GMA Reveals Keys to Growth

Top-performing companies in the food, beverage and household products sectors that leverage the demand chain will be in the best position to continue to grow, according to the 2012 Financial Performance Report by the Grocery Manufacturers Association (GMA) and PwC US, titled Profitable Growth: Driving the Demand Chain.

 

In 2011, both top and bottom performing companies saw their sales growth continue to revive. The food, beverage and household products sectors each showed continued strong net sales growth of 9.5 percent, 10.5 percent, and 7.5 percent respectively.

 

According to the report, consumer packaged goods (CPG) companies and retailers should invest in brands by leveraging the demand chain to better identify and meet consumer needs. The links in a typical CPG demand chain can include front-end sales, marketing, customer service, trade promotions, brick-and-mortar retail partners, online retailers, social media sites and reverse logistics or end-of-product-life recycling. The report includes a breakdown of the CPG sector’s top-performing companies, explores direct-to-consumer touch points, consumer demand for sustainable product, and overseas expansion as a way to fuel future growth.

 

 “CPG companies that shift new strategic investments to their demand chain will stand the best chance of creating new growth,” says Susan McPartlin, PwC’s US leader, retail and consumer industry. “The series of activities that sparks and maintains a brand – the demand chain – should be just as integral a part of strategic decisions as are operations and the supply chain.”