New Brew

A number of fabulous cafés have opened up in São Paulo in the past few years, which is what you would expect in a place where coffee is so ingrained into the fabric of local culture.  This past week-end we stopped at recently-opened Octavio® Café. 

I particularly enjoyed one of the coffee offerings that is brewed the old-fashioned way right there in front of you at your table. The ritual provided a rather nostalgic feel which reflects a trend I'm seeing more often of keeping things real.  Another interesting example that sometimes in order to find something new, a good place to start is in the old. 

Brazil Has a Clear Advantage in Biofuels

Recently, there have been several attacks in the media on biofuels and how ethanol is posing a risk to agriculture. The Brazilian Government has been quick to establish the differences between Brazil’s successful sugar-cane ethanol program and the U.S. corn-based model. Sugar-cane is 2.5 times more productive in terms of use of land. While Brazil produces 7,500 liters of ethanol per acre, the U.S. produces only 3,000 liters.  Improved productivity comes from agro-technology, ideal soil conditions and lower operating cost. The end result is that Brazil’s ethanol costs US$0.20 per liter with no federal subsidies, while it costs US$0.47 for the American corn ethanol with US$ 6 billion a year in federal subsidies.  The U.S. taxpayer is contributing to an unsustainable model. Another important difference is that 15% of Brazil's sugar cane crop is being rotated with soy or beans, which eliminates the argument that ethanol takes land away from agriculture dedicated to food production. In fact, the country is expanding its agricultural footprint.  Brazil is expected to set another record grain production this year: 140 million tons. So, no matter what the critics might say, decades of research and development has proven that Brazil has taken a leading role in developing a renewable source of fuels and should continue leading the way.

Spending Time with a True Thought Leader

Monday was a wonderful day. I was in London and spent a few hours with Marketing Guru Adam Morgan – author of one of my favorite business books and head of one of the coolest marketing and innovation consultancies: eatbigfish. I had already listened to Adam Morgan speak at an event in NY a year ago on challenger brands.  His speech and his book have inspired me on many levels, on how to focus more on thought leadership than market leadership or what it takes to build a lighthouse identity for your brand.  Meeting him personally was a phenomenal experience. A person who has a rare and engaging ability to listen, observe, question, and gather data points that lead to interesting connections. I was also very impressed by his associate, Olivia Knight. Both are very talented storytellers who captivate you with ideas, analogies and observations that force you to think in different ways.  I can't wait to read the new edition of 'Eating The Big Fish' due to be launched next October.

A contemporary spin on the farmer's market

My friend Alexandre Van Beeck, mentioned in his blog a cool retail concept in London called Unpackaged Stores. Since I was in town, I decided to check it out. They sell all things organic, from produce to muesli, in an eco-friendly way. Because the concept is around sustainability, customers must bring their own bags for their purchases. A contemporary spin on the traditional farmer's market. It's fascinating to see how sometimes you need to look at the past to find ideas for a better future.

Fussball while you wait for your flight

Waiting at the gate to board a plane can be pretty boring. Flying out of Dusseldorf this week-end I saw a simple idea at the Lufthansa counter. The German airline which sponsors a number of football events, added a rather low-cost idea that brings a little entertainment while you wait. I ended up playing with two British guys who were waiting for the same flight. 3 x 3.

Packaging that delivers a sense of authenticity

At the Interpack, I fell in love with a chocolate bar packaging I saw from a company called Askinosie™. Every detail of the packaging comes together to deliver a beautiful sense of authenticity. From the wax paper finish, to a map inside that shows where the cocoa was harvested to the graphic approach that resembles shipping bags from old traders. In a world of big brands, it's wonderful to see the small guy finding a differentiated graphic approach that translates so well the authentic positioning this company wants to establish. 

Like me, I'm sure you're dying to try the chocolate... meanwhile, check out their cool website.

A Few Days to Breathe New Ideas

This week I'm in Dusseldorf attending the Interpack Trade Show. Three days immersing myself in all sorts of food & beverage product and packaging innovation and the wonderful technology found behind the scenes. Every once in a while, it pays off to remove yourself from the day-to-day at the office to see, feel and taste products from around the world. One of this year's highlights was Hall #7 dedicated to bioplastics. A wonderful opportunity to see some of the technologies that are shaping the future of packaging. 

