Etienne Thil: Genius of Generics

"There is no time for waste and advertising claims, for fancy packaging and pretty names... The time of the brand cult is over."

With the launch of Produits Libres (free products) in 1976 in France–or generics as they were known in the U.S.–Etienne Thil as director of marketing for Carrefour Hypermarkets in France helped to free European consumers from the tyranny of the high prices of national brands.

In his early print advertisements for Produits Libres, Thil challenged French consumers to reconsider their commitment to high–priced national brands:

“One is made to believe that a product is better simply because it is expensive. Is this freedom? One is made to believe that a product is better simply because it has an attractive package. Is this freedom? One is made to believe that a product is better simply because it has a name. Is this freedom?

“Here are the free products with no name; as good as and less expensive [than the national brands]–from Carrefour.”

The French retailer spent 30 million francs to promote the launch of Produits Libres in April 1976–which at the time represented one–third of its annual advertising budget. In addition to advertisements in the consumer press, the No Name products achieved extensive “free press” by winning the hearts and minds of French journalists who at the time of their launch lionized Produits Libres as an “immediate and colossal success.”

The first wave of No Name products included 50 products and involved food and nonfood French household staples such as bread, pasta, chocolate, coffee, cooking oil, household cleaners, and paper goods.

Thil as Author

In his career, Thil wrote three books on retailing. The best known was Un pavé dans la marque, “A Stone in the Pool of Brands,” which he co–authored with Claude Baroux, the editor–in–chief of Le Nouvel Economist magazine.

In his landmark book, Thil argued that consumers have changed for good. They believe that buying is no longer practiced as it was during their parents’ generation. “There is no time for waste and advertising claims, for fancy packaging and pretty names,” said Thil in 1982. “The time of the brand cult is over.” Food means nutrition, household cleaning means efficiency, even clothing has to reflect environment and health.

Proof of the sea change for Thil was the success of the “produits libres” or generics that he had invented for Carrefour. Designed in simple black and white with the Carrefour logo small but clearly imprinted on each package, the products stood out against the clutter of colors favored by brand packaging.

Moreover, without heavy advertising costs, the “produits libres” could be offered at attractive low prices that served to remind consumers of the waste inherent in brand pricing.

The lesson of generics quickly spread to other countries, including the United States and Great Britain. In fact, Thil’s book chronicles the travels of black–and–white in America and he watches with great satisfaction as enlightened retailers such as Jewel were building their own strong store brands to compete with the advent of limited box stores such as Aldi.

Likewise, his book gives testimony to the popular appeal of the own label strategy of Sainsbury’s and Marks & Spencer in Great Britain.

For Thil, these were not isolated examples. This was what all retailers would have to do in order to survive. He was not wrong. In the decade ahead, all major supermarkets, drug chains and mass merchandisers would examine their strategies and conclude that their own brands required overhaul and innovation.

To put Etienne Thil’s contribution into context, not only did he personally create the concept of “produits libres,” but he provided a road map for what it would mean to retailers everywhere.

Thil’s Milestones

Thil was born in Paris on September, 1929. He studied law and then studied journalism at the Centre de Formation des Journalistes in Paris.In September 1954, he took a job with the magazine Constellation in France where he wrote on economic affairs.

In 1965 he went to the U.S. to take part in a series of international seminars which attracted many businessmen from Europe. Here, luck and fate held out a hand to Etienne Thil in that he met Marcel Fournier, head of Carrefour who took an interest in his career. A job with Carrefour followed, where he was in charge of advertising and public relations. Carrefour was growing and Etienne Thil moved up to become director of marketing.

Thanks to his experience in journalism, advertising, and the books he had written, he had many contacts with the press which were very valuable in launching his revolutionary concept in retailing called Produits Libres in 1976. His idea was to have simple readable white packaging which would stand out clearly on the shelves.

Another idea was ED discount stores, the principles of which would later be picked up by hard discount chains. He also launched the first private label Carrefour products.

In 1982 he left Carrefour to write Un pavé dans la marque. The publication of this book and the positive reaction it received in the profession led him to open his own office as marketing consultant and teacher at the Institut Superieur de Marketing in Paris and the Institut Universitaire de Technologie, part of the University of La Rochelle de Technicias de la Distribucion.

After his death in 1996, his friends and colleagues founded the Etienne Thil Foundation to preserve his archives and his inventiveness. Since 1998, the foundation has organized the Etienne Thil La Rochelle Rencontres, bringing together academics and those working in the field of retailing for workshops and discussions.

Editor’s Note: Etienne Thil profile compiled by Peter Berlinski based on reports from Jean–Claude Alpi, Brian Sharoff and Shirley Sharoff Zezzos.

Dave Nichol: Creator of Destination Products

“Marketing is the art of meaningful sustainable differentiation.”

With the introduction of President’s Choice in 1983, Dave Nichol as the president of Loblaws Supermarkets single–handedly elevated private label from the status of national brand look–a likes to unique products superior to the leading national brands on the market.

