Paul Schacht

Occasion based marketing for beverages is not a new phenominum. We just have to go back over the catalogue of historic Coca Cola ads to see how leveraging occasions has been used for decades to drive increased sales and margins for all members of the Coca Cola value chain.  “Refreshment on the Go”, “Stock Up for the holidays”, “makes food taste better”, “easy hospitality”, “Refreshing vacations” are just of few of Coca Cola’s occasion based propositions. It’s been the Coca Cola way for generations, and the basic principles from yesteryear, are still applied today. In fact, for the Coca Cola system, Occasions sit at the heart of their marketing DNA. They call it the OBPPC (Occasion, Brand, Pack, Price, Channel) process and it’s a critical element of their overall marketing. Coca Cola ensures that for each occasion, they clearly define the optimal brands to be sold, in the most appropriate packages, at the right prices, in the target channels to sell more products, at higher prices. They use occasions to pro-actively change the market dynamics in their favour by shifting the demand curve for beverages rather than simply moving along it to where the market takes them. DM me to learn more about how you can use Growth Scope to unlock your liquor market growth agenda by unlocking consumption occasions.

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I had the distinct pleasure of sitting with Kantar BrandZ for an in-depth conversation about global brands through the lens of PepsiCo's iconic portfolio -- what makes a brand valuable, the role of brands, how to stay relevant, deploying distinctive assets in a consistent and connected way, how the best-of-the best do it and so much more. I believe brands have a bigger role to play than before and at PepsiCo we talk about Positive Brands. We want to inspire people to make better choices for them and the planet. We are developing programs that leverage the scale and power of our brand marketing to accelerate our sustainability journey and connect with consumers. And we recognized brands are only relevant to people to the degree that they connect to something meaningful in their lives; something bigger that connects to core human needs like community, security, control, connection, enjoyment, etc. When it comes to deploying distinctive assets, we have to be very humble as marketeers. Memory structures, distinctiveness, brand meaning is built over generations. As marketeers, we stand on the shoulders of the giants that went before us. I'm very humble to the generations of incredible marketeers who have built these brilliant brands. Thank you Kantar for recognizing PepsiCo in the BrandZ Top 100 Brands Global Report 2024. Check out the full conversation: https://lnkd.in/eE3mtGxZ #PepsiCoProud #BrandZ #Kantar

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I'll be at 👉 (https://lnkd.in/geS8v3aq) the NielsenIQ C360 conference in Phoenix - May 13-16 as The CPG Guys. Will you be there as a senior leader to discuss today's important #cpgindustry topics? 1.) Total store optimization in a post pandemic world? 2.) What does today's truly #omnichannel shopper journey look like? Have #retailmedia networks changed full funnel #omnichannelmarketing? 3.) Of course, all about #artificalintelligence 4.) #innovation - most large brands temporarily slowed it down over the pandemic - now its back to the mayhem. Shelf space is not unlimited - who wins, who loses and who doesn't belong on the shelf in the first place. Watch Liz Buchanan (NA, president), Jamie Clarke (NA retail), Andrew Criezis (President, #ecommerce) and so much more.

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In-store retail media is expected to grow significantly by 2028, with U.S. spending expected to triple to $1 billion. Leaders in the industry, including Paul Brenner from Vibenomics, a Mood Media company, Wovenmedia CEO Susie Opare-Abetia, and Grocery TV CEO Marlow Nickell, highlight the rise in interest due to the advantages of first-party data as well as the decline in traditional media reach. Despite current challenges like organizational silos and measurement inconsistencies, the potential for targeted advertising at the point of purchase is driving investment. As the industry evolves, standardization and technological advancements will further enhance in-store retail media's impact on sales and brand experience. #RetailMedia #InStoreAdvertising #DigitalTransformation Path to Purchase Institute

