FMCG

Oil prices have dropped for the second consecutive day, influenced by concerns over a potential US recession and the impact of tariffs on global growth. Additional factors include increased oil production from OPEC+ nations:

* Brent futures decreased to $69.22 per barrel.
* U.S. West Texas Intermediate crude fell to $65.90 per barrel.

These developments reflect apprehensions about weakened demand and potential market imbalances.

Oil Prices Decline on Recession Fears and Increased Supply

U.S. coffee drinkers should anticipate higher prices due to various factors impacting global supply chains. In February 2025, wholesale arabica coffee prices reached a record high of $4.30 per pound, doubling from last year. Factors contributing to rising coffee prices include adverse weather conditions affecting major coffee producers like Brazil and Vietnam, geopolitical tensions, and shipping delays via vital routes such as the Red Sea and the Suez Canal.

Commodity Prices

Urban Markets Lead FMCG Growth: FMCG giant Hindustan Unilever Limited (HUL) reported a profit decline for Q4, but remains optimistic about the sector's future. Growth is currently fueled by urban markets, modern trade (e.g., supermarkets), e-commerce, and HUL's premium product portfolio. 

Rural Recovery on the Horizon: While urban areas dominate growth, rural demand is slowly recovering quarter-on-quarter for the past year. A normal monsoon and improving economic conditions are expected to further accelerate this trend. However, rural markets haven't yet surpassed urban ones. 

Price Sensitivity Remains: Although demand is improving, HUL expects low single-digit negative price growth in the near term if commodity prices stabilize. The company is focusing on competitive volume-led growth through brand investment and strategic planning. 

Market Share Rebound: After a period of decline due to pricing adjustments, HUL is regaining market share in detergent bars and basic skin cleansing products. This trend is likely due to smaller competitors exiting the market during inflation and returning during deflationary periods. Overall, despite some slight erosion, HUL has maintained its market share advantage over the past two years. 

Digital Focus for Advertising: HUL is shifting advertising focus to digital media, particularly targeted social media and influencer marketing, while reducing reliance on traditional television advertising. A&P (Advertising & Promotion) spending rose 2% YoY in Q1, with a 60% increase in digital spending. 

Overall: HUL acknowledges the challenges in rural markets but sees positive signs of recovery. They are confident about future growth driven by a focus on urban areas, e-commerce, premium products, and strategic advertising investments. 

HUL: Rural Recovery Stuttering, Premium Products Drive Growth 

Over 10,000 Starbucks baristas, represented by Workers United, have launched a strike today across major U.S. cities. The strike, driven by demands for improved wages and working conditions, marks one of the largest coordinated labor actions in the company’s history.

The union has indicated that the walkouts may escalate in the coming days, potentially impacting hundreds of stores nationwide by Christmas Eve—a critical period for Starbucks' holiday sales. Workers have long voiced concerns over insufficient pay and challenging workplace environments, intensifying their call for change during the peak holiday rush.

 Starbucks Workers Strike for Better Pay and Conditions

Crude oil prices remained steady today, reflecting stability in the global energy markets. Brent crude, the international benchmark, was trading at $71.84 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, stood at $68.07 per barrel.

The steadiness in oil prices comes amid balanced market dynamics. On one hand, concerns over global economic slowdown and reduced demand continue to weigh on prices. On the other, supply cuts by OPEC+ have helped stabilize the market, preventing significant declines. Additionally, geopolitical factors, including ongoing discussions about oil supply policies, have kept traders cautious but optimistic about market balance.

Oil Prices Steady

After a record-breaking surge, cocoa prices have experienced a dramatic plunge in recent days. This sudden shift comes as a relief to chocolate manufacturers who were bracing for even higher costs, but raises questions about the long-term stability of the cocoa market.

Earlier this year, cocoa futures reached an all-time high of over $10,000 per metric ton, driven by supply concerns in major cocoa-producing countries like Ivory Coast and Ghana. Poor weather conditions and crop diseases led to a significant decline in production, pushing prices upwards.

However, the market has seen a swift reversal in recent days. Analysts attribute the drop to several factors, including:

* **Speculative Trading:** Some experts believe the initial price surge was fueled by speculative buying, where investors hoped to profit from rising prices. As market conditions changed, these investors may have pulled out, contributing to the price decline.
* **Increased Supply:** While concerns remain about long-term production levels, some early signs suggest a potential increase in the current cocoa harvest. This could ease immediate supply constraints and put downward pressure on prices.

**Impact on Consumers:**

The drop in cocoa prices could lead to a slowdown in the rise of chocolate bar prices, which have been impacted by the recent surge in raw material costs. However, analysts warn that the long-term outlook for chocolate prices remains uncertain.

"While this price dip is a welcome development for consumers in the short term, it's important to remember the underlying supply concerns haven't disappeared," adds an expert. "The future of cocoa prices will depend heavily on weather conditions and crop yields in major producing regions."

The cocoa industry is now watching developments closely, with hopes for a stable and sustainable cocoa market in the years to come.

Corp Crunch

FMCG

Oil Prices Decline on Recession Fears and Increased Supply

Commodity Prices

HUL: Rural Recovery Stuttering, Premium Products Drive Growth

Starbucks Workers Strike for Better Pay and Conditions

Oil Prices Steady

Cocoa Crasher: Prices Plummet After Reaching All-Time Highs

FMCG

Oil Prices Decline on Recession Fears and Increased Supply

Commodity Prices

HUL: Rural Recovery Stuttering, Premium Products Drive Growth

Starbucks Workers Strike for Better Pay and Conditions

Oil Prices Steady

Cocoa Crasher: Prices Plummet After Reaching All-Time Highs

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