Enough about the private labels (PL) bullshit On average, it is NOT the problem We keep reading reports on PLs gaining dramatic shares, that FMCG companies need to wake up to the threat. Not only it is largely missing the point but it crually lacks historic perspective PLs are one of the many consequences of the world largest FMCG companies' problem: the lack of consumer centricity & the corresponding inability to take 4Ps decision maximizing profit capture on their categories/ holistic consumer job to be done PLs have been growing at a moderate pace over the last 20 years, slightly outpacing the overall FMCG growth. Over a long period of time, PLs have largely failed to grow significantly outside of their strongholds (Household, some very specific F&B and BPC segments). They obviously tend to grow faster in downturns, yet mostly in their historic categories/ countries strongholds PLs are just one of the many consequences of the problem & sometimes even not the largest: - Now, the biggest challenge our industry faces is more about overall de-consumption than private labels - The second largest challenge is the increasing polarization in consumption between premium segments (often favouring smaller emerging brands) & the rest It reminds us an African proverb: When you show the moon to a child, it sees only your finger PLs is the 'finger', or even 'the nail on the finger'. The Moon is the largest dynamics at work in the FMCG industry (consumer purchasing power, increasing growth fragmentation at countries/ channels/ category level, increasing pressure from retailers treating very differently FMCG Winners & Losers, hugely varying financial room for manoeuver across FMCGs in a context 2/3 of them are still working towards recovering their pre-covid profitability level...) Not sure that as an industry we need to spend more time understanding the 'nail on the finger' but rather understanding the 'moon' & how to go holistically about it Time to refocus dramatically on organic (volume) growth & on the consumers, not on competitors, and surely not on imitators that explain too often a modest % of category value erosion Exciting times 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
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Solving the most complex strategic problems of the world largest FMCG companies. Strategy | Organic Growth | Digital Route-To-Market - Ecommerce, DTC, EB2B | M&A
Enough about the private labels (PL) bullshit On average, it is NOT the problem We keep reading reports on PLs gaining dramatic shares, that FMCG companies need to wake up to the threat. Not only it is largely missing the point but it crually lacks historic perspective PLs are one of the many consequences of the world largest FMCG companies' problem: the lack of consumer centricity & the corresponding inability to take 4Ps decision maximizing profit capture on their categories/ holistic consumer job to be done PLs have been growing at a moderate pace over the last 20 years, slightly outpacing the overall FMCG growth. Over a long period of time, PLs have largely failed to grow significantly outside of their strongholds (Household, some very specific F&B and BPC segments). They obviously tend to grow faster in downturns, yet mostly in their historic categories/ countries strongholds PLs are just one of the many consequences of the problem & sometimes even not the largest: - Now, the biggest challenge our industry faces is more about overall de-consumption than private labels - The second largest challenge is the increasing polarization in consumption between premium segments (often favouring smaller emerging brands) & the rest It reminds us an African proverb: When you show the moon to a child, it sees only your finger PLs is the 'finger', or even 'the nail on the finger'. The Moon is the largest dynamics at work in the FMCG industry (consumer purchasing power, increasing growth fragmentation at countries/ channels/ category level, increasing pressure from retailers treating very differently FMCG Winners & Losers, hugely varying financial room for manoeuver across FMCGs in a context 2/3 of them are still working towards recovering their pre-covid profitability level...) Not sure that as an industry we need to spend more time understanding the 'nail on the finger' but rather understanding the 'moon' & how to go holistically about it Time to refocus dramatically on organic (volume) growth & on the consumers, not on competitors, and surely not on imitators that explain too often a modest % of category value erosion Exciting times 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 #cpg #fmcg The Coca-Cola Company Nestlé PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Coty JDE Peet's Kenvue Haleon Bayer Sanofi Mars Bel Ferrero Reckitt
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Well said Nikhil. If I may go a little further, private label brands are not necessarily imitators. Many are developed independently by retailers specifically for their own stores. They often offer quality comparable to, or often exceeding, that of national brands, and score higher on ESG metrics at a more competitive price point. These are the fundamentals underpinning PL’s growth. Their ability to customise to retailer needs, optimised retail media use and, where available, data-led shopper insights to precision target is what differentiates them from brands and, when managed well, deliver Ebitda levels at brand level.
