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Michael Baudendistel Wednesday, October 23, 2024

Retail, CPG industries brace for election results

Latest The Stockout show explores sock puppets This is how RFK Jr. sees U.S. food regulators. (Image: FWTV) On Monday’s The Stockout show, which focuses on topics relevant to shippers in the retail and CPG industries, Grace Sharkey and I discussed how the election could impact those sectors. If Trump is elected, the Federal Trade […]

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Michael Baudendistel Friday, January 20, 2023

Startups target sugar reduction

Sugar reduction startups The consumer-packaged-goods-related article that I found most interesting this week was in FoodBusinessNews and it described three startups focused on developing very innovative sugar reduction alternatives. Here is a quick synopsis of those companies: Growing concern about sugar and salt intake Of course, there are easy ways for consumers to cut sugar. […]

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Michael Baudendistel Wednesday, January 18, 2023

Consumers start to balk at higher prices

Growing evidence of ‘shopper rebellion’ Elasticities, or the negative change in sales volume in response to rising prices, has been one of the main topics in the CPG industry in the past year. Despite two consecutive years of steeply rising prices, including last year’s CPG price growth of upward of 15% or more in many […]

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Michael Baudendistel Wednesday, August 17, 2022

CPGs grapple with uncertain consumer behavior

How well will consumer packaged goods (CPG) purchases ultimately hold up?  Not only is CPG demand forecasting arguably more difficult than ever, it is also more critical than normal since many CPGs have to decide whether to continue with high-cost contract manufacturing that served as a way to find capacity during the pandemic when demand […]

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Michael Baudendistel Wednesday, May 25, 2022

Rail service becomes bigger political football

Ranked 39th on the Transport Topics list of top brokerage firms, Axle Logistics takes a consultative and streamlined approach to your shipping needs. Email sales@axlelogistics.com to connect with the team today!  Bipartisan agreement that rail service is poor  As described by FreightWaves’ Joanna Marsh, a group of 19 senators from 13 states wrote a letter […]

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Michael Baudendistel Friday, December 10, 2021

10 CPG trends to watch in ’22

Instead of discussing the current CPG news and freight data per my usual, for today’s newsletter I highlight the CPG industry trends I expect to see in 2022.  Trend No. 1: Consumer behavior will change in response to rising prices, at least among lower-income consumers. The topic of the hour is inflation, which hit a […]

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Michael Baudendistel Tuesday, November 23, 2021

Consumer data shows mixed messages

Before getting into what’s happening in CPG supply chains, here’s something for your calendar: I host the next quarterly The Stockout webinar on Dec. 6 at 2 p.m. ET. Here’s the link to register. Last quarter, there was a great turnout, and the discussion was enhanced by the many participants who asked thoughtful and pertinent […]

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Michael Baudendistel Tuesday, March 30, 2021

The Stockout: Starbucks targeting GHG reduction early in its supply chain

Last week Starbucks expanded upon its previously stated goal to be a “resource-positive company,” with specific goals related to sourcing coffee beans, land use and production. What’s striking is how targeted the company’s greenhouse gas (GHG) reduction efforts are at the point of origin and the company’s willingness to share environmental best practices throughout the […]

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Michael Baudendistel Wednesday, March 24, 2021

General Mills sees mid-single-digit freight cost inflation

Most CPG companies will report earnings next month, but with an off-cycle fiscal year ending May 31, General Mills reported its fiscal third quarter Wednesday morning for the December-February quarter. General Mills’ size and its off-cycle reporting make it a bellwether for next month’s earnings reports. As I’ve discussed in other editions of The Stockout, […]

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Michael Baudendistel Friday, March 19, 2021

Will pork market go hog wild over Prop 12?

Earlier this week in The Stockout CPG-focused newsletter, I discussed the impact that China’s efforts to replenish its hog population was having on corn and soybean exports as well as the related transportation challenges. Today, I dig into another pork-related issue, California’s Proposition 12, which could have a major impact on pork supply chains and […]

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Michael Baudendistel Tuesday, March 16, 2021

The Stockout: Cargill puts its money where its beans are

Cargill’s announcement last week that it is making a nearly half-billion dollar investment in soybeans caught my attention because it suggests that one of the world’s largest food producers believes that soybeans are poised for sustainable growth and the recent price appreciation and surge in production are not just the result of transient trends. It’s […]

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Michael Baudendistel Tuesday, March 9, 2021

Reefer shippers beware: Capacity shifting to dedicated and carriers practicing stricter freight selection

This article was originally published in The Stockout newsletter on February 3, 2021. To sign up for The Stockout newsletter, click here. We recommend that CPG companies, and others that ship refrigerated goods, pay close attention to Marten Transportation’s results each quarter. Marten, which reported its fourth quarter last week, is listed seventh on the […]

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Michael Baudendistel Friday, March 5, 2021

Nothing light about Bud’s debt load

One financial metric in the CPG world that stands out to me is AB InBev’s net debt-to-EBITDA ratio: 4.8x. The company has been highly leveraged since its acquisition of SABMiller in 2016 when its debt topped $100 billion (net debt was $82.7 billion at the end of 2020) and the pandemic hurt the company’s profitability […]

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