G.E. was the definition of a conglomerate–and now it’s not. Learn what the corporate structure is, its’ strengths and weaknesses through a G.E. case study.
G.E. exits consumer light bulbs and the definition of a conglomerate
Posts Tagged → CPG
Will Coronavirus Destroy Small CPG Companies?
Large CPG firms have weathered the coronavirus storm fairly well, but what will happen to small CPG companies?
Information lag. Coronavirus and the CPG supply chain
Just one week after March 15, 2020, when President Donald Trump claimed the US had ‘tremendous control’ of the coronavirus pandemic, California Governor Gavin Newsome ordered all state residents to stay home. “The order,” the New York Times reported, “represents the most drastic measure any governor has taken to control the virus.” Similar orders may become… Continue reading
What is a CPG company? It’s more than just a brand.
Consumer packaged goods (CPG) companies are everywhere. However, most consumers know the brands not the companies. Sprite, Tide, and Moleskine notebooks are all packaged goods brands purchased and used by millions every day. Coca-Cola, P&G, and Moleskine are the CPG companies that produce them. From an operational perspective, a CPG company manufactures products, sells them… Continue reading
The Campbell Soup Company — Processed food growth in a fresh world
Last week the Campbell Soup Company announced that its recent investment in soup marketing paid off. This news is somewhat surprising. Nearly all research shows that consumers want fresh food. According to IRI, in 2017, fresh sales accounted for approximately 30.5 percent of all food sales, with produce, bakery, and deli meats accounting for most… Continue reading
Kraft Heinz Is Dying a Death by a Thousand Cost Cuts
How did things go so wrong for Kraft Heinz, one of the nation’s largest, most recognizable food companies that’s backed by one of the nation’s most beloved investors? In February, Kraft Heinz announced a 2.7% decline in net sales for 2019. This comes just one year after the company wrote down $15.4 billion because legacy… Continue reading
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
When negative externalities threaten Dart Container, it threatens back
Negative externalities are an economics concept that is not often talked about, but incredibly intuitive. A negative externality is when an interaction between two parties harms a third party. If I buy new speakers from Sonos, Sonos gets money, and I get speakers. If I play them at all hours of the night, my neighbor… Continue reading
Reading the tea leaves; Unilever looks to move Lipton
Unilever, the world’s largest tea producer, is looking to get out of the tea business. From Reuters: The company said the review was triggered by the sales slowdown of traditional black tea in developed markets as consumers shift towards herbal tea. Black tea is the dominant part of Unilever’s tea business, Pitkethly said, selling in… 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