Enough about the private labels (PL) bullshit On average, it is NOT the problem We keep reading reports on PLs gaining dramatic shares, that FMCG companies need to wake up to the threat. Not only it is largely missing the point but it crually lacks historic perspective PLs are one of the many consequences of the world largest FMCG companies' problem: the lack of consumer centricity & the corresponding inability to take 4Ps decision maximizing profit capture on their categories/ holistic consumer job to be done PLs have been growing at a moderate pace over the last 20 years, slightly outpacing the overall FMCG growth. Over a long period of time, PLs have largely failed to grow significantly outside of their strongholds (Household, some very specific F&B and BPC segments). They obviously tend to grow faster in downturns, yet mostly in their historic categories/ countries strongholds PLs are just one of the many consequences of the problem & sometimes even not the largest: - Now, the biggest challenge our industry faces is more about overall de-consumption than private labels - The second largest challenge is the increasing polarization in consumption between premium segments (often favouring smaller emerging brands) & the rest It reminds us an African proverb: When you show the moon to a child, it sees only your finger PLs is the 'finger', or even 'the nail on the finger'. The Moon is the largest dynamics at work in the FMCG industry (consumer purchasing power, increasing growth fragmentation at countries/ channels/ category level, increasing pressure from retailers treating very differently FMCG Winners & Losers, hugely varying financial room for manoeuver across FMCGs in a context 2/3 of them are still working towards recovering their pre-covid profitability level...) Not sure that as an industry we need to spend more time understanding the 'nail on the finger' but rather understanding the 'moon' & how to go holistically about it Time to refocus dramatically on organic (volume) growth & on the consumers, not on competitors, and surely not on imitators that explain too often a modest % of category value erosion Exciting times 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
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Pricing is now strongly flowing to the bottom-line Out of the 45 FMCG companies in our coverage (world largest listed ones) this quarter, 29 reported gross margin % this quarter. 83% of those 29 reported an increase of gross margin % in Q3 vs. YAG. The expansion at some is dramatic (>500bps - Molson Coors Beverage Company, Kraft Heinz Procter & Gamble General Mills Kimberly-Clark) with an average expansion of 200 bps Q3 2023 earnings in the FMCG industry will likely be remembered as a Turning Point in this decade as: - Pricing gains are getting now annualized & volume losses are accelerating across the majority of verticals (although in a different proportion) - Top-line performance divergence accelerates across (e.g. Impulse F&B & Beauty vs. Rest)/ within (Food, Household or even Beauty) verticals with the number of FMCG companies that missed their top-line guidance this quarter that more than doubled (to 47%) while the number of FMCG companies that increased their top-line guidance remained stable (~30%). The overall signals a widening gap between Winners & Losers - Bottom-line out-performance (beats) accelerates (now 87% of our coverage) as pricing gains fall through the bottom-line - An increasing number of FMCG companies leverage large-scale stock buy-back programs to drive future EPS growth signaling the difficulty to sustain the current EPS algorithm & anticipating increasing challenges on organic growth - We are now seeing the pattern of an upcoming 'Shrinking To Glory' cycle with an increasingly challenging top-line environment (for most) & an increasing temptation to drive EPS through profitability improvement/ shares buy-back. In this context, we should remember about the hard learned lessons of the last decade (organic growth is the #1 driver for shareholder value creation) and refocus organizations on organic (volume) growth More on Q3 results in our latest publication: https://lnkd.in/exYzmYj4 Exciting & decisive times To get the deck, as usual, please leave your name in comment (invite/ DM us if we are not connected) and allow us few days To subscribe to our FMCG CEO newsletter: https://lnkd.in/eR8vDpvE Nestlé The Coca-Cola Company PepsiCo Unilever Mars Mondelēz International L'Oréal Danone Reckitt Henkel Essity The HEINEKEN Company Pernod Ricard Diageo Henkel Ferrero Lindt & Sprüngli Church & Dwight Co., Inc. Kenvue Haleon Bayer Colgate-Palmolive Bel Coty The Estée Lauder Companies Inc.
