Russell Diez-Canseco

AB InBev has reported a rise of 2.6% in first-quarter sales, in line with forecasts, but the impact of a roughly year-old U.S boycott of key brand Bud Light continued to hurt the brewer. AB InBev also sold slightly more beer than anticipated, with volumes falling 0.6% versus the 1% anticipated by analysts. Own beer volumes declined by 1.3%, while non-beer volumes rose by 3.5%. Read more https://lnkd.in/dCKmtukA

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SAFE NOTES ARE NOW UNSAFE... OK so what is going to happen to the money that was poured into CPG Brands via these supposed SAFE Notes? Issue is that no priced round took place and now it is likely if it did happen it would be at a fraction of the valuation that was contemplated leading to massive dilution for the founder. Many have a cap...few have a floor. and unless they are converted it will be impossible to raise new money at any valuation. #cpg #safenotes #fundraising

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-- Podcast Teaser Alert -- "If you want to lead the consumer, you need to be the consumer." - Eric Ryan At one point, Eric Ryan and I were "frienemies". Friends personally, competitors professionally. He was the co-founder and CEO of Method Products PBC, while I led Mrs. Meyer's Clean Day. ................ But in the real world, we were always on the same team. Our collective efforts, along with the team at 7th Generation, were revolutionizing the cleaning category. At Mrs. Meyer's, our mission was clear: 'Together, we dream of a world where the better way becomes THE way.' ................ Eric Ryan shares his insights on creating method products pbc, OLLY PBC, and Welly Bandages, along with his go-to-market approach. Stay tuned for the next drop of the CEO podcast. 🎙 You won't regret it. #cultureFIRSTleadership #ceoPodcast #ChiefEternalOptimist

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Kroger is the largest seller of Sushi in the United States, and it isn’t particularly close. Most consumers and many in the industry don’t fully understand the forces driving this business model. The “Sushi Model” in retail grocery is simple: outsource the supply chain and execution to a 3rd party who are experts in their field, and set the program to the closest thing to “autopilot” as possible. Retailers typically take in between 18%-30% of all sales on this model, with no exposure to labor, shrink/spoils or supply expenses. In other words, the gross margin and the net contribution margin are almost exactly the same. This Cost Certainty is worth its weight in gold to a retail grocer. When I was CMO at Lucky Market (before we were majority acquired by Kroger) Sushi was the most profitable category we had on a percentage CM basis, and we didn’t even manage it. We were one of the first retailers to try and actively push for more of this business by promoting $5 sushi Tuesdays and a variety of other dynamic pricing deals. With the rising cost of labor, we’re going to see more and more of this “consignment” model proliferating through retail grocery. In the near future there will be outsourced grab and go “concessions” of salads, wraps, sandwiches, and a wide range of other offerings. We’re also going to see collaborations between retail grocery and restaurant chains in this space, especially with better-for-you product. The likes of Sweetgreen etc. have a huge win-win growth opportunity with the right retailer partners #innovation #sushi #cpg Pod Foods Business Insider Dirty Hands

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As Bruce Blosil from Delmosa wisely said: The benchmark for quality among n/a beverages --promoted by endlessly repetitive and narrowly focused media articles, awards contests, and the opinion of drinkers -- continues to be how close they are to the "real thing". But a large segment of the population is not and never has been looking for the "real thing". They do not consume alcohol. They are not searching for an analogue to alcohol. They have been non-drinkers before non-drinking was cool, and the taste of n/a beer, wines and spirits are foreign and unappealing. It is time that we stop judging n/a beverages primarily through the taste lens of those who enjoy alcohol and start promoting the wonderful, analogue-busting categories of n/a bevs -- such as Muri and others -- to a wider audience whose appreciation for what is delicious and sophisticated is not defined by its association with alcohol.

