European Consumer Ingredients: The Billion Dollar brand - dead or not, Ingredients still win

Whether billion-dollar brands live or die matters less for Ingredients companies than for their Consumer Staples customers. Ingredients suppliers are largely agnostic to customer type from a margin perspective, allowing them to pivot towards whichever customers, categories and channels are growing fastest. This customer agnosticism is one of several reasons the industry has consistently grown ahead of its underlying end-markets. The data is mixed: Food & Beverage and HPC end-markets are the most critical for our ingredients coverage (representing 90%+ of sales). The data here implies that billion dollar brands are proving to be more resilient than the disruption narrative suggests. Brands have adapted through innovation, premiumisation and increasing competence in digital marketing. However, faster growth is found outside of global consumer companies, with Local & Regional (L&R) customers consistently outgrowing multinationals. Euromonitor shows global manufacturers have steadily lost