THE LATEST NEWS IN CONSUMER & RETAIL

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THE LATEST?NEWS IN CONSUMER

Big news from Cincinnati as Procter and Gamble announces the arrival of a new CEO, Jon Moller, the first one to come from finance. They've also posted positive results this quarter (significant as they were already coming from a good 2020).

The 2020 Covid crisis and its collateral effects brought a steep sales surge in Hygiene related products. The issue is now managing expectations, with the likes of Kimberly-Clark, Reckitt and Clorox showing now disappointing results.

Toothpaste King Colgate-Palmolive didn't suffer the effects of lockdowns and has actually increased sales in Q2. Unfortunately for them, though, rising costs have impacted their bottom line.

A company that's hit the headlines in the last months, and not for the desirable reasons, has been Danone. But this week is a different story: they've published positive results with growth in all 3 divisions ahead of new CEO Antoine de Saint-Affrique starting in September.

In this year of comebacks, the spirits industry has also played its part. Diageo, the world's number 1, have?raised their yearly forecast thanks to a strong performance in North America and Emerging Markets.?On the other hand, Remy Cointreau, fell short as its sales increase stayed in its "early teens".

News from the Keg: beer giants AB-Inbev and Heineken are on a positive trend in sales but concerned about raising costs which are affecting their bottom line. A concern that's here to stay for the next months.

In the last newsletter we talked about Beam Suntory's alliance with The Boston Beer Company to sell RTD Cocktails. Ironically, the latter have admitted the mistake of over-promising on hard seltzer sales, which have hit the company's stock price. CEO David Berwick has admitted they "don't look very smart".

As mentioned, increasing production, materials and freight costs are hitting the industry hard. A category where there's much concern around these is toys. Both Mattel and Hasbro are thriving sales-wise but their profitability is not following. Finally, there's also the concern around how related these positive sales are to pandemic effects.

In the food world, Mondelez has reported positive results, but with a?caveat: sales stalling in North America. Formerly troubled Kraft-Heinz, in the meantime, has beat?expectations even though they didn't reach 2020's phenomenal sales.?

L'Oréal, who last year faired well thanks to their past digital investments, is now benefitting from the end of restrictions in the US and China.?

Germany's business behemoths Bayer, Beiersdorf, adidas all report better than expected results thanks to a high demand of their products.

Pepsico just offloaded Tropicana and the rest of its juice portfolio by selling it to PE firm PAI Partners.

THE LATEST?NEWS IN RETAIL

In the sports world, Under Armour's?on a positive trend with one big surprise: a drop in eCommerce sales. German challenger PUMA?has?won in this H1 with an extremely strong performance (3Bn+ in 6 months - was their yearly revenue not long ago).

LVMH is coming out of the pandemic in an excellent shape, with their most iconic brands (eg LV handbags) delivering well above expectations. One key data point: Q2 fashion and leather division sales surged 120% vs 2020 and 40% versus 2019.?

Armani back on track as sales rebound (although still not at 2019's levels), while rumours of a potential tie-up with the Agnelli family to start a new luxury conglomerate increase.?

In line with other luxury firms, Moncler is coming out of lockdown very strong. Question mark here is around the sustainability of these numbers when restricted leisure options become available again.?

Ralph Lauren has raised its 2022 FY forecast to between 25% and 30% together with a strong marketing investment (+40% vs 2019).