China Food

The trend of food consumption is changing?! Nestle, Pepsi, Danone and Coca Cola give the answer

With the global food and beverage giants releasing their first half results in recent days, how the epidemic changes consumer behavior and how multinational companies adjust their investment in the future has become a focus of attention.

This evening, the snack food agency sorted out the latest statements of CEOs of several well-known FMCG enterprises, including Nestle, PepsiCo, Danone, Coca Cola, Budweiser and Mead Johnson’s parent company, Li Jieshi. Let’s take a look at how the top two giants in the food and beverage industry are studying the changes in consumption trends.

Snyder, CEO of Nestle group


The biggest change brought about by the epidemic situation to the food and beverage industry is that consumption changes from consumption outside the home to consumption at home, which is contrary to the previous trend, because in recent years, more and more people have consumed food and drink outside the home.


Over the past few years, as people have become more and more fond of spending outdoors, the size of apartments and kitchens has shrunk, but all of a sudden, all of this has to be reversed. It will take years to recover to pre epidemic levels. I think it may be necessary to introduce a vaccine to reassure everyone.


However, Nestle can not shrink the “front line” of consumption business outside the home, but should use the resources of good hands to seize new opportunities. An important reason behind this is that the boundaries between home consumption and off home consumption have become increasingly blurred, such as takeout. When ordering, you eat in your own house, but the dishes are actually prepared and assembled outside. There are still many opportunities for Nestle to introduce its products and services into the “explosive growth” of new delivery services.


PepsiCo CEO longjiade: immunity is a big topic


Consumer behavior is changing rapidly, and we hope to keep up with it in some areas, one of which is immunization. Consumers now want to buy products that are good for their immunity. PepsiCo’s juice business is growing rapidly. I think we can introduce more products to meet this demand in other drinks, even food.


Food business, dietary products is one of them. Now, more and more consumers are cooking at home, which means a product line like Quaker is clearly in place. In addition, some of our snack brands can also meet this trend. PepsiCo will incline its advertising expenses and consumer support to it.


As consumer demand for healthier products grows, PepsiCo is also investing in its big brands, such as promoting sugar free Pepsi Cola, surf and Gatorade. Investment in these areas will allow us to gain market share in the future.


In addition, PepsiCo has also strengthened its investment in sodastream, a good business in the current environment where people need to live at home. In Europe, we have injected several Pepsi beverage products under sodastream and achieved good growth.


Danone CEO fan Yimou: responding to consumption changes with diversified products


We are preparing for a “new world.”.

Whether in terms of accelerating the development of e-commerce or improving convenience and intimacy in the new shopping environment, I think Danone has a lot of strategic opportunities. Of course, in terms of B2C, we think this trend will continue.


In terms of consumption trends, home consumption, immunity and health, as well as making wise choices when consuming addictive foods (such as potato chips) are the most popular consumption trends in the food industry.

In addition, the company also needs a diversified product portfolio, so that its products can meet all consumer occasions, all channels, and occupy all price points. Although Danone has not done enough in some aspects, we believe that these analyses will play an important role in the future.


Coca Cola CEO Zhan kunjie: optimistic about drinks with functional benefits


As consumers put health, safety and hygiene at the top of their list, there will be broad space for product innovation with functional benefits and contactless solutions. Coca Cola will give priority to the R & D center resources into products, packaging and equipment. For example, in the United States, we have recently announced the introduction of contactless beverage dispensers. Consumers can use their mobile phones to realize the whole process from purchasing to getting a drink in seconds without registering an account or downloading an app.


We have also invested heavily in digital execution strategies to drive sales, improve efficiency and conduct data analysis across the company. We have recently appointed a vice president in charge of o2o digital transformation. He will work extensively with relevant persons in charge of the company’s system to consolidate and strengthen our strength in e-commerce and digital strategy.


We believe that consumers will continue to spend money on drinks, and they will continue to demand more choices, which requires us to build a broad and strong distribution system to support such demand.


Budweiser Group CEO Bo ruituo: continue to bet on high-end beer


We believe that whether in developed countries or emerging markets, the high-end beer will still be an important opportunity for the company’s revenue and profit growth. Compared with other alcoholic drinks, the whole beer industry is still in the primary stage of high-end.


In order to fully seize this opportunity of beer industry, we are investing in better connection with consumers and customers. Already popular trends like digital sales, e-commerce and online marketing will be more important in the future and have accelerated in the past few months.


In the past few years, we have been building our own B2B e-commerce platform “bees”, which integrates our global logistics and digital capabilities to provide customers with end-to-end experience. Even when we can’t meet with customers, this platform can keep in touch with them and even bring about potential business. We believe that B2B will promote the change and growth of our business. Therefore, we reorganized the senior leadership team and appointed a chief B2B officer recently.


Laxman Narasimhan, CEO of Regency (parent company of Mead Johnson): five profound influences


The epidemic is having a profound impact on consumer behavior, and it’s not limited to months or quarters. Our internal research shows that the changes of consumption behavior are mainly reflected in five aspects.

First, there has been a significant increase in interest in health and health, which may last for some time. Experience tells us that changes in behavior over 60 days can lead to permanent changes in consumer behavior.


Second, the epidemic has led to a full load of our lockers, which is particularly prominent in nutrition products and OTC products, including infant formula milk powder. It may take three or even four quarters to empty the lockers.


Third, due to global travel restrictions, a large number of people need to stay at home while reducing social contact. These consumers will cook more at home and clean their homes more frequently than ever before.


Fourth, we’re seeing huge changes in global online consumption. As recently as may, spending rose more than 77% year-on-year.


Finally, we continue to see the economic challenges. For example, more than 51% of U.S. consumers are worried about the financial situation of their families in the event of the epidemic, which is a trend that needs attention, especially when planning for the future.

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