Nichol stands first among his retail peers in seeing the power of a premium private label program through the development of innovative products that would draw customers to make destination trips to buy them. Indeed, Nichol literally created the concept of Destination Products exclusive to a retail banner.

Nichol also stands first among retail top executives in North America in grasping the need to market these premium store brand products in the same manner as the leading national brand manufacturers market their products–namely through broadcast and print media. From the outset of his position as president of Loblaws, Nichol took on the role of store brand spokesman for his retail organization.

Store Brand Spokesman

To help launch the new President’s Choice line, in 1983 he purchased the Insider’s Report from Trader Joe’s–a 7-1/2 by 10–inch advertising flyer with entertaining illustrations and witty sayings about products, places, and people.

During his tenure at Loblaws, Nichol personally edited and wrote much of the material that went into the Dave Nichol’s Insider’s Report–with many of the product stories based on his personal travels around the world and his first–hand culinary experiences.

Nichol also wrote, produced, and starred in a series of commercials that touted the quality of Loblaws store brand products on Canadian TV. Because the production studio was located within Loblaws headquarters, Nichol points out that he was able to start his day by writing 12 commercials for 12 different products and have them all shot by 12 noon the same day.

“Marketing is the art of meaningful sustainable differentiation,” says Nichol. In this regard the ideal marketing strategy is to developing an offering that is “compellingly attractive to your competitor’s customers; but it is one that your competitor is unwilling or unable to replicate.”

Using his Insider’s Report and TV commercials, Nichol became pitchman for President’s Choice products such as PC Decadent Chocolate Chip Cookies, Splendido Italian Flatbread, and PC Memories of...Bangkok, Montego Bay, Singapore. By repeating the same message, over time, Nichol turned PC products into destination products that differentiated Loblaws from its competitors and their national brand offerings.

Says Nichol: “The crowning achievement in my career occurred when I had my epiphany to break my addiction to running one–half price ads for Tide in the Toronto Star in order to bring customers into my stores. I realized that trying to attract customers with national brands is a fool’s errand. I made up my mind that I was no longer going to try to build a business by flogging national brands that were in every cornerstore in Canada. I was going to break away from the pack. Ultimately, the way I accomplished this was with President’s Choice–superior quality private label.”

Nichol’s Milestones

In January 2005, Dave Nichol was selected by the American Marketing Association as one of their first inductees into the Hall of Canadian Marketing Legends.

To quote the American Marketing Association: “Dave Nichol has been credited with many things during his career. The simplest assessment is that he has changed the retail landscape forever and has done so in a sustainable and meaningful way. A lifelong passion for food has translated into fundamental evolutions in the choices and quality of food products available to Canadian households.”

From 1985 to the end of 1993, Dave Nichol was president of Loblaw International Merchants, the product development arm of Loblaw Companies Limited. With total North American sales of over $9 billion Canadian, Loblaw is the largest retailer and wholesaler of grocery products in Canada.

From 1975 to 1985, as president of Loblaws supermarkets, Dave Nichol was the driving force behind “No Name” generic products, the “President’s Choice” superior quality product program as well as a nutritious line of healthy products called “Too Good To Be True” and an environmentally friendly line of President’s Choice “Green” products. Today, Loblaw has North America’s most successful retailer–brand program.

The huge success of President’s Choice products is best represented by such products as “The Decadent Chocolate Chip Cookie” which is only available in 17% of Canadian supermarkets, yet is Canada’s best selling cookie. With over 1,000 unique President’s Choice products, Loblaws has 48% of its unit sales in its own brands.

From 1994 to 1997, Dave Nichol was chief executive officer of Destination Products International, a subsidiary of Cott Corporation (the world’s largest supplier of retailer–controlled soft drinks), where he developed a line of unique premium food products that were offered to food retailers around the world under the retailer’s own brand name.

Mr. Nichol was born in Chatham, Ontario in 1940. He holds a degree in business administration from the University of British Columbia and a post–graduate degree from the Harvard Law School. Prior to his joining the Loblaw Group in 1972, Mr. Nichol worked with Mckinsey and Company, Inc., an international firm of business consultants.

Currently as C.E.O. of his new consulting firm, Dave Nichol & Associates, he creates unique products that are sold under his own name or names controlled by his clients. In this capacity, he works with companies who are totally committed to “brand” themselves through unique products under their own brand name.

In 1993, in celebration of the 10th anniversary of Dave Nichol’s Insider’s Report, he published The Dave Nichol Cookbook, that features more than 200 recipes using PC products as key ingredients.
In 1994, he was the subject of The Edible Man, a biography of his flamboyant career by author Anne Kingston. n

Editor’s Note: Dave Nichol profile compiled by Peter Berlinski based on a PL interview with Nichol and on his own biographical profile.

