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Mondelēz International: effective PPA & disciplined execution pay off as MDLZ beats both top and bottom-line consensus with broad-based growth across all markets In the words of MDLZ CEO the key drivers of outperformance: - accelerate our core business and strategically reshaping our portfolio (Evrith...) - executing with excellence across categories, markets, and brands - reinvesting behind brands - driving distribution - expanding our capabilities - maintaining cost discipline 𝐐𝟑 𝐅𝐘𝟐𝟎𝟐𝟒 • NR: $ 9,204m • OSG: +5.4%; Volume: +0.3%, Price/ mix: +5.1% • GM%: 32.6%; -610 bps vs Q3 FY23 • Adj. OP%: 20.9%; +270 bps vs Q3 FY23 • Beats analysts’ consensus for revenue and EPS 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐛𝐲 𝐑𝐞𝐠𝐢𝐨𝐧𝐬 • Latin America: $1,204m NR; OSG: +2%; Vol: -3.9%, Price/ mix: +5.9% • Asia, Middle East, & Africa: $1,851m NR; OSG: 5.8%; Vol: +0.7%, Price/ mix: +5.1% • Europe: $3,323m NR; OSG: +8.1%; Vol: +0.5%, Price/ mix: +7.6% • North America: $2,826m NR; OSG: +3.7%; Vol: +1.7%, Price/ mix: +2.0% 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐛𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐓𝐲𝐩𝐞𝐬: • Emerging Markets: $ 3,530m NR; OSG: +4.9%; Vol: -1.0%, Price/ mix: +5.9% • Developed Markets: $ 5,674m NR; OSG: +5.6%; Vol: +1.0%, Price/ mix: +4.6% Fiscal 2024 Outlook – Reaffirms • Organic Net Revenue growth: to be at the upper end of 3-5% • Adjusted EPS growth: high single-digit on a constant currency basis based 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: Frederic Fernandez & Associates FF&A solves the most complex strategic problems of the world's largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (eCommerce, DTC, EB2B), and M&A. 14 out of the world's 20 largest FMCG companies are repeat Clients (more on FF&A website: https://lnkd.in/dc6jY4Qp) #fmcg #cpg

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A healthier and brighter future starts with a healthier mouth. Yet, oral health is an often-overlooked component of overall health, and people all over the world lack the resources to properly take care of their mouths. Recognizing these complex challenges, the World Economic Forum launched the Global Health Equity Network in 2023. Colgate-Palmolive is proud to be a part of this network to aid in accelerating oral health globally to ensure a healthier future for all. I'd like to spotlight my colleague Maria Ryan for her contribution to the World Economic Forum's report “The Economic Rationale for a Global Commitment to Invest in Oral Health.” At Colgate, we know that investing in oral health is an investment in a future we can all smile about. Read the full report here: https://lnkd.in/gtCpagqu #ColgatePalmolive #OralHealth #ConnectedHealth

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What do grocery data (how, when, and what you buy) and traditional credit scores have in common?  According to research by Professor Eric Anderson and his colleagues at Northwestern University - Kellogg School of Management, they both effectively predict how consistently you’ll pay off your credit card bills, making it an interesting alternative for lenders to gauge the creditworthiness of applicants who have no credit score. This could bring new customers to banks and improve access to credit for the 26 million in the US (and more than a billion globally) who are “unbanked.” Some findings: - People with consistent supermarket behaviors tend to pay their credit cards on time: They shop at regular times of the day and weekdays. They make repeat purchases. They spend about the same amount of money each time and look for bargains. Even controlling for credit scores, income, and socio-demographic factors, there was a correlation between grocery habits and credit risk. - It’s not just about how you shop but what you buy: Cigarette purchases are a big predictor someone will default (i.e., miss two consecutive credit card payments), as are those of highly processed foods and energy drinks. “The single greatest indicator of a non-defaulter. . . was spending a significant amount on vinegar salad dressing,” as well as ingredients that suggest healthier eating and home cooking, such as milk, flour, beans, and fresh produce. - Grocery data is most effective in determining the creditworthiness of credit card applicants who don’t yet have credit scores, but less effective in incrementally assessing those who already do. Similarly, the data is most helpful at predicting whether someone will default soon after they get a credit card; less useful once they begin to build a credit score. “‘That’s the world we’re heading towards, which is your data is going to be cutting across lots of different domains and being used in ways you may not have thought before,’ Anderson says.” On the one hand, it could provide access to a loan in the case of an emergency to those who might not otherwise be able to get one, and it can help lenders anticipate a default and intervene in advance, which is better for everyone. “Still, . . . the idea that the choices you make while filling up your grocery cart could impact other parts of your life in ways you don’t understand, or consent to, may sit uneasily with many.” #credit #data #shopping #shoppers #consistency #habits #creditrisk #supermarket #insights

