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Perspectives

CAGNY 2019 roundup

Analysis of the 48th annual CAGNY conference

In February, some of the most preeminent consumer packaged goods (CPG) companies gathered for the 48th annual Consumer Analyst Group of New York (CAGNY) Conference. In keeping with our tradition of many years, we listened, captured data on hot industry topics, and now offer a comparative year-over-year summary of CAGNY 2019.

Format and key themes at the 2019 CAGNY conference

For more than 50 years, the Consumer Analyst Group of New York (CAGNY) has provided forums for investors, analysts, corporate management teams, and the media to share information, highlighted by the annual CAGNY Conference in Boca Raton, FL.

CAGNY helps cultivate dialogue among investors and CPG industry executives. In today’s information-rich world, CAGNY furnishes platform-neutral access to management teams of more than 30 global consumer companies and nearly 1,000 sell-side and buy-side members annually.

Deloitte has attended CAGNY's annual conference in order to provide an informative view of the state of CPG and what’s on the horizon.

Five key themes dominated the discussions and presentations

  • Product and service innovation
  • Operational excellence and efficiency
  • Digitization of the path to purchase and the last mile
  • Business portfolio optimization
  • Health and wellness, social responsibility, and sustainability

Trends in topics mentioned at CAGNY 2019

Each year, Deloitte collects data on topics mentioned by speakers from leading CPG companies, comparing the percentage of companies that mentioned each topic in the previous year versus the current year.

Four strategies gaining executive attention

Executives at the CAGNY Conference are paying close attention to four strategies:

New innovation model: Every company talked about core innovation, and many mentioned more focus on adjacency and transformation innovation. CPG companies are looking at moving away from Stage-Gate to design thinking, agility, and people-centric innovation methods, and integration of product and technology to develop new solutions.

Next-generation cost improvement: 85 percent of companies talked about next-generation cost improvement—but less zero-based budgeting (ZBB) and more operational restructuring and focus on the cost of goods sold (COGS). Executives are also focused on restructuring and centralization of global procurement and supply chains, supplier and SKU rationalization, and product redesign.

The race for consumer intimacy: The race for consumer intimacy was part of the conversation for 75 percent of companies. The move to mass, one-to-one brand building fueled by big data and analytics is also top of mind, particularly with 40-50 percent of media spend now on digital. Many CPG companies are also moving away from external agencies to internal media content development.

Digitizing the core: Digitizing the core is on the minds of executives at 35 percent of companies, as well as building and scaling next-generation capabilities through digital:

  • B2B: E-sourcing and supplier management
  • B2C: Digital hubs and data platforms
  • Core: Cloud-based ERP systems
  • Analytics: Artificial intelligence

As usual, the annual CAGNY conference was a memorable and unique opportunity for CPG companies to gather and talk about what’s going on in the market today and key strategies for the coming year. We look forward to seeing you at the next CAGNY gathering.

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