Carine Kavthekar

"Thanks Kaleigh Theriault, great play by play on the first half, let’s take a look at what’s going to be needed to win the year." 🏈 Halftime Report: Preparing for the second half in the Beverage Alcohol Industry! 🏆 As we take a breather at the halfway point of 2024, it's clear that the beverage alcohol industry has seen some major plays and strategic moves. Let's huddle up and look at the game plan for the rest of the year: 🍺 Beer: The price increases in 2023 are putting pressure on consumers, with long-term inflation effects and multiple drivers pointing to lower volumetrics. To stay in the game, deeper price subsidization for core Beer categories is essential. However, Imports show potential for a positive finish. Maintaining consumer loyalty will be our MVP move here. 🍷 Wine: The $15-$25 range continues to be the sweet spot, driving consumer interest. But to achieve positive trends by year-end, we need to capitalize on Q4 gifting. A big comparable period is coming up, so some price adjustments might be necessary, especially for infrequent Wine shoppers. 🥃 Spirits: We're seeing a continued shakeout as consumers transition from traditional products to RTDs. Flavor and turn-key cocktails are the winning plays, making Q4 critical for gifting and entertaining. Price discounting is already in motion to boost revenue. 🍹 RTD (Ready-to-Drink): RTDs remain a game-changer this year. With their share of total Alcohol growing, we expect more stability in growth rates as the shift from Seltzers slows. Building consumer brand loyalty for Spirits RTDs is crucial, and we need to watch out for potential flavor fatigue in the second half. Let's get ready to tackle the challenges and seize the opportunities ahead! Here's to a successful second half of 2024! 🥂 "Why did the football team go to the bank at halftime? To get their quarterback!" 🏆 #BeverageIndustry #AlcoholTrends #Beer #Wine #Spirits #RTD #MarketInsights #SecondHalf #HalftimeReport Note: This report looks at the 26 week ending period thru July 6th, 2024

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When it comes to functional beverages, the energy and weight management segments are leading the pack, according to NielsenIQ's Jordan Moore, who spoke at ECRM's Center Store Sessions recently and was interviewed by Joseph Tarnowski on some key takeaways from her presentation. Overall, the functional beverage segment (which NIQ considers any beverage that makes a wellness claim) is growing 2 percent faster that RTDs. Energy beverages, which are already a $22 billion category, have seen 10 percent growth vs. a year ago, and weight management beverages, which include those beverages aimed at helping consumers gain muscle as well as speeding up their metabolism and losing weight, are up a whopping 22 percent. Interestingly, protein is making its way into an increasingly diverse array of beverages outside of traditional protein shakes, including coffee (like the new Instant Coffee with Protein by Fire Department Coffee, and the new Genepro Tea). Some functional beverage categories are declining, however. Those under the preventative segment, which focus on brain health, probiotics and immunity is down 8 percent and diabetes related beverages are down 6 percent. Not all is lost though, if you are in one of these segments. While the overall segment may be down, your specific category may be on the rise. A case-in-point is kombucha. While it falls under the preventative segment, the category itself is up 5 percent. Watch the full video below! #beverages #cpg #wellness #retail #ecrmrangeme Luke Schneider Jason Patton Jon Bryan Stacey Helbig Brian Parks Brian Haymaker

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Alcohol trends have changed substantially over the last few years. Join the webinar to know more about how today's consumer is different.

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“Growing a CPG company, especially in the food and beverage space, ‘is astronomically harder today,’. ” Paul Voge you said it, man. So many truth bombs dropped in this article about the challenges and difficulties growing and scaling a CPG brand in today’s world. The cruel reality is that it takes a whole lot of money or a whole lot of time (and most times both) along with a fair amount of luck to have a chance at making it. If you dont have a ton of money then you better have a ton of time, some good fortune, and a product that can withstand many changes of the seasons (and "trends"). For most emerging brands today its all about survival and just finding a way.  There are lots of traps out there– lots of shiny objects– lots of vanity metrics hoping to be noticed and cared about–but at the end of the day sometimes its just about living to see another one. Here’s to all you day-to-dayers and week-to-weekers out there that are all just finding a way. Keep finding it.