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In the current inflationary market, PE’s value creation model must embed Operating Performance. Once a nice-to-have, this is now essential for achieving expected returns. Specially for smaller and mid-market companies, the Operating Partner has become an essential ingredient in unlocking value creation, moving from backseat to frontseat. The Operating Partner is crucial to drive bespoke margin expansion strategies to offset compressed multiples and potential valuation mismatches. Bridging private equity’s value creation gap - Private Equity & Principal Investors Practice - McKinsey & Company

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The US Beer industry landscape is changing fast. AB InBev's North America Normalized EBIT declined by over $1.3 B from 2022 to 2023. The volume market share decline (relative to Molson Coors Beverage Company and Constellation Brands) contributed to that EBIT decline by an amount of $400 Million. It has not helped that overall volumes between these three major players has declined by over 4%. It's a general sign of the headwinds facing the beer category as shopper and consumer preferences shift. For #ABInBev, that overall market decline cost them another $200M. A just less than 4% increase in Net Pricing contributed a +ve $560Million to the Normalized EBIT change, but was insufficient to mitigate the increased inflationary unit costs associated with Cost of Sales and the de-leveraging of other SG&A operating expenses. It will be interesting to track how these components of EBIT will change for 2024, given growth constraints associated with market share gains and price increase ceilings. Looks like some drastic OPEX cuts might be the only short-term remedy for now as AB InBev looks to rebuild brand equity and volume share. Send me a DM or write "send" in the comments section and I will forward you the document that also contains the related MVA operating breakdown for #MolsonCoors and #ConstellationBrands. It's interesting to see how and to what extent Molson Coors and Constellation Brands benefited from AB InBev's headwinds. You will also see why Constellation Brands might be the longer term winner here. #Beerindustry #beercategory #beerdistribution #Heineken #BeverageAlcohol #Asahi #Carlsberg #BostonBeer #beer #beverages #BudLight #MillerLite #CoorsLight #Corona #ModeloEspecial

