We gathered a preeminent group of industry experts and leaders to discuss trends across the Fast Moving Consumer Goods (FMCG) industry, including wide variations in asset intensity and returns within and across Consumer subsectors for FMCG companies. Deloitte analysis shows that there is potential for great value creation for CPG companies by adopting asset-lite models. Explore our latest analysis and industry perspectives from the new Deloitte M&A Roundtable series. Visit us here to learn more: https://deloi.tt/3aB3959

1. Unlocking Value by Rethinking Business Models in Fast Moving Consumer Goods (FMCG)
© 2020. For information, contact Deloitte Touche Tohmatsu Limited.
Larry Hitchcock
lhitchcock@deloitte.com
M&A Consumer Leader, Deloitte
If you’d like us to have conversation on how can you
company become asset lite, variabilize cost base and
improve focus on things that matter – please contact:
Consumer Industry M&A Roundtable Series
Predator or Prey? Distressed
assets and perspectives on
opportunistic M&A in
Automotive
January 28 | 1:00PM–2:00PM ET
The Future of Retail:
Finding the Path to
Profitability
December 10| 1:00PM–2:00PM ET
Unlocking Value by
Rethinking Business Models
in Fast Moving Consumer
Goods (FMCG)
December 03 | 1:00PM–2:00PM ET
1
2
3
Pawan Kapoor
pakapoor@deloitte.com
M&A Consumer Leader, Deloitte
Click here to register
Ed Lee
VP, Global Menu Strategy, McDonalds
Chris Moye
CEO, CROSSMARK
Nik Modi
MD, Consumer Products Equity
Analysis, RBC Capital Markets
FMCG companies show wide variations in asset
intensity and returns within and across
Consumer subsectors
Deloitte analysis shows that there is potential
for great value creation for CPG companies by
adopting asset-lite models
Overview
1. (PPE, 3 Yr. Avg.)
Industry Company
Current
Asset
Intensity1
Current
ROA1
Increase
in ROA
Apparel and
Footwear
Apparel & Footwear player 9.7% 87.6% 141%
Apparel & Footwear player 11.4% 82.1% 171%
Apparel & Footwear player 12.3% 65.0% 150%
Footwear player 14.5% 39.0% 114%
Food and
Beverage
Beverage player 27.0% 55.8% 351%
Food & Beverage player 27.4% 46.2% 295%
Food player 14.8% 38.2% 115%
Personal
Products
Personal care player 14.1% 97.0% 271%
Personal care player 13.2% 77.3% 198%
Consumer conglomerate 22.9% 58.2% 301%
Household
Products
Household Products player 14.1% 138.6% 389%
Household Products player 15.8% 80.8% 264%
Panelists

2. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
Larry Hitchcock
lhitchcock@deloitte.com
M&A Consumer Leader, Deloitte
If you’d like us to have conversation on how can you
company become asset lite, variabilize cost base and
improve focus on things that matter – please contact:
Consumer Industry M&A Roundtable Series
Pawan Kapoor
pakapoor@deloitte.com
M&A Consumer Leader, Deloitte
Click here to register
Panelists
Consumer Products companies’ shareholder returns lag their peers in the Technology and Healthcare industries while simultaneously
having higher asset intensity (35%, relative to 4% in Consumer Electronics). In this panel discussion, we explore how Consumer
companies could shift towards asset-lite trends and how this shift to lower asset intensity could bolster returns.
And much more…
• TBD
• TBD
• TBD
Key
Insights
 What are the limitations of large FMCG companies (especially in Food and Beverage) to work with channel partners,
specializing in parts of the value chain where they can create maximum shareholder returns
 Ways in which consumer brand owners compete with scaled retail players such as Amazon, Walmart through Direct
to Consumer (DTC) infrastructure. With ecommerce at ~20% of consumer spend (even during COVID), is it apparent that
Brick & Mortar and Online channels will co-exist in the near- and medium-terms?
 What opportunities emerge (for existing or new players) if consumer companies choose to adopt asset lite models
emerge – for example, how can last mile delivery services provide opportunity to launch Direct to Consumer (DTC) models for
consumer brands
 While Consumer sub-sectors (Apparel, Personal Products, Food & Beverage) exhibited wide variation in asset intensity
and returns; Consumer Electronics companies move to extremely asset-lite models
 In consumer industry, quality risk associated with food safety was a barrier, however, now options exist (scaled TPMs,
channel / merchandizing partners) to reduce asset intensity
 Outsourcing may be cost neutral or negative in some cases, however, it prevents heavy CAPEX investment that is
needed to keep up with the changes /disruptions (such as technology advancements). Companies are operating at low R&D
spend (2-3% of revenue) while spending huge sums on non-core activities
Deloitte
Provocation
Unlocking Value by Rethinking Business Models in Fast Moving Consumer Goods (FMCG)
Ed Lee
VP, Global Menu Strategy, McDonalds
Chris Moye
CEO, CROSSMARK
Nik Modi
MD, Consumer Products Equity
Analysis, RBC Capital Markets
Predator or Prey? Distressed
assets and perspectives on
opportunistic M&A in
Automotive
January 28 | 1:00PM–2:00PM ET
The Future of Retail:
Finding the Path to
Profitability
December 10| 1:00PM–2:00PM ET
Unlocking Value by
Rethinking Business Models
in Fast Moving Consumer
Goods (FMCG)
December 03 | 1:00PM–2:00PM ET
1
2
3