Note: This article was originally posted by Rafaela Sousa in Refreshment magazine by FoodBev Media and can be accessed here.
In this interview, Scott Johnson, newly appointed EVP of strategy and development at Enliven and former SVP and GM of the foodservice business unit at Keurig Dr Pepper, unpacks insights into the rapidly evolving beverage industry.
With 30 years of experience in foodservice and beverage negotiations, Johnson shares how his extensive background guides his strategy at Enliven, focusing on driving growth, adapting to shifting consumer trends and navigating regulatory challenges in an increasingly competitive market.
Congratulations on your new role at Enliven! What motivated your decision to transition into this role and how will your experience at KDP influence your position at Enliven?
After 30 years serving customers at Keurig Dr Pepper (KDP), I contemplated where my experience in foodservice and fountain negotiation could provide the most value. Having led the KDP foodservice team and reviewing our deals with nearly all large foodservice and convenience customers, I know that experience will be a great benefit to Enliven customers.
What is your vision for Enliven and how do you plan to drive growth and innovation within the company?
To really impact the bottom line in the beverage business, it’s not just about negotiating competitive deals, but growing beverage sales. What has drawn me to Enliven is the comprehensive life cycle management of beverage contracts for the customer, driven by robust data and analytics. With those tools we will drive a strong beverage support programme through execution of all contract commitments, volume tracking and analytics, payment fulfilment and category management excellence – all to maximise sales over the term. Providing this level of service is an incredible value that, if understood and valued properly, will deliver many growth opportunities.
How has your experience in the beverage space helped you to navigate through a volatile and rapidly changing retail service environment?
This industry has had massive changes over time – particularly related to bottler consolidation and the improvement around the route to market distribution. This has positively impacted foodservice operators. Alongside these efficiencies by the beverage companies have come increasingly competitive support for pouring rights deals in many channels. The sharing of revenue back to customers as a result of this competitive landscape has created an advantage for some channels or chains and left opportunities for others.
Are there specific strategies or initiatives that you plan to implement in your new role?
The message I will share with our clients will be the same message that I shared on the supplier side at KDP. A foodservice customer can get the best financial deal and offer the best variety to maximise sales. At Enliven, we utilise strong data and analytics to maximise the value of the deal, but importantly, focus on the possible larger impact of maximising sales with strong programming and selling customer-preferred brands.
In your opinion, how are changing consumer preferences, such as the shift towards healthier and more sustainable options, impacting the beverage industry? What do you think are the solutions here?
Consumer preference is dramatically affecting the innovation outlook of the industry. Suppliers that are offering solutions that meet these consumers’ evolving demands will continue to win whether it is in functional benefits or healthier low/no sugar offerings. This needs to be balanced with the consumer’s desire for indulgent flavours. Consumer and corporate demands will continue to challenge the beverage industry to provide more environmentally friendly packaging, as we’ve seen recently after the Paris Olympics.
How is technology transforming the beverage industry, from production to distribution?
The focus on supply chain systems and economics as a result of significant stress during the Covid-19 pandemic has fundamentally changed the efficiency and reliability of the entire supply chain – to the benefit of the large manufacturers and their customers. Considering these efficiencies alongside an environment of inflation and large price increases, it calls into question how reasonably these savings have been shared back to the trade.
Do you think innovation is slowing down in the beverage industry?
Innovation is not slowing down in the beverage business. One simply needs to visit Whole Foods or Central Market and look at the amazing innovative beverages being introduced. What has not evolved are beverage options in foodservice, which in many cases do not look meaningfully different than in the nineties. Evolving beverage choice is a significant opportunity in foodservice to meet the changing consumer landscape. The good news is that there are solutions that can be implemented.
How do evolving regulations around health, safety and environmental standards affect the beverage industry? What advice would you give to clients navigating these regulatory challenges?
Beverage companies have made significant progress over the past ten years related to overall calorie reduction, lower average sugar content per serving and portion size options. Additionally, efforts to create more environmentally friendly packaging have created positive change.
That said, there is still a lot of work to be done. While the pace of change is driven by consumer preference, much can be done by retailers to offer a strong variety of products with health and functional benefits and alternative packaging. Foodservice chain customers can affect supplier behaviour and consumer acceptance by challenging the status quo of what suppliers are offering.
If beverage companies resist offering the right variety of products, there are an innumerable number of innovative products available that can provide the variety needed. Clients should aggressively push to bring that variety to their consumers and align with their company values.
The foodservice industry has faced significant changes, especially post-pandemic. What is your outlook on the future of foodservice?
The future of foodservice is incredibly strong. Competition will continue to increase and cost of goods challenges will mount, but consumers will continue to look for convenient and satisfying options that align with their lifestyle. Chains that have adapted to the new world of more meals provided for take-out, delivery and drive-thru are ahead of the game. Those who have found ways to drive ticket averages by including side items and the right variety of drinks to complement the full meal will be rewarded.
You played a key role in making the Dr Pepper beverage a hit in the US, could you share your recipe for success? What advice do you have for other beverage companies looking to scale new heights?
Creating an organisational culture that is curious to learn and innovate with the customer in mind, and delights in being a part of a close-knit team that celebrates each other’s success, makes challenging work rewarding and fulfilling. Importantly, having the pleasure to sell a strong brand also goes a long way!
Related Resources:
10 Risk Management Strategies to Build Into Your Beverage Deal
