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Executives from Constellation Brands, McCormick, Celsius, General Mills, Nestlé and Mondelēz discussed supply chain costs and operating changes at the Barclays Global Consumer Staples Conference in early September. Their plans include procurement savings, freight optimization, AI use, reducing product options in China and responding to a more stable cocoa market; timelines and market pressures differ by company.
Executives from six food and beverage companies outlined supply chain changes at the Barclays Global Consumer Staples Conference in early September, including cost-saving targets, freight adjustments and product range reductions. The remarks show how companies are trying to improve operating performance while dealing with pressures such as trucking rates, logistics costs and category share losses.
Constellation Brands said it remains on track to deliver $200 million in savings by fiscal 2028, which begins March 1, 2027. CFO Garth Hankinson said the company has generated more than $600 million in procurement, logistics and operations savings since 2023. He cited supply-demand conditions in trucking and higher commodity prices as inflationary pressures that could weigh on margins in the second half of the current fiscal year.
McCormick expects procurement to account for $240 million of recurring annual savings within a projected $600 million in annual expense reductions over the three years after its planned merger with Unilever Foods is completed. CFO Marcos Gabriel said the estimate reflects overlap among suppliers and potential efficiencies in purchasing ingredients, materials and packaging. The companies have said the $44.8 billion deal is expected to close in mid-2027.
Celsius said it integrated its 2025 acquisitions, Alani Nu and Rockstar Energy, into its supply chain during the first half of 2026. CFO Jarrod Langhans said freight costs per case are higher for those brands than for Celsius and the company is seeking more consistent rates by reducing cross-country transportation. General Mills is applying AI to demand forecasting, logistics planning and manufacturing optimization as part of a supply chain revamp it expects to save $1 billion by 2030. CEO Jeffrey Harmening said logistics costs were up 40% from a year earlier, though the increase was in spot rates, which account for about 7% of the company’s freight.
Cost Plans Meet Freight Pressures
The presentations put supply chains at the center of efforts to protect margins and fund business performance. Procurement, logistics and product complexity are areas where executives see opportunities to reduce costs, but the figures are company forecasts and depend on execution and market conditions.
The pressures are not uniform. General Mills reported higher spot freight rates, while Constellation pointed to trucking supply and demand and commodity prices. Nestlé described a different challenge in China: it said its expanded product range had not generated enough consumer demand and that category share was declining. Those differences matter because cost programs do not by themselves resolve weak demand or shifting input markets.
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Six Companies, Different Supply Moves
The conference brought together executives from Constellation Brands, McCormick, Celsius Holdings, General Mills, Nestlé and Mondelēz International. Their comments covered both planned actions and current operating conditions, rather than a single industry-wide program.
Nestlé said it had increased its number of stock-keeping units in China while pursuing innovation, then removed underperforming products and consolidated distributors in areas with too many. Mondelēz, meanwhile, said cocoa supply and demand had improved after years of volatility. It had shifted some of its product mix toward items less dependent on cocoa during that volatile period.
“We’re building real discipline and muscle in that space.”
— Garth Hankinson, Constellation Brands executive vice president and CFO
Targets Face Market Uncertainty
The company savings figures are forecasts, not completed results. The source material does not specify how much of each target has already been achieved, apart from Constellation’s reported savings since 2023. Constellation also said trucking and commodity pressures could affect margins, while General Mills’ 40% logistics cost increase applies to spot rates, not its entire freight bill.
McCormick’s projected merger savings depend on completion of the Unilever Foods deal, which the companies have said is expected in mid-2027. Nestlé did not provide a timeline for China’s category share to stabilize. Mondelēz described cocoa supply as improved but did not quantify how that change may affect its costs or future product mix.
Savings Milestones Still Ahead
Investors will be able to track the companies’ progress through subsequent earnings updates and operational disclosures. Near-term points include Constellation’s progress toward fiscal 2028 savings and any margin effects from trucking and commodity costs, alongside General Mills’ supply chain revamp toward its 2030 target.
For McCormick, the expected mid-2027 merger closing would precede the three-year period tied to its recurring expense reduction forecast. Celsius’ freight optimization, Nestlé’s China route-to-market changes and Mondelēz’s response to cocoa conditions are ongoing; the executives did not give specific completion dates for those efforts.
Key Questions
Which companies discussed their supply chains?
Constellation Brands, McCormick, Celsius Holdings, General Mills, Nestlé and Mondelēz International discussed supply chain operations at the conference.
What savings targets did the companies cite?
Constellation projected $200 million in savings by fiscal 2028. McCormick forecast $600 million in recurring annual expense reductions over three years after its planned merger with Unilever Foods, including $240 million from procurement. General Mills expects its supply chain revamp to deliver $1 billion in savings by 2030.
What did General Mills say about logistics costs?
CEO Jeffrey Harmening said logistics costs had risen 40% from a year earlier. He specified that the increase was in spot rates, which make up about 7% of General Mills’ freight.
What changes is Nestlé making in China?
Nestlé said it has removed underperforming stock and product options and is consolidating distributors where it has too many. CFO Anna Manz also said category market share was declining, with no set timeline given for a recovery.
Source: rss
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