Effective innovation

innovacion efectiva

EFFECTIVE INNOVATION

G4-DMA

Purpose

Imagix Model launch in Tresmontes Lucchetti, Chile.

Imagix Model launch in Tresmontes Lucchetti, Chile.

 

To transversally support the achievement of the Organization’s strategic objectives to leverage results. For Grupo Nutresa, effective innovation means the correct understanding of client and consumer needs, resulting in products, services, processes or business models that provide solutions and add value.

Strategy and Progress 2015

Strategy Progress 2015
Implement the innovation strategy and structure the governance model. ico_f_verde

Progress was made in creating the Corporate Innovation Committee.

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Plans and persons responsible to implement the new strategy were defined.

Strengthen Innovation Programs: Innovative Success Stories, Exemplary Practices, Innovative Solutions and Out of the Box. ico_f_verdeOscuro

Nine innovative challenges were launched.

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Two winning projects were selected in the second Out of the Box summons.

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A total of 3,406 Innovative Success Stories were recognized.

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Six exemplary practices were rewarded.

Build the portfolio of Grupo Nutresa innovation projects. ico_f_verdeA

A portfolio of projects was built with the participation of all the businesses, prioritizing those with high impact and joining forces to implement transversal initiatives.

Consolidate the culture of knowledge management. ico_f_amarillo

Tools – such as Learning with the Expert, Transferring Exemplary Practices and Innovative Success Stories, workshops on lessons learned, and events such as Imagix Moments, Chocoinnova, Coffee Conversations, Coffee & Friends, Talks with the Expert, among others –aimed at ensuring the cycle of knowledge management and motivating its application by employees, were strengthened.

Results 2015 compared to 2020 goals

Indicator

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Innovation Sales

Mega 2020

15%

Results 2015

16.9%


Innovative Success Stories / Employee

0.3

0.2

Risks and Opportunities

Innovative Successes event. Servicios Nutresa.

Innovative Successes event. Servicios Nutresa.

 

Grupo Nutresa identified some risks related to the implementation of effective innovation, against which it has monitoring and prevention mechanisms. One of these risks is the possibility of not reading changes to the environment, represented in legislation, provisions on packaging, intensive use of resources, price and availability of raw materials and commodities, among others in a timely manner.

For the Organization, it is a priority to act with the same dynamics as the environment demands. It is also a risk to understand innovation only from the perspective of the product or concentrate on one type of business without new innovative models. To counter this, prospective processes are being developed in the different businesses to act early, be prepared, be leaders in the food sector and set trends.

Motivation for intra–entrepreneurship, the articulation of internal and external innovation networks and the development of a flexible network of operations are evidenced as great opportunities to achieve regional results in terms of developing capabilities and approving products.

Within the ongoing analysis that is made in innovation, there is also evidence of the opportunity to learn from experience and error, retain key talent and safeguard sensitive information as variables that affect the Organization’s ability to generate value. Therefore, Grupo Nutresa has a knowledge management process that seeks to maintain, transmit and develop knowledge.

Finally, the engine of innovation is human capital; for this reason, it is very important to maintain the dynamics and motivation of innovation programs, for which we have recognition events, such as Exemplary Practices, which make visible the results of outstanding projects that have potential for replication in the other businesses.

Future Perspective

Chocoinnova innovation session. Compañia Nacional de Chocolates.

Chocoinnova innovation session. Compañia Nacional de Chocolates.

 

By 2020, in addition to the commitment to achieve innovation sales of 15% of Grupo Nutresa’s total sales, we seek to achieve 0.3 Innovative Success Stories per employee.

The biggest challenge is to continue implementing the new innovation strategy and ensuring the short–, medium– and long–term management of the project portfolio. Similarly, there will be greater emphasis on innovation with a focus on social and environmental matters; innovation incentives and recognitions will be renewed. G4-EC8

It is also a big challenge to generate strategies that permit acting in the face of legislative developments in the regions where Grupo Nutresa operates. Intra– and extra–entrepreneurship will be incorporated into innovation management and a global vision with local action will be developed.

In the search for greater profitability for the businesses, alternative, differentiating technologies will be integrated to reduce dependence on raw materials and high fluctuation commodities.

