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Executives from Constellation Brands, McCormick, Celsius, General Mills, Nestlé and Mondelēz discussed supply chain plans at the Barclays Global Consumer Staples Conference in early September. Their efforts include targeted cost savings, freight optimization, AI-supported planning and reducing excess products, while inflation, logistics costs and market conditions remain challenges.
Executives from six food and beverage companies outlined supply chain plans at the Barclays Global Consumer Staples Conference in early September, including cost reductions, freight changes, AI-supported operations and product assortment cuts. The plans reflect a shared focus on improving business performance, but companies also cited cost pressures and market challenges that could affect results.
Constellation Brands is on track to deliver its projected $200 million in savings by fiscal 2028, which begins March 1, 2027, CFO Garth Hankinson said. The company has generated more than $600 million in procurement, logistics and operations savings since 2023, he said. McCormick CFO Marcos Gabriel said procurement reductions are expected to account for $240 million of the $600 million in recurring annual expense reductions forecast for the three years after its planned merger with Unilever Foods is completed. The companies have said they expect the deal to close in mid-2027.
Celsius Holdings integrated its 2025 acquisitions, Alani Nu and Rockstar Energy, into its supply chain in the first half of 2026, CFO Jarrod Langhans said. It is now working to reduce differences in freight rates across its brands, including by limiting cross-country and other inefficient transportation. General Mills is applying AI to demand forecasting, logistics planning and manufacturing optimization, COO Dana McNabb said. The company has said its supply chain revamp is intended to generate $1 billion in savings by 2030.
Nestlé is removing underperforming products and reducing distributor overlap in China after expanding its product range there, CFO Anna Manz said. Mondelēz International, meanwhile, said cocoa supply and demand have improved after years of volatility. COO Luca Zaramella described the market as oversupplied, saying production over the past few years was sufficient to cover the earlier deficit that had reduced stocks.
How Companies Are Reworking Costs
The plans show how companies are treating supply chains as a direct lever for cost control and operating performance, not just product delivery. Procurement savings, more efficient freight and fewer low-performing stock-keeping units can reduce expenses, while forecasting and manufacturing tools may help align output with demand. The companies’ targets are not all on the same timetable, and several depend on deals or multi-year programs.
The discussion also highlights the limits of those efforts. Hankinson said Constellation expects inflationary pressures to affect margins in the second half of its current fiscal year, including higher commodity prices and a trucking supply-demand imbalance. General Mills CEO Jeffrey Harmening said the company’s logistics costs were up 40% from a year earlier, although the increase was in spot rates, which account for about 7% of its freight. These pressures could offset some savings, though the executives did not quantify a net effect.
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Six Strategies From One Conference
The remarks came during the Barclays Global Consumer Staples Conference, where company executives updated investors on business conditions and plans. The six companies described different approaches rather than a single industry program: Constellation is targeting broad procurement and operations savings; McCormick is looking to use the scale of a proposed merger; and Celsius is addressing freight costs following brand acquisitions.
Other efforts focus on matching operations to demand. General Mills has linked its supply chain revamp to process improvements, technology and operating models. Nestlé is reducing product and distribution complexity in China, where Manz said category market share is declining. Mondelēz’s comments came after cocoa volatility led the company to shift some of its product mix toward items less dependent on cocoa, according to the conference report.
“We’re building real discipline and muscle in that space.”
— Garth Hankinson, Constellation Brands executive vice president and CFO
Savings Meet Cost Pressures
The conference remarks do not establish how much of each company’s planned savings will translate into improved profit after inflation, freight costs and other pressures. Constellation’s $200 million target is a forecast, and McCormick’s projected reductions depend on completion of its merger with Unilever Foods, which the companies have said is expected in mid-2027.
Further details are also limited on the timing and financial impact of Celsius’ freight changes, General Mills’ AI initiatives and Nestlé’s assortment reductions in China. Manz said Nestlé expects it to take time to move from market-share losses to consistently holding share and then outperforming its categories. Mondelēz’s outlook reflects an executive’s assessment of cocoa supply and demand; the conference account did not provide a separate forecast or quantify how the market change may affect prices or product costs.
Targets Stretch Into 2030
Investors will be able to compare progress with the companies’ stated timelines in subsequent financial updates. Constellation’s savings target runs through fiscal 2028; McCormick’s proposed merger savings are tied to the three years after the transaction closes, with the companies expecting a mid-2027 closing; and General Mills has set a 2030 horizon for its supply chain savings plan.
For Celsius, the next reported measure will be whether it can bring freight costs across its brands closer together. Nestlé’s results in China will show whether assortment and distribution changes help stabilize market share. Mondelēz’s later updates may clarify whether the improved cocoa supply picture persists and how it affects sourcing and product decisions.
Key Questions
Which companies discussed supply chain plans?
Constellation Brands, McCormick & Co., Celsius Holdings, General Mills, Nestlé and Mondelēz International discussed their approaches at the Barclays Global Consumer Staples Conference.
What savings targets did the companies cite?
Constellation said it is on track for $200 million in savings by fiscal 2028. McCormick expects $240 million in procurement savings as part of $600 million in recurring annual expense reductions following completion of its proposed merger with Unilever Foods. General Mills has said its supply chain revamp is intended to deliver $1 billion in savings by 2030.
How is General Mills using AI in its supply chain?
COO Dana McNabb said General Mills uses AI for demand forecasting, logistics planning and manufacturing optimization as part of its supply chain work.
What supply chain changes is Nestlé making in China?
Nestlé is removing underperforming products and stock and consolidating distributors where it has too many, CFO Anna Manz said. She also said the company’s category market share in China is declining and recovery will take time.
What remains uncertain about the plans?
The conference remarks do not show how much of the planned savings will remain after inflation and freight pressures, or the eventual results of the companies’ initiatives. Some targets also depend on future milestones, including the proposed McCormick–Unilever Foods merger.
Source: rss
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