Volume vs price mix key for European food producers in Q3, Barclays says
** Barclays says volume and price mix will be the main factors affecting European food producers' results in Q3, expecting prices to be muted
** It sees Europe as still strong vs U.S., with consumers looking for either value for money or compelling innovation, while there are some signs "the low end U.S. consumer is not getting worse"
** "With price now moderating, it becomes all about the trade-off between volume acceleration and price deceleration," the broker says, adding that its top ideas are Danone DANO.PA and Lindt & Spruengli LISN.S
** The broker expects Danone to be comfortably in the middle/upper end of its organic sales guidance,
** It's also confident about Lindt's H2 performance with improved cocoa crop harvest and pricing power
** Barclays sees slightly negative Q3 pet food pricing at Nestle NESN.S, while it faces a long path towards its 3% annual organic sales growth target
** It flags increased expectations for Unilever ULVR.L, with gross margin gains unlikely due to the end of deflation benefits
Reporting by Rafal Wojciech Nowak
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