Running To Stand Still
OC&C's annual review of the Top 50 global FMCG companies (2010)
After the storm of recession, dead calm. Sales have flattened for the top 50 fmcg giants of today but a few are speeding along.
As recession battered global markets, the world’s biggest fmcg companies proved their mettle. Huge, efficient and diverse, they ploughed through 2008’s economic storm – as with 2007’s spiralling inflation – virtually unscathed. So, with the black clouds retreating, the relative calm of 2009 would be no challenge – right?
Wrong, The Global 50, compiled by OC&C Strategy Consultants, are labouring under some of the toughest conditions yet: stagnant consumer demand, volatile commodity prices and – on a scale note seen before = slick and effective local competition in emerging markets.
Overall sales growth dropped from 13.3% in 2008 to just 0.6% in 2009, while SAB Miller, Dean Foods and FrieslandCampina saw double-digit sales declines. Four of the five biggest grocery companies experienced a dive in sales. Profit margins also suffered …