The amount of idiocy on this site astounds me. The Mondelez loyalists who can’t accept a glimmer of possibly that DSD might go away. The ex-Kellogg employee’s who want nothing more than Nabisco reps to join their misery while trolling this forum. And then we have the world is coming to an end employees who think every time there’s a typo in a management email they think they’re employment is coming to an end.
Listen - none of you know what is going to happen. The facts are this:
1.) Walmart is the driving force of reduction of DSD for all suppliers including Frito Lay, Pepsi, Coke and even Milk suppliers which has been confirmed coming on their trucks in 2019.
2.) Shareholders/Investors want OP (Operating Profit) and this can be acheived in two ways. The first being reduction in costs (eliminate DSD) or top line growth.
3.) If we are not able to grow top line in North America - DSD will go away. With our largest competitor leaving this sector; if we are unable to capitalize on their lack of in store presence it will be hard to justify to our investors as to why we stay in a DSD model.
This is what I believe; Dirk communicated during his call that he needed more time to do a cost analysis on DSD. Which I believe is true, however, with the lack of top line growth and a stagnant OP (Operating Profit) he will have no choice than to pull the plug on DSD. Walmart will not allow for the gains necessary in top line or OP as they want most suppliers out of the model. When this customer owns 35% of the overall business it’s hard to create those scenarios elsewhere.
My advice to everyone is to do your own research and form your own opinion. Do not go to a forum to get your insight. I’ve never seen so many ill informed people try to argue an outcome of something. There is nothing you can say and there is nothing you can do to change the outcome of the future. Do your own research, form your own opinion and do what is best for you.