What challenge(s) do our clients face?

The food industry is characterized by variation, and different factors have to be considered depending on which categories, channels, and geographies you play in

The food industry is so heterogeneous by nature, it is almost too simplistic to refer to it as one industry – characterized by a huge number of categories and consumption habits, which vary widely across and even within individual markets. On top of this highly variable foundation, food products are sold through a multitude of channels, with different length value chains occupied by players ranging from international conglomerates to neighborhood producers. The complexity generated by the almost infinite number of scenarios means that in any case, a player needs to understand their competitive environment in-depth in order to find and sustain success, considering the challenges that are native to different products or channels:

DIFFERENT SUCCESS FACTORS TO CONSIDER LOW-DIFFERENTIATION, TRADITIONAL LAYOUT: Raw and lightly industrialized products are often sold through food establishments and retailers that can rely on a traditional layout and historical consumer dynamic. These products tend to be highly elastic, low margin, and depend on Cost-to-Serve efficiency to reach competitive price. CUSTOMER INTERACTION-DEPENDENT INNOVATIONS: Innovative trends such as plant-based, FODMAP, gluten free or THC/CBD products rep-resent health claims-based revolutions within the food industry. Trend management and agile interaction with the consumer are key to secur-ing high margins and consistent demand. VALUE-PER-KILOGRAM In-store execution is a key success factor for differentiated products. However, maintaining such a service level is usually a challenge for low Value-Per-Kilo products, which are simulta-neously heavily dependent on logistics costs and economies of scale to sustain a positive margin. For higher value products, differentiat-ed or not, quality claims and in-store experience are more critical. MAINTAINING SANITARY STANDARDS For refrigerated or frozen products, storage requirements can drive the entire strategy - reducing potential logistics partners and driv-ing up cost, and for the former, a short shelf-life inhibits multiple-link distribution chains. Such categories require in-store activa-tion excellence to drive high shelf rotation. BALANCING CHANNELS AND DISTRIBUTION While some products have clear priority chan-nels, other food categories are almost ubiqui-tous, appearing not only in supermarkets but in pharmacies, sports centers, entertainment cen-ters, and a whole range of other purchase points. Suppliers need to manage a complex market segmentation to prioritize appropriately, and guarantee service level expectations are met. LONGER CHAINS, DIFFERENT NEEDS Where a product can have additional val-ue-adding steps, as we see in foodservice channels, shopper behavior and success driv-ers can differ wildly within a category between retail and foodservice. Defining a balance to strike to achieve success in both channels is a challenge we see across many industries.
DIFFERENT SUCCESS FACTORS TO CONSIDER LOW-DIFFERENTIATION, TRADICIONAL LAYOUT: Raw and lightly industrialized products are often sold through food establishments and retailers that can rely on a traditional layout and historical consumer dynamic. These products tend to be highly elastic, low margin, and depend on Cost-to-Serve efficiency to reach competitive price. CUSTOMER INTERACTION-DEPENDENT INNOVATIONS: Innovative trends such as plant-based, FODMAP, gluten free or THC/CBD products represent health claims-based revolutions within the food industry. Trend management and agile interaction with the consumer are key to securing high margins and consistent demand. VALUE-PER-KILOGRAM In-store execution is a key success factor for dif-ferentiated products. However, maintaining such a service level is usually a challenge for low Val-ue-Per-Kilo products, which are simultaneously heavily dependent on logistics costs and econo-mies of scale to sustain a positive margin. For higher value products, differentiated or not, quality claims and in-store experience are more critical. MAINTAINING SANITARY STANDARDS For refrigerated or frozen products, storage requirements can drive the entire strategy - reducing potential logistics partners and driving up cost, and for the former, a short shelf-life inhibits multiple-link distribution chains. Such categories require in-store activation excellence to drive high shelf rotation. BALANCING CHANNELS AND DISTRIBUTION While some products have clear priority channels, other food categories are almost ubiquitous, ap-pearing not only in supermarkets but in pharma-cies, sports centers, entertainment centers, and a whole range of other purchase points. Suppliers need to manage a complex market segmentation to prioritize appropriately, and guarantee service level expectations are met. LONGER CHAINS, DIFFERENT NEEDS Where a product can have additional value-add-ing steps, as we see in foodservice channels, shopper behavior and success drivers can differ wildly within a category between retail and food-service. Defining a balance to strike to achieve success in both channels is a challenge we see across many industries.

How do we help?

Our experience across the entire value chain combined with your knowledge of your business enables us to support challenges of every combination and context

Integration’s greatest support to our clients often comes from helping you to understand your own unique situation in-depth and identify which success factors are at play, considering the characteristics of your particular combination of categories, channels, and geographies.

