INNOVATION
BEYOND
PRODUCT DEVELOPMENT
1
AGENDA
Wilson’s Country
Brief History
Few Milestones
Wilson’s Country
The Innovations Beyond Product Development
Business Learnings
During innovation process
COMPANY PROFILE
 Established 1980’s by Angus Wilson (CEO)
 Initially prepack potatoes
 Wilson’s Country brand for retail sector
 PRODUCT INNOVATION – Garden Potatoes
 Processed potatoes early 1990’s
 Peeled potatoes for food service sector
 Fresh Fruit & Veg processing early 1990’s
 Retail and Food Service Sector
 1995 – moved from home farm to a commercial unit
 2001 – what will future look like and where will we be ?
 Rationalisation of sites and activities
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2004 - exit from veg processing
2005 – operations all to one site
2009 – exit from fresh fruit processing
2010 – focus on prepack & peeled potatoes
FEW MILESTONES
 1980’s & 90’s only packed Wilson’s brand potatoes
 Spar, Stewarts, Supermac, Wellworths
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1994 Supply to M&S
1996 Supply to Tesco Metro
1997 Supply to MSVC
2000 Wilson’s Brand first TV campaign
2005 Investment of £5million in new site
2008 Supply to Dunnes Stores
2009 Supply to Asda
2009 Pilot programme for Investors in Innovation
2010 Packing of Bartlett Rooster Brand
Today
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£17 million turnover
Just under 100 employees
Handling 1000 tonnes of potatoes per week
Wilson’s Country brand recognised as Ireland’s leading brand
Widespread presence in multiples / independents across Ireland
Packhouse at Portadown
INNOVATION
Definition
“There are probably as many definitions of
innovation as the number of supposed
experts on the field around the world”.
INNOVATION
Definition
“Change that creates a new dimension of
performance”.
Peter Drucker
INNOVATION
Definition
“Innovation does not relate just to new
product that would come into the
marketplace. Innovation can occur in
processes and approaches to the
marketplace.
David Schmittlien
HANDS FREE MOBILE !!
INNOVATION
 PRODUCT
 How is it presented to your business for use?
 What you do with it?
 What do you do with non-conforming product?
 PROCESS
 Working of the product through the business
 Waste streams generated from your process
 MARKETING
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Place
Price
Promotion
Presentation
INNOVATION
MARKETING
Presentation of Product - late 2009
PROCESS
Working of product through the business
Peeling potatoes – Sept 2010
Waste streams from production
Water – current project
MARKETING
 Market research in 2008 / 09 identified that just
under 50% of consumers did not purchase their
potatoes with their main shop
 Embarked on a process of why
 Reason clearly
 Presentation
 Format
 Launched a new packaging format
 Product still the same
 Place the same
MARKETING
FAMILY OF VARIETIES
14
Total NI Potato Performance
Worldpanel
KPI May
Reporting
52
w/e 16
2010 – Value is down in the NI potato market as people limit
the
they purchase.
KM amount
Performance
Value down 6.1% worth €3028k
Total Potatoes - Total outlets
Expenditure (€000s)
Volume (000s Kgs)
Penetration %
Purchase Frequency
AWP (Spend per Buyer)
AWP (Kgs per Buyer)
Trip Spend
Trip Volume (Kgs)
Price per Kg
52 w/e 17
May 09
52 w/e 16
May 10
Actual
Change
% Change
49232.80
94152.20
96.90
40.60
76.50
146.30
5.80
3.60
0.52
46205.30
85877.74
96.00
40.40
71.40
132.80
5.30
3.30
0.54
-3028
-8274
-0.90
-0.20
-5.10
-13.50
-0.50
-0.30
0.02
-6.1
-8.8
-0.9
-0.5
-6.7
-9.2
-8.6
-8.3
3.8
-6000
-5000
Penetration %
Purchase Frequency
Trip Volume (Kgs)
Price per Kg
-4000
-3000
-1000
0
1000
2000
3000
Expenditure (€000s)
€46.2m -6.1%
Decrease of €3028k
Volume (000s Kgs)
85.9m Kgs -8.8%
Contribution = -€4681k
AWP (Kgs per Buyer)
132.8 Kgs -9.2%
Contribution = -€4895k
Purchase Frequency
40.4 trips -0.5%
Contribution = -€273k
-2000
Trip Volume (Kgs)
3.3 Kgs -8.3%
Contribution = -€4622k
Price per Kg
€0.54 +3.8%
Contribution = €1654k
Penetration % *
96% -0.9%
Contribution = €214k
* Penetration contribution
includes Population growth of 1.5%
© Kantar Worldpanel
How are Wilsons growing?
