Enrique C.

Beverage brands—learn what top acquirers like Coca Cola are buying through their corporate transcripts   Coca Cola executive management openly share 3 key themes in how they're thinking about the brand portfolio at the CAGNY consumer conference in February '24:   1. There's still ammo to acquire 💲   --- Coca Cola plans to increase investments into its brand portfolio in 2024 up to $2.2 billion.   --- The company still sits well below its net debt leverage target of 2.5x (1.7x in 2023) => access and appetite to acquire more brands.   --- It's clear from their concurrent divesture of bottling plants that they want to double down on the asset-lite approach with brands. 2. Focus on buying fewer, more scalable brands 📈   --- The company is turning away from buying smaller brands to only fit 1 or 2 markets.   --- Management is making sure "inorganic plays have got a higher probability for a scalable impact" so that its cost base is more efficient. 3. Keep betting on sparkling beverages 🥤   --- The CEO, James Quincy, continues to stay excited about sparkling beverages and has bets across all the subcategories like caffeinated, zero sugar, and all forms of flavors.   --- He sees strong growth continuing without much in the way to stop it. Comment about a beverage category you're particularly excited about!

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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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I have been a prospect of a leader all my life, a challenging and satisfying journey I have been on for more than 40 years. In this post, I share three critical learnings from my failures and successes.  Starting with understanding that traditional operational metrics are just part of it. I hope this is of help to many striving to become the best leader they can be.

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Here’s an excerpt from the book that deeply resonated with me, couldn't stop sharing it, "Finding your purpose – While a purpose deeply moves your consumers and can build loyalty through connection, it also turns into a responsibility. Once a brand articulates a purpose or a clear point of view, consumers expect consistency and authenticity." I’ve often tried to discover my purpose, and each time I get a little closer. This definition of purpose — whether for a brand or a human being — speaks volumes to me. Reading this book felt like having a personal conversation with Saurabh, where he shared his invaluable experience and insights. As a sales professional, this book is an additional learning tool, offering so much to learn about marketing from someone so seasoned in the field. To all my fellow sales professionals out there — grab a copy! It’s a treasure trove, made even more impactful by its easy-to-digest format and real-life examples. Thank you Saurabh Bajaj - Practical Marketer for writing such a book. Your in person traits shine through every page, and you’ve poured your heart into creating something truly magical. More power to you! 🙌

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CEO Global Group Wellable's findings underscore the critical link between employee engagement and organizational success. When employees are highly engaged, they are 87% less likely to leave their employer, highlighting the strong retention benefits. This engagement fosters loyalty and reduces turnover costs, contributing to a more stable and experienced workforce. Moreover, companies with the highest employee engagement rates see a 21% increase in profitability. Engaged employees are more productive, motivated, and committed to their work, leading to higher efficiency, better customer service, and ultimately, improved financial performance. In essence, fostering a culture of engagement not only boosts employee satisfaction but also drives substantial business growth. #CAROHITUPADHYAYA

