Consumer Staples

<h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p class="MsoNormal" style="text-align: justify;">From an industry perspective, I have 14+ years of experience in International FMCG companies presenting next F&amp;B Segments:</p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l5 level1 lfo1; tab-stops: list 36.0pt;">Confectionary &amp; Bakery &ndash; Mondelez, Mars</li><li class="MsoNormal" style="mso-list: l5 level1 lfo1; tab-stops: list 36.0pt;">General Food (ketchup, sauces, beanы, peas) &ndash; Kraft Heinz</li><li class="MsoNormal" style="mso-list: l5 level1 lfo1; tab-stops: list 36.0pt;">Meat &amp; Poultry &ndash; Cherkizovo Group</li><li class="MsoNormal" style="mso-list: l5 level1 lfo1; tab-stops: list 36.0pt;">Baby Food &ndash; Kraft Heinz</li><li class="MsoNormal" style="mso-list: l5 level1 lfo1; tab-stops: list 36.0pt;">Alcoholic Beverages (wine, spirits) &ndash; Diageo</li></ul><p class="MsoNormal" style="text-align: justify;">From a professional perspective, I have experience across the whole organization taking key roles in the next parts of the business:</p><p class="MsoNormal" style="text-align: justify;"><strong>Operations </strong>&ndash; Operation Shift Manager &ndash; responsible for Chocolate factory efficiency</p><p class="MsoNormal" style="text-align: justify;"><strong>R&amp;D</strong> &ndash; R&amp;D Innovation Project Manager, building and executing innovation pipeline</p><p class="MsoNormal" style="text-align: justify;"><strong>Supply Chain Development</strong> &ndash; launching new production sites, managing Innovation Pipeline Execution</p><p class="MsoNormal" style="text-align: justify;"><strong>Commercial Execution</strong> (Head of Commercial PMO) &ndash; building long-term Inno Pipeline Internationally</p><p class="MsoNormal" style="text-align: justify;"><strong>Strategy</strong> (Strategy Execution Manager) &ndash; development and Execution Corporate Strategy</p><p class="MsoNormal" style="text-align: justify;"><strong>Strategy</strong> (Head of Strategy PMO and Business Process Management)</p><p class="MsoNormal" style="text-align: justify;"><strong>&nbsp;</strong></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q2. Which F&amp;B segments show the strongest growth potential despite inflationary pressures? And who are the key players in segments along with their market share.</span></h2><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l2 level1 lfo2; tab-stops: list 36.0pt;">The organic food</li><li class="MsoNormal" style="mso-list: l2 level1 lfo2; tab-stops: list 36.0pt;">Halal food</li><li class="MsoNormal" style="mso-list: l2 level1 lfo2; tab-stops: list 36.0pt;">Poultry market</li><li class="MsoNormal" style="mso-list: l2 level1 lfo2; tab-stops: list 36.0pt;">Plant-based and sustainable food</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>&nbsp;</strong></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q3. How advanced is AI/ML integration in the operations of F&amp;B companies, and how is it giving them a competitive edge in the market?</span></h2><p class="MsoNormal" style="text-align: justify;">AI/ML integration in the operations of F&amp;B is very advanced and has different directions and implementation priorities, we can propose the next split:</p><p class="MsoNormal" style="text-align: justify;"><strong>First priority will be: </strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">Genome editing (CAGR 2035 &hellip;&hellip;) &ndash; getting more resistant products</li><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">AI (CAGR 2035&hellip;..) &ndash; will address the next challenges: Food security, ensuring nutrition and compliance, enhancing the consumer experience, and boosting innovations&nbsp;&nbsp;</li><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">IoT (CAGR 2035&hellip;.)- vertical farming management, self-service grocery store (without cash desks)</li><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">Robotization (CAGR 2035&hellip;..) &ndash; from harvesting in the agro cluster to order delivery to the final consumer</li><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">Geoanalytics, Geomarketing (CAGR 2035&hellip;..) &ndash; from field managing (soil changes monitoring) in agro to making decisions about opening new grocery stores in certain locations</li><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">Alternative Proteins (CAGR 2035 &hellip;..)