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🚀 Mars-Kellanova Deal: A Game-Changer in the Global Snacking Industry Mars $36 billion acquisition of Kellanova is a bold move aimed at diversifying its product offerings and expanding into the rapidly growing savory snacks market. With Kellanova’s iconic brands like Pringles, Cheez-It, and Pop-Tarts, Mars is set to complement its existing portfolio and position itself as a leader in the global snacking category. This acquisition adds approximately $13 billion in annual sales from Kellanova, increasing Mars' total revenue to over $63 billion annually. 🔗 Key Highlights Brand Synergy: The combined portfolios create a snacking powerhouse, opening up opportunities for cross-promotion and innovation. Cultural Alignment: Both companies share a strong values-based leadership approach, ensuring a smooth integration process. Regulatory Screening: The deal is expected to withstand regulatory scrutiny, with analysts noting that while large, the acquisition should not raise significant antitrust concerns due to the complementary nature of the companies' product lines​. Financial Commitment: The deal’s valuation includes a premium of 44% over Kellanova’s 30-day trading average, reflecting Mars' confidence in long-term growth, despite the high investment​ 💪 Biggest Strengths Mars: Mars’ biggest strength lies in its proven brand-building capabilities and its leadership in the global confectionery market. With a 13.3% share of the global confectionery market, Mars has consistently demonstrated its ability to grow and sustain brands through strategic innovation and marketing. Kellanova: Kellanova’s strength is its diverse and globally recognized snacking portfolio, which includes some of the most beloved snack brands in the world. The company operates in 21 countries and markets its products in over 180 countries, giving it a vast global footprint​. ⚠️ Top Challenges Achieving Financial Returns: Mars will need to drive significant growth and cost synergies to justify the high acquisition price (16.4x of Kellanova’s last twelve months (LTM) adjusted EBITDA) Innovation Pressure: Refreshing Kellanova’s mature brands to meet evolving consumer preferences will be crucial. Navigating Market Dynamics: The competitive snacking industry requires Mars to stay agile and responsive to market changes. 👥 Consumer Impact Consumers can expect an expanded range of snacking options, improved global availability of Kellanova’s brands, and a stronger focus on “better-for-you” products and sustainability initiatives. This landmark deal sets a new precedent in the snacking industry, signaling a shift towards greater consolidation and the continued importance of innovation in driving growth. It’s a pivotal moment that will likely influence the future of snacking on a global scale. #Mars #Kellanova #Acquisition #BusinessStrategy #SnackingIndustry #ConsumerGoods #Innovation #Sustainability #Regulation #Strength Peak North

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As Amazon seeks to narrow the gap with Walmart in the grocery sector, both retail giants are emphasizing their private-label brands to attract consumers. Walmart recently launched its largest private-brand food initiative in two decades, introducing budget-friendly, "chef-inspired" products. Meanwhile, despite scaling back its private-label offerings in other categories, Amazon is expanding its selection on grocery as a critical area for growth. With the battle for consumer loyalty intensifying, especially as shoppers adjust their habits in response to inflation, exploring the strategic moves of these two companies in this competitive space can offer valuable insights. Check out the full article to learn more about this ongoing rivalry between Amazon and Walmart in the grocery industry. Walmart and Amazon Expand Private Label Plays to Compete in Grocery https://bit.ly/4bt1c7i

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There is a tremendous opportunity for brands and retailers to target Latin consumers in new ways that drive their business, and in my interview with PDG Insights Founder Diana Leza Sheehan, we touched on some of these opportunities that were uncovered by the company's recent U.S. Latino Pulse Study. The U.S. Latino market is comprised of 65 million people and is growing faster than any other group. It has $3 trillion in buying power - a number that is on track to more than double in coming years. Over 70% are under 45, so are coming into their spending power and having kids, meaning they will continue to be a powerful market for many years. U.S. Latin consumers place a lot of value on authentic, independent Latin retailers, particularly local stores. According to PDG Insights, more than 70% would be more likely to choose a Hispanic indie grocer over a national retailer if the indie retailer's store is closer. For larger chains looking to tap into this market, it's important to offer something authentic and that feels connected to their cultural identity. Some retailers, like H-E-B in Texas, Associated Supermarket Group in NYC, and Publix Super Markets in the Southeast are great at bridging the gap between original authentic Latino-focused experiences while also catering to the general population consumer. Latin consumers also prefer retailers that are very focused on the community. When it comes to brands, Latino consumers are looking for products that they recognize, that are tied to their culture, and that they grew up with. You'll find more details below in the video below, which is an excerpt from my full interview with Diana. For the full 16-minute interview, in which we give our take on our personal experiences as kind of Latin consumers ourselves (Diana's family comes from Mexico, and I have family from Puerto Rico) as well as some additional findings from the study, click the Youtube link in the comments! By the way - you may recognize Diana from one of the many presentations she has given both at ECRM Sessions as well as other events on behalf of some market information providers. She launched PDG Insights to unlock cost-effective consumer insights to craft retail sales narratives and brand strategies. If you are an emerging brand looking for insights to help with your buyer pitches -- drop her a line! #consumerinsights #hispanicconsumers #retail #cpg #ecrmrangeme

