In recent months, consumer products manufacturers have been assailed by a range of external pressures that call out for decisive action. On the one hand, companies require strategies to navigate a climate characterized by currency volatility and economic uncertainty. On the other hand, they need informed plans to meet rising consumer expectations for greater corporate responsibility.

Short-term responses to market volatility
This edition of Food for thought highlights a series of short-term solutions consumer products manufacturers can use to address the recent currency crunch. It outlines specific actions companies can take to respond to market volatility over the short term, so a strong foundation is laid to pursue longer-term strategic priorities. Yet, regardless of the response plans companies adopt, one overriding message remains: to succeed into the future, consumer products manufacturers must remain flexible in the face of change. By cultivating institutional flexibility, companies can position themselves to manage not only today’s currency volatility, but future market challenges as well.

In pursuit of corporate responsibility 
Consumers today increasingly expect the organizations they deal with to adopt more sustainable and responsible business practices than ever before. As these expectations snowball, it is becoming evident that the push towards improved corporate responsibility is much more than a fad; it is a long-term trend. As a result, consumer products manufacturers need strategies to help them generate stakeholder value while maximizing their positive impact on their communities and minimizing adverse effects on the environment.

As organizations seek opportunities to adopt responsible practices at the environmental, social and economic levels, they are coming to realize that sustainability cannot be an ad hoc process. Instead, transformational business model innovation and a disciplined approach to change are needed. This article discusses business practices consumer products manufacturers must adopt to keep pace with the accelerating push towards enhanced corporate responsibility.

In addition, this issue of Food for thought includes:

• Strategies and solutions for addressing market volatility
• Action items consumer products manufacturers can adopt to improve their corporate responsibility practice
• Highlights of financing activity in the third quarter of 2007
• Highlights of M&A activity for the third quarter of 2007

About Food for thought
Food for thought is a bi-annual newsletter produced by Deloitte's Corporate Finance group. It addresses issues relevant to food processors and retailers in Canada.

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