WILL VERTICAL INTEGRATION DEFINE A NEW AGE OF THE CONGLOMERATE?

Shannon O'Neill moderates a panel discussion on the evolving role of conglomerates in a globalized world. Khalid Al Rami discusses the shift from horizontal to vertical integration, emphasizing resilience and efficiency in the value chain. He highlights Alba's approach to vertical integration in energy and its reconsideration of downstream integration due to geopolitics and carbon regulations. Eugene Williamson addresses the importance of consumer needs and synergies in the consumer packaged goods industry, using PepsiCo as an example. He explains how PepsiCo balances global platforms with local customization. The panelists debate the agility of conglomerates, with Khalid valuing the flexibility to source from different markets and Eugene emphasizing the role of digitization in enabling value chain orchestration. The discussion also touches on the impact of technological changes, geopolitics, and sustainability on business strategies, with both speakers agreeing on the importance of adapting to these trends.