According to Jon Andersen, CFA, partner, and research analyst covering the consumer products sector, now is the time to play chess, not checkers, in the consumer packaged goods (CPG) industry. After several challenging years for the sector, our analysts believe the current environment may create opportunities to reassess industry assumptions and identify overlooked companies.
Industry Insights: Time for Chess, Not Checkers, argues that changing consumer preferences and ongoing pressure on profitability may require companies to pursue more transformative strategies, including portfolio optimization, brand consolidation, and potential mergers and acquisitions.
While larger legacy CPG companies may require time to improve performance, the report suggests that increasing pressure across the industry makes broader strategic change increasingly likely. Whether driven by management teams or external forces, these shifts could create potential opportunities for long-term investors.
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