E: Why do you think that a brand should not stop innovating its products, even in times of crisis?
SD: There are products that are part of your repertoire and that you do not want or should change because they connect emotionally with the consumer. For Danette, for example, the custard is only 30% of the business, the bulk is in the flan because people like it. But if you want a brand to continue, then you launch new flavors. The Snickers version of Danette was very successful, although we are not releasing the original version.
Vegan people will always be lacking in protein so we launched a Silk with protein. It is about giving the consumer the products they are looking for, we have an unsweetened Danonino, we are the first country in the world to have it and that allowed us to have no stamps.
By launching product innovations you are sending a message that the brand is listening to the consumer, that the brand is relevant and does not become the one that only your grandmother grew up with. That is the importance of innovating, that you stay current, but at the same time that you take care of your values over time.
E: How are you doing to get to know your consumer, in different market segments?
SD: We resort to social listening and we learn a lot from the data we obtain through our transactions and the visits we make to 400,000 homes, thanks to the Bonafont en tu casa initiative. We are a global company, and that helps us to always be listening and seeing the trends that come from other places and then land them in Mexico. Not all of them are taken up, first we validate if they are important or not. Monk Fruit – the sweetener they use for Oikos yogurt and a Silk presentation – worked in Mexico, but not so much in Europe. You do information crossings.
I: In what media and channels are your different consumers?
SD: Television continues to be the main medium that reaches us, that is why leaving open TV is not an option, since we want to reach all socioeconomic segments. But we must also be digital, so we allocate an important guideline to platforms such as Facebook, Instagram, TikTok, and to e-commerce with Rappi or Corner Shop.
From the marketing side, we try to combine ATL actions (above the line) with other edges such as the BTL (below the line) to be close to the different targets. We found a Danonino mother in the mass media, but we found a DanUp boy on digital. Each brand has a different mix of media, it is not about changing one for another but about taking advantage of the tools, depending on the segment you are targeting.
E: With which agencies are you working to develop your promotional actions?
SD: We work with the WPP Group agencies, but we also have a team en casa. We bring media, agencies and brands together to be very skilled and quick to respond to each consumer.
E: Did the launches and commitment to distribute liter sizes for the home compensate for the drop in sales of brands such as Danonino and Dany?
SD: The sale of other products due to changes in consumption does not compensate 100% for the fall of Danonino and Dany. When we are at home, consumption habits change a lot; What you give a child in a lunch box you replace at home with a more substantial and plated breakfast. The snack healthy is relegated. On the other hand, preparing a jelly at home is quite simple, so the mother goes from buying it made to making it.
The categories in which we grew the most were those that have to do with plant-based brands, such as almond, coconut and oat milk because they are products that became an essential food. Also, there are many consumers who are looking for healthy alternatives.
As we are the kings of the road breakfast, like the DanUp on the way to university, or the Activia in the morning, because those categories of drinks – and that used to be very strong before the pandemic – have not recovered. The total company in the portfolio decreased in 2020, and now we are closing 2021 with a growth of 2.5% compared to the previous year, but we came from falls of almost 8%.
We are still below the 2019 numbers and a lot will be dictated by mobility and back to schools this year, but they are external variables that we do not control and that can move our estimated numbers. The plan is that at least in 2022 we will reach the volume bases of two years ago.
E: What challenges come in 2022 for the company?
SD: We have three businesses to attend to. Plant-based milk is expanding, in Mexico it only has a 12% penetration in the category at an annual level, so we have a great area of opportunity there. The other is dairy, we want to maintain product innovation in each category in which we compete. And the third is that of waters, where the Bonafont brand is the jewel in the crown and was greatly affected by mobility, but it performed well in the jugs for the home.
Another important issue is that a very large inflationary pressure is coming to us in the country. We have to work hard on the efficiency of our spending in the operation and in our purchases to try to absorb the costs because the easy thing would be to raise the price to the consumer, but we know that their portfolio is not elastic and if we do so we run the risk of leaving its portfolio of brands.
2022 also brings legislative pressure, as there are several regulations and reforms that are having a direct impact on costs. Finally, another issue that keeps me awake is not to stop taking care of people, in Mexico we have a workforce of 15,000 people, it takes a lot of closeness with them to continue developing and keeping them in the company.