Frank Bergin

Politics aside, I think we can all agree that WAY too many direct CPG brands are reeling right now 😥 And it’s truly sad as the founders have put their🩸, sweat and tears into these businesses, which now have: 🏪 Strong retail distribution 🥫 Unique products with true-ish differentiation 😋 Great flavor profile and hedonics 🌀 Relevant and well designed branding 💲 Price points that align with target audience So why are they failing? Three major reasons that I’m seeing: 1) Lack of investor commitment:  Previous standbys in the Food/Bev VC space have not secured new funding or now have alligator-arms when reaching for more funding as they have been ‘burned’ by this category.  So financing has to be more creative and linked to specific milestones.  2) MVPs don’t work in food:  Those who come into the industry hoping to create and launch a ‘minimally viable product’, and then upgrade regularly in the future like they do in tech, are quickly realizing that is not possible.  The regulatory environment, manufacturing, and retail make that much more difficult in this category.  And if you launch a brand that doesn’t do well, consumers and retailers won’t take another look when you upgrade it! 3) Supply chain costs are crazy:  Ingredient costs are increasing weekly for certain raws (e.g. organic cacao), strength of third-party manufacturers (who have full production schedules) and their ability to flex pricing and schedule are impacting businesses, and transportation costs have increased to get products to the end consumer. I’m sure in the future we’ll look back at this period as one of creative survival, innovation, and collaboration, but right now it just sucks 👎 for so many brands and businesses out there and I feel for you. If you are one of these brands or know of one, feel free to reach out 📲 to see if the folks here at Palm Venture Studios would want to take a look.

16

1 Comment

Top 5 tips on building and maintaining strong relationships with retailers to secure shelf space and drive sales: 1. Meeting initial item set-up timelines with incredible accuracy 2. Updating the Retailer on any changes in the supply channel 3. Once establishing the cost of the shelf space, promote and invest to drive sales. Makes no sense to say “ I don’t have enough left to fund the requested programs.” 4. Be smart and be able to frequently review ROI on any tool or program that is used to be sure you are spending marketing dollars efficiently. 5. Continuous Evaluation, Continuous Improvement: The journey doesn't end with a deal. #cpg #retail #shelfspace

2

I really enjoyed my conversation with Kyle & AC a few weeks ago. I invite other brands who are interested in developing their own regen programs to connect so we can build this future together! We broke down how hemp grows, and some of the differences across conventional, organic, and regenerative organic growing practices. We also talked about what doubling down on our regenerative strategy means for both the B2C and B2B sides of the business. Take a listen! 

36

2 Comments

Brandon Thurber, VP of NRS Insights, on RTD Market Growth: In his latest Food and Beverage Magazine feature, Brandon discusses the 35% growth in the RTD cocktail market, backed by NRS data from over 27,000 retailers. RTDs now represent 9% of spirits and 15% of wine sales, highlighting their growing market share. As consumers increasingly prioritize convenience and flavor, RTDs lead to a 60% higher spend per transaction. But with the market evolving rapidly, the critical question is—are you keeping up? 💡Marketers and media teams: curious about how your brands perform in this fast-paced environment? Let’s connect to explore strategies that will position your brand for success. Learn more: https://lnkd.in/exGMwvic #RTDCocktails #BevAl #RetailInsights #NRS #FoodandBeverageMagazine

16

1 Comment

The moderation trend is continuing to accelerate! The NA segment of on-premise beer sales in the U.S. jumped 33.7% over the last 52 weeks with broad-based gains in all 50 states! 💪 📈 🍻 At Partake Brewing we are seeing on-premise operators move from offering 1 NA beer option to now several with macros and craft represented in addition to house mocktails. 🍺 🍷 🍹 This is an exciting time for the non-drinker and moderator alike! Gone are the days of water, juice, milk, and soda as the non-alcoholic options. 🤩 https://lnkd.in/gibbdbPB

68

8 Comments

“For industry, and for consumers, the hallmark of the food safety system is rooted in science. We have to follow the science around what is safe in the food supply so that when consumers walk into the store, they have confidence that what they’re giving themselves and their family is safe to eat.” Hear Sarah Gallo's full interview on Food Processing's "Food for Thought" podcast below! #WorldFoodSafetyDay

6

Do the right thing.