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Kimberly-Clark: steady progress with a double top-/bottom-line beat in Q1 2024 & raised guidance Volume development especially is a stand-out considering KC country/ category footprint and the historic price elasticity of the 'paper' categories Margin recovery continues & pre-COVID profitability level is now at sight Promising. The Street took notice (+10% since release) Full details below • NR: $5.1Bn • OSG: 6%; Volume: 1%; Price/ mix: 5% • GM%: 37.1%; +390 bps vs Q1 FY23 • OP%: 16.6%; +142 bps vs Q1 FY23 • Beat analysts’ consensus for revenue as well as EPS FY24 guidance: • Raised Organic Net Sales Guidance: Expected to grow mid-single digits vs previous expectation of low-to mid-single-digit growth • Raised Adjusted Operating Profit guidance: Expected to grow at a low-teens percentage rate on a constant-currency basis vs previous expectations for high-single-digit to low-double-digit • Raised Adjusted EPS guidance: Expected to grow at a low-teens percentage rate on a constant-currency basis, vs previous expectations of high-single-digit growth Exciting year ahead for Kimberly-Clark 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #cpg #fmcg Procter & Gamble Essity Henkel Unilever Sofidel S.p.A. The Clorox Company Church & Dwight Co., Inc. https://lnkd.in/erGgByVT

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The US Beer industry landscape is changing fast. AB InBev's North America Normalized EBIT declined by over $1.3 B from 2022 to 2023. The volume market share decline (relative to Molson Coors Beverage Company and Constellation Brands) contributed to that EBIT decline by an amount of $400 Million. It has not helped that overall volumes between these three major players has declined by over 4%. It's a general sign of the headwinds facing the beer category as shopper and consumer preferences shift. For #ABInBev, that overall market decline cost them another $200M. A just less than 4% increase in Net Pricing contributed a +ve $560Million to the Normalized EBIT change, but was insufficient to mitigate the increased inflationary unit costs associated with Cost of Sales and the de-leveraging of other SG&A operating expenses. It will be interesting to track how these components of EBIT will change for 2024, given growth constraints associated with market share gains and price increase ceilings. Looks like some drastic OPEX cuts might be the only short-term remedy for now as AB InBev looks to rebuild brand equity and volume share. Send me a DM or write "send" in the comments section and I will forward you the document that also contains the related MVA operating breakdown for #MolsonCoors and #ConstellationBrands. It's interesting to see how and to what extent Molson Coors and Constellation Brands benefited from AB InBev's headwinds. You will also see why Constellation Brands might be the longer term winner here. #Beerindustry #beercategory #beerdistribution #Heineken #BeverageAlcohol #Asahi #Carlsberg #BostonBeer #beer #beverages #BudLight #MillerLite #CoorsLight #Corona #ModeloEspecial

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"Let’s face it: consumers are more educated than ever, and with price comparison at their fingertips, they’re also savvier than ever, heightening their expectations to get exactly what they want – and at the best price available,” says Advantage Solutions Michael Taylor in his latest @Forbes piece.    Michael dives into the opportunities and challenges of serving today’s discerning #shoppers. He emphasizes the need for retailers and brands to embrace multicultural influences and adventurous flavor profiles, cater to the diverse tastes of modern consumers, and leverage design, form and function to enhance product appeal.     Highly recommend taking a read for some actionable strategies for staying ahead in a competitive market. Great piece, Michael!    #RetailInnovation #ConsumerTrends #LeadershipInsights #ConsumerBehavior

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Consumers: Spending more to buy less. The study has identified two primary ways that consumer behavior has shifted. First, consumer purchase occasions2 occurred at the same—and in some cases, at a higher—frequency than in 2022, but consumers purchased fewer items on each trip. Units per trip declined by 3 to 5 percent across the grocery, health and beauty, and household categories, outweighing the growth in frequency of purchase occasions (up by no more than 3 percent) in the same categories.3 5 potential solutions in the article could approach how to overcome this trend.

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The recent University of Michigan Survey of Consumers indicates a significant drop in consumer sentiment for May, reflecting concerns about rising inflation expectations despite other positive economic indicators. The sentiment index fell to 67.4, down from 77.2 in April, with both short-term and long-term inflation expectations increasing. The one-year outlook rose to 3.5%, the highest since November, while the five-year outlook also increased to 3.1%, reversing a trend of lower readings in recent months. The upcoming consumer price index report from the Labor Department will provide further insight into inflation trends, with many economists expecting a slight moderation in price pressures despite the CPI running above the Fed's target at 3.5% annually in March. https://lnkd.in/gRJubHs7