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Pricing is now strongly flowing to the bottom-line Out of the 45 FMCG companies in our coverage (world largest listed ones) this quarter, 29 reported gross margin % this quarter. 83% of those 29 reported an increase of gross margin % in Q3 vs. YAG. The expansion at some is dramatic (>500bps - Molson Coors Beverage Company, Kraft Heinz, Procter & Gamble, General Mills, Kimberly-Clark) with an average expansion of 200 bps Q3 2023 earnings in the FMCG industry will likely be remembered as a Turning Point in this decade as: - Pricing gains are getting now annualized & volume losses are accelerating across the majority of verticals (although in a different proportion) - Top-line performance divergence accelerates across (e.g. Impulse F&B & Beauty vs. Rest)/ within (Food, Household or even Beauty) verticals with the number of FMCG companies that missed their top-line guidance this quarter that more than doubled (to 47%) while the number of FMCG companies that increased their top-line guidance remained stable (~30%). The overall signals a widening gap between Winners & Losers - Bottom-line out-performance (beats) accelerates (now 87% of our coverage) as pricing gains fall through the bottom-line - An increasing number of FMCG companies leverage large-scale stock buy-back programs to drive future EPS growth signaling the difficulty to sustain the current EPS algorithm & anticipating increasing challenges on organic growth - We are now seeing the pattern of an upcoming 'Shrinking To Glory' cycle with an increasingly challenging top-line environment (for most) & an increasing temptation to drive EPS through profitability improvement/ shares buy-back. In this context, we should remember the hard learned lessons of the last decade (organic growth is the #1 driver for shareholder value creation) and refocus organizations on organic (volume) growth More on Q3 results in our latest publication: https://lnkd.in/exYzmYj4 Exciting & decisive times To get the deck, as usual, please leave your name in comment (invite/ DM us if we are not connected) and allow us few days To subscribe to our FMCG CEO newsletter: https://lnkd.in/eR8vDpvE Nestlé The Coca-Cola Company PepsiCo Unilever Mars Mondelēz International L'Oréal Danone Reckitt Henkel Essity The HEINEKEN Company Pernod Ricard Diageo Henkel Ferrero Lindt & Sprüngli Church & Dwight Co., Inc. Kenvue Haleon Bayer Colgate-Palmolive Bel Coty The Estée Lauder Companies Inc.
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Pricing is now strongly flowing to the bottom-line Out of the 45 FMCG companies in our coverage (world largest listed ones) this quarter, 29 reported gross margin % this quarter. 83% of those 29 reported an increase of gross margin % in Q3 vs. YAG. The expansion at some is dramatic (>500bps - Molson Coors Beverage Company, Kraft Heinz Procter & Gamble General Mills Kimberly-Clark) with an average expansion of 200 bps Q3 2023 earnings in the FMCG industry will likely be remembered as a Turning Point in this decade as: - Pricing gains are getting now annualized & volume losses are accelerating across the majority of verticals (although in a different proportion) - Top-line performance divergence accelerates across (e.g. Impulse F&B & Beauty vs. Rest)/ within (Food, Household or even Beauty) verticals with the number of FMCG companies that missed their top-line guidance this quarter that more than doubled (to 47%) while the number of FMCG companies that increased their top-line guidance remained stable (~30%). The overall signals a widening gap between Winners & Losers - Bottom-line out-performance (beats) accelerates (now 87% of our coverage) as pricing gains fall through the bottom-line - An increasing number of FMCG companies leverage large-scale stock buy-back programs to drive future EPS growth signaling the difficulty to sustain the current EPS algorithm & anticipating increasing challenges on organic growth - We are now seeing the pattern of an upcoming 'Shrinking To Glory' cycle with an increasingly challenging top-line environment (for most) & an increasing temptation to drive EPS through profitability improvement/ shares buy-back. In this context, we should remember about the hard learned lessons of the last decade (organic growth is the #1 driver for shareholder value creation) and refocus organizations on organic (volume) growth More on Q3 results in our latest publication: https://lnkd.in/exYzmYj4 Exciting & decisive times To get the deck, as usual, please leave your name in comment (invite/ DM us if we are not connected) and allow us few days To subscribe to our FMCG CEO newsletter: https://lnkd.in/eR8vDpvE Nestlé The Coca-Cola Company PepsiCo Unilever Mars Mondelēz International L'Oréal Danone Reckitt Henkel Essity The HEINEKEN Company Pernod Ricard Diageo Henkel Ferrero Lindt & Sprüngli Church & Dwight Co., Inc. Kenvue Haleon Bayer Colgate-Palmolive Bel Coty The Estée Lauder Companies Inc.
