David B. Kroll

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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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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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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“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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💰💡 Latest in Funding, Acquisition, and Finance: 🍦 General Mills Mulls Over $2B Sale of North American Yogurt Business - In a strategic move, General Mills considers divesting its Yoplait brand and other yogurt assets in North America, targeting a deal upwards of $2 billion. 🌱 Edonia Secures €2M for Protein Innovations from Microalgae - French startup Edonia raises €2 million in pre-seed funding from Asterion Ventures and Bpifrance, propelling the development of umami-rich, plant-based ingredients. 🌎 Bezos Earth Fund Pledges $100M for AI-driven Climate Initiatives - With a focus on alternative proteins, the Bezos Earth Fund announces up to $100 million in grants for AI solutions addressing climate change and nature conservation. 🌿 Woodland Foods Acquires Idan Foods - Expanding its portfolio, Woodland Foods takes over New Jersey-based Idan Foods, known for its specialized food coatings, enhancing its offerings in plant-based ingredients. #Funding #Acquisition #Sustainability #FoodIndustry 💰🌿

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Performance has been particularly challenging in the U.S. wine and spirits industry since the post-pandemic “normalization.” But the headwinds impacting distillers and winemakers are not transitory; rather, they are grounded in structural shifts in consumer attitudes and behaviors that are here to stay. The financial challenges across the industry are real, and the time to act is now. In this article, my colleagues Bernardo Silva, Randy Burt, and I discuss why wine and spirits companies should embrace (or enhance existing) financial fitness programs. We also discuss how to do it, in an effective way, while being sensitive to the company’s culture, heritage, image, and market position.

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Performance has been particularly challenging in the U.S. wine and spirits industry since the post-pandemic “normalization.” But the headwinds impacting distillers and winemakers are not transitory; rather, they are grounded in structural shifts in consumer attitudes and behaviors that are here to stay. The financial challenges across the industry are real, and the time to act is now. In this article, our AlixPartners beverage sector experts discuss why wine and spirits companies should embrace (or enhance existing) financial fitness programs. We also discuss how to do it, in an effective way, while being sensitive to the company’s culture, heritage, image, and market position.

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What an incredible 3 days in Chicago at the Institute of Food Technologists (IFT) Annual Event and Expo with colleagues, friends, partners, investors, and customers. Great to attend with Todd Rands, Paul Vajda, Holden Sasser, Bill Aimutis, and Jonathan McIntyre ! The #startup pavilion was brimming with action, people, ideas, and innovation. Highlights from the week: > Innovation startups led by laser-focused founders: I met several innovative startups. While their tech was impressive, the founders stood out even more! They were SMART in their leadership and relentless focus. These founders are careful in how they spend money (like it was their own!), and laser focused on getting product-market fit, proving their first customer, and building an annual recurring revenue stream. >  A wave of women-led startups: It was also great to see a range of startups creating success with founders who were young and talented and women-led! > Old guard, new technology. Also, it’s energizing to see so many successful startups being launched by the ‘old guard’ like myself, bringing 30+ years of experience to new technology in our industry. It’s exciting times in #FoodTech—despite the challenging investment environment. I applaud the perseverance and resilience from founders and innovators that keeps our talent driving forward. Keep going! 

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Millennials make purchasing decisions that reflect their ethical beliefs and budget constraints. Brands can cater to Millennials' ethical and budget preferences by offering functional foods and multi-benefit products. These products not only resonate with the health and wellness values of Millennials but also provide significant additional value, making them highly appealing to this cost-conscious demographic. As Millennials seek products that align with their values without breaking the bank, there’s a unique opportunity for innovation in the functional food sector. Understanding this shift is key to meeting their expectations. Read more about this consumer group here: https://bit.ly/3VCHrDQ FoodNavigator USA Ryan Daily #valueshoppers #consciousconsumers #functionalfoods

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In recent years the beverage industry has witnessed a remarkable shift driven by the preferences of younger consumers. Two emerging trends, non-alcoholic spirits, and boba, have captured the attention of younger folks and are experiencing significant growth as a result. According to the article, one-third of consumers ages 18 to 24 abstain from alcohol altogether. This shift in drinking habits has paved the way for the emergence of non-alcoholic drinking options, providing consumers with sophisticated and flavorful alternatives to traditional alcoholic beverages. #DrinkingTrends #YoungConsumers #Boba #NonAlcoholicSpirits

