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29 November 2022
CEO hires at Sephora, Revolution Beauty, US Foods
On the Move has a handful of leadership updates in ecommerce and retail
On the Move has a handful of leadership updates in ecommerce and retail
Welcome to On the Move. Every week, The Current is rounding up the comings and goings of leaders at brands and retailers across the ecommerce, retail and CPG landscape.
This week, top executives are joining brands, retailers and tech companies. Amid the handful of hiring moves, companies that had interim CEOs in 2022 now have permanent leaders heading into 2023.
Take a look:
Guillaume Motte is the new CEO of Sephora, the beauty retailer announced in a LinkedIn post this week. Motte is an insider at LVMH Group, which owns Sephora, and is currently deputy CEO of the LVMH Fashion Group. Motte succeeds Chris de Lapuente, who assumed the CEO role in June after the departure of Martin Brok. “I have no doubt he will continue to build Sephora into the extraordinary premium beauty retailer we envision,” de Lapuente said of Motte, in a statement.
Guillaume Motte (Photo via LinkedIn)
Christine Barone is joining drive-thru coffee business Dutch Bros as president. Arriving in the first quarter, Barone will report to Joth Ricci, who will remain as CEO. Since 2016, Barone previously served as CEO of restaurant and lifestyle brand True Food Kitchen. Dutch Bros is aiming to expand to 4,000 shops in the next 10-15 years. Ricci called Barone “a well-respected industry leader known for her incredible strategic and operational skills.”
Dave Flitman was named CEO of foodservice distributor US Foods, effective Jan. 5, 2023. Flitman brings more than 35 years of experience in manufacturing and distribution across multiple industries, including food distribution. He previously served as CEO of building products supplier Builders FirstSource, BMC Stock Holdings and foodservice distribution company Performance Foodservice. Flitman will step into the top role at US Foods following the departure of Pietro Satriano in June.
Dave Flitman. (Courtesy photo)
Bob Holt will become the CEO at Revolution Beauty, assuming the permanent position after leading the brand on an interim basis since mid-October. Holt stepped in after Adam Minto stepped away from day-to-day duties amid an accounting probe and later resigned. Holt brings experience leading a turnaround at SureServe Group and growth at Mears Group.
"Over the past six weeks I have seen first-hand the quality of people working at Revolution Beauty, the overall popularity of the brand and innovation of products for customers around the world,” said Holt, in a statement. “I believe there is a huge opportunity for the business as it moves ahead and I am confident that, together with the team, we will drive the business forward."
Peter Karpas was appointed CEO of Bold Commerce, a software company that provides checkout and subscription experiences for DTC brands and omnichannel retailers. Karpas brings experience from PayPal, Intuit and First Data, having worked in leadership roles and on new product launches across ecommerce, payments and fintech. In the CEO role, Karpas will succeed Bold Commerce cofounder Yvan Boisjoli, who is set to focus full-time on guiding business development and strategic partnerships.
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.