CONSUMER GOODS & SERVICES
THE INDUSTRY
A focus on margin has driven divestment of brands and business units.
The consumer industries provide the products and services that we all use to sustain and improve our lives. For many years the sector returned strong growth with consistent margins but over the last decade conditions have changed: population growth has slowed; the global financial crisis reduced spending power for many groups; the Chinese economy slowed and the pandemic caused dramatic swings in demand while disrupting manufacturing and supply chains that are crucial for the sector. More recently geopolitical tensions, tariff battles and ESG concerns have risen to the top of agendas.
Large consumer businesses spanning multiple subsectors have adjusted their brand portfolios to concentrate on higher margin business – often divesting brands and business units. This has provided opportunities for investors and private equity. The general reduction in topline growth has led to stronger focus on cost reduction. As always, technology has had a major impact with the internet, social media and digital advertising having profound effects, often allowing smaller brands and new entrants to create or capture desirable premium market segments in their chosen subsectors.
How we can help
Arundel has extensive experience across the industry including, consumer foods, home and personal care, travel, clothing, drinks, snacks, confectionery, luxury goods and durables. We understand the trends and commercial dynamics affecting the industry and we also have extensive experience of developing the operating models, processes and systems employed by leading global players. Our team has worked across Supply Chain, Sales and Customer Service, Manufacturing, Purchasing, Marketing and R&D with extensive line management experience across these functions.
Our consultants have shaped and delivered some of the largest international transformations for blue chip leaders in the sector. With smaller companies we have delivered focussed performance improvement initiatives. We have extensive M&A experience including carve outs and reverse take overs. Often these transactions have been driven by the portfolio reshaping described above.
Whether it’s an M&A transaction, an operating model refresh, an operational turnaround or an EBITDA improvement project, we can provide you with the additional leadership or interim management resources to help you secure the results you need.
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