European Consumer Staples: Previewing Barclays Consumer Health Conference

Research evidence excerpt

European Consumer Staples: Previewing Barclays Consumer Health Conference

Barclays | European Consumer Staples

This should then move into a broader debate around how to build sustainable platforms in a

fast-moving wellness space, particularly as categories such as VMS continue to evolve towards

more premium, science-led and habit-forming propositions.

We will also hear from Chad Janis, founder of Grüns, to bring this to life. Grüns, a fast-

growing US greens supplement brand that Unilever recently acquired. The business has been

built around a gummy format and strong consumer engagement This should provide a

complementary perspective on what it takes to scale emerging brands and how these models

evolve when integrated into a larger platform. The session will also focus on Grun's competitive

moat and how it differentiates vs other competitors.

The Future of Consumer Health: Growing Pains -

Investor's Questions and Feedbacks

Following our recent deep dives on Consumer Health and engaging with investors, below we

outline some of the main investor feedback we have received since publishing the deep dive

research.

•• Broad Agreement that Consumer Health has structurally attractive gross margins

around 60%. However there is a debate around the direction of industry gross margins from

here especially if the industry is serious about unlocking the emerging market opportunity

which will require investment to drive loyalty, consumer habit and repeat purchase.

•• The megatrends are powerful in Consumer Health. The trend from treatment to

prevention, ageing populations and pressure on healthcare budgets are durable and long

lasting but there is a discussion on what constitutes good/value add Consumer Health and

bad/commoditised Consumer Health categories.