David Clark

Diageo doubles down on non-alcoholic spirits with the acquisition of Ritual Zero Proof & now owns three of the five world's largest non-alcoholic spirit brands Ritual Zero Proof was founded in 2019, and became the #1 non-alcoholic spirits player in the US after joining Diageo’s accelerator program in 2020. Five reasons why this deal makes sense: 1) Fast growing: The US non-alcoholic spirits has been the fastest growing category with +31% L5Y CAGR. 2) Incremental: 94% of non-alc buyers in the US also purchase alcoholic beverages, spending on avg $292 more than households exclusively purchasing alcohol demonstrating the incrementality of the category to beverage alcohol. 3) High Right-to-Win: Ritual is already a #1 non-alcoholic spirits player in the US, with a strong market position and tailwinds 4) Synergistic: being a #1 player globally in both alcoholic and non-alc spirits Diageo is well positioned to build on Ritual’s current success and scale it up further leveraging its GTM muscle and category expertise 5) Close to the Core: being a part of Diageo’s accelerator (Distill Ventures) since 2020, Ritual already knows what it takes to make cooperation with a spirits giant successful, limiting risks of integration challenges Exciting times for Diageo 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world's largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (eCommerce, DTC, and eB2B) and M&A. 14 out of the world's 20 largest FMCG companies are repeat Clients 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲, 𝗰𝗳. 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗙𝗠𝗖𝗚 𝗠&𝗔 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗯𝗲𝗹𝗼𝘄: https://lnkd.in/efD5RNWX 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg #mergersandacquisitions https://lnkd.in/dXAZQ242 Pernod Ricard The HEINEKEN Company AB InBev Carlsberg Group Campari Group William Grant & Sons The Coca-Cola Company PepsiCo

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Why do some legacy brands— survive and some do not? Professors at The Wharton School look at why for some brands—Sears, Toys"R"Us—nostalgia is not enough to ensure survival, and how others—Apple, Nike—have stayed relevant without betraying what they stand for. - Sears was once a retailer where you could get pretty much anything, and even some brands you couldn’t get anywhere else. But retail changes and Sears became a “store that lacked any sort of distinction, and the legacy part of its story just wasn’t enough.” Kohl's, on the other hand, builds on its past success but adapts as customer needs change. They have maintained large stores in non-mall locations for easier accessibility, but they renovate, inside and out, more often than other, similar retailers, and have developed their own store brands valued by customers. - Customers now look to retailers to be curators who have vetted what goes on shelf on their behalf. Costco Wholesale is an example of a retailer trusted by customers for the quality of their products and that has developed a strong store brand that is recognized as not always the least expensive brand in the store but one that the store stands behind. Nike, Apple, and Patagonia are all brands that have stayed true to the brand values, identity and emotional connection to the consumer, but who have stayed current by keeping their products cutting edge. Barbie, aside from the huge boost afforded by the movie, has evolved as the world has, introducing inspirational likenesses of ABT dancer Misty Copeland, NASA mathematician Katherine Johnson, artist Frida Kahlo and others, and making Barbie more inclusive of body types, skin tones, and abilities. - Gillette, on the other hand, was blindsided by Dollar Shave Club and Harry's Inc., which undercut Gillette’s prices and went directly to the consumer with a story and a subscription model, breaking consumers’ habit of going to a store for razors. Gillette has since launched its own subscription service, but not before losing market share that will be difficult to gain back. Johnson's baby , used by generations of parents for its promise of “no more tears,” saw sales fall as consumers became wary of its additives, a trend that J&J missed because it wasn’t monitoring consumer chat or sales online. Campbell's soup, despite being iconic, has had a hard time capturing younger consumers who don’t have the same warm memories of the brand and are skeptical of anything that comes out of a can. - Legacy brands are now up against with a wider competitive landscape; retailers who were once a big deal are now one of many physical and online stores, and the amount and accessibility of information about them is nearly inexhaustible. Not only can you find out what is offered elsewhere but there are reviews on everything from pricing to experience to the company’s politics and ethical policies. #nostalgia #brand #branding #retail #customer #consumer

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THERE ARE INFINITE DEFINITIONS OF BEAUTY. WHAT'S YOURS? Join me in signing Coty’s petition to change the current outdated dictionary definition and examples now: https://lnkd.in/ggjrfVrd. #UndefineBeauty #CotyPride

