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Ryan Reynolds
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Arthur
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Ryan Reynolds
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Arthur
If you think about Ecom today, it's still growing faster than Total Business. And for us or for any other big cpg, that signal of its growing faster should be enough to make it very interesting. In a world where it's hard to grow. There are lots of pieces of information that actually, if you put them together, gives you a good idea of what you can do to positively influence the plans and positively influence the business in the long run.
Sarah Hofstadter
Welcome to today's episode of Brave Commerce.
Rachel Tippograf
I'm Rachel Tippograf, the founder and CEO of Mic Mac.
Sarah Hofstadter
And I'm Sarah Hofstadter, chairwoman of Profiteero Plus.
Rachel Tippograf
And this is a show that talks about what's relevant in commerce for the world's biggest brands. Sarah I think we both work with Danone. That's public information. We're going to bring Arthur onto the show who's become a friend of mine and it's been cool because our relationship started when he was working in the Canada office and then they moved him to the North America headquarters in White Plain, New York. But I think we both can attest to this. There's something so unique about the digital and commerce culture at Danone. I've never seen such an enthusiastic group of employees when it comes to this space.
Sarah Hofstadter
I want to put a fine point on that because it's Danone, us in particular.
Rachel Tippograf
Yeah.
Sarah Hofstadter
We can say branding is a big part of it and big props to Jen Angelus, her amazing culture that built there.
Rachel Tippograf
Yeah.
Sarah Hofstadter
Across org there is a heightened awareness and enthusiasm around the opportunity. So the question is, we talk to so many CPG brands. Some of them are center of store, some of them are in drugs, some are in otc, some are in health and beauty. We have a lot of beauty guests here. But when it comes to the perishable space, it becomes a question as to do you double down on the double digit growth potential or do you say, not my circus, not my monkeys. And Danone has said, oh, we're all in on this.
Rachel Tippograf
It's not just Arthur's team and Jen's enthusiasm. I mean, we have had Linda Bethea onto the show. She's a huge believer. Brian Sappington, their chief commercial officer, he's a huge believer. Like it's top to bottom. Everyone is bought in that digital and e commerce matters, even if it's still 10 to 15% of your total revenue and it's growing faster than anything else that's happening within the organization. And then you look at Denone stock price and clearly the analysts are enthusiastic that Denone is focused on growth.
Sarah Hofstadter
I think it's interesting, if any CPG missed their earnings by 10 to 15%, there would be some serious hell to pay. But you talk about a growth potential, you know, you're talking about 10 to 15% of your revenue is coming from a source that didn't exist, frankly for perishable 10 years ago. And you're saying, wow, this is my growth area. If you missed your numbers by that, you'd freak out. And if you knew that that was within your reach, you would run after it. And not everybody is but the early bird who's catching the worm.
Arthur
Yeah.
Rachel Tippograf
And you're going to listen to this episode and Arthur doesn't just talk about Danone at one point. He also brings up l' Oreal. And I actually think there's a really nice parallel there. One, the enthusiasm from employees, the top to bottom focus on digital and e commerce strategy and execution. And then finally, like a huge emphasis on growth. Like if you talk to a L' Oreal executive. They'll tell you TikTok shop, one of their fastest growing channels. Every single person in that company knows that. The same way that it's known they see E commerce that way. And so I think there's a lot to analyze about these companies, their culture, the talent that they have in the building, and their focus on execution and growth. Well, on that note, let's bring Arthur onto the show. Hello, Arthur.
Arthur
Hi, Rachel and Sara. And thank you so much for having me.
Rachel Tippograf
We're super excited to have you. So, Arthur, I presume you're recording this right now from potentially the White Plains Denone office.
Arthur
Absolutely.
Rachel Tippograf
But you don't have an American accent, so maybe we should start there. Like, where do you come from and how did you end up in White Plains, New York?
Arthur
That's a good question. Actually, I'm still wondering myself. But yes, my accent is from Europe, so I was born and raised in France. I've lived in a few different countries, including Germany and Canada most recently. And I just moved to the US after 10 years at Danone in Canada where I was leading the center of excellence, so leading the media, digital and e commerce team, and now just joined the US Team to lead the E commerce division here.
Rachel Tippograf
You had impeccable timing coming to the US when you did.
