Insurgents are real and growing 10X faster than their big company competitors. Startups gunning for big opportunities are winning. According to Bain & Company these young companies captured nearly 20% of incremental category growth in 2023 vs just 6% in 2022. If I was the CEO or CMO of an incumbent (read Fortune 500 company), I'd be worried. There is growth in my categories but I may not be the one capturing the benefits of the growth. Insurgent brands had the greatest impact in the nonalcoholic beverage category capturing more than 35% of the category growth. I wonder if companies like The Coca-Cola Company pulling back from small brands accelerated this opportunity? Or does it indicate that pulling back from small brands (that typically have high gross-margins and high sales growth) was a mistake? Emerging brands with sales between $10 million and $25 million outgrew their category growth by 10 times or more. Some of the most promising in this high-growth cohort are GOODLES TruRanch Carbliss - THE PREMIUM Ready to Drink Cocktail Mike's Hot Honey Bizzy® Cold Brew and Odele Beauty Looking forward, Bain notes that innovation by large FMCG companies remains limited, insurgents are well positioned to earn an even greater share of the growth. This has been the case for the last 20 years that I have worked with insurgent brands. It's time for large companies to reimagine what partnering and investing in high-growth companies can do to drive growth. It's more External R&D or External Innovation than "CVC". #Markknows #innovation #externalR&D #externalinnovation #CVC #partnerships #growth #leadership #food #beverages #beverage #insurgents #businessmodel https://lnkd.in/e6HY-cyy
Mark Kaiser’s Post
More Relevant Posts
-
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
Insurgent Brands 2024
bain.com
-
It was great to join Jim Slama in his Crain's Chicago Business article on opportunities in the CPG space. In my view, it’s a great time to lean into CPG, especially as it relates to brands seeking to drive positive environmental and human health outcomes. The potential for innovation in this space is immense, and at S2G, we believe there are many untapped markets that are ready for disruption. Thank you, Jim! You can read the whole article here: https://lnkd.in/guWUzhuD
Opinion: It's time to invest in emerging CPG brands again, Chicago
chicagobusiness.com
-
Interesting read on Bain & Company's 2024 Insurgent Brands, sharing the movers and shakers disrupting FMCG right now https://lnkd.in/gkSWDcuu
Insurgent Brands 2024
bain.com
-
Last week the emerging consumer brand community saw a great exit with Omsom, Asian food brand, sold to DayDayCook, for what was marketed as a 3x revenue exit, ie $11.7m of consideration for $3.7m in revenue. I got a number of messages saying something like "are we back?!", ie 3x revenue for small brands. For the record, I do think this is a good exit. But probably sets bad expectations for founders think 3x revenue is market. Here's how I understand the transaction: 1. There's no cash at close for sellers. 2. They're assuming $800k of debt. 3. DayDayCook, a $20m MC microcap, is putting up $3m of working cap over 3 years. 4. "subject to achievement of net revenue and net profit" there'll be consideration up to $11.7m in the form of 50% cash and 50% stock (which won't be sellable given how thinly it's traded). The devil will be how the projections are set. It's impressive to get to $3.7m in revenue in 3 years. It's impressive to sell to a public company. I hope Omsom and founders get the full consideration. I just don't believe this sets a market price of 3x revenue.
-
-
Momentum soared for insurgent brands in 2023, with 97 disrupting the US consumer goods scene. Our analysis delves into how these brands provide valuable success stories on innovation, disruptive growth, and achieving sustainable growth in a stagnant market landscape.
Insurgent Brands 2024
bain.com
-
Momentum soared for insurgent brands in 2023, with 97 disrupting the US consumer goods scene. Our analysis delves into how these brands provide valuable success stories on innovation, disruptive growth, and achieving sustainable growth in a stagnant market landscape.
Insurgent Brands 2024
bain.com
-
Momentum soared for insurgent brands in 2023, with 97 disrupting the US consumer goods scene. Our analysis delves into how these brands provide valuable success stories on innovation, disruptive growth, and achieving sustainable growth in a stagnant market landscape.
Insurgent Brands 2024
bain.com
-
Senior Partner at Bain & Company | Co-lead of EMEA Consumer Products & Retail practice for Financial Investors | EMEA lead for Firm Strategy & Operations
Momentum soared for insurgent brands in 2023, with 97 disrupting the US consumer goods scene. Our analysis delves into how these brands provide valuable success stories on innovation, disruptive growth, and achieving sustainable growth in a stagnant market landscape.
Insurgent Brands 2024
bain.com
-
Momentum soared for insurgent brands in 2023, with 97 disrupting the US consumer goods scene. Our analysis delves into how these brands provide valuable success stories on innovation, disruptive growth, and achieving sustainable growth in a stagnant market landscape.
Insurgent Brands 2024
bain.com
-
Momentum soared for insurgent brands in 2023, with 97 disrupting the US consumer goods scene. Our analysis delves into how these brands provide valuable success stories on innovation, disruptive growth, and achieving sustainable growth in a stagnant market landscape.
Insurgent Brands 2024
bain.com
