Guto Vieira

Consumer behavior varies by market, which makes it challenging for RTD brands to find global success. Flavor continues to be the most important attribute for RTD consumers in the US, whereas Low Price is the most important for Australian RTD drinkers. #RTD #consumer #brand

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Are we witnessing (finally) the end of 'infinite' pricing-driven growth in #FMCG industry? PepsiCo Q3 results seem to confirm it with its 9th consecutive quarter of volume decline Yes, it is still a modest ~2% drop, but in the context of slowing price gains (+3%), PEP is getting closer to a decline on a top-line level missing its top-line guidance & is now reducing its growth outlook for a full year Let's add some historical perspective to those quarterly results: - Between 2019 & H1 2024, PepsiCo increased prices by 47%. The highest level of pricing for a globally listed FMCG company (cf. our H1 results publication - https://lnkd.in/ebn7EAwy) - During this period, its vol. decreased only by 1% over the total period. Historic vol. growth in its categories averages 2% CAGR pre-COVID. So this is still a ~-0.2 price elasticity, pretty best in class & in line with historic perf. for Impulse F&B (but, -4% if we are looking only at the L2Y). - Overall PepsiCo performed (top-/bottom-line) in the top decile of the top 50 listed FMCG companies since 2019 Yes PepsiCo has work to do (PPA, costs, bolt-on M&A) but objectively most would envy its track records Full details below: Q3 FY2024 •  NR: $23.3Bn •  OSG: +1.3%; Volume: -4%, Price/ mix: +5.3% •  GM%: 34.8%; +94 bps vs Q3 FY23 •  Adj. OP%: 17.9%; +73 bps vs Q3 FY23 •  Beats analysts’ consensus for EPS, misses revenue Results by Divisions •  Frito-Lay North America: $ 5,888m NR; OSG: -1%; Vol: -1.5%, Price/ mix: +0.5% •  Quaker Foods North America: $648m NR; OSG: -13%; Vol: -13%, Price/ mix: -% •  PepsiCo Beverages North America: $7,175m NR; OSG: +1%; Vol: -3%, Price/ mix: +4% •  Latin America: $2,915m NR; OSG: +3%; Vol: -3%, Price/ mix: +6% •  Europe: $3,946m NR; OSG: +6%; Vol: +1%, Price/ mix: +5% •  Africa, Middle East and South Asia: $1,552m NR; OSG: +6%; Vol: -5%, Price/ mix: +11% •  Asia Pacific, Australia and New Zealand and China Region: $1,195m NR; OSG: -1%; Vol: -2%, Price/ mix: +1% 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: 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 (https://lnkd.in/dc6jY4Qp) #strategy #cpg

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The hydration market, now valued at $156 billion, is experiencing significant growth as nearly half of U.S. consumers turn to hydration beverages for issues like headaches and fatigue. This trend underscores the rise of functional beverages that support overall health and energy management.    Dive into the latest insights from Circana in FoodNavigator USA's article, “Magnesium, Multi-Functional Hydration Claims Rise as Consumers Seek to Improve Wellness, Circana Reports.” 

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When it comes to functional beverages, the energy and weight management segments are leading the pack, according to NielsenIQ's Jordan Moore, who spoke at ECRM's Center Store Sessions recently and was interviewed by Joseph Tarnowski on some key takeaways from her presentation. Overall, the functional beverage segment (which NIQ considers any beverage that makes a wellness claim) is growing 2 percent faster that RTDs. Energy beverages, which are already a $22 billion category, have seen 10 percent growth vs. a year ago, and weight management beverages, which include those beverages aimed at helping consumers gain muscle as well as speeding up their metabolism and losing weight, are up a whopping 22 percent. Interestingly, protein is making its way into an increasingly diverse array of beverages outside of traditional protein shakes, including coffee (like the new Instant Coffee with Protein by Fire Department Coffee, and the new Genepro Tea). Some functional beverage categories are declining, however. Those under the preventative segment, which focus on brain health, probiotics and immunity is down 8 percent and diabetes related beverages are down 6 percent. Not all is lost though, if you are in one of these segments. While the overall segment may be down, your specific category may be on the rise. A case-in-point is kombucha. While it falls under the preventative segment, the category itself is up 5 percent. Watch the full video below! #beverages #cpg #wellness #retail #ecrmrangeme Luke Schneider Jason Patton Jon Bryan Stacey Helbig Brian Parks Brian Haymaker

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pladis Global's Flipz is unwrapping two new limited-edition holiday products. Flipz Snickerdoodle Flavored Covered #Pretzels and Flipz Peppermint Hot Cocoa Flavored Covered Pretzels are currently available at select retailers, including Stop & Shop, Albertsons, CVS, and Dollar Tree, while supplies last. Read more: https://brnw.ch/21wOR03

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The #FMCG industry grew at +8.6% in 2023, the 2nd highest #growth rate in the last 12 years. This means the industry had grown 38% in value sales in the last four year, compared to just 25% in the previous eight years. For the full break down of the latest industry trends, including an update of the top performing channels and growth of private label, watch our latest webinar from my colleague Thomas Smith. Click the link below 👇 https://lnkd.in/dSyyYpea Worldpanel by Kantar #omnichannel

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What does it take to win in #CPG? Circana’s CPG Growth Leaders report measures the omnichannel performance of more than 600 consumer packaged goods companies with sales greater than $100 million. 🚀 Get a copy of the 2023 U.S. CPG Growth Leaders report here 👉https://lnkd.in/g4BBBMfE