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Solving the most complex strategic problems of the world largest FMCG companies. Strategy | Organic Growth | Digital Route-To-Market - Ecommerce, DTC, EB2B | M&A
Pricing is now strongly flowing to the bottom-line Out of the 45 FMCG companies in our coverage (world largest listed ones) this quarter, 29 reported gross margin % this quarter. 83% of those 29 reported an increase of gross margin % in Q3 vs. YAG. The expansion at some is dramatic (>500bps - Molson Coors Beverage Company, The Kraft Heinz Company Procter & Gamble General Mills Kimberly-Clark) with an average expansion of 200 bps Q3 2023 earnings in the FMCG industry will likely be remembered as a Turning Point in this decade as: - Pricing gains are getting now annualized & volume losses are accelerating across the majority of verticals (although in a different proportion) - Top-line performance divergence accelerates across (e.g. Impulse F&B & Beauty vs. Rest)/ within (Food, Household or even Beauty) verticals with the number of FMCG companies that missed their top-line guidance this quarter that more than doubled (to 47%) while the number of FMCG companies that increased their top-line guidance remained stable (~30%). The overall signals a widening gap between Winners & Losers - Bottom-line out-performance (beats) accelerates (now 87% of our coverage) as pricing gains fall through the bottom-line - An increasing number of FMCG companies leverage large-scale stock buy-back programs to drive future EPS growth signaling the difficulty to sustain the current EPS algorithm & anticipating increasing challenges on organic growth - We are now seeing the pattern of an upcoming 'Shrinking To Glory' cycle with an increasingly challenging top-line environment (for most) & an increasing temptation to drive EPS through profitability improvement/ shares buy-back. In this context, we should remember about the hard learned lessons of the last decade (organic growth is the #1 driver for shareholder value creation) and refocus organizations on organic (volume) growth More on Q3 results in our latest publication: https://lnkd.in/exYzmYj4 Exciting & decisive times To get the deck, as usual, please leave your name in comment (invite/ DM us if we are not connected) and allow us few days To subscribe to our FMCG CEO newsletter: https://lnkd.in/eR8vDpvE Nestlé The Coca-Cola Company PepsiCo Unilever Mars Mondelēz International L'Oréal Danone Reckitt Henkel Essity The HEINEKEN Company Pernod Ricard Diageo Henkel Ferrero Lindt & Sprüngli Church & Dwight Co., Inc. Kenvue Haleon Bayer Colgate-Palmolive Bel Coty The Estée Lauder Companies Inc.
