All posts by Norman Cescut

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An agreement to boost Lebanon HoReCa business

Among the exhibitions and trade shows we attended to during these first months of 2011, Beirut’s HORECA 2011 was the most surprising.

Despite the turmoil hitting the region, HORECA 2011 welcomed its many visitors – almost 6,000 a day – with a great number of exhibitors and many interesting meetings.  But what is more important for the whole Ho.Re.Ca regional business, was the signing of an agreement that will certainly boost the turnover in the Lebenon region: the Beirut Capital of Taste Charter. 

In doing so, Mr. Fady Abboud, Minister of Tourism, Mr. Mouhamad Choucair, President of Commerce, Industry, and Agriculture of Beirut and Mount Lebanon, Mr. Nehmat Frem, President of the Association of Lebanese Industrialists, Mr. Pierre Ashkar, President of the Federation for Tourism Association and President of Lebanese Hotel Association, Mr. Paul Ariss, President of the Syndicate of Owners of Restaurants, Cafes, Night Clubs and Pastries, Mr. Georges Nassrawi, President of the Syndicate of Lebanese Food Industries, Mr. Nouhad Dammous, President of ADFTH, and Mrs. Joumana Salame, Managing Director of Hospitality Services, all united to put Beirut on the map as a world leader with its international standards in terms of innovation, inspiration, know-how and conviviality.

“We are very thrilled to have this charter finally signed”, said Mrs. Joumana Salame, Managing Director of Hospitality Services. “We have been working on this plan for the past 3 years, and we strongly believe that Lebanon will be up to the title it has been awarded”

By bringing together European and Middle Eastern countries and strengthening Lebanon’s international bonds, Horeca serves not only as an economic boost adding to the development of the country, but also as a tourism attraction, by enticing hundreds of thousands of visitors yearly.

DESITA, showfood and ECOFFEE are among the companies who have already benefited from the Beirut Capital of Taste Charter, with great projects done and to come and the foreseen participation at HORECA 2012, where we will present the best Italian shop concept design, the best catering equipment products and the most innovative practices to bring sustainability in the Ho.Re.Ca. & Hospitality sectors, food Retail and Franchising. (Picture Credit: Hospitalitynewsmagazine)

The Coca Cola Company and the new PlantBottle® packaging: sustainability comes from sugarcane!

Beginning April 4, 2011 the first 100 percent recyclable beverage packages made with plants are readily available to people across the U.S. If you want to enjoy the fresh taste of DASANI, or a nourishing Odwalla beverage in a more environmentally responsible package made from plants, now you can. There’s no more waiting.

PlantBottle® packaging for both brands was developed with the planet in mind by PlantBottle® Packaging Platform, The Coca Cola Company.  Single-serve Odwalla packages are made from up to 100 percent plant-based materials with high-density polyethylene (HDPE) plastic. PET bottles for DASANI are made with up to 30 percent plant-based materials.

“It’s our goal to make traditional plastic bottles a thing of the past and ensure that every beverage we produce is available in 100 percent plant-based, fully recyclable packaging,” said Scott Vitters, General Manager, PlantBottle® Packaging Platform, The Coca-Cola Company. “The national launch of DASANI PlantBottle® packaging represents an important step toward reducing our carbon footprint, and the up to 100 percent plant-based, recyclable packaging used for Odwalla is the first of its kind in the beverage industry.”

Traditional PET bottles are made from petroleum and other nonrenewable fossil fuels. Incorporating a blend of petroleum-based materials with up to 30 percent plant-based materials allows PlantBottle® packaging for DASANI to reduce potential intrinsic carbon dioxide emissions when compared with PET plastic bottles

“DASANI is designed to make a difference by offering a better designed package for a more sustainable future,” said John Roddey, Vice President and General Manager, Water, Tea and Coffee, Coca-Cola North America. “Because DASANI PlantBottle® packaging is up to 30 percent made from plants and still 100 percent recyclable, it was designed with the planet in mind by helping to reduce the impact of our packaging on the environment.”

The plant-based materials for both DASANI and Odwalla PlantBottle® packaging are produced through a process that turns sugarcane into a key component for PET and HDPE plastic. Currently, PlantBottle® packaging is made using sugarcane ethanol from Brazil, the only source widely recognized globally for its unique environmental and social performance. Brazilian sugarcane is primarily rain fed and industrially grown on abundant, arable land using organic fertilizers. The plantations from which PlantBottle materials are sourced are located far away from Amazon rain forests, and their impact on biodiversity is reduced thanks to advanced farming practices and sound public policy.