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Mars Inc.'s acquisition of Kellanova for $36 billion is a significant move in the packaged goods sector, highlighting ongoing consolidation trends. What was once considered a spin-off from Kellogg is now a valuable asset for Mars, demonstrating that one company's divestiture can become another's strategic gain. https://lnkd.in/gtbpYMPC #consolidation #consumerpackagedgoods #acquisition #divestiture

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Check out this McKinsey podcast that captures trends in consumer wellness. In the interview, Anna Pione discusses key insights from recent research on the consumer wellness market, highlighting the global shift in consumer priorities toward health and wellness. The research, involved a survey of consumers in the US, UK, and China, and revealed that a significant majority view wellness as a crucial aspect of their lives, with increasing investment in categories like health, fitness, and nutrition. Interestingly, consumers are showing a preference for clinically effective products over merely "clean and natural" options, driven by a desire for proven results. The interview also touched on the importance of healthy aging and the rising interest in weight management and gut health, underscoring the opportunities for innovation in these areas. Lastly, Anna noted the pandemic's impact on consumer behavior, accelerating the focus on proactive health management and the potential of gen AI to personalize wellness interventions. LIsten to or read the script below. Happy learning! What’s new in consumer wellness trends? | McKinsey https://mck.co/4bhGGGZ

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If there’s one trend that unifies today’s atypical consumer behaviors, I’d say it’s ‘thoughtfulness’.       The “next” shoppers are making trade-offs between value, sustainability, quality, economic optimism, and more. It’s keeping brands and retailers on their toes, and invalidating one-size-fits-all strategies.       As Sajal Kohli says: “Retailers and consumer product companies have to really open up the aperture and think about different pricing, product portfolio, and category portfolio strategies.”      Thanks Sajal and Roberta Fusaro for this great conversation on what’s next for retailers, brands, and CPGs.       #ConsumerBehavior #Pricing #B2C #B2B2C 

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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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Snacking is alive and well, and it's not going anywhere. It really doesn't matter what the causal factor is - inflation, recession, even a JFKJr "Make America Healthy Again" (I am unsure that it ever was, at least not in the last 50 years) - people will continue to snack. It's not like people don't know that it's not really good for them - heck, they know up the ying-yang that smoking isn't, and drinking isn't, but yet, not only do they continue, but, they start. Same with fast food - it's really not in decline, not in any appreciable amount. And get this - when things are tough, many consumers will treat themselves to a small indulgence, which is, guess what? A chocolate bar or bag of chips or a even a Twinkie... I don't see Americans or Canadians, suddenly on a health kick - and I am not sure what can be done to make them start. Maybe some special tax on some foods, under the rationale that they increase health costs, it might reduce consumption slightly (maybe), but I doubt it will make a dent. And God help us if everyone goes onto some form of a semaglutide - I am not sure that would be any better... ...except maybe, for the syringe manufacturers. https://lnkd.in/gPXhrYAR

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Consumer escapism trends are on the rise. As people look for ways to de-stress, nostalgia, inspiration, aspiration, and self-care have become key themes in consumer shopping behavior. Read Circana's full report for more: https://bit.ly/4dwX46N

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I am honored to have contributed an expert insight to the new book Powerful Phrases for Dealing with Workplace Conflict by Karin Hurt and David Dye! Whatever your career / volunteer tenure, I promise you will find valuable nuggets here. Appropriate for C-suite & board members to recent grads, Karin and David have mapped paths using 300+ phrases to successfully navigate many tricky situations...the advice is specific, practical, and immediately applicable! #extraordinarywomenonboards #ewob Lisa M. Shalett https://lnkd.in/eXbmzEa5

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Be in the consumer's mind. Be visible & findable. The principles of brand strategy apply to all brands in all ages. They can enable market share growth. This WSJ article (may be paywalled) sparked these thoughts in me. I find Dr Pepper's rise in the cola wars fascinating. Its long history combined with innovative consumer promises. The brand's ability to adapt to changing consumer preferences while staying true to its brand positioning is an asset. In my view it is what has enabled it to succeed and grow while being an "underdog" in the soda market. This makes me think that the real benefit consumers are buying is not a "soda" but the strong brand behind it. What stood out for me: 1. Dr Pepper is now only behind Coke. It has recently tied with Pepsi-Cola as the No. 2. Key drivers:marketing investment, distinctive product line, and, very importantly, widespread distribution.. 2. Older but distinctive. Dr Pepper, founded in 1885, is older than Coca-Cola and Peps. In my view, what sets it apart is not only about the recipe of 23 flavors, but its distinctive brand promise. 3. Not behaving like #3 but like the better choice works. Dr Pepper's popularity is growing. What matters most is to know what mindset it appeals to rather than the superficial demographic observation that Gen Z drinkers and minority consumers are preferring it. It makes me think that there is more depth to its strategy than simply the introduction of new flavors like strawberries and cream or the use of TikTok. What do you think? What underdog story do you like? #marketing #branding #management #mentoring Keurig Dr Pepper Inc. Keurig Dr Pepper Canada