Below is a cool visual I found on one of the booths that represents well the idea of compostable packaging.

Little Things That Make a Mac... a Mac

It's amazing how sometimes children have the ability to recognize simple things that make a world of difference.  At home, like thousands of other homes, we have a PC (as a back up for work-related stuff) and a MacBook (which I use as my primary computer).  That means that my daughters end up using the PC  when they want to read the latest on Hanna Montana.  Last night, my 6-year old, feeling frustrated with having to reboot after something went wrong, turns to me and asks: 

"Why is your computer easy to start and this one takes so long?"  

At the end of the day... the devil is always in the details.

Riding on a Bamboo Innovation

Since the age of 6 when my parents bought me my first bike - a Schwinn® Stingray - I've been crazy about bikes. Flying back from Caracas a few days ago I read an interesting article in Newsweek about the Calfee® bamboo bikes.... yes, bamboo. The same company that pioneered the use of carbon fiber in the early '90s is now promoting bamboo as the new thing. This is not an ordinary bike, the Calfees made of bamboo are high-performance bikes and have received a number of awards, including the Best Road Bike and People's Choice Award at the North American Handmade Bicycle Show.

As the world become more green, it's absolutely wonderful to see there is a bamboo revolution coming of age. The article explains how bamboo has been used as a building material especially in Asia and how companies all over the world are using it in green homes, in flooring, furniture and now bikes. The reason is that bamboo may just be one of the strongest materials around. It has greater tensile strength than steel and it withstands compression better than concrete.

On the Calfee Design website they say that... "If there were an award for "Bicycle with lowest carbon footprint" (least amount of carbon dioxide emissions in the production of the frame), this frame would win, hands down."

I wonder how bamboo can be used in other applications as companies search for green solutions ?

From simplicity...










To high-performance...

Creating a New Consumption Occasion with the help of Pizza Hut

Despite record growth we have been having with our Doritos® business here in Brazil, one of the challenges we face is that Brazilians don't have the habit of dipping tortilla tips in salsas like in the U.S. or Mexico. How do you start developing a new consumption occasion that simply isn't part of the local food culture? One of the ways of doing it is to partner with someone who can give you a hand. In our case here in Brazil, Pizza Hut®. Our Doritos Brand Mgr. Alexandre Chiavegatti worked with Pizza Hut to put the Doritos Nacho experience on the menu. We're extremely happy with the partnership since Pizza Hut is a cool venue for the urban teen and young adult demographic which now can be exposed to the Doritos® brand in a completely new way. It was launched last December and so far it has been working very well.

Argentine Steak House or Brazilian Churrascaria?

Anyone who has been to charming Buenos Aires knows that the Argentines prepare the best beef you can find anywhere on the planet. The most tender cuts, loads of gaucho tradition, and a wonderful meal with fabulous Malbec wines. Is this the ultimate meat you can find? Well, fly north to Brazil and there's another meat experience that deserves attention... the 'Brazilian Churrascaria' or also called 'Rodizios'. What I love about the churrascaria is the ritual behind it. First, you go to the salad bar, which are usually loaded with options. Then, at the table, you have a chip green on one side and red on the other, used to indicate to the waiters if you're ready to be served. The waiters, normally dressed in full Brazilian gaucho attire, come to your table with a skewer on which are speared various kinds of meat. You just have to confirm if you want a slice or you'd rather wait for the next round. No menus... no anxiety having to make the right menu choice.

A few weeks ago, we had the visit of an Irish marketing VP who lives in NY. In the evening, I gave him a few dining choices, specially since São Paulo has such a vibrant restaurant scene. Fogo de Chão® - Brazil's most successful churrascaria chain and operating in many cities across the U.S. - was his choice. The guy simply loved the experience.

Ok, Argentine beef may be the best... but when it comes to delivering an innovative steak house experience, nothing beats the churrascaria. And again, I just love rituals.

