Championing Environmental Transparency

As Fonterra’s Executive Vice President – Global Markets Ingredients Growth, Elisa Giusti plays a pivotal role in supercharging growth at one of the world's largest dairy cooperatives. With over 150 years of heritage, Fonterra brings the natural goodness of dairy to people globally, and Elisa leads strategic initiatives that guide both marketing and innovation. She ensures Fonterra, responsible for approximately 30% of the world's dairy exports, remains a leader in the dairy expertise. Elisa is also committed to promoting environmental transparency for consumers, driving initiatives that keep Fonterra’s practices sustainable and accountable to its global audience. Elisa and Fonterra are the recipients of the 2024 Innovation Strategy award in the Sustainability Impact category.

1. What does innovation mean to you?

Innovation, to me, is the art of unlocking latent value within existing paradigms to deliver unparalleled customer satisfaction. Like art, innovation is inspired. Unlike invention, which is the genesis of entirely new concepts, innovation is about the meticulous refinement and enhancement of what may already exist as well as what can become newly discovered. We’re a B2B company, the world’s largest dairy exporter, supplying dairy ingredients to customers who make products for consumer nutrition. In the realm of our customers’ B2C space, where the level of control companies have is inherently limited, because they rely on suppliers like us to deliver nutrition in forms that are on trend for consumers, innovation becomes the key to overcoming these constraints.

By continuously iterating and improving, we can unlock new levels of value and ensure our customers always receive the best. The success of our innovation efforts has helped strengthen our customer relationships and open new doors. We’re told by several of our customers, some of the world’s largest food, beverage, and nutrition companies, that they spend more time talking to us about innovation and sustainability than they do with any other supplier.

2. How do you and your team generate new ideas?

At the core of our idea generation process is a philosophy that emphasizes looking outward rather than inward. We believe that the most impactful ideas come from understanding and addressing the needs and desires of our customers and their consumers, rather than focusing solely on our own perspectives. This approach ensures that our innovations are not just creative, but also purposeful and relevant.

Our process begins with extensive research and observation. We immerse ourselves in the world of our customers and their consumers, seeking to understand their challenges, preferences, and behaviors – we are deliberate about engaging with consumers beyond the immediate realm of our business. This outside-in perspective allows us to identify opportunities that might otherwise be overlooked. For example, while many businesses have explored recycled packaging, we recognize that consumer skepticism around sustainability claims on packaging is high and that the impact of recycled packaging on sustainability is relatively marginal. By truly understanding this sentiment, we can develop more authentic and effective solutions.

For example, in the rapidly growing category of dairy-based protein beverages, dairy ingredients represent the biggest portion of a product’s overall carbon footprint. The impact that carbon reductions in our ingredients have on the overall carbon footprint may be multiple times higher than that possible for reductions on any other component, including sustainable packaging. Recently, a large multinational customer invited us to present at their supplier sustainability conference. Of thousands of suppliers, fewer than 20 were invited to this conference, and only three were asked to present. We are a key partner in helping them attain their goal of reducing their carbon emissions by nearly 50% and are an integral part of their strategic sourcing and sustainability plans, securing both price premiums and long-term supply agreements in what is otherwise often considered a commodity market.

We also believe in the power of provocative thinking. Challenging the status quo and exploring unconventional ideas is crucial for innovation. Our brainstorming sessions are collaborative and inclusive, encouraging every team member to contribute their unique insights. We use a variety of techniques, such as mind mapping and role-playing, to stimulate creativity and ensure a diverse range of ideas. By fostering an environment where all ideas are valued, we can refine and develop the most promising concepts.

Ultimately, our goal is to create innovations that resonate deeply with our customers and their consumers. By focusing on their needs and staying open to bold, new ideas, we can drive meaningful and impactful change.

