Branding’s corporate titans face moment of truth
22/11/2023 05:59
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Aimee Donnellan
LONDON, Nov 22 (Reuters Breakingviews) - Sales volumes
at consumer goods giants are falling for the first time this
century. Branded goods sell well when quality is tangibly higher
and price premiums slim. With neither now the case, the
valuation of $296 bln Nestlé, and rivals, may shrink in line
with its KitKats.
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CONTEXT NEWS
Nestlé said on Sept. 28 the total volume of food and drink
sold globally had been falling since the start of 2023.
“People are consuming less, or they’re eating less or
they’re wasting less or they’re eating more out of home. It’s
difficult to know. I don’t think it will last,” said outgoing
Chief Financial Officer François-Xavier Roger at a Bernstein
conference in London.
EY released its Future Consumer Index on Nov. 9 which said
54% of consumers globally intend to reduce future purchases,
primarily to save money (73%) and because they feel they don’t
need new items (49%).
(Editing by George Hay, Streisand Neto and Thomas Shum)
((For previous columns by the author, Reuters customers can
click on DONNELLAN/
Aimee.Donnellan@thomsonreuters.com; Reuters Messaging:
Aimee.Donnellan.thomsonreuters.com@reuters.net))