If you have a CPG brand that has healthy margins and a non-premium product, big retail might be a good way to get quick reach and exposure. I did work for one of the largest snack manufacturers and found that among its 4 marketing Ps, distribution accounted for the vast majority of its sales. But this only works if you have high margins to spare and efficient manufacturing at scale. If you're smaller, you would probably be better off building a combination of DTC and online retail distribution first, enhanced by smaller retail distribution to drive trial in select markets that align to your distribution nodes.
Retail Growth Strategist for Emerging CPG Brands | Faire Sales Specialist | Founder & CEO @Product & Prosper, @The Prosper Lab, @The Retail Lab
I've been seeing a *lot* of CPG brands make this same mistake: They're seeing closures of many key paths to market (like Foxtrot), and taking it as a sign that they should go straight to big retail. But let's be clear: **Most brands should NOT launch straight into big retail.** Historically, brands that have found success by launching straight into big retail share these characteristics (from what I’ve analyzed): → They have an extremely large addressable market → They have pre-existing brand awareness → They have access to capital and a retail execution network → They have a relatively simple product innovation that most people will understand immediately Think: Oreo’s Double Stuffed, Liquid Death Water in a Can, Sugar Free Coke If this doesn't describe you, proceed with caution. Retail can be your biggest sales channel...when you’re ready. But we need to respect the growth curve. Instead? Invest your time into other entry points to market for emerging CPG brands, like: 🌟 INFRA 🌟 Pod Foods 🌟 Faire 🌟 Pop Up Grocer 🌟 National Co+op Grocers Want to take this build-up approach to retail...but don't know where to begin? I'd love to support you on your journey going to retail. Shoot me a DM!