3. Can you share 1-3 unique innovation tactics your team relies on?

Our team employs several unique innovation tactics that have proven to be highly effective:

1. Deep Consumer Understanding: While it may not sound unique at first, our approach to understanding the consumer goes beyond the standard methods. We delve into the intentions behind consumer behavior, seeking to understand why they care about certain issues, such as environmental sustainability. For instance, we recognize that consumers think about the planet because they are concerned about the well-being of themselves and their families. This genuine understanding allows us to create products and campaigns that resonate on a deeper level, ensuring authenticity and trust. In the dairy sector, this means we don’t have to pretend or overstate our claims; our genuine commitment shines through. We employ different methods to gain these insights, including interviews and focus groups, surveys and social listening and online anthropologies.

2. Intentional and Conservative Claims: At Fonterra, we are very intentional with our messaging. Every statement we make is backed by solid evidence. This approach builds credibility and trust with our customers, as they know they can rely on the accuracy and honesty of our communications. This tactic not only strengthens our brand reputation but also fosters long-term loyalty among our customers.

3. Passionate Investment: Our team is deeply invested in our mission and goals. This passion drives us to continuously innovate and improve. We are not just going through the motions; we are genuinely committed to making a difference. Dairy industries in some countries have received government subsidies to sustain itself. This can have the negative consequence of disincentivizing investment. Because of our beliefs, Fonterra has continuously invested in innovation and sustainability. This level of investment is reflected in the quality of our products and the dedication of our team members. It is this unwavering commitment that sets us apart and fuels our ongoing success.

4. Do you have any specific rituals to reset creativity?

Creativity is a very personal thing, and I have developed a few specific rituals to reset my creativity whenever I feel stuck. I always try to pull myself out of being stuck by engaging in activities that can refocus my attention. Music is a big part of my creative process; listening to different genres helps me find new perspectives. Reading also plays a crucial role, as it introduces me to new idea and ways of thinking.

Cooking is another activity that I find incredibly therapeutic. It allows me to focus on the process and our ingredients, which helps clear my mind, and, in addition, is so connected to our industry. Lastly, I value quiet moments. Whether it’s through meditation or simply sitting in silence, these moments help me reset and recharge my creative energy.

5. What resources do you use to spot trends and consumer insights?

We rely on several resources to spot trends and consumer insights:

Trend Hunter. As a leading platform for trend spotting, Trend Hunter provides a wealth of consumer insights, emerging opportunities, and big data analysis.

Our Global Footprint. We operate in essentially every market around the world and interact with a wide range of customers, from startups to the largest multinational companies. The statement, “The future is here, it’s just not well-distributed”, resonates with us. Having a lens on consumers everywhere helps us see the futures that aren’t yet well distributed.

Social Media and Online Communities: Platforms like Facebook, TikTok, Instagram, X, LinkedIn and Reddit are invaluable for observing real-time behavior and emerging trends. Engaging with niche communities and influencers allows us to stay ahead of the curve.

Industry Reports and Market Research: I regularly review reports from reputable sources such as Nielsen, Mintel, Lumina, FMCG Gurus, Global Data and Euromonitor. These reports offer in-depth analysis and forecasts that are crucial for understanding market dynamics and consumer preferences.

Customer Feedback and Surveys: Direct feedback from customers through surveys, reviews, and focus groups provides firsthand insights into their needs and preferences. A major part of our annual plans is an in-depth customer survey. This helps in identifying pain points and opportunities for innovation.

Competitor Analysis: Monitoring competitors’ activities and strategies helps in understanding market positioning and identifying gaps that can be leveraged for new opportunities. Additionally, we value hiring employees who bring diversity experience from multiple industries.

Conferences and Trade Shows: Attending industry events and networking with professionals provides exposure to the latest innovations and trends. These events are also great for gaining insights from thought leaders and experts.

By combining these resources, I can develop a comprehensive understanding of current and emerging trends, enabling me to make informed decisions and drive innovation.

6. Has there ever been an instance where another industry has inspired you/your company?

Absolutely, we are always looking at what others do, and there have been several instances where other industries have inspired us. One notable example is the technology sector, particularly the way tech companies approach user experience and innovation – that led to the development and implementation of our self-service customer ordering portal. Tech giants set a high bar for user-centric design and seamless user experience.

We also draw inspiration from other manufacturing industries, especially in terms of efficiency and lean manufacturing processes. The principles of lean manufacturing, pioneered by companies like Toyota, have been instrumental in optimizing our production processes, reducing waste, and improving overall efficiency.

We believe that innovation is not confined to any single industry. By continuously observing and learning from various sectors, we can integrate the best practices and innovative ideas into our own operations. This cross-industry learning approach ensures that we stay ahead of the curve and consistently deliver value to our customers.

7. What makes an innovative company culture? How do you create a culture of innovation?

An innovative company culture is characterized by a commitment to continuous improvement, creativity, and a willingness to embrace change.

Here are the key elements that make up such a culture and how we foster it:

Empowerment and Trust: We believe that innovation can come from anyone within the organization. By empowering employees at all levels and trusting them to take initiative, we create an environment where new ideas can flourish. We recently announced winners from our annual Horizon Awards, a contest where employees and teams submit their innovations across our business, for celebration, recognition, and the sharing of best-practices. This year there were 200+ entries.

Diverse and Inclusive Teams: Diversity in thought, background, and experience is crucial for innovation. We actively promote inclusivity and ensure that our teams are composed of individuals with varied perspectives.

Continuous Learning and Development: We invest in the growth of our employees by providing ongoing learning opportunities. This includes training in new technologies, methodologies, and creative problem-solving techniques.

Open Communication and Collaboration: A culture of open communication encourages the free exchange of ideas. We foster collaboration through cross-functional teams and regular brainstorming sessions, both internally and with customers.

Risk-Taking and Experimentation: Innovation requires a willingness to take risks and experiment. We create a safe space for employees to test new ideas without fear of failure, understanding that setbacks are part of the innovation process. We believe in the value of learning from failure.

Purpose-Driven Mission: Our mission and values are aligned with our innovation goals. By inspiring employees with a clear purpose, we drive them to contribute meaningfully to our innovation journey.

By integrating these elements, we cultivate a dynamic and forward-thinking culture that continuously adapts and thrives in a rapidly changing world.

8. Looking to the future, how will you/your company continue to be a leader in innovation?

Deep Understanding of Our Audience: We believe that true innovation stems from a profound understanding of who we are innovating for. This means going beyond surface-level insights and diving deep into the needs and desires of our target audience. By aligning our innovations with the specific needs of deeply science-focused companies, we ensure that our solutions are not just cutting-edge but also highly relevant and impactful. It’s not about being the most innovative company in our own eyes, but about creating meaningful innovations that resonate with our audience.

Embracing Constant Change: Innovation requires a fearless approach to change. We are committed to fostering a culture where boldness and adaptability are celebrated. This means being willing to take risks and learn from failures. By embracing moments of uncertainty and being unafraid to pivot when necessary, we ensure that our innovation pipeline remains dynamic and responsive to the ever-evolving market landscape.

Obsessive Focus on Our Expertise: We achieve the best results when we are obsessed with what we understand deeply. In the realm of food service, particularly with our ultra-high temperature creams, innovation is challenging due to entrenched traditions. However, our expertise allows us to push boundaries in flavors, packaging, and product formulations. For instance, our development of pre-reduced creams showcases our ability to innovate within a highly traditional industry, providing unique solutions that others may not even consider.

By adhering to these principles, we will continue to lead in innovation, delivering groundbreaking solutions that not only meet but exceed the expectations of our clients and the market. Earlier this year, we also launched our carbon-footprinter, which is a tool that allows customers to precisely quantify the carbon impact of any of our major ingredients, as well as anticipate future reductions based on our
climate goals. This is an industry-first, requiring years of advanced planning where important data was collected from individual farms.