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Only 60 working days until the POI 2024 Fall Summit in Dallas, Texas, kicking off on November 13th! Don't miss out on the must-attend CPG event of the fall—register today: https://lnkd.in/gMR54kNi Wondering why you should attend? 🤝 Engage and Expand Your Network: Experience ample networking opportunities during breaks, lunches, and dinners to connect with industry peers, solution providers, and manufacturers. 🗒️ Pre-Conference Workshop: Dive into advanced skills and strategies in this interactive workshop. Explore best practices and develop a roadmap to steer your organization through economic uncertainties, ensuring sustainable growth. 💡 Peer Manufacturer Insights: Throughout the summit, gain invaluable insights from industry peers. Learn from their experiences, best practices, and challenges in deploying capabilities, equipping you with actionable strategies to implement in your organization. 💭 ROI-Centered Deep-Dive Workshops: Get all your burning questions answered in our concurrent workshops on TPx, RGM, Retail Execution, and Omnichannel Transformation. Experts will guide you through practical steps to refine your roadmap, providing actionable takeaways to propel your organization to the next level of success.

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Snacking trends are shifting in 2024! Circana's latest blog reveals key insights into how indulgent snacks like cookies and chips are dominating the market, while healthier options are on the decline. Consumers are also "snackifying" their meals for convenience, and snacking habits differ across generations, with Gen X leading the way. Discover how snacking is shaping the future of retail: https://bit.ly/3NwlGln

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Grocery CEOs who want to build a legacy of leadership should seriously consider the education programs from the Western Association of Food Chains. New research has proved their power in retaining high-potential associates – but the real impact of the programs extends far beyond the P&L. #grocery #retail #education #talent #development #retention #culture #leadership

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Gen Z is rapidly becoming a dominant force in the market, and its influence is reshaping entire industries. Prioritizing health and wellness, authenticity and digital connectivity, this generation is driving brands to innovate and adapt like never before. According to insights from FoodNavigator, companies that align with Gen Z’s commitment to personal well-being and ethical practices are leading the charge in this evolving landscape. Understanding and meeting these values is key to staying relevant and successful. Read how Gen Z is setting new standards in the market: https://bit.ly/3Svp5Uu Check out what COMET says about Gen Z here: https://lnkd.in/d973GHQV Donna Eastlake #genz #wellness #consumerbehavior #brandmanagement #productdevelopment

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Consumer escapism trends are on the rise. As people look for ways to de-stress, nostalgia, inspiration, aspiration, and self-care have become key themes in consumer shopping behavior. Read Circana's full report for more: https://bit.ly/4dwX46N

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This is a very interesting article regarding the impact of rising salary expectations in the FMCG industry which is being driven by rising costs of living. This challenge is not only affecting the FMCG industry and companies are looking for innovative ways to address this issue while attempting to minimize the impact on the cost of consumer goods. I would not be betting on the cost of everyday consumer goods to go down in the near future... Source: https://lnkd.in/gPDM2djP #panamex #fmcg #fmcgindustry #consumergoods #consumergoodsindustry #distributions #export #exportbusiness #shipping #shippingworldwide #business #globalmarket #australia #newzealand #pacificregion #indianocean #caribbean #usa #work #salary #recruitment #hiring #career #employee #employment #job #training

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300+ Years in the Game and Still Leveling Up 🥃 E&A Scheer the rum sourcing OG with over three centuries of expertise, is doubling down—literally. They’re investing to double their capacity as they gear up for major growth in premium rum. If this isn’t a sign of where the biggest players in the category are heading, I’m not sure what is. At Coconut Cartel, we’re right there with them. Premium rum is on the rise, and we’re pumped to be part of the movement. https://lnkd.in/ecBjMMrU

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Still the most recognizable book on modern trade promotion by consumer good companies, retailers, universities, trade organizations and industry experts. Check it out for yourself on your favorite book site. If you are spending the kind of money on your trade spend that everyone else is, go the distance and pick up this book!

