Supplier insights news

10 February 2022
The US annual Consumer Price Index (CPI) rose to a 40-year high of 7.5% in January, with food CPI up 7.0%. This reflects the impact of multiple price increases at retail as suppliers react to higher commodity, packaging, labour and freight costs. Key messages Although inflation is at a 40-year high, it is expected to continue rising through the first half of the year While volumes hav...
09 December 2021
We look at the steps the Campbell Soup Company is taking to mitigate accelerating cost inflation and its expectations for the year ahead. Benefiting from hybrid working The company saw organic net sales fall by 4% in Q1, against a backdrop of higher volumes last year as retailers rebuilt inventories. But the business continues to benefit from hybrid working practices and increased consumpti...
11 November 2021
Having weathered the COVID-19 pandemic, our industry continues to face new challenges. We look at what’s top of the list for the senior team at the Kellogg Company. Growth held back by supply challenges Organic sales increased 5.1% in Q3, with demand at-home remaining elevated and most of its powerhouse brands outperforming their relevant categories. Without some of the supply challenges it ...
04 November 2021
With organic net sales up 1.3% in Q3 year-on-year, and up 7.6% versus 2019, we look at how Kraft Heinz is planning to mitigate the impact of cost inflation. Delivering gains after 2020 surge The company’s sales performance in the quarter paints a familiar picture with many CPG suppliers posting moderate gains versus last year and a significant increase versus 2019. The ability of companies ...
25 October 2021
We look at Nestle’s expectations on rising input cost inflation and the prospect for further price increases next year. Broad-based growth Nestle reported a 7.6% increase in organic growth for the first nine-months of the year, driven by a 6.0% increase in real growth and a 1.6% pricing increase. The business continued to deliver a solid performance across developed and emerging markets as ...
25 October 2021
We continue to see the emergence and growth of purpose-driven brands. This includes new to market brands and the repositioning of existing ranges. Once viewed as a strategy for niche start-ups, having a strong purpose has become an important element for many major CPGs. In our new report, Building purpose-driven brands , we dig into the factors underpinning brand purpose, the drivers for ...
20 October 2021
In reporting a strong first quarter, with organic sales up 4%, following growth of 9% in the same period last year, the company noted that it expects cost headwinds of over $2bn this year. We look at some of the measures it is taking to offset these. Recovering costs over time Based on current estimates, P&G expects a $2.1bn after-tax commodity headwind and freight and transportation to add...
13 October 2021
As it gears up for the critical holiday trading period, we look at the actions Target is taking to ensure it can meet shopper demand. Cost and capacity issues US retailers are facing several supply chain challenges, related to cost and capacity issues. Congestion at ports in Asia and on the US west coast, driven by lockdowns and labour availability, along with the shortage and rapid increas...
08 October 2021
With Q1 net organic sales down 0.4%, as it faced tough comparables from last year, the business is heading into the key trading seasons facing several cost and supply chain headwinds. However, it has increased its outlook for full year as it expects at-home demand to remain elevated.  Consumer demand trending ahead of its original expectations The decrease in organic net sales was driven by...
04 October 2021
With third quarter sales up 8.3%, McCormick continues to benefit from shoppers eating and cooking more at home. However, the business is seeing headwinds in the form of higher costs and product availability, with the issues expected to persist into 2022. Growth levers The company’s growth was driven by its flavor olutions segment, up 20.8%, compared to growth of 1.2% within its consumer seg...