Assuming these challenges in a timely manner, Grupo Nutresa will maintain its leadership in the region and be prepared to face the challenges that the market presents.

The indicator G4-EC8 is linked to the goals SDG 1 SDG 2 SDG 3 SDG 8 SDG 10 SDG 17

Remarkable Achievements

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  • One success story to highlight is presenting innovation projects of the businesses, in order to have complete visibility of the initiatives regarding innovation focused on social and environmental sustainability, large foci of innovation and the impact they have on the Mega 2020 goals. These are projects that can be worked transversally, in a balance between the short, medium and long term, and global thinking without losing the connection with the local. G4-EC8

 

  • The Biscuit Business and Servicios Nutresa finished their future vision exercises. So far, five businesses have done this work. The Pasta and Coffee Businesses and the marketers began their in 2015.

 

  • The Vidarium Technological Surveillance team and the businesses consolidated a radar of trends in nine dimensions that will define innovation initiatives and projects. In 2015, 46 technological watchers were formed enriching the work, for a total of 74 watchers.

The indicator G4-EC8 is linked to the goals SDG 1 SDG 2 SDG 3 SDG 8 SDG 10 SDG 17

Progress 2015

INNOVATION AS A GROWTH ENGINE

Innovation as a Growth Engine

CULTURE

Our Innovation Programs

Soluciones innovadoras Innovative Solutions: This is a program that seeks to leverage extended innovation capabilities in the Organization’s human capital. To do this, challenges are shared in the businesses and there are calls for employees to participate to find innovative solutions from their knowledge and proposals.

39 challenges llaunched since the beginning of the program. 597 solutions received.

Exitos innovadores

 

Innovative Success Stories: This is a program to participate in formulating and implementing ideas through which the continuous development of Grupo Nutresa’s human capital is encouraged. In 2015, 3,406 Innovative Success Stories were achieved, represented as 0.2 per employee. In addition, the innovation model was launched in Tresmontes Lucchetti.

Out of the box

 

Out of the box: The second call of the venture capital program was launched; 40 radical innovation projects were received, two were rewarded and resources were allocated for their implementation, which will begin in 2016.

Innovation Promoters: Human capital is key to consolidating effective innovation. For this reason, Grupo Nutresa has 376 promoters, who have been trained in innovation techniques such as Design Thinking, magazine cover, DTV and SCAMPER, among others. The group of promoters is found throughout the strategic region; noteworthy are the trainings held in Costa Rica and Chile, where 55 new promoters were formed.

Innovation promoter training in Medellín, Colombia.

Innovation promoter training in Medellín, Colombia.

In Grupo Nutresa, innovation is awarded.
Exemplary Practices Awards Grupo Nutresa, second semester.

Exemplary Practices Awards Grupo Nutresa, second semester.

Exemplary Practices: This is a program that recognizes experiences in management and projects, with superior results that are replicable in other businesses.

Since the program’s inception in 2007, 36 Exemplary Practices have been rewarded; in 2015, the following were recognized:

  • Self–Development (SD) Labs.
  • Integration model for work teams in real time for digital media marketing campaigns.
  • The Leader’s Bag.
  • Novaventa in Your Hand.
  • SCRUM: A collaborative work culture of highly effective teams.
  • Healthy Space: A program to prevent and control childhood obesity in public schools.

Research Award: In 2015, the V Grupo Nutresa Research Award was held. It seeks to promote the research culture to consolidate it as one of the fundamental processes of the Imagix model and continue strengthening the intellectual capital Grupo Nutresa has.

According to the mechanics of valuation, projects presented to the call of the award are evaluated by academic peers; the three with the highest scores are awarded. In the fifth edition, 12 projects were presented and the following were awarded:

  • First Place: Integration of phenomenological models by developing a simulation tool for multi–stage thermal processes in cold cut products. The Cold Cut Business.
  • Second Place: Reduction of acrylamide in a flavored cracker by using asparaginase. The Biscuit Business.
  • Third Place: Effect of the application of a sealant on the hardness of beef. The Cold Cut Business.

Sustainable Nutresa: The II Annual Sustainability Event was held, which recognizes those Innovative Success Stories that have positively impacted the sustainability of the business in any of the three dimensions (economic, environmental and social) and which – in turn – can be replicated in other Grupo Nutresa businesses. During the event, ten Success Stories were presented for their contribution to sustainability; of these, three were exalted for their high impact.

