Procurement
Predictions for 2025: Dave Cloete, Chief Procurement Officer for North America at Kellanova
As we step into 2025, organisations around the world are bracing for another year marked by uncertainty, change, and new opportunities.
To navigate these challenges, leaders within global consumer organisations must look ahead, preparing for the unexpected and crafting strategies that will help them adapt. We spoke to leaders across our core markets to gather their reflections on the tumultuous year that was 2024, and their predictions for the future, offering insights into what 2026 could hold.
We spoke to Dave Cloete, Chief Procurement Officer for North America at Kellanova to hear his reflections on last year, as well as his insights and predictions for 2025.
Reflecting on 2024, what were some key trends that impacted the food and beverage industry?
Consolidation was a key trend last year, with many organisations reviewing their portfolios ensure they were fit for purpose. As a result, a lot of organisations streamlined in 2024 by divesting areas of their business that didn’t contribute to their core strengths.
As an example, we saw organisations with a heavy lean towards commoditisation focus more on input cost risk management, whilst rebalancing resource levels in other business functions.
The second trend that drove change across the industry was digital and AI. I was part of many conversations that centred around exposure to new technologies and specifically use cases for AI.
There were so many new AI tools being launched last year that the market felt quite overwhelmed at times. I found that the most creative and most successful AI tools were the ones that were for more simple processes.
A key consideration that came out of the emergence of AI solutions in 2024 was how data is accessed and how it should be used. AI uses multiple data sets, and you can’t guarantee that the data is clean. You also need to consider how different data sets communicate with each other, as well as how they integrate into existing systems.
Although the topic of AI has been around for a while, 2024 highlighted that it’s still a new digital tool, and different solutions have varying levels of maturity and challenges. With this in mind, whilst AI was a core trend in 2024, it mainly drove conversations about digital transformation and requirements, as opposed to being widely implemented. As the world becomes more aware of AI’s potential, I believe we will see an uptake in adoption of AI-powered solutions.
How did your role as a leader in your industry evolve in 2024?
In 2024, my role as a leader in the procurement industry evolved significantly due to heightened recognition of procurement as a strategic partner and spend expert. Controlling over 70% of company spend, procurement’s input became crucial, and businesses increasingly acknowledged the function as a competitive advantage.
Key changes included being invited to decision-making tables and receiving investments in tools and personnel, though this level of support is not consistent globally. This shift stems from challenges dating back to 2019, such as supply chain disruptions, strikes, and evolving job markets, which underscored procurement’s importance. Companies now make decisions with the understanding that procurement’s involvement is essential for success.
As we look towards a new year, what predictions do you have for your industry?
As we look toward the new year, I predict several key trends will shape the CPG industry.
Sustainability is at an inflection point, particularly regarding Scope 3 emissions. In Europe, regulatory pressures, such as financial penalties for non-compliance, are driving action. Beyond regulations, the impact on brand image is significant. While the urgency is less pronounced in the U.S. and emerging markets, the debate about whether sustainability efforts are driven by ethical motives or cost implications will continue globally.
"Companies will maintain a strong focus on streamlining their portfolios through divestitures and acquisitions. This approach reflects a strategic effort to concentrate on core areas and drive efficiencies."
Investment in digital tools, dynamic capabilities, and advanced analytics will remain a priority. These advancements are crucial for enabling smarter decision-making and improving operational efficiency.
In summary, the CPG industry will see ongoing progress in sustainability, portfolio management, and digital innovation, with regional dynamics influencing how these trends play out.
Which, if any, of the trends that have been prominent in 2024 do you think will continue to impact your industry in 2025?
Several trends prominent in 2024 will continue to shape the industry in 2025, driving transformation and innovation.
- The focus on refining portfolios through divestitures will persist as businesses seek to concentrate on their strengths and adapt to shifting market demands.
- The adoption of decentralised organisational models will continue to grow, challenging traditional ways of working and encouraging more flexibility and autonomy within businesses.
- The emphasis on digital innovation will remain critical, though the role of AI is still evolving. While industries are exploring what AI truly means for them, its application will vary widely. Companies will need to identify the specific AI-driven solutions that offer a competitive edge.
- Predictive analytics will become even more significant in driving strategic decision-making and addressing complex challenges proactively.
- Organisations will continue to reassess and question traditional business practices, driving innovation and resilience across industries.
How do you believe the talent landscape across your industry will evolve in 2025?