Unlike other plant-based plastics, PlantBottle® packaging is entirely recyclable and can be processed through existing systems. This ensures PlantBottle® packaging can be repeatedly used, recycled and reused. In addition, there are no differences in shelf life, weight, composition or appearance between traditional PET plastic bottles and PlantBottle® plastic bottles.

In late 2009, PlantBottle® packaging was launched in the western U.S. and eight other markets around the world. To date, PlantBottle® packaging is estimated to have eliminated the equivalent of 30,000 metric tons of carbon dioxide, or three million gallons of gasoline used to produce PET plastic bottles. Currently, The Coca-Cola Company is working to further technology so other plant materials can be used in future PlantBottle® packaging. The ultimate long-term goal is to turn waste into a resource, resulting in a carbon neutral, 100 percent renewable, responsibly sourced bottle that is fully recyclable.

“Several approaches to a PET package made entirely from plants have been successfully demonstrated in laboratory testing. We’re working to advance this breakthrough science to ensure it is commercially viable,” said Vitters. “PlantBottle® packaging means only good things for everybody. We welcome others in the industry joining us in advancing the science behind packaging made from plants.”

The technology used to make PlantBottle® packaging already has been adopted by Heinz, which recently announced it will begin packaging its ketchup using that technology this summer under license from The Coca-Cola Company.

The rollout of PlantBottle® packaging for DASANI will be supported by a national television spot breaking in April. Additional executions will include enhanced packaging graphics, as well as out-of-home, print, digital and point-of sale-advertising to build awareness for PlantBottle® packaging. Odwalla’s marketing program includes coupons, print advertising, digital programs and new labeling Point-of-sale materials for in-store displays will feature attention-grabbing messages such as “Paper or Plastic? Try Plant!” (Source: Businesswire)

American consumers punish greenwashing practices, a survey says

“Nearly three-quarters of consumers (71%) will stop buying a product if they feel misled by environmental claims”

Two days ago an ECOFFEE prospect tried to convince us that sustainability is just a marketing word, and that consumers are not able to understand whether the retail product/store is really sustainable or it is just greenwashing.
We have already dealt with this kind of prospect – and many became enthousiast ECOFFEE customers and sustainability advocates. Data and market analysis are the only way to convince the sustainability skeptical about the counter effects of greenwashing practices.

That day, we showed to our prospect the Cone Inc. Trend Tracker recent analysis about U.S consumers and their behaviour towards greenwashing practices, dated March 24 2011.

Results are very interesting – and very motivating for those of us who believe in real sustainable business practices.
When consumers discover a claim to be misleading, they will take the following actions:

 

Three mock cleaning products were showed to consumers, who were asked to “purchase” the one they believed to be the most environmentally responsible. They were also required to indicate what they think the certification, claim or image on each package represents.
The results are as follow:

Another very interesting survey finding concerns the inaccurate interpretation by U.S. consumers when it comes to words such as “green” and “environmental friendly”. More than two-in-five Americans (41%) erroneously believe these terms mean a product has a positive (i.e., beneficial) impact on the environment. Only 29 percent understand that these terms more accurately describe products with less environmental impact than previous versions or competing products.
Last but not least, 59% say it is only acceptable for marketers to use general environmental claims when they are backed up with additional detail and explanation:
-23% say vague environmental claims should never be used.
-79% want detailed information readily accessible on product packaging.
-75% wish companies would do a better job helping them understand the environmental terms they use.

It is not necessary to add other comments to the above survey results, but if you are interested to know more, you can download the whole survey linking to the Cone Inc. website.

China retail luxury: a long-term insight

China: a market that is continuously growing, a very rich but still unknown to the many. What is clear is that China is set to become the most powerful economy in the world, and this will happen in a very short time. Many are the companies that have already sucessfully entered the Chinese market, luxury good brands being the pioneers.

