A little experiment “How much would you pay for a really good “Loaf of Bread” “How much would you pay for a really good “bottle of wine”? Why am I here? Maximising Business And (Encouraging) 😇 Human Potential What's the market up 2!!! Production Structure and Market Share - 2013 Country Number of Industrial Number of Craft Industrial market share % Craft Market share % Belgium 60 3000 50 50 France 220 30,000 35 65 Germany 50 10,750 40 60 Greece 22 7000 4.5 95.5 Holland 67 2000 85 15 Spain 40 11,000 34 66 Turkey 300 15,000 12 88 UK 150 4500 97 3 Production and Consumption Bread 2013 Country Total of Tons Production In - decease Consumption Consumption per head in - decrease Belgium 600,000 decreasing 55kg decreasing France 3,150,000 stable 42kg stable Germany 6,400,000 stable 56kg stable Greece 865,000 stable 68kg stable Holland 620,200 -1% 62kg -1% Spain 1,699,095 +3.7% 37kg +4.2% Turkey 8,300,000 -9.8% 104kg -10% UK 1,409,353 -2% 32kg -1% I Jest Not The Daily Telegraph 10 May 2015 Kingsmill reported bread sales of £314 million in the year to March, down £75 million on the preceding 12 months, as price drops exacerbated a 14.3per cent drop in volumes And do you think It`ll get better? And If it wasn`t bad enough already. In-store bakeries have become a source of additional revenue for retailers. Lidl for example, has now upgraded all of its stores to include fresh bakeries located by the entrance to entice customers. Bakeries have more important to retailers as they aim to attract consumers by improving their shopping experience. Its Called Competition Clog Iron impact Innovate or Die “If we don’t continue to innovate and make opportunities for consumers to try new things, our business will go backwards. So, it’s an absolutely key element to survival, and we would see it as a lifeblood of the future, without neglecting, of course, what has got us where we are today” Jonathan Warburton Bread & Bakery Goods Production Market Research Report Aug 2015 Industry Analysis & Industry Trends The Bread and Bakery Goods Production industry has been under considerable pressure over the past five years because consumers' interest in industrially produced goods has been fading. Bread produced by large plant bakeries has traditionally accounted for the majority of bread eaten in the United Kingdom but this is now less attractive to consumers and consumption of plant bread has been declining. In contrast, small artisan bakeries have proliferated and proven increasingly popular, while alternative baked products have also taken off. The Quality Bread Market Key Note forecasters, “Consumers are instead choosing to consume speciality breads less regularly, with many consumers opting to do so at dinner, when such products can be used to make the meal more special” Mintel stated: “it expected the bread and baked goods market to grow by around 24% in value terms by 2018, reaching a total of £4.8bn. Volume growth: 2009-2014 Artisanal bread has risen by 1.8%. Artisanal cakes has risen by 2.4%. Artisanal pastries has risen by 7.4% All info taken from Baked Goods in the United Kingdom, Euromonitor International, October 2014 Value growth: 2009-2014 Artisanal bread has risen by 10.8%. Artisanal cakes has risen by 18.9%. Artisanal pastries has risen by 21.6%. All info taken from Baked Goods in the United Kingdom, Euromonitor International, October 2014 Artisan Shops are coming Our Business 60% G.C.B Retail 40% Food Service We have to Innovate – daily…. Think outside the box Imagery Dare to be Different With a touch of class Imagery Food Service - RELATIONSHIPS When is not a pie – a pie? Different is very easy Different is very easy Different is very easy Different is very easy Apple Brioche Always Push The Boundaries Don`t forget to have some fun We’re All Going to Die Or go Ga Ga Either way Mother Nature will get you in the end!! Training the next generation for your business For These Reasons • More than one half of all owners are 50 years of age or older • More than three quarters have their personal wealth tied up within the business. • More than 60% do NOT know the value of their business. • More than two thirds do NOT have a business succession plan. • 70% FAIL to successfully transition their business to their heirs. It’s a world wide problem “Rags to riches and back to Rags in three generations”: “Shirt sleeves back to shirt sleeves in three generations” (U.S.A) “From the Stables to the stars, back to the stables” (Italy) “Rice bowl back to Rice bowl in three generations” (Asia) “Clogs back to Clogs in three generations” (Lancashire) There is an old Chinese saying, “Family wealth never survives three generations” Interesting Statistics Success of Business transfer from one generation to the next? 88% of all owners do have a desire to transfer their business. Generation 1 – Generation 2 there is a 70% failure of transfer Generation 2 – Generation 3 – There is a 85% failure of transfer Generation 3 – Generation 4 – There is a 96% Failure of transfer Success of wealth transfer from one generation to the next? 70% Failure from Creator of wealth to Successor 85% Failure of wealth from 2nd generation to 3rd Generation 94% Failure of wealth from 3rd Generation to 4th Generation All because of our inability to train effectively and to PLAN for tomorrow. And to understand the simple concept: It is your DUTY to replace yourself and to ensure – “tomorrow will happen” Ability before birth right And primogeniture is not the best for the business Training the next generation For your craft. Enthusiastic Youth Trailblazers Active Food & Drink Trailblazers A range of employer-led Trailblazer projects are now underway to develop new Apprenticeship Standards across four areas of Food & Drink Manufacturing. A new Trailblazer Standard for Engineering & Maintenance has already been approved by Government and will be implemented from January 2016. The following new Standards have been provisionally approved by the Department for Business, Innovation and Skills (BIS): •Food and Drink Process Operator •Food and Drink Advanced Process Operator •Bakery •Food Technologist Trailblazers - Bakery The Trailblazer project in this area is developing new Apprenticeship standards for roles including: Automated Plant Baker, Retail(ers`) Baker Artisan/Craft Baker. Open Question What have YOU done to replace YOU What have you done to replace your Skill – Craftsmanship in your business Many Thanks