Mars Wrigley’s Post

How can retailers balance impulse sales and self-checkout efficiency? Our working group recently heard about Mars Wrigley 's collaborative approach to this challenge. Check out the 🎥 summary from Adrian Beck and Colin Peacock here 👇 Or click here https://lnkd.in/en-KB7r9 if you prefer to read a blog post summary, or a full transcript of their discussion. #RetailCollaboration #ImpulseBuying

The news about Mars/Kellanova has many people asking the question: Is this the start of a new wave of industry consolidation? Looking over 30 years of industry performance can provide some helpful insights on the historical impact of consolidation (take the below as directionally good enough diligence for a LinkedIn post): · The top players have remained largely the same over 30 years if you count the shuffling of Kraft, Heinz, & Mondelez in aggregate over the period. · This group of food companies represents a smaller share of global food today than they did in 1993 (moving from about 9% down to 8%). Despite lots of M&A activity, the global market has grown at a faster rate with the top companies who just beat the 2.5% rate of annual inflation. · EBIT margin for this top group has expanded about 400bps in aggregate. While positive, you don’t have to run the math to know many of these deals under-delivered their promised returns. Have some good deals been done? Of course, but in aggregate, the results don’t meet the hype. It’s hard to see the logic in a new round of industry consolidation, but many deals have been done without letting math get in the way of egos. I don’t believe that Mars + Kellanova is starting a new M&A cycle; rather, this deal is a variant of portfolio optimization like Unilever’s spin out of ice cream, General Mills’ proposed sale of Yoplait, and Kellogg’s split into Kellanova and WK Kelloggs. This is a shell game with an aim to increase growth exposure and leverage capabilities/channels rather than drive corporate size. I wouldn’t assume that Mars is finished—they have some misfit businesses they will likely jettison for the same reasons as UL, GIS, and K. These deals will require some financial magic because they drive negative synergies, but the hope is that one company’s trash will be another’s treasure. Among these remnants (WK Kelloggs, Yoplait, and Unilever Ice Cream), it’s worth noting that none have yet to be picked up by another player. What are your thoughts? #CPG #FMCG #Kellanova #Mars #M&A #IndustryConsolidation

Self-Checkout: Highly insightful session on how to grow sales of impulse items at the front end in the retail context where increasingly >80% of all transactions are processed at the self-checkout. See recap below.

📰 News: 📰 --Sweet and Salty Symphony: Mars Inc. Snags Kellanova for a Whopping $30 Billion! 🎉🍫🧀-- Mars Inc., the iconic maker of M&M's and Snickers, just lit up the snack world with a $30 billion splash by acquiring Kellanova, the mastermind behind Cheez-Its and Pop-Tarts! This mega-deal is set to shake up the snack industry and bolster Mars' snacking empire globally. Quick bites of this sweet and savory deal: - --$35.9 billion--: Total value, including debt, with Mars paying --$83.50 per share-- in cash. - --8%--: The combined share of the U.S. snack market, coming in right behind snack giant PepsiCo. - --23,000--: Employees from Kellanova joining the Mars family, with Kellanova's net sales hitting over --$13 billion-- last year. Mars isn't just munching on this massive deal for fun. It’s strategic! Beyond expanding its snacking footprint, Mars aims to leverage Kellanova's international reach, enhancing their operational efficiencies and bargaining power with suppliers. Plus, who wouldn’t love a stronger snack lineup when chocolate sales are on a diet? Curious about how this will reshape the snack landscape? Drop us a comment with your thoughts and don't forget to follow Bernier Group for more juicy business insights! 🍿📈 #Hospitality #Ecommerce #Retail #Commerce #Manufacturing #Logistics #Strategy #Innovation #Business #ArtificialIntelligence #AnniQ https://lnkd.in/gfUMr8Hb