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Earlier this year, I was fortunate to attend a Spencer Stuart presentation on the latest US public board trends. Just as interesting was reading how those trends compare and contrast to those around the world: - Board size: Boards are dealing with an increasing number of issues, but average board size hasn't changed much over the years and varies between 9-11, with Germany at the high end (average 15) and Peru at the low (seven. The US average is 11.) - Independent directors: Independent directors now make up the majority of public company board seats, with an average 94% in UK companies, 85% in the US, and 41% in Turkey, the latter an example where controlling shareholders are represented and hold sway in the boardroom. - Director tenure:  Tenure in the US has declined over the last 10 years but is still the highest at 7.8 years. (Spain has the lowest, 3.2 years.) Boards are looking to balance experience with new perspectives; some countries impose term limits: The UK doesn’t consider directors independent after nine years; its average tenure, 4.2 years, is among the lowest. In Hong Kong, a new category, “long-serving Independent Non-Executive Director (INED),” was created for those who have served for more than nine years, and a company board can’t be made up of only long-serving INEDS. - First-time Directors:  Bringing in first-time directors is a way to bring in fresh thinking (and diversity). France has the highest proportion (63%) of new directors who haven’t served on a public company board before; other European countries (Norway, Denmark, Ireland) have also increased the proportion of new directors, while there are fewer this year in the UK (36%) and the U.S. (34%). - Gender diversity: In nearly every country, the proportion of women on boards has increased since 2022. Most countries in Europe have government-backed targets or quotas to ensure greater gender diversity: Of the top public companies, 95% in France, 80% in Norway, and 53% of the top 150 FTSE in the UK have at least 40% women on their boards. This compares to 21% of S&P 500 boards in the U.S. - Board leadership: Women are chairing more boards, though in most countries, they still chair fewer than 10%. Italy and the U.S. have the highest percentage; women chair 18% of S&P 500 companies vs 7% a year ago. With more women independent directors in leadership roles like committee chairs and senior/lead directors, there should be a pipeline to move up to board chairs. - Board effectiveness: More boards are looking at how they can operate more effectively, whether by being evaluated by an external facilitator (in some countries, governance requires boards undergo an external review at least every three years) or internal assessment. I n South Africa, 59% of boards used an external facilitator in 2023, while fewer than 10% of boards in Norway, Finland, Switzerland and Hong Kong used them. #boardofdirectors #corporategovernance #governance #directors #womenonboards

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The CPG industry is at a pivotal moment shaped by rapid technological advancements, economic challenges, and shifting consumer behaviors. From navigating supply chain bottlenecks to embracing AI and managing inflation, we've faced our share of obstacles. But with challenges come opportunities.     As we set our sights on 2025, Kellanova leaders have identified five key predictions that we believe will define the CPG landscape from a tech perspective. These insights are designed to help businesses not just adapt but thrive in this ever-evolving environment. Check out the article below. 👇 #FutureOfCPG #Leadership #Innovation   https://lnkd.in/ej95asKT ) Charisse Hughes Ramesh Kollepara David Pearson Loretta Franks David Lee

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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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More effective Roundel results? Here we go! ✔️

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BIG NEWS — I’m absolutely thrilled to announce my continued journey with Pattern, as President — Pattern Advisory. The team, the products, the culture — extraordinary, differentiated and extremely compelling. In essence, Pattern is more than a company, it’s a company changing the eCommerce reality for brands. By collaborating with brands and deploying advanced technology, it’s fundamentally changing the landscape of online sales. With Pattern, the future of eCommerce is indeed accelerating….and I couldn’t be more excited to play a small part in the journey (John LeBaron, Melanie Alder, David Wright) — can’t wait to continue building together. Setting the Stage: (2) 1️⃣ Pattern® is a dynamic e-commerce accelerator, has made a big splash, securing $225M in growth funding (2021/2022). They’re setting the pace in the eCommerce universe! 2️⃣ Standing out from the pack in eCommerce, Pattern focuses on accelerating sales, optimizing operations across marketplaces, and enhancing margins for brands. Fun Facts: (3) 🎉 Pattern’s unique strategy entails purchasing products in bulk and securing the exclusive seller status on Amazon. 🎉 The secret sauce? Advanced machine learning techniques that optimize search keywords, ensuring enhanced product visibility on Amazon….and their People. 🎉 Pattern isn’t confined to local markets—it aids brands in reaching consumers around the globe. Key Themes: (3) 🔑 Pattern is the premier global ecommerce accelerator to help your brand grow faster and sell more on ecommerce marketplaces. 🔑 Pattern employs sophisticated, learning algorithms to enhance product visibility during consumer searches on marketplaces (Amazon, etc). 🔑 Pattern’s collaborations extend beyond Amazon. It partners with multiple online platforms both domestically and internationally, aiding brands in their global expansion strategies. #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin #pattern

