ConAgra Foods, Inc. from the Trenches of Emerging Markets
Reaching sustainable global growth is no easy feat. ConAgra Foods, Inc. has some traction in markets where it had a legacy of business through an American military presence, and its Director of Emerging Markets Paul Hardy, believes that the company is in a good place take advantage of its expertise in making high quality food products and delivering them at the lowest possible cost to its target consumers. Here, Hardy digs deep into his experiences from the front lines of these new markets.
How did you get involved in emerging markets?
Hardy: I started my career at ConAgra Foods, Inc. in the supply chain organization. From my first stint there I went on to gain more experiences in the field of S&OP as well as deeper insights into building a decision-making framework. At that point I had been focused on finding, tracking and serving up the necessary data to make good business decisions. Eventually, I started to want to make some of those decisions rather than just facilitate the process. That is when I made the jump to a private equity group to get P&L ownership experience and later joined a boutique consulting firm where the results of the business rested squarely on our delivery to our clientele. Then, I got the call from ConAgra Foods, Inc. to come back and own a very small P&L in Europe and Africa. From there my responsibilities have grown and I am now tasked with delivering aggressive growth plans in emerging markets. I am right where I want to be!
What is the company’s current position in emerging markets?
Hardy: ConAgra Foods, Inc. has some traction in markets where we had a legacy of business through an American military presence or a strong affinity for American grocery products. With the slow growth of U.S. domestic packaged food categories, we are in a good place to take advantage of our expertise in making high quality food products and delivering them at the lowest possible cost to our target consumers.
Which regions have the highest growth potential for ConAgra Foods, Inc.?
Hardy: Southeast Asia is seeing a surge in the spending power of lower-middle class. Specifically, the Philippines is experiencing a boom in the Convenience Stores Channel and we are positioning our portfolio to perform in this highly competitive environment. Traditionally, our products have found strength in the center of the supermarket but we recognize the opportunity to be in spaces where the next generation of consumers is shopping.
Where has ConAgra Foods, Inc. been most successful?
Hardy: We have experienced the most success in the Philippines with our Swiss Miss hot cocoa business. The Philippines has been exposed to U.S. packaged foods for decades and we had a legacy of brand awareness. We had limited modern trade distribution of a differentiated product with a “right to win” and a fast growing middle class.
As a global company, how do you approach regional differences in technology?
Hardy: We approach technology investments in emerging markets on a case-by-case basis. I believe in people, process and tools — in that order. I am a lover of technology and will continue to be a proponent of getting the right tools embedded into our organization; however, I won’t start prescribing systems until I have the right people defining the way we run our business every day. At that point you know what you could do better: “If I only had something that could do X”, and that is when technology helps us to river jump and do more with less and apply our knowledge in a more powerful and precise manner.
What are some important best practices for global growth?
Hardy: Testing small and a commitment to harvesting data to support your hypotheses allows you to learn and communicate your findings in a clear and influential way. You should also come in with more than one hypothesis and test in parallel wherever possible (don’t put all your eggs in one basket). The key is to develop firsthand knowledge of best practices and trading tactics with retailers, agencies and vendors, local regulatory/government officials and ultimately with your target consumer in each market.
How did you get involved in emerging markets?
Hardy: I started my career at ConAgra Foods, Inc. in the supply chain organization. From my first stint there I went on to gain more experiences in the field of S&OP as well as deeper insights into building a decision-making framework. At that point I had been focused on finding, tracking and serving up the necessary data to make good business decisions. Eventually, I started to want to make some of those decisions rather than just facilitate the process. That is when I made the jump to a private equity group to get P&L ownership experience and later joined a boutique consulting firm where the results of the business rested squarely on our delivery to our clientele. Then, I got the call from ConAgra Foods, Inc. to come back and own a very small P&L in Europe and Africa. From there my responsibilities have grown and I am now tasked with delivering aggressive growth plans in emerging markets. I am right where I want to be!
What is the company’s current position in emerging markets?Hardy: ConAgra Foods, Inc. has some traction in markets where we had a legacy of business through an American military presence or a strong affinity for American grocery products. With the slow growth of U.S. domestic packaged food categories, we are in a good place to take advantage of our expertise in making high quality food products and delivering them at the lowest possible cost to our target consumers.
Which regions have the highest growth potential for ConAgra Foods, Inc.?
Hardy: Southeast Asia is seeing a surge in the spending power of lower-middle class. Specifically, the Philippines is experiencing a boom in the Convenience Stores Channel and we are positioning our portfolio to perform in this highly competitive environment. Traditionally, our products have found strength in the center of the supermarket but we recognize the opportunity to be in spaces where the next generation of consumers is shopping.
Where has ConAgra Foods, Inc. been most successful?
Hardy: We have experienced the most success in the Philippines with our Swiss Miss hot cocoa business. The Philippines has been exposed to U.S. packaged foods for decades and we had a legacy of brand awareness. We had limited modern trade distribution of a differentiated product with a “right to win” and a fast growing middle class.
As a global company, how do you approach regional differences in technology?
Hardy: We approach technology investments in emerging markets on a case-by-case basis. I believe in people, process and tools — in that order. I am a lover of technology and will continue to be a proponent of getting the right tools embedded into our organization; however, I won’t start prescribing systems until I have the right people defining the way we run our business every day. At that point you know what you could do better: “If I only had something that could do X”, and that is when technology helps us to river jump and do more with less and apply our knowledge in a more powerful and precise manner.
What are some important best practices for global growth?
Hardy: Testing small and a commitment to harvesting data to support your hypotheses allows you to learn and communicate your findings in a clear and influential way. You should also come in with more than one hypothesis and test in parallel wherever possible (don’t put all your eggs in one basket). The key is to develop firsthand knowledge of best practices and trading tactics with retailers, agencies and vendors, local regulatory/government officials and ultimately with your target consumer in each market.