Edwin W. Williams: Pioneer of Private Label

“We started Private Label magazine because we saw the beginnings of an industry that we could serve and so that store labels could be brought out of the closet.”

Edwin W. Williams was a visionary who foresaw the growth of store brand products in the consumer marketplace and in 1979–at the age of 71–created Private Label magazine to serve this growing business among retailers.

As he explained his mission in his inaugural edition of PL:
“We will seek to set the record straight through surveys, merchandising and marketing studies, and major reports on specific private label categories.

“We will seek to help retailers increase their sales by presenting the best industry knowledge on purchasing, pricing, displaying, packaging, advertising, product mix, and other areas vital to a profitable PL operation.”

E.W. Williams understood the importance of trade associations to the growth of business and industry–having earlier in his career pioneered the development of the frozen food industry. He organized the first frozen food convention which took place in Chicago in 1939.

Industry Catalyst

Thus, within months of starting PL magazine, E.W. Williams organized a meeting of private label manufacturers and suppliers in New York City. The meeting took place on October 23, 1979, and was attended by 20 industry executives who proceeded to form the Private Label Manufacturers Association and elect the first PLMA board of directors.

In its early years, PLMA shared office space with Private Label magazine and its editor at the time served as the association’s first executive director.

In 1983, PLMA’s board of directors presented E.W. with its first Lifetime Achievement Award in appreciation of his service to the private label industry.

PL Research

In keeping with his mission to educate retailers and manufacturers alike on the growing popularity of private label products among consumers, E.W. made it a point to fill each issue of Private Label with the latest research on PL sales and trends. In the early 1980s that included publishing the latest SAMI Studies by Selling Areas Marketing Inc., New York, NY., which reported continuing increases in private label dollar sales and unit volume.

E.W. commissioned the first consumer study on the private label user which was conducted in 1979 by Simmons Market Research Bureau, Inc. He presented the results of the study–which identified the typical private label consumer by age, income, occupation, and metropolitan area–at the first PLMA Annual Meeting, held in St. Louis, MO, March 27–28, 1980.

Quality Advocate

Another ongoing topic of interest and concern to E.W. was quality assurance which was a regular feature in the publication. He understood from the outset that maintaining high quality standards was crucial to building consumer confidence and to driving the continued growth of private label products.
“One of the editorial policies of this publication has been to reach manufacturers to maintain or increase their quality, no matter what the pressure might be from a price angle or from retailers. This is absolutely essential to the growth of private label and hand in hand with the retail buyer: Quality must be constantly maintained and improved,” E.W. wrote in his Publisher’s Column in the 15th Anniversary Edition of PL, March–April 1994.

Global View

Through his work as publisher of Quick Frozen Foods International, which he launched in 1959, E.W. traveled extensively throughout Europe. Through his numerous business contacts, he realized that private label was developing into a worldwide enterprise–especially in Europe where retailers such as Sainsbury’s in the United Kingdom and Carrefour in France had already developed sophisticated store brand programs. To serve this growing market, in 1985, E.W. launched Private Label International–a worldwide publication but focused principally on Europe. In addition, he started the International Private Label Directory–a sourcebook of worldwide private label manufacturers and their product lines as a resource for retail and wholesale buyers.

In his first issue of Private Label International, December 1985, E.W. gave prominent editorial coverage of upcoming debut of PLMA’s first annual World of Private Label Trade Show, which was held on February 24–26, 1986, at the Hilton International in Paris.

Through the pages of Private Label magazine, E.W. continued to voice support for the growth of store brands through ongoing market research and constant quality improvement by private label manufacturers and retailers–until his death in March 1997. He was 88 years old.

E.W. Milestones

E.W. Williams was born in New York City in 1908. He attended Columbia University and was a member of numerous fraternal and professional organizations including the Overseas Press Club, the Princeton Club, the Advertising Club of New York, and a founding member of PLM A.

Among the many awards he received over the years are: The U.S. Government “E” For Export Award; The Birds Eye Silver Tankard Club Award; The International Frozen Food Association Leadership Award; NARW Excellence in Journalism Award,; and the Award for Meritorious Service to the Frozen Food Industry.

E.W.’s first publication, Butcher’s Advocate, was bought in 1934. In 1938, he launched Quick Frozen Foods, and in 1959, he started its sister publication, Quick Frozen Foods International.

E.W. was a personal friend and business peer of Clarence Birdseye, the inventor of the first commercially successful industrial system for quick freezing. Birdseye served as a member of QFF’s Technical Advisory Board.

In 1995, at the age of 86, E.W. aquired the following publications: LDB/Interior Textiles, ALN, Interior Decorators Handbook.

Interestingly, E.W. in 1966 left the magazine business for several years after selling his company to Cahners Publishing Co. Cahners subsequently sold both QFF and QFFI to Harcourt Brace Jovanovich, which ultimately sold QFFI back to E.W.

Editor’s Note: E.W . Williams profile compiled by Peter Berlinski based on PL and QFFI archives.