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The Battle to Keep Consumers Means Smaller Packs of Cookies and Chips
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Good morning, CFOs. Consumer goods companies are shrinking packages in a bid to appeal to stretched consumers; Canada is rescinding its digital-services tax to salvage trade discussions with the U.S.; plus, Boeing names its next CFO.
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ILLUSTRATION: THOMAS R. LECHLEITER/WSJ
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Consumer goods companies are enlarging their range of products—by making them smaller.
Diminutive snack and drink sizes are hitting store shelves as brands try to keep stretched consumers buying with lower-price options. PepsiCo now sells Lay’s potato chips in half a dozen different-sized bags, costing from around 50 cents to roughly $5. Campbell’s now markets teensy packages of Pepperidge Farm cookies and Goldfish crackers. And Mondelez International has six different Milka chocolate bar sizes with prices from under $1 to $6.
Food, beverage and consumer-product companies are hoping that a wider range of shrunken size options can boost overall sales volumes, which have been pressured in recent quarters. Smaller-size offerings also tend to have higher profit margins.
“Consumers are going into small pack sizes to optimize their absolute budget,” said Mondelez Finance Chief Luca Zaramella. “The $3, $4 as opposed to the $6, $7, particularly in snacks, are becoming a clear center of gravity.”
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How Generative AI Can Redefine Manufacturing
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Generative AI isn’t just a technological advancement—it’s a paradigm shift that could redefine the manufacturing landscape. Here are three promising capabilities for sector leaders to consider. Read More
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📆 Earnings
📈 Economic Indicators
The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey.
The ISM releases its Manufacturing Purchasing Managers’ Index for June.
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What Else Matters to CFOs
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In a bid to appease President Trump and restart trade talks, Canada is rescinding a 3% tax on companies providing digital services. PHOTO: SHAWN THEW/EPA/SHUTTERSTOCK
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Canada said it would rescind a digital-services tax in a bid to salvage trade discussions with the U.S. after President Trump paused talks on Friday.
Canada’s finance department was set to collect billions of dollars from U.S. tech companies starting Monday, when payments were due under a digital-services tax that Canada’s Liberal government implemented last year, under former Prime Minister Justin Trudeau.
On Sunday, the government said it would pause collections and introduce legislation in Parliament to rescind the tax, “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
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A historic and tumultuous quarter ended with U.S. stocks at records and many investors betting the ride isn’t over yet.
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The Trump administration isn’t giving up its legal fight to enforce punishing sanctions against law firms following a string of resounding defeats in court.
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As parts of the U.S. swelter under punishing temperatures, companies are faced with rising fatigue among workers who are exposed to the high heat, as well as infrastructure stresses.
📰 Other headlines
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$13.33
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The estimated retail price for 2 pounds of ground beef, according to a survey published by the American Farm Bureau Federation. It is the highest price recorded by the survey since it began in 2013 and signals that Americans’ July Fourth burgers will cost more than ever.
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Boeing, the Arlington, Va.-based jet maker, said Brian West, its chief financial officer, would depart the role later this summer and be succeeded by the former financial chief of Lockheed Martin. West is set to become a senior adviser to Chief Executive Kelly Ortberg as the company brings in Jesus “Jay” Malave as executive vice president and its next chief financial officer on Aug.
15, the company said. Malave served as CFO for Lockheed Martin from February 2022 until last April. Before that, he was the CFO of L3Harris. West has been Boeing’s financial chief for the last four years.
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Content From Our Sponsor: DELOITTE
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Finance’s Role in Realizing ERP Value
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Finance leaders have opportunities to further transform their organizations following technology implementations and to fully realize the value of new systems. Read more here.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.
You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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