Mario DiFalco’s Post

Recent research by the British Brands Group (BBG) and Europanel highlights a significant #innovation deficit in the European grocery sector. Of 18,167 product launches over three years, only 2.1% were deemed truly innovative. 87% of distinctive innovations originating from brands rather than retailers. Why is it so? 👨🚀 High Risk and Failure Rates: Distinctive innovations carry significant risks, with 80% of new grocery launches failing. The investment in R&D and creativity required for such innovation is substantial, which not all companies can afford or are willing to commit to. 📉 Short Market Penetration: Even successful distinctive products often see a decline in market penetration after the initial launch phase, making it challenging to sustain their presence. 🏗 Preference for Incremental Innovation: Many brands focus on incremental innovation to satisfy retail partners and protect against delisting, as small tweaks are often enough to keep the brand fresh. 😖 Complex Consumer Acceptance: Truly new products need to build consumer awareness and acceptance, which takes time and may not always be successful, leading brands to prefer safer, incremental changes. Global Food and Environment Institute, University of Leeds

Innovation is crucial, but is it really happening across the CPG industry? 🤔 New research reveals only 2.1% of 18,167 product launches qualify as 'distinctive' innovation. While big brands like P&G and Mars Wrigley emphasize the importance of innovation, most efforts tweak existing products rather than breaking new ground. So, why push the boat out? Because innovation drives sales – with top manufacturers seeing 19% of sales from new products. Read more on this thinking below 👇 #GroceryTrends #BrandInnovation

Innovation is a word that gets tossed around a lot. While we all know what it means in the most general sense, defining innovation in the fast-moving consumer goods (FMCG) space, the nuance of the word becomes more apparent. unstuck principals Stefani Bardin and Peter Bodenheimer discuss a recently published list of innovative products in the food industry and break down the different types of innovation represented. #foodtech #foodinnovation #fmcg

Bain & Company has published our 2024 Insurgent Brands report, highlighting the set of brands driving innovation and disruptive growth in the Consumer Products sector! Shoutout to The Long Drink Company, founded by Bain alumni Mikael Taipale, recognized as one of the leading players to watch in the alcoholic beverages space. This further underscores the entrepreneurial spirit and innovative drive fostered within the Bain community! Learn more about them here: https://lnkd.in/d6zVaEtW Dive deeper into the report to uncover key trends and strategies shaping the future of consumer products: https://bit.ly/3v8bBFT #insurgentbrands #consumerproducts #marketinsights #atBain

The title of this article says it all. Consumers' desire for healthier, more sustainable products continues to grow. CPG brands are renewing their appetite (and investment) for innovation in order to meaningfully grow and stay ahead of the competition. Illuminate Growth Partners provide clients with added flexibility, innovation capabilities, and a true competitive advantage. From advisory services, custom projects, and fractional resourcing, we have solutions for any client need. Contact us at [email protected] to learn more. #innovation #emergingbrands #illuminategrowthpartners https://lnkd.in/gdUNY9ey

Double down on your core products or look to innovation for CPG growth in 2024? Probably depends on your category, however not everyone is reeling back innovation in this inflationary market. With a plethora of private label and start-up options available, consumers and retailers are still looking for on-brand category innovation sparking growth. #brand #innovation #design

An interesting read from Jonny Forsyth and the team at Mintel, looking at how the Consumer Packaged Goods industry has moved from innovation towards renovation since 2019, how AI has lowered barriers to entry for new players, and how the Middle East, Asia and Africa are now innovation leaders in the industry.

Bain & Company has pinpointed 97 insurgent brands revolutionizing the FMCG sector in the US this year. These trailblazers not only highlight innovation hotspots but also offer strategic insights for achieving sustainable growth amid industry challenges. A few highlights that caught my attention: "These brands captured nearly 20% of incremental category growth" "Insurgent brands had the greatest impact in the nonalcoholic beverage category, with companies such as Celsius, Prime, Cellucor, Ghost, and Alani Nu accounting for 3.4% of market share but capturing more than 35% of the growth." "Five of this year’s insurgents reached sales of half a billion dollars or more" "Most promising are those with the highest rates of velocity-driven growth, which includes brands such as Goodles, TruRanch, Carbliss, Mike’s Hot Honey, Bizzy Cold Brew, and Odele Beauty." "As consumers seek meaningful value propositions for the prices they are paying and as innovation by large FMCG companies remains limited, insurgents are well positioned to earn an even greater share of the growth" Thanks for sharing, Asha Vyas!

TLDR: CPG Innovation is IN big time. M&A growth is still happening, but it's for "the lazy." 🤔 Bravo to Nestlé Danone The Hershey Company, for investing in smarter innovations. Protect your brand margins and build distinctiveness. Fight against private label eating your lunch. It's called investing for a reason . . . it pays off if you do it right. I've seen this inside big organizations. The M&A group has been rebranded back into an innovation incubator after years of just doing brand acquisition to drive growth. #branding #brandstrategy #brandinginspiration #cpgbrands #innovation

With all the Autumn Statement coverage, you may have missed the latest FMCG Demand Signals report, which tracks consumer demand in the UK, France, Germany, Italy, Netherlands and Spain.  As Ananda Roy highlights, the report brings bad and good news, with consumer spending down, but a return to volume growth possible with the right playbook. If you are a brand owner you will be concerned that private labels continue to take share. If you are a Retailer you will be concerned with the 22% reduction in innovation. Circana suggests that the growth playbook will need to include innovation, a serious approach to sustainability and an acknowledgement of shopper price sensitivity.  I would add that taking a page from Diageo’s playbook and remaining committed to long-term brand building will also be critical. A really useful report that is worth a read. The link is in the comments.