Health & Wellness - Understanding the Needs of the Ageing Consumer Webinar Sliders

Understanding the needs and consequences of the Ageing

Consumer

Webinar - 17th April 2013 – 15:00 CET

Webinar HousekeepingWebinar Housekeeping

If you are not speaking please put your phone on mute to avoid echo on the phone line

We are very happy to take your questions at the end of the WebinarWe are very happy to take your questions at the end of the Webinar

The duration of today’s webinar is 60 minutes

The webinar is being recorded

You can ask questions during and after the webinar to Sharon Bligh, CGF by email: [email protected]

2

Webinar Agenda & Speakerseb a ge da & Spea e s

Name Company Topic

S bi Ritt Th C G d F 1 I t d ti t Th CSabine RitterExecutive Vice President, Strategy, Industry Initiatives, Strategic Alliances

The Consumer Goods Forum 1. Introduction to The Consumer Goods Forum

Onno Franse Royal Ahold & 2 Introduction and backgroundOnno FranseProgramme Director Healthy Living & Climate Action

Royal Ahold & Co-Chair CGF Health & Wellness Core Team

2. Introduction and background to the Ageing Project (CGF Health and Wellness Initiative)

Martin WalkerSenior Director Global Business

A.T. Kearney 3. The Agequake andImplicationsSenior Director Global Business

Policy CouncilImplications

Mike MoriartySenior Partner

A.T. Kearney 4. Three Hypotheses5. Inclusion

Martin Walker A.T. Kearney 6. Value

Joyce GallagherExecutive Director

Chicago’s Area Agency on AgingAge-Friendly Chicago

7. Social Redesign and Public Private partnerships

Onno Franse Royal Ahold 8. The impact on our industry

Mike Moriarty A.T. Kearney 9. Next steps and ideas for discussion

3

All speakers 10. Questions?

Introduction to The ConsumerIntroduction to The Consumer Goods Forum

Sabine RitterExecutive Vice President, Strategy, Industry Initiatives, Strategic

AlliancesTh C G d FThe Consumer Goods Forum

Who are we?Who are we?

The Consumer Goods Forum is a global industry networka global industry network

The world’s leading association of retailers & manufacturers and their business partners

A l b l i ti ith h d t i

400 members70 countries

A global organisation with headquarters in Paris and offices in Tokyo and Washington

A unique platform to develop common

9.9 million employees U$3.3 trillion inq p p

positions on key strategic, operational and non-competitive issues affecting the consumer goods business

U$3.3 trillion in sales

5

Board of Directors: Retailer Collegeg(all CEO or Chairman)

6

Board of Directors: Manufacturer College(all CEO or Chairman)

7

The CGF Vision & MissionThe CGF Vision & Mission

The Vision:The Vision:“Better lives through better

business”

The Mission:

“Working together to enable our industry to passionately serve shoppers, consumers and communities betterconsumers and communities better, faster, with great value and in a responsible way.”

8

and in a responsible way.

The Forum has 5 strategic prioritiesThe Forum has 5 strategic priorities

Emerging S t i bilit Safety & KnowledgeEmerging Trends Sustainability Safety &

Health

Health &

Operational Excellenceg

Sharing & People Development

GlobalGlobalFoodFuture Value

ChainWellness Initiative

Ageing

Global Summit

Future

Food Safety

InitiativeClimate Change

• Deforestation

• Refrigeration Food Safety Ageing Population

Share our Supply Ch i

Prepare our People

Connect Businesses Information

Focus on

Consumers &

Future Leaders

• Refrigeration

• Product Sustainability Measurement

Food Safety In Asia

Waste

Chain ou eop e& Shoppers

Waste

Global Social

C li

9

ComplianceProgramme

There are two Board sponsors forThere are two Board sponsors foreach strategic pillar

Emerging Trends Olaf Koch, MetroKasper Rorsted, Henkel

Sustainability Philip Clarke TescoSustainability Philip Clarke, Tesco Paul Polman, Unilever

Safety & Health Safety:Irene B. Rosenfeld, Mondelez,Danny Wegman, Wegman’s

Health & Wellness: Paul Bulcke, NestléPaul Bulcke, NestléDick Boer, Royal Ahold

Operational Excellence Greg Wasson, WalgreensRobert McDonald, Procter & Gamble

Knowledge Sharing & People Development

Indra K. Nooyi, PepsiCo Gareth Ackerman, Pick n Pay

10

Questions?Questions?

