Diego Granizo

Did you know 65% of breakfasts are whipped up in under five minutes? Fascinating new Food and Beverage insights in the latest Circana report. Consumer tastes and trends continue to evolve! Access the report today.

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Did you ever think of shopping as a team sport? Our #pepviz Hispanic Shopper Insights reveal that 79% of Hispanics go shopping with someone else. This makes them twice as likely to shop with others than shoppers in general and also 77% more likely to like and engage with store displays. This is why it’s so important for us at PepsiCo to innovate products and create new campaigns to engage with all of our customers and consumers.   Learn more interesting Hispanic Shopper behaviors and findings here: https://bit.ly/pepviz-data   Kate Garner, Antonio Escalona, Esperanza Teasdale, Erin Ness Cathey, Shannon Amundson, Ryan Sexton, Aracely (Cely) Moreno-Mosier, Valeria Rivas, Monica Bauer Mengelberg

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PepsiCo today announced its Q2 2024 financial results. At a total company level it missed expectations for second-quarter revenue, as a series of price hikes and competition from private-label brands slowed sales of its snacks and sodas mainly in the United States, its largest market and consumers buying lower volumes. Analysts have said that product prices, which are starting to normalize after nearly two years of multiple hikes, are still higher than pre-pandemic levels, giving packaged-food companies such as PepsiCo little room to raise prices as volumes shrink, with price conscious consumers opting to either buy less or choose smaller pack sizes. PepsiCo raised average product prices by +5% for the quarter ended June 15, in line with the first quarter. However, overall organic volumes slipped -3% in the reported period, volumes subdued as consumers had become more value-conscious while spending. "Throughout we are seeing much more price sensitivity and consumers looking for more value across all income groups. Now that is something that we have to take into consideration," PepsiCo CEO Ramon Laguarta For the PepsiCo beverages portfolio, North America delivered +1 percent organic revenue growth in the second quarter of 2024, which compares to +10 percent organic revenue growth in the second quarter of 2023. Net revenue growth accelerated sequentially for Pepsi and Mountain Dew, as zero sugar variants and certain flavor extensions continued to perform well. Gatorade brand gain market share in the sports drinks category in the second quarter. Other brands such as Bubly and Propel delivered double-digit and mid-single-digit net revenue growth, respectively, in the second quarter. PepsiCo beverages business will continue to focus on driving profitable growth with focus on the following areas; • Scaling positive choice offerings such as the zero sugar variants that can now be found across the portfolio of key brands including Pepsi, Mountain Dew, Gatorade, Starry, Mug, Rockstar and most recently, Lipton Pure Leaf; • Extending sports nutrition and hydration solutions with Gatorade, Propel, Bubly and LifeWTR brands – which includes our continued initiatives to expand beyond the bottle at Gatorade and Propel with enhancers, tablets, and powders; • Advancing its presence within the highly profitable energy drink category through its existing brands and successful distribution partnership with Celsius. #pepsico #pepsi #beverages #energydrinks #zerosugar #sportsdrinks #soda #softdrinks #celsius Simon Redshaw Simon Bellchambers Richard Heapes Sheelagh Pentony Thomas Hahlin Ahlinder Erlon Pereira Carol Dunne Gwyneth Kelly Nicola Weldon Marc LEJEUNE Joshua Schall, MBA Jim Watson William Lynch Romel Doshi, MBA Sam Choucha Jean Noel Ortal David Deeley Brian Short Farrah Gilsenan

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Snack or meal? The lines are blurring as consumer behaviors evolve. From on-the-go bites to mini-meals, flexibility is key in meeting changing preferences. Dive into the latest trends reshaping our eating habits! Convenience Store News https://bit.ly/3wjIwI9