Huge news! Here is the breakdown: Market Presence: Mars will gain a stronger foothold in the global snacking market, adding Kellanova’s popular brands like Pringles, @Cheez-It, Pop-Tarts, and Eggo to its portfolio. This will enhance Mars’ ability to serve more consumers worldwide. Product Innovation: The combination of Mars’ and Kellanova’s resources and expertise is expected to drive innovation in the snacking sector. Mars’ history of nurturing acquired brands suggests that Kellanova’s products could see new developments and improvements. Competitive Landscape: This acquisition will likely intensify competition in the #CPG sector, particularly in the snacking category. Mars’ expanded portfolio will challenge other major players to innovate and adapt. Consumer Impact: For consumers, this could mean more variety and potentially new product offerings. However, there might also be concerns about changes in product taste or quality, as well as potential price adjustments due to the consolidation of brands. Financial Implications: The deal represents a significant financial commitment for Mars, with the acquisition price reflecting a premium on Kellanova’s stock. This could impact Mars’ financial strategy and operations in the short term. Overall, the acquisition is poised to reshape the snacking industry, bringing together two iconic companies with complementary strengths and a shared vision for the future. Well done Steve Cahillane and Andrew Clarke #Kellanova #Mars #Acquisition #CPG #Snacking #FoodIndustry #BusinessNews #Innovation

What a transformative time for Mars & Kellanova! Mintel’s recent panel highlighted intriguing trends in snacking. Rising living costs are leading more people to snack more frequently, often as meal replacements. “Millennials and Generation Z are driving the trend, with 34% of Gen Z snacking three or more times a day. They are also more likely to replace meals with snacks, with 92% replacing at least one meal a week.” This strategic, $36 billion dollar investment demonstrates strong commitment to innovation and adapting to market trends!

Exciting growth opportunities for the future

𝗧𝗵𝗶𝘀 𝘀𝗶𝗻𝗴𝗹𝗲 𝗰𝗵𝗮𝗿𝘁 𝗲𝘅𝗽𝗹𝗮𝗶𝗻𝘀 (𝗺𝗼𝘀𝘁 𝗼𝗳) 𝘁𝗵𝗲 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝗯𝗲𝗵𝗶𝗻𝗱 𝘁𝗵𝗲 𝗠𝗮𝗿𝘀-𝗞𝗲𝗹𝗹𝗮𝗻𝗼𝘃𝗮 𝗱𝗲𝗮𝗹 ⚫ Mars 𝗶𝘀 𝗮 𝗴𝗹𝗼𝗯𝗮𝗹 𝘁𝗼𝗽 𝟯 𝗽𝗹𝗮𝘆𝗲𝗿 𝗶𝗻 𝗦𝗻𝗮𝗰𝗸𝘀 𝘄𝗶𝘁𝗵 𝟱% 𝗠𝗦 𝗯𝗲𝗵𝗶𝗻𝗱 PepsiCo ($230bn EV) & Mondelēz International (~$100bn EV). None of them can be reasonable acquisition target (EV but also anti-trust on confectionary/ chocolate) ⚫ Mars 𝗹𝗮𝗿𝗴𝗲𝘀𝘁 𝘄𝗵𝗶𝘁𝗲 𝘀𝗽𝗮𝗰𝗲 𝗼𝗻 𝗦𝗻𝗮𝗰𝗸𝘀 𝗶𝘀 𝗦𝗮𝘃𝗼𝗿𝘆 (a $225bn category, the largest category within Snacks accounting for >1/3 of total Snacks, where US alone accounts for 32% of the global RSV) ⚫ 𝗨𝗦 𝗺𝗮𝗿𝗸𝗲𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝘀 𝗮𝗹𝘀𝗼 𝘁𝗼 𝗯𝗲 𝗠𝗮𝗿𝘀 𝘀𝘁𝗿𝗼𝗻𝗴𝗵𝗼𝗹𝗱 (>40% of its RSV) ⚫ Kellanova 𝗶𝘀 𝘁𝗵𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗱𝗶𝘀𝘁𝗮𝗻𝘁 𝗻𝘂𝗺𝗯𝗲𝗿 𝟮 𝗼𝗻 𝗦𝗮𝘃𝗼𝗿𝘆 𝗯𝘂𝘁 𝗵𝗮𝘀 ~𝟭/𝟮 𝗼𝗳 𝗶𝘁𝘀 𝗥𝗦𝗩 𝗶𝗻 𝗡𝗔 ⚫ 𝗜𝗻 𝗤𝟰 𝟮𝟬𝟮𝟯, 𝗶𝘁 𝗲𝗻𝗱𝘀 𝘂𝗽 𝗯𝗲𝗶𝗻𝗴 '𝘂𝗽 𝗳𝗼𝗿 𝗴𝗿𝗮𝗯' 𝗽𝗼𝘀𝘁 𝗮 '𝗿𝗶𝗴𝗵𝘁-𝘀𝗶𝘇𝗲𝗱' 𝗜𝗣𝗢𝗲𝗱 𝗰𝗮𝗿𝘃𝗲-𝗼𝘂𝘁 (Kellogg Company broken down into two companies: WK Kellogg Co & Kellanova) ⚫ 𝗧𝗵𝗲 𝗼𝘃𝗲𝗿𝗮𝗹𝗹 𝗳𝗼𝗿 𝗮 𝗺𝗮𝗻𝗮𝗴𝗲𝗮𝗯𝗹𝗲 '𝗯𝗶𝘁𝗲-𝘀𝗶𝘇𝗲' ($36bn) for Mars B/S (& ownership structure) That is what we call a historic opportunity (that was most likely very long in the making) and Mars seized it Decisive To discover our perspective on: - Why Mars is acquiring Kellanova? - What are the likely consequences on the Food vertical & beyond? - How the FMCG M&A market will likely evolve in the next quarters? Read our last publication: 𝟭𝟬 𝗕𝗿𝗶𝗲𝗳 𝗧𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗔𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 Mars-Kellanova 𝗗𝗲𝗮𝗹 & 𝗢𝗻 𝗪𝗵𝗮𝘁'𝘀 𝗡𝗲𝘅𝘁 𝗙𝗼𝗿 𝗠&𝗔 𝗜𝗻 𝗧𝗵𝗲 𝗙𝗠𝗖𝗚 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 https://lnkd.in/eKcD6VRa Exciting times for M&A in the FMCG industry 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (Ecommerce, DTC and EB2B) and M&A. 14 out of the world 20 largest FMCG companies are repeat Clients 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y