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It’s All in the Guidance At SGG and Associates, we are in the home stretch of our review of the quarterly performance reports of 250 consumer facing companies that we cover and are competing for share of the consumer’s spend, loyalty and “mindset”. The combined impact of inflation and a consumer “reset” in purchase behavior and created tremendous shifts across multiple industry sectors. The Home Furnishings and Furniture sector, and Department Stores have all been affected negatively. The aspirational Luxury sector has slowed. What should we expect for the rest of the year? It’s all in the Guidance provided by the businesses themselves. Here’s a snapshot of full year Fiscal 2024 performance estimates: In Apparel, numerous Retailers and Brands have turned a corner and/or lapping prior year declines. Examples of full year positive Net Sales Guidance includes Abercrombie & Fitch +10%, American Eagle Outfitters +2 to 4%, Aritzia +8 to 12%, Birkenstock +20%, Crocs brand +7 to 9%, Deckers (led by Hoka) +10%, Guess 11 to 13%, Oxford Industries 4 to 6%, Sketchers 8 to 10%, and Steve Madden 11 to 13%. In Beauty, a consumer focus on “self” and “wellness” is driving significant growth for several Brands: Beiersdorf (Nivea) +6 to 8%, e.l.f 20 to 22%, Inter Parfums +10%. Guidance in the Fitness / Sports sectors is quite mixed. But those forecasting full year growth include Acushunet       ( Foot Joy) and Calloway 3 to 5%, Asics 3.4%, Dick’s 2 to 3%, Adidas, Nike and Puma all forecast growth at mid to high-single-digit rates.  ON Running continues to outperform, forecasting +30% for the year. While Lululemon Comps have slowed, they still forecast an ambitious +11 to 12% growth. The Off-Price sector, which has had a non-stop growth trajectory, is continuing to forecast growth for this year, however, at a more tempered pace. Guidance for comparable growth this year: Burlington +0 to 2%, Ollie’s +1 to 2%, Ross Stores +2 to 3%, and TJX +2 to 3%. Overall, the Retail Sector is forecast by the NRF to grow  2.5% and 3.5% in 2024. That forecast means that while there will be plenty of winners and outperformers, as we’ve described, but they will be balanced by a significant number of underperformers as well.  

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It’s All in the Guidance At SGG and Associates, we are in the home stretch of our review of the quarterly performance reports of 250 consumer facing companies that we cover and are competing for share of the consumer’s spend, loyalty and “mindset”. The combined impact of inflation and a consumer “reset” in purchase behavior and created tremendous shifts across multiple industry sectors. The Home Furnishings and Furniture sector, and Department Stores have all been affected negatively. The aspirational Luxury sector has slowed. What should we expect for the rest of the year? It’s all in the Guidance provided by the businesses themselves. Here’s a snapshot of full year Fiscal 2024 performance estimates: In Apparel, numerous Retailers and Brands have turned a corner and/or lapping prior year declines. Examples of full year positive Net Sales Guidance includes Abercrombie & Fitch +10%, American Eagle Outfitters +2 to 4%, Aritzia +8 to 12%, Birkenstock +20%, Crocs brand +7 to 9%, Deckers (led by Hoka) +10%, Guess 11 to 13%, Oxford Industries 4 to 6%, Sketchers 8 to 10%, and Steve Madden 11 to 13%. In Beauty, a consumer focus on “self” and “wellness” is driving significant growth for several Brands: Beiersdorf (Nivea) +6 to 8%, e.l.f 20 to 22%, Inter Parfums +10%. Guidance in the Fitness / Sports sectors is quite mixed. But those forecasting full year growth include Acushunet       ( Foot Joy) and Calloway 3 to 5%, Asics 3.4%, Dick’s 2 to 3%, Adidas, Nike and Puma all forecast growth at mid to high-single-digit rates.  ON Running continues to outperform, forecasting +30% for the year. While Lululemon Comps have slowed, they still forecast an ambitious +11 to 12% growth. The Off-Price sector, which has had a non-stop growth trajectory, is continuing to forecast growth for this year, however, at a more tempered pace. Guidance for comparable growth this year: Burlington +0 to 2%, Ollie’s +1 to 2%, Ross Stores +2 to 3%, and TJX +2 to 3%. Overall, the Retail Sector is forecast by the NRF to grow  2.5% and 3.5% in 2024. That forecast means that while there will be plenty of winners and outperformers, as we’ve described, but they will be balanced by a significant number of underperformers as well.  