32

1 Comment

Essentia launches first-ever flavored, functional water. 3 Hydroboost varieties feature B-complex vitamins. Essentia Water is taking hydration to the next level with the all-new Essentia Hydroboost, the brand’s first-ever flavored and functional water innovation designed to keep consumers hydrated while pursuing their goals, it says. #Beverage #beverageindustry #beverages #FMCG

2

How are consumers feeling about the economy today?   My hot off-the-press data from last week shows April's consumer sentiment inching more positive. We’ll take any good news we can get!    23% of people report spending as usual, while 31% report having stopped spending. The gap between the two groups has narrowed from 11 pts last month to 8 pts in April. Higher positivity leads to more spending. As we move through Spring and into Summer, we'll be monitoring. Stay tuned, more insights and implications to come. Thanks Victor Fernandez Mary Hamill GuestXM - Now Powered by Black Box Intelligence™ for sharing my data in your Q2 State of the Industry Webinar!
#economy #spending #journeybacktojoy

9

"What we do now is good enough..." Well, is it really? Beer glass rinsers were good for their time, because it was the best of what was available to clean bar tools. They were repurposed to clean bar tools because there was a definite need in the market. But when you use equipment for something it was never designed for, you end up with problems. Beer glass rinsers: ❌ are inconsistent ❌ waste a lot of time ❌ require manual operation ❌ only rinse one vessel at a time ❌ do not rinse the outside surfaces of vessels And the list goes on and on. That's why I invented a custom, bespoke solution to clean bar tools. Auto-Rinse™ is everything a beer glass rinser is trying to be: ✅ fast ✅ durable ✅ automatic ✅ easy to clean ✅ rinses 2 tins and a strainer simultaneously And the list goes on and on... If you really want the most efficient way to rinse bar tools, you need to consider Auto-Rinse™ for your operations. Saving seconds per drink build = getting your servers back on the floor so they can sell. Learn more here: https://lnkd.in/et9MuYD #bars #restaurants #cocktails #specialtycoffee #bubbletea

2

Molson Coors is divesting its four craft beer brands and shutting down its own craft label as the brewing behemoth exits an industry it once longed to access. The whiplash further signals that big beer makers are no longer enamored with craft brands as that slice of the market posts negative growth for the first time in its history. Molson Coors announced Tuesday the sale of its craft beer portfolio — Hop Valley in Oregon, Terrapin in Georgia, Revolver in Texas and Atwater in Michigan — to Tilray, a Canadian company with interests in cannabis and beer. In addition, Molson Coors announced it would shut down its Colorado-based, in-house craft brand AC Golden at the end of September, according to a memo obtained by Axios. Molson Coors chief commercial officer Michelle St. Jacques said the moves allow the company to focus on its premium national brands, Blue Moon and Leinenkugel, as well as non-beer alcoholic beverages, such as seltzers and hard cocktails. "As we map our path forward, we recognize we need to sharpen our focus on the segments where we see the greatest opportunity for our collective businesses," she wrote in the memo to wholesalers. Global beer makers like Coors and Anheuser-Busch rushed to acquire craft beer brands at the height of their boom a decade ago, but fortunes have shifted. The overall beer industry sank 5% in production volume in 2023, but saw retail sales increase 3%. Meanwhile, craft beer production decreased 1% — its worst number since the industry came into view in the 1970s. AB InBev divested eight craft brands, including Breckenridge, 10 Barrel and Shock Top breweries, to Tilray last August. Constellation Brands sold its craft breweries — including the billion-dollar Ballast Point — in recent years. Tilray's two acquisitions from big beer makers now positions the company as one of the five largest craft brewers in the U.S. "Tilray Brands plans to continue to invest in the future of these craft breweries, accelerating their growth and capturing a wide range of new market opportunities," Irwin D. Simon, Tilray's CEO and chairman said in a statement. "Tilray Brands is a beacon for craft brands, and we are committed to driving their growth and success within our portfolio." To earn the "craft beer" seal, it must meet the definition of small and independently owned, set by the industry's trade group, the Colorado-based Brewers Association. Now that Tilray is the owner, all four of its new brands will qualify as craft — a symbolic but significant indicator to consumers.

1

Headline not matching the accompanying story I’m afraid. Jon Moramarco calls the data “muddy” at best. My own impressions are that many wholesalers have cut their post-pandemic inventories by reducing SKU counts. This by extension disadvantages the smaller producers who consume as much staff time as the larger ones and often sell products with less predictable sales trajectories. There are advantages to marginalising smaller producers both in staff time and capital, but large producers have the power to dictate their wholesaler’s inventory levels sometimes under the threat of pulling their lines with potentially devastating consequences. Wholesaler inventory levels are not necessarily an indicator of the health of the market or consumer behavior.

2

1 Comment

CPG Friends, I have discovered a platform that is on a mission to offer a more fair distribution method to help build your brand while also having merchandising and re-order built in and handled by their team. They are focusing as of now on convenience stores, liquor stores, gas stations, and other independents. And so far from my vetting process and speaking for hours with the CEO, they are the real deal and offer really great solutions for small, emerging brands and even large brands that are doing massive sales. We’ve all heard the pain points on here from countless brands when dealing with distribution in general in this business from chargebacks, freight billbacks(sometimes putting brands out of business) If I could help link your brand with a better solution to grow your company and retain all the sales dollars in your pocket, this could be potentially groundbreaking and flip the traditional model as we know it ON ITS HEAD. Please DM me and happy to share more information about it.

