P&G, Mondelez, L’Oreal, Hershey: CPGs Strategize Around Shifting Consumer Behavior
CPGs are grappling with a difficult landscape in which consumers crave value, but tariffs and inflation are adding pressure on manufacturers to raise prices.
Though one CPG reminds the industry to focus on another consumer desire as well: comfort.
In their latest earnings conversations, Procter & Gamble, Mondelez, L’Oreal and The Hershey Co. share details of consumer sentiment and how they’re forming strategies around shifting behaviors.
Procter & Gamble
P&G is responding to heightened consumer anxiety — driven by inflation, tariffs, interest rates and geopolitical uncertainty — by doubling down on its integrated growth strategy and restructuring to better compete in a costly environment.
The two-year restructuring will be focused on portfolio simplification, supply chain optimization and organizational redesign. This includes exiting certain categories and markets, streamlining product lines and cutting up to 7,000 non-manufacturing roles.
Read more: Shailesh Jejurikar will lead the restructure as the company’s new CEO
“These portfolio moves enable us to make related investments — interventions in our supply chain; rightsizing and right-locating production to drive efficiencies; faster innovation; cost reduction; and even more reliable and resilient supply,” said president and CEO Jon R. Moeller.
Additionally, the company will rethink its organizational approach, making roles broader and teams smaller while enabling more digitization and automation. The goal is to eliminate a siloed approach and broaden employee skills to develop improved decision-making.
Mondelez International
Mondelez’s North America consumers are dealing with anxiety around personal finances, job expectations and inflation, according to CEO Dirk Van de Put. This is leading shoppers to focus on the essentials and smaller baskets or value formats such as multi-packs.
The company is having to navigate an adjusted price strategy to make up for rising costs in categories such as cocoa. Chocolate prices have increased 30% to 50% over the past two years, and the company does not anticipate significant price reductions ahead.
“What we see is consumers staying in the [chocolate] category, but they're diminishing their frequency and they're diminishing the quantity bought,” said Van de Put.
In response, Mondelez said it is rolling out selective, moderate price increases across its portfolio rather than targeting only cocoa-intensive items, while protecting key price points and pack sizes.
L’Oreal
L’Oréal is seeing a rebound in consumer demand after a brief slowdown caused by uncertainty around new tariff policies.
CEO Nicolas Hieronimus said that consumers had paused spending in anticipation of changes, but are now feeling more reassured. Categories such as haircare and fragrance saw notable recoveries, while there was a gradual improvement in makeup.
Online sales are leading this resurgence, outperforming brick-and-mortar.
Hieronimus said the company is looking at trade discussions between the U.S. and countries such as Mexico, Canada and Brazil before making any production shifts. It is also exploring longer-term operational changes, particularly in fragrances, to offset possible tariff impacts beyond 2026.
“So there are several mitigations being studied, and we'll see when they are done,” said Hieronimus. “And by the way, I'm not giving up on trying to convince the European authorities to negotiate some exemptions for cosmetics.”
The Hershey Co.
The Hershey Co. is prepping for a seasonal burst of activity in the next few months.
Social media trends around “summer-ween” point to a strong Halloween season for 2025, according to president and CEO Michele Buck.
Additionally, while consumers are reeling from a volatile environment, the company has seen a correlation between shoppers’ mindset and a growth tick-up in its U.S. candy, mint and gum category.
“We do know that our products provide emotional well-being and comfort during stressful times,” said Buck.