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Are premium innovations all the #CPG players have to offer to (cost-of-living-stressed) consumers? At a time all #FMCG companies are doubling down on organic growth, most are accelerating their innovations machine, often with premium priced innovations. That could end up being a large resources misallocation (dilution of scarce shelf space, marketing investments, supply chain & organizational resources) & a major strategic misstep for many At a time the largest threat is de-consumption, more premium priced innovations will just not cut it The painful truth is that too many FMCG marketing organizations do not own the 4Ps and are solely focused on ‘global innovations/ marketing campaigns’. Then the organizational bias/ 'default setting' is to try to solve all brands’ problems with those two levers (global product innovations & media) In the current context, those could be deadly mistakes We continue to be amazed by the little resources that get into: i)  Generally, understanding rigorously Consumers, esp. their barriers/ drivers/ triggers/ 4Ps preferences ii) Specifically understanding what: - The Heavy Consumers have in common/ try to recruit more of them - Are the addressable lapse/ non-users’ barriers iii) Leveraging strategic segmentation to identify under-served segments & craft ownable strategies to address them iv) Rethinking how to recruit/ retain Consumers with innovative marketing/ point of market entry strategies Etc… Marketing leaders need to have a holistic view on what are the levers across all the 4Ps that will drive the most disruptive return There will be no sustainable (volume) growth outperformance in many FMCG organizations without strenghtening the Marketing Function & giving them formally full 4Ps ownership. That goes against the last decade Doxa but it is essential 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #strategy Frederic Fernandez & Associates

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Do well by doing good. As leaders in business, we're constantly seeking the ROI on virtually everything. But here's the real question: Are we measuring the right things on our initiatives? .......... Too often, businesses fall into the trap of assuming a zero-sum game with spending and returns. .......... But the truth is, compounded impact is on our side when we do the right thing: ☑ Investing time, effort, and resources in people leads to fulfillment, motivation, and impact on the team. ☑ Investing in creating community with your brand results in loyalty, retention, and virality for your solution. ☑ Investing focus, prioritization, and resources in your mission creates a future state of the world that you, your stakeholders, and consumers want. ......... I've seen this firsthand. From Nuun Hydration, to Caldrea, to Kashi Company, and to SC Johnson. In every case, we did really well by doing good for the world. ......... How are you compounding your goodness as a team? #cultureFIRSTleadership PS: The facts support this hypothesis, see below 👇

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Our latest Integrated Report showed, amongst many other things, how far we have come toward achieving our purpose at Philip Morris International: to completely replace cigarettes with #smokefree products in a responsible way.🚭 Following the release of the PMI Integrated Report 2023 last month, I am delighted to share the Top 10 Takeaways from the report. Here are a few highlights with data as of the end of 2023: 🌍 84 markets where smoke-free products are available for sale 📈 33 million users of PMI smoke-free products, including 28.6 million IQOS users 🚭 98% of total shipment volume covered by youth access prevention programs 🚚 28% shipment volume decrease for our combustible tobacco products ♻️ 320,000 smoke-free electronic devices refreshed or repaired since 2021 Our goals mean nothing without action, and our action means little without transparent reporting. Our journey is powered by case studies and market stories that show real impact and highlight how PMI affiliates worldwide are critical to achieving our sustainability goals. We are committed to sharing measurable results towards our vision of achieving a #smokefreefuture and I am thrilled to see how much progress we have made. Bravo to those who have continuously and passionately taken our journey forward, keeping the planet and those on it at the core of our aspirations.💪 #PMI #Sustainability Jennifer Motles, Emmanuel Babeau, Bin Li

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I'll be at 👉 (https://lnkd.in/geS8v3aq) the NielsenIQ C360 conference in Phoenix - May 13-16 as The CPG Guys. Will you be there as a senior leader to discuss today's important #cpgindustry topics? 1.) Total store optimization in a post pandemic world? 2.) What does today's truly #omnichannel shopper journey look like? Have #retailmedia networks changed full funnel #omnichannelmarketing? 3.) Of course, all about #artificalintelligence 4.) #innovation - most large brands temporarily slowed it down over the pandemic - now its back to the mayhem. Shelf space is not unlimited - who wins, who loses and who doesn't belong on the shelf in the first place. Watch Liz Buchanan (NA, president), Jamie Clarke (NA retail), Andrew Criezis (President, #ecommerce) and so much more.

