you were a challenger brand with an existing DTC model, you were in a better position, but many new entrants had to press the pause button, waiting for the storm to pass.
However, as it becomes evident that lockdown measures and restrictions are here to stay – and the next six months look just as uncertain as the past – niche FMCG brands need to un-pause and respond to the new world.
They need to be analyzing and embracing consumers’ new habits – the shift to in-home, the wariness, the sensitivity to hygiene, interest in immune-boosters, the search for comfort. If they’re not doing so already, challenger brands need to
start figuring out how these behavioral changes will affect their market and – most importantly – how they can connect with people through this crisis.
They also need to analyze and anticipate what habits will emerge from lockdown, and how they can prepare their business for them. With the rolling changes imposed by the pandemic, marketing will have to be more flexible than it has ever been.
Strength in agility
The good news is, that challenger brands are by nature nimble, with an agile mindset that suits this ever-rolling change of parameters. They can adapt and pivot and seize an opportunity when they spot it. For example, when the pandemic hit, the newly launched Pop Up Grocer accelerated its tentative ecommerce plans and launched The Pop Up Grocer Box to carry on getting its product to customers. Tequila start-up brand YaVe, meanwhile, told AdWeek that bars closing due to quarantine was a ‘blessing in disguise’ as it led them to put more effort into ecommerce, partnerships and community building. In the UK, Mighty Small launched as an online ‘supermarket of small brands’ to boost independent and niche producers.
Another advantage that challenger brands have over their big CPG competitors is their ability to connect with consumers. Multinational brands are big, with a less tight focus. Niche brands can be sharper and more granular when connecting to potential customers, so they are now in a great position to steal some mindshare, to make sure they are front-of-mind among consumers.
From product-first to brand-led
To secure some of the mindshare that is up for grabs, communication needs to focus on core values and brand. The current environment is not about short-term gain, a product-led approach, but about brand-first marketing. It is about developing and responding to robust insight and emotionally connecting with consumers, not selling to them.
Naked Wines, for example, saw demand for its DTC wine delivery service increase during the initial lockdown, but the brand also realized the importance of focusing on and supporting its community. Understanding that many of its customers felt increasingly isolated, it launched ‘Thirsty Toosday’, a wine night on Zoom to allow people to connect.
Soda brand Bimble Beverages meanwhile, donated money towards therapy time during May Mental Health Awareness Month for its customers that suffered most mental stress during the lockdown.
Shifting from product-led to brand-first is undoubtedly a slower process, and potentially goes against the challenger brand instinct. However, even though it is a slower burn, and the acquisition cost per consumer might increase, the focus on building a perfect platform for engagement will lay the foundation for success in the long term.
Every touchpoint counts
Another key component of navigating the Covid challenge is using every touchpoint. FMCG brands need to proclaim their brand values on as many platforms as possible, to be omnipresent – and for challenger brands this is especially important. There are numerous ways of communication that can help them get their message across, to connect in a truly omnichannel way. Understanding the impact that Covid is having on these is crucial.
For example, according to McKinsey & Company, most categories have seen more than ten per cent growth in their online customer base during the pandemic, with many consumers planning to continue shopping online. Ecommerce is expected to continue to grow across all product categories.
But while the shift to online is obvious, in-store shopping is also adapting to new priorities. A Periscope by McKinsey report found that the importance of consumers being able to quickly and easily find what they’re looking for jumped by 14 per cent from March to June.
Embrace the physical experience
The pandemic has also seen a marked return to the local convenience store and specialist shops by those looking to avoid the queues and exposure at superstores (and remember, pre-pandemic, 81 per cent of US shoppers told a Gallup survey that they never turned to the internet for groceries). Challenger brands should therefore not forget about those smaller, physical spaces. For some brands, it might make sense to create their own outlet or collaborate with likeminded start-ups, to launch a pop-up store or experience.
In New York, Babe Wine created a socially-distanced manicure truck to bring much-missed nail care back to desperate New Yorkers for free. It proved a huge hit, with queues around the block and impressive engagement on Instagram.
The possibilities of such an omnichannel approach are more complex and in constant flux, but they are also more exciting. Using all channels to connect and offer insight-led solutions – or even just moments of joy – to consumers is where challenger brands can stand out.
But being able to do so successfully all comes back to brand values. Having strong brand foundations, an unwavering sense and articulation of what their brand is and what it can be to consumers, enables challengers to spot those opportunities and make the most of them. It will lay the ideal groundwork for better days to come.
Straight Forward Design
Mike Foster is founder and creative director at Straight Forward Design. Since 2007, global brand design agency Straight Forward Design has been creating powerful connections between brands and people that drive growth. Successful brands must be Found, Understood, Loved and Lived. Joining the dots between insight, strategy and bold brand design, Straight Forward Design connects brands to people in full.
https://straightforward.design/
The BHMA Secure Home™ Label simplifies the process for purchasing builders’ hardware.
By Ralph Vasami
Door hardware is an essential component to any home: it requires careful thought and consideration whether it is front door hardware that will be exposed to winter’s frost and biting winds, or a bathroom door lock consistently used in a family home.
The simplest way to choose superior door hardware is to look for the label.
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BBC Studios continues its path of growth and reputation for quality
by bringing the success of Bluey to the United States.
By Staci Davidson, Knighthouse Media
Bluey, a cartoon Blue Heeler puppy, Doctor Who, Jean Valjean of Les Misérables and the contestants in Dancing With the Stars do not usually inhabit the same universes, but they all share a home at BBC Studios, known around the world for producing bold, creative and beloved content. With the introduction of Bluey to markets outside of Australia this fall, BBC Studios aims to continue its hallmark of high-quality content that audiences have come to expect.
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Changing the way sourcing and procurement works is what LogicSource is all about. Owned and operated by an experienced group of global business veterans, the company’s sourcing and procurement model is execution-based and fully transparent, so clients don’t spend money for service before seeing results.
The company has put together a suite of proven, pre-built assets to execute rapidly deployable, customized solutions that deliver immediate savings and sustainable value. These assets include its supplier ecosystem, sourcing and procurement operations centers, onsite execution teams, and OneMarket “source-to-pay” technology. LogicSource has shared service centers in Texas and Connecticut as well as people and systems on client sites around the U.S. and Canada. It works with suppliers around the globe, and its technology is utilized on an international level.
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LNL Systems listens to customers to develop retail communications systems that help stores and customers.
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Childhood learning franchise Mad Science Group Inc. engages its clients and franchisees’ artistic sides
with the new Crayola® IMAGINE ARTS ACADEMY™ concept.
By Jim Harris
After more than three decades of helping children discover the wonders of science, Montreal-based Mad Science Group Inc. – the educational franchise where kids learn about science in a hands-on fashion – has teamed up with Crayola®, the leader in art-infused education for 115 years, to launch Crayola® IMAGINE ARTS ACADEMY™, a children’s art enrichment franchise. Every program, product and service offered in Crayola® IMAGINE ARTS ACADEMY™ centers on the concept that art aids learning and reinforces key 21st century skills: creativity, critical thinking, collaboration and communication.
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