94

29 Comments

The Krispy Kreme - McDonalds partnering deal is going to be a three-year brand growth masterclass in the flywheel brand growth power of physical and mental availability. For Krispy Kreme: Current 2024 Points-of Access (US): 7,775 Incremental 2026 McDonald's Points-of-Access(US): +12,000 Global longer term opportunity: + 100,000 Why is this believable? Solid Krispy Kreme mental availability platform to re-energize and re-invest some creative advertising to support that expansion. This is going to be a household penetration tsunami for the brand. (Credit to Ehrenberg-Bass Institute for physical and mental availability frameworks, cool laws and other amazing BS-busting research.) Important question for Byron Sharp Jenni Romaniuk Prof. dr. Koen Pauwels: Donuts or Doughnuts? https://lnkd.in/gHgZzXkF #Brandgrowth #mentalavailability #physicalavailability #brands #QSR

7

1 Comment

If you missed our April Executive Forum for Leaders in the Alcohol Beverage Industry, "3 ACTIONS EVERY WINE & SPIRITS LEADER CAN TAKE IN THE NEXT 60 DAYS TO QUICKLY BOOST DISTRIBUTOR SHARE OF MIND" we had a robust discussion about the state of the business, which then was in complete and chaotic decline. And we also talked about what was in our control. We will be sharing a few of the breakthrough revelations with you over the next few weeks right here... BREAKTHROUGH REVELATION #1: IDENTIFY KEY MARKETS AND REPS Don’t spread your portfolio, budget, time and energy too thin (the US is the equivalent of 50 different countries with different state legalities). Especially during tough times. Do the data research on your brands and find the few key markets that your distributors can focus on. Get to know those market reps that can move the needle. All the way down to the feet on the street level. This is your team. Build trust and credibility with them. If everyone is in New York, then find your other key markets, try to carve out your territories or specific areas of big cities. Own your relationships with reps and retailers. Retailers are being more conservative with bringing in new products as they follow the next great thing. You need to be influencing their choices. And the landscape is changing again (!!)...so, at our next invitation-only Executive Forum for Leaders in the Beer, Wine & Spirits Industry, Newborn Evolution will be sharing three strategies to help your teams, partners and customers to remain resilient, confident and able to navigate through this uncertain and unstable landscape. Join us on Friday, July 26th, at 11:00am ET for a robust virtual discussion on this topic. Why you should consider joining the conversation: -Our Executive Forums are exclusive and by invitation only -We will be sharing expert insights during the forum from decades of experience in the Beer, Wine & Spirits Industries -You will have the opportunity to have real-time conversations with high- level leaders like yourself, in the Alcohol -Beverage Industry who are facing similar challenges -This is a great opportunity to expand your network leadership skills -All attendees will receive a high-level recap of the most pertinent key take-aways If you would like to request an invitation for yourself or someone at your organization who may be interested please email us at Concierge@NewbornLeadershipEvolution.com and say “July 26th Executive Forum” and we will send you details. You can also find out more in the link in the first comment below. #Wine #Spirits #Beer #AlcoholBeverageIndustry #winetrends #spiritstrends #keyaccounts #strategy #businessplan

1

1 Comment

Private label products in the retail industry in the USA are increasingly overlapping with #brands. Major retail players in the US, such as Walmart and CVS Pharmacy, are shifting away from the traditional plain labeling and simple #packaging for their #privatelabel programs. These changes are intended to appeal to shoppers seeking value without sacrificing quality, replacing the previous focus on simplicity and cost-saving. With better ingredients, clean packaging, vibrant graphics, and approachable logos, retailers now aim to attract high-income shoppers and the budget-conscious crowd without passing on the cost of #marketing strategies to their clients and suppliers. This shift is not just about aesthetics; it's also about fundamentally changing the definition of private label. Read more on this article by Packaging World #futureoffood #futureofretail

5

News: 📉 Boston Beer Co. sees a 6.4% drop in shipments for Q2.  The continued growth of Twisted Tea helped offset the decline in Boston’s beer portfolio. Twisted Tea now accounts for 57% of The Boston Beer Company total volumes in the latest Nielsen data. Click to get the full story ➡️ https://zurl.co/VbMv #CraftBeer #BeverageIndustry #BostonBeer #FinancialReport #BeerNews #CraftBrewery #BusinessUpdate #IndustryInsights #BrewingBusiness #MarketTrends

5