"In 2025, the talent landscape across the industry will evolve to prioritise both adaptability and forward-thinking skills at all levels, with distinct shifts for general employees and leaders."
Across the workforce we will see the following talent developments:
- Employees will need to thrive in complex matrix structures, connecting dots across functions, networks, and stakeholders.
- The era of niche specialisation is fading. Instead, individuals who can combine expertise with broader collaboration and integration skills will be highly valued.
- With fewer managers and a greater emphasis on “doers,” employees must take initiative and operate independently while contributing meaningfully to business goals.
- The rapidly changing business environment demands flexibility and the ability to adjust strategies as priorities and conditions shift.
At leadership level, I predict we will see the following capability requirements emerge:
- Effective leaders must excel as natural change managers, using empathy to relate to employees navigating transitions and ensuring smooth adaptations to new processes.
- With limited resources, leaders must focus on high-impact initiatives, balancing immediate needs with long-term value creation.
- Leadership will require looking beyond the next 12 months to plan for 2026 and 2027, ensuring sustained growth and resilience.
- Building trust and supporting teams through change will be critical. Empathy will emerge as a core leadership competency.
- While processes remain important, leaders must view them as enablers rather than solutions, focusing instead on people and strategy.
In summary, the talent landscape will demand individuals who are versatile, collaborative, and forward-thinking, with leaders who can inspire and guide through continuous change while keeping an eye on long-term objectives.
New trends transformed talent requirements in 2024; what new trends or events do you expect to inform talent strategies in the new year?
The key trends and events I expect will shape the talent landscape in 2025 are:
Elevated focus on people leadership
Strong people leadership will be paramount, with an emphasis on interpersonal skills and the ability to manage and inspire diverse teams. Leaders will need to excel at cross-functional communication, speaking the “language” of different business areas to foster collaboration and alignment. The human aspect of leadership—empathy, adaptability, and relationship-building—will become even more critical as AI takes over certain technical tasks.
Experiential learning
Experiential learning will continue to dominate talent development, and organisations will need to prioritise opportunities for employees to learn by doing, enhancing both technical and interpersonal skills.
The role of soft skills
As AI and digital tools take on more technical tasks, soft skills like communication, collaboration, and emotional intelligence will become indispensable. These skills will differentiate talent in an increasingly automated workplace. The ability to operate globally – connecting across cultures, demonstrating agility, and having international exposure – will be highly valued.
Talent retention and development:
Retaining and developing talent will take centre stage, as the demand for skilled employees continues to grow. Organisations will need to look beyond pay, recognising that long-term motivators like growth opportunities, meaningful work and strong leadership are key to retention.
Refreshing talent pools
Companies will aim to bring new voices to the table, prioritising diversity of thought and innovation. Fresh perspectives will be crucial for accelerating transformation and adapting to geopolitical challenges. Addressing global talent shortages, particularly those influenced by geopolitical tensions, will be a pressing concern.
Digital-driven roles with a human touch
While digital roles are becoming more prominent, they often require individual contributors rather than traditional managerial structures. However, the human element – creativity, strategy, and the ability to connect on a personal level – will remain irreplaceable, even in digitally focused roles.
In 2025, talent strategies will reflect a balance between leveraging technology and cultivating the human skills that drive innovation, collaboration, and global connection. The interplay of AI and interpersonal expertise will define the evolving workforce.
Are there any other predictions you’d like to share?
In 2025, I anticipate that the CPG industry will see a continued focus on leveraging impulsive buying behaviours to drive growth and innovation.
Companies that excel in creating products or experiences that cater to impulsive spending will thrive. The ability to prompt a “grab-and-go” mentality or spark curiosity at the point of sale will be critical.
"Like restaurants frequently refreshing and reinventing their menus, CPG brands will need to constantly innovate to stay relevant. This could include seasonal offerings, limited-time products, or partnerships that keep consumers engaged and curious."
Investment in research and development will be essential for creating new products that surprise and delight consumers. The focus will be on not just functionality but also delivering creative and experiential value.
Brands will look beyond the product itself to create immersive or interactive experiences that trigger emotional connections and impulsive habits, increasing consumer spend.
In summary, the CPG industry in 2025 will be defined by its ability to innovate rapidly, adapt to changing consumer behaviours, and leverage impulsive tendencies to create memorable and profitable experiences.
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I’d like to extend thanks to Dave for sharing his invaluable insights and predictions with us as we move forward into 2025. If you have any questions or would like a conversation about your organisation’s hiring strategy for the new year, please don’t hesitate to get in touch.