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I have the best job in the world! Naturally Network just wrapped Day 1 of the inaugural ConsciousCPG Summit presented by NielsenIQ, BeyondBrands, and New Hope Network where we heard from 12 speaker that represented so many different vantage points and stakeholder groups in the natural and BFY CPG industry. My brain is on fire from the insights that were shared today! Some of my favorites below with a much bigger recap for both days next week. 1) Discovering your passion is the first step to living your purpose, but you can't do either if you don't create structures for yourself or others to do that work alongside you - Keith Kohler, CPG Financing 2) There is a disconnect between the values consumers care about and what they actually purchase. Even the consumers that say they are ambivalent about the value of purpose-driven brands are making purchases that say otherwise. There is a lot more opportunity than what people think exist! - Sherry Frey, NielsenIQ 3) The products or services that we offer aren't our competitive advantage. Our business models are, and a more conscious business has an edge. - Blair Kellison, formerly CEO at Traditional Medicinals, Naturally North Bay and national board member 4) Supply chain and operational decisions are the impact opportunity. 99% of consumer decisions are made for the consumer before they ever purchase the product. The opportunity is helping the consumer live THEIR values. - Aimy Steadman, COO at BeatBox 5) Purpose clarity is a key strategic imperative. This is what helps businesses outperform the market. - Julia Collins, Planet FWD and Moonshot Snacks Join us and the 600 people that RSVP'd at 11 AM CT tomorrow for Day 2! https://lnkd.in/grsZTcri Thanks so much to all of our day 1 speakers and moderators! Eric Schnell, Zoë Levin (The TP Queen), Cynthia Tice, Carlotta Mast, Sandra Carter, Michael Whelchel, Alyssa Vescio

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How can Engine help you in your category? Let us show you how Engine continues to be cutting edge making you more efficient during times of change. Use the link provided to reach out to us!

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Do the right thing.

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"Thanks Kaleigh Theriault, great play by play on the first half, let’s take a look at what’s going to be needed to win the year." 🏈 Halftime Report: Preparing for the second half in the Beverage Alcohol Industry! 🏆 As we take a breather at the halfway point of 2024, it's clear that the beverage alcohol industry has seen some major plays and strategic moves. Let's huddle up and look at the game plan for the rest of the year: 🍺 Beer: The price increases in 2023 are putting pressure on consumers, with long-term inflation effects and multiple drivers pointing to lower volumetrics. To stay in the game, deeper price subsidization for core Beer categories is essential. However, Imports show potential for a positive finish. Maintaining consumer loyalty will be our MVP move here. 🍷 Wine: The $15-$25 range continues to be the sweet spot, driving consumer interest. But to achieve positive trends by year-end, we need to capitalize on Q4 gifting. A big comparable period is coming up, so some price adjustments might be necessary, especially for infrequent Wine shoppers. 🥃 Spirits: We're seeing a continued shakeout as consumers transition from traditional products to RTDs. Flavor and turn-key cocktails are the winning plays, making Q4 critical for gifting and entertaining. Price discounting is already in motion to boost revenue. 🍹 RTD (Ready-to-Drink): RTDs remain a game-changer this year. With their share of total Alcohol growing, we expect more stability in growth rates as the shift from Seltzers slows. Building consumer brand loyalty for Spirits RTDs is crucial, and we need to watch out for potential flavor fatigue in the second half. Let's get ready to tackle the challenges and seize the opportunities ahead! Here's to a successful second half of 2024! 🥂 "Why did the football team go to the bank at halftime? To get their quarterback!" 🏆 #BeverageIndustry #AlcoholTrends #Beer #Wine #Spirits #RTD #MarketInsights #SecondHalf #HalftimeReport Note: This report looks at the 26 week ending period thru July 6th, 2024

