might be ahead. As for what companies are doing, one is that they’re promoting domestic or locally made products. This trend is also informing M&A strategies , as companies consider partnerships or acquisitions that create access for products within a country’s borders. Monica Toriello: The fifth trend is that “the value equation is evolving.” What does that mean, Christina? Christina Adams: This trend ties to a lot of what we’ve been talking about—and it’s important to note that we do think of this as value, not just price. As prices have continued to rise and as inflation remains a relevant topic, we see consumers defining value in a new way. Two of the top three concerns that consumers are talking about are related to prices and inflation . We are seeing trade-down behavior continue. And I say that with full recognition that trade- down is an interesting juxtaposition to splurging, which we talked about earlier. Often, we see the same consumer doing both; it’s a matter of which categories they’re doing it in. They trade down in certain categories to enable splurging in others. It’s important to understand the consumer holistically—to understand the occasions and needs that are driving the difference between those behaviors. I will also say, though, that the top way that consumers trade down is that they will look to purchase the same product, but they will purchase a smaller size or a lower quantity of it. That is different from the 2008 economic downturn, when buying private labels was the top way that consumers traded down. That is certainly still a way that consumers are trading down, but consumers are looking more to preserve behavior but at a lower absolute price point. Consumers are also changing the channels in which they shop. All of this points to revenue growth management [RGM] as an important consideration, particularly in thinking about price- pack architecture, channel strategy, and the overall dynamic ability to reach consumers with a price point that reflects the value they see in the product. Kari Alldredge: One of the most interesting new trends that we’re seeing is this trade-off across categories, as opposed to just within categories. It’s one of the first times in the data that we’re seeing consumers say that they traded down on essential items to enable them to splurge on discretionary items. Understanding the cross-category choices that consumers are making is a different muscle for many companies, which tend to think about value as bounded within their category. Monica Toriello: You’ve already touched on some of the implications for companies: building a 360-degree view of the consumer is one, investing in RGM is another. What else should companies prioritize? Kari Alldredge: Portfolio shaping is important, whether that’s M&A or divestiture . Reshape your portfolio to lean into places where there is growth—by geography, by consumer segment, and by category. And finally, rewire your tech capabilities to support all this. We didn’t talk a lot about technology, but a couple of important places where we’re seeing that show up are How today’s consumers are spending their time and money 7