Arthur
I came to the US A day before the election, so it's been quite all right. But, you know, interesting to see and to live, actually. So I won't complain that I'm here. I think it's exciting time to be in the US despite everything. Very exciting for me and the family to be here professionally speaking, to be working in such an interesting market and a big country for Danone. So I won't complain. Today during this podcast, let's talk about.
Rachel Tippograf
The market that you're in. You know, when I am following all these CPG analysts, it's interesting Denone continues to get cited as best in class. You're clearly outperforming the category when a lot of the folks in the category are hurting right now. And just based on, you know, following Denone, it feels like it all dates back to 2022, when there was a change in strategy and a renewed focus on growth, but you're in it every day. Like, tell us why you think Denone is outperforming the category.
Arthur
I'll give you my pov.
Sarah Hofstadter
Okay.
Arthur
There are a few things I think happening at the same time. I'm aware of as much as I can. However, you know, there are a few things that are out of my control as well. I'll tell you a couple things. You know, there are things that have changed. Like you said, I think the strategy is one thing and I'll comment on this, but there are things that have not changed and they're equally important, in my opinion. Our mission has not changed and that's the most important thing. And Danone's mission is to bring health through food to as many people as possible. And if you think about the current context, how consumers are changing the trends, it plays a big role in our performance today. We've been true to our mission and we're consistent with our mission in everything that we do. And today it's working and it's working well. And you can expect Danone to double down in that avenue of again bringing healthy products to as many people as possible, making them more available and making them more accessible at the same time. I think, and you talked about it, our president in 2022 shared the renew Danone strategy and this is also playing a big role in Danone's performance today. There are many articles and official documents that can highlight the guiding principle of this strategy, but what I think is working well here is the focus on a few bigger, bolder initiatives and move on all standpoints for the organization, whether it's being super focused on consumer insights, the innovation that we're building against those insights, how we communicate with what are the channels, what are the tactics. I think there's been an extra level of, again, attention and focus in terms of the execution of the mission that I was talking about. And this has been paying dividends, I think, for us in the market. And it's very important for us to keep going in that direction.
Sarah Hofstadter
That makes a ton of sense. Bigger, bolder. Love all of that. You've definitely come to the right podcast for this conversation.
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Arthur
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Sarah Hofstadter
When you think about all of these big changes that are happening and the unique insights that are unlocking that bigger and bolder one of them is shopping behaviors. And so your role from a digital commerce perspective is very interesting in that Danone largely but not entirely plays in the perishable space. And so E Com as it was formerly known was not really big for perishable. However, the role of digital influence opd the whole Omni shopping experience. So big. How does the organization view the role of digital commerce or Omni commerce compared to brick and mortar channels? And I'm asking you specifically for your role in North America because obviously behavior is very different. The UK market and the France market are like radically different from each other. The US market has its own nuances. So how do you guys think about the bigger and older bets and ways of working to support that?
Arthur
It's a super good question Sarah, and I may not have all of the answers, but again, I'll tell you where my head is where my head is at today and hopefully it's going to provide you with a little bit of an answer for your super good question when it comes to, you know, online groceries or even if you double click into our perishable categories, yes, the e commerce space has not been penetrating the consumer base as fast as other things and other categories. If you think about the obvious one like plane tickets, well, everybody buys plane tickets online and now the penetration of e commerce for planes is 100%, maybe 99. Because you know my grandma would still go to the to that little store to buy a Ticket to wherever she wants to go. But you get my point. That being said, if you think about big CPGs and where the world is going today. And of course Covid helped and it was a little bit of an anomaly. However, you know, today the level of penetration for online groceries above the peak of COVID so it helped accelerate the trend. If you think about E Com, to them it's still growing faster than total business. And for us or for any other big cpg, that signal of it growing faster should be enough to make it very interesting in a world where it's hard to grow today. And if you have a space going plus 15, 20%. I don't know what the latest figures are, but last one I I checked from E marketer was like, okay, grow online groceries up plus 15%. Plus 15% is interesting. You know, if you're a CPG where today ecom is probably between 10 and 15% of the total business. So it makes it very interesting hopefully for everyone, but it is for us. And therefore that's the role that we're giving ecom. And you know, I'm not a BCG consultant, but if I were to make a 4 by 4 matrix where the top right is growing and big, well today ecom is probably in the middle section which is growing super fast, but it's not yet that big. Well, we want to put that bubble in the top right corner which is where every bubble should be. And actually this is our objective by investing more online to actually make it a very, very interesting source of growth for the organization.
