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Executives from Constellation Brands, McCormick, Celsius, General Mills, Nestlé and Mondelēz discussed supply chain tactics at the Barclays Global Consumer Staples Conference in early September. Their plans range from procurement savings and freight changes to AI forecasting and product reductions, while inflation, logistics costs and market conditions remain challenges.
Executives from six food and beverage companies outlined supply chain changes and cost targets at the Barclays Global Consumer Staples Conference in early September, describing plans that include lower procurement and freight costs, wider use of artificial intelligence, and fewer products in China. The remarks show how the companies are seeking operating savings while contending with inflation, uneven transportation costs and market-specific challenges.
Constellation Brands CFO Garth Hankinson said the company remains on track for $200 million in projected savings by fiscal 2028, which begins March 1, 2027. The beer, wine and spirits maker has generated more than $600 million in procurement, logistics and operations savings since 2023, Hankinson said. He also warned that inflation and a supply-demand imbalance in trucking are expected to weigh on margins in the second half of the current fiscal year.
McCormick & Co. expects procurement savings to make up $240 million of the $600 million in recurring annual expense reductions it forecasts for the three years after its planned $44.8 billion merger with Unilever’s food business is completed. CFO Marcos Gabriel said the savings would come from ingredients and packaging. The companies have indicated the deal is expected to close in mid-2027; Gabriel cited overlap among major suppliers and inefficiencies in smaller purchases as areas to address.
Celsius Holdings said it integrated 2025 acquisitions Alani Nu and Rockstar Energy into its supply chain during the first half of 2026. CFO Jarrod Langhans said the next task is reducing freight costs, including by improving rate consistency and limiting long, cross-country routes. General Mills is applying AI to demand forecasting, logistics planning and manufacturing optimization as part of a supply chain revamp it expects to generate $1 billion in savings by 2030. CEO Jeffrey Harmening said logistics costs were up 40% from a year earlier, while noting the increase was in spot rates, which account for about 7% of the company’s freight.
Cost Plans Face Uneven Pressures
The executives’ comments offer investors and customers a view of how large food and beverage businesses are responding to costs they can influence, such as purchasing, distribution and product complexity. The targets are not all directly comparable: some cover procurement, others wider operating expenses, and several depend on transactions or multi-year programs that have not yet run their course.
For consumers, these efforts could affect how companies manage production and product availability, but the conference remarks do not establish that savings will lead to lower retail prices. The pressure runs in both directions. Constellation cited trucking and commodity inflation, while General Mills reported higher spot freight rates. Those costs could offset some expected efficiencies and influence margins.
Product and market choices are also part of supply chain management. Nestlé is removing underperforming stock and reducing distributor overlap in China after expanding its product range, while Mondelēz said cocoa supply conditions have improved after a period of volatility. The statements describe company assessments and plans, not independent forecasts of future prices or performance.
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Six Companies, Different Levers
The remarks came during the Barclays Global Consumer Staples Conference, where executives updated investors on business operations. Food Dive reported the comments; the figures and outlooks in this article are attributed to the executives and companies cited in that report.
The six companies discussed different parts of their supply chains. Constellation emphasized procurement, logistics and operations savings. McCormick’s projected procurement reductions are tied to a proposed merger with Unilever Foods. Celsius is working to manage freight across its portfolio following acquisitions. General Mills linked its longer-term savings program to process changes and technology, including AI.
Nestlé’s remarks focused on its China business, where the company said an expanding range of products had left it with too many options and distributors in some areas. Mondelēz addressed cocoa sourcing: COO Luca Zaramella said the market had moved into oversupply after earlier years of volatility and a deficit that had depleted stocks. These are company-specific developments, rather than evidence of a single industry-wide supply chain trend.
“We’re building real discipline and muscle in that space.”
— Garth Hankinson, Constellation Brands executive vice president and CFO
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Savings and Market Outlooks
The conference comments do not establish whether each company will meet its targets. Constellation’s $200 million figure is a projection for fiscal 2028, while McCormick’s procurement savings depend on completion of its proposed merger with Unilever Foods, currently expected in mid-2027 according to the companies’ earlier statements. The timing and realized value of those reductions could change.
It is also unclear how long current cost pressures will last. Constellation cited expected margin effects from inflation and trucking in the second half of its fiscal year, and General Mills’ reported 40% rise applies specifically to spot freight rates, not all of its freight costs. Mondelēz’s view of cocoa supply reflects an executive’s market assessment; the conference report does not provide an independent supply forecast. Nestlé did not give a timetable or quantified target for its China product and distributor changes.
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Targets Await Company Updates
Investors will be looking for updates in the companies’ financial reports and later presentations on savings, freight costs and progress against operating plans. For McCormick, a major milestone is the planned closing of its merger with Unilever Foods, which the companies have said is expected in mid-2027. Constellation’s cited savings target runs through fiscal 2028, and General Mills’ supply chain program extends to 2030.
Further updates may clarify whether Celsius secures more consistent freight rates across its brands, whether Nestlé’s changes in China help stabilize category share, and whether Mondelēz’s cocoa outlook holds. The conference remarks do not specify dates for those assessments. Until companies report results, the savings remain targets or plans rather than confirmed outcomes.
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Key Questions
Which companies discussed supply chain plans?
Constellation Brands, McCormick & Co., Celsius Holdings, General Mills, Nestlé and Mondelēz International were represented in the conference remarks.
What savings targets did the companies cite?
Constellation said it is on track for $200 million in savings by fiscal 2028. McCormick forecast $600 million in recurring annual expense reductions over three years after its planned merger with Unilever Foods, including $240 million from procurement. General Mills expects its supply chain revamp to deliver $1 billion in savings by 2030.
What is General Mills doing with AI?
COO Dana McNabb said General Mills is using AI for demand forecasting, logistics planning and manufacturing optimization as part of its supply chain work.
What supply chain changes is Nestlé making in China?
Nestlé CFO Anna Manz said the company is removing underperforming stock and products and consolidating distributors in areas where it has too many. She said the company needs time to move from category share losses toward holding share.
Are the projected savings already confirmed?
No. The figures are company targets or forecasts discussed by executives. The remarks do not confirm that the savings have been fully achieved.
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