To ask questions during or after the webinar please email Sh Bli h t CGF bli h@th d fSharon Bligh at CGF: [email protected]

Introduction and background toIntroduction and background to the Ageing Project(CGF Health and Wellness Initiative)(CGF Health and Wellness Initiative)

Onno FranseProgram Director Healthy Living & Climate Action

Royal Ahold

Health & Wellness ResolutionsHealth & Wellness Resolutions

I. Access & Availability of Products and Services

II. Product Information and Responsible Marketing

III. Communication and Education about Healthier

Diets and Lifestyles

We will offer consumers and

We will provide transparent, fact-

We will use communication and

shoppers a range of products and services that

p ,based information

that will help consumers and

educational programs to help raise consumer

supports the goals of healthier diets and

lifestyles

shoppers make informed product

choices and usages

awareness on health & wellness and

energy balance to inspire healthier

diets and lifestyles

13

The Health & Wellness Agenda of the CGFThe Health & Wellness Agenda of the CGF

14

Reportepo t

Understanding of the health and wellness consequences and needs of ageing populations

Understanding of the health and wellness consequences and needs of ageing populationsageing populationsageing populations

15

Key findings from the work doneey d gs o t e o do e

Ageing is huge, but easy to miss

Inclusion is key for a healthy society

There is value in retaining customers by training staffg y g

Social redesign is the role the Consumer Goods Industry can play

There is a unique opportunity for the CGF to create value

16

The Agequake and ImplicationsThe Agequake and Implications

Martin WalkerSenior Director Global Business Policy Council

A.T. Kearney

The Agequake has already begune gequa e as a eady begu

Evolution of 15 and 60+ share of total world population

40 %

Evolution of 15- and 60+ share of total world population- %, 1950-2050 -

30 %

20 % Share of 15-Share of 60+U.K. Brazil

France

India

WorldMexicoRussiaSpain

Turkey

U.S.

10 %

Germany China IndonesiaItalyJapanTurkey

0 %

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

18

Fewer Workers to Support Each RetireeFewer Workers to Support Each Retiree...

Workforce (1) growth index (2010=1)Workforce (1) growth index (2010=1)Today 2025

1.401.50

India

1.20

1 001.10

1.30

UKBrazil

CanadaUSA

0.80

1.00

0.70

0.90 ChinaFrance

GermanyRussia

Italy

0.60

0.400.50

0.30

Japan

unless the concept of Educateunless the concept of Educate--WorkWork--Retire changesRetire changes

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 20500.20

19

...unless the concept of Educate...unless the concept of Educate WorkWork Retire changesRetire changes

It’ t j t 65+It’s not just 65+ Healthy life expectancy(1) at 60 per country

21

8180797673

- years, 2010-

2016132119

60 year-old

JapanGermanyU SChinaIndia JapanGermanyU.S.ChinaIndiaHLE extension (in years)

since 2005:0,8 1,1 1,4 1,5 1

20

We need to think...now...about the 80+ as well as the 55+We need to think...now...about the 80+ as well as the 55+

The A T Kearney Global Ageing Consumer StudyThe A.T. Kearney Global Ageing Consumer Study

U S

Western Europe(1)

Russia

U.S.p

JapanChina

IndiaMexico

Brazil

More than 3,000 detailed surveys & outside shop interviewsMore than 3,000 detailed surveys & outside shop interviews

Covering 60% of total world populationCovering 60% of total world population

21

Covering 60% of total world populationCovering 60% of total world population

Interview results with H&W Core team companies revealed te e esu ts t & Co e tea co pa es e ea eda new perspective: an opportunity for the CGF to unlock value

The “power to convene”

Get in front of the opportunity and be a relevant voiceGet in front of the opportunity, and be a relevant voice

The Ageing population is the primary driver of demographic change in the coming years

Ranging from overall wellbeing via a diversity of Ageing groups to tactical considerations

Start a ‘contemporary’ discussion with the Ageing consumer

22

Three HypothesesThree Hypotheses

Mike MoriartySenior Partner A.T. Kearneyy

Expert insights led to three key drivers in creating new pe t s g ts ed to t ee ey d e s c eat g evalue for the Ageing consumer

PotentialInclusion PotentialValue for the

CG companies

Inclusionfor a

healthy society

Creating new value by empowering Cthe Ageing Consumer

RedesignRedesignhealthysociety

24

Three Hypothesesee ypot eses

■ Inclusion — Inclusion of the ageing population is an essential driver of a healthy society. It leads to more and wider knowledge, diversity, long-term perspectives, relevance, and i d h i f i b th ll b i d llimproved choice for everyone—in both well-being and wellness.