A Pretentious Name that is Causing a Lot of Buzz

I have been intrigued by a small storefront that goes by the rather pretentious name of "O Melhor Bolo de Chocolate do mundo" - The World's Best Chocolate Cake. A few friends recommended the place and it's getting pretty good press. From a pure buzz factor, I have to admit the strategy of making such a compelling claim is working. So, we decided to go there this afternoon to check if the cake lives up to its name.  Once there, I found out that it's actually a franchise of the original that started in Lisbon in 1987 created by Carlos Braz Lopes. He used to own a restaurant that became famous for the chocolate cake that was on the menu. The cake became so famous, that he decided to open a shop entirely dedicated to his secret recipe. I particularly love when a business model is focused in positioning itself as the very best in a particular category. The model couldn't be simpler. It's all about the chocolate cake that comes in only two options:  traditional with 53% cocoa and a bitter version with 70% cocoa, both made with Valrhona® premium French chocolate (which my wife knew from Nigella's cookbooks). The coffee and a special mint/citrus tea blend were developed to harmonize with the cake. The São Paulo shop is very small, so it was inevitable to hear people from the other tables discussing whether they thought the chocolate cake was or not the very best.  I'm definitely not a chocolate cake expert, so I can't tell you if it is or not the world's best.... but I have to say... it's the best I ever had. 

Spreading the word on the benefits of Oats

This past week our Quaker marketing team felt the power of TV.  Last Friday, Brazil's highest-rating news program called Globo Reporter - a weekly investigative report format equivalent to CBS 60 Minutes - aired a special report on the health & wellness.  At the office, we were thrilled that the show highlighted the heart-health benefits of oats as a functional food that helps reduce cholesterol levels, one of the risk factors of cardiovascular disease.  The TV show generated tremendous buzz.  Sales of our Quaker line picked up this week. Erika Salgado, our Quaker® Marketing Mgr. and Adriana Ribeiro, our Foods Marketing Dir, both were particularly happy since the content was generated from clinical studies and PR efforts they have been leading. This morning, I went for my periodic cholesterol check-up and ended up doing my own little personal survey. I asked the nurse about oats and she spontaneously and enthusiastically talked about the TV show and how everyone was asking her about the benefits of oats.  

The message is always stronger when it comes from editorial content.

Nokia and Spike Lee Collaboration

Another collboration project was announced this past week... this time it's Nokia and film director Spike Lee teaming up to produce a short film using YouTube-type videos captured by everyday people using their mobile phones. One more example of the power of user-generated content.

Circus Reconceptualized

We just got back from a Cirque Du Soleil performance. I had already seen them a few years back in NY but this show was different on many levels. Our 'tapis rouge' tickets entitled us to valet parking, a pre-show cocktail in a cool lounge, dramatic lighting, electronic music and great food. You realize that every single detail was carefully designed in a way to provide a multi-sensorial experience. Marketing guru W.Chan Kim, in his Blue Ocean Strategy, describes well how this Canadian troupe has totally redefined the circus industry.

During one of the amazing acts, my wife turns to me to say how it's clear that the average person only develops a fraction of his or her physical capabilities. It made me think that the same applies to our intellectual capabilities... to our ability to learn and be open to new ideas.  

Cirque do Soleil is a wonderful reminder that any category, no matter how well established, can be reconceptualized. In this case, morphing the traditional circus experience with elements of contemporary opera, broadway musical and rock concert. A few examples come to mind of other companies that have also borrowed lessons from other experiences to reconceptualize the businesses they operate in. Take W Hotels, that combine elements of the urban bar scene and the aesthetics of the fashion world to create a differentiated hotel experience. Or Virgin, that did the same to airport lounges. I'm sure there are valuable lessons for any marketer who works in service-related categories.

Do we really need a landline?

I realize that we really don't need a home phone anymore. When I'm at home, I find myself reaching for my BlackBerry to make a call. All my contacts are there, both personal and professional, everything is synchronized to my desktop, to my calendar... to my life. I read last night that according to research conducted by CDC, in 2007, 13.6% of U.S. households were already cellphone-only. A number I would only expect to grow considerably in the following years. 

There's an additional advantage... we'll get rid of those annoying telemarketing calls.

