The increased digitization of food shopping will enable direct-to-consumer promotion targeting, helping to eliminate $100B+ of inefficient and unprofitable trade promotion spend in the US. Companies that invest in data analytics to determine efficient pricing constructs and inventory management will benefit the most.

Company specific thoughts: “The right combinations of leadership and opportunity”

Kraft-Heinz, Mondelez, Conagra, Hostess Brands, Pinnacle Foods and B&G all have the right combinations of leadership and opportunity with lean overhead structures that keep them agile amid rapid change. They have instituted efficient cultures that attract the industry's top talent. Consider Kraft-Heinz's industry-leading profit margins, Conagra's and B&G's ability to radically transform declining frozen business, Hostess' automation technology, and Pinnacle beating its own M&A synergy targets while maintaining superior organic sales growth.


Consumer: Up close

The future of the Consumer sector will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.