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Wisdom With Peter Gialantzis, Chief Merchandising Officer Pod Foods Pod Foods is an asset-light disruptor to incumbent wholesale grocery distribution, building a proprietary data set on consumer trends and realigning stakeholder value in the grocery supply chain. For startup & emerging grocery, health, beauty and wellness brands, Peter offers some great wisdom and insights. 1. **Direct to Consumer Dropship Revolution:**   - The shift towards direct-to-consumer (DTC) dropshipping, catalyzed by Amazon and accelerated by COVID-19, has reshaped consumer expectations and retail dynamics.   - Traditional retailers face margin pressures and require innovative, differentiated product offerings to sustain growth and margins amidst rising labor costs.   - Emerging DTC brands leverage social media influence and agile distribution models to rapidly gain market share, challenging conventional retail paradigms. 2. **Impact of Social Media Influence:**   - Emerging brands face the dual challenge of meeting consumer demand for innovation and navigating complex pathways to market.   - Social media influencers can propel brands to prominence overnight, necessitating rapid response capabilities from both brands and retailers.   - Distributors struggle to keep pace with the speed of innovation, facing financial risks and operational constraints in adapting to market dynamics. 3. **Speed to Shelf, Speed to Scale:**   - B2B dropship marketplaces like Faire.com offer initial pathways for emerging brands into retail, but scalability remains a challenge.   - Brands seek seamless distribution platforms enabling rapid scale-up and national reach to achieve sustainability and growth.   - Tech-enabled marketplaces with integrated logistics solutions, such as Pod Foods, represent a promising model for facilitating rapid expansion and meeting evolving retail demands. #supplychain #startup #distribution #retail #emergingbrands #solution

𝗠𝗮𝗷𝗼𝗿 𝗿𝗲𝘁𝗮𝗶𝗹 𝗰𝗵𝗮𝗶𝗻𝘀 𝗮𝗿𝗲 𝘄𝗶𝗻𝗻𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗹𝗮𝗯𝗲𝗹 𝗕𝗿𝗮𝗻𝗱𝘀 - 𝘄𝗵𝗮𝘁 𝗰𝗮𝗻 𝘆𝗼𝘂 𝗹𝗲𝗮𝗿𝗻 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲𝘀𝗲 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗱𝗼𝗹𝗹𝗮𝗿 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝘀𝘁𝗼𝗿𝗶𝗲𝘀? It's almost comical how all major retail chains have created their own private label brand, or incorporated private label into their core principles. But, we must look at the massive success of these brands to see the gigantic potential: - The PLMA reports a 10% CAGR growth in sales of private label products in 2023 - Target's Good and Gather brand reached $3 billion sales in 2022 - Walmart's Great Value brand earned a whopping $27 billion revenue in 2020 These brands have successfully leveraged the core benefits of private labeling, to create a distinct competitive edge. - 𝗖𝗼𝘀𝘁 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻: Using private label means no production facility and no initial investment. This, in turns, lead to lower prices for consumers (like Walmart's Great Value) - 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆: By working with private label suppliers from around the world, brands can offer unique products that can't be found anywhere else (like Trade Joe's) - 𝗖𝘂𝗿𝗮𝘁𝗶𝗻𝗴 𝗮 𝗱𝗶𝘀𝘁𝗶𝗻𝗰𝘁𝗶𝘃𝗲 𝗯𝗿𝗮𝗻𝗱 𝗶𝗺𝗮𝗴𝗲: Organic grocer Erewhon filled their stores with Erewhon store brand products, to create a life-style elevating shopping experience - 𝗦𝗵𝗼𝗿𝘁 𝘀𝘁𝗮𝗿𝘁-𝘂𝗽 𝘁𝗶𝗺𝗲: We all know PRIME, an energy drink launched via an influencer and private label collaboration. In just a year, PRIME exploded to become one of the most popular energy drinks in the US There are even more success stories from private labeling. These companies are successfully navigating current economic downturns, and overtaking traditional brands in customer mindsets. But the window of opportunity is closing. Good ideas are running out!! Right now, the secrets of private labeling are slowly being revealed to the world. Many start-up beverage brands are now leveraging the power of private label beverages to win new markets. We can help build your success story in the beverage industry, with our state-of-the-art private label beverage service. So contact us now to start your success story today!! Read more: https://lnkd.in/gja9myet #privatelabel #oem #beveragemanufacturer #beverage #storebrand #tandobeverage

As grocery shelves become more competitive, some food startups are working with select retailers to exclusively roll out their latest product with them - Modern Retail takes a deeper dive into this #retail strategy in this article: https://bit.ly/3MkOv4r.