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#FMCG companies aim to divest their way to growth Divesture value has been exceeding acquisitions value for the world largest #CPG players since 2023, and it is likely to continue considering recent announcements (Unilever Ice Cream) & on-going rumors (Kraft Heinz & Oscar Mayer...) Few reasons for this: 1) Pressure is on to get back to mid-term guidance on top-line which is often hard in a post price increase context (>50% of the top 50 listed FMCG companies missed their topline guidance in Q4 2023) while recovering pre-COVID profitability (at end 2023 >70% failed to do so) 2) Divesture is often the fastest/ easiest way to improve organic growth & profitability footprint especially when companies have a large business with much lower growth, much lower profitability & that comes with limited di-synergies in case of carve-out 3) If leverage level for the top 50 FMCG companies is on average at an acceptable level (x2.7 at end 2023 vs. the generally accepted x3 level), some FMCG companies exceeds the threshold (AB InBev, Kraft Heinz, Nestlé, Mondelēz, General Mills, Danone, HEINEKEN, Asahi, CCEP...) 4) At a time top-line growth is becoming tougher, shares buy-backs are increasingly leveraged to drive EPS growth. So the proceeds of divesture can really help there especially for the companies with the most constrained B/S 5) Finally, high ROI M&A remain scarce because of the rarity of quality (mid-size, same categories than acquirer's, strong growth track record, complementary to acquirer's portfolio, scalable growth model that could benefit from GTM synergies) & well-priced assets PE funds & public markets (thru IPOs) will be most often the exit scenarios for those divestures. If large FMCG carve-out assets can sometimes deliver better results under (partial) private ownership (cf. Froneri), not all end up being a success. So caution prevails Exciting times ahead on divesture and M&A front in the FMCG industry in 2024 To read our full perspective: FMCG CEOs: M&A Q1 2024 In Review - A New Bottom & Four Reinforcing Trends 𝗟𝗶𝗻𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: https://lnkd.in/efD5RNWX 𝗧𝗼 𝗴𝗲𝘁 𝘁𝗵𝗲 𝗰𝗼𝗿𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗶𝗻𝗴 𝗱𝗲𝗰𝗸, 𝗽𝗹 𝗹𝗲𝗮𝘃𝗲 𝘆𝗼𝘂𝗿 𝗻𝗮𝗺𝗲 𝗶𝗻 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #strategy #mergersandacquisitions Frederic Fernandez & Associates

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Global beverage alcohol 🍷🍸🍺 market set for moderate recovery in 2025, while challenges persist in 2024 IWSR data shows that India, China and the US will be key value growth drivers, adding US$30bn in incremental value by 2028; brand owners will have to navigate an increasingly complex macroeconomic and regulatory landscape. Following declines in 2023 and continued challenges in 2024, global beverage alcohol is expected to begin its recovery in 2025, according to comprehensive new data and forecasts from IWSR, the global authority on beverage alcohol data and intelligence. For the first time in nearly 30 years, IWSR recorded a decline (-2% in 2023) in the volume of spirits sold in the key US market. Meanwhile, global total beverage alcohol (TBA) declined -1% by volume and rose +2% by value (US$, variable exchange rate) in 2023. Excluding national spirits such as baijiu and shochu, global volumes were down -1% and value increased by +3%. While some more positive signs are starting to emerge in 2024, the global TBA market remains subdued after several years of above-trend growth, with challenges expected to continue until 2025 as household spending rebalances after strong inflationary pressures of the past 2 years. TBA volumes are expected to edge up by only +0.4% this year. Growth opportunities 💡 ✨️ are in RTD formats, premix cocktails, premiumisation, zero alcohol and signs of a (slight) rebound for the beer 🍺 segment. For any alcohol beverages manufacturer or brandowner looking to create the next great tasting innovative 💡 alcohol or zero alcohol 🍸 beverage, please do get in touch the team at Kerry is here to help. #alcohol #beer #wine #spirts #rtd #zeroalcohol #taste Lars Jensen Paul Villis Carol Dunne Jean Noel Ortal Kristof König Jean-Philippe Delforge Linda Chatton David Deeley Brian Short Thomas Hahlin Ahlinder John Savage Sheelagh Pentony Virginia Traldi Nina Riggins Elizabeth Horvath Travis Ralph Chantal Drolet Marc LEJEUNE Farrah Gilsenan Michel Aubanel Gilles Halotel Bourcard Nesin Jim Watson Francois Sonneville Stephen Rannekleiv John Craven Bryan Roth

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Great to see companies adopting this framework. I talked about this at IFT last year on the trend and how to position flavors for success.

