BRAVE COMMERCE: Danone's Linda Bethea on Balancing Purpose and Performance in a Changing CPG World

Hosted by Rachel Tippograph, Founder & CEO of MikMak, and Sarah Hofstadter, President of Profitero, BRAVE COMMERCE delves into the dynamics shaping today’s eCommerce landscape. In this episode, released on October 29, 2024, they interview Linda Bethea, Chief Marketing Officer of Danone North America, to explore how large Consumer Packaged Goods (CPG) companies balance mission-driven purpose with business performance amidst a rapidly evolving market.

1. Introduction of the Episode and Guest [00:00 - 05:11]

The episode kicks off with Rachel and Sarah setting the stage for an in-depth conversation with Linda Bethea. They highlight Linda’s extensive background in the CPG industry, particularly her formative years at PepsiCo, which has been a common breeding ground for C-suite executives.

2. Linda Bethea’s Background and Leadership Training at PepsiCo [05:11 - 08:12]

Linda delves into her career beginnings at PepsiCo, emphasizing the company's role in shaping her leadership skills. She states, “PepsiCo is a fantastic training ground for leaders. I think they are really, really good at identifying and recruiting talent... [05:32]” (05:32). Linda credits her diverse experiences across different categories and functions—from Frito Lay’s potato chips to beverage portfolios—and the rigorous leadership training programs for her development as a business leader.

3. Danone’s Commitment to Purpose and Performance [08:12 - 10:00]

Transitioning to her role at Danone, Linda explains the company’s unique positioning as one of the largest certified B Corporations. “We truly believe that performance and purpose are intertwined and that you can deliver business results while also delivering the right results for people and planet” ([09:19]). This commitment aligns with Danone’s mission to “deliver health through food to as many people as possible,” a driving force that energizes the entire organization.

4. Danone’s Strategies in a Changing CPG Landscape [10:00 - 16:21]

Linda addresses the volatile nature of the CPG sector, marked by declining volume sales, channel disruptions, and frequent acquisitions. She highlights Danone’s strategic initiative, “Renew Danone,” which focuses on constantly evaluating and refining the product portfolio to stay aligned with evolving consumer trends and macroeconomic shifts. “We have a strategy called Renew Danone, where we're constantly looking at our portfolio and rotating it accordingly” ([16:21]). This approach ensures that Danone remains true to its mission while adapting to market changes through selective divestitures and strategic acquisitions.

5. Consumer Insights and Innovation at Danone [16:21 - 20:19]

Linda emphasizes the importance of consumer-centricity in driving innovation. “We really focus on having that ongoing dialogue with consumers, obviously through our insights team we do a lot of foundational consumer research and ongoing consumer research” ([17:51]). She cites the growing trend of GLP-1 drugs for weight loss and diabetes management as an area where Danone can offer nutritional support, demonstrating their responsiveness to emerging health trends. Additionally, Linda shares Danone's commitment to sustainability with their Evian brand, achieving 100% circular packaging by end of the year ([19:23]).

6. Challenges in E-commerce and Online Selling [20:19 - 21:36]

Addressing the complexities of eCommerce for perishable products, Linda discusses Danone’s strategies to overcome logistical challenges. “We believe in the future of digital commerce. That is where consumers are shopping today” ([20:19]). Danone segments its portfolio based on product type—ambient, frozen, or refrigerated—to optimize online distribution channels and enhance direct-to-consumer (D2C) capabilities, ensuring timely and efficient delivery of their products.

7. Direct-to-Consumer (D2C) and Retail Partnerships [21:36 - 23:01]

Linda elaborates on the complementary roles of D2C channels and traditional retail partnerships. “I think they're complementary. We segment our channels based on the role that they play for each brand in our portfolio” ([21:41]). By leveraging partnerships, such as with Kellogg’s cereal for the Silk brand, Danone creates synergistic promotions that drive basket size and enhance brand discovery. This integrated approach ensures that Danone can effectively reach consumers both through established retail channels and emerging D2C platforms.

8. Teaching Marketing and Evolving Curriculum [23:01 - 25:35]

Beyond her corporate role, Linda is also a professor of marketing. She shares insights on balancing core marketing principles with the dynamic nature of the field. “I view it 100% as a two-way street where I'm learning as much from them as they are learning from me” ([24:25]). Linda emphasizes the importance of maintaining foundational marketing concepts while staying adaptable to new trends influenced by younger generations and technological advancements.

9. Bravest Actions and Personal Insights [25:35 - 27:36]

In a reflective segment, Linda shares her perspective on bravery both personally and professionally. “What I try to practice every day is asking for what you want... Always, always ask for what you want. Be brave and ask the question” ([26:15]). She recounts her adventurous past and highlights the courage it takes to advocate for oneself in the workplace, especially for women striving to achieve their career goals.

10. Conclusion [27:36 - End]

Rachel and Sarah wrap up the conversation by acknowledging Linda’s valuable insights and encouraging listeners to explore Danone’s diverse portfolio. They also highlight other PepsiCo alumni featured on the show, reinforcing the narrative of PepsiCo’s influence in cultivating top-tier leaders.

Notable Quotes:

• “PepsiCo is a fantastic training ground for leaders... [05:32]”
  — Linda Bethea

• “We truly believe that performance and purpose are intertwined...” [09:19]”
  — Linda Bethea

• “I view it 100% as a two-way street where I'm learning as much from them as they are learning from me” [24:25]
  — Linda Bethea

• “Always, always ask for what you want. Be brave and ask the question” [26:15]”
  — Linda Bethea

Key Takeaways:

• Leadership Development: Linda attributes her leadership growth to the comprehensive training and diverse experiences gained at PepsiCo, which equipped her with a holistic understanding of business operations.

• Purpose-Driven Performance: Danone’s identity as a B Corporation underscores its commitment to balancing business success with societal and environmental responsibility.

• Strategic Adaptability: Through initiatives like Renew Danone, the company maintains market relevance by continually assessing and realigning its product offerings with consumer demands and macro trends.

• Consumer-Centric Innovation: Danone leverages in-depth consumer insights and social listening to inform product development and marketing strategies, ensuring alignment with health and wellness trends.

• E-commerce Strategies: Overcoming the challenges of selling perishable goods online, Danone invests in segmented distribution channels and enhances its D2C capabilities to meet consumer shopping behaviors.

• Educational Engagement: Linda’s role as a marketing professor allows her to stay abreast of emerging trends and incorporate real-world experiences into her teaching, fostering a dynamic learning environment.

• Personal Courage: Linda emphasizes the importance of self-advocacy and bravery in both personal and professional contexts, encouraging proactive communication to achieve desired outcomes.

This episode of BRAVE COMMERCE offers a comprehensive exploration of how a leading CPG company like Danone navigates the complexities of modern commerce by steadfastly adhering to its mission while adapting to an ever-changing market landscape.