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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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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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Conagra may be the first, but it won't be the last. This morning the company's quarterly earnings missed both top and bottom line expectations. One of the main drivers: the need to promote to drive volume. Here's an excerpt from my Q3 earnings preview (link to the blog up by my name and face!): "The sectors I’m keeping the closest eye on will be consumer goods and retail, of course. Consumer goods specifically had a rough go last quarter not just because they mostly missed revenue expectations, but because volume degradation continues to play out in North America zones. As these organization use trade spend to drive volume, it will mess with profitability. Without much pricing power today, there will only be so many things these companies can do to react." Conagra is doing what it needs to do to keep volume pumping, but it's hard to meet what are undoubtedly the highest expectations from the market since 2021. The next step isn't to keep doing the same thing, it will be to become more strategic and targeted with spend. The age of meeting earnings expectations through simple tactics is over. This is the point I've been waiting for in CPG. When it's the most creative and commercially innovative companies that earn their gains through thoughtful strategies, not pricing. For now, we'll see how many more companies follow this top and bottom miss... #consumerbehavior #cpg #earnings

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Mars, Incorporated's acquisition of Kellanova marks a pivotal moment in the FMCG industry, demonstrating the power of strategic partnerships and innovation in driving growth. This move signals a broader trend of diversification, with industry leaders adapting to stay ahead in a rapidly evolving market. As Mars and Kellanova unite to push boundaries in food technology and sustainability, the message is clear: growth comes from collaboration and fresh ideas. The FMCG landscape is ripe with opportunities for businesses of all sizes. At FMCG Land, we support businesses in navigating this dynamic industry by connecting them with the right partners and opportunities to thrive in this ever-evolving market. #FMCG #ConsumerGoods #CPG #MarketTrends #Confectionery #Supermarkets #RetailChains #FMCGRetail

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🚨FOOD INDUSTRY NEWS🚨 PepsiCo has reported quarterly earnings and revenue that beat analysts’ expectations, despite weaker U.S. demand caused by Quaker Oats recalls and backlash to higher prices for its drinks and snacks. Shares of the company fell more than 2% in morning trading. Earnings per share: $1.61 adjusted vs. $1.52 expected. Revenue: $18.25 billion vs. $18.07 billion expected. 🥤 #pepsico #earnings #inflation #foodindustry #newsletter

☎️Calling all CPG friends☎️ Preparing for a line review can be scary 🫣 Or it can feel tedious and uninspired 😩 That’s why we’re hosting our upcoming webinar: How to Build a Compelling Line Review on May 1st at 1pm CT There will be a focus on durables categories, however, the principles and use cases for panel data will be relevant to any brand or category looking to defend or grow shelf space 💪 Come check it out if you’re curious about Numerator or have an upcoming line review to prep for 🫶 #cpg #linereviews #buyermeetings https://lnkd.in/gPwGJMGJ

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Liz Buchanan <> The CPG View On this week's podcast, "Pioneering the Future of CPG Data," on The CPG View featuring Liz Buchanan, President, North America at NielsenIQ. Liz covers the following key points: 🎯 Leadership and Market Evolution: Liz emphasizes her transition to leading Nielsen IQ's North American business and the dynamic changes in the market, highlighting her extensive experience and the company's adaptive strategies. 🎯 Data Activation and Value: A major focus is on making data "activation ready" by ensuring it is comprehensive, granular, and useful for driving business outcomes, particularly in retail environments. 🎯 Customer-Centric Approach: Liz shares the importance of understanding and addressing customer needs through modern data access methods, personalized insights, and maintaining high standards of data stewardship and privacy. Tune in to gain insights on new data strategies, AI tools, and market trends shaping the CPG industry on The CPG View. 🚀🌟 Full Podcast Link (Apple, Spotify, Google, etc): 🎧 https://lnkd.in/eEqXpSB6 #ecommerce #digital #omnichannel #strategy #success #cro #ceo #leadership #cmo #cdo #retailecommerceclub #cpg #privateequity #playtowin #thecpgview

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Older consumers are leading the charge in buying private label store brands. Grocery Dive, June 2024, reports that 88% of shoppers 55+ say “private label provides a good value,” versus 75% of those 18-34. Grasping these insights into consumer perceptions can highlight competitive threats and growth opportunities. Focus on product availability, shopability, quality, differentiation, and price value to gain a competitive edge. Is this a knowledge gap for your team? Reach out to the SIVO, Inc. team at [email protected] for a custom learning plan. #privatelabel #competitiveadvantage #consumerinsights #shopperinsights #marketresearch #pricevalue

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🎙️ This week on AdExchanger Talks, Jean-Paul “JP” Jansen, SVP of Marketing & CMO at Mars Pet Nutrition, explains why ROI isn't the best measure of marketing success. With experience at Coty and P&G, JP shares insights on balancing marketing metrics and driving growth for brands like Temptations, Sheba, Pedigree, and more. 🎧 Tune in for expert advice on smarter marketing strategies. https://lnkd.in/gV2QfnVw

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Amid economic uncertainties and inflation concerns, consumer behavior has shifted toward budget-conscious decisions, with younger generations more likely to alter shopping habits due to perceived food cost inflation. I recently wrote an article for Vision Magazine North America that shares how businesses can better adapt to evolving shopper preferences and capitalize on the growing demand for fresh produce. Read “How 2023 Trends Will Impact Your 2024 Planning” in the latest issue here: https://lnkd.in/e3Z4TCkP Circana #ProduceTrends #ConsumerData

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