A McKinsey survey over 1.500 Chinese luxury consumers during spring 2010, shows interesting trends which are basically telling to the world that the “consumer culture” is changing at a very high speed, following the changes in the society and urban landscape. For those who are interested, the whole report can be downloaded here, but three are main facts:

  • “Rapid increases in wealth, and shifting social mores that sanction the display of that wealth, are driving a growing infatuation for luxury goods among Chinese consumers.”
  • “Access to an explosion of information on the Internet, an increasing penchant for overseas travel, and first-hand experience purchasing and consuming luxury goods are contributing to a substantial rise in sophistication among luxury consumers in China. Contrary to popular belief, a growing number of Chinese luxury consumers are exhibiting a noticeable trend away from overt displays of wealth, and towards more understated forms of luxury consumption.”
  • “Rapid urbanization and growing wealth outside of China’s largest cities is driving the emergence of several new geographic markets with sizable pools of luxury goods consumers. Over the next 5 years, [McKinsey] expects that the number of such cities will double from 30 to 60.”

Other key findings are social-demographics related. Not only traditional luxury brands consumers, but also 13 million upper-middle-class households (earning $15,000 to $30,000), which are stretching their budgets to buy luxury watches, jewelry, handbags, shoes and clothing. This segment represented 12% of Chinese luxury consumption in 2010, but is expected to reach 22% by 2015.

The survey also shows that approximately 73% of luxury consumers in China are under age 45, significantly younger than their counterparts in western nations or even nearby Japan. 

All these findings essentially reinforce the widespread idea that if this trend is going to be followed in 2011 too, China will become the biggest retal luxury market in the close future. (Source: McKinsey, Picture credits: TheChinaObserver)

What is Masdar and why it is so important for our future?

Masdar is a familiar word to all of us who are concerned about the future of our dear planet Earth. But for the few of you who have never heard of it, please allow us the pleasure to introduce you this incredible project.

Masdar is first of all a company, notably a Mubadala – Abu Dhabi government owned company, based in Abu Dhabi, UAE. As stated in the company’s website ” Masdar is a commercially driven enterprise that operates to reach the broad boundaries of the renewable energy and sustainable technologies industry – there by giving it the necessary scope to meet these challenges.  Masdar operates through five integrated units, including an independent, research-driven graduate university (Masdar Institute, other units are Masdar Capital, Masdar Power, Masdar Carbon, Masdar City cfr.) and seeks to become a leader in making renewable energy a real, viable business and Abu Dhabi a global centre of excellence in the renewable energy and clean technology category. The result is an organisation greater than the sum of its parts and one where the synergies of shared knowledge and technological advancement provide this commercial and results-driven company with a competitive advantage that includes an ability to move with agility and intelligence within an industry that is evolving at great speed.
This holistic approach keeps Masdar at the forefront of this important global industry, while ensuring it remains grounded in the pursuit of pioneering technologies and systems that also are feasible. As a result, it delivers innovation to the market while deriving profits for its shareholders.”

This huge project deals with all the aspects of sustainability: research, energy, finance, architecture, urbanism. Last but not least, retail. Because of its importance in the life of all the people who will live in Masdar City and for “its contribution to the city’s appeal as a renewable energy and clean-technology hub“, retail in Masdar “will provide valuable lessons regarding commercial activities (…) increasing our understanding of how retail activities can be conducted in a sustainable manner”. The list of the companies who have already been involved in the Masdar City retail project includes Caribou Coffee, health insurance provider Daman, telecom provider Etisalat, Sumo Sushi, express delivery company Aramex, Omeir Travel, Organic Foods & Cafe and National Bank of Abu Dhabi. The first commercial building, the Courtyard Building,  has been planned to be finished by 2012, therefore there is enough time for this list to become a very long one.

In the meanwhile, many are the people who are praizing the incredible urban project designed by Foster and Partners, but to be fair, there are also critics like New York Times journalist Nicolai Ouroussof  who wrote that “…its design also reflects the gated-community mentality that has been spreading like a cancer around the globe for decades. Its utopian purity, and its isolation from the life of the real city next door, are grounded in the belief — accepted by most people today, it seems — that the only way to create a truly harmonious community, green or otherwise, is to cut it off from the world at large“.

Our point of view and what we are always stressing in our ECOFFEE projects, is that sustainability is too important for our future and each and every project that has a little bit of sustainability in it is important to raise people awareness. To be too critical towards sustainability-related projects, requiring their perfection – which at this stage is quite hard to achieve – postpones any action and creates confusion among people, these two being the worst enemies of sustainability. (Picture credits: Masdar.ae)

Italian consumers love sustainable products but need better product information.

