...Limited Growth: Domestic organic growth rates for large traditional packaged food companies have been in the negative 2%¡positive 2% range, given changing consumer preferences toward organic and natural products, which have grown in the low double-digit range. The operating environment in the U.S. and Western Europe will continue to be characterized by flat to modestly negative volume growth. Pricing has been the main contributor to flat to low single- digit positive organic growth. Reshaping the Portfolio: Portfolios are being reshaped to drive top- or bottom-line growth. Corporate actions include bolt-on of faster growing natural/organic brands or geographic expansion in emerging markets, such as Kellogg's acquisitions in Africa. Declining categories, lower margins, or noncore brands and assets are being divested. ConAgra's sale of its Private Brands and Lamb Weston spinoffs is an example. Strategic buyers are using accommodative capital markets to buy brands with the goal of revitalization...