My Latest Addiction

For the past week, I have been totally addicted to TED... probably the most thought-provoking address on the web. I can't believe I just found this out now. If you already knew, forgive me for being a late comer. If it is not in you bookmarks, time to add it now. TED - which stands for technology, entertainment, design - positions itself as a destination for 'ideas worth spreading'. Click here to access the site. Every night I've been enjoying amazing lectures from people like Chris Bangle (BMW), Paul Bennett (Ideo) or Jan Chipchase (Nokia). TED is definitely my latest addiction.  Spread the word.

Making it Easy to Set Up a Web Store

There has never been a more fascinating time for entrepreneurs. My friend, James Maul, told me about Amazon's service called WebStore that allows small businesses to create their very own e-commerce website using Amazon's technology infrastructure. I went to check it out. Great news for someone interested in selling designer shoes from Milan or bourbon coffee from Bahia. You pay a 7% commission, which includes credit card processing fees and fraud protection, and a subscription fee of $59.95/month, no matter how many WebStores you set up. Time to brush off that old business plan you discussed with a friend over a few beers.

What Marketing Can Learn From Great Design

When it comes to contemporary Brazilian design, the Campana Brothers rock!  I remember when we lived in NY and I had read in the NY Times how brothers Fernando and Humberto Campana were the new design sensation with the 'Vermelha Chair' (pictured here) and that it was being showcased at MOMA. So, we went there.  Today I decided to visit the Campana site (click here to check it out).  The website is phenomenal. By clicking on the projects there's a visual tutorial that explains where the inspiration for each design came from. This is what is written on the 'Vermelha Chair':

"Born from a tangle of cords bought on a street market in São Paulo, this chair projected Fernando and Humberto Campana on the International stage. The Vermelha Chair marked the beginning of industrial production of their pieces of furniture. The way the rope should be braided to the metallic structure was videotaped and sent to the Italian company."

Another amazing and stunning design is the "Favela Chair".  

This is what is posted on their site...

"Inspired by the favela constructions in São Paulo, using scraps of wood found on the streets, the Campana Brothers create this intricately fabricated chair."

Genius.

Going through the Campana Brothers' site I realize that there's a fascinating correlation between the inspiration found in everyday life that leads to great design with compelling insights that lead to superior marketing strategy and innovation.

Another Collaboration Initiative... this one from Starbucks

Yesterday I read in Cristiane Correa's blog (Exame Magazine's cool editor) that Starbucks® has launched a collaboration platform called mystarbucksidea.com.  Since I'm passionate about the theme of collaboration as a web 2.0 way for companies to really empower the consumer, I immediately went to check it out and register. It's great!  An online space that allows coffee lovers to post ideas on how to make Starbucks a better place.  By the end of the day I thought I had an original idea to post.  My idea was based on the insight that coffee drinking lends itself perfectly well to the introspective moment of reading. A moment to warm up the soul and fill up your mind. So why not have Starbucks in selected public libraries?  I've always loved a good public library but I know that many struggle financially requiring strong support from municipalities and the community.  The idea of renting out space for a coffee shop could certainly dilute the library's operating costs, relying less on public funding. So, before posting my idea (that I naively thought was original), I googled the words 'starbucks' and 'library'.  Well... I found out the idea is not original at all. There are a few examples of the model.  Well,I guess it's time to order a latte and think of an original idea.

Surfing Destinations Can Learn From Ski Resorts

Back from Easter Holidays. We spent three days at this amazing beach called Praia do Rosa in the South of Brazil. Rosa is a beach community that's all about surfing. People from all over Brazil, Uruguay and Argentina go to Rosa in search of great surfing conditions, well-preserved coastal vegetation and in the winter, Rosa is a sanctuary for Right Whales that come to this little paradise to breed. We went to Praia do Rosa for a Family surf clinic. Every year we go on a Family ski trip but now that we're living in Brazil, we want to do the same with surfing. The interesting thing is that, in the case of skiing or snowboarding if you google 'family ski' a number of resorts will appear in the search, including places that specifically cater to families such as Smuggler's Notch (Vermont) or Steamboat (Colorado). Locations that are totally prepared to make it convenient for families to enjoy the sport: clinics, ski-in/ski-out lodging, ski valet service, rentals, demo with latest gear... everything you need. It's not the case of surfing. 

