4. A"combina*on"of"industry2wide"issues"and"internal"
factors"are"impac*ng"businesses’"performance…
A challenging industry landscape Some of the most pressing issues in CEOs’ mind
! Long-term market price deflation
increases P&L volatility and
erodes profit margins
! Highly promoted market with
increased shopper promiscuity
and intensified retail price war
! High proliferation of brands and
commoditisation of the lager
category is eroding brand equity
! Changing consumer taste and a
growing shopper attitude
towards experimentation among
younger drinkers further diminish
loyalty to traditional lager brands
! Difficulty in objectively assessing the
impact of internal forces and team
dynamics on performance
! Challenge in connecting detailed
performance metrics with the full P&L
! Focus on creating strong innovation
pipelines and brand building activities
that keep the business from getting
into trading wars that further deflates
the market
! How to inject brand value back into the
portfolio through effective new
launches and an holistic brand portfolio
strategy
! Need to rebalance trade and above the
line investment to focus on base sales
growth through the role of the shopper
and consumer