We expect the deflationary ‘beast’ to be unleashed in the
2Q09 results and the Consumer Reset to have a meaningful
impact. We move to mid-cycle multiples but would caution
against too much optimism for a recovery in 2H09.
Sector update
Western Europe
14 July 2009
Consumer Reset
Deflationary pressure is here to stay
Ch
Food producers & processors
Overview of recommendations
Rec Target price
Old New Old New
Cadbury Sell Hold 480p 525p
Danone Buy Buy