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One in five consumers who purchase frozen food items usually buy a store-brand product, and that figure is growing, according to “The Power of Frozen 2023” report from the American Frozen Food Institute (AFFI) and FMI- The Food Industry Association. The big factor turning the eyes of consumers toward private label products, unsurprisingly, is price. While private label and national-brand frozen products each saw unit share erosion in 2023 — down 3% for private label and down 5.4% for national brands — both segments saw dollar sales grow 7.7% during the prior year. Also notable is the rather weak brand loyalty that consumers have within frozen food despite the category’s having some long-standing national brands. The AFFI report found that 20% of consumers usually purchase private label frozen food products, while 16% said that they prefer national brands. Nearly four in 10 said that brand preference varies by item, and 26% had no brand preference. | Progressive Grocer https://lnkd.in/gFZEj_j3 #retail #supermarkets #frozenfoods #storebrands #privatelabel #consumers

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Do you envision a future where innovation is standard and healthy products are ubiquitous? I'm at the vanguard y'all... Let's redefine industry norms, making significant impacts not just within marketplaces but in societal well-being and global sustainability. #callingalldreamers #cpgcommunity #betterforall

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Disclaimer: I’m not VC, but I do have a PE background. VC is not a monolith, so I’ll speak exclusively to the concept. No, it does not inherebtly corrupt brands. However, only in select circumstances does it work well in CPG and there are many very good VCs who can navigate this. It comes down to how VC funds are structured. To provide attractive returns to their investors (called LPs) they have to achieve at least one, if not a few massive outcomes (multiplying capital by the 10s and even hundreds) to make up for the inevitable failure of the others (small businesses fail a lot). Resultantly, they only invest on emerging brands that provide possible exposure to those outcomes. Furthermore, VC is really the only institutional capital available in large enough chunks to fund emerging brands, so emerging brands adopt high risk, high growth (hopefully) models to attract this capital. CPG, however, is not tech, and these businesses have all sorts of emergent constraints throughout the scaling journey, especially (but not only) manufacturing capacity and existing retail demand at emerging brand price points beyond what early adopters drive (aka crossing the chasm). The result? Bad outcomes (sometimes).

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Almost sold out of our Woodstock Products Live Nugs! Only 2 cases of each SKU left... SUPER exciting - but it was a BABY production run... We never launched with the goal of having the most expensive 8th on the NY market. We DID want to launch a unique and differentiated SKU - and I think we did just that. It's still early - but very happy with how the SKU is performing... ____________ Fret not - we just got COAs from the next batch and they’re coming out HOT 🔥🔥🔥🔥 (just like the weather in NY LOL). We’re re-upping our original 2 SKUs: PB&J 🥪 (PBB 🥜 x Grapes & Cream 🍇 ) Indica leaning - 35% THC Lemon GP (GP ⛹🏾 x Lemon Kush Mintz 🍋) Sativa leaning - 37% THC ____________ Drum roll for the newest drop: THE KING 👑 (PBB 🥜 x Banana Runtz 🍌) Hybrid - 43% THC‼️‼️ Yeah - that potency is crazy but honestly it's the TERPS on this bad boy that truly make this one special... ______________ VERY proud of the team for how quickly we got this build onto the menu - the first run took almost 3 months from production to available-for-sale. A variety of issues from labs not understanding how to test the SKU to running out of packaging to getting set-up on LeafLink etc... This go-around? Likely 2 wks from production to hitting our menu! ⚡ 🏃 . Love how this team optimized processes so quickly! Martin Mills, Cirona Labs _______________ SOOO excited to get these back in-stock - we're gonna prioritize replenishing our existing accounts, but can start to open a few more doors (that are non-competitive with current doors) with this drop! _______________ DISCLAIMER: Nothing for sale. Per 935 CMR 500: For use only by adults 21 years of age or older. This product has not been analyzed or approved by the Food and Drug Administration (FDA) and may cause impairment and may be habit forming. There is limited information on the side effects of using this product, and there may be associated health risks. Marijuana use during pregnancy and breast-feeding may pose potential harms. It is against the law to drive or operate machinery when under the influence of this product. KEEP THIS PRODUCT AWAY FROM CHILDREN. There may be health risks associated with consumption of this product. Marijuana can impair concentration, coordination, and judgment. The impairment effects of Edibles may be delayed by two hours or more. In case of accidental ingestion, contact poison control hotline 1-800-222-1222 or 9-1-1. This product may be illegal outside of NY.

