Business Growth is not only possible – it will hold the key to recovery

At a time when the COVID-19 health crisis remains at the top of the news and in our minds at work and at home, it’s more important than ever for us as business leaders to stay focused and create our vision for future growth. Firstly, we need to hold true to our belief in Europe as an amazing and beautiful place to do business – where we as companies and individuals can live, work and thrive. Secondly, we need to reinforce the important role the consumer goods industry can play in keeping Europe moving forward – by contributing to the economy and serving our consumers with products that help them stay safe, healthy and comfortable in their homes, workplaces and lives. That’s our job. That’s our responsibility.

DESPITE THE CRISIS: EUROPE CONTINUES TO BE A BEAUTIFUL OPPORTUNITY

Europe is, as we say in French, “une belle opportunité”, and I am convinced that Europe will continue to be a beautiful opportunity for the consumer industry. We are one of the world’s powerhouses of retail, research and development, innovation, media and in the marketing industry. With roughly 16 Trillion Dollar GDP the European Union itself is the second biggest economic bloc globally, behind the US, and ahead of China. Sometimes it helps to remind ourselves of this.

The choices that Europe makes impact the world and working together we can make this a positive impact. Europe is making many positive choices to invest in innovation, to shape a more sustainable future (e.g. via the EU Green Deal, 260 Billion Euro investment to come per year) and through the digitization of our economies (expecting an addition of 2.5 Trillion to GDP until 2025). These are probably the largest investment programs Europe has put in place in decades. We now have a unique opportunity to step up - the time is right to make change happen. If we are not the ones to invent a better future – then who will?

In the current health situation, the CPG industry made the choice to step forward. At P&G our brands and our people in Europe provide product, cash and in kind donations to help our communities through the pandemic and difficult times. This help has been significant and will continue in the future. In the last year P&G produced hand sanitizer and face masks in a dozen manufacturing sites around the world to keep our employees and partners safe and healthy, and to donate to hospitals, health care facilities and relief organizations. Producing everyday essential products meant we are fortunate to be in a position where we can contribute to the relief efforts and supply markets and shoppers at the same time. We continue to be in the forefront of meeting consumers needs, providing the everyday essential products that 950 million European consumers rely on to keep going with their daily routines.

WHY GROWTH IS POSSIBLE AND WHY GROWTH IS THE KEY TO RECOVERY

I believe that growth is possible even during a crisis if the business fundamentals are right. This is an essential mindset to have, and it can help Europe move beyond the current crisis. Growth is possible, and growth can help alleviate the consequences of the global pandemic for individuals, companies, communities and economies. Let’s look back for a second: the financial crisis of 2008 has shown that while the economy in total shrank, the consumer good industry kept growing. In 2020, again, we grew by bringing the right products to consumers when they were needed most and accelerating innovation to respond to changing consumer needs whilst we continued to intensify our work with our traditional retail partners and pioneered new ones too. At P&G, we also adapted our brand communication to be useful to our consumers  providing information, tips and hints on how to keep their homes and clothes clean, safe and hygienic; sharing ways to keep babies, parents and families entertained during lockdowns and how to use personal care products to enjoy a well-earned “me moment” in the midst of chaos, whilst juggling all the challenges life was throwing at us.

THE CONSUMER INDUSTRY – ENGINE OF GROWTH

The consumer industry is a fundamental engine of our European economy. It touches millions of Europeans, directly and indirectly, every day. CPG alone accounts for a market worth ~$1,300BN in Europe (Nielsen). At P&G we play our role and we aspire to contribute to our communities in every country, in every market and every channel where we sell our products.  With our 32.000 employees, 32 manufacturing plants in 15 countries, hundreds of retail partners and 35.000 suppliers, 400 products sold per second, in 1 million stores throughout the region – we are at the heart of Europe and we know we have a key role to play for the recovery of our beautiful Europe. We will continue to play our part - the CPG industry is a bedrock of stability, not only but especially in times of crisis.

 WE KNOW OF OUR RESPONSIBILITY & HAVE A ROLE TO PLAY.

While we work towards recovery, we must create and shape the future: More than 2000 P&G Researchers are inventing the products that Europeans will need in a changing world. At the same time our brand builders and commercial teams are inventing the future of brands and retail, designed to serve consumers no matter what the context will be, delighting them in their homes and in the shops of the future. Our everyday products are an important part of everyone’s daily routine.

OUR MISSION IN 2020 – AND BEYOND

We will continue to focus on improving the lives of consumers and we will create value for all stakeholders. We make sure that our products are available where they are needed and that they are the best they can be for our consumers. We are continuing to invest to ensuring that the life cycles of these products respect the natural resources of our planet and that they are produced in a responsible way; a way that makes our employees, partners and stakeholders thrive. 

I BELIEVE THAT EVERY CRISIS IS AN OPPORTUNITY TO IMPROVE THE STATUS QUO.

We will continue to generate value for all our stakeholders, starting with consumers. We will continue to create sustainable and responsible category growth. We will put a special focus on being a lighthouse for doing business the right way. This year is going to be a difficult year for the world and for Europe, but we continue to look at it with confidence. I am an optimist by nature, and I know that P&G Europe will contribute to getting through and out of the crisis and we are committed to deliver growth in 20-21, as in every year, in any context.