Retailer Shelf Space: Another potential loss for CPG Manufacturers

In theory, the relationship between CPG manufacturers and retailers is one of mutual interest and cooperation. A retailer needs healthy manufacturers to stock their stores with quality products that consumers want. One of the subtexts to my earlier article on Dean Foods is that retailer consolidation is weakening the power of manufacturers to the point… Continue reading

Revenue Growth Management: Coca-Cola profit rises investment pays off

Coke announced it achieved or exceeded revenue and profits expectations for 2019. This came in stark contrast to 2017 when it looked like the Atlanta based fast-moving consumer product company faced an existential crisis over sugar. Consumers didn’t want to drink it anymore—bad news for a company whose portfolio revolved around sugary drinks. In two years,… Continue reading

Why did Dean Foods go Bankrupt? A Porter Model Analysis reveals the truth.

In November 2019, during an economic expansion, Dean Foods declared bankruptcy. The nation’s largest dairy company, with the number one white and chocolate milk brand, could not make money. In January 2020, Borden Dairy followed suit. Most post-mortems dealt with the fact that both companies produced dairy — a product that fewer and fewer people… Continue reading

P&G to buy Billie. It may work, but not for the reason you think

In early January, P&G announced plans to buy Billie, a subscription-based, direct-to-consumer brand focused on women razors. Female razors have long been a consistent revenue generator for CPG companies—not due to product quality—but because of a strange mix of sexism, product development and market concentration. The US female razor market is a $1 billion industry… Continue reading

Counterfeit products on Amazon is harming CPG innovation

Combatting counterfeit products on Amazon is one of the most significant issues facing brands today. According to a Gartner-L2 study, 1/3 of all reviews for products listed by third-party sellers contain the words “fake” or “counterfeit.” Marker recently ran an interesting article on S’well, the fashionable water bottle company. The company, which reached sales of… Continue reading

Fair Trade: The arcane reason small retailers can’t compete with chains

If you want to understand why small retailers struggle in modern America, you need to understand one thing: fair trade laws. Today, fair trade is typically presented in the context of international trade. Essentially, a regulation that allows producers in the developing world to compete with large multinational conglomerates who have massive scale and purchasing… Continue reading

Consumer Packaged Goods and Quality Issues on Amazon

In 2020, one of the most significant issues facing consumer packaged goods manufacturers is what they should do about Amazon. Amazon controls about 50 percent of the American online market. That means that a brand’s Amazon strategy often becomes their overall e-commerce strategy. At first glance, consumer packaged goods and Amazon seem like they should… Continue reading