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Challenging times ahead of #FMCG players? After a period of unprecedented inflation, where most/ all FMCGs benefited from double-digit pricing gains (outpacing the COGS inflation), the pricing gains are drying up, while the volumes keep stagnant/ declining, leaving #CPG players with a rather bleak outlook Most of the FMCG players rely on a strong middle class (additional $100bn income won't make Elon Musk buy any more shampoo/ detergent than he does today), and we have been facing the largest transfer of wealth from the middle class to the super-rich (>66% of all the wealth 'printed' since 2020 ended up with the top 1%) causing their purchasing power/ financial stability to drastically decline with many metrics hitting the worst situation since 2008/09 downturn If so far the volume declines were moderate, it was driven mostly driven by spending of accumulated savings and increased consumption credit (mostly cards), but: - saving rate at the lowest level since 2008 - credit card delinquency rate at the highest since 2011, and the highest since 1991 in small banks (excl. top 100) - consumer debt already higher vs pre-pandemic levels, - first since 2009 decline in avg. Credit Score resulting in slowdown in new credit origination Maintaining the pre-pandemics consumption will result tricky for many consumers. As most of consumer goods are not really discretionary, many middle class consumers will switch to Private Labels/ value brands, while 'the rich' will continue shoppinh luxury tier. As such, we may expect strong demand for the entry level and luxury segments, while the mid-tier will face drop in demand. The upcoming quarters will bring some important decisions for many Brands willing to defend/ expand their positions, and/ or adjust according to shifting demand #strategy Frederic Fernandez & Associates

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CPG Marketing Leaders – Reality check ✔ time: If you’re fighting for share in the mass market trenches, you're probably well aware that we’re no longer in an era of reliable, consistent industry momentum… gone are the high single/double digit growth 📈 of the 2000s & 2010’s. You may be feeling the channels where you operate and the strength of your brand getting squeezed by niche premium players on the high end and PL / value players on the lower end. A fascinating recent McKinsey & Company Insight piece, “𝘙𝘦𝘴𝘤𝘶𝘪𝘯𝘨 𝘵𝘩𝘦 𝘋𝘦𝘤𝘢𝘥𝘦- 𝘈 𝘋𝘶𝘢𝘭 𝘈𝘨𝘦𝘯𝘥𝘢 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘊𝘰𝘯𝘴𝘶𝘮𝘦𝘳 𝘎𝘰𝘰𝘥���� 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘺” packs a wallop of advice and offers a blueprint to leaders navigating these dynamics and challenging climate. (Link to article in first comment.) I’ll start with the tough news 😒: Sustainable, profitable growth is not a given, and won’t be achievable for even some best-in-class companies. Now for the good news 🙂 : leaders can cultivate a competitive advantage by understanding these dynamics, the resulting roadblocks, and with a commitment to evolve to overcome them. 🧗‍♀️ The Dual Agenda has two primary pillars: 1️⃣ 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝙍𝙚𝙨𝙝𝙖𝙥𝙞𝙣𝙜 𝙖𝙣𝙙 2️⃣ 𝙋𝙚𝙧𝙛𝙤𝙧𝙢𝙖𝙣𝙘𝙚 𝙀𝙭𝙘𝙚𝙡𝙡𝙚𝙣𝙘𝙚. Sounds simple, right? Not so much, as the experts at McK are happy to tell you. Taking these on requires: 🎯Capability evolution 🎯 Investment in brand fundamentals (my favorite ) 🎯 Innovation and technology-- AI driven and beyond 🎯 An agile operating models geared to test, learn and adapt, locally and at scale. Way too much to unpack in one post, so I’ll be breaking these two pillars down over the next week. Stay tuned! In the meantime, ask yourself: 𝙃𝙤𝙬 𝙝𝙖𝙫𝙚 𝙞𝙣𝙙𝙪𝙨𝙩𝙧𝙮 𝙨𝙝𝙞𝙛𝙩𝙨 𝙖𝙣𝙙 𝙢𝙚𝙜𝙖𝙩𝙧𝙚𝙣𝙙𝙨 𝙞𝙢𝙥𝙖𝙘𝙩𝙚𝙙 𝙮𝙤𝙪𝙧 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙖𝙡𝙧𝙚𝙖𝙙𝙮, 𝙖𝙣𝙙 𝙜𝙤𝙞𝙣𝙜 𝙛𝙤𝙧𝙬𝙖𝙧𝙙: 𝙙𝙤𝙚𝙨 𝙩𝙝𝙚 𝙜𝙖𝙥 𝙩𝙤 𝙮𝙤𝙪𝙧 𝙜𝙧𝙤𝙬𝙩𝙝 𝙖𝙨𝙥𝙞𝙧𝙖𝙩𝙞𝙤𝙣 𝙜𝙧𝙤𝙬 𝙤𝙧 𝙨𝙝𝙧𝙞𝙣𝙠? #growthstrategy #macrotrends #brandstrategy

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