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Preservation primer. When purchasing personal care products, I look for 2 things: the active ingredient and the preservative. If neither is there, back on the shelf it goes. I was so concerned about the importance of preservatives that I coined the phrase "preservative diversity" and "preservative palette" as part of preservative innovation challenge with GC3 (now change chemistry) years ago. Let's take a closer look at the world of preservation. Preservation actually isn't just preservatives. In fact, preservatives is the last step. It starts with GMP (water treatment, raw materials, sanitization, etc). Followed by physical protection in packaging design, and then physicochemical protection in formulation design (water activity, emulsion, pH), and then finally the choice of preservatives. It's easy to confuse antimicrobrials and preservatives. Antimicrobrials are bactericidal (kills bacteria), while preservatives are bacteriostatic (prevents growth). Bacteriostatis comes low concentrations that perturbate or increase porosity of cell walls, interfere with enzymes, inhibit nucleic acid replication, and chelate metals. Also don't confuse antioxidants with preservatives. They have a different meaning in cosmetic science. But this same biological activity can also result in irritation, sensitization, and toxicity. Since preservatives are used in virtually in every personal care product, safety must be evaluated as an aggregate across the sector. This is why many countries set harmonized limits, often by product category, set and reset based on usage patterns and new safety data. Conventional preservatives include acids, alcohols, phenols, aldehydes, formaldehydes, isothiazolinones, biguanide, and quats. Inherent safety and performance profiles differ greatly. Newer is the emergence of multifunctional ingredients or "preservative boosters" that by themselves are not good at preservation, but work synergistically to improve performance and reduce the concentration of preservatives, adopted in more modern personal care products. "The inherent toxicity of these ingredients is a problem that the cosmetic industry should be concerned about. Therefore, it is necessary to continue the search for non-toxic and effective preservatives." Safe conventionals + Innovative multifunctionals. This is the way ...

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Interesting take on the battle for consumers during months like Sober October and Dry January from Stephanie Cain 👇 Her commentary below with link in comments 🍻🥂🍹 The wine industry has launched an assault on #SoberOctober and non-alcoholic beverages as if the sole existence of the booze-less category is to put a hit against wine. With its new campaign, Come Over October, wine folks are declaring you should grab a glass instead of going sober, because wine brings people together. Instead, #wine should really be looking at their core messaging because that's why wine is declining. At the #ComeOverOctober kick-off party, I had a conversation with a salesperson of a wine distributor. He attempted to be ok with the evolution of wine by explaining that ready-to-drink, single-serve wine brand, BeatBox, marketed to the 21 to 25-year-old set, was crushing the market. He was all for it. While the brand has wacky flavors like blueberry lemonade wine, he felt that every wine consumer “starts somewhere.” It was promising to him because he said they would “continue their wine journey” and start “drinking real wine.” So many problems here but here is the big one: They don’t often continue the wine journey. News flash, wine people! Consumers don’t have time. We don’t desire it. We want to build connections, not spend the evening only discussing what we want to drink. We have jobs and travel and bills to pay and kids and dogs and aging parents and hell, we just want to buy a house. We have no job security. We have been hit with recession after recession. Right now, inflation is making our groceries cost some 40% more. You really think we are jumping at the time-consuming task of learning about wine? Get real. We’ll grab a #Martini. And start ranting. Which is exactly what I'm doing in today's The Mad Ones 👇 Link in comments. #health #wellness #marketing #alcohol #alcoholfree