We have a solid track record of supporting food manufacturers with projects delivered in more than 20 countries in the Americas, Europe, Asia, and the Middle East, on local, regional, and global levels. From our hands-on approach, we have developed experience in understanding how cultural and socio-economic factors influence consumption behaviors from one place to another – helping us support our clients to understand the different variables that may be driving consumer behavior. Likewise, having worked across the entire ecosystem of players from farm to plate, we know the different challenges that are typically faced along the value chain and can bring a variety of perspectives to develop solutions that work, whatever angle you view them from.

Clients

We have worked with clients in different categories, geographies and positions along the value chain:

WATCH TESTIMONIAL

In this video, a range of clients from the Food sector talk about their positive experience working with Integration.


Food: What our Clients Say Food: What our Clients Say

SUCCESS STORIES

CHALLENGE

Our client, a Brazilian multinational protein producer, was facing regulatory changes in its leading international market. These changes would result in sudden exportation restrictions, and the business needed to reorganize accordingly. Integration was asked to support the identification and implementation of cost reduction opportunities, through process standardization and efficiency gains.

APPROACH

Our approach was to map the organizational structure and processes across decentralized operations, including factories, warehouses, and sales back-office, identify standardization opportunities, and redesign according to the client’s adjusted needs. Beyond the initial project scope, we worked together with the client to define a complete implementation plan aligned with a factories layoff roadmap, which was being developed simultaneously.

RESULT

The project enabled the capture of ~USD$45 million in structure reduction opportunities and ~USD$15 million cost reduction in remuneration policy homogenization.

CHALLENGE

A Brazilian biscuit and cookies manufacturer needed to re-evaluate their production and logistic footprint, having revised their Go-to-Market strategy and opened a new factory. In this new context, in which the balance between direct and indirect channels had been impacted, the organization sought Integration’s help to optimize their production and logistical strategy.

APPROACH

We approached the project in a holistic way, analyzing the end to end costs (raw material, transportation, storage, production, distribution, end customer, taxes) and leveraging our cross-area knowledge to involve and engage people from the whole company, from procurement to customer service. From mapping the value chain and understanding the as-is costs, we used the 5-year forecast to simulate multiple investment scenarios to optimize operating costs at different levels of risk. Throughout the project, we actively considered sustainability, analyzing the impact of all strategic choices on carbon footprint.

RESULT

We built clear action plans with the client which delivered up to 5% of accumulated cost savings over the next 5 years, supported by a detailed implementation roadmap covering production footprint, distribution and GTM expansion.

CHALLENGE

A food start-up created exclusively for the development of a plant-based hamburger sought our support to define if and how to launch, in a country in which this category did not exist.

APPROACH

Our first step was to understand how this new market would evolve, based on international references and consumer surveys.  Through identifying the target consumer segment, substitutes, and categories with potential synergies and cross-activation, we could simulate growth and build a robust business case for a “go” decision. Following this, we worked with the client to define the complete entry strategy, including the phasing plan per region and channel. We simulated topline projections per client, defined a client top priority list, and a complete financial simulation, including the marketing budget.

RESULT

The client is currently on track with the most aggressive growth scenario simulated. A year after this project, Integration was invited back to the client to support prioritizing further markets and defining entry models.

TALK TO US

Alice Maschera

Alice Maschera is a manager within Integration's UK operation. Alice is a specialist in the field of Marketing and Sales having supported numerous Consumer Goods and Retail companies in their market entry and commercial strategy. A graduate from the University of Cambridge, Alice is well-rounded and experienced across many of Integration's methodologies and service areas.

André Valente

André is a director at Integration and leader within the Marketing & Sales practice. Working across sectors, he is a senior specialist advising especially on the revision of Go-to-Market Models, Market Entry Strategy to new markets, Strategy and Innovation Processes and Marketing and Trade Processes. Before Integration, André worked as a Business Developer at Sandvik, [...]

Carlos Lima

Carlos is the President of Integration and a Founding Partner. Carlos has worked with leading international companies across the globe as a consultant for the last 30 years and has developed a particular specialization in Marketing and Sales. He is considered an expert in the Consumer Goods sector and on the topics of Commercial and [...]

Daniel Rodrigues

Daniel is a Director within our Marketing & Sales practice and leader of Integration’s TechLab. Over the course of over 10 years with Integration, Daniel has helped clients from diverse industries and countries with digital and commercial challenges ranging from Go-to-Market Strategy to Commercial Due Diligence. Through his extensive business experience Daniel ensures that our [...]

Gary Singer

Gary Singer is a Managing Partner at Integration. He brings more than 25 years of experience helping companies in diverse industries improve top- and bottom-line results through new Sales and Marketing Strategies. Gary holds an MBA in Marketing & Statistics from the University of Chicago and a bachelor's degree in Quantitative Business Analysis from Pennsylvania [...]

Guido Solari

Guido is the leader of our Buenos Aires and Santiago office and is a director within our Marketing & Sales practice. Having worked with Integration since 2006, he has completed a wealth of projects across Latin America, the United States, Canada and Europe with clients spanning many sectors, including Retail, Consumer Goods, Government, Healthcare and [...]

