Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

FOOD and BEVERAGE SECTOR WICI-KPIs
proposed by WICI Europe
in collaboration with OI–WICI France
The objective of this project is to identify Intellectual Capital (IC) / Intangible KPIs in the Food and Beverage industries.
The starting point for the identification of KPIs for the Food and Beverage sector is the model sketched here after (see Figure 1), whichshows how intangibles are linked to the value creation process. To achieve this objective, it is necessary to define the processes of theFood and Beverage industries;
The top section of the proposed model presents the ideal-typical value chain for companies operating in the Food and Beverage
sector. The model highlights the five core competencies / Focus which are “critical success factors” across the Intellectual Capital
categories.
1.
2.
3.
4.
5.

TalentNutrition / Healthcare
Customer Relations
Flexibility and adaptability
Execution
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Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

The inner part of the model presents the main relationships between the core competencies / critical factors and the value chain
activities explained in a five schema process.
1.
2.
3.
4.
5.

R&D innovation
Brand & Marketing
Procurement & Supply chain
Production
Distribution

Not all the critical factors have the same degree of importance in the value chain. Disclosure of too many KPIs is problematic, because
it distorts and undermines the strategic and substantive significance / implication of each KPI, while potentially misleading users.
Therefore, every company should choose a certain number of real ‘key’ indicators for its own value creation mechanism. On the other
hand, WICI-KPIs, which include a wide-range of indicators for companies to choose from, recognizing that what is relevant for one
company to disclose may be very different for another company.

The strength of the model lies in its ability to display the critical areas to be investigated and measured through the proposed KPIs
along the entire Food and Beverage sector value chain. The basic premise is that a certain activity in the value chain is contingent
upon a specific set of core competencies / capabilities, which in turn is driven by a pool of intangibles, each of which (as notmeasurable per se) is approximated in terms of measurement by a certain number of KPIs. In this way, different perspectives ofanalysis can be provided, since each KPI can be diversely weighted in a company’s analysis depending on the KPI’s importance inthat company’s value chain. For each of the IC-linked core competencies / critical success factors in the Food and Beverage industry
a list of KPIs is identified.
The list of WICI-KPIs contains 38 KPI’s. It distinguishes the WICI-KPIs for Food and Beverage between those that are stronglyrecommended (“21 Frequently used”) and those that are simply suggested (“17 Nice to have”). Each KPI is also connected to one of
the three Intellectual Capital area (e.g. Human Capital, Organisational Capital and Relational Capital. We provides also someindications on the formula to utilize for the calculation of each WICI-KPI (“KPIs formula”) as well as on the characteristics of themeasurement unit (e.g. number, percentage, value, trend, etc.). We also precise if the KPI’s are Risk and/or Opportunity oriented.
We finally checked the degree of availability of data, even partially, among 12 large Food & Beverage listed companies part of theStoxx 600’s European indice in 2018 (public reporting, data collected via Bloomberg only, at least partially).

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Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

FOOD & BEVERAGES VALUE CHAIN- MAIN FOCUS

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Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

HUMAN CAPITAL (13 KPI’S – 7 “MUST HAVE” + 6“NICE TO HAVE”)
Risk/
Opportunity

SuggestedrelevanceBloomberg
coverage (%)

Existence of a global and regular employees survey? Yes/NoEmployee survey results (Key drivers, % of participation anddynamics)

Risk

Frequently
used

0%

Execution

Average absence hours per employee./year

Risk

Frequently
used

0%

Staff turnover rate among employees,
new employees & high potential
employees

Execution

Number of employees who left the company during the year on thetotal workforce at the beginning of the year

Risk

Frequently
used42%4Glass Ceiling reduction

Execution

Share of women in top mgmt vs general

5

Glass Ceiling reduction

Execution

Remuneration ratio between CEO and median pay in the firm (onlyeuropean employees data for european corporates)

6

Employability

Execution% of trained employees

7Working accident (frequency andseverity)

Execution

8

Attractivity

Talent9

Mngt/Employee share ownership

10

KPI's

FOCUS

1

Employee commitment index

Execution2

Absenteism

3

KPI’s Formula

Opportunity
Risk

Frequently
usedFrequently
used

50%
100%

Opportunity

Frequently
used

58%

Lost time accident/ 1 million worked hours and lost days /1000
worked hours), including contractors.

