Rena Nickerson

CPG Is Constantly Changing - Except When It's Not (part 19 in a series) Why Are 75% of Your Trade Promotion $'s Going to Increased Others' Profitability? Seems crazy, no? Isn't the role of trade promotion in CPG rather simple when you break it down? Isn't it to get consumers to look at your brand, try your brand and keep putting more of your brand in their shopping carts, their cars, their homes and eventually their stomachs. You're spending a lot of $ to do this to, right? Look at the last invoice you sent out and what you got back - most of that difference (deduction) is trade promotion. Now, look at the difference between your list price and your net price on the invoice going out. There might be a 15% difference on a lot of them. Now add the two together - probably well over 25%. What are you getting for this? No, in real results. By retailer. If you're like most, 15% of this 25% you are spending on trade is for OI's. Recognize 15% once a quarter is pretty much 15% on everything - analyze it. What are you getting for it? No, not in 'soft' benefits - this is business. In real extra cases. With details. I'd challenge any brand or broker to challenge this will real facts and feel very confident >90% cannot do this. Next, look at all the fees and other charges that are related to scans, MCB's, etc. It's significant. Probably over 5%. Well, just with that, we're at 75% of your trade promotion budget - that's close to 20% of your gross revenue - you could probably use this for other brand building activities, no? Maybe to get consumers to look at your brand, try your brand and keep putting more of your brand in their shopping carts, their cars, their homes and eventually their stomachs. Seems crazy, huh? Let's develop some objectives, a strategy and a process to address this - quickly and painlessly - before 2025 planning hits. We'd look forward to assisting. __________________________________________________________________________________ For more information visit us at www.schroedercpg.com, contact me at [email protected] or just send me a DM - why wait?

3

1 Comment

Unintended consequences. Coca-Cola Canada Bottling Limited first made a move to from black labels for Coke Zero to a more subtle red label and then added limited editions and extensions like Spiced and Cherry tht also have labels that are only subtly different from its core Coca Cola Original bottle. In this photo from 7-Eleven Canada there are seven types of Coke products supposed to be on the shelf including at least three Coke Zero facings. The staff had loaded the wrong bottles in the Coke Zero spot and none was visible or shoppqble to me on this visit. My preference was Coke Zero but the saw went to Pepsi Zero that was still distinguishable in its black label. Packaging integrations makes sense but the implications need to be taken right down to the point of sale. Is integration worth causing out-of-stocks at retail?

50

8 Comments

As the demand for high-protein, on-the-go snacks continues to surge, Conagra is positioning itself at the forefront of this enduring trend. Conagra Brands, the force behind iconic names like Slim Jim and Duke's, has strategically expanded its portfolio with the acquisition of Sweetwood Smoke & Co., makers of Fatty Smoked Meat Sticks. What makes Fatty's unique? Their meat sticks boast high protein, low sugar, gluten-free ingredients, and no MSG—exactly what today's health-conscious consumers are after. Since their major 2018 acquisition of Pinnacle Foods, Conagra has been laser-focused on strengthening their core business and managing debt, keeping acquisitions on the back burner. But when the right opportunity comes along, especially a bolt-on that aligns perfectly with market trends, they were ready to act. With the meat snack market projected to grow at nearly 7% CAGR through 2033, this acquisition is a smart move for Conagra, bolstering their position in a booming segment. At Greenwich Capital Group LLC, we anticipate a significant increase in strategic-driven M&A activity within the F&B category in the coming year, likely surpassing previous levels. Mars' recent acquisition of Kellanova underscores the growing trend of large strategic acquirers making bold moves to enhance their market presence and diversify their offerings. This acquisition is a clear signal that leading players are not just pursuing growth, but are also keenly focused on aligning with evolving consumer demands for health-conscious, innovative products. We expect to see more deals of this nature as companies seek to strengthen their positions in an increasingly competitive and dynamic market. #MergersAndAcquisitions #FoodIndustry #FoodandBeverage #ConsumerTrends #InvestmentBanking https://lnkd.in/gT4AWgMW

25

And that’s a wrap on CHFA Now. Like many other CPG folks, I spend much of my time cranking away behind a computer, so one of my favourite things about industry trade shows is connecting IRL with other CPG friends and letting loose together. But oxytocin spikes aside, here are just a few of the nutrition/better-for-you trends I noticed: 💦 Electrolytes: whether added to drink mixes or collagen, or straight-up electrolyte powders, a focus on hydration was definitely happening. 💪 Protein: numerous leveled up protein powders in the supplement aisle (fermented, increased digestibility etc), loads of meat and faux meat jerky, RTD and powdered bone broth, and snacks + treats with added protein. ☕️ Better coffee + not-coffee: from real coffee with added herbs to coffee substitutes made from botanicals like chicory, dandelion and barley, more joy with less jitters was definitely on the menu (as someone who elevates my morning coffee with chicory and functional herbs, I dig this trend). A few shout outs (all happen to be Canadian products 🇨🇦): Beck's Broth - I was late to the game trying their instant bone broth beverages (coffee, hot chocolate + matcha), but wow. If you’re wondering (as I was), there’s zero bone broth taste - just like adding collagen to your favourite brew. These powders pack 14+ g of protein per serving. I think I found my new way to restore post cold plunging, and I’m excited to experiment with them in both savoury + sweet recipes. Good stuff Beckie Prime Domenique Mastronardi! Nummy Creations - they're instant herbal coffee alternative has great flavour with depth and body, and I love that it dissolves nicely in cold water for easy caffeine-free iced lattes. It comes in a few flavours like caramel and pumpkin spice, but the original is more my jam SeedWise grain-free clusters by Ozery Family Bakery - I discovered these last year but have to give a shout out. Sunflower, pumpkin, flax + chia seeds, zero fillers and perfectly sweet + salty. 7 g protein, 7 g fibre and only 1 g sugar per serving. When I don’t have time to make homemade nibbles, these are my go-to! Legend Water Co. - the water category might be saturated, and I never thought I’d say this about water, but I love this water. It’s alkaline, mineral-rich spring water from the Canadian Rockies. It comes in recyclable cans, not microplastic leaching plastic bottles, and I don’t get that “can taste” that I do with most other canned drinks. Plus, they’re soon releasing a can with a resealable cap - super neat. It tastes amazing, and I don’t know if it’s the minerals, but it actually has a lovely mouthfeel. What trends + faves did you all see? #chfa #tradeshow #cpg #productinnovation Canadian Health Food Association

