Nicholas Bertram

One trend which was in full force before Covid and has picked up momentum, is labor reduction in retail grocery. Even high margin Full-service meat and deli counters have been replaced by grab and go self service designs. The labor costs are just too high for a majority of retailers to maintain on a contribution margin basis. But we might see the pendulum start to swing back the other way now, in smaller format store concepts. It looks like the market might be ready for a “Cafe-Shoppy Shop hybrid” based upon a higher labor model with higher cusotmer count (per square foot) to support it. Someone will need to come up for a catchy name here for these “shoppy-cafe’ “ concepts like Eater ‘s feature here on La Grocery and Cafe which opened this month. This is good news for innovation, and good for overall quality food access across the country. This idea combines a 30% labor model of a cafe with the 8% labor model of a curated boutique. With that hybrid model, it’s possible to have knowledgeable staff who knows and cares about early stage brands, which creates a flywheel of cusotmer count who wants more “discovery” of innovative products. This can very easily evolve and translate into cool c-store concepts across the country with curated local assortment, good coffee, and better-for-you food. We should all root for these concepts to proliferate, if we want emerging CPG to flourish in the New World Order. Pod Foods Jac Moskalik Craig DeMarco Flowspace RangeMe #innovation #foodservice #cpg

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SKU's mentor community has deep experience building brands and disrupting categories, whether that be Matthew OHayer, who upended the egg industry with Vital Farms, or Jeff Richards, who launched Mooala, which has created new innovations within the plant-based milk segment. SKU Fall '24 mentor Jill Talcott  is a passionate food and beverage lover and creator with a vibrant entrepreneurial spirit. During her time as a leader in innovation, commercialization and development at Starbucks for over 16 years, working on CPG and food-service projects for the U.S. and International markets. She developed and launched coconut milk to over 15K stores, pioneered the development of alternative milks to replace traditional dairy bases and delivered a breakthrough beverage innovation through a new chocolate strategy. During her time as a leader in innovation and development at Starbucks, Jill is most proud of her work in taking the cold coffee experience to new levels through innovative thought leadership, passion, teamwork, and a devotion to finding solutions. She was the winner of Starbucks' “Trail Blazer” and “Courage” awards for Innovation (championing and driving big ideas to life). As a Food Tech Evangelist at Amazon, Jill developed and trained the team on the product development process and established trained panel to guide rapid product and packaging decision making .   In 2021 she started UpCup Creations, a beverage development consulting firm. She has helped small brands bring numerous products to market from coffee beverages to cocktails in can, and many things in between. Her specialties are beverage innovation, product development, including ingredient sourcing and Commercialization. If you would like to work with passionate founders and rocks stars like Jill, we have a small number of mentor spots left for talented CPG leaders. If you would like to learn more, fill out our Mentor Interest Form and we will schedule an interview. https://lnkd.in/grvpPD8e Michelle Breyer Buff Greebe Maddie S. Brooke Wilson #mentors #mentoring #mentorshipmatters #accelerator #cpgaccelerator #startups #cpgstartups #founders #cpgfounders #entrepreneurship #cpg #cpgs #consumerpackagedgoods #consumerproducts #foodandbeverage #innovation #commercialization #productcreation #productlaunch #coffee #coldbrew #coldcoffee #coffeeinnovation #productinnovation

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We all saw what happened when Wendy's announced the potential for a dynamic pricing model. People were not pleased. I'm not sure that will entirely kill the possibility of dynamic pricing eventually rolling out in the industry, but it did put the brakes on it for the short term. What about surveillance pricing? As this article from Reuters covers (https://lnkd.in/e_JdG5rB), there is the possibility that surveillance pricing will allow companies to charge individuals more based on past searches, purchases, and any other number of data points. Now, there's an economic basis for some of this. If demand increases at certain times or for certain products, prices can go up...welcome to supply and demand. We see this playing out all the time without all of the surveillance or high-tech traffic tracking. Dynamic pricing is, essentially, the high-tech and real time version of this principle, whether we really like it or not. Surveillance pricing, however, is something else entirely. But, is it surprising this is happening. In the industry, we're talking about the possibility of creating hyper-customized products based on a person's DNA or other bio-data. Wouldn't it also follow that pricing would become that individualized as well? But that makes more sense for products that are distinctly different rather than individualized prices for the same product. Either way, I think we can expect more of this type of activity as technology allows for this level of individual behavior surveillance and analysis. #innovation #trends2024 #pricingstrategy #foodservice #retail #cpg #foodandbeverageindustry #restaurants #technology #economy #menumattersllc

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📈 Kroger is navigating the evolving landscape of consumer spending with a cautious outlook, despite exceeding first-quarter expectations. Their commitment to delivering value remains steadfast as they reaffirm the full-year same-store sales and profit forecasts. In Q1, our identical sales, excluding fuel, grew 0.5%, surpassing estimates of 0.13%. They reported adjusted EPS of $1.43, exceeding expectations of $1.35 per share. Looking ahead, they anticipate similar earnings trends for the second quarter. Kroger is dedicated to meeting customer needs while adapting to market dynamics. #Retail #ConsumerTrends #innovation #venturecapital #hospitality #FinancialPerformance Branded Hospitality Ventures Rodney McMullen Jessica M Ziza Howard Popoola Jordan Poff Colleen Lindholz Yael Cosset Katy Greiner https://lnkd.in/gc9zsHdq

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This is an interesting case study by Thingtesting. They are by no means the only vehicle by which to drive unit sales velocity at retail but it drives to the heart of a critical axiom for CPG: 👉As hard as it may seem to get a product ONTO the shelves at a major retailer, it is much MORE difficult to get OFF of the shelves and into consumer’s hands. When I was in Purchasing at Whole Foods Market and CMO at Lucky’s Market, we always tried to underscore this point to every brand that we approved. There are over 20,000 SKUs competing for the consumer’s attention in most retailers, and 40% of purchases are still made impulsively at the POS. When your product makes it onto the planogram and APL, that is when the real work begins, and units/Sku/store/week rules the day. 👉Demo support, promotional activity, merchandising (and increasingly) tech-enabled solutions like this are going to make the difference between the product getting onto the shelf, and STAYING on the shelf. This is a marathon, not a sprint. 👉The brands who have the broadest base of true Omnichannel support, a diversity of DTC and retail placements with Early Adopters, and a comprehensive sales execution strategy will always rise to the top. Pod Foods Dirty Hands Flowspace #cpg #innovaiton #omnichannel

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When it comes to scaling food brands in retail, simplicity is key. Here are the top three fundamental factors for selling success: - Stay Persistent. - Use Data. - Build Trusting Relationships. Hire the best in the business and have a