The 'David vs. Goliath' in Consumer Packaged Food
These Packaged Food companies raked in over $320B of revenue in 2022 ...
👉 Nestle
2022 Revenue: $93B
Top Brands: Hot Pockets, Stouffer’s frozen meals, DiGiorno frozen pizzas, Kit-Kat, Nesquick, Nestea, etc.
👉 Pepsico
2022 Revenue: $80B
Top Brands: Pepsi, Mountain Dew, Tropicana, Lipton & Brisk iced teas, Starbucks RTD (ready-to-drink) coffee drinks (distribution agreement formed in 1994), Doritos & Lays potato chips, etc.
👉 AB InBev
2022 Revenue: $54B
Top Brands: 630 Beer brands across 150 countries including Budweiser, Corona, Stella Artois, etc.
👉 Coca-Cola Co
2022 Revenue: $43B
Top Brands: Coca-Cola, Minute Maid, Sprite, Fanta, Dr. Pepper, etc.
👉 Mondalez
2022 Revenue: $31.5B
Top Brands: Oreo, Ritz, Chips Ahoy, Cadbury, Sour Patch Kids, etc.
👉 General Mills
2022 Revenue: $19B
Top Brands: Cheerios, Lucky Charms, Trix, Pillsbury, Cinnamon Toast Crunch, etc.
The irony is that the biggest companies are the ones who can not only afford to play the long game, but should be the leaders of it. These are the iconic, multi-nationals with the power to 'push the ball' where it is already rolling; to what health data and the consumer is already starting to say.
Yet they choose to ride the profit momentum of legacy products because of the inevitable short-term pain of a strategy shift. The path of least resistance is doing what has always worked. And what has always worked is high fructose corn syrup, artificial colors & sweeteners, seed oils, hydrogenated oils, etc. They smell good. They taste good. They look good. They are cheap to make and profitable to sell. And they are addicting, especially for kids ...
There is an exciting wave of growing disruptors in CPG, working to replace harmful products with better alternatives with safe & healthy ingredients that won’t harm your health, and taste just as good (if not better). The best products must hit the full criteria in comparison to old unhealthy products to replace them on the shelf ...
1) Are the ingredients safe & healthy?
2) Does it taste good?
3) Are the answers to 1) and 2) strong enough to make the product appealing to your kids?
4) Is is reasonably priced?
Many of the best-performing emerging health conscious brands are being acquired at a moderate rate; hopefully that rate will accelerate. Yet, how much the Nestles, Pepsicos, and General Mills of the world truly care about ingredient integrity and consumer health will be dictated by the percentage of Sales & Marketing resources directed towards these brands in their portfolio.
Some brands doing a great job of responsibly disrupting the CPG industry, and creatively replacing 'the old' with 'the new' ...
🥤 Soda - OLIPOP PBC
☕ Bottled Coffee - Super Coffee
🥣 Cereal - Magic Spoon & Three Wishes Cereal
🥛 Chocolate Milk - Slate Milk
🍫 Snack Bars - FROPRO Snack Bar
🍺 Beer - Athletic Brewing Co.
🥣 Instant Oatmeal - Kreatures of Habit
👇 Who else?