Consumer companies ramp up deep-dive portfolio reviews, a key to a successful divestment strategy

Divestment plays a critical role for consumer products and retail companies that are looking to focus on growing their core businesses. Many consumer companies are facing weak growth and are grappling with constantly changing consumer tastes and demands, while brand loyalty is on the wane.

EY’s new Global Corporate Divestment Study looks at how consumer businesses can get the most out of their divestment strategies and avoid being weighed down by assets that no longer fit their business model.

Regular, deep-dive portfolio reviews are essential to a strategy of using non-core divestments to power growth and our study shows that more than 75% of consumer companies are ramping up their portfolio reviews, looking for potential divestment candidates. As important, an increasing proportion of companies in the sector are tapping into their data and using analytics to gain deeper insights into their portfolios.

Read the report here for more insights on how consumer companies are approaching divestments.