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The Coca-Cola Company and Coca-Cola zero sugar...after a stronger-than-expected second quarter 2024 performance that was announced today, which saw net sales revenue increase 3% to $12.4 billion, the Coca-Cola Company has raised its full-year outlook. Coca-Cola’s latest earnings success comes at a time when the soda business as a whole is in decline. Between 2004 and 2023, the volume of carbonated soft drinks bought and sold in America decreased by -27%, according to trade publication Beverage Digest. Still, amid the category’s downward trajectory one brand has continued to rise, capturing more market share in the past 20 years than all the others. That brand: Coca-Cola Zero Sugar. Coca-Cola Zero Sugar is an ongoing example of how superior taste drives consumer demand, with Coca Cola Zero seeing a +20% global volumes increase. The strong performance of Coca-Cola's Zero sugar variants, is reflective of an overall beverages category move to Zero sugar offerings as consumers look for healthier beverages choices, with zero calories and sugar. For any beverages brand owner or manufacturer looking to create great tasting 😋 beverages innovations 💡 with reduced or zero sugar, please reach out to the beverages team at Kerry, we are here to help. #cocacola #cocacolazero #zerosugar #sugar #softdrinks #taste #zerocalories #refreshingbeverages #tastsesense Erlon Pereira Marc LEJEUNE Breda Kelly Tiphaine BEAU Farrah Gilsenan Thomas Hahlin Ahlinder Sheelagh Pentony Carol Dunne Gwyneth Kelly Michelle Osagie Mark Allen Leigh-Anne Vaughan Massimo Barbeni Romel Doshi, MBA Sam Choucha Nina Riggins Sergio Saavedra Rodríguez Birgit Schaaf Ian Chesworth Erika Minaguchi Magdalena Edyta Przewoźnik Barbara Lezzer David Deeley Brian Short Aoife Mc Donald Elaine Druhan Juan Soto Daniel S. Xavier Herrera

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Functional beverage is the fastest-growing category in grocery—but it’s also the least forgiving: https://okt.to/9BhacA “In a category as crowded and volatile as functional beverage, you’ll quickly see that the competitive forces are extraordinarily intense,” says LPK’s Chief Growth Officer, Jesse McMullin, a multi-hyphenate in functional beverage who has led the development and branding of over 140 on-shelf CPG products in his career. “The key to understanding these forces—and to maintaining a competitive advantage—lies in being self-aware about your brand and your business dependencies.” In our latest piece on lpk.com, McMullin gives guidance on navigating the complexities from seed to shelf: https://okt.to/sWZB1F #functionalbeverage #bevtrends #cpg #brandgrowth

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CPG Is Constantly Changing - Except When It's Not (part 9 in a series) The Fallacy in 'Number of Doors' Virtually every week there are posts here, along with discussions I have had that talk about how many 'doors' the brand is sold in or how many 'new doors' they have secured. Actually, getting into distribution is the simple part. Getting it to leave the store in a consumer's basket is the hard part. A few questions to consider prior to securing new distribution: 1. What are my goals on a case or unit sold per week? How does that compare to this retailer's minimum for my category? 2. How do I plan to drive this velocity? Have I tested & analyzed various promotional tactics at other retailers? 3. If this is my first major retailer, do I have a plan in place? What's my project spending (at the retailer, not the distributor) for this? 4. How am I developing these plans? Am I talking to experts that spend their time analyzing trade at key retailers or listening to distributors or brokers who 'know that the retailer would like'? 4. Is this level of spending sustainable? Do I realize it's less expensive to maintain distribution than to buy it back? There's a lot more involved in the initial success of a brand than 'getting in new doors'. That's just the beginning - or the end, without a plan. ---------------------------------------------------- To read the entire series, visit www.schroedercpg.com for ongoing posts on trade promotion. Also, if you have suggestions for new posts, please advise as well.

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We discussed this on our latest episode of CPG Vibes, BIG BIG news from KeHE Distributors on 11/22, a new program dubbed 'AAP' (administrative allowance program). A flat 2 % off-invoice allowance for specific fees including New item intros, extra performance fees, MCBs, new item set up fees, and lumping fees. My quick thoughts: This is a step in the right direction for sure. UNFI implemented SSI which is a similar program to help brands budget for costs and fees associated with doing business with large national distributors. With all that said, these categories are pretty large and encompassing, so for all the other fees associated with Kehe that can chop down a brand's margin, will this program truly cover it? Likely not, but at least it covers some. What are your thoughts?

