International SG Confectionery Business Summit is a great success

The 7th International SG Sweets Business Forum, held in the Hotel Marriott, Berlin, broke all records - as Chairman of the SG board Dr Udo Gyllensvärd was proud to announce in his welcoming speech. Over 400 participants gathered in Berlin for the event, 40 of them from 11 different countries abroad and another 40 representing the retail trade.


"A great success," said Dr Gyllensvärd, who reminded his audience that 180 visitors attended the very first Forum, held in Cologne in 2000. Dr Gyllensvärd said he was particularly grateful to the main sponsor of the Forum, SAP, as well as to all other sponsors, without whose support and commitment " an event on this scale" would not have been possible.


First European-Russian/CIS SG Confectionery Summit in Moscow 2007


SG Chairman Dr Gyllensvärd emphasised that the internationalisation of the association s work was continuing. Next year, for instance, will see the first European-Russian/CIS SG Confectionery Summit in Moscow. Scheduled for September 19th - 22nd 2007, approximately 200 attendees are expected, including about 70 decision-makers from Western Europe, said Dr Gyllensvärd. The 8th International SG Sweets Business Forum will take place November 21st - 23rd 2007, once again in Berlin.


Attendees were very impressed by the scope of the supporting programme. Bracketed by internationally renowned market and retail expert Dr Erich Joachimsthaler, founder and CEO of Vivaldi Partners - who run offices in New York, London, Amsterdam, Hamburg and Munich - and Dr David Bosshart, CEO of the Gottlieb Duttweiler Institute, Switzerland, high calibre speakers examined the key issues brand management, packaging, global food trends and changes in behaviour.


Jürgen Bihler of Pro Carton and Dr Otto Maran of the market research institute facit presented the very latest confectionery packaging study. Dagmar Nedball and Rainer Engler of the WILD Gruppe, Heidelberg, examined future global food megatrends. Peter Loosen, who represents the food law and science association BLL in Brussels, reported on the progress made with regard to EU health claim legislation and nutritional profiles.


The challenges faced by European retailing from the point of view of investors and banks were revealed by Jürgen Elfers, of the Commerzbank, in an authoritative talk backed up with the latest data. The discount boom, which originated in Germany, has not yet reached its zenith. According to Jürgen Elfers, the discount share of the food retail market - currently 40% - will rise further. In neighbouring European countries discounters are just beginning to make their mark. He cited the examples of Carrefour and Auchan, French retail concerns which have both rolled out a new smaller store discount format.


Impressive: Lindt and Ferrero executives


Just as impressive as the market experts and visionaries were the two "practitioners" who spoke at the SG Forum. Their speeches were every bit as eloquent, the insights and interpretations as fascinating, their openness as pronounced. Dr Adalbert Lechner, CEO of Lindt & Sprüngli Germany, outlined the history of the concern and its importance in building up the credibility of the Lindt brand and securing consumer loyalty, generation after generation, ever since Sprüngli founded the firm in 1845. Thanks to excellent quality, a hugely successful TV campaign and a remarkably high rate of innovation Lindt is a harbinger of trends . The concern is today the uncontested premium segment leader in the German retail trade.


Harm Humburg, head of distribution at Ferrero Germany, dazzled his audience with a brilliant talk seasoned with tremendous wit and verve. He received warm applause when he appealed to everyone in the confectionery branch to pull together - regardless of competition - in order to keep confectionery and the confectionery shelves at the POS "alive" in the eyes of the consumer. "You all have a good future ahead of you - if only you do the right thing. Let s raise growth potential together!" exclaimed Humburg.


In an increasingly saturated market environment swamped by products hardly distinguishable from each other, it was becoming more and more difficult for innovations to be a success. In the light of this, the typical ways of making a product stand out - driven from "inside" - were no longer an effective response to the competition experienced today. In future, companies will have to focus on managing brands from "outside", taking the consumer point of view more into consideration. Dr Joachimsthaler stated that at the beginning of the Forum.


Key note speaker Dr Peter Kruse addressed this issue in more detail. He analysed the effects of today s incredible rate of acceleration on people living in a modern world and the high density of networks spanning the globe. Both factors contribute towards increasing complexity. This form of complexity can only be successfully encountered with a combination of networking, cooperation and absolute clarity.


The presentation of the exclusive SG study "Sweets Challenge 2008" by Dr Peter Kruse was a further highlight of the Forum. nextpractice , founded and headed by Dr Kruse, conducted in-depth interviews to find out about moral concepts, values and ideals. The people surveyed were also asked about various confectionery segments and brands. The results were electrifying.


Marketing experts must develop understanding for consumers which goes beyond anticipating obvious and articulated needs. Their focus must come to rest on the consumer’s everyday life, said Dr Joachimsthaler. Brands and products in themselves are only of limited significance to the consumer. Much more important is the effect they have on the relevant aims of the individual consumer. Sustainable, profitable growth can only be achieved if a brand succeeds in occupying a permanent place in the life of a consumer; this will depend on using the "outside in" perspective to steer innovation.