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Errol Schweizer has the right idea: Solidarity. This is a time for action, and Pod Foods is going to do our part. I have seen a lot of comments about how “innovation is in trouble” or “small scale retailers like Foxtrot don’t move the needle for emerging brands” Not true. Consumer demand for Foxtrot’s innovative products was strong from day one and it is still strong RIGHT NOW. We have two years of store level movement history on 250+ innovative SKUs from their stores to prove it. That demand didn’t go away yesterday, and for retailers ready to ACT, opportunity knocks. Fresh Thyme Market and Go Grocer : you both have HUGE opportunity to take on this business in Chicagoland. Central Market : Foxtrot’s stores in Dallas and Austin were ordering heavily until 2 days ago. These are your customers, if you can get them their product. MOM's Organic Market : Foxtrot’s cusotmers in DC/MD/VA were absolutely positively also MOM’s cusotmers and now they need a place to buy these items. Whole Foods Market Jeff Turnas Lee Robinson DoorDash Robyn Finster … you can capitalize on all of this demand in each of these three key markets if you want it. Of course, we would love to distribute all of this product to you. We have the inventory in these warehouses RIGHT NOW and we can deliver it to your stores tomorrow. We’re good at this. But if you would rather that one of your other distributors handles it…that fine with us also. Have them pick up the inventory and we’ll share all of the movement information with you so you can transition smoothly, we just want to see these brands thrive. This is not charity. This is a golden opportunity to gain market share. These innovative brands are the leading indicators of growth in the industry and if you carry them, you will improve your comp sales. Retailers, We have a box of innovation ready for you to sample with these brands in it, in case you haven’t tried them, and we’ll share movement and inventory data as necessary. Mateen Pouyafar Brady Becker Austin Benzinger Olivia Mazurek Maxwell Blessen Victor Guardiola Jordan Hicks Brittney Cook Kim Cook Lex Evan® Isabella "Bella" H. Semira Nikou Ashley Nickelsen Benjamin Witte Jonas Hanna Josh Schroeter … …Repost and get the word out. There is over $500k of sales here next month across your brands combined. Together that is enough for retailers to take action with. Caroline Grace Melissa Pashko Dirty Hands Green Spoon Sales SMB Sales & Marketing Total Quality Logistics Flowspace Clint Chao #innovation #solidarity #foxtrot #podfoods

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It's time for an update on the #Foxtrot Solidarity recovery plan, 2 days in: We at Pod Foods did our small part to initiate the conversation and the Industry has stepped up to the challenge. Anything is possible with this kind of collective spirit. Some of the heroic and smart actions already taken in the past 24 hours to turn this crisis into an opportunity: Fresh Thyme Market has samples en route of multiple excellent ex-Foxtrot brands for review to sell in their Innovation Program. Kristen Tucker Jonathan Lawrence Misfits Market has agreed to purchase some of the Foxtrot Inventory from each of the three warehouses in Chicago, Texas, and Baltimore and sell it on their platform. Jessie Kimsey Kelly Nigh DoorDash has already added multiple ex-Foxtrot items to several regions on their DashMart marketplace Robyn Finster Chex Finer Foods has offered to help purchase surplus inventory from multiple brands and sell to their customer base. Jeremy Isenberg Central Market is reviewing the products now to see how they can help turn this into a win-win opportunity for all of their stakeholders in Texas. David Leuthold Tomorrow we're meeting with new partners who have stepped forward with interest in how they can help Crafty John Kreller and Harvie Simon Huntley There are many more who will be added to this list in the coming days. The main message here is that in every crisis there is opportunity For any brands who delivered direct to Foxtrot without us or was using another distributor with them: you are welcome in this forum also and we can use the power of this industry to help you, too! Geem, heywell...and on and on and on until everyone is right. Brady Becker Austin Benzinger Olivia Mazurek Maxwell Blessen Victor Guardiola Lex Evan® Isabella "Bella" H. Semira Nikou Ashley Nickelsen Benjamin Witte Jonas Hanna Josh Schroeter Caroline Grace Melissa Pashko Dirty Hands Green Spoon Sales SMB Sales & Marketing Total Quality Logistics Flowspace Jake Benedict #innovation #solidarity #foxtrot #podfoods

