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Executives from Constellation Brands, McCormick, Celsius, General Mills, Nestlé and Mondelēz discussed supply chain plans at the Barclays Global Consumer Staples Conference in early September. Their approaches include cost cuts, freight adjustments, AI use, fewer product options in China and a changed outlook for cocoa supply; timelines and expected savings vary by company.
Executives from six food and beverage companies described plans to reduce costs and adjust supply chains at the Barclays Global Consumer Staples Conference in early September, including savings targets at Constellation Brands and McCormick, freight changes at Celsius, and inventory and forecasting initiatives elsewhere. The remarks give investors a view of how companies are responding to operating costs and changing market conditions, though some targets depend on future milestones and economic conditions.
Constellation Brands is on track to deliver $200 million in projected savings by fiscal 2028, which begins March 1, 2027, Chief Financial Officer Garth Hankinson said. He said the company has generated more than $600 million in procurement, logistics and operations savings since 2023. He also cited trucking supply and demand and higher commodity prices as potential pressures on margins in the second half of the current fiscal year.
McCormick expects procurement reductions to contribute $240 million in recurring annual savings as part of a forecast $600 million in annual expense reductions over the three years after its planned merger with Unilever Foods closes. The companies have said they expect the deal to close in mid-2027. McCormick CFO Marcos Gabriel said the companies could use their scale to negotiate purchases and standardize ingredients, materials and product requirements.
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 the next focus is freight costs per case: rates for those brands are higher than for Celsius’ namesake drink, and the company is seeking more consistent rates and less long-distance transportation. General Mills is applying AI to demand forecasting, logistics planning and manufacturing as part of a supply chain revamp it says could generate $1 billion in savings by 2030. CEO Jeffrey Harmening said logistics costs were up 40% from a year earlier, while specifying that the rise was in spot rates, which make up about 7% of the company’s freight.
Nestlé CFO Anna Manz said the company is removing underperforming stock and product options, known as SKUs, in China and consolidating distributors where it has too many. Mondelēz COO Luca Zaramella said cocoa supply and demand had improved after years of volatility, with production now more than sufficient to cover the previous deficit, according to his assessment.
Cost Plans Meet Market Pressures
The comments show that supply chain work is tied to both company savings targets and near-term operating pressures. Constellation cited trucking and commodity costs that could weigh on margins even as it pursues savings. General Mills reported a sharp increase in spot freight costs, while Celsius is trying to lower differences in freight rates across brands it has brought together.
For investors and customers, these initiatives may shape operating costs, product availability and the pace of integration after acquisitions. The figures are company forecasts or executive reports made at an investor conference; the source material does not establish that projected savings have already been achieved.
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Six Different Supply Chain Levers
The conference brought together leaders from Constellation Brands, McCormick, Celsius Holdings, General Mills, Nestlé and Mondelēz International. Their remarks covered different parts of the supply chain: purchasing, transportation, production planning, product assortment and commodity sourcing.
Several plans are connected to longer timelines. Constellation’s $200 million target is for fiscal 2028. McCormick’s savings estimate depends on completion of its proposed $44.8 billion merger with Unilever Foods, which the companies have said is expected in mid-2027. General Mills has linked its $1 billion target to supply chain changes through 2030.
“We’re building real discipline and muscle in that space.”
— Garth Hankinson, Constellation Brands executive vice president and CFO
Targets Face Open Questions
The conference remarks do not establish whether the companies will meet their projected savings or how much of the reported cost changes will persist. Constellation said trucking and commodity pressures may affect margins in the second half of its fiscal year, but did not quantify their full impact in the source material. General Mills’ reported 40% increase applies to spot rates, not all freight costs.
McCormick’s procurement savings depend on the proposed merger closing and integration work proceeding as planned. In China, Manz said Nestlé’s category market share was declining and that returning to sustained share gains would take time; the source does not provide a recovery timetable. Mondelēz’s cocoa outlook is an executive assessment, and no specific future price or supply forecast was provided.
Savings Milestones Ahead
Investors will be able to track the companies’ progress through their earnings updates and other disclosures. Constellation’s stated savings milestone is fiscal 2028, while General Mills’ supply chain savings target runs through 2030. McCormick’s forecast depends on the proposed Unilever Foods merger, which the companies have indicated could close in mid-2027.
Further updates may clarify whether freight rates, procurement costs and product assortment changes are delivering the expected results, and whether Nestlé’s position in China improves. The conference comments provide plans and assessments, not final outcomes.
Key Questions
Which companies discussed supply chain plans?
Constellation Brands, McCormick, Celsius Holdings, General Mills, Nestlé and Mondelēz International had executives speak at the Barclays Global Consumer Staples Conference.
How much savings does Constellation expect?
Constellation is on track, according to CFO Garth Hankinson, to reach $200 million in projected savings by fiscal 2028. He also said the company had generated more than $600 million in procurement, logistics and operations savings since 2023.
What savings does McCormick expect from its proposed merger?
McCormick forecasts $600 million in recurring annual expense reductions over the three years after the proposed Unilever Foods merger closes. It expects $240 million of that total to come from procurement, subject to the deal closing and the companies carrying out the planned changes.
What is General Mills doing with AI?
General Mills COO Dana McNabb said the company is using AI for demand forecasting, logistics planning and manufacturing optimization as part of a supply chain revamp linked to a stated $1 billion savings target by 2030.
What remains uncertain about the plans?
The companies have described targets and current initiatives, but their eventual results remain to be seen. The source material does not quantify the full effect of Constellation’s inflation pressures, provide a timetable for Nestlé’s China recovery, or confirm the merger-dependent savings at McCormick.
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