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Check out this McKinsey podcast that captures trends in consumer wellness. In the interview, Anna Pione discusses key insights from recent research on the consumer wellness market, highlighting the global shift in consumer priorities toward health and wellness. The research, involved a survey of consumers in the US, UK, and China, and revealed that a significant majority view wellness as a crucial aspect of their lives, with increasing investment in categories like health, fitness, and nutrition. Interestingly, consumers are showing a preference for clinically effective products over merely "clean and natural" options, driven by a desire for proven results. The interview also touched on the importance of healthy aging and the rising interest in weight management and gut health, underscoring the opportunities for innovation in these areas. Lastly, Anna noted the pandemic's impact on consumer behavior, accelerating the focus on proactive health management and the potential of gen AI to personalize wellness interventions. LIsten to or read the script below. Happy learning! What’s new in consumer wellness trends? | McKinsey https://mck.co/4bhGGGZ

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October eGrocery Sales Reach Record Highs, Driven by Deep Discounts on Annual Memberships and Subscriptions Online sales continued their strong momentum in October, though growth was uneven across methods and competitors. Delivery emerged as the key beneficiary of promotional offers, with membership and subscription discounts primarily aimed at waiving delivery fees. Walmart, which reported its 3Q25 results yesterday, remains aggressive in this area, with ongoing promotional waves driving over 10% year-over-year growth in membership income. Walmart is also expanding its delivery model, increasing the share of orders fulfilled not only in-store but through its Spark driver network. This shift is helping reduce the cost per delivery significantly. Additionally, its advertising revenue continues to grow at a strong pace, helping to offset other investments and improve its contribution margin. We believe this surge marks the start of eGrocery’s next growth phase, fueled by aggressive promotional strategies, and expect this trend to continue in the months ahead. For more insights, listen to this month’s video where Mark Fairhurst, from Mercatus Technologies Inc, and I discuss the challenges and opportunities for regional grocers competing with giants like Walmart, especially in the delivery space. Grocers, message me to learn how Brick Meets Click can help strengthen your online services via deeper insights and better strategies.

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How PepsiCo’s Acquisition of Siete Foods Signals More M&A Activity 🌮🥤 PepsiCo’s recent acquisition of Siete Foods for $1.2 billion highlights a growing trend in the food and beverage industry—larger companies expanding their portfolios through strategic acquisitions of niche, culturally-driven brands. This move by PepsiCo brings an authentic Mexican-American brand into its lineup while expanding its focus on better-for-you products, a rapidly growing segment as consumers continue to seek healthier, innovative food options. This deal highlights several key points that signal further M&A activity, particularly in the public and private markets: Cultural & Health-Conscious Brands are in Demand: As consumer preferences shift, larger companies are looking for opportunities to diversify their product offerings by acquiring smaller, health-conscious brands with strong cultural resonance. We’ll likely see more acquisitions targeting brands that align with wellness trends and multicultural consumer bases. Growth through Acquisition vs. Organic Expansion: Companies are increasingly opting for acquisitions over organic growth to stay competitive. Buying an established brand like Siete allows PepsiCo to tap into new consumer segments and rapidly expand its presence in the health-food space without starting from scratch. Premium Valuations for Niche Brands: The $1.2 billion price tag reflects the premium that larger corporations are willing to pay for established brands with loyal customer bases. Expect to see higher valuations for private companies that have carved out niche markets with strong growth potential. Fueling the M&A Pipeline: This acquisition is likely just the beginning of a wave of deals across the industry. With large corporates holding significant cash reserves and favorable market conditions, we can expect heightened M&A activity in both the public and private sectors as companies look to accelerate growth and innovation through acquisitions. For example, LVMH also recently made a major move by investing in French Bloom, a $100 non-alcoholic “champagne,” signaling a shift in the beverage industry towards alcohol-free alternatives. Read more about PepsiCo's recent acquisition: https://prn.to/3XYrskz If your company is evaluating its strategic growth opportunities, including potential acquisitions or positioning for acquisition, now is the time to explore the landscape. #MergersAndAcquisitions #CFOInsights #BusinessStrategy #GrowthThroughAcquisition #FractionalCFO

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