</li><li class="MsoNormal" style="mso-list: l3 level1 lfo3; tab-stops: list 36.0pt;">Vertical Farming (CAGR 2035&hellip;..)</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Second Priority:</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l1 level1 lfo4; tab-stops: list 36.0pt;">Plant-based proteins (soybeans, peas)</li><li class="MsoNormal" style="mso-list: l1 level1 lfo4; tab-stops: list 36.0pt;">Animal cell-based protein</li><li class="MsoNormal" style="mso-list: l1 level1 lfo4; tab-stops: list 36.0pt;">Microorganism-based proteins (algae, mushrooms)&nbsp;</li><li class="MsoNormal" style="mso-list: l1 level1 lfo4; tab-stops: list 36.0pt;">Insects proteins</li><li class="MsoNormal" style="mso-list: l1 level1 lfo4; tab-stops: list 36.0pt;">3D &ndash; printing</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>&nbsp;</strong></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q4. How fragmented is the F&amp;B market, and what consolidation opportunities exist? </span></h2><p class="MsoNormal" style="text-align: justify;">The F&amp;B market is significantly fragmented. There are a lot of companies of different sizes operating in the market. Next activities could support consolidation:</p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l6 level1 lfo5; tab-stops: list 36.0pt;">Communication between market players, including investors, traders, and regulators</li><li class="MsoNormal" style="mso-list: l6 level1 lfo5; tab-stops: list 36.0pt;">Investment and Technologies: common platforms and data systems for getting a seamless experience of exchanging knowledge and resourcing</li><li class="MsoNormal" style="mso-list: l6 level1 lfo5; tab-stops: list 36.0pt;">Strategic shared sourcing to get opportunities to optimize cost</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>&nbsp;</strong></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q5. How vulnerable is the business to changing consumer preferences?</span></h2><p class="MsoNormal" style="text-align: justify;">The F&amp;B market is quite sensitive to changing consumer preferences and not a stable business environment. There are several trends that companies have to address if they want to keep competitive advantage:</p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l4 level1 lfo6; tab-stops: list 36.0pt;">Cost remains the most significant factor for consumers. However, the variety of products has become more important</li><li class="MsoNormal" style="mso-list: l4 level1 lfo6; tab-stops: list 36.0pt;">Product availability and quality will be one of the critical success factors for winning the market, which means omnichannel strategy has to be considered a priority&nbsp;</li><li class="MsoNormal" style="mso-list: l4 level1 lfo6; tab-stops: list 36.0pt;">Sustainability and Health continue to be important for consumers, but without readiness to pay extra money. Smart pricing strategy and streamlining the supply chain and procurement process will help to address this challenge</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>&nbsp;</strong></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q6. What regulatory changes could impact consumer profitability in the F&amp;B sector? </span></h2><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l0 level1 lfo7; tab-stops: list 36.0pt;">Changing nutritional requirements</li><li class="MsoNormal" style="mso-list: l0 level1 lfo7; tab-stops: list 36.0pt;">Food traceability recordkeeping requirements</li><li class="MsoNormal" style="mso-list: l0 level1 lfo7; tab-stops: list 36.0pt;">Food allergen enforcement</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>&nbsp;</strong></p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p class="MsoNormal" style="text-align: justify;">What are your company strategy choices and challenges?</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;"><span class="MsoHyperlink"><strong>Expert Summary</strong></span></p><p class="MsoNormal" style="text-align: justify;">With over 14 years of experience in International FMCG, the SME have worked across key segments including Confectionery &amp; Bakery, General Food, Meat &amp; Poultry, Baby Food, and Alcoholic Beverages. He has held strategic roles in Operations, R&amp;D, Supply Chain Development, Commercial Execution, and Strategy Execution, driving innovation and efficiency across the business.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p>