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Strategic Financial Leader ★ Chartered Accountant (CA) ★ Turnaround & Restructuring Specialist ★ Driving Growth & Optimizing Cash Flows ★ Leader in Investor Relation ★ Passionate for Financial Innovation & Sustainability
FMCG Q4 FY24 Preview - The verdict is in for FMCG is a mixed bag, presenting a blend of challenges and opportunities. Here's a sneak peek into what's in store for us. 🔍 🏡 𝐔𝐫𝐛𝐚𝐧 𝐖𝐢𝐧𝐬, 𝐑𝐮𝐫𝐚𝐥 𝐒𝐭𝐫𝐮𝐠𝐠𝐥𝐞𝐬, 𝐆𝐥𝐨𝐛𝐚𝐥 𝐒𝐡𝐢𝐧𝐞𝐬 𝐁𝐫𝐢𝐠𝐡𝐭 The FMCG sector is poised for a challenging ride, with low-to-mid-single-digit volume growth primarily driven by urban demand. However, concerns loom over rural markets, where growth remains stagnant across several categories. Yet, amidst the obstacles, opportunities for outperformance shimmer in the international arena for many FMCG players. 🌾𝐑𝐮𝐫𝐚𝐥 𝐑𝐞𝐬𝐮𝐫𝐠𝐞𝐧𝐜𝐞 Despite challenges, signs of rural resurgence are emerging, fueled by price rollbacks in staples and robust distribution expansion. This signals a narrowing gap between rural and urban markets, setting the stage for a potential rebound in consumption in the coming months. ❄☀ 𝐖𝐢𝐧𝐭𝐞𝐫 𝐖𝐚𝐫𝐦𝐞𝐫, 𝐒𝐮𝐦𝐦𝐞𝐫 𝐒𝐢𝐳𝐳𝐥𝐞𝐫 The transition from winter to summer brings forth its own set of challenges, with a slight rise in winter care product demand offset by weak demand for carbonated beverages due to unseasonal rains. However, with the IMD predicting extreme heat conditions for Q1FY25, a positive uptick is on the horizon. 💡🎯 𝐄𝐱𝐩𝐞𝐫𝐭 𝐏𝐫𝐨𝐣𝐞𝐜𝐭𝐢𝐨𝐧𝐬 Industry experts anticipate a modest revenue growth of 2% in Q4FY24, with EBITDA and net profit growth pegged at 5% each on a YoY basis. Pidilite Industries, Indigo Paints, and United Breweries are anticipated to lead volume growth, while staples giants like Godrej Consumer Products and Britannia Industries are poised to shine. 📈 𝐌𝐚𝐫𝐠𝐢𝐧 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬 While gross margin expansion is expected in Q4FY24, the pace may be modest, with potential impacts from shipping costs and delays due to external factors like the Red Sea crisis. However, as raw material prices surge, companies may explore pricing strategies in the latter half of FY25 to maintain profitability. 📢 𝐒𝐨, 𝐰𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧 𝐭𝐨 𝐲𝐨𝐮? What strategies do you think FMCG companies should adopt to navigate the challenges and capitalize on opportunities in the current market landscape? Are you stocking up on sunscreen in anticipation of the heatwave? 𝐒𝐡𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐢𝐧𝐬𝐢𝐠𝐡𝐭𝐬… 𝐋𝐞𝐭'𝐬 𝐜𝐡𝐚𝐫𝐭 𝐨𝐮𝐫 𝐜𝐨𝐮𝐫𝐬𝐞 𝐭𝐨 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐭𝐨𝐠𝐞𝐭𝐡𝐞𝐫 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬!💪
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The Elephant is staying in the room Looking at the quarterly vol./ value net revenue evolution for the top 40 listed FMCG companies reporting vol., the overall des-averaged per FMCG vertical, few learnings emerge: 1) At a macro level, volumes improved in Q4 ’23 compared to Q3 ’23 (-0.9% vs -1.4%) while pricing has been consistently slowing down since its peak in Q4 ’22 across most of the verticals 2) BPC (Beauty Personal care) remains resilient while Alcoholic Drinks suffer the most followed in a distance by F&B. CHC (Consumer Health Care) volume losses are mostly driven by C&F season comps 3) Behind those averages per vertical, situation varies greatly per company (e.g. The Estée Lauder Companies Inc., Shiseido, Reckitt, Henkel being bottom performer in their respective verticals) 4) Price elasticity (PE) over the last 12 months came much lower than historic PE levels because of generalized high inflation & consecutive consumer acceptance 4) We expect a particularly challenging H1 2024 on volume front, especially on Alcoholic Drinks and F&B, both representing ~80% of the entire FMCG industry 5) Beyond, we expect a rapid desinflation (2024) - deflation (2025) sequence that will be the most brutal one over the last 20 years that will create unprecedented pressure on profitability in a context where 70% of the world largest FMCG companies are yet to recover their pre-COVID profitability levels In this challenging context, there is only one way forward: refocus drastically all our resources to organic (volume) growth & expand margin moderately yet continuously Exciting year ahead 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 read our full publication on 2023 Results: https://lnkd.in/eQ7BPGtd To receive the corresponding deck, leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE The Coca-Cola Company Nestlé PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Coty JDE Peet's Kenvue Haleon Bayer Sanofi Mars Bel Ferrero
