Kieran South’s Post

Consumer behavior varies by market, which makes it challenging for RTD brands to find global success. Flavor continues to be the most important attribute for RTD consumers in the US, whereas Low Price is the most important for Australian RTD drinkers. #RTD #consumer #brand

🚨 Lindt & Sprüngli vs. The Hershey Company: A Sweet Showdown 🍫 🚨 Two global chocolate giants, two very different strategies, but who’s leading the race? Let's break it down: 💰 Revenue (2023) Hershey: $11.2B Lindt: $6.2B Hershey dominates with its diversified portfolio in the U.S., while Lindt focuses on premium chocolate and international expansion. 📈 Yearly Revenue Growth Hershey: 15.0% (2023) Lindt: 7.0% (2023) Lindt is growing steadily but still lags behind Hershey’s faster climb. 📊 Net Profit (2023) Hershey: $1.86B Lindt: $798M Despite impressive topline growth, Lindt's profits don’t yet match Hershey’s streamlined cost structure. 🏭 EBITDA (2023) Hershey: $2.95B Lindt: $1.19B Hershey’s efficiency in operations is clear here too. 💳 Net Debt (2023) Hershey: $5.03B Lindt: $1.42B Lindt keeps its balance sheet leaner, giving it flexibility for future investments. 💵 Free Cash Flow (2023) Hershey: $1.13B Lindt: $464M Hershey’s ability to generate cash flow is unmatched. 👩💼 Headcount (2023) Hershey: 19,600 employees Lindt: 14,500 employees Hershey’s larger workforce supports its diversified operations. 🔬 R&D Investment (2023) Hershey: $50M Lindt: $24M While both are innovating, Hershey is clearly spending more on research. 🏢 Market Cap (2024) Hershey: $36B Lindt: $26B Hershey takes the lead in investor confidence. 📊 Margins (2023) Gross Margin: Hershey 67% vs. Lindt 44% EBITDA Margin: Hershey 26% vs. Lindt 19% Hershey’s cost structure gives it a clear edge in profitability. Final Thoughts 💡 Hershey’s focus on diversification and the U.S. market has paid off with strong profitability and efficiency. Meanwhile, Lindt’s premium, international approach is building a strong foundation for future growth but hasn’t yet caught up in bottom-line performance. Who’s your favorite in the chocolate wars? 🍬 Let’s hear your thoughts below! #Hershey #Lindt #ChocolateIndustry #BusinessAnalysis #Strategy Jens Taylor, Sam Farooqi, Gino Caponi, Kris Meulen, David Hulays, Lauren Pruitt, Vinny Rinaldi, Ana Sagaon, SHRM-SCP, Eric Brewer, Charlie Chappell, Eric Clawson, Marisa Magnotta, MBA, LaQuita Gary, Mark Mazick, John Maitrejean, Rohan Chintalapati, Christopher Gaughan, Michael Reese, Edward Edson, Melissa Elliott Bryce, Laura Renaud, Ryan Riess, Daniel Mohnshine, Maurice Stanfer, Ryan Brice

🚀 NOTO Ice Cream: A Case Study in Growth and Valuation for Early-Stage Brands 🚀 Excited to share insights from my recent financial model for NOTO Ice Cream—an internet-first brand that’s redefining India’s frozen dessert market with healthier, low-calorie options! In addition to highlighting NOTO’s journey, this model sheds light on the private company valuation methodologies that make sense for rapidly growing brands in the FMCG space. Let’s dive in: Why NOTO Stands Out 🍦: NOTO’s focus on guilt-free ice cream and other frozen desserts (<100 calories) resonates strongly with health-conscious consumers in India. With recent growth of 282% YoY and product innovations like macaron ice cream sandwiches, NOTO has quickly become a favourite for those seeking delicious, low-calorie treats. Valuation Methodologies 🧮: In the early growth stages, determining a fair valuation requires a mix of approaches. Here’s how these methods apply to NOTO’s journey: 🔹 Discounted Cash Flow (DCF): DCF is a vital tool to capture a brand’s long-term potential, discounting future cash flows to today’s value. For instance, NOTO’s expected growth and a WACC of 22% produced a valuation of approximately ₹140 Cr, reflecting future scalability and market demand. 🔹 Market Comparable (Trading Comps): To gain a relative valuation perspective, we also look at revenue multiples from peers. Companies like Hatsun Agro and Gopal Snacks, with EV/Revenue ratios around 3.5x-5.1x, suggest an equity valuation range for NOTO near ₹89 Cr. This comparison shows how market expectations and industry benchmarks can affect valuation estimates. 🔹 Early-Stage Premiums: With private, early-stage brands, an additional premium (here, around 10%) is often factored in to account for risks like marketability and liquidity. This helps capture the unique challenges and opportunities for startups carving out new spaces in competitive markets. Growth Potential vs. Market Realities 🌍:  The Indian ice cream market is set to cross $5 billion by FY25, with organized brands accounting for 65% of the market. While competition is robust with established players, NOTO’s emphasis on health-focused innovations and digital distribution through quick-commerce platforms positions it to lead in this space. 📈 The Road Ahead: With recent funding and strategic partnerships, NOTO is on track to expand beyond metro cities and deepen its product range. However, maintaining steady growth will depend on scaling cold-chain logistics, sustaining customer loyalty, and continuing to innovate for evolving health trends. 💬 What Do You Think? Which valuation methods are most effective for early-stage brands like NOTO? Would really appreciate if Varun Sheth and Ashni shah could shed some light on this data!🤩 NOTO - Healthy Ice Cream #Valuation #PrivateCompanyValuation #DCF #MarketComparables #IceCreamMarket #HealthierChoices #FinancialModeling #GrowthStrategy