Sarah Hofstadter
Well, I mean, double digit on anything. CPG is always exciting for us, isn't it? Right? Being able to say that there's a growth opportunity that represents double digit percentage growth. Everybody should be running like a gold rush. And now they did. When Covid hit to your point and talking about our grandparents, my grandparents were instacart plus members like they got with the program and all. But here we are. The opportunity, is it still there? And if it is still there, what needs to be true for us to get the right people to both pay attention and change behaviors?
Arthur
I think it's our role, you know, in the organization and it's always been, if you think about, let's say 15 years ago when there was maybe not even a digital manager working at any of the big CPGs. It's been our role in the organ. And you know, I started 10 years ago, I was leading digital for Canada was a team of two. And our role every day was to explain that you could Get a lot of value by infusing more digital into the plans, you could reach more consumers, you could be more efficient. The exact same thing is happening right now, except that we don't need to break the ice anymore. So actually it's a better position today because there is a belief that digital and E commerce can really bring something to the Org and it's up to us to put in the business cases together and the right test and learn framework to actually share with senior executive that there is a ton of value. And you know, we'll get that buy in because if you can deliver a high level of profitable growth today, it's going to be interesting for everyone. And if you can do that with having an enhanced access to consumer data, media, performance, KPIs, then it's even more interesting. So I feel like we have a big role to play as a digital team, but at the same time, naturally people are looking for those types of opportunities and therefore we have a very, very perfect storm happening right now. You look at companies like l' Oreal and I'm sure you've been digging into their business model and how they operate. They're probably north of 25% of their revenue coming from digital. And look at the stock at the same time, it's been overperforming. So there is a correlation here that I think is interesting. That again is giving us a lot of traction internally. And so business who win are the ones who are going to take a little bit of risk and be, I think, brave on the market.
Rachel Tippograf
There's a lot of people who are listening to the show that are in your exact role. And I'm curious how you navigate something that we hear that they face often, which is here you are, you're focusing on digital commerce for the organization, but the reality is digital is impacting offline sales as well. How do you put yourself in a position for you and your team to get credit for the work that's probably impacting offline sales?
Arthur
It's a good question. It's not an easy one to answer because two things. The first one is there is no perfect measurement model or framework today when it comes to purely with 100% accuracy allocating offline sales to online. So good news because that means we still have a job because our role is to explain that. However, bad news for all of the very precise mathematical people in the org because it's not going to be perfect. So I think there are two things. Back to the previous questions. It's our role to show without necessarily Perfection. But to show that there is a correlation between what we're doing digitally and how the consumers behave and how that translates into sales, whether it's offline or online. The second part is a lot of this can be cracked by some of the tools that you use that are not perfect but are going to give you a good idea of the signals and the behaviors. And Rachel, you work for one of those tools that actually I think can bring a lot of value to some of your customers. But also working with your customers, with partners like Walmart, Kroger, Instacart, Target, there are lots of pieces of information that actually, if you put them together, gives you a good idea of what you can do to positively influence the plans and positively influence the business in the long run.
Rachel Tippograf
You just highlighted the value of digital beyond just driving sales. Using digital as an opportunity to collect signals to indicate overall efficiencies of investments, consumer behavior. Given that media is a really big part of commerce, how do you train the organization to understand that media today can't be said it and forget it, that it really does require real time optimizations to make it work hardest for you?
Arthur
The organization is, is educating today on a pure media standpoint, you know, where trying to invest more, we're trying to invest smarter and therefore to make the ROIs on a pure media standpoint better year after year. Where I see a big challenge, I think for many organizations, including ours, is to stay very focused into what we know would work and what we know is going to help us deliver against the plans and against the objectives. And I'll give you an example, but you know, in today's world, you get 75 different opportunities per minute to do something different than what you had planned. The successful organization are the ones who are able to remove the noise and again stay focused on what is really going to drive the business. And there is an image I use a lot which is a team of kids playing soccer. And a team of kids playing soccer. The ball goes to the left, everybody goes to the left and the ball goes to the right, everybody goes. But there is no strategy. And this is the most common issue that we will face is, you know, there is a new shiny object that pops up and oh, you want to do it because you think it's the right thing to do now. But actually it's not helping on the marketing objective, on the business objective. And this is the big risk today and our role as center of excellence. And I work a lot with my friend Mike who's leading media on the Danon side and our role as center of excellence for E commerce and media is to help keep the team focused on the plans and help keep the team focused on what is really going to drive and move the business.