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The spicy food revolution is here, and the younger generations are leading the charge: Research shows that 47% of #GenZ and 45% of #millennials prefer moderately spicy or very spicy options.    Have you ever tried a Flamin’ Hot product in two different regions? You might have tasted two different spice mixtures – because even though love for spice is up worldwide, we adjust the spice level of our foods market-by-market based on consumer preference. The way I see it, the broadened popularity of spicy foods is a response to our world being more connected than ever. It’s an area ripe for growth and innovation, something we’re excited to lean into at PepsiCo! We’ll continue to grow to meet people where they’re at – and predict what’s coming next.    Read this breakdown of the growth in the spicy section of American supermarkets:

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We have seen remarkable performance from our clients who have adopted a strong digital shopper marketing strategy. These clients have enhanced customer engagement, boosted digital retail sales, and increased brand loyalty. Our latest article explores the most effective strategies. By implementing these tactics, brands can stay competitive, build deeper customer connections, and achieve sustained growth in today's dynamic retail market. #celeritycpg #digitalshoppermarketing #retailmedia #cpgnews

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What Got You Here Won’t Get You There: This is the story of many CPG brands that once enjoyed profitability and significant market share but are now struggling to stay relevant in a rapidly evolving competitive and technological landscape. For a CPG brand that once thrived but now finds itself grappling with low cashflows, shrinking margins, and a stagnant topline, the future depends on decisive, strategic shifts. It’s a classic catch-22: do you invest in brand building to stay top-of-mind, or refocus on reformulating products or upgrading machinery to stay competitive? Here’s a strategic playbook to help navigate these complex choices: ◀️ Laser-Focused Investment: Develop a clear game plan. Prioritize investments in the brand, product innovation, and operational efficiency—but stay selective. Every dollar should bring measurable impact. ◀️ Modern Brand Building: Leverage content creators over traditional media. They bring authenticity and targeted reach, often at a fraction of the cost of TV or other conventional ads. ◀️ Lean Inventory Management: Adopt Just-in-Time practices, reduce slow-moving products, and optimize your inventory to save on warehousing and carrying costs. ◀️ Strengthen Cash Flow: Tighten working capital by reducing customer credit terms, exploring receivables financing, and negotiating extended payment terms with vendors. ◀️ Smart Reinvestment: Channel profits back into quality improvement, sustainability initiatives, and cost-efficient warehousing, transportation, and supply chain improvements. Waste reduction should also be a priority to further enhance margins. A full-time or Fractional CFO can be a game-changer in guiding this journey. They bring accountability, track key KPIs, and implement a Balanced Scorecard to keep tabs on your brand’s financial and operational health. It’s time to take a bold, structured approach to stay relevant—and profitable—in today’s evolving market. ****************************************** P.S. I am a Fractional CFO helping businesses take informed financial decisions with peace of mind while having some fun in this process. Please contact me at [email protected] if I can be of any help in your CPG Transformation Journey. Brain Expansion Group Startup Ecosystem Canada Fractional CFO The CFO Centre Canada

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It is always exciting when retailers create new categories and Walmart does it right with their newest category called Modern Soda category featuring innovative and better for you brands. Walmart's decision to modernize its soda shelves to prioritize functional beverages marks a pivotal moment in retail innovation. As this article from BeverageDaily highlights, the shift reflects evolving consumer demands for products that not only quench thirst but also enhance health and wellness. This trend resonates with what Pathformance is seeing across the industry: the integration of purpose-driven products with data-driven strategies. OLIPOP PBC Zevia poppi #CPG #Retail #media #measurement

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A simple quote from Mike Tyson and one of my favorites of all time: "Everybody has a plan 'till they get punched in the mouth." It rings true in the day to day battles of business, especially in CPG. Here are some examples many CPG founders go through or ones I've personally battled: 🥴 You launch a product, did all the research for R&D, focus group testing, and reviewed the packaging thousands of times before launching, but still something went wrong either with shelf life, negative consumer/retailer feedback, or weak sales on shelf 💰 You had cash flow projections in place and expected that with X amount raised, it would last you for Y Months, but ran short of runway and were scrambling to raise more cash to keep the company going in difficult times 🤝 Formed partnerships, only disappointed to find out the partner backed out, or it wasn't the partnership you envisioned and now you are doing damage control and it's causing emotional pain to be with this person 🚛 Brought on a distributor thinking they would push the brand and it would be an estimated cost, but they didn't do their job, and the costs ended up sky-rocketing from chargebacks, thus losing money on every unit 😲You release a great product, and then a competitor comes up with a version of yours that is a lower price point and they have all the marketing dollars in the world to out-compete you. I can go on and on, but in this business, like any business, you have intentions when you go into it, and many times, it doesn't turn out the way you envisioned. What's your story of getting punched in the mouth?

