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If you’re an emerging natural/organic CPG company, UNFI distribution to Whole Foods Market is going to be a cost center for you, not a profit center, especially if you have plans to grow your brand there (why wouldn't you). This is something that not many people in this industry really want to say nor admit, but it’s true. It can be good for marketing and visibility but don’t plan on making much money that way or using that model alone to scale to meaningful profitability. The more you scale that model the more it will simply cost you. This isn’t meant to throw shade at either of those companies (there are distributors and retailers that can be interchanged there). These are just factual elements of the system that has been created to get products on the shelf. Know where you can make money. Know where you can't. Choose your path wisely.

Transparency in the food supply chain—is it needed? Of course! As far as consumer preference goes, the demand for transparency stands tall. Consumer insistence on knowing the intricacies of sourcing, production, and safety is steering the course of the food supply chain. In my opinion, the call for transparency isn't a passing whim; it's an expectation that’s set to intensify. Companies that recognize this shift and proactively provide comprehensive information will without a doubt carve a resilient path in the competitive landscape. See, the challenge isn't just meeting regulatory requirements; it's about building an unassailable bridge of trust. Industry players need to disclose information but to do so in a manner that screams confidence. Striking this delicate balance between disclosure and assurance is the spine where the future of consumer trust pivots. Companies must view transparency not as a mere obligation but as a strategic imperative. Those who see it as an opportunity to fortify their relationship with consumers will emerge as pioneers in this new era of conscientious consumption. What do you think - are consumer patterns driving the need for transparency? Comment below. To find out about top stories making the headlines, check out my latest Weekly Market Watch🔍: https://lnkd.in/eKtiYq-d #FoodChainID #foodandbeverageindustry #foodsupplychain

The Illusion of Choice As consumers, we believe we have a world of choices at our fingertips. But take a closer look during your next grocery run – behind the sea of brand logos, a mere 12 corporations control over 550 global consumer brands, including many household names. Coca-Cola, Nestlé, PepsiCo, Procter & Gamble, and Unilever lead the charge, demonstrating the immense concentration of market power. From beverages to personal care, these conglomerates are present in almost every aspect of daily consumer life. With such widespread control, these companies can significantly influence market trends, consumer behaviour, and regulatory standards. For professionals in business and marketing, understanding the landscape of brand ownership can yield insights into competitive strategies and investment opportunities. An Uneven Playing Field In this landscape, how can local entrepreneurs and businesses realistically compete for limited shelf space and consumer mind share? Focused on maximising existing product lines, will there be sufficient incentive to develop groundbreaking innovations tailored to the market? How can local entrepreneurs and businesses realistically compete for limited shelf space and consumer mind share? The future of our consumer market lies in our hands as the people. Let's reflect on the illusion of choice and align on measures to empower real change. #SupportingLocalBusiness #Innovation #ConsciousConsumption #MarketDiversity

As the economy stirs back to life here are my thoughts on what it means for drinks brands in my latest column for Global Drink Intel magazine. Time for brands to build optimism! Read more here: https://lnkd.in/epFsvsZQ

"Cheapflation" is when companies increase prices while lowering product quality using cheaper or lower-quality ingredients. It's a strategy to maintain competitive prices but compromises product quality. The impact of #Cheapflation on consumers is two-fold, as product quality appears to decline while prices increase. These alterations by manufacturers can essentially go unnoticed by consumers. Marie Humbert explores how this suspicious practice is a strategic move that challenges the ethical standards of consumer relations 👉 https://lnkd.in/edd_rk4n #Inflation #Grocery #Retail

Is Hormel Foods prepared to tackle the challenges of inflation, supply chain disruptions, and shifting consumer preferences? Jim Snee, CEO of Hormel Foods, offers insights on the company's strategies to navigate these issues. Learn how they are adapting, building partnerships, embracing sustainability, and leveraging technology in this volatile landscape. #FoodIndustry #SupplyChain #ConsumerPreferences

Successful CPG companies will be focused on the long-term. Those that invest in the future will be well positioned to take advantage of the opportunities that arise in the next twelve to eighteen months.