Reception of the Sustainable Nutresa award at Meat Business.

Reception of the Sustainable Nutresa award at Meat Business.

PROCESSES

Prospective
Five prospective exercises have been conducted for the Chocolate, Ice Cream, Cold Cut and Biscuit Businesses and Servicios Nutresa.

Intellectual Property (IP)
Intellectual capital management is a strategic process that supports innovation, since it permits the protection and preservation of knowledge generated, the identification of key technological trends in planning and prospective exercises, and the reduction of risks of infringement of third–party titles. Surveillance enables the establishment of boundaries of knowledge of competitors. Intellectual property maintains competitive advantages and is increasingly more relevant within the Imagix innovation model.

Knowledge Management
Synergy Communities Annual Event.

Synergy Communities Annual Event.

Impulsar la evolución de las comunidades de sinergia en su curva de madurez Promote the development of synergy communities in their maturity curve
Synergy Communities (4º Encuentro Anual de Comunidades de Sinergia) Everything Has a Purpose, which featured the Kankawarwa cocoa community from the Sierra Nevada de Santa Marta. In this space, synergy communities – inspired in the knowledge of the Arhuaco Indigenous community – rethought their purposes to continue evolving and adding value to Grupo Nutresa.

Logistics team at the Synergy Communities Annual Event.

Logistics team at the Synergy Communities Annual Event.

Strengthen a 2.0 culture that encourages collaborative work and knowledge management
The Campus Nutresa collaborative work and participation network continued to grow in 2015 and reached 3,500 users, thanks – in part – to the development of an Endomarketing plan that included training activities, the Social Business for Productivity conference with storyteller Louis Richardson, training for managers, network management with synergy communities and a Champions Program, employees who are active in this social network and share contents that are interesting for the Organization.

Research
Innovation is based on knowledge, such as intellectual capital; for this reason, in Grupo Nutresa research processes are strengthened throughout the logistic chain, with formal approaches to the development of lines of scientific research in processes, food matrices, consumer behavior, nutrition, food and health. The Organization has a broad portfolio of research projects that will be evident in the medium and long term of the different businesses.

Seventh Academic event of Vidarium.

Seventh Academic event of Vidarium.

FRAMEWORK FOR ACTION

Implementation of the innovation strategy
During 2015, the implementation of the innovation strategy was begun, with advancement in the creation of the Corporate Innovation Committee and the definition of the portfolio of Grupo Nutresa innovation projects.
In addition, work plans and persons responsible to execute the projects proposed by the new strategy were defined.

Innovation in the DJSI
For the fifth year, Grupo Nutresa is part of the Dow Jones Sustainability Index. In the chapter on innovation, the Company stands out as one of the best in the food sector, thanks to its practices in innovation management and research and development.

Innovación en el Dow Jones

RESOURCES

The Organization allocates economic resources and human capital to drive innovation.

The investment in R + D + I was COP 39,727 millions
204 people
exclusively for innovation.

Product Innovations Grupo Nutresa

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CHOCOLATES

Chocolate corona RESEALABLE CORONA CHOCOLATE, IN TABLETS
Seeking to generate differentiation inspired in consumer awareness, Corona Chocolate launched its new “resealable tablets,” with easy–open–and–close packing that improves product conservation in the household pantry and individual tablets that do not need to be cut. In the post–launch study among consumers, this innovation has attributes of practicality, safety and comfort.

Jumbo Dots JUMBO DOTS
The Jumbo brand presented a new way to eat with Jumbo Dots, attracting young people with the taste of Jumbo chocolate and the concept of snacking in both individual presentations and packages to share. With this reference, the brand entered and led the chocolate–covered peanut segment, doubling the value of this segment in Colombia.

Nueces Tosh TOSH NUTS
Tosh launched its line of nuts to capitalize on the rapid growth of the segment and its healthy perception by consumers. This launch attracted new consumers to the brand and the category.

Mezcla de nueces CRUJI MIX NUT MIX
The growth of nuts is primarily in the segment of mixes. For this reason, La Especial launched its new Cruji Mix, an irresistible mix with a crunchy texture that makes it different and unique in the market. Cruji Mix was initially launched as a limited edition, but became a line product due to its good acceptance.

Olé Olé crunch OLÉ OLÉ CRUNCH
At the request of young Peruvians, Olé Olé Crunch was launched; it is a combination of a chocolate–covered marshmallow with crunchy cereal. This was a successful combination for the brand and a novelty for the world of cravings.

Nucita Patitas NUCITA PATITAS
Nucita Patitas was launched in the Mexican market in July 2015. It is the creamy sweetness that combines Nucita’s three known flavors: chocolate, vanilla and strawberry in a fun, colorful container to play with while enjoying its delicious taste. This was an innovation that – in only five months – became the fourth reference in Nucita sales, strengthening its position in current consumers and attracting new consumers to the category.

ICE CREAM

Fruit Mix de POPS POPS FRUIT MIX
The POPS Ice Cream Parlors in Costa Rica began selling a new product category requested by consumers, who are increasingly more conscious of their health. The fruit smoothies offer enjoyable, healthy combinations of various fruits, which can be mixed with ice; yogurt and/or ice cream may also be added, an alternative loaded with lots of pleasure and health.

Polet edición especial Metales Preciosos POLET PRECIOUS METALS SPECIAL EDITION
The “Polet Precious Metals” special edition became big news in the last quarter of 2015. Its chocolate coatings, inspired in fine chocolate that uses this type of coatings, was the motivator to present this product to the market. The Polet brand, based on values of luxury, pleasure and aspiration, combined delicious creamy ice cream, with additions of solids and covered in metallic chocolate. Nearly three million units were sold in three months. Polet, a new way to live and feel the greatest pleasure.

Nueva Aloha Mix NEW ALOHA MIX
The new Aloha Mix combines a refreshing taste with the indulgence of condensed milk but with only 60 calories per unit, thanks to the special development of its low–calorie sweetened condensed milk. Refreshing and enjoyable is how consumers describe it. The new Aloha Mix established record sales in the brand’s special popsicle line, selling 11 million units in 2015.

Helado Festival FESTIVAL ICE CREAM
The new Festival Ice Cream Sandwich is the perfect combination of three rich pleasures: Crem Helado vanilla ice cream, the Festival cookie and chocolate. Its delicious vanilla ice cream also contains sparks of flavor that increase pleasure in every bite; when mixed with the cookie and the chocolate, it becomes a feast of flavors and textures. This product reached consumers for only COP 1,000, becoming a major success in sales in 2015, with more than seven million units sold in less than four months.

COLD CUTS

PractiSánduche Zenú PRACTISÁNWICH ZENÚ
Zenú surprised the market once again with a practical, delicious, reliable product. Practical because a single product in a single package offers the perfect combination for a unique sandwich. Delicious because it has the quality of Zenú sandwich ham, made with 96% fat–free pork leg. It also has Alpina Sabana Cheese, a fresh, semi–hard cheese with uniform texture and smooth taste. And reliable because it is backed by the union of these two expert brands, leaders with extensive experience in the Colombian market. Besides satisfying consumer needs, this launch aims to strengthen Zenú in the ham segment, the second most important of the category.

Temporadas especiales SPECIAL SEASONS
In order to boost the Christmas season with a multi–brand proposal under the concept of “Celebrating Together Makes Christmas Bigger,” Zenú, Ranchera and Rica offered consumers new products through the direct–purchase, large chain and traditional channels. Zenú has the Pork Bondiola in its innovations, in the category of cold cuts and Chicken with Antipasto and Smoked Ham in the long–life category. Meanwhile, Ranchera surprised consumers with the Ranchera Corona, a special mix of beef and pork for grilling, seasoned with spices such as pepper and paprika to achieve the exquisite taste of Argentinian chorizo. And Rica offered Artisan Pork Leg, a delicious sliced product, packed in a practical tray to accompany any special Christmas moment.

Nuevo empaque Pietrán PIETRÁN NEW PACKAGING
Pietrán, the Cold Cut Business’ premium brand, launched a new packaging that responds to consumer needs and ensures a more competitive position in the market. The packaging consists of rigid trays with easy–open–and–close lids that offer multiple benefits to consumers: it allows better handling of the product, it has a large front window that provides confidence and security because consumers can verify the freshness of the ham, and it is a useful packaging because it is not necessary to change the container after opening. Pietrán was the first brand of cold cuts in Colombia to bring this new packaging that has reinforced the attributes that consumers recognize: status, innovation, protection, convenience and confidence.

Edición especial Ranchera picante SPECIAL EDITION SPICY RANCHERA
To please Ranchera consumers looking to get out of the routine, satisfy their cravings and enjoy different experiences in flavors and textures, the brand launched its special edition Spicy Ranchera, a sausage achieved with the secret Ranchera formula and special additions of jalapeños. The brand successfully achieved consumer satisfaction and met the sales budget goal in three weeks.

Salchicha Rica y jamón Cunit RICA SAUSAGE AND CUNIT HAM
In order to reach price–sensitive buyers, Rica launched a new 684–gram frankfurter–type sausage; Cunit offered the Northern Region a new ham in 230– and 400–gram presentations. With these products, Rica and Cunit fulfilled their promise to be cost–benefit brands that offer a reliable option with good tasting, quality products, while leveraging the Business’ growth axis.

PASTA

Spaghetti Doria Sabor Chorizo DORIA CHORIZO–FLAVORED SPAGHETTI
Doria launched Chorizo–Flavored Spaghetti, with all the sausage flavor Colombians like. Practical and easy to prepare, it can be enjoyed alone or accompanied by the most delicious grilled or microwaved typical dishes.

Doria Kids – Play Doh “Con la pasta si se juega” DORIA KIDS – PLAY DOH “YOU CAN PLAY WITH PASTA”
Doria Kids got into the market with two excellent choices for food and fun: Zoo and Sports with Cheese, the pasta with shapes kids prefer and high nutritional content. Doria Kids included a can of Play Doh, undoubtedly the best way to stimulate creativity.

Calamari CALAMARI
Looking to give consumers relevant, differentiating news, an exclusive product was developed for the Novaventa Catalogue. It is Calamari, a ring–shaped pasta that – besides having Durum wheat – is made in bronze molds, which give it that special texture that characterizes one of the best pastas in the world.

Linguine #7 LINGUINE #7
In June 2015, Linguine #7 was launched. It is oval shaped that – compared to (flat) Fettuccine and (round) Vermicelli Spaghetti – is ideal to complement the portfolio of long pasta and have the shapes most preferred by consumers.

Doria Selecta DORIA SELECT
To make each moment a special occasion, Doria launched two new figures: Spaghetti No. 5 and Nests. Made with 100% highest–quality Durum wheat, they are an excellent option for consumers looking for new, top quality recipes.

BISCUITS

Tosh Semillas andinas y arándanos TOSH ANDEAN SEEDS AND CRANBERRIES
Tosh continues progressing to lead the development of healthy lifestyles by launching new biscuits that offer consumers different options for care and enjoyment at the same time. The new biscuits are made with chia seeds, quinoa, cranberries, among other whole grains, which are ingredients that provide nutrients such as fiber, omega–3, antioxidants, protein, calcium, vitamins and even anti–inflammatory properties. This innovation continues to strengthen the biscuit segment in which Tosh is present in 42.3% of Colombian households.

Festival y Minichips crecen con la licencia de Minions FESTIVAL AND MINICHIPS GROW WITH THE MINIONS LICENSE
As the leading brand in the children’s sweetmeat segment, Festival is challenged to constantly differentiate and innovate. In 2015, together with Minichips, it was inspired by one of the most important children’s films of the year: Minions, developing a strategy that included the massive promotion with collectible stickers, innovation with the new “Citrus Fruit” flavor, and offering prepacks of thermoses alluding to the movie. With this strategy in Colombia, sales grew 22%; in Ecuador, 28% vs. the same period last year (June, July and August), fulfilling the budget at 110%. These figures contributed to Noel’s achieving a record high market share of 56.1%.

Navidad Noel NOEL CHRISTMAS
The growth in Christmas sales each year is given through innovation products. The presentation of chests has great relevance in the portfolio, being the gift of tradition to share magical moments with family and friends. For the Christmas 2015 portfolio, in addition to the traditional chests with new designs, the new Snowman chest was launched as a decorative element, which may then be used as a bank, continuing the strategy of presenting products for subsequent use and special recreation to connect with children.

