Daniel Faierman’s Post

Circana's 12th Annual Growth Leader Rankings for the CPG industry in 2023 are out! Key Highlights: - CPG industry growth in 2023 was marked by persistent high price inflation and volume declines, echoing the trends from 2022. Despite this, dollar sales grew by 4.2%, driven by a 6.1% increase in price/mix, while overall volume dropped by 1.7%. Towards the end of the year, the pace of price/mix growth slowed down, and volumes began to recover. - Successful companies focused on strong volumes, leveraging strategies such as integrated consumer engagement, continuous innovation, premium and value offerings, and the adoption of AI for operational efficiency. - While major CPGs maintained their dominance, companies in the $500 million to $1 billion range gained market share. Smaller companies, however, contributed less to overall growth, indicating a shift from the pandemic-induced surge of recent years. Notably, PRIME Hydration exemplified growth among smaller manufacturers by targeting specific audiences and utilizing effective market channels.

𝗜𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝗲 𝗼𝘂𝗿 𝗼𝗻𝗹𝘆 𝗼𝗯𝘀𝗲𝘀𝘀𝗶𝗼𝗻: 𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲 At a time where all FMCG companies need to dramatically refocus on organic (volume) growth, 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗴𝗿𝗼𝘄𝘁𝗵 𝘁𝗮𝗰𝘁𝗶𝗰𝘀 (revenue growth management, sizing/ pricing, more promotion, another premium line extension, few more weeks on air…) & 𝘁𝗵𝗲𝗶𝗿 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗞𝗣𝗜𝘀 (market share) 𝘄𝗶𝗹𝗹 𝗹𝗶𝗸𝗲𝗹𝘆 𝗻𝗼𝘁 𝗰𝘂𝘁 𝗶𝘁 If our aim is to create dramatic & sustainable (volume) growth & get exceptional retailers’ support, we need to create incremental category value 𝗙𝗼𝗿 𝘁𝗵𝗶𝘀, 𝘄𝗲 𝗻𝗲𝗲𝗱 𝗮 𝗭𝗲𝗿𝗼-𝗕𝗮𝘀𝗲𝗱-𝗚𝗿𝗼𝘄𝘁𝗵® 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗵𝗮𝘁 𝗶𝘁𝗲𝗿𝗮𝘁𝗲𝘀 𝗳𝗶𝗿𝘀𝘁 & 𝗳𝗼𝗿𝗲𝗺𝗼𝘀𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀, 𝗻𝗼𝘁 𝗳𝗿𝗼𝗺 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗼𝗿𝘀 𝗼𝗿 𝗳𝗿𝗼𝗺 𝗼𝘂𝗿𝘀𝗲𝗹𝘃𝗲𝘀. 𝗔𝗻 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗵𝗮𝘁: - Determines precisely what have in common the brand/ category ‘heavies’ (the minority that accounts for most of the value), how many they are & how to recruit more of them - Determines granularly lapse & non-users barriers/ drivers/ triggers - Leverages strategic consumer research to determine a strategic segmentation that highlights clearly actionable consumer segments with clear 4Ps implications - Prioritizes Growth initiatives that display the highest ROI (segment size, profit per consumer per year, investment required per recruited consumer) More in the slides in the below carrousel slides 𝗧𝗵𝗲𝗿𝗲 𝗶𝘀 𝗻𝗼 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 𝗦𝗰𝗮𝗿𝗰𝗶𝘁𝘆, 𝗼𝗻𝗹𝘆 𝗮𝗻 𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘁𝗼 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 & 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝘆 In the current context, the gap between FMCG companies that creates incremental category value (and at such that will become indispensable to retailers & consumers alike) vs. the others will increase dramatically 𝗘𝘅𝗰𝗶𝘁𝗶𝗻𝗴 & 𝗱𝗲𝗰𝗶𝘀𝗶𝘃𝗲 𝘁𝗶𝗺𝗲𝘀 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #cpg #fmcg The Coca-Cola Company Nestlé PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Coty JDE Peet's Kenvue Haleon Bayer Sanofi Mars Bel Ferrero

𝗜𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝗲 𝗼𝘂𝗿 𝗼𝗻𝗹𝘆 𝗼𝗯𝘀𝗲𝘀𝘀𝗶𝗼𝗻: 𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲 At a time where all FMCG companies need to dramatically refocus on organic (volume) growth, 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗴𝗿𝗼𝘄𝘁𝗵 𝘁𝗮𝗰𝘁𝗶𝗰𝘀 (revenue growth management, sizing/ pricing, more promotion, another premium line extension, few more weeks on air…) & 𝘁𝗵𝗲𝗶𝗿 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗞𝗣𝗜𝘀 (market share) 𝘄𝗶𝗹𝗹 𝗹𝗶𝗸𝗲𝗹𝘆 𝗻𝗼𝘁 𝗰𝘂𝘁 𝗶𝘁 If our aim is to create dramatic & sustainable (volume) growth & get exceptional retailers’ support, we need to create incremental category value 𝗙𝗼𝗿 𝘁𝗵𝗶𝘀, 𝘄𝗲 𝗻𝗲𝗲𝗱 𝗮 𝗭𝗲𝗿𝗼-𝗕𝗮𝘀𝗲𝗱-𝗚𝗿𝗼𝘄𝘁𝗵® 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗵𝗮𝘁 𝗶𝘁𝗲𝗿𝗮𝘁𝗲𝘀 𝗳𝗶𝗿𝘀𝘁 & 𝗳𝗼𝗿𝗲𝗺𝗼𝘀𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀, 𝗻𝗼𝘁 𝗳𝗿𝗼𝗺 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗼𝗿𝘀 𝗼𝗿 𝗳𝗿𝗼𝗺 𝗼𝘂𝗿𝘀𝗲𝗹𝘃𝗲𝘀. 𝗔𝗻 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝘁𝗵𝗮𝘁: - Determines precisely what have in common the brand/ category ‘heavies’ (the minority that accounts for most of the value), how many they are & how to recruit more of them - Determines granularly lapse & non-users barriers/ drivers/ triggers - Leverages strategic consumer research to determine a strategic segmentation that highlights clearly actionable consumer segments with clear 4Ps implications - Prioritizes Growth initiatives that display the highest ROI (segment size, profit per consumer per year, investment required per recruited consumer) More in the slides in the below carrousel slides 𝗧𝗵𝗲𝗿𝗲 𝗶𝘀 𝗻𝗼 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 𝗦𝗰𝗮𝗿𝗰𝗶𝘁𝘆, 𝗼𝗻𝗹𝘆 𝗮𝗻 𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘁𝗼 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 & 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝘆 In the current context, the gap between FMCG companies that creates incremental category value (and at such that will become indispensable to retailers & consumers alike) vs. the others will increase dramatically 𝗘𝘅𝗰𝗶𝘁𝗶𝗻𝗴 & 𝗱𝗲𝗰𝗶𝘀𝗶𝘃𝗲 𝘁𝗶𝗺𝗲𝘀 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #cpg #fmcg The Coca-Cola Company Nestlé PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Coty JDE Peet's Kenvue Haleon Bayer Sanofi Mars Bel Ferrero

**Unlocking the Secret to Grocery Shelf Success: A Guide for Emerging Food Brands** Ever wondered why some food products become staples on grocery shelves while others struggle to make it past the trial phase? The answer lies not just in quality, but in strategy and execution. In the bustling world of CPG foods, getting your product onto grocery shelves is akin to finding a golden ticket. But, it’s not about luck; it’s about understanding the intricate dance between brand positioning, buyer psychology, and retailer objectives. From crafting a compelling story that resonates with both buyers and consumers to navigating the logistics of distribution and shelf placement, every detail matters. For emerging brands, this journey can seem daunting. Yet, with the right approach, it becomes an achievable mission. One key strategy is focusing on unique selling propositions that differentiate your product from competitors. Additionally, building strong relationships with retailers by understanding their goals and how your product aligns with their customer base can make all the difference. But here's an engaging twist: In today’s digital age, utilizing online platforms to create buzz around your product before approaching retailers can significantly enhance your chances of success. Social proof and consumer demand are powerful persuaders in securing shelf space. To wrap up, breaking into grocery shelves requires more than just an outstanding product; it demands a strategic approach tailored to today's retail landscape. It's about telling a captivating story, leveraging digital platforms for pre-launch momentum, and aligning with retailer goals for a mutually beneficial partnership. Remember: every successful brand on those shelves started somewhere – why shouldn't it be yours next? Let’s dive deeper into these strategies together and turn your grocery shelf dreams into reality.

Product innovation key for CPG sales growth. Here is an excerpt from a recent article : If you’re a big food company chief executive, here is what your chief sales officer may hear from retail buyers at the next category review: “I read online that your CEO is planning to cut back on promotions next year. That’s a tough decision, but I understand. I’m afraid I have some bad news for you. We’re cutting back on your SKUs for the next reset. We’ll probably use some of the space to expand private labels. I’ve also met with a start-up. They have an amazing trend-forward product range to grow the category, and they’re offering 40% margins. How about you? Do you have any new products ready to replace the items you lost?” Without a robust innovation pipeline, any food & beverage chief executive who has promised analysts that they’re cutting price promotions next year has a big problem. Should companies accept more category declines and share losses? 