Sarah Hofstadter
My husband says I use that metaphor all too often, the idea of kindergarten kids on a football field. And so first of all, I would like to thank you for validating. Second of all, as you think about that, especially where retail media is, let's take a, maybe a basketball metaphor as we're in the NBA finals, it is a jump ball, if you will, for retail media. Where and how do you guys think about that organizationally? Is that a sales owned initiative? Is that marketing owned? How do you and your counterpart in media handle that jump ball, if you will? Or is that also an example of kindergarteners on the soccer field?
Arthur
You're right. The rise of retail media is real for good reasons. It provides a lot of benefits. And it's very interesting for us as media leaders or e commerce leaders to look at it with a specific role within the plans. And the solution we have today is we look at it collectively. And there is no choice, in my opinion, but to look at it collectively between the media team, the brand teams, the sales team, the shopper marketing team, because it's such a particular animal in the sense that it can play many different roles at many different stages in the funnel. And if you don't look at it collectively, this is where you're going to make mistake. Example, the Walmart.com search bar is a search bar and it's a competitor to Google today. So if you don't look at it with the media team, then you're not going to do the right thing. At the same time, Instacart sells display, Kroger sells video, Target sells social media. So it has to be part of the total media and marketing plan. And it has to be tackled by a collective efforts of different teams where we can all bring the right POV to the table so that ultimately we again, build plans that make sense and are focused on delivering against the marketing and business objectives.
Rachel Tippograf
Well, Arthur, we could pick your brain all day, but we have to ask you our famous last question, which is, what's the bravest thing you've ever done?
Arthur
Well, I moved to the US the day before the election, you know, so that's one I've always loved, you know, to, to try and, and build who I am by experiences. So on a pure personal standpoint, you know, you know, I left my home country at 21 and I've I haven't been coming back permanently. I go on vacation, but I haven't been coming back permanently. And it's not because I don't like France. I love France. However, it's unbelievable the amount of richness you get from being in a different city, in a different country, working with different people, with different cultures. I don't even consider it brave, but it's something I love doing and that I think has helped me build a lot of connections that are super meaningful to me. So that's a big one. On a pure professional standpoint, I think it's not brave, but doing my job in the day to day and trying to elevate our digital capabilities here, it's not brave. It's my job. But I love doing it and I love to see when. When there is impact coming out of it. So that's what I would say when.
Rachel Tippograf
It comes to team culture. And I think Sarah can attest to this. Arthur, your team at denone, there's so much pride in the work that comes from everyone on your team. And I honestly have never seen it anywhere else. We were recently at a conference together in New Orleans and your team all wore team T shirts. It was the cutest thing. And I think it's a testament to your leadership.
Arthur
They are very, very talented and gifted and they have, they bring a ton of energy. And my job is very easy because of them. And, you know, I'm super grateful of the work of the team and the energy that they bring to the business. And, you know, to me, it's a part of a collective success that we're trying to build together. And right now it's working well. Hopefully we'll keep pushing and keep making good things, but the team is everything and they are doing such an amazing job. So thank you for your kind words. I will for sure share that with.
Rachel Tippograf
Them when the episode goes live. Well, thank you, Arthur.
Arthur
Thank you so much.
Rachel Tippograf
If you like what you heard and you want to dive in a little bit more to denone, you can go listen to an episode we did a year ago with their cmo, Linda Bethia. And if you want to keep thinking about the perishable space, go listen to a recent episode we just did with Sargento's Aaron Price. Thanks for listening.
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Episode Overview
In this episode of Brave Commerce, hosts Rachel Tippograf, Founder & CEO of MikMak, and Sarah Hofstatter, President of Profitero, delve into the dynamic world of eCommerce with their guest, Arthur Sylvestre, President of Danone’s E-commerce Division in North America. Released on June 17, 2025, the episode explores how a leading global brand like Danone leverages digital commerce to drive growth in the perishable goods sector, navigating the evolving consumer and retailer dynamics.