57

9 Comments

I am going to say this publicly one time and one time only. Please stop tarnishing the integrity of the CPG industry with rushing products to the market. What I mean by this is lying to customers, followers, influencers etc about your ingredients and nutritional analysis or lack there of. This effects other upcoming entrepreneurs by creating a illusion that the CPG is easier than what it really is. As a black man in this industry I take great offense to this because black owned businesses have to work very hard to get products into retail as it stands. In the past I've been told West Food Brands wasn't professional, however we've never lied to a customer not once especially about testing or ingredients. Come to think of it we've sent customers free products and apologized for any delays or inconvenience on our end. I don't care about your race or sexual orientation just please remember to have integrity in business. Going around lying to customers and followers about your products or ingredients is not cool. If you have not done proper lab testing of your products please take some time to get those things done. You should not be mass promoting on social. This post may come off has harsh but I rather you not lie to a customer, and get sued or worse someone gets sick. The CPG industry is not a get rich quick business it takes time. Any business you start takes time. I have been on LinkedIn more often the last year or so, and have seen many brands just dissappear no Instagram page now or posts on LinkedIn from the founders. The one thing I will tell you about business it's all about integrity and strong business acumen. You can have all the followers/hype you want and be out of business next week. Slow and steady wins the race. #community #engagement #collaboration #blackowned #blackownedbusiness #smallbusiness #customerservice #integrity #followers #development #creativity #mindset #cpg #strategy #operationalplanning #linkedincommunity #collaboration #wealthgap #culturalawarness #diversity #inclusion #financialinclusion

71

17 Comments

"Social media has democratized attention; it's now a privilege to earn it." Wow, what an epic masterclass in storytelling from Jake Karls of Mid-Day Squares during a session with SKU yesterday. Today, emerging brands can generate millions of views on social media to capture the elusive attention of their audiences, evening the playing field. Back in the day, the name of the game was spending millions on media to get this same attention. This isn't a post about "going viral" though (which is not a strategy, btw). It's about emotive storytelling. Mid-Day Squares created a reality show on the entrepreneurial journey, telling the story of David vs Goliath. And you can't help but root for the underdog through the ups, downs and the hilarity in between. They stand for something bigger than their product benefits because while you can copy graphics, ingredients, claims, etc. you can't copy how you make people feel. Here are some of the brands elevating the playing field by standing for something bigger than their product benefits: 🍫 Mid-Day Squares: David vs Goliath (more than a better-for-you Hersheys) 🌮 Siete Family Foods: togetherness (or as they say, "juntos es mejor") 🥤 OLIPOP PBC: the simple joys in life (watch out Coke, they're coming for your happiness) 🥣 GOODLES and 🌈 Unreal Snacks: being a kid again! (adulting doesn't have to be so serious) 🍍 King's Hawaiian: aloha vibes (who needs to go to Hawaii when you can bring Hawaii to your kitchen?) If it doesn't evoke emotion, what's the point? Who else do you think is winning the storytelling game? #cpg #storytelling #branding #socialmedia #marketing #entrepreneurship

28

8 Comments

I think consumer feedback is often under used by emerging CPG brands… Coming from a Kraft Foods general management upbringing and then experiencing start-ups for many years, I’m often thinking about which “big company” practices could bring value to young emerging companies while not screwing up their great entrepreneurial culture and founder brilliance. The one area I continue to see a gap in is “entrepreneurial” consumer feedback/market research—the lack of fast/low cost consumer research options (or even confirmation research) discussed to prevent a low velocity SKU to get delisted, to maximize brand communication, and avoid wasted spend or lost opportunity on the back end. There are some great research companies out there, but their costs (while valid and worth it) are just not in the ballpark for what many founders want to spend for or go through the time on. Sometimes it’s a lot more natural for founders to go with their gut and not get bogged down by research. And I totally get this, and it does work in many instances.   I just wish there were more options out there to efficiently confirm purchase interest between two packages or between new innovation ideas to complement founder gut. In the end, it could save the emerging brand money…. Thought I’d reach out to the linkedin community, PLEASE not from research companies selling their research, but from founders/emerging brand marketers who have been through this dilemma and have found some consumer feedback very helpful and fitting for emerging brand bootstrap budget and speed (even if their own tools or alternative ways they’ve brought in consumers more)?  This sharing might help more companies maximize their moves in the future…so hope it helps… thanks! #ConsumerFeedback #jcbgrowth

73

17 Comments