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Do you check out Circana's mid-year outlook for your industry? You should. Despite the economic challenges of recent years, Circana’s accurate forecasts have been crucial in guiding industry players. With 2024 showing stabilization and slight growth, industry leaders can leverage these insights to strategically stimulate demand and drive profitable growth. Key takeaways: - **Volume Growth**: 0.8% in 2024, closely matching Circana’s forecast. - **Price Increase**: A modest 1.4%, reflecting an easing of inflation across the sector. - **Top-Line Growth**: 2.2%, aligning with Circana’s mid-year projections. Looking ahead, Circana predicts continued but moderated growth in 2025, with top-line growth expected to be between 2.5-3.5%, driven primarily by price increases. #FoodAndBeverage #ConsumerBehavior #MarketInsights #FMCG #RetailGrowth Link to the full article: https://lnkd.in/gc8XeAXK

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Hey Network: "There is no silver bullet to guarantee product adoption in the marketplace. However, businesses can implement strategies before launch to improve market readiness and increase the likelihood of securing a place in consumers' weekly dinners." If product adoption is something that your company struggles with, please listen to this episode CPG Launch Leaders featuring TPG's own Eleni Shipp and reach out to Eleni or I so that we can share strategies that can help you secure your place in the weekly dinner rotation. #food #CPG #newitems #newitemlaunch #ecommerce

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I’ve been a part of hundreds of NPD and innovation sprints throughout my career...and it seems to never fail that a CPG industry colleague asks me about my personal flavor preference. If they knew my favorite childhood pop growing up was Squirt or that I probably ate my weight in orange and lemon Starburst...it would be a silly question to ask! Even as an adult kid…my go-to powdered supplements, hydration beverages, or energy drinks usually center around citrus flavors. I’m mentioning all this because you’d think, a citrus lover like me, that I would be acutely aware of Matt McLean and his company Uncle Matt's Organic. But with the decadelong massive proliferation of products/brands across the different functional CPG categories that I deeply analyze…it unfortunately creates blind spots. Though that’s the great thing about these conversational content pieces… I get to find those fascinating individuals that are indirectly related (but pivotal) to my core functional CPG categorical focuses. And I think you’re going to love hearing Matt’s inspiring entrepreneurial story that spans a quarter-century… - family farm side hustle that grows into a national CPG brand - gets acquired by Dean Foods - buys Uncle Matt’s Organic back several years later during the Dean Foods bankruptcy Moreover, Matt explains how he "leads from the front" to push the citrus industry forward...whether that's: - helping solve the citrus greening disease challenge - organic and regenerative agriculture practices - innovation product in a "health and wellness consumer era" But these are just some of the interesting topics we chatted about in this episode... #strategy #trends #markets #fmcg #cpg #beverages #juice #organic #agriculture #leadership #sustainability #sportsnutrition #supplements #wellness #nutrition #innovation #marketing #branding #productdevelopment #retailing #merchandising #retail #grocery #business #businessintelligence #entrepreneurship https://lnkd.in/gFGvzGeq

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To sell more beverages at retail, you gotta "get lips to the liquid," says Michael Russo, Chief Growth Officer at Wild Bill’s Craft Beverage Co. And Wild Bill's certainly knows how to do that. For more two decades the brand has been selling its nostalgic flavors of soda from taps on portable wagons at fairs, festivals and other events such as New York's Comic Con. Customers would buy a 34-ounce barrel mug with the Wild Bill's logo etched onto it (and often customized with the event logo, too), fill up, and return for unlimited refills during the event. The variety of sodas includes classic favorites like Root Beer, Black Cherry, Orange Cream, and Vanilla, as well as seasonal flavors like Rocket Pop and non-boozy Mojito in the summer. Customers would then register their mug online to receive event alerts and special promotions. However, when the pandemic shut down in-person events, Wild Bill's pivoted and launched a line of ready-to-drink beverages in cans that are now available in more than 1,300 stores. With in-person events now back in full swing, and the Wild Bill's pop-ups at 400 events each year, the brand has started leveraging these massive sampling opportunities to drive sales at retail. Brand ambassadors at these events are well-versed in which local retailers carry the RTD cans and provide coupons to drive traffic to them. In addition, since customers register their mugs online, Wild Bill's keeps them aware of new retail locations and also sends them promotions via email. For example, Wild Bill's has pop-ups at 50 events in Ohio each year, and at these events its brand ambassadors direct customers to Jungle Jim's International Market to find the RTD cans. In this video with Joseph Tarnowski, recorded at ECRM's Foodservice Session, Michael gives an overview of the company, and details on how "getting lips to liquid" at these events helps to drive sales of the RTD sodas at retail. He also discusses their plans to expand distribution at independent restaurants, so if you are a foodservice operator looking to add a bit of nostalgic flavor to your mix of beverages, you can find Wild Bill's on RangeMe or at an upcoming Foodservice Session (we'll link to it in the comments below). #beverage #foodservice #retail #restaurants #hospitality #cpg #ecrmrangeme