■ Social Redesign The CGF is in a unique position to act in the redesign of a healthy■ Social Redesign — The CGF is in a unique position to act in the redesign of a healthy, inclusive society. CGF member companies have a unique reach to billions of consumers and tens of millions of employees each day. Food, beauty, and shopping are among the few common experiences that build social cohesion. Our member have an unrivaled perspective in both developed and developing marketsin both developed and developing markets

■ Value —The potential value of the ageing population is enormous—perhaps US$6 Trillion of■ Value The potential value of the ageing population is enormous perhaps US$6 Trillion of incremental spending over the next decade. But the ageing consumer also represents an underused and highly experienced potential for the workforce. Better engagement—as consumers, shoppers, employees and citizens—could reduce healthcare costs and pension requirement and create a broader benefit for society as a whole

25

requirement, and create a broader benefit for society as a whole.

InclusionInclusion

Mike MoriartySenior PartnerA.T. Kearneyy

Inclusion of the ageing population is an essential driver of c us o o t e age g popu at o s a esse t a d e othe healthy society

Exclusion leads to a gap in social and physical health

Too many people excluded will lead to inequalityToo many people excluded will lead to inequality

Exclusion leads to blinkered knowledge, shrunken talent-pool, narrow vision, and short term thinking

Inclusion leads to more and wider knowledge, diversity, long term perspectives, relevance and improved choice—well-being as well as wellness

The human race is becoming an elderly species. Either we allow this revolutionary change to h t k t h thi i h lth d ibl f hi

Possible actions• Inculcate a passion for empathy to eliminate a false “us and them” perspective

happen to us, or we work to shape this process in a healthy and responsible fashion

Inculcate a passion for empathy to eliminate a false us and them perspective • Include the vision of empowering the Ageing consumer into Members’ vision• Explicitly include considerations of consequences, needs and potential of the Ageing

population in the strategic planning process, e.g., marketing, HR, brand & category t d t d l t

27

management, product development

ValueValue

Martin WalkerSenior Director Global Business Policy Council

A.T. Kearney

The Potential Value of the ageing population is enormous –e ote t a a ue o t e age g popu at o s e o ousand not only in money

We cannot afford to exclude their growing market share (up to 30%)

Their numbers will double over the next twenty years and their spending more than doubleTheir numbers will double over the next twenty years, and their spending more than double, although pressure on pensions could also lead to more old-age poverty

They do shop differently, from both a product purchase point and a social point of view

The want to contribute to society, and want to be relevant to the community.

They represent an underused and experienced potential for the workforce.

Possible actions• Understand the value potential better to seize it more effectively• Reach out and involve experts to expand your understanding• Involve the ageing population in focus and planning groups to identify new sources of value• Engage them to capture the value of their desires to contribute to society

29

Social Redesign and Public PrivateSocial Redesign and Public Private Partnerships

Joyce Gallagher Executive Director, Chicago’s Area Agency on Aging

Age-Friendly ChicagoAge Friendly Chicago

Social Redesign and Public Private PartnershipsSoc a edes g a d ub c ate a t e s ps

■ Do not think of the 65+ consumer as “elderly”, and certainly don’t call them that !

■ Ageing consumers want to be respected■ Ageing consumers want to be respected

■ Ageing consumers are not a homogenous group

■ The relative shortage of younger people is going to transform the workplace■ The relative shortage of younger people is going to transform the workplace

■ Career patterns are going to change

■ Governments face stress as populations grow olderp p g

■ CGF members have a unique role in bringing people together

■ It is in the best interests of CGF members to address these issues

■ The Agequake is urgent

31

Do not think of the 65+ consumer asDo not think of the 65+ consumer as “elderly”

and certainly don’t call them that !and certainly don t call them that !

32

A i t t b t dAgeing consumers want to be respectedand are not a homogenous group

33

The relative shortage of younger people isThe relative shortage of younger people is going to transform the workplace

Here are some of the top benefits of hiring older workers:

Loyalty: the older generation of the workforce was brought up during the time of the “dedicated company man.” These older workers are looking to build long-term relationships with an employer and oftenlooking to build long-term relationships with an employer and often exhibit a stronger work ethic than their younger competition;Experience: time and experience are related. Older employees have often used their extended time in the workforce gaining a wealth of valuable knowledge;Connections: in this age of “networking”, older workers have not only experience to offer but years of relationship-building and valuable connections;connections;Fewer Family Obligations: since employees in the 55 and over age bracket are living in an “empty nest”, there are less family obligations and chance of situations arising (i.e., school cancellations, sick children) to affect attendance or performance, and there is the ability and willingness to be flexible with work hours and scheduling;Compromise: since job opportunities are limited for older workers, they may be more apt to take on unpleasant tasks and added

34

they may be more apt to take on unpleasant tasks and added responsibilities, and have learned to “choose their battles” in the workplace.© 2012 The Proactive Employer , Stephanie R. Thomas, Ph.D.