Pricing gains diminish & volume losses remain As Warren Buffet put it: 'A rising tide floats all boats….. only when the tide goes out do you discover who's been swimming naked' That is what we are already seeing & we will see more of it as we progress into the year Few comments on the dynamics across verticals/ top companies: - Beauty Personal Care (BPC) continues to outperform driven by mass, dermo & in a lesser extent professional beauty. L'Oréal, Coty & Beiersdorf continue to outperform while The Estée Lauder Companies Inc. is now starting to bounce-back. Shiseido is the most challenged - Alcoholic Drinks led by (all) Beer bounced-back in volume. AB InBev reported very encouraging results considering its unique context. Spirits (all) digest now the remarkable 3 years they had - Consumer Health Care (CHC) underperformed (driven by a weak Cold & Flu). It is true for all players although Bayer | Consumer Health & Reckitt Health underperformed the most - Food & Beverage is under tremendous pressure with the usual US-centric food companies (Kraft Heinz, WK Kellogg Co, General Mills...) but also now the Impulse FMCGs that used to outperform - Mondelēz International, PepsiCo...) - Household remains on average resilient although few companies record large volume losses (The Clorox Company, Procter & Gamble baby) More details in our Q1 2024 results publication: 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀: 𝗤𝟭 𝟮𝟬𝟮𝟰 𝗥𝗲𝘀𝘂𝗹𝘁𝘀 𝗜𝗻 𝗥𝗲𝘃𝗶𝗲𝘄 - 𝗧𝗵𝗲 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗧𝗶𝗱𝗲 𝗜𝘀 𝗡𝗼𝘄 𝗚𝗼𝗶𝗻𝗴 𝗢𝘂𝘁 https://lnkd.in/eqtWZjxV Time to refocus for all on organic (volume) growth Exciting times To read our last publication on how to accelerate organic (volume) growth: 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/eV5d39VE 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y hashtag #fmcg #cpg Nestlé The Coca-Cola Company PepsiCo AB InBev Unilever Procter & Gamble Mondelēz International Kraft Heinz L'Oréal Danone The HEINEKEN Company Bel Reckitt Kenvue Sanofi Haleon Pernod Ricard Diageo General Mills Campbell's JDE Peet's Carlsberg Group Ferrero Henkel

“ (...) While supply is on the rise as global competition intensifies, there is no clear evidence of an increase in demand relative to supply, and statistics even point to declining populations in many developed markets. The result has been accelerated commoditization of products and services, increasing price wars, and shrinking profit margins. Industrywide studies on major American brands confirm this trend. They reveal that for major product and service categories, brands are generally becoming more similar, and as they are becoming more similar, people increasingly select based on price. People no longer insist, as in the past, that their laundry detergent be Tide. Nor will they necessarily stick to Colgate when Crest is on sale, and vice versa. In overcrowded industries, differentiating brands becomes harder in both economic upturns and downturns. All this suggests that the business environment in which most strategy and management approaches of the twentieth century evolved is increasingly disappearing. As red oceans become increasingly bloody, management will need to be more concerned with blue oceans than the current cohort of managers is accustomed to.” Excerpt From Blue Ocean Strategy - W. Chan Kim In today's dynamic markets, consumer insights and understanding your target audience are necessary to make informed decisions and gain a competitive advantage. Staying ahead requires continuous innovation and updating your product line to avoid falling into bloody red ocean traps.

If 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗴𝗮𝗶𝗻𝘀 𝗵𝗮𝘃𝗲 𝗵𝗮𝗹𝘃𝗲𝗱 𝗰𝗼𝗺𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝗹𝗮𝘀𝘁 𝘆𝗲𝗮𝗿, they are still the main/ sole growth driver on most verticals (i.e., volumes are flat/ negative), yet with 𝗱𝗶𝘃𝗲𝗿𝗴𝗶𝗻𝗴 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 by category: - Food & Beverage continues to struggle (cf. volume developments at Nestlé, Kraft Heinz, General Mills, Campbell's...) - Alcoholic Drinks is bouncing back driven by Beer while all Spirits companies digest now their last 3 years historic growth - Beauty Personal Care continues to benefit fully from the famous 'lipstick effect' & the dynamic fragances category although not all benefit (cf. Shiseido) - Household proves its resilience although some underperform significantly (The Clorox Company, Procter & Gamble baby...) - All Consumer Health Care players remain penalized by the weak cold & flu seasons & US retailers destocking 𝗧𝗶𝗺𝗲 𝘁𝗼 𝗿𝗲𝗳𝗼𝗰𝘂𝘀 𝗳𝗼𝗿 𝗮𝗹𝗹 𝗼𝗻 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 Exciting times To read our last publication on how to accelerate organic (volume) growth: 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/eV5d39VE 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg