I think a way could be to enforce rural comunities to achive urban markets but guaraty sales prices margins distribution
Catalina Garcia said:
Thiis is the story of Marcela Cantor a Colmbian womanTendera who joined the 4e program. She is a leader, a social agent of change of her community. And she wants to take care of handicapped children of her community.
Story video:
Agree that there is room for a win-win approach. Focusing on SME could strenghen the brand; while not necessarily complexifying operations
Justin Bakule said:
The “virtuous cycle” at play here is about how social and business value creation are linked. By improving the performance of small businesses, SAB Miller should understand the connection to and improvement in its own business – it could be in improved sales, improved margin, brand image, etc. Importantly, this business-social value connection link should be understood and measured as this is what helps establish goals and an understanding of success. This then compels the business to increase, diminish or shift its investment.
Yes Brett, in our case in Panama we include in the last chapter of 4e, a topic related with responsible sales of alcohol beverages and also information of the laws that regulate the sales in the country.
Brett Bivans said:
Hi Jane, this is Brett Bivans from the International Alliance for Responsible Drinking (IARD, formally ICAP). The achievement of Beer, Wine and Spirits Producers' Commitments (www.producerscommitments.org) will also require the engagement of small retailers to achieve their goals and the social benefit of reducing harmful drinking, including reducing under age drinking. Including this in the value chain and the relationship with small retailers, where as Andres says 60% of sales can occur depending on the market in Latin America, can be a powerful social norms changer.
Miguel Aldaz said:
And here you can find more information on the regional initiative I mentioned earlier (I'm afraid it's only available in Spanish): http://reciclajeinclusivo.org/
Jane Nelson said:Andres can say more about this.
Jane Nelson said:Camilo, there is an example of a tendero's community leadership project that is about recycling. This could be an opportunity to deal with those issues and potentially generate additional income - it depends on the recycling environment in the country/locality.
Camilo Santa said:Thank you Justin, I'm thinking about the impact socially and on the environment that may generate scalating the distribution of products to rural communities that may not be able to deal with it by its own. For example indigenous or afro communities with no trash dissposition or no comparable experiences of having permanent alcohol distribution. I mean this must be taken in account as a core item and not as a marginal CSR matter. It is just as important as providing tools for financial endurability of the small businesses; it is about sustainability of the business as a whole.
Justin Bakule said:Camilo, thanks for this question - can you elaborate on what you mean by the "post consumption responsibility strategy"? In a program like 4e, I see the benefit case accruing to the company and to the retailers but you make a good point that there is a bigger loop created here that includes consumers.
Camilo Santa said:If the purpose is to create shared value, it is most important to incorporate a post consumption responsibility strategy when scalating markets through rural retailers, if not then it is just business as usual, don´t you think?
hi Andrés, this is Ines de Mosquera, thanks for the invitation. Great point made by Camilo; it´s critical to ensure long term impact
How about including an inverse logistic commitment as part of the company´s value proposition? ..Most rural communities in Latin America don´t have nor the institutional strenght nor the budget to develop recycling so interiorizing negative impacts of the business should most definately be considered, don't you think?
Jane Nelson said:
Camilo, there is an example of a tendero's community leadership project that is about recycling. This could be an opportunity to deal with those issues and potentially generate additional income - it depends on the recycling environment in the country/locality.
Camilo Santa said:Thank you Justin, I'm thinking about the impact socially and on the environment that may generate scalating the distribution of products to rural communities that may not be able to deal with it by its own. For example indigenous or afro communities with no trash dissposition or no comparable experiences of having permanent alcohol distribution. I mean this must be taken in account as a core item and not as a marginal CSR matter. It is just as important as providing tools for financial endurability of the small businesses; it is about sustainability of the business as a whole.
Justin Bakule said:Camilo, thanks for this question - can you elaborate on what you mean by the "post consumption responsibility strategy"? In a program like 4e, I see the benefit case accruing to the company and to the retailers but you make a good point that there is a bigger loop created here that includes consumers.
Camilo Santa said:If the purpose is to create shared value, it is most important to incorporate a post consumption responsibility strategy when scalating markets through rural retailers, if not then it is just business as usual, don´t you think?
Just to elevate a comment from Catalina on the recycling issue, which may have gotten buried in the threading. She says,
- Recycling is becoming an important concern among base of the pyramid. When asked about what they can do for their communities, many 4e tenderos say: promote post consumption recycling. It is good for the community but also a potential source of extra revenue.
Is it the case that there normally are disadvantages to working with SME? quality, lack of economies of scale; etc?
Be sure to check out this week's blog special with SABMiller on Helping Small Business Thrive:
- Beth Jenkins, Business Fights Poverty: Early Lessons and Strategic Questions from a Small Business Development Program on the Road to Scale
- Elfid Torres, FUNDES: SABMiller Boosts Business by Training Shopkeepers in Latin America
- Ignacio Giraldo, SABMiller Latin America: Aligning Corporate Affairs and Sales to Empower Small Retailers at Scale
- Andy Wales, SABMiller: Putting Enterprise and Livelihoods at the Heart of the New Development Agenda
- Hloni Matsela, SABMiller Africa: Helping Small Businesses Thrive in Africa
- Edy Ramos Torres, 4e Participant: An Interview with 4e Camino al Progreso Program Graduate
- Miguel Portillo, Banco Agricola: Partnering with a Large Beverage Company to Finance Small-Scale Retailers
- Estrella Peinado-Vara and Maria Elena Nawar, MIF, IDB: Small-Scale Retailers and Social Innovation
In the case of Backus (SABMiller Peru), through 4e program we have the opportunity to reach underdeveloped areas and promote community leadership in the bodegueros, to teach them how to solve issues in their own neighborhoods.