Career patterns are going to changeCareer patterns are going to change

Ages 5-20S h l

Ages 20-30W k

Ages 30-40Time off for

ChildAges 40-50 W k/S h lSchool Work Child

RearingWork/School

Ages 50-55 Ages 65-75

Time off for Caregiving for

P t

Part-Time Work/

Caregiving for

Ages 75+Volunteer

Ages 55-65Work

a Parent Caregiving for a Spouse

35

Governments face stress as populationsGovernments face stress as populations grow older

36

CGF members have a unique role inCGF members have a unique role in bringing people together

It is in the best interests of CGF membersIt is in the best interests of CGF members to address these issues

37

The Agequake is urgent- We Need Your HelpThe Agequake is urgent We Need Your HelpWorld Health Organization Global Network

Chicagok " d i it "� d th " it th t k !"� B th f th t li tl d ib• known as "a garden in a city"� and the "city that works!"� Both of these tag lines aptly describe Chicago as both beautiful and functional and a city always striving to improve upon itself. Chicago is now proud to add the tag, "Age-Friendly"� as it is a new inductee into the World Health Organization's rapidly growing Global Age-Friendly Cities project. We are currently in the process of organizing the structure under which we will assess the eight age-friendly domains of our city.

• Chicago has much to build on as we serve a senior population of nearly 400,000, coming from a variety of cultural and ethnic backgrounds and diverse socio-economic communities.

Eight Domains of Age Friendly Communities: Respect and Social Inclusion- Are public services media commercial industries and faith-basedRespect and Social Inclusion Are public services, media, commercial industries and faith based communities respectful to and accommodate the needs of older adults?

Information and Communication – Are older adults aware of the programs and services available to assist them in their community? Is the system of dissemination meeting the diverse needs of the population?

Civic Participation and Employment - Are older adults able to participate in community decision-making? Do they have opportunity to contribute to the community in paid or unpaid work?

Social Participation- Are older adults able to participate fully in the events and activities they prefer? Do they have opportunity to develop and maintain meaningful networks in their neighborhoods? y pp y p g g

Housing – Is housing safe and affordable and does it allow older adults to stay independent as their needs change?

Transportation – Are older adults able to travel conveniently and safely wherever they choose?

38

Public Spaces – Are older adults able to move around easily and safely in the community?

Health and Social Services – Do older adults have access to social and health services in order to stay healthy and independent?

The impact on our industryThe impact on our industry

Onno FranseProgram Director Healthy Living & Climate Action

Royal Ahold

The CGF Members are uniquely positioned to act in the e CG e be s a e u que y pos t o ed to act t evisionary redesign of a healthy, inclusive society

The CGF has a unique reach to billions of consumers and shoppers, tens of millions of employees, and a powerful role in communities. Our Members reach more Ageing

ft th th i tit ticonsumers more often than any other institution

Members have high impact on individual consumers through product and services. Food for physical health, Beauty and Personal Care for self-esteem

In an increasingly atomized society, food and shopping are two of the few common experiences that build social cohesion

Our members have an unrivalled perspective on both developed and developing countriesp p p p g

Possible actions• Review planning processes to incorporate this vision into strategy, product life cycles and

store design• Go beyond our own companies – we have to engage with value chain partners, society,

and NGO’s• Engage and collaborate with institutional partners such as cities hospitals and planners

40

Engage and collaborate with institutional partners such as cities, hospitals, and planners

Next Steps and Ideas forNext Steps and Ideas for Discussion

Mike MoriartySenior PartnerA.T. Kearneyy

A Common UnderstandingCo o U de sta d g

■ Ageing is huge, easy to miss, but dangerous to ignore

■ Inclusion is key for a healthy society, requiring awareness and mindset about things like respect, trust, valuable member of society, loneliness.

■ The value is in retaining customers by:

■ Training and selecting staff for these value opportunities

■ But also in optimizing longer and changing career patterns

■ Social redesign is the role we can play as an industry to work with others to address the■ Social redesign is the role we can play as an industry to work with others to address the bigger challenges in society like urban design and health care.

■ The consumer goods industry has an unique role it can play in creating value by including and better serving this growing consumer, shopper and employee group.

42

g g g , pp p y g p

Questions?Questions?

Questions?Questions?

To follow-up with questions after the webinar please email Sh Bli h t CGF bli h@th d fSharon Bligh at CGF: [email protected]

The Webinar recording will be available on our website: http://healthandwellness.mycgforum.com/http://healthandwellness.mycgforum.com/

For Additional Informationo dd t o a o at o

The Consumer Goods Forum

45

Thank YouThank You

To follow-up with questions after the webinar please emailTo follow up with questions after the webinar please email Sharon Bligh at CGF: [email protected]

The Webinar recording will be available on our website: ghttp://healthandwellness.mycgforum.com/