Yesterday, part of the Plain Concepts team had the incredible opportunity to continue our journey of growth and collaboration by visiting the Nestlé GMBh offices. As a company, we firmly believe in expanding our horizons and nurturing strong relationships with clients across different countries. Our international delivery capabilities form the backbone of our successful model—one built on proximity, co-creation, and understanding our clients’ business needs. The Winning Formula: Listen Intently: We take the time to understand our clients’ unique challenges and goals truly. Craft Tailored Solutions: Armed with this knowledge, we deliver cutting-edge technological solutions that empower their growth. Forge Lasting Partnerships: It’s not just about projects; it’s about building lasting partnerships that drive success together. We’re committed to being more than just a service provider—we’re your trusted partner on the journey to success. Thank you, Nestlé GMBh, for hosting us! 🙌 Well done mates!!! Francisco Martinez Mario Martin Plaza Carles Duarte Majó Martin Vega Caballero Rebeca Martínez Valbuena Juan Ramírez García David Calvo Meier Juan María L. Pablo Castilla #PlainConcepts #GlobalCollaboration #ClientSuccess #Innovation

CAGNY 2024 food company highlights: Mondolez. The Consumer Analyst Group NY 2024 conference this week includes presentations from CEOs representing some of the largest consumer products firms. CAGNY provides an opportunity for CEOs to present company strategy and investment thesis to a broad group of investors.  These presentations often include insights on consumer, category and / or competitive landscape, from the perspective of the presenting company. Highlights from the Mondolez presentation include: ·      Repositioning the business driving growth ·      Progress vs “Snacking Made Right” goals ·      Insights on consumer snacking behavior ·      Core category market sizes and estimated growth rates ·      Pricing focus areas ·      Targeted M&A acquisition approach ·      Gen AI applications #leadership #strategy #cpg #founders #emergingbrands #mergersandacquisitions