Illuminate Growth Partners’ Post

FMCG brands like Hovis and Bio&Me stress focusing on core products while finding new ways to drive growth. With stagnant volumes and pressure from sustainability issues, health concerns, and HFSS ad restrictions, brands face challenges. Hovis CMO Mark Brown says brands must seek growth beyond core products due to static demand. He advises a “grow core, add some more” approach, noting that brands need long-term strategies beyond temporary gains to secure future success. #FMCG #Brand #Growth #Marketing

A timely article, given all of the innovation we've seen over the past couple weeks. Disruptive brands in Food & Beverage/CPG gained momentum in 2023, tripling their share of incremental category growth from 2022. Emerging insurgents ($10MM-$25MM) are outgrowing their categories by 10 TIMES, and are expected to grow that share in 2024 & beyond. Innovation that provides consumers with a meaningful value proposition is more important than ever, for insurgent brands as well as larger brands hoping to maintain or grow share. Contact Illuminate Growth Partners if you're looking to accelerate &/or elevate your innovation efforts. We offer advisory services, custom project support, and fractional resources. #innovation #emergingbrands #insurgentbrands #illuminategrowthpartners https://lnkd.in/grMFVi7s?

Innovation versus renovation is a critical choice for CPG companies. A true innovation in food and beverage responds to consumer needs and desires, creating novel experiences that redefine markets. Think plant-based meats meeting sustainability demands or LaCroix's refreshing, health-conscious beverages. These innovations captivate consumers, build brand loyalty, and set new standards. In contrast, renovation focuses on cost-cutting through tactics like downsizing or substituting ingredients, risking product quality and consumer trust. While it boosts short-term profits, it can alienate consumers seeking transparency and value alignment. Embracing true innovation ensures long-term success, driving R&D, embracing consumer insights, and delivering meaningful impact. #CPG #Innovation #ConsumerInsights

If you want to stand a chance of winning in 2025 with your emerging CPG brand… Here’s your 2025 strategic planning “cheat sheet” (yeah, I did your homework) Leaders, here's the raw truth: 2025's supplement/CPG landscape is shaping up like retail's historic shake-up -Walmart went downstream,  -Target went upstream,  -and Kmart... well, they got stuck in the middle and died. Don’t let this happen to your brand. I've done your macro-forces homework that should be used to shape your playbook for winning in 2025. Here are the 10 most critical forces shaping 2025's winners (and losers): 📉 The Scary Stuff (But Don't Panic): —Traditional retail apocalypse 2.0: Vitamin Shoppe's Chapter 11 + GNC's 900 store closures (headed for another BK?) signal massive channel disruption in speciality —Private label tsunami: 7-11's targeting 70% private label sales (yes, you read that right) and other retailers are following their lead —The shipping squeeze:  9.2% postage hikes expected (button up your DTC variable expenses) + continued protein (milk and plant) material cost increases expected through next year —2025 inflation forecast: 2.1% (stable, but make sure you’re employees’ salaries are not losing ground) 📈 The Golden Opportunities (This Is Where You Win): —New administration signaling, shall I dare to say, "friendly" FDA oversight —9% of the U.S. population expected to use GLp-1 … “Ozempic face" creating entirely new supplement categories —Automation, robotics & AI efficiency (if you’re suppliers aren’t making massive investments here, it’s time to move) —Eco-conscious sourcing, and full chain of custody transparency, becoming a premium differentiator —Multi-functional products exploding, especially in “caffeine-free” energy sources, memory, bio-active peptides, and digestion —Sustainability initiatives moving from "nice-to-have" to "must-have" 🎯 The Strategic Moral of The Story: Don't be Kmart. In 2025's supplement space, sitting in the middle = death. You either: A) Dominate value through operational or Cx excellence B) Own premium through innovation, differentiation and protectablity  C) Die slowly in the sea of sameness Pro Tip: Map these macro forces against your current strengths, core competencies and capabilities. Where they intersect is your 2025 goldmine! —— Want my complete list of 32 macro forces shaping 2025 for the CPG industry? Drop a comment below, or DM me. #StrategicPlanning #CPG #Supplements #2025 #Strategy #business #Growth #Innovation #leadership #Entrepreneurship #DTC #retail #Innovation #ecommerce #readyforscaling #readySetSCALE 

Over the first five months of this year, only 35% of global CPG launches were entirely new products, with the other 65% being renovations — reformulations, line extensions, new packaging, etc. #newproducts #innovation #foodindustry https://hubs.ly/Q02H8rbk0

Recent research by the British Brands Group (BBG) and Europanel highlights a significant #innovation deficit in the European grocery sector. Of 18,167 product launches over three years, only 2.1% were deemed truly innovative. 87% of distinctive innovations originating from brands rather than retailers. Why is it so? 👨🚀 High Risk and Failure Rates: Distinctive innovations carry significant risks, with 80% of new grocery launches failing. The investment in R&D and creativity required for such innovation is substantial, which not all companies can afford or are willing to commit to. 📉 Short Market Penetration: Even successful distinctive products often see a decline in market penetration after the initial launch phase, making it challenging to sustain their presence. 🏗 Preference for Incremental Innovation: Many brands focus on incremental innovation to satisfy retail partners and protect against delisting, as small tweaks are often enough to keep the brand fresh. 😖 Complex Consumer Acceptance: Truly new products need to build consumer awareness and acceptance, which takes time and may not always be successful, leading brands to prefer safer, incremental changes. Global Food and Environment Institute, University of Leeds

Calling all FMCG Fanatics! Bain & Company just dropped their 2024 Insurgent Brands list, highlighting the hottest names shaking up the consumer goods scene! This year, 97 brands made the cut, including 48 exciting newcomers. These disruptors are growing a whopping 10x faster than their category average! Who's making waves? Food: Oatly, Feastables, Impossible Foods, Rao's, and many more! Beverages: Athletic Brewing Co., Olipop, Black Rifle Coffee Company, and the non-alcoholic revolution is taking over! Personal Care: Duke Cannon, Happy Dad, Olaplex, and the list goes on! These insurgents are all about innovation, capturing nearly 20% of category growth! They're winning with strong value propositions and flying off the shelves. One thing's clear: consumers are demanding more. They want healthy, convenient, and personalized options that align with their values. These insurgent brands are like an innovation incubator, rapidly testing and iterating on new concepts. The established players would be wise to take note – the future of FMCG belongs to the brands that can keep up with the ever-restless shopper. Full list of FMCG Insurgents: https://lnkd.in/eWk9rAuj #FMCG #Innovation #ConsumerGoods #Disruption #EmergingBrands

The impact of perceived value on brand image and loyalty: a study of healthy food brands in emerging markets Frontiers https://lnkd.in/g24X5-U4

Bain & Company's inaugural Consumer Products Industry Report outlines strategies for CPG companies in 2024. With rising #prices no longer sustainable, focusing on emerging markets is crucial for volume growth. #Brands must navigate evolving consumer preferences and rationalize portfolios. Proactive interaction in digital markets and the use of predictive artificial intelligence and supply chain tracking are recommended for success. #Sustainability is a priority concern, with half of global consumers willing to pay more for sustainable products. Despite the upfront costs, investing in sustainability can bring long-term benefits. 

Brand Design--> Brand Perception-->Brand Reality Therefore: Design=Reality Figure out why you matter, then don't explain, show. Thanks Jason Feifer for illustrating this! LEVEL C