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🚀 Big thanks to ECRM for featuring our Chief Growth Officer, Michael Russo, in a fantastic interview discussing Wild Bill's omni-channel strategy! Joseph Tarnowski, speaking from the perspective a of buyer, posed the PERFECT question that truly captures what sets Wild Bill's apart: "How are you going to support the product once it's on my shelves and get it into consumers' baskets?" The answer is simple: we build brand loyalty by delivering an authentic, unique, and nostalgic experience at local events—something we've been successfully doing for 20 years. 📍 Special shoutouts to our amazing partners where this strategy is perfectly displayed: - Associated Food Stores and FanX® Salt Lake Comic Convention™ in the Utah market - 35+ events in New Jersey annually to support ShopRite, Kings Foods, Balducci's Food Lover's Market, Livoti’s Old World Market, etc. - 30+ events (The Ohio State Fair, Fan Expo Cleveland, etc.) in Ohio annually to support Jungle Jim's International Market, Walking Distance Brewing Co., Candy Craze, Urbana Brewing Co., etc. 💡 When the pandemic hit, we pivoted to launch our ready-to-drink (RTD) beverages in cans, now available in over 1,300 stores. With events back in full swing, our pop-ups at 400 events annually are key to driving sales at retail. Our brand ambassadors expertly direct customers to local retailers and provide coupons to boost traffic. Michael also shares insights on expanding our distribution to independent and small/medium sized chain restaurants. If you're a foodservice operator looking to add some nostalgic flavor to your beverage mix, you can find us on RangeMe or at an upcoming #ECRM Foodservice Session. Check out the full interview with Joseph Tarnowski and learn how "getting lips to the liquid" is driving our retail success! 🍻 #Beverage #Foodservice #Retail #CPG #Restaurants #Hospitality

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Major news in the FMCG world today - Mars and Kellanova have struck a historic $35.9 billion acquisition deal (14 times Ebita from last Qtr). This deal is one of the largest in packaged foods business since the Kraft and Heinz merger. Note Mars accquired Wrigley in 2008 for $23B. Will this move set to reshape the food manufacturing landscape? Mars’s acquisition of Kellanova is expected to complement its existing portfolio, which includes brands such as Snickers, M&M’s. In 2023, Mars reported net sales of more than US$50 billion, driven by its 150,000 associates across pet care, snacking and food businesses. Mars’s pet care portfolio includes the likes of Royal Canin, VCA, Pedigree, Banfield and Whiskas. As these giants combine forces. This will advance Mars’s strategic vision for the future of snacking. The integration of Kellanova’s brands will provide Mars with entry into new snacking categories, including the addition of billion-dollar brands Pringles and Cheez-It to its portfolio. The acquisition will also enhance Mars’s health and wellness offerings with products such as RXBAR and NutriGrain, aligning with global current consumer trends. Kellanova has their Better Days Promise initiative and Mars has their Sustainable in a Generation plan. Their combined impact will be significant in the world of food.

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Interesting read. How are you mitigating financial swings during these tumultuous times? What are your thoughts on trade and tariffs? https://lnkd.in/gYBjf5QA

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Performance has been particularly challenging in the U.S. wine and spirits industry since the post-pandemic “normalization”. But the headwinds impacting distillers and winemakers are not transitory; rather, they are grounded in structural shifts in consumer attitudes and behaviors that are here to stay. The financial challenges across the industry are real, and the time to act is now. In this article, our AlixPartners beverage sector experts discuss why wine and spirits companies should embrace (or enhance existing) financial fitness programs. We also discuss how to do it, in an effective way, while being sensitive to the company’s culture, heritage, image, and market position. #wine #spirits #alixpartners

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🍷🍺 From craft beers to premium spirits, Sazerac oversees a colossal portfolio of 500 brands. In a recent interview, President & CEO Jake Wenz shares how the company stays "focused" amidst its vast offerings. Don’t miss this in-depth look at their strategy. https://lnkd.in/gSBfq7dE #BeverageIndustry #Spirits #Leadership #BusinessStrategy

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