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Earlier this year, I was fortunate to attend a Spencer Stuart presentation on the latest US public board trends. Just as interesting was reading how those trends compare and contrast to those around the world: - Board size: Boards are dealing with an increasing number of issues, but average board size hasn't changed much over the years and varies between 9-11, with Germany at the high end (average 15) and Peru at the low (seven. The US average is 11.) - Independent directors: Independent directors now make up the majority of public company board seats, with an average 94% in UK companies, 85% in the US, and 41% in Turkey, the latter an example where controlling shareholders are represented and hold sway in the boardroom. - Director tenure:  Tenure in the US has declined over the last 10 years but is still the highest at 7.8 years. (Spain has the lowest, 3.2 years.) Boards are looking to balance experience with new perspectives; some countries impose term limits: The UK doesn’t consider directors independent after nine years; its average tenure, 4.2 years, is among the lowest. In Hong Kong, a new category, “long-serving Independent Non-Executive Director (INED),” was created for those who have served for more than nine years, and a company board can’t be made up of only long-serving INEDS. - First-time Directors:  Bringing in first-time directors is a way to bring in fresh thinking (and diversity). France has the highest proportion (63%) of new directors who haven’t served on a public company board before; other European countries (Norway, Denmark, Ireland) have also increased the proportion of new directors, while there are fewer this year in the UK (36%) and the U.S. (34%). - Gender diversity: In nearly every country, the proportion of women on boards has increased since 2022. Most countries in Europe have government-backed targets or quotas to ensure greater gender diversity: Of the top public companies, 95% in France, 80% in Norway, and 53% of the top 150 FTSE in the UK have at least 40% women on their boards. This compares to 21% of S&P 500 boards in the U.S. - Board leadership: Women are chairing more boards, though in most countries, they still chair fewer than 10%. Italy and the U.S. have the highest percentage; women chair 18% of S&P 500 companies vs 7% a year ago. With more women independent directors in leadership roles like committee chairs and senior/lead directors, there should be a pipeline to move up to board chairs. - Board effectiveness: More boards are looking at how they can operate more effectively, whether by being evaluated by an external facilitator (in some countries, governance requires boards undergo an external review at least every three years) or internal assessment. I n South Africa, 59% of boards used an external facilitator in 2023, while fewer than 10% of boards in Norway, Finland, Switzerland and Hong Kong used them. #boardofdirectors #corporategovernance #governance #directors #womenonboards

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What do grocery data (how, when, and what you buy) and traditional credit scores have in common?  According to research by Professor Eric Anderson and his colleagues at Northwestern University - Kellogg School of Management, they both effectively predict how consistently you’ll pay off your credit card bills, making it an interesting alternative for lenders to gauge the creditworthiness of applicants who have no credit score. This could bring new customers to banks and improve access to credit for the 26 million in the US (and more than a billion globally) who are “unbanked.” Some findings: - People with consistent supermarket behaviors tend to pay their credit cards on time: They shop at regular times of the day and weekdays. They make repeat purchases. They spend about the same amount of money each time and look for bargains. Even controlling for credit scores, income, and socio-demographic factors, there was a correlation between grocery habits and credit risk. - It’s not just about how you shop but what you buy: Cigarette purchases are a big predictor someone will default (i.e., miss two consecutive credit card payments), as are those of highly processed foods and energy drinks. “The single greatest indicator of a non-defaulter. . . was spending a significant amount on vinegar salad dressing,” as well as ingredients that suggest healthier eating and home cooking, such as milk, flour, beans, and fresh produce. - Grocery data is most effective in determining the creditworthiness of credit card applicants who don’t yet have credit scores, but less effective in incrementally assessing those who already do. Similarly, the data is most helpful at predicting whether someone will default soon after they get a credit card; less useful once they begin to build a credit score. “‘That’s the world we’re heading towards, which is your data is going to be cutting across lots of different domains and being used in ways you may not have thought before,’ Anderson says.” On the one hand, it could provide access to a loan in the case of an emergency to those who might not otherwise be able to get one, and it can help lenders anticipate a default and intervene in advance, which is better for everyone. “Still, . . . the idea that the choices you make while filling up your grocery cart could impact other parts of your life in ways you don’t understand, or consent to, may sit uneasily with many.” #credit #data #shopping #shoppers #consistency #habits #creditrisk #supermarket #insights