SPINS | CPG Disruption in 2024: https://hubs.ly/Q02Cl30b0 The consumer packaged goods (CPG) landscape in 2024 is marked by significant disruption driven by innovative brands that are challenging traditional market leaders. These disruptions are not only transforming product categories but also reshaping consumer expectations. The evolution from “better-for-you” products (BFY) to those emphasizing sustainability and international flavors is a testament to this shift. For more information about how MSI Express is charting a path for success, reach out to Chuck Woods or Rob Carstens. MSI Express has 14 locations in 6 states to provide you with operational excellence & world class speed to market. MSI Express is a strategic, innovative contract manufacturing and packaging company. Our growing breadth of capabilities and trusted team of problem solvers are a perfect match for the challenges of today’s CPG world. https://hubs.ly/Q02ClhkM0 #manufacturing #supplychainmanagement #innovation #MSIExpress #foodindustry #foodmanufacturing #packagingsolutions #foodandbeverage #sustainability #packaginginnovations #petfood #petfoodindustry #inc5000list #snackfood #gummies #supplements #consumerbehavior #packaging #foodbusiness #foodandbeverageindustry #food #foodandbeveragemanufacturing #innovation #supplychain #contractpackaging #contractmanufacturing #copack #copackager #packaging #cpg #cpgindustry #comanufacturer #brand #energy #compliance #foodsafety #quality

Today's article in the New York Times about the challenges with the CBD category are accurate. Those of us who have been building brands in the category for years have faced numerous challenges we never anticipated. Starting and growing a beverage brand is hard on its own, but even more difficult when you can't sell what you make to the masses. Despite the numerous challenges, the category continues to perform well in independent retailers; and at Sprouts, the largest retailer to launch a CBD drink set. It's hard to predict the future, but I'm optimistic the category will grow as changes at the federal level allow us to eventually enter bigger chains. Building a brand takes years, and you either adapt or die. VYBES is a brand that will be around for a long time. https://lnkd.in/g8uDzK62

🎉 I am delighted to share a project completed in Power BI .A renowned beverage brand, has been operational for over three years, offering a range of high-quality sodas that cater to various customer preferences. Collaborating with retailers across multiple regions, the company aims to evaluate its sales performance through insights gathered from a Power BI dashboard. The objective is to optimize resource allocation, improve profitability, and enhance future marketing efforts by identifying trends, top-performing regions, and retailers. ✍ Project Highlights/Insights ➡️ Top Performing Retailers: Sodapop is the top retailer, contributing $4.4M in revenue, followed by FizzySip with $2.1M, BevCo with $1.3M, and DreamCo with $0.4M. Sodapop accounted for more than half of the total revenue, making it a crucial partner for Bentey Beverages. ➡️ Monthly Sales and Expenses Trends: There is a noticeable increase in revenue and expenses from May to August, with the highest revenue in July, followed by a steady decline in the months of September through December. This suggests a strong seasonal component, with summer months driving higher sales and operational costs. ➡️ Units Sold by Beverage Brand: Coca-Cola led unit sales with 4.0M units, followed closely by Dasani Water and Diet Coke (both at 2.9M units), indicating the high demand for these products. Sprite (2.6M), Fanta (2.1M), and Powerade (2.0M) rounded out the top-selling brands, showing a strong preference for carbonated and flavored beverages. ➡️ Regional Performance: The Southeast region generated the highest revenue of $2.37M (28.98%), followed by the Midwest with $1.75M (21.47%), and the South with $1.6M (19.65%). The West and Northeast regions contributed $1.29M (15.82%) and $1.15M (14.08%), respectively. This geographical breakdown indicates that the Southeast region is the most lucrative market for Bentey Beverages. 🎯 Recommendations: ➡️ Focus on Sodapop for Future Growth: Given that Sodapop is the top-performing retailer, Bentey Beverages should consider strengthening this partnership by offering exclusive promotions, optimizing inventory levels, and targeting more marketing efforts toward this retailer. ➡️ Capitalize on Seasonal Trends: The revenue and expenses trend suggests that summer months are the peak sales period. Bentey Beverages should plan to ramp up production and marketing efforts leading into the summer season to maximize profitability. ➡️ Expand Distribution in the Southeast: As the Southeast is the top-performing region, Bentey Beverages should explore opportunities to expand distribution and marketing efforts there. This could include onboarding additional retailers or enhancing the presence of top-selling brands like Coca-Cola and Dasani. ➡️ Optimize Cost Management for Coca-Cola: Since Coca-Cola has the highest expenses, the company should analyze cost structures and evaluate ways to optimize production and distribution cost to improve profit.

