The CPG Playbook: Pivoting for Shifting Consumer Demands

With the fourth quarter now underway, major players in the consumer packaged goods (CPG) industry are facing a landscape marked by challenges and opportunities.

Companies such as Mondelez International, Kraft Heinz, Procter & Gamble and Colgate-Palmolive have released their latest earnings results, offering insights into their strategic priorities and positioning within the market.

Mondelez International continues to strengthen its portfolio with a strategic focus on growth. The company reported a 5.4% rise in organic net revenue, driven by strong performance in key segments. Notably, Mondelez made headlines with its acquisition of a majority stake in Evirth, a Chinese cakes and pastries manufacturer, signaling its expansion in a lucrative market.

“We remain focused on reinvesting behind our brands, driving distribution, expanding our capabilities and maintaining cost discipline,” CEO Dirk Van de Put said in an earnings release. “We continue working to accelerate our core business while strategically reshaping our portfolio — for example, through our expanded partnership with Evirth, a leading manufacturer of cakes and pastries in China. We are excited about the opportunity to further leverage our iconic brands and distribution to create more premium offerings in the fast-growing cakes and pastries space.”

Mondelez, whose CPG portfolio includes Cadbury, Oreo, and Chips Ahoy, emphasized brand reinvestment and operational efficiency. Looking ahead, Mondelez remains optimistic about achieving organic net revenue growth at the upper end of its 3% to 5% target range.

Kraft Heinz’s third-quarter results paint a complex picture. CEO Carlos Abrams-Rivera highlighted growth in two of the company’s strategic pillars — Global Away From Home and Emerging Markets — while noting a slower recovery in the U.S. Retail segment. Despite a 2.8% decline in net sales, Kraft Heinz is channeling investments into marketing and innovation to address evolving consumer needs.

“While we have faced near-term challenges in select U.S. Retail categories, we are actively responding to drive our own recovery,” Abrams-Rivera said. “We are managing the business in a disciplined manner to protect profitability and invest for growth. Today, we are creating solutions that bring value for our consumers and selectively investing in trade to drive volume recovery. When we look at our U.S. Retail business, we are expecting more of an elongated recovery, driven by specific categories that continue to experience pressure. We continue to make investments in marketing, research and development, and technology as we look to bring solutions to the table that both create value for our consumers and support future top-line growth.”

The company is focused on revitalizing iconic CPG brands such as Lunchables, a priority despite current market pressures.

During the third quarter, Procter & Gamble experienced its share of market challenges, particularly in China and the Middle East. The company reported a 1% decline in net sales, reflective of changing consumer behaviors driven by economic uncertainty. As an example, CEO Jon Moeller pointed to a move toward budget-friendly options among consumers, particularly those from lower-income demographics.

Despite this trend, the CPG company is steadfast in its pricing strategy in the U.S., with Chief Financial Officer Andre Schulten saying P&G sees no immediate need to reduce prices in the domestic market.

“Nothing points to the consumer trading down,” Schulten told investors and analysts during the company’s Oct. 18 earnings call. “The categories we’re in we have the right value proposition, the right price levels, access to consumers, and as long as we keep innovating, I believe we will be fine.”

P&G remains focused on its integrated growth strategy, with a sales growth forecast of 2% to 4% for fiscal 2025.

Colgate-Palmolive, for its part, delivered consistent results with a 2.4% increase in net sales and a notable 6.8% growth in organic sales. The company’s focus on increasing household penetration across its categories has been pivotal in driving market share. As the company seeks to maintain its momentum, continued investment in advertising and innovation will play a key role.

“We are very pleased to have delivered another quarter of strong top and bottom line results with earnings exceeding our expectations,” said Noel Wallace, chairman, president and CEO of Colgate-Palmolive. “Every operating division delivered positive volume growth for the second consecutive quarter as we focus on increasing household penetration to drive category growth and market shares.”

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