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Where has been price elasticity for the world largest FMCG companies? Price elasticity over the last 12-24 months in the FMCG industry came much lower than historic levels because of generalized high inflation & consecutive consumer acceptance For the most price elastic verticals (F&B, household, alcoholic drinks), we noticed on average a mere low to mid single digit volume decline over the last 2 years despite staked-up price increase in the 15-25%... Better, volume improved slightly in Q4 ’23 compared to Q3 ’23 (-0.9% vs -1.4%) Don't take us wrong, the coming quarters will be very challenging for most FMCG companies (cf. the >50% of top FMCGs that missed their top-line consensus) as they need to dramatically refocus on top-line growth & volume declines are not over but let's look at facts: For now, volumes held up pretty nicely for most in a context of unprecedented inflation The future may well tell a different tale as we contemplate now a rapid deflation to desinflation sequence with consumer purchasing power expected to remain under pressure We have seen this movie before over the last decade with memorable consequences on market share/ top-line for most FMCG companies Time for all to dramatically refocus on organic (volume) growth Exciting times 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 read our full publication on 2023 Results: https://lnkd.in/eQ7BPGtd To receive the corresponding deck, leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #cpg #fmcg The Coca-Cola Company Nestlé PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Coty JDE Peet's Kenvue Haleon Bayer Sanofi Mars Bel Ferrero
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Solving the most complex strategic problems of the world largest FMCG companies. Strategy | Organic Growth | Digital Route-To-Market - Ecommerce, DTC, EB2B | M&A
Where has been price elasticity for the world largest FMCG companies? Price elasticity over the last 12-24 months in the FMCG industry came much lower than historic levels because of generalized high inflation & consecutive consumer acceptance For the most price elastic verticals (F&B, household, alcoholic drinks), we noticed on average a mere low to mid single digit volume decline over the last 2 years despite staked-up price increase in the 15-25%... Better, volume improved slightly in Q4 ’23 compared to Q3 ’23 (-0.9% vs -1.4%) Don't take us wrong, the coming quarters will be very challenging for most FMCG companies (cf. the >50% of top FMCGs that missed their top-line consensus) as they need to dramatically refocus on top-line growth & volume declines are not over but let's look at facts: For now, volumes held up pretty nicely for most in a context of unprecedented inflation The future may well tell a different tale as we contemplate now a rapid deflation to desinflation sequence with consumer purchasing power expected to remain under pressure We have seen this movie before over the last decade with memorable consequences on market share/ top-line for most FMCG companies Time for all to dramatically refocus on organic (volume) growth Exciting times 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 read our full publication on 2023 Results: https://lnkd.in/eQ7BPGtd To receive the corresponding deck, leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #cpg #fmcg The Coca-Cola Company Nestlé PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Coty JDE Peet's Kenvue Haleon Bayer Sanofi Mars Bel Ferrero
General Manager Oral Care CSCI at Perrigo Company plc
3moWell said Nikhil. If I may go a little further, private label brands are not necessarily imitators. Many are developed independently by retailers specifically for their own stores. They often offer quality comparable to, or often exceeding, that of national brands, and score higher on ESG metrics at a more competitive price point. These are the fundamentals underpinning PL’s growth. Their ability to customise to retailer needs, optimised retail media use and, where available, data-led shopper insights to precision target is what differentiates them from brands and, when managed well, deliver Ebitda levels at brand level.