One of the findings of the “For a Sustainable Supply Chain: business and consumers point of view” survey conducted by the GfK Eurisko and promoted by the Sodalitas Foundation,  the product/service sustainability is ranked fourth among the criterias used by consumers when choosing, but if better communicated, will become an increasingly important requirement. During the investigation 500 consumers and 183 businesses were interviewed . To more than a third of the companies, sustainability is very important. However, only a minority (29%) in the interviewed sample declares to be thoroughly familiar with this concept, while a substantial percentage (45%) say they have “enough information”, confirming the gradual integration of this concept in the corporate culture .
The majority of consumers (63%) had heard of sustainability, even if only 19% of them (mostly young and with a high level of education) believe to know well its meaning, with a prevalence of the environmental (83% ) on the social aspects (64%).

The responsibility for a “sustainable development” is primarily attributed to the central Government (86%) and to local governments (82%), but a very high percentage of respondents (over 70%)  thinks businesses and citizens responsible to ensure the sustainability of the development. The opinions about the companies’ commitment to sustainability is different: one third of the sample (35%) expressed a positive opinion, a  third is critical and another third has no a definite opinion about it.

Only a third of consumers (32%) had heard of “sustainability of the supply chain” (a percentage that is growing in those aged more mature and – especially – among those with a higher education degree). But after the concept was briefly explained a large majority (76%) said to believe that companies must ensure the sustainability of their supply chain. Today, already one quarter of Italian consumers are chosing which products to buy also using supply chain sustainability criterias. Three quarters of consumers also agreed to pay more for a product which is guaranteed in terms of its sustainability. The focus is on all product categories but in particular on food (71%) and detergents (65%). And, at least in theory, the majority of consumers (76%) would be willing to pay more for a guaranteed product in terms of sustainability (though – the majority said to be ready to pay only “little” or “very little” more). (Source: GfK Eurisko, Image credits: Transocean)

Sustainable Coffee: what is it and is it really profitable?

Sustainability in the Retail & Ho.Re.Ca Business, what our ECOFFEE project is about, is based on a main concept: communication to consumers and customers must be clear and simple to make them better understand what are the added values of buying/consuming sustainable products.

For instance, let’s talk about Fairtrade, organic, Rain Forest Alliance or UTZ certified coffee. These are some of the labels with which coffee is traded nowadays and consumers can be quite confused by this abundance of sometimes not well explained terms. 

Among the many information source we always refer to when asked “What is sustainable coffee about?” we found that the Imbibe magazine one is the most consumer-friendly one, covering all main aspects of sustainability in the coffee business.

The other well known issue to our blog readers is “Is it really worth investing in sustainable coffee?”. Commodity traders know the answer, and this is “Yes, of course”. A recent publication by Intracen organization (International Trade Center), shows that “Demand for conventional (i.e. non-certified) coffee is largely stagnant in these markets, whilst it is thriving in emerging markets. Certified coffee, however, is showing strong growth and higher retail prices, particularly in mature markets. This trend is also followed by other commodities, including tea, cocoa and cotton. A new industry of inspectors and technicians has emerged to service the sustainability segment of the market”. 

Enoc Retail plans expansion to Middle East

Enoc Retail Systems Holding, the retail division of Emirates National Oil Company (Enoc), plans to franchise its Zoom convenience-stores and Pronto, a fresh food and gourmet coffee concept.
Zoom, which operates six stores at Dubai Metro stations, is looking to expand to 28 stores in total, Enoc stated recently.

The convenience store brand, which is currently also present in eight stores within the Enoc/EPPCO network, is set to expand both as stand alone stores and at more Enoc/EPPCO service stations, it added.

Pronto, established in 2008, currently operates 21 outlets within Enoc/EPPCO service stations. Burhan Al Hashemi, managing director of Enoc Retail, said that expansion plans were part of a long term strategy to establish Zoom and Pronto as premier retail providers across the Middle East.

“Enoc Retail has proven its competencies in a short span of time. We are now open to share our expertise by franchising the successful retail concepts and reach out to a wider audience in the Middle East,” added Al Hashemi.

