CEO INSIGHTS – Week Ending 21 June 2024

Snack Foods

“I have no concern in the structural nature of the behaviour of snacking…our portfolio, in particular, which is really well positioned in what I would call the more elevated or added value experience spaces, which has really been the primary driver of growth in snacking, where people are seeking either unique flavours, texture, a more unique experience.” Mark Clouse, CEO, Campbell Soup Co.

Europe & UK Economies

"So from a market standpoint, I have to say Europe has proven to be more resilient than many other places, I think, again, particularly in chocolate. We haven't seen, in spite of the pricing that we have taken in the last few years, any volume repercussion, quite frankly... And so I feel quite positive in terms of the consumer sentiment in Europe." Luca Zaramella, CFO, Mondelez International Inc

"On the second question in terms of consumer spending, we're seeing it hold up very well, particularly in food. So we're seeing volume growth across all of our markets, and we're very encouraged by that." Ken Murphy, CEO, Tesco Plc

Advertising, Marketing & Varying Customer Expectations

"I mean, if you take a step back also, every single ad company right now will tell you that the more variance that you provide [for different end markets], the better your chances are of appropriately getting an uplift for your media spend. So I would say that most companies are starting with creating these variations for [different] geographies." Shantanu Narayen, CEO, Adobe Inc

“Starting with customer expectations. It's quite clear that we have a wide variation of customer expectations. They become larger, those expectations. They become more fragmented, more differentiated in a function of the segmentation of the market. And this is going to represent a significant disruption compared to what we have been seeing over the last few years.” Carlos Tavares, CEO, Stellantis NV [parent company of brands including Alfa Romeo, Chrysler, Citroën, Fiat & Jeep]

Labour Markets & Retirement

“I think the next 3 to 5 years there's going to be major talent issues. It's so-called Peak 65, where over the next 4 to 5 years, kind of the last of the baby boomers are retiring or should be retiring statistically. And you could lose 4 million people a year in the United States alone or maybe it's higher. The economy right now is producing about 1.8 million jobs...I just think there's tremendous demographic pressure on the other end here. And I think it's the case for not only the United States, but some other countries.” Gary Burnison, CEO, Korn Ferry Inc

“Getting labour is still the number-one challenge for businesses. It has settled down in some sectors, but we’re still seeing it [play out] in others such as civil services, construction and some specialised businesses.” Rachel Slade, Head of Business Banking, National Australia Bank Ltd‍

Research, Academia & Publishing

“Submissions growth, a critical leading demand indicator, has risen to 15% on a trailing 12-month basis. This is considerably higher than we expected and speaks to the global research and demand to publish, be recognised and further one's career.” Matthew Kissner, CEO, John Wiley Sons Inc [leading global peer review publisher]

Domestic Economy

“The evidence on inflation is that it is telling us that demand is still a bit too strong” Michelle Bullock, Governor, Reserve Bank of Australia

New Zealand

“According to NIWA's [National Institute of Water and Atmospheric Research] Climate Summary for May 24, this May was the coldest in 15 years" Market Announcement, Contact Energy Ltd [major NZ utility company]

"We are seeing a prolonged impact of cost-of-living pressures on consumer sentiment globally but particularly in New Zealand.” Michael Daly, CEO, KMD Brands

Hospitality

“Pubs and clubs are doing incredibly well, but small restaurants and coffee shops are absolutely doing it tough.” Mike Vacy-Lyle, Head of Business Banking, Commonwealth Bank of Australia Ltd

Commodities

"I think we're in a situation where we've seen that the consensus long-term pricing for lithium carbonates has increased quite significantly over the past 3 or 4 years, sort of the lifetime of our company. I think that new lithium supply has proven to be a bit slower and higher costs than perhaps was expected a few years back” Julian Andrews, CEO, Deterra Royalties Ltd

Packaging

“Glass has an incredibly challenged carbon story.” Daniel Fisher, CEO, Ball Corp [world's largest manufacturer of aluminium cans]

Office Market

“The investment metrics displayed by recent sale activity support a softening in office market valuations...There is continued occupier demand for well-located, high-quality buildings as seen in our portfolio occupancy” Ross Du Vernet, CEO, Dexus Group Ltd

Industrial & Heavy Equipment

“China are in a significant downturn, particularly in the “10-ton and above” excavator market, which is where we play. The U.S. has remained strong, and particularly on the construction side…Obviously in resources, we're seeing particularly a little bit of drawing back in areas like articulated trucks and off-highway trucks specifically relating to 2023 comparisons” Andrew Bonfield, CFO, Caterpillar Inc

Hydrogen

“The biggest barrier to the widespread adoption of gases like hydrogen and biomethane is cost – the technology is there, but it is not currently commercially viable to produce these products at scale” Adam Watson, CEO, APA Group‍