德银-全球-消费品行业-第16届全球消费者大会要点-2019.5.31-318页_7mb

dbAccess Global Consumer Conference Summary

Core Content

The dbAccess Global Consumer Conference took place in Paris from 11-13 June 2019, bringing together a diverse group of companies from the consumer staples, luxury, and food retail sectors. The conference aimed to provide insights into the current state of the consumer industry, including financial performance, strategic direction, and market dynamics.

Main Sectors and Their Focus

1. Consumer Staples

• Key Themes: Operating performance, M&A activity, and valuation trends.
• Debates:
  • The impact of a strong USD on emerging market (EM) growth, especially in light of macroeconomic concerns in China.
  • Whether pricing in developed markets (DMs) is becoming a relic of the past.
  • The future of the sector in the face of evolving communication and distribution channels.
  • Whether margin progression is slowing and if this could lead to increased M&A activity, especially with low funding costs.
• Conclusion: Despite ongoing debates, consumer staples continue to offer a strong combination of yield and steady growth, supported by a diversified global presence and established brands.

2. Food Retail

• Challenges: Limited growth, margin pressure, and increased competition from discounters and e-commerce platforms.
• Risks:
  • Political and regulatory uncertainties in various regions (e.g., Brexit, US tariffs, Polish retail tax, new regulations in France, and economic instability in Brazil).
• Strategic Adjustments:
  • Retailers are expected to adapt by cutting costs, accelerating digital transformation, and forming partnerships with technology players.
  • Consolidation is anticipated as a response to these challenges.

3. Luxury

• Performance: Demand remains strong, though performance is polarized.
• Key Observations:
  • Strong momentum driven by Chinese consumers, with mixed but generally supportive results from other nationalities.
  • Some brands are performing well, while others are in a 'relaunch mode'.
  • Valuations are relatively high compared to the market, though still below the 2019 high.
• Conclusion: The sector's valuations leave little room for disappointment and are vulnerable to top-down concerns, particularly from China, where the RMB is a key factor.

Key Companies and Speakers

The conference featured presentations and 1-on-1 meetings with a wide range of companies, including:

• Anheuser-Busch InBev
• Ahold Delhaize
• Altria Group
• Aston Martin Lagonda
• Beiersdorf
• British American Tobacco
• Brown-Forman
• Burberry Group
• Capri Holdings
• Carlsberg
• Casino
• Chow Tai Fook
• Church & Dwight
• Coca-Cola Amatil
• Coca-Cola European Partners
• Coca-Cola Hellenic
• Colgate-Palmolive
• Dali Foods
• Danone
• Davide Campari Milano
• Diageo
• EssilorLuxottica
• Essity
• Farfetch
• General Mills
• Givaudan
• GlaxoSmithKline
• GrandVision
• Heineken
• Henkel
• Hormel Foods
• Imperial Brands
• International Flavors & Fragrances
• L’Oréal
• Mondelez International
• Nestle
• Nomad Foods
• Ontex
• Pernod-Ricard
• Philip Morris International
• Prada
• PVH Corp.
• Ralph Lauren
• RB
• Rémy Cointreau
• Royal Unibrew
• Sprouts Farmers Market
• Suedzucker
• Sun Art Retail Group
• Swedish Match
• Symrise
• Tate & Lyle
• The Clorox Company
• The Coca-Cola Company
• The Procter & Gamble Company
• Tiffany & Co.
• Unilever
• Walmart
• WPP Group

1-on-1 Meetings

• A variety of companies hosted meetings with Deutsche Bank analysts, providing detailed insights into their financial strategies, market outlooks, and operational updates.
• Key participants included CFOs, CEOs, and Investor Relations Directors, indicating a focus on financial transparency and strategic communication.
• The agenda was subject to change, reflecting the dynamic nature of the consumer sector and the need for real-time updates.

Analysts Involved

The conference was supported by a team of Deutsche Bank research analysts, including:

• Gerry Gallagher
• Andrea Pistacchi
• Eva Quiroga-Thiele
• Virginie Boucher-Ferte
• Steve Powers
• Rob Dickerson
• Francesca DiPasquantonio
• Maxime Mallet
• Anne Ling

These analysts provided comprehensive coverage and insights into the participating companies.

Conclusion

The dbAccess Global Consumer Conference served as a platform for in-depth discussions on the challenges and opportunities within the consumer industry. Despite macroeconomic uncertainties, the sector continues to offer value through steady growth, diversified exposure, and strong brand presence. Companies are adapting to a rapidly changing environment through strategic cost management, digital transformation, and potential consolidation.