As we begin the start of the "summer" tradeshow season for CPG brands.... from shows like Specialty Food Association's Fancy Foods, to distributor shows from KeHE Distributors, Lipari Foods, or UNFI or of course Natural Products Expo West, its important for brands to understand what "KPI's" and numbers, retailers, ingredient suppliers, and/or investors are interested in understanding. I found this infographic from Cloverpop to be extremely helpful to not only understand what numbers are important to the CPG ecosystem, but also how founders can utilize that information to make data-driven business decisions for their brand. The basics.... 1) Know your $ sales figures. Know your unit sales figures. Preferably be able to chart the growth of either over an elongated timeframe. 52 weeks is pretty standard. 2) Know your distribution footprint. Where are you selling today? What are your key objectives for 2024 for launching/growing within specific Key Accounts? 3) Understand your competition. Everything is relative within the hypercompetitive world of CPG. How does your product differentiate itself (product attribution, price point, certifications?) How do you rank within your category and how are you looking to position yourself against your competitors? As always, if you're needing help understanding any of this, please feel free to comment or PM me and I'll be more than happy to set you up with an exploratory call with one of our talented SPINS brand reps! *** Bonus points if you can utilize your data to tell your "sell story" in a quick-bite infographic like a one-pager or even a post-card while you're hawking samples at your booth *** See y'all on the circuit. 😃

For smaller brands that do not have sophisticated revenue and margin management tools, this is for you. Manoli Kulutbanis #startupfounders #cpgstartups #financialplanning #retailpricing #grossmargin

If you’re a CPG brand who wants to scale to $100mm+, you need to be competitively priced. Because true scale for CPG comes from retail. Conventional and mass retail in particular. The Targets, Walmarts and Costcos. The thing all of their customers have in common? Most aren’t willing to pay a large premium for better ingredients. That’s been proven time and time again BEFORE the likes of Ozempic/Wegovy. With the advent of those drugs, even fewer people will be willing to pay that premium is my guess. Over the course of the last 10 years, many brands with premium pricing were able to get to $40-60M. But it’s been a real struggle for most of them to get to $100M+. Because that scale comes from the aforementioned retailers who have price sensitive customers. The brands that have done it figured out a way to offer a value proposition from an ingredient perspective while maintaining competitive pricing. P.S. That isn’t necessarily a bad thing. There are plenty of CPG brands that can run quite profitably at $40-60M. Your expectations just need to be aligned with that reality. Because those expectations effect how you build the business from the jump.

Are premium innovations all the #CPG players have to offer to (cost-of-living-stressed) consumers? At a time all #FMCG companies are doubling down on organic growth, most are accelerating their innovations machine, often with premium priced innovations. That could end up being a large resources misallocation (dilution of scarce shelf space, marketing investments, supply chain & organizational resources) & a major strategic misstep for many At a time the largest threat is de-consumption, more premium priced innovations will just not cut it The painful truth is that too many FMCG marketing organizations do not own the 4Ps and are solely focused on ‘global innovations/ marketing campaigns’. Then the organizational bias/ 'default setting' is to try to solve all brands’ problems with those two levers (global product innovations & media) In the current context, those could be deadly mistakes We continue to be amazed by the little resources that get into: i)  Generally, understanding rigorously Consumers, esp. their barriers/ drivers/ triggers/ 4Ps preferences ii) Specifically understanding what: - The Heavy Consumers have in common/ try to recruit more of them - Are the addressable lapse/ non-users’ barriers iii) Leveraging strategic segmentation to identify under-served segments & craft ownable strategies to address them iv) Rethinking how to recruit/ retain Consumers with innovative marketing/ point of market entry strategies Etc… Marketing leaders need to have a holistic view on what are the levers across all the 4Ps that will drive the most disruptive return There will be no sustainable (volume) growth outperformance in many FMCG organizations without strenghtening the Marketing Function & giving them formally full 4Ps ownership. That goes against the last decade Doxa but it is essential 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #strategy Frederic Fernandez & Associates

As established and emerging CPG brands head over to showcase their amazing offerings at the last #ExpoEast event, it is worth remembering that what ultimately matters is a pathway to sustainable profit growth. The double-digit pricing "boon" that some were fortunate to ride these last two years is slowly coming to an end. As brands prepare themselves for the more buyer-focused and curated #NewTopiaNow next year, it's a good time to re-focus on fundamentals. Threading the needle by making the tough trade-offs will be key. Yes, a brand firstly needs to resonate on taste (and/or performance), consumer need and messaging. But brands also need to be able build household penetration scale...profitably. And, to do that, brands need to understand and deliberately MANAGE six interdependent sales contribution drivers. Price, Promo, Velocity, Distribution, COGS and Direct Selling Expenses. I still see many emerging brands and even some more established lower middle market brands that do not have a strong sense and handle on their unit economics. It's hard to pull the right levers if you do not know where the value or challenge might lie. The chart below depicts the individual and collective impact that these drivers can have. (This was data for a $5.99 SRP brand with a gross margin of near 40%.) How is your brand positioned? Economically that is. #emergingCPGbrands #CPG #Food #Beverages #Pricing #ProfitableGrowth #grocery