Hello, Hola, Hallo! This is Shuan, researcher on pro-poor innovation at the UN University (UNU-MERIT).
My question is about the incentive mechanisms for the local partners. Some potential partners might have a greater power in the local network, and it might not be easy to bring them onboard and convince them to share their resources (the typical "what is in it for me?" response).
Are there examples of incentive mechanisms to bring such local partners on board?
Hi Jane, we join from CREAME Business Incubator in Colombia. We have a lot of work to do in this field.
From Andrés Peñate. SABMiller. The network of retailers at the base of the pyramid offers a formidable platform for social innovation, as well as being an opportunity for all businesses that are fast moving consumer goods or those that are increasingly resembling them. 4e is a unique opportunity for companies to align their social investment programs with their business needs, for NGOs to find efficient ways to promote social change and governments to execute social policy. We at SABMiller are open to partnerships and alliances for 4e to tap this potential.
Hello. I'm Indira Doyen, External Communications Manager for Cervcería Nacional, SABMiller subsidiary.
Here in Panama 4e Program has a very positive impact in local tenderos. Cervecería Nacional reached more that 300 hundred tenderos and some of them are even starting new business thanks to the 4e Program.
We want to share some stories of Panamanian tenderos: http://bit.ly/1B7vlTJ
Hi Camilo and Justin. Iinvite you to visit www.reciclajeinclusivo.org it is an alliance among the MIF/IDB, Coca-Cola Latin America, PepsiCo, Avina and the Latin American Wastepickers Network (RedLacre). We are working together to make a more inclusive recycling sector in the region, including rural and island communities, also providing information on different producer extended responsibility schemes.
Camilo Santa said:
How about including an inverse logistic commitment as part of the company´s value proposition? ..Most rural communities in Latin America don´t have nor the institutional strenght nor the budget to develop recycling so interiorizing negative impacts of the business should most definately be considered, don't you think?
Jane Nelson said:Camilo, there is an example of a tendero's community leadership project that is about recycling. This could be an opportunity to deal with those issues and potentially generate additional income - it depends on the recycling environment in the country/locality.
Camilo Santa said:Thank you Justin, I'm thinking about the impact socially and on the environment that may generate scalating the distribution of products to rural communities that may not be able to deal with it by its own. For example indigenous or afro communities with no trash dissposition or no comparable experiences of having permanent alcohol distribution. I mean this must be taken in account as a core item and not as a marginal CSR matter. It is just as important as providing tools for financial endurability of the small businesses; it is about sustainability of the business as a whole.
Justin Bakule said:Camilo, thanks for this question - can you elaborate on what you mean by the "post consumption responsibility strategy"? In a program like 4e, I see the benefit case accruing to the company and to the retailers but you make a good point that there is a bigger loop created here that includes consumers.
Camilo Santa said:If the purpose is to create shared value, it is most important to incorporate a post consumption responsibility strategy when scalating markets through rural retailers, if not then it is just business as usual, don´t you think?
Gaston, on the supply side, certainly. On the retail side, there are certainly transaction costs, but small scale can also be an advantage in terms of providing capillarity into very low income communities.
Gaston Bilder said:
Is it the case that there normally are disadvantages to working with SME? quality, lack of economies of scale; etc?
SMEs can be challenging for the aspects you mention among others, but can also be part of the solution. Per example, in inclusive distribution channels we are seeing the use of microdistributors (i.e. SMEs) as a way to enable door to door sales channels, microfranchises, etc.
Gaston Bilder said:
Is it the case that there normally are disadvantages to working with SME? quality, lack of economies of scale; etc?
In this video two of our proud Panamanian rural women telling how 4e Program helped their business and the positive impact in their life.
I think the issues to consider are: Capital, New products, Better Margins and controls. The top small bussines needs reals tools d
to enforce.
Shuan Sadre Ghazi said:
Hello, Hola, Hallo! This is Shuan, researcher on pro-poor innovation at the UN University (UNU-MERIT).
My question is about the incentive mechanisms for the local partners. Some potential partners might have a greater power in the local network, and it might not be easy to bring them onboard and convince them to share their resources (the typical "what is in it for me?" response).
Are there examples of incentive mechanisms to bring such local partners on board?
- From A. Peñate. Hi Shuan. In case of 4e the incentive to bring partners have been of three types. For companies it is about having a new mechanism to strengthen their relationship with a key sales channel. For NGOs is about the possibility of bringing their services and goods to a large segment of the population at a lower cost (see the program with Coca Cola in Africa to distribute medicines in the crates). For governments is about having a new policy tool. The partnerships allow us to rip the benefits of the economies of scale and skill.