🍫Lindt & Sprüngli vs. 🍬 The Hershey Company: The only universal truth is that everybody likes chocolate. 𝐂𝐡𝐨𝐜𝐨𝐥𝐚𝐭𝐞 Market🌍 The global chocolate confectionery market was valued at $127B in 2023 and is projected to grow to $169B by 2029 (Statista). 𝐅𝐨𝐜𝐮𝐬 🎯 🍫Lindt & Sprüngli is all about high-end chocolate with a highly international focus. Nearly 100% of their revenue comes from premium chocolate, and they’re strengthening their focus on direct-to-consumer sales through 523 branded stores worldwide. 🍬Hershey’s, on the other hand, is very US-centered and has diversified significantly into gum, mints, protein bars, and salty snacks with acquisitions like Dot’s Pretzels and SkinnyPop Popcorn 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 📊 🍫Lindt & Sprüngli: Europe: 46.3% (Germany 14.7%, France 8%, UK 6.3%) North America: 40.6% (U.S. 34.8%, Canada 5.3%) Rest of the World: 13.1% 🍬Hershey’s: North America: 91.5% Rest of the World: 8.5% In the U.S. chocolate market, Hershey’s leads with 45.4% market share, followed by Mars (26.8%), Lindt (9.4%), and Ferrero (7.7%). 𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧🚚 🍫Lindt & Sprüngli: A strong direct-to-consumer strategy with 523 owned stores in 24 countries and a growing presence in travel retail (airports), which saw 20% growth in 2023. 🍬Hershey’s: Focuses on traditional distribution, with 28% of its 2023 sales coming from McLane Company, Inc., which distributes to convenience stores, Walmart , and other mass retailers. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐬 💰 🍫Lindt (2023): $6.2B in revenue, 19% EBITDA margin. 🍬Hershey’s (2023): $11.2B in revenue, 26% EBITDA margin. Hershey’s benefits from scale, diversification, and dominance in its home market. 𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛𝑠: 🍫Lindt: 67% (premium positioning pays off!) 🍬Hershey’s: 44% (diversification and lower-priced products dilute margins). 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑝𝑒𝑟 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒: 🍫Lindt: $308,000 🍬Hershey’s: $546,208 Hershey’s streamlined focus on one market and its scale advantage drive higher employee productivity. 𝐌𝐲 𝐭𝐚𝐤𝐞 🧁 🍬Hershey’s remains the larger player in both size and profitability, benefiting from its concentration in the U.S. market and streamlined cost structure. Its strategy to diversify beyond chocolate into snacks, and mints provides additional growth avenues. 🍫Lindt, on the other hand, has chosen to remain focused on chocolate and is pursuing growth through internationalization and direct-to-consumer channels, including their branded luxury stores. This strategy is paying off in top-line growth, but it hasn’t yet translated to bottom-line profitability on par with Hershey’s. By the way, I’m a huge fan of Lindt & Sprüngli España y Portugal! I especially love the Gianduiotti—I can’t stop once I start eating them.

Unilever has announced plans to separate its ice cream business from the company. #icecream #icecreamlover #unilever #unileverfoodsolutions #food #foodindustry #foodindustryinsight #foodnews #foodbusiness #foodbusinessnews #foodbusinessowner #foodmanufacturing #foodanddrink #foodandbeverage #foodandbeverages #foodanddrinks #foodanddrinkindustry #foodprices #foodproducts #foodproduction #foodinflation

Thailand Brand Footprint Awards 2024 The Brand Footprint is Kantar’s annual ranking of the most chosen FMCG brands worldwide from its Worldpanel division. It employs a unique metric known as Consumer Reach Points (CRP) to measure and compare the success of brands across different markets and regions. One CRP represents a single instance of a shopper choosing a brand, integrating population, penetration, and consumer choice data to provide a holistic view of brand performance. 2024 is the 12th edition. Most Chosen Brands Mama – 165 million CRPs (Food) Nescafé - 145 million CRPs (Beverages) Colgate - 84 million CRPs (Personal Care) Hygiene - 111 million CRPs (Home Care) Garnier – 40 million CRPs (Beauty) Maybelline – 9 million CRPs (Make-up) Dutch Mill - 139 million CRPs (Dairy) Lactasoy – 66 million CRPs (Plant-based Beverage) #BrandFootPrint https://lnkd.in/gMCAda7C