Just Egg Inc. announced that it is adopting the Coca-Cola bottler strategy in China. That begs the question, what is the Coca-Cola bottler strategy?
On March 23, a day when the United States registered 135 coronavirus deaths, Sanderson Farms, America’s third-largest poultry processor, announced one of their workers tested positive for the virus. It was the first reported case from a major meat processor. Three days later, Smithfield Foods joined the fray by announcing an additional case at its… Continue reading
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
How the private equity model drove one of the world’s largest food and beverage companies into a corner.
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
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
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
Innovation is a somewhat nebulous concept in the consumer packaged goods (CPG) industry. Every company will claim innovation is a priority, but very few are good at it. In fact, I would say that most CPG companies are terrible at it. From the WSJ Gum makers are mixing everything from vitamins to candy into their… Continue reading
Amazon has engulfed nearly every aspect of retail and is positioned for more. Its North American sales have quintupled since 2010. Between 2015 and 2016, Amazon captured well over a third of all American online retail sales—including 43 percent in 2016. Moves to vertically integrate its supply chain by solidifying an ocean freight license, marketing in-home deliver, and… Continue reading
It’s 2017 and the impossible has happened. I agree with Ross Douthat. Douthat is an op-ed writer for the New York Times. He shouldn’t be. He once argued that people waiting longer to have children is “a decadence that first arose in the West but now haunts rich societies around the globe.” He spent most… Continue reading