Coca-Cola, PepsiCo and Procter & Gamble are facing the offshore crisis with record inventories

It is not an urgent problem at the moment, although it affects to a greater or lesser extent almost all companies in the world.And consumption There is concern that if it extends over time, it could end up creating a gap, as well as costs – by having to use transport routes.Costs longer, and therefore more expensive, supplies.

However, the giants of mass consumption They are facing the Red Sea crisis with their stocks at record levelsWhich partly protects them from its short-term impact.

Coca-Cola, PepsiCo, Mondelez, Kraft Heinz and Heineken In their most recent public balance sheets, they report a historic inventory position, at levels in some cases that are double what they were in 2019, while in the case of… Procter & Gamble, Nestle, and Unilever Its numbers show a slight decline compared to the previous year, although the numbers are also very high compared to its historical series.

The reasons are basically three. The first is the corporate decision Strengthening its stocks in the face of geopolitical tensions – The war between Ukraine and Russia, or between Israel and Hamas – and disruptions in supply chains that have hurt activity in recent years. In addition, there are two other factors that are directly related to inflation.

On the one hand, it caused Negative or constant sales levels in volume In 2022 and 2023, which explains the high level of stocks. Moreover, higher prices mean that Stocks listed on balance sheets also have a higher value.

“Businesses are more protected and prepared than in the past because… They have learned to be resilient in the face of a number of incidents that have occurred in the supply chain From the pandemic, to the closure of the Suez Canal, the war in Ukraine, or now, the Red Sea crisis. “No one talks about the drought in the Panama Canal, which delayed supply chains for months, or about the war in Ukraine, which had a noticeable impact and continues to have a noticeable impact,” explains Javier Jasso, head of the transportation division at Ecoc. Large Consumers Association.

Fire stocks

coca cola It ended September with an inventory level of $4,252 million, 15% more than the previous year and 30% more than in 2019. It is not an isolated case. PepsiCo (Pepsi or Lays) Its budgets amounted to $5,558 million, an increase of 11%. This number has not stopped rising in the past five years, as the total increase reached 51% in that period.

Mondelez (Oreo or Milka) and Kraft Heinz (Philadelphia, Heinz or Oscar Mayer) Provide similar examples. Their balance sheets show record inventory numbers, protecting companies from problems in their supply chains. Mondelez shares rose by 39% compared to 2019, while Kraft Heinz shares rose by 42% from four years ago.

Even those companies that reduced their inventories in the past year are at very high levels compared to their historical series. Procter & Gamble (Ariel, Dodot, or Brown) In September, it was 30% lower than in the previous year, but the same percentage was higher compared to its 2019 situation.

Nestle It also reduced its inventories by 1.2% in the last fiscal year — from June 2022 to June 2023, the most recent data available — but offered levels 46% higher than those before the pandemic.

Unilever (Magnum, Knorr, or Mimosine) It follows the same trend as Nestlé – also with data from 2023 -, while Heineken It is one of the other companies analyzed whose stock numbers have increased the most in recent years. The €4,370 million it raised on its balance sheet in mid-2023 – the latest reported data – represents 42% more than four years ago.

And so are the Spanish

Spanish consumer companies in general also operate with high levels of equity according to data published by companies listed in this sector. Vescovan It warned in its results for the first nine months of the year that “adaptation initiatives undertaken by packaging customers are causing worse than expected market behavior,” which caused “a decline in sales volume” and helped the company end September with inventory of 446.38 million, 16% more. than the previous year and 56% more than in 2019.

In case Ebro FoodsWith data for the first half of 2023, the comparison is not homogeneous due to “the consolidation resulting from the war in Ukraine during the first half of 2022.” However, if the focus is broadened, its stocks of 884.9 million in the middle of last year – the latest data available – represent a 44% increase compared to the same period before Covid.

Delio On the same date, its inventory reached 173 million, 7.6% higher than the previous year, but 86% higher than its level for the same period in 2011. The shortage of raw materials was compensated for by lower sales volumes due to higher oil prices.

finally, Coca-Cola Europacific Partners It had an inventory of 1,714 million in June last year – the latest data -, up 21% from the previous year and 81% compared to June 2019.