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The Coca-Cola Company confirms its formidable pricing power & its strong revenue management capabilities with a both top and bottom line beat The sentiment is also confirmed by the positive results in some of KO key bottlers (e.g., CCHBC) Volume development, in the next quarters, will have to be closely monitored though with PPA/ promos as key adjustment variables Coca-Cola Q1 FY24 results summary: • NR: $11.3bn • OSG: +11%; Volume: -2%; Price/ mix: 13% • GM%: 62.5%; +184 bps vs Q1 2023 • Adj. OP%: 32.5%; +34 bps Results by Operating Segments: • Europe, Middle East & Africa: $ 1,973m NR; OSG: +15%; (Volume: -7%; Price/ mix: 22%) • Latin America: $ 1,527m NR; OSG: +22%; (Volume: 0%; Price/ mix: 22%) • North America: $ 4,174m NR; OSG: +7%; (Volume: 0%; Price/ mix: 7%) • Asia Pacific: $ 1,469m NR; OSG: +7%; (Volume: -1%; Price/ mix: 8%) • Global Ventures: $ 740m NR; OSG: +1%; (Volume: 2%; Price/ mix: -1%) • Bottling Investments: $ 1,817m NR; OSG: +13%; (Volume: 7%; Price/ mix: 6%) Analyst Consensus: Beat analysts’ consensus for both revenue and EPS FY24 guidance: Updated • OSG: 8% - 9% (updated) • Comparable net revenues (non-GAAP): o 4-5% currency headwind based on the current rates and including the impact of hedged positions (updated) o 4-5% headwind from acquisitions, divestitures and structural changes (no update) • Comparable EPS (non-GAAP) growth: o 7-8% currency headwind based on the current rates and including the impact of hedged positions. The majority of currency headwinds are due to currency devaluation resulting from intense inflation o Expected to include ~ 2% headwind from acquisitions, divestitures and structural changes • Comparable currency neutral EPS (non-GAAP) growth: 11-13% (updated) • Comparable EPS (non-GAAP) growth: 4-5%, vs $2.69 in 2023 (no update) 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #cpg #fmcg

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There is a Marketing concept called eating your own young. This is an example. As a vehicle to help to elevate a premium brand positioning, it could help, but as a vehicle to generate incremental consumption, not so much - all you will get that's incremental, is pipeline sell-in. Most of the shopper purchases will be instead of Grey Goose. Classic cannibalization. What would make more strategic sense? Leveraging and reinforcing the French brand positioning and the premium positioning, via a Grey Goose - champagne variant - cognac variant addressing a different, and therefore incremental, consumption occasion. Those, I would endorse as smart Marketing.

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Building a strong organizational culture is ultimately about intentional actions and thoughtful strategies. These are two trends I find particularly meaningful for B2B. ▶ Middle management is a critical asset. This group is absolutely instrumental in bridging strategy and execution, not to mention motivating and focusing the rest of the organization. Investing in their development empowers them and strengthens the entire organization. Support them and they will make magic happen. ▶ Change management best practices are evolving. Change is hard. You can’t just ignore it and hope it works out positively. You have to do the hard work to understand the impact and lead with agility and empathy. This is one of the most overlooked disciplines that can make the biggest impact in terms of success, IMO. #B2B #Empower #ChangeManagement

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UNFI just reported a surprisingly good Q3. Everyone in our industry should be celebrating. Their earnings call outlined how their larger Natural/Organic/Specialty accounts (WFM/TFM/GFH) are performing well. It’s a good thing, that these accounts are continuing to perform well and showing consumer resilience against persistently high pricing. This opens more innovation into more doors, and allows for the transfer of market share from Big CPG to emerging brands. It’s also a good thing their simplified fee structure (SSA) is paying off and producing more sustainable EBITDA rates for them because the stability of their supply chain network is important for retailers. There’s a nascent cottage industry built around helping small brands navigate UNFI’s “deduction” process. It’s important to understand that this 7% “Inside Income” forms the basis of their core profitability model. Nobody is going to “outsmart” or “outhustle” that 7% model long-term. Every brand signs the Policies and Procedures document and the details are all in the minutiae there. It’s important to understand that UNFI does not make its profits selling product…they earn more than 100% of their EBITDA by BUYING product. Their fees aren’t “predatory” they are just optimized for mature, larger brands who make up more than 80% of their sales. If you want a simplified no deduction model, and you don’t want to have to patchwork together 5-10 smaller distributors to reach national scale, you should work with us instead. We only make money when we sell product and we only work with emerging, growth brands. ALL of our fees are posted on our website, and we explain them to every brand that onboards with us in a 30 minute call. We can onboard you by the end of the day today if you want. Otherwise, UNFI is a very competent incumbent, and they are here to stay. Pod Foods #innovation #unfi #grocery

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