Timestamp: [06:05]
Arthur Sylvestre, originally from France, shares his journey to Danone’s North America headquarters in White Plains, New York. With over a decade of experience leading digital initiatives in Canada, Arthur now spearheads Danone’s eCommerce efforts in the U.S., aiming to capitalize on the burgeoning digital market.
Key Insights:
Timestamp: [07:10]
Rachel commends Danone for consistently outperforming the Consumer Packaged Goods (CPG) category, attributing this success to strategic shifts initiated in 2022 that emphasized growth and digital transformation.
Arthur’s Perspective:
Notable Quote:
“Our mission has not changed and that's the most important thing. And Danone's mission is to bring health through food to as many people as possible.”
— Arthur Sylvestre [07:44]
Timestamp: [13:03]
Sarah Hofstatter poses a crucial question regarding the integration of digital and omni-commerce channels for perishable goods, a space traditionally dominated by brick-and-mortar retail.
Arthur’s Insights:
Notable Quote:
“If you're a CPG where today ecom is probably between 10 and 15% of the total business. So it makes it very interesting hopefully for everyone, but it is for us.”
— Arthur Sylvestre [14:00]
Timestamp: [18:33]
Rachel raises a common challenge faced by digital commerce leaders: demonstrating the impact of digital initiatives on offline sales. Arthur addresses this by outlining the complexities of measuring direct correlations but emphasizes the importance of showcasing the overall value digital strategies bring to consumer behavior and sales.
Key Points:
Notable Quote:
“Our role is to show without necessarily perfection. But to show that there is a correlation between what we're doing digitally and how the consumers behave and how that translates into sales, whether it's offline or online.”
— Arthur Sylvestre [19:02]
Timestamp: [20:42]
Rachel inquires about the importance of real-time optimizations in media investments within digital commerce. Arthur discusses the necessity of maintaining focus amidst the myriad of marketing opportunities and avoiding distractions from "shiny objects" that do not align with core business objectives.
Strategies Highlighted:
Notable Quote:
“The successful organization are the ones who are able to remove the noise and again stay focused on what is really going to drive the business.”
— Arthur Sylvestre [21:11]
Timestamp: [23:03]
Sarah introduces the topic of retail media, likening it to a jump ball in basketball, and seeks Arthur’s perspective on its organizational ownership. Arthur advocates for a collective approach, integrating insights from media, brand, sales, and shopper marketing teams to effectively utilize retail media platforms like Walmart.com and Instacart.
Key Takeaways:
Notable Quote:
“There is no choice, in my opinion, but to look at it collectively between the media team, the brand teams, the sales team, the shopper marketing team...”
— Arthur Sylvestre [24:15]
Timestamp: [26:36]
Rachel highlights the exceptional team culture at Danone, noting the pride and enthusiasm evident among Arthur’s team members. Arthur attributes this positive environment to the talented individuals on his team, emphasizing the collective effort and shared success that drive their achievements.
Notable Quote:
“They are very, very talented and gifted and they have, they bring a ton of energy. And my job is very easy because of them.”
— Arthur Sylvestre [26:59]
Timestamp: [25:15]
In a reflective finale, Arthur shares his personal and professional bravest acts. Personally, moving to the U.S. amidst political uncertainty exemplifies his willingness to embrace change and build meaningful connections globally. Professionally, he finds bravery in consistently advancing Danone’s digital capabilities and witnessing the tangible impact of his team’s efforts.
Notable Quote:
“I moved to the US the day before the election... It's something I love doing and that I think has helped me build a lot of connections that are super meaningful to me.”
— Arthur Sylvestre [25:23]
This episode of Brave Commerce offers profound insights into how a global leader like Danone is strategically navigating the digital commerce landscape to drive growth in the perishable goods sector. Arthur Sylvestre’s experiences and perspectives underscore the importance of mission-driven strategies, focused execution, and collaborative teamwork in achieving sustainable success in today’s competitive market.
For those interested in further exploring Danone’s digital journey, previous episodes featuring Danone’s CMO Linda Bethea and Sargento’s Aaron Price are highly recommended.
Listen to the full episode on Acast and stay ahead in the ever-evolving world of eCommerce.