The experience at Praia do Rosa was awesome. I'm convinced that there's an amazing opportunity for beach resorts to position themselves as surfing destinations in the same way that ski resorts do with a full range of services that brings the experience to a broader demographic.

Sweet News in the World of Organics

The organic wave, that has been fueling the phenomenal growth of Whole Foods in North America, is at an early phase in Brazil. Supermarket chains, like Pão de Açúcar, have increrased the availability of organic produce and even launched their own private label - Taek® - with a few organic SKU's. However, the star of the the organic movement in this country is Native®.  Native is a line of organic products that started with sugar and is being produced for the past 20 years in Sertãozinho - in the heart of Brazil's sugarcane belt. At home, we are loyal consumers. The retail version which we use is only 15% of their sales. They also have a strong business selling their organic sugar as an ingredient to the food industry to companies like Danone and Kraft. They have exported to over 55 countries. Sweet news in the world of organics, which I hope to find in my next visit to Whole Foods.

Something to Celebrate in the Skies of Brazil

I'm personally very excited with the news that David Neeleman - founder of JetBlue - is preparing to launch an airline in Brazil. The reason for my excitement is that I remember very well my first JetBlue flight between Fort Lauderdale and NY in June 2002. I will never forget the experience because it was during World Cup and I had heard that JetBlue was the first to offer live TV service onboard. The only option was flying out of Fort Lauderdale. I lived in Coral Gables, just a 10-min drive to Miami International but I decided I just had to go JetBlue so I wouldn't miss the Brazilian match. Therefore, driving an hour up I-95 seemed worth it. And it was: convenient touch-screen check-in at the airport, leather seats and a TV monitor to watch Brazil play the beautiful game... a priceless moment. The news is that the new airline will fly the mid-range Embraer EMB-190s. I'm a huge fan of Embraer, so it's one more reason why I can't wait for this new airline to start operating. 

Neeleman's innovative leadership is certainly something to celebrate in the skies of Brazil.

Giving Banks a More Human Face

Banks are riding the wave of a strong Brazilian economy. The news of Banco Itaú's net profit of US$ 4.8 billion last year up 96% - an all-time record in Brazil - generated lots of press and blog buzz. Great news for financial institutions... but there has also been a rather negative sentiment in the general population towards banks and the government's policy of high interest rates. No wonder there are so many banks using advertising campaigns to talk about initiatives on social responsibility and the environment. Banco Real, for example, was the first bank to position itself as 'green' many years ago. Bradesco - the country's largest private bank - launched a massive campaign communicating its position on sustainability. Many banks are following the same strategy.

In a country where banks are setting record profits, the question becomes how can they give back to the communities in which they serve and differentiate themselves from their competitors?

A good example has been HSBC and how they are investing in cultural marketing. Movie fans in São Paulo have been enjoying the HSBC Belas Artes Movie complex for years. In Curitiba, the bank has Teatro HSBC, a space for performing arts. The big news is that later this month, the bank will be opening the HSBC Arena in Rio de Janeiro and the HSBC Brasil venue in São Paulo. The show that will open both venues is Seal. What a fascinating opportunity for HSBC to use these spaces for experiential marketing their clients, as well as, create a more human face for the bank.

Is São Paulo ready for a local Food Network?

Back from a business trip to find my wife watching a cooking show on cable tv hosted by Nigella Lawson.  During our days in Connecticut, my wife was a huge fan of the Food Network - the best channel in the world for those who love cooking. We don't get the Food Network here in São Paulo, so Aline was happy to find this show being broadcast on a local channel. 

São Paulo has an incredibly vibrant restaurant scene and some high-profile celebrity chefs such as Alex Atala (from fashionable 'D.O.M.' - click here to read about one of Brazil's most innovative chefs) or Carla Pernambuco (who runs a fantastic Brazilian restaurant called 'Carlota'). 

For those who work with innovation, I find that restaurants are great places to be inspired. From the the creativity of combining unexpected ingredients, to cool interior design, to the graphics of menus... 

I wonder if Brazil is ready for a cable channel entirely dedicated to wining & dining São Paulo style? We would definitely be subscribers.

Click here to read a NY Time's article on São Paulo's cool new scene.