Hugo Ribeiro

Hugo is a Founding Partner at Integration and can count on more than 30 years of experience in consulting. Hugo, who holds a post-graduate degree in Business Administration from Harvard University, is a senior specialist in the area of Finance & Management and frequently leads projects in Organizational Structure, Strategic Planning, M&A, Improvement of Productivity, [...]

Ian Matiussi

Ian joined Integration in 2010 and now with over a decade of experience, he is a Manager in our Marketing & Sales practice. Comfortable with a wide range of topics in this area, he is especially known for his expertise in strategic marketing initiatives such as Market Scans, Go-to-Market and Commercial Policy. His track record includes sectors [...]

João Barros

João is a partner at Integration and has been working since 2006 in our Supply Chain practice. During this period, he been instrumental to the practice's development in Integration's 7 offices around the world, contributing directly to its numerous awards in Brazil. He has led, and continues to lead on numerous projects in Planning, Distribution, [...]

João Vilela

Since 2009 João Paulo has been working in our Supply Chain practice. During this extensive period, João Paulo has led projects across numerous continents and in several sectors and areas of Supply Chain. He has worked on challenges such as Logistics Network Design, Transport Efficiency, S&OP, Order-to-cash, Stock Management and Supply Modelling.

Jorge Gomes

Jorge is a highly experienced professional in our Finance & Management practice having joined Integration in 2008. Jorge has travelled to countries around the world in support of our clients, leading projects related to revenue management, strategic planning, M&A and more. He has a well-rounded experience having completed multiple projects for clients across sectors including [...]

Lucas Tavolaro

Lucas joined Integration in 2011 and found his home in our Finance & Management practice. He has supported our clients in the creation Strategic Roadmaps, M&A synergy evaluations, Go-to-Market strategies, Cost Efficiency and Strategic Sourcing projects. His experience includes sectors such as Consumer Goods, Construction & Property Development, Education, Private Equity, Oil & Gas, and [...]

Luis Bernal

Luis is a Manager in the Marketing & Sales practice. Originally from Columbia, Luis is an entrepreneur at heart, and has worked in several start-ups in Colombia, receiving his MBA from IPADE. He has accumulated international consulting experience whilst working across the United States, Mexico, Caribbean and Central America, Colombia and Brazil in industries such [...]

Luis C Vidal

Luis is a Managing Partner at Integration where, since 1999, he has been working in the Supply Chain practice. During this period, he has led projects in the most diverse sectors and in themes such as Logistic Optimizations, Process Efficiency, Planning (S&OP), Industrial Strategy, Go-to-Market Strategy and Distribution Structure. His international experience encompasses the opening [...]

Matt Suggett

Matt Suggett is a Director at Integration, with significant consulting experience in projects such as Commercial Strategy, Market Entry Strategy, Pre- and Post- Deal M&A, and Organizational Redesign. He has supported clients in industries ranging from Consumer Goods and Healthcare to Metals & Mining across four continents. He holds a master's degree in Management from [...]

Ricardo Bello

Ricardo joined Integration in 2018 having worked in leadership positions within Logistics, Planning and Sales at Ambev and with investment management at Pátria. A senior manger in our Marketing & Sales practice, he has experience scoping, managing and implementing projects mainly related to topline growth, such as Go-to-Market models, Entry Strategy, Market Scan and Strategic [...]

Rodrigo Pasianotto

Rodrigo Pasianotto is a Director at Integration, with more than 15 years of consulting experience, especially in the field of Marketing and Sales Consulting. Rodrigo has supported our clients across a range of challenges focusing on Strategic Roadmap, Go-To-Market, Market Scan, Entry Strategy, Brand Positioning, among other methodologies. He holds an MBA from Haas School [...]

Roger Saltiel

Roger is a partner at Integration and has been working since 2002 in the Marketing & Sales practice. Considered an authority in the Indirect Channel and Partner Relationship Management (PRM), he is a member of the Associação Brasileira de Atacadistas e Distribuidores (ABAD) [Brazilian Association of Wholesalers and Distributors], working in the leadership of the [...]

Thomaz Fittipaldi

Since 2009 Thomaz has worked in our Supply Chain practice, leading on many projects with international scope in several countries around Latin America and Europe. He has built solid experience in multiple methodologies including Integrated Planning (S&OP), Logistic Network Redesign and Operational Efficiency, working with clients across sectors, but in particular Agribusiness.

Vinicius Olivo

Vinicius brings a broad and deep understanding of our Marketing & Sales solutions having joined Integration in 2011. He supported leading national and international organizations in Retail and Consumer Goods in building sustainable competitive advantage. His project experience ranges from Go-to-Market models, Market Scans, Customer Segmentation, Category Management and Perfect Store design.