WHEN EVERYONE SITS DOWN AT THE SAME TABLE - AND LISTENS This is a wonderful scenario. I too believe the only way is to get out of our silos. This is a repost, and I will put it on FB & IG because we also need consumers to see that this can work. But it needs to have them in there. No matter what other space we occupy in the supply chain, we're ALL consumers! https://lnkd.in/ggk7yciT
This week in Kyle's manifestation of CPG land.... A brand, a farmer, a retailer, and an investor all sit down together at a table. Farmer: “I’d love to implement more regenerative practices and start rotating biodiverse crops, but to help mitigate my risk, I need an offtake partner who will not only pay a premium for what I’m growing but also commit to multi-year offtake agreements. Together we can build a better food system.” CPG Brand: “I’d love to help! What I need in return to help mitigate my risk is an investment partner willing to help fund some of the inventory and also a retail partner willing to invest in our shared vision long term, for multiple years, while making the route to market a little less expensive for me. Together we can help build a better food system.” Retailer: “Since you are helping the farmer mitigate risk through long-term commitments, I will do the same. I will commit, a year in advance, to giving you shelf space for 36 months (instead of 6-12). I will work with our distribution partners and leadership to ensure that this partnership is a little less financially extractive for you, making it more viable for you and also allowing you to price your product a little more comparable to its conventional counterparts to help it sell. All I ask is that you help support it as well. Let's be super transparent and agree in advance what this all looks like and make commitments to stick to it. Together we can help build a better food system.” Investor: “Since you are making long-term commitments to the farmer and the retailer is making long-term commitments to you, my risk is reduced and I will agree to help fund it. I will create a unique vehicle to give some money to the farmer to help with their transition and will give some money to the CPG brand to help with the upfront inventory and processing costs. Together we can help build a better food system.” In this version of CPG land, we don't work in silos. We don't simply look out for our own self-interest. We realize that we are much stronger together than we are apart. We understand that in order to drive true systems change we have to stop chasing trends, stock prices, and return profiles and instead learn to build better for the long term, with regeneration at the heart of it all. In this version of CPG land, we all know our future and the future of our planet depends on this, therefore we walk the walk as much as we talk the talk. It won't happen overnight, but with collaborative support, we can build this version of CPG land. We can build a better food system-- together.