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🌎 PepsiCo is steamrolling ahead to meet their 2030 targets after reaching their water-use efficiency goal in high-risk areas a whopping two years ahead of schedule. With this achievement, PepsiCo: -has seen a 25% improvement in operational water-use efficiency in high water-risk areas -is at the top 0.5% of the 21,000 companies CDP, a global environmental non-profit, scored -has and is implementing new #bioreactor technologies at manufacturing sites in high #waterrisk sites to purify process water, allowing sites to reduce their freshwater demands by an average of 70% 🚀 Reaching sustainability targets ahead of schedule demonstrates PepsiCo's dedication to innovation and environmental responsibility, hopefully inspiring other corporations to shift their focusses towards sustainable action! #sustainability #sdgs #sustainableaction #circularity #water https://lnkd.in/gQx6hkcq

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🌎 PepsiCo is steamrolling ahead to meet their 2030 targets after reaching their water-use efficiency goal in high-risk areas a whopping two years ahead of schedule. With this achievement, PepsiCo: -has seen a 25% improvement in operational water-use efficiency in high water-risk areas -is at the top 0.5% of the 21,000 companies CDP, a global environmental non-profit, scored -has and is implementing new #bioreactor technologies at manufacturing sites in high #waterrisk sites to purify process water, allowing sites to reduce their freshwater demands by an average of 70% 🚀 Reaching sustainability targets ahead of schedule demonstrates PepsiCo's dedication to innovation and environmental responsibility, hopefully inspiring other corporations to shift their focusses towards sustainable action! #sustainability #sdgs #sustainableaction #circularity #water  https://lnkd.in/gQx6hkcq

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Unlocking Profitability: The Power of Modeling Beer Product Costs to Maximize Margins As demonstrated by the robust performance of Heineken, adeptly navigating increased raw material costs through strong cost control measures, coupled with a strategic emphasis on driving sales across diverse markets, has proven instrumental in achieving enhanced margins and bolstered profits. Controlling direct costs through sophisticated Cost models plays a pivotal role by providing granular insights into the intricacies of production expenses, raw material procurement, and packaging overheads. Like the beer, these meticulously crafted models enable breweries to identify cost-saving opportunities, optimize resource allocation, and make informed decisions that ultimately bolster their bottom line. In essence, the integration of Cost models empowers breweries to navigate the complexities of the market landscape with precision, ensuring sustainable growth and competitive advantage in the dynamic world of brewing. https://hubs.ly/Q02vkPC60 Harry Wilkinson-Roberts Jay Inamdar Stewart Jones George Williams #procurement #brewing #beer

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Challenging times ahead of #FMCG players? After a period of unprecedented inflation, where most/ all FMCGs benefited from double-digit pricing gains (outpacing the COGS inflation), the pricing gains are drying up, while the volumes keep stagnant/ declining, leaving #CPG players with a rather bleak outlook Most of the FMCG players rely on a strong middle class (additional $100bn income won't make Elon Musk buy any more shampoo/ detergent than he does today), and we have been facing the largest transfer of wealth from the middle class to the super-rich (>66% of all the wealth 'printed' since 2020 ended up with the top 1%) causing their purchasing power/ financial stability to drastically decline with many metrics hitting the worst situation since 2008/09 downturn If so far the volume declines were moderate, it was driven mostly driven by spending of accumulated savings and increased consumption credit (mostly cards), but: - saving rate at the lowest level since 2008 - credit card delinquency rate at the highest since 2011, and the highest since 1991 in small banks (excl. top 100) - consumer debt already higher vs pre-pandemic levels, - first since 2009 decline in avg. Credit Score resulting in slowdown in new credit origination Maintaining the pre-pandemics consumption will result tricky for many consumers. As most of consumer goods are not really discretionary, many middle class consumers will switch to Private Labels/ value brands, while 'the rich' will continue shoppinh luxury tier. As such, we may expect strong demand for the entry level and luxury segments, while the mid-tier will face drop in demand. The upcoming quarters will bring some important decisions for many Brands willing to defend/ expand their positions, and/ or adjust according to shifting demand #strategy Frederic Fernandez & Associates

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