Risk

Frequently
used

67%

Position in students and managers annual employer ranking survey

Opportunity

Nice to have0%

Execution

Percentage of stocks of company owned by employees/management; % of employees having shares

Opportunity

Nice to have100%

Employability

Execution

Average age

Risk

Nice to have

33%

11

Attractivity

TalentNb of adequate CV received

Opportunity

Nice to have0%12Annual career review rate

Talent% of employees having received an annual review

Opportunity

Nice to have0%

13Internal mobility

TalentShare of positions filled internally (Executives,intermediary management, global)

Opportunity

Nice to have0%4

Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

RELATIONAL CAPITAL (14 KPI’S – 8 “MUST HAVE” + 6 “NICE TO HAVE”)
Risk/
Opportunity

Suggested
relevance

Bloomberg
coverage (%)

Opportunity

Frequently used0%

Opportunity

Frequently used0%

Risk

Frequently used0%

Opportunity

Frequently used

0%% of expenses on digital media

Opportunity

Frequently used

0%

% of product sold with a responsible
consumption logo/label( ex Nutri-score, etc)

Opportunity

Frequently used0%

Opportunity

Frequently used0%

Opportunity

Frequently used

0%

Risk

Nice to have0%

Opportunity

Nice to have0%

Opportunity

Nice to have0%

Opportunity

Nice to have

0%

Risk

Nice to have0%

Risk/Opportunity

Nice to have0%

KPI'sFocus

KPI’s Formula14

Innovation

Customer relation& nutrition

15

Brand: value,awareness, preference…

Customer relation

16

Client portfolio concentration

Customer relation% of sales in product launched in thepast 1-2-3 years
Loyalty to a specific brandAmount spent on brand recognition% of turnover with top 5 clients (Walmart,Carrefour, etc.)

17
18

Customer satisfaction / Net promoter
score
Digital advertising spending

Customer relation
Customer relation

19% of product with nutrition labels

Nutrition

20% of organic products

Nutrition

21% of “healthy” products

22

Nutrition research programs/ Nutrition
research budget

23

R&D/Innovation

24

Client loyalty /repeat purchase25

Marketing training

26

Reputation index/External image

Customer relation

Food waste awareness/actions

27E-reputation/ Millenials specificities

Customer relation

Number of followers, likes, on social media

No GMO, no nanotechnologies, no alcohol
for beverage companies
number of nutrition programs/
Nutrition% of sales covered by nutrition
program% of new products launched after
Customer relation &integration of nutritional research
nutrition
Online sales% of clients part of loyalty programmes /Customer relation
identified as repeat customers
Customer relation & % of marketing teams trained on
responsible marketing, etc
nutrition
Nutrition

5Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

ORGANISATIONAL CAPITAL (11 KPI’S – 6 “MUST HAVE” + 5 “NICE TO HAVE”)
Risk/
Opportunity

Suggested
relevance

Bloomberg
coverage (%)

Number of level of management (5,6,7..)

Risk

Frequently used

0%

% of production sites certified GFSI,% of production plants covered by HACCP
methods

Risk

Frequently used0%

Opportunity

Frequently used

0%

Risk

Frequently used

0%

Risk

Frequently used0%

RiskFrequently used0%

Opportunity

Nice to have

0%Flexibility & adaptability, Execution Average terms of payment

Risk

Nice to have0%

Dependence rate from key
suppliers

Flexibility & adaptability, Execution

Risk

Nice to have

0%37

Supply chain digital strategy

Flexibility, adaptability, Execution Capex, logistics costs as a % of sales

Risk

Nice to have0%38

Raw materials traceability/sustainability

Risk

Nice to have

0%

KPI's

Focus

28

Strategic axes & level ofmanagement

Flexibility & adaptability

29

SafetyExecution30

Suppliers relationshipFlexibility & adaptability, Execution

31

Number of recalls

Execution & Customer relation

32

Children marketing policies

Execution & Customer relation

33

Cybersecurity

Execution

34

Local production rate/ localcontent rate

35

Suppliers relationship

36

KPI’s Formula

Lenght of duration for key suppliers (nbof years)% of volume, costs

Cybersecurity in % of total IT Expenses,
specific employee trainings

Flexibility & adaptability, Execution % of local sourcing

Customer relation% of purchasing volume under ESG/safety
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Food and Beverage KPIs proposed by OI - WICI France – Final version as of 24 January 2019

About the Observatoire de l’Immatériel (OI) – WICI FranceOI – L’Observatoire de l’Immatériel was founded in 2007 and is the official French jurisdiction for the “World Intellectual Capital / Assets Initiative”(WICI Global), the global Network for business reporting, and for the “World Intellectual Capital / Assets Initiative Network for Europe” (WICIEurope). http://observatoire-immateriel.com/
As of January 2019, people and organisations who have contributed to the preparation of the document “Food and Beverage Sector KPIs” are:Aurélie Baudhuin
Jean-Philippe Desmartin
Léa Dunand-Chatellet
Alban EyssetteMaud Fouilloux
Valery Lucas Leclin
Clémence Moullot
Alban PréaubertCollective Contribution
Feedbacks fromcorporates:

Meerschaert AM,
Chairman of WICI Europe, Observatoire de l’Immatériel, Edmondde Rothschild AM
DNCA FinanceObservatoire de l’Immatériel, SFAF, Ethiea Gestion
Observatoire de l’Immatériel, Roche Brune AM
Beyond Rating
Edmond de Rothschild AM
Sycomore AM
WICI Italy
Danone, Nestle and Wessanen

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