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Time will tell if there is any kernel of truth to these rumors about UNFI going private. The natural/organic CPG industry has been so inextricably intertwined with a publicly traded UNFI supply chain for so long, it’s hard to predict what kind of secondary/tertiary impacts this would have. Any instability on a scale this large could cause some ripple effects. A privately held company can have very different motives and KPIs from a publicly traded one. What we’ve always said at Pod Foods is that the duopolistic national supply chain needs to evolve in order for innovation to flourish. We built a national distribution model to coexist with UNFI’s (and others) not to compete with it, directly. The best approach for the industry as a whole is to diversify, away from putting too many of the eggs in one basket. Strategic National secondary distribution benefits CPG innovation, protects retailers, and maintains speed to shelf of differentiation. #cpg #innovation #diversification Flowspace Simon Huntley Wayne Bennett George Milton

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The realities of raising capital in a very challenging market environment. The days of easy money for early stage cpg has left the building. Timing, product fit, hard work, and a great bit of luck all play into being able to get a new brand off the ground and keep it climbing. To all my fellow start up founders out there, keep charging! #startup #funding #cpg

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“When do you make money in this industry?” Several startup CPG founders have asked me this question. It’s a question I’ve often pondered myself. I consulted with a few trusted industry friends, veterans who’ve seen both sides—the retail and the brand perspectives. Here’s what they shared: 🎯In the CPG industry, 85% of brands fail within the first two years. 🎯It usually takes about 24 months for a brand to break even, as it typically requires 18 months for consumers to adopt a new product into their lifestyle. 🎯Early profitability is possible if you focus intensely on local (or regional) distribution, select your retailers wisely, push hard on marketing to drive product velocity, and operate with lean, cost-efficient practices. As you can see, CPG industry is a tough market, requiring cash and time investment, especially during the initial growth stages. It’s easy to grow impatient, like myself, to question whether we are doing things right or if success is even on the horizon. My approach is: I commit fully for two years. That period gives me a clearer indication of where things might be heading; anything sooner is premature. If, after all the effort, the business doesn’t pan out, that’s okay too. Life is about exploring various paths and discovering our callings along the way. Commit wholeheartedly, and regardless of the outcome, live without regrets.❤️ #CPGIndustry #StartupLife #Entrepreneurship #BusinessStrategy #RetailInnovation #MarketingTips #BrandBuilding #ProductDevelopment #ConsumerGoods #BusinessGrowth

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Iris Finance sees over $1B in GMV across 40+ brands Based on what category of consumer products you are in, here are the number one things I see brands leveraging the drive more profits 👇 👇 1) Apparel: Apparel is one of the rare categories where there isn't really an nAOV to retention tradeoff. Super profitable apparel brands are: 1) getting customers to spend alot on first purchase 2) getting customers to come back for seasonal drops 2) Beauty: Beauty companies always get the highest exit multiples, which everyone knows, but now I intimately understand why. The potential combination of high gross margins and strong retention is completely unrivaled. Make a good/sticky product and price it with a healthy margin. 3) Home Goods: Good nAOV to CAC ratios in a large and high intent market. Top of funnel advertising is common, as a lot of these purchases rely on discovery 4) Food & Bev: Distribution is key! Get into a retailer. Lower gross margins make this a really tough category to do strictly online 5) Toys & Games: Really high gifting intent and highly concentrated sales volumes by seasons. The key is to lean in when demand is high. 6) Health/Supplements Product quality is the biggest lever; as it translates to strong retention. Lots of snake oil in this industry, so if you can stand out and integrate your product into the customers - cohort retention will take you to the promised land We are launching a benchmarking feature at the end of the month that will give brand owners the ability to compare any and all financial metrics apples to apples to their peers (i.e., apples to apples gross margins, contribution margins, etc) over any period of time. For example, if you wanted, you will be able to choose 'apparel brands doing 5-30m in revenue' and compare your contribution margin to the data set for the last 13 days you could We might upcharge for it, but will grandfather customers into it for free in the meantime if you sign up with us in the next 30 days 😋

