CONSUMER INGREDIENTS : CEO Conference feedback: So far, so good

研报英文原文证据摘录

CONSUMER INGREDIENTS : CEO Conference feedback: So far, so good

AI: Opportunity vs. threat for the sector?

Question

How is / how will AI impact consumer purchase decisions and what (if anything) does it

mean for the wider industry? How are you using AI in your operations today? To what

extent could AI enable increased competition (e.g. from new entrants or customer

insourcing)?

Conclusion

All management teams highlighted the use of AI as an opportunity for existing players

within the industry. AI is viewed as a tool which can aid rather than replace the work of

perfumers and flavourists. With increased efficiency, Ingredients companies are able to

respond to briefs faster and take on more briefs. Increased automation (e.g. for sampling

and production) will also enable the industry to serve smaller sized customers.

Manufacturing efficiency savings could be in the range of 10-20% over time. AI can also

help improve efficiency across the supply chain e.g. being used for managing warehouse

inventory and for predictive / preventative maintenance.

There were many investor questions on the risk of disruption from new AI enabled

entrants in the F&F industry, particularly on the fragrance side. Management teams

argued that AI will raise rather than lower the barriers to entry in the industry. Incumbent

players benefit from access to vast amounts of data which is not possible to replicate by

start-ups or using publicly available data. Incumbents also benefit from the combination

of AI tools plus proprietary molecules, technologies and supply chain expertise.

At an end consumer level, Kerry noted that consumers using agentic AI for shopping will

lead to increased scrutiny and transparency of ingredient lists and a further shift towards

clean label reformulation.

Company views