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When is it time for a brand to find a new home?... The potential sale of Oscar Mayer reflects a proactive approach to adapting to evolving consumer demands and market dynamics. Here are some thoughts that this WSJ article sparked in me. 1. Brands and companies at some point lose alignment. Brands can be very strong and consistently deliver a consumer promise. However, the brand promise may not be permanently in alignment with a company strategy. By prioritizing healthier product options and realigning its portfolio, Kraft Heinz shows a commitment to long-term growth. The focus on improving nutrition in its products reflects a broader industry trend towards addressing concerns over ultra-processed foods and health-related issues linked to diet. 2. The best decisions are grounded on the consumer. Kraft Heinz is considering selling Oscar Mayer to restructure its portfolio amidst growing consumer interest in health and nutrition. This move can help align with changing consumer preferences towards healthier options. 3. Stock performance and financial results matter. This strategic move is crucial for boosting the company's stock performance, which has been stagnant over the past five years. Kraft Heinz is facing challenges in its quarterly results due to cooling demand for some products and increased input prices. Profitable growth is about having the right portfolio for the long term. When brands lose alignment to the broader business strategy, they part ways with companies. In the end, it is about the consumer, what the consumer wants / expects and the competitive advantage of an organization to win with the consumer in a profitable way. What do you think? #marketing #branding #management #mentoring

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Consumer escapism trends are on the rise. They take many forms, but all provide shoppers with temporary escapes by creating joy in their personal environment. Stay ahead of shifting consumer behaviors to fuel sales and loyalty. Get the insights when you download Circana's report below!

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I'm excited to share an insightful opinion piece from my colleague, Wade Huckabee, from Reynolds American Inc. featured in the The Washington Post. In it, he makes the case for Tobacco Harm Reduction as we innovate to Build a Smokeless World. Read the full article here: https://lnkd.in/eksGJ6W4.   Some of the key takeaways include:   1) 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗢𝘂𝘁𝗽𝗮𝗰𝗶𝗻𝗴 𝗟𝗲𝗴𝗶𝘀𝗹𝗮𝘁𝗶𝗼𝗻: The pace of innovation has outstripped the legislation. The Tobacco Control Act, signed into law 15 years ago, no longer reflects the reality of the U.S. landscape. Science is often overlooked in debates that are more ideological than in the interests of public health.   2) 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗚𝗿𝗮𝗻𝘁𝗲𝗱 𝗢𝗿𝗱𝗲𝗿𝘀: Over 26 million next-gen nicotine products have been filed, but only 46 received Marketing Granted Orders. There is an urgent need to revisit how products are brought to market, while maintaining a stringent and transparent review process.   3) 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗖𝗵𝗮𝗻𝗴𝗲: Transparent collaboration among stakeholders, including industry, regulators, and public health advocates is crucial for reducing smoking rates.   BAT and Reynolds are committed to science-based policies, high-quality standards, and sensible regulation that is applied equally, with swift and meaningful enforcement. Now is the moment to move forward. To those who share a common ambition to reduce the harm from cigarette smoking, we invite dialogue and collaboration.   Let’s work together towards a pragmatic, science-driven path to a Smokeless World.   #SmokelessWorld #WashingtonPost #TobaccoHarmReduction #ABetterTomorrow #Transformation

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🎀 It’s #TimeToEndBreastCancer. Breast care is self-care. Let’s take care of ourselves and each other by being informed, proactive, and advocates for breast health. As an employee of @TheEstéeLauderCompanies, I’m sharing important information about breast cancer and how you and your colleagues can advocate for breast health. 👉 https://lnkd.in/eBTgJN5r #TimetoEndBreastCancer #ELCBreastCancerCampaign #StrongerTogether

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Companies like Amazon pay billions to acquire other firms not just for their products and customer base, but primarily for the talent they bring. Talent drives innovation, operational efficiency, and competitive advantage. 🚀🌟 Apply to join the Inner Circle of Visionary CEO’s 🌟🚀 Our community is a safe place to Network and Elevate your Strategic thinking and Leadership skills. Seize the Opportunity! Check out the About section in my bio for more details. Learn. Unlearn. Relearn

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