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🌱 One of the key growth drivers of #PrivateLabel foods has been affordability, and this trend isn't going away. Last week, Whole Foods (with the well-earned nickname Whole-Paycheck), announced a new Private Label initiative focused on exactly this - lowering prices without compromising on quality or sustainability. 🌍✨ 📢 In an interview at the Milken Institute Global Conference last week, the CEO of Whole Foods shared that the chain will soon offer more affordable options in an attempt to minimize the impact of inflation on customers. 📈 🛒He noted Whole Foods shoppers, who are traditionally higher-income, are looking for cheaper prices, but they aren't willing to compromise on quality. They care about where the product was grown, raised, and produced, which comes at a higher cost, raising a challenge for the company. 🛍️ The solution, a new private label iniative by investing in a generic, in-store label to offer products at value-driven prices. Whole Foods is stepping up to meet this challenge head-on. 🌿🏷️ https://lnkd.in/gudJa9Er Power Sustainable Lios #Sustainability #ConsumerTrends #RetailInnovation #Inflation

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Spending my day today in 18 back-to-back meetings with entrepreneurial teams from the Startup CPG platform answering as many questions as I can for free in 30 minute increments. I found 5 minutes between meetings (answered all the questions faster than expected) to post about today's activities. In addition to these meetings, we also send out a monthly newsletter with additional resources and partners that brands can work with beyond our own scope - this includes the upcoming webinars, as see on our webinar page - catapultserv.com/webinars We do all these things as a way of demonstrating that we are truly in a leader in activating brand innovation, including at the ground level. We do the odd jobs that no one else wants to or struggles to define. For example, last week I was weighing up ingredients and building stainless tables for one client. It was what needed to be done, and it enabled us to move twice as fast the next day, so I just rolled up my sleeves and got it done. It wasn't anything I haven't done before. In any case, if you are looking for someone to do more than talk, let us know.

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Here’s yet another shrink-to-grow portfolio move (speculated) in the food space.  If it wasn’t clear before, it is now: big food companies are VERY focused on improving growth and apparently shedding slow-growth anchors is a preferred lever in this environment. This strategy is understandable, because they can control a divestiture more than trying to make an acquisition, or a series of acquisitions.  Of course, they still need a counter-party to do a deal, but this specific business and others that have been announced, discussed or completed (e.g., Kellogg and cereal, Unilever and Ice Cream, General Mills and Yogurt) is big enough that the public markets are always a viable transaction partner. If you needed any more convincing (which you probably don't), the divestiture bandwagon suggests some conviction about future growth levers in the big food c-suite: 1. The pricing window is truly closed.  Pricing has driven topline in the recent past but now organic growth will have to come from other sources – and the only foreseeable catalysts for unit growth are lower pricing (no thank you, apparently) or innovation (see point 2). 2. Innovation confidence is low.  Small food companies are the innovators and growth-makers in this industry.  They are taking share and have been for over a decade.  Apparently the big guys do not expected this to change anytime soon. 3. Portfolio growth exposure = growth reality.  Big food companies are growth-takers.  They grow at the underlying growth rate of their combined geographies and categories – faster growth will come if they can improve this underlying growth exposure. https://lnkd.in/gaNBYeKS

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Everyone seems scared of the rise of Private Label. I think customers truly want to support BFY Mission driven brands - but not at a premium price. We have figured out how to be cost conscious by being vertically integrated and now we are using some of those saved $$ for sampling + story telling to gain “good brand karma” PL is here to stay and grow- as a CPG brand you have to figure out how to have a strong brand that is priced in line with PL. #cpg #brandbuilding

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