For many online-first food brands that are looking to dip their toes into physical retail, boutique grocers and other independent retailers are proving to be a valuable resource. While they certainly aren't ignoring big-box stores, these smaller and more specialized retailers can have an outsized impact in creating buzz for the brand among high-intent customers. Specialty retailers are also a good way to experiment with new products without the pressure of putting something that's available to the general public, testing the waters before making a bigger commitment. #CPG #Retail #FoodandBeverage

𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐋𝐚𝐛𝐞𝐥𝐬: 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐏𝐨𝐰𝐞𝐫 𝐒𝐡𝐢𝐟𝐭 𝐟𝐫𝐨𝐦 𝐁𝐫𝐚𝐧𝐝𝐬 𝐭𝐨 𝐑𝐞𝐭𝐚𝐢𝐥𝐞𝐫𝐬 In #UAE's grocery sector, while legacy #brands continue to enjoy healthy profit margins, retailers are facing a set of challenges. Amidst intensifying competition and shifting consumer preferences, the challenges for #retailers are rising. Yet, within these challenges lie opportunities for growth. A notable trend emerging is the strategic focus on private labels by grocery players.   Continue reading to delve deeper into the transformative role of private labels: https://lnkd.in/eRMhcwmy

Learn how private label beverage can help you win in this cut-throat industry 👇 👇

🚀 Let’s talk about the rise of Private Labels and Consumer Perceptions 🤔

What are the criteria for Private Label goods to really work? 1.       Fascinating article on big retailers trying to mimic Trader Joe’s (TJ), Aldi and (not mentioned) Costco’s Kirkland uber brand. 2.       And, Keychain sounds like an interesting matchmaking platform. 3.       But, what’s missing from the success formula of TJ and Aldi? a.       They don’t have duplicate, name brands next to their private label. This creates redundant inventory investment. b.      They don’t offer an array of SKUs – just two for peanut butter – smooth and chunky. c.       And, the formulas for the SKUs are to be good or better in quality than the #1 brand. d.      Because of fewer SKU’s and 20% lower prices than full-service grocery stores, the volume throughput (turns) is much greater. This creates an entirely better- buying, logistics – system. e.       When stores get replenished far more often then fill-rates can be tuned to very high and excess stock very low. f.         Private label SKUs are only the visible tip of a great business model. 4.       SO; what are (other) reasons that distributors have even more challenges with true, financial success with private label goods?   

The club channel highlighted in this article is also thriving in China, with Sam's Club being a prominent example. Compared to its main local competitor, Alibaba’s Freshippo, some key metrics illustrate Sam's success: 📊Revenue per store: Sam's = Freshippo * 13 📊Revenue per SKU: Sam's = Freshippo * 3 (Freshippo’s 8,000 SKUs generate 45 billion RMB, while Sam's 4,000 SKUs generate 66 billion RMB) 📊Avg. transaction value: Sam’s = Freshippo * 7 (1000 RMB vs. 140 RMB) 📊Membership fee: Only Sam’s charge The 3 factors behind this success can be summarized by this article, with some differences with the mature U.S. market. 🟢Less strict about affordability Unlike American consumers who prioritize affordability, Chinese consumers are more willing to pay a premium for high-quality products selected by supermarket brands. This shift towards self-indulgent spending, accelerated by the pandemic, reflects a move away from long-term savings to daily enjoyment. Sam’s capitalizes on this trend by positioning itself as a brand focused on improving life quality in China. This helps it build a strong association with "treat myself" moments and differentiate itself from traditional supermarkets that satisfy everyday needs. 🟢Less importance assigned to freshness Products that emphasize freshness in the U.S. market (e.g.pizza and deep-sea fish) are sold frozen in Sam’s in China, but this has not hindered their popularity. Because Chinese consumers have lower freshness expectations for these imports compared to traditional ingredients used for Chinese dishes. Additionally, frozen products usually have higher production standardization and better quality control, making them more reliable for consumers. 🟢Experience based on SKU strategy Based on the previously mentioned positioning, Sam's has adopted a SKU strategy of “More categories, less total quantities” supported by a virtuous cycle comprising 3 key pillars: 🛒For consumers: It reduces decision-making costs, as they trust that the supermarket has already selected the best options within each category. 🛒For suppliers: It pushes them to continuously optimize quality and cost structure while helping them avoid excessive competition within the same category. Being Sam’s selection also enhances the supplier's reputation. 🛒For Sam’s: It lowers administration, logistics, and warehousing costs, while strengthening the exclusivity as brand value. In summary, Sam’s success reveals that the long-term solution for grocers in the Chinese market is focusing on the satisfaction of your target audience and differentiation.

What's in store for grocers for the rest of 2023? Read McKinsey & Company's latest insights on the current state of food retail and 5 key trends that will shape the industry for years to come, via Progressive Grocer.