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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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300+ Years in the Game and Still Leveling Up 🥃 E&A Scheer the rum sourcing OG with over three centuries of expertise, is doubling down—literally. They’re investing to double their capacity as they gear up for major growth in premium rum. If this isn’t a sign of where the biggest players in the category are heading, I’m not sure what is. At Coconut Cartel, we’re right there with them. Premium rum is on the rise, and we’re pumped to be part of the movement. https://lnkd.in/ecBjMMrU

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This should be a great session for every food distributor who wants to improve their Operations performance. Find out how to tackle improving your day to day operations, utilizing data driven insights and being prepared for FSMA 204.

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Domino’s Hungry for MORE strategy drives strong Q1 Results 🚀 As we announced this morning, our first quarter results continue to demonstrate that our Hungry for MORE strategy is working, and our incredible team members and franchisees are delivering on our promise to drive MORE sales, MORE stores, and MORE profits.  Key Highlights: • MORE Sales: Excluding the impact of foreign currency, global retail sales grew 7.3%, driven by strong U.S. and Intl. comps and global net store growth. In the U.S., our same store sales rose by 5.6%, driven by both delivery and carryout, up 2.9% and 9.5%, respectively.    • MORE Stores: We added 20 net new stores in the U.S., bringing our U.S. system store count to 6,874 stores. Our international store count increased by 144 net stores in the first quarter, bringing our system store count to over 20,700 stores at the end of the quarter.   • MORE Profits: Our new and improved Domino’s Rewards loyalty program drove outsized comp performance and flowed through to our income from operations, which increased 19.4% (excluding FX). Our unit economics remain strong, and we remain on track to achieve our target of $170k or more in average U.S. franchise store profit for 2024. We made a number of key strides in the quarter to deliver against our Hungry for MORE strategic pillars. In the first quarter, we were on air with Pan Pizza for the first time since 2014, showcasing our Most Delicious Food and the variety of crusts that we have to offer. We continue to see benefits from our service initiatives that we rolled out in prior periods against our Operational Excellence objective. In Q1, we delivered more pizzas than we did in Q1 of last year, and at improved delivery times. We've always been known as a premier value player, but Renowned Value is not about having just the lowest price in the market, it’s about providing value that is innovative and memorable. Our Emergency Pizza campaign broke through the ‘sea of sameness’, performing better than any ‘BOGO’ I’ve done in my career. This innovative campaign drove active Domino’s Rewards member growth, particularly among new, lapsed and light users. This, in turn, helped to drive increased order counts in the U.S. across all income groups in both our carryout and delivery segments! Everything we do at Domino’s is Enhanced by our Best-in-Class Franchisees, and I can’t wait to host them at our Worldwide Rally next week. They were the inspiration behind Hungry for MORE and I’m looking forward to bringing our strategy to life across our global system. I could not be more excited about 2024 and beyond for Domino’s Pizza. Our first quarter results clearly show that our strategy is resonating with customers. This gives me great confidence in our ability to deliver against our short and long term Hungry for MORE goals and drive significant value creation for Domino’s franchisees and investors. #Dominos #HungryforMORE

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Sometimes folks ask me what the members of the Consumer Brands Association make. Well. They make cereal. And soda. And canned beans. And soap. And toothpaste. And granola bars. And laundry detergent. And protein drinks. And jelly. And jelly beans. And dog biscuits. And 👏 LOCAL 👏 JOBS 👏!! The consumer packaged goods (CPG) industry is recognized as the largest manufacturing employer in the nation. In fact, our economic footprint is so substantial that it surpasses the entire GDP of Canada! (Sorry, super nice neighbors to the North…). Our partners at PwC helped us develop this extensive report on the industry’s full impact. Check it out here 👇 #CPGIndustryImpact #publicaffairs #governmentaffairs #associationmanagement

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