Reporting
52Worldpanel
w/e 16KPI
May
2010 Growth is coming from new shoppers returning more frequently
and
putting more volume in the basket as well as attracting new shoppers to the brand
KM Performance
Value up 351.1% worth €6559k
Wilsons Country - Total Outlets
Expenditure (€000s)
Volume (000s Kgs)
Penetration %
Purchase Frequency
AWP (Spend per Buyer)
AWP (Kgs per Buyer)
Trip Spend
Trip Volume (Kgs)
Price per Kg
52 w/e 17
May 09
1867.80
2272.57
44.00
4.60
6.40
7.80
3.80
1.70
0.82
52 w/e 16
May 10
8426.30
14294.44
77.00
11.00
16.20
27.60
3.90
2.50
0.59
Actual
Change
6559
12022
33.00
6.40
9.80
19.80
0.10
0.80
-0.23
% Change
351.1
529.0
75.0
139.1
153.1
253.8
2.6
47.1
-28.0
-1000
0
Penetration %
Purchase Frequency
Trip Volume (Kgs)
Price per Kg
1000
2000
4000
5000
6000
7000
8000
Expenditure (€000s)
€8426k +351.1%
Increase of €6559k
Volume (000s Kgs)
14.3m Kgs +529%
Contribution = €6874k
AWP (Kgs per Buyer)
27.6 Kgs +253.8%
Contribution = €4858k
Purchase Frequency
11 trips +139.1%
Contribution = €3630k
3000
Trip Volume (Kgs)
2.5 Kgs +47.1%
Contribution = €1228k
Price per Kg
€0.59 -28%
Contribution = -€316k
Penetration % *
77% +75%
Contribution = €2017k
* Penetration contribution
includes Population growth of 1.5%
© Kantar Worldpanel
MARKETING SUMMARY
A successful innovation
BUT
This packaging format was industry standard
20 years ago!
Does innovation always mean re-inventing
the wheel?
Lesson
Continually respond to the market needs
ahead of your competitor
4 X 4 DE-LOREAN
PROCESS - peeling
 Background
 Peeled potato volume sales increasing
 Introduce additional shifts
 Great news
 more sales
 better utilisation of assets
 Division evolving as sales evolve
 Division operationally becoming very busy
 Know the time to
 “step back out of the trees to see the forest”
 Evolution has a time and place but can lead to
INEFFICIENCY and the need for REVOLUTION
PROCESS - peeling
 So what happened?
 Process started at European exhibition Feb 2009
 Reviewed Equipment that is available
 Company visit to GB business May 2009
 To build general knowledge – some equipment
 Company visit to German business Sept 2009
 Very similar to our business scale and working the new
equipment
 Order placed Feb 2010
 Installation Sept 2010
PROCESS - peeling
Fully integrated computerised system
Peeling
Optical sorting
Re-peeling
Sizing
Cutting option
Washing
PROCESS – peeling
SUMMARY
Successful Innovation
Contingency into business
Labour saving
Yield gain
Better product
This was new innovation to us but :technology was proven in other markets
Lesson
Revolution sometimes better than Evolution
PONYTAIL NO PROBLEM
PROCESS – waste stream
Water
Business uses a lot and discharges a lot
Money £120,000 / yr approx
Considered options around recycling
Conventional
Not so conventional
Electro coagulation
PROCESS – waste stream
EC Benefits v Conventional
On paper
Not as capital intensive
Smaller footprint
Less running costs
Ability to recycle 75% of our water
About to go live
PROCESS – waste stream
Success yet to be determined
Technology new to market
Technology new to business
Unknown territory
Business risk increased
Forward looking to a new way
Invention more than innovation
Another Innovation
Variation on a Pritt Stick
BUTTER PRITT
LEARNINGS
BUSINESS
BUY IN
1. OBJECTIVES
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Someone will need time to think and review
What are you currently doing ?
How are you currently doing it?
Where are you wanting to get to ?
Is there another way ?
Can we do it better ?
Time to visit other companies / exhibitions
INNOVATION WILL NOT HAPPEN
– By itself
– In 5 minutes on a Friday afternoon
2. OUTCOME
• Is the business prepared to :• Implement the findings
– Or is it just an exercise
• The norm may be challenged
• Take a calculated risk
– Innovation or Invention
• Know the reasoned goal / benefit
– Clarity around before and after
• Spirit MUST be there
3. IMPLEMENTATION
• Capex may be required
• Change in custom and practice
• Consequences
– People Issues
– Customer Issues
– The way we do things
• Clarity around the objective / goal
4. MONITORING
• Clarity around starting point
• Clarity around innovation
– Measurement
– Deliverables
• Know when to change tack
• Know when to stop
SUMMARY
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You need someone with “that” skill set
If you don’t have it, procure the skill
Provide a culture / space for the process
Put on business agenda
Support process at every step
Communicate the progress
Be prepared to change norms
Have clarity around the end goal
Be prepared to say stop
CELEBRATE THE SUCCESS
INN0VATION
THANK YOU FOR LISTENING
Don’t get caught out
Innovate or Die !
Oh ……….