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The Global Pasta Market : What are the strategic directions the global pasta industry must pursue?. Nicola Ghelfi General Manager Business Unit Pasta Meal – Barilla. The Problem of the Pasta Industry. Industry Profit Pool decline expected to accelerate even further due to:
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The Global Pasta Market : What are the strategic directions the global pasta industry must pursue? Nicola Ghelfi General Manager Business Unit Pasta Meal – Barilla
The Problem of the Pasta Industry Industry Profit Pool decline expected to accelerate even further due to: • Flat consumptions in key markets • Trade pressure on retail shelf price and • unit net sales • Durum wheat price and other costs • increase
The Challenge of the Demand and Strategic Direction #1 • Atkins and anti-carbs diet viruses • Pathological Obesity • Communication on behalf of pasta not • enough to support demand Strategic Direction #1 Strive for consumption increase via innovative communication of scientific evidences
The Challenge of Innovation and Strategic Direction #2 • Avoid product introductions destroying • Pasta category quality perception • Health & Wellness needs and aspirations • not fulfilled yet Strategic Direction #2 Preserve/increase quality and respond to Health&Wellness needs at quality parity
The Challenge of Branding and Strategic Direction #3 • Pasta commoditization • Brands are less and less differentiated • Intanglibles are less and less effective Strategic Direction #3 Progressively increase investment behind Brands and focus on tangibles
The Challenge of New Markets and Strategic Direction #4 • Pasta consumptions in current markets • expected to grow by +0,5% 05-25 CAGR • China and India, despite of cultural barriers, • could enable Asia to get +1,200,000 tons by • 2025 Strategic Direction #4 Develop pasta demand in China and India via new entry strategies
The Strategic Agenda for Pasta Industry Future • Strive for consumption increase via innovative communication of scientific evidences • Preserve/increase quality and respond to Health&Wellness needs at quality parity • Progressively increase investment behind Brands and focus on tangibles • Develop pasta demand in China and India via new entry strategies • Invest on the future AND do well in the short term • Increase Value AND Achieve Efficiencies
Magna pars est profectus velle proficereGran parte del progresso sta nella volontà di progredire