# Global food makers, retailers remain in crisis mode
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Retailers and Consumer Goods: Adapting to Crisis Mode
Meta Description: Top industry executives at a conference in Dublin predict unpredictable consumer behaviour, with inflation, climate change, and supply chain issues plaguing
URL: https://financedigest.com/global-food-makers-retailers-remain-in-crisis-modehtml

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By Padraic Halpin, Conor Humphries and Richa Naidu

DUBLIN/LONDON (Reuters) – Global retailers and consumer goods makers remain in crisis mode and expect consumer behavior to remain unpredictable for the foreseeable future, top industry executives told a conference in Dublin this week.

Since the start of 2020, the STOXX Europe 600 Retail EUR Price Index has lost more than a fifth of its value. The equivalent index for [European food](https://www.financedigest.com/european-food-delivery-shapes-up-with-getirs-gorillas-buy.html "European food delivery shapes up with Getir’s Gorillas buy") and beverage makers <.SX3P) is down more than 4%.

In that time, political tensions have risen; climate change has entered “another stage of crisis”; the macro-environment has changed dramatically; and the Covid-19 pandemic is still ongoing, Carrefour Chief Executive Alexandre Bompard said at the Consumer Goods Forum’s [Global Summit](https://www.financedigest.com/u-n-summit-aims-for-global-pact-to-protect-nature.html "U.N. summit aims for global pact to protect nature") on Tuesday.

For us as CEOs, it means that [crisis is the new normal,”](https://www.financedigest.com/unified-communications-a-lifeline-in-crisis-and-a-lifestyle-in-the-new-normal.html "Unified communications, a lifeline in crisis and a lifestyle in the new normal") Bompard said. What we have been used to in the last decades – low inflation, [international trade](https://www.financedigest.com/managing-trade-credit-and-insurance-in-the-context-of-international-commerce-expansion.html "Managing trade credit and insurance in the context of international commerce expansion ") – it’s over. It’s not the new world.”

A desperate [supply chain](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") crunch has also sent shudders through the manufacturing and consumer goods industries over the past year, with shipments trapped in log jams due to factors including pandemic lockdowns, panic buying and sanctions levied on Russia for its invasion of Ukraine that began in February.

Logistics giant Maersk, which transports goods for companies like Walmart and Nike said the [cost of shipping](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar") cargo is up 25-30% due to an array of inflationary pressures that are “unlikely to abate in the short term.

Consumer goods companies should get used to the idea of “crisis being more or less the new normal” as they [fight soaring inflation](https://www.financedigest.com/inflation-fighting-central-bankers-air-climate-role-doubts.html "Inflation fighting central bankers air climate role doubts"), climate change and a global food crisis, Unilever chief Alan Jope said on Tuesday.

“The mother of all crises is of course the climate emergency,” he said.

The [problems have contributed to mounting inflation](https://www.financedigest.com/uk-has-bigger-inflation-problem-than-us-or-euro-zone-boes-mann.html "UK has bigger inflation problem than US or euro zone – BoE’s Mann").

Inflation is a dynamic, particularly in Europe, that we need to start to get used to,” Ayla Ziz, Danone’s [global head](https://www.financedigest.com/new-york-catches-up-with-london-to-head-citys-global-centres-survey.html "New York catches up with London to head City’s global centres survey") of sales, told Reuters ahead of the conference.

Tobias Wasmuht, Chief Executive of SPAR International, said the supermarket chain owner is trying to mitigate the impact by cutting costs and becoming more efficient but warned that [rising](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise") ingredient and raw material costs will be passed on to shoppers.

[(Reporting by Padraic Halpin and Conor Humphries in Dublin and Richa Naidu in London; Editing by Matt Scuffham, Alexandra Hudson)](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps")


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