Merendinas Choco Bum y Choco Boing CHOCO BUM AND CHOCO BOING MERENDINAS
During the first half of 2015, the new Choco Bum and Choco Boing Merendinas were launched. They are sweet baked chocolate–flavored cakes filled with caramel and vanilla cream that entered to strengthen the portfolio of individual presentations of Merendina for a competitive offer in the market. These products are sold in Costa Rica, Guatemala and El Salvador with a very positive impact, allowing greater visibility of the brand in the traditional channel.

AbiMar incursiona en el mercado de las crackers ABIMAR ENTERS THE CRACKER MARKET
With the inauguration of the cracker plant in the United States, AbiMar Foods entered the American market with Saltine Crackers and Snack Crackers, under its TruBlu and Lil’ Dutch Maid brands, with formats made for the American market, offering variety and versatility to clients and consumers.

TMLUC

Gold Creamer GOLD CREAMER
This is the extension of the Gold brand in the coffee creamer market, in original, vanilla and chocolate varieties.

Kryzpo Horneados BAKED KRYZPO
This is Tresmontes Lucchetti’s principal launch in 2015, entering the cracker market with the Kryzpo brand and its varieties Cricket, MiniPizza and Croc.

Zuko Light ZUKO LIGHT
This is the revival of the Zuko low–calorie version, the leading brand in the instant beverage market. All of Zuko’s flavor with 0% sugar and calorie free.

Livean Tea LIVEAN TEA
This is the extension of the Livean brand of ready–to–drink (RTD) beverage teas, with tea antioxidants and 0% added sugar.

Lucchetti Canelones y Talliani Concciglionni LUCCHETTI CANELONES AND TALLIANI CONCCIGLIONNI
Both are specialty pastas to stuff, with greater added value for consumers, produced by Doria for Lucchetti Chile.

COFFEE

Colcafé 3en1 COLCAFE 3 IN 1
A mix of instant coffee, cream and sugar, lactose, cholesterol and trans fat free, it has 90 calories per portion. Its preparation is convenient, as it only requires water to enjoy a delicious, creamy coffee in just seconds. It comes in the family presentation of 20 portions and is the only product on the market in individual packets. The product has had high acceptance, as it is considered delicious, practical, convenient and affordable for consumers.

Matiz Nariño MATIZ NARIÑO
Grown in Nariño, one of the most recognized Departments in the world for growing specialty coffees, between 1,300 and 1,800 meters above sea level, in volcanic soil, with a mixture of the Caturro and Colombia varieties, it is sun dried, allowing consumers to enjoy a coffee with an intense fragrance and aroma with sweet, floral and lemongrass notes. It offers a cup with a fine balance between acidity and body, with a long, lasting aftertaste.

Sello Rojo 600g SELLO ROJO 600g
This is an extension of the line that was launched exclusively for the chain–store channel, aimed at increasing the value of the transaction in the standard ground–coffee segment, decreasing the price war between distribution channels and offering consumers a differentiated presentation with a smart price gram for gram. It comes in a family–size presentation and yields 120 cups.

RETAIL FOOD

Festival de malteadas MILK SHAKE FESTIVAL
The Hamburguesas El Corral Milk Shake Festival is part of the Company’s history that each year provides new, innovative flavors. In 2015, clients chose the Milk Shake Festival flavors; the five flavors chosen by Facebook fans were Belgian Chocolate, Caramel, Tres Leches, Cheesecake and Passion Fruit.

Hamburguesa Corral Artesanal CORRAL ARTISAN HAMBURGER
The crafted hamburger is prepared with a delicious, fluffy, soft artisan bread, evoking bread made by hand at home, with a delicious flavor, less fat and fewer calories than tradition hamburger buns with sesame seeds. The meat used – 165 grams of juicy beef – is larger than meat in a Corral. Crisp, fresh lettuce, juicy, red tomatoes and a different touch of sweet red, slightly spicy onion rings are added. It is grilled to perfection basting it with the original BBQ sauce, taking care that it is cooked medium well (3/4), leaving it juicy and very tasty. The perfect accompaniment is French Fries.