Cost to serve news

01 December 2021
Swedish retailer, ICA has developed a highly automated warehouse to support its online business growth. The facility, located close to Stockholm, will be operational from the 1 st December and is the first of its kind in Sweden. A partnership with Ocado ICA invested SEK 1.1billion in the warehouse which has been developed in partnership with Ocado Group. Ocado’s automation has been adapted...
12 November 2021
As inflation hits a 30-year high in the US, we are starting to see retailers shift to a stronger value-led focus, in-store and online. Could this be a foreshadow of what’s to come in 2022? Prices hit 30-year high The annual Consumer Price Index (CPI) hit a 30-year high of 6.2% in October. The scale and scope of the increased commodity, packaging, labour and freight costs which suppliers con...
11 November 2021
Having weathered the COVID-19 pandemic, our industry continues to face new challenges. We look at what’s top of the list for the senior team at the Kellogg Company. Growth held back by supply challenges Organic sales increased 5.1% in Q3, with demand at-home remaining elevated and most of its powerhouse brands outperforming their relevant categories. Without some of the supply challenges it...
04 November 2021
With organic net sales up 1.3% in Q3 year-on-year, and up 7.6% versus 2019, we look at how Kraft Heinz is planning to mitigate the impact of cost inflation. Delivering gains after 2020 surge The company’s sales performance in the quarter paints a familiar picture with many CPG suppliers posting moderate gains versus last year and a significant increase versus 2019. The ability of companies ...
25 October 2021
We look at Nestle’s expectations on rising input cost inflation and the prospect for further price increases next year. Broad-based growth Nestle reported a 7.6% increase in organic growth for the first nine-months of the year, driven by a 6.0% increase in real growth and a 1.6% pricing increase. The business continued to deliver a solid performance across developed and emerging markets as ...
21 October 2021
In reporting a strong first quarter, with organic sales up 4%, following growth of 9% in the same period last year, the company noted that it expects cost headwinds of over $2bn this year. We look at some of the measures it is taking to offset these. Recovering costs over time Based on current estimates, P&G expects a $2.1bn after-tax commodity headwind and freight and transportation to add...
13 October 2021
The current shortage of HGV drivers is perhaps the biggest challenge the food and consumer goods industry has faced in years. Its impact can be seen in supermarkets, which have been negatively impacted by missed deliveries and replenishment problems in recent weeks. A few months ago, my colleague James Walton looked at the overarching causes, consequences and potential remedies to the HGV dri...
27 September 2021
We look at the recent supply chain challenges that Costco and Walmart are seeing with higher costs, shipping capacity and labour shortages. Costco delays price increases despite the current challenges As with the wider industry, the retailer is facing into with cost, supply chain and labour challenges. Inflationary factors are broad based, but is seeing major increases in shipping costs, pu...
22 September 2021
CO2 production resumed Production of CO2 at CF Industries’ plant in Teesside will be resumed in the next few days, as the government is set to cover full operating costs to run the plant for three weeks. The plant is due to become operational again in three days’ time. CF Industries’ second plant, located in Cheshire, will still remain closed for now. US-owned CF Industries has recently sto...
03 September 2021
After announcing plans to launch a purchasing alliance, the partnership between Casino and Intermarché officially started on 1 September. The partnership starts ahead of the 2022 trade negotiations. Auxo to focus on range of solutions… As part of the alliance Casino and Intermarché will be purchasing goods together, but also developing digital services and producing private labels. The alli...