Enoc/EPPCO is the pioneer of convenience store retailing in the UAE, introducing mini marts in 1988 in Dubai and the Northern Emirates.

Currently, Enoc Retail employs more than 4,500 frontline staff, meeting the needs of over 600,000 customers a week. Enoc Retail operates a network of 170 Enoc and EPPCO service stations in Dubai and the Northern Emirates. (Source: Arabianbusiness.com)

DSE: See-through display showing the way for retail digital signage?

The STRATACACHE PrimaSee system  was what appeared to draw most of the attention at the last Digital Signage Expo in Las Vegas. 
So is the display basically an LCD without a black background? Sort of. PrimaSee showcases high-definition, dynamic video advertisements embedded in a see-through glass panel. These translucent promotional videos would correspond with products visible behind the displays, say in a grocer’s freezer aisle, to convey point-of-purchase or point-of-decision brand messages

“Effectively it’s an LCD technology, (but) the base nature of the screen is different than you’d have in a normal LCD, both because of the background and then the color masks and other things that go into translucency,” STRATACACHE CEO, Chris Riegel said. “But in basic prospect, yes, same kind of idea.”

The content for a translucent panel also has to be different, as is the way it is lit, but the technology of the display isn’t the most important aspect of it, he said.

“I think the most important thing is that it shows an example of — if you look at all the digital signage in the show, too much of it is bolt-on, things that you can tell in a retail environment or a customer service environment after the fact,” he said.

“This is a prime example of where the digital signage industry needs to move, which is integrating the digital experience into that consumer experience so that it’s seamless for that customer and helps to transform or change an existing experience. Everybody can understand going to the freezer in the grocery store, going to the cooler at the convenience store. How do I integrate media into that environment … to have digital media help that experience?” (Source: Retailcustomerexperience.com)



EuroShop: green is “hot”

Back from the EuroShop, with lots of a ideas and a big certainty: green is “hot”. From Green IT to green supermarkets and green products: retail is now aware of the trend toward sustainable economic management. Obviously, the market is still immature and retailers have lot to learn about what can be really sustainable in the long term – and this is where professional services like the ones we offer can be of a great help.

As stated on the EuroShop website, earlier this year, German Federal Minister of Economics Rainer Brüderle visited the “Klimamarkt” (“climate market”) by Tengelmann, across from the Tengelmann headquarters in Mülheim an der Ruhr. The politician of the FDP party said: “We need pilot projects like this to gather experience on how climate protection and economic efficiency can be reconciled.” Tengelmann deems the “Klimamarkt”, which already opened in December of 2008, to be “Germany‘s first CO2-free supermarket.”

The project admittedly does not stand up to an intense cost effectiveness analysis. “Demolition and new construction would have been cheaper”, Tengelmann spokesperson Jutta Meister admits on inquiry. And this is issue n.1 to take into account: the economics of retail sustainability.

“Particular attention also always needs to be paid to the economical aspect of sustainability”, says Tobias Walter of tegut. “We build beautiful marketplaces for our customers, which thanks to our consolidated know-how generally are not more expensive than the otherwise widely common ‘shoe box buildings’”. Kai Falk, Managing Director of Communication and Sustainability at the German Retail Federation HDE also believes: investments in sustainability in retail have a chance on a larger scale only if they also pay off financially.

And this pay off can be energy savings. In food retail, according to the EHI more than 55 Euros per square meter of sales floor are incurred for energy, in which cooling at 44 percent accounts for the largest electricity consumption. In non-food retail on average 31 Euros per square meter need to be spent. Here the largest portion at 65 percent is caused by lighting expenses.

The EHI notices a large willingness in retail to invest in energy savings practices. 80 percent of polled retailers are said to be willing to invest in energy-saving cooling systems and equipment. This high readiness can be explained by savings expectations of up to 20 percent. Aside from investments in new cooling devices, the choice of cooling agent is also getting more and more important, especially since the old R22-systems have to be converted. Cooling with CO2 was one of the big trade fair topics at the EuroShop 2011.

Many commercial enterprises work on new projects and initiatives about a more sustainable retail. Hardly anybody believes they can afford to not be a part of green topics. The discerning public will intently look at what’s show and what is true concern. But ultimately it is the consumers themselves that have to start rethinking, because they choose where they shop. They choose what they would like to stay away from.