This is the Best Time to be a Marketing Professional in Brazil

After almost nine years living and working abroad, I'm very happy to be back in Brazil in a time when the Brazilian economy is hotter than ever. Practically all the key economic indicators are strong and the overall feeling, here in São Paulo, is that this is a market ready to accelerate growth. In 2007, employment reached the highest rate in four decades, trade surplus was US$ 40 billion, inflation is under control, and the stock market reached the highest market cap among emerging markets. Last year alone, there were 64 IPOs generating US$ 56 billion that are fueling the economy.  

A number of Brazilian companies are rapidly expanding into global markets, companies like...

Vale and Gerdau taking advantage of a hot commodities market

Petrobras becoming a world leader in ethanol

Sadia and Perdigão selling poultry in markets from Dubai to Moscow

JBS-Friboi acquired Swift to become the world's #1 meat producer

Marcopolo manufacturing buses that run all over the planet

Embraer supplying the world with regional jets

The opportunity for seasoned marketing professionals is phenomenal. One of the challenges, is to take successful business models that have made Brazilian companies strong locally and adapt them for global expansion. Another fascinating, yet tremendously challenging, opportunity is to re-coneptualize and invest in Brazilian consumer brands that have the potential of making a connection to global consumers... so that in the long-term, these brands can be recognized and admired outside of Brazil. Good examples are Havaianas®, H.Stern®, Brahma Beer®, Fogo de Chão® Steak Houses ... but there are just a few. This is where Brazil could borrow a page from South Korea's marketing book. The opportunities are amazing, especially in a positive economic environment like the one Brazil is living in now.

This is definitely the best time to be in Brazil.

For The Nation We Want To Be...

This is not a blog about advertising. However, just a few minutes ago, I saw a TV campaign that struck an emotional chord. The advertiser is Revista Veja - Brazil's largest and most-influencial weekly news magazine. I had already seen the print campaign, which I love. The spot uses only two words: yes (in Portuguese "sim") and no ("não"). Yes is used for positive scenes like kid in school, the Amazon Jungle, the country's vibrant agribusiness.... no is used for scenes of urban violence, poverty and corruption. The soundtrack is a beautiful slow-motion version of the Brazilian National Anthem. 

The spot ends with the campaign theme: 

"Veja.  Indispensable for the nation we want to be."

The campaign was created by Almap/BBDO. 

Click here to see the 60" spot.

Sometimes, It Just Takes A Phone Call...

This morning I realized that I'm running out of contact lenses.  The situation reminded me of a phone call I would get from 1-800-Contacts® - the service I used when we lived in the U.S. - reminding me it was time to re-order. A simple phone call that was convenient and made me a loyal customer. I wish they operated here in Brazil. Sometimes, it takes just a phone call to deliver great service.

Creating a Holistic Brand Experience

I love to see good examples of Brands creating exclusive retail concepts that create a truly holistic experience to consumers.

Lego has been doing it for years with their Lego® Stores... a fun combination of product showcase, interactive playground and store. Consumer electronics are also ahead with the amazing Apple® Stores with their genius bars (a place I learned a lot on how to better use my MacBook), the Samsung® Experience Stores, the famous Sony® Style Store in NY or the Nokia® Concept Stores popping up in Europe, Middle East and India. Beer and spirits seem to be experimenting exclusive concepts in airports and malls like the Casa Bacardi® I first visited at the Miami International Airport, the first Heineken® Bar which opened up at the Hong Kong Airport and the Brahma® Kisoks showing up in Brazilian malls. I was surprised to hear about the world's first Barbie® Store (since the doll exists since 1959) which opened in Buenos Aires last September, complete with doll hair salon and a café.

These retail environments become a wonderful opportunity for customization, for probing new concepts, as well as a becoming a pulse on how people interact and feel about the Brands. Why invest heavily on consumer research if you can have a real-life lab to test new concepts?

PepsiCo... is great!

This month's Fortune Magazine's cover story is entitled "What Makes Pepsi Great? - An Inside look at how Indra Nooyi has transformed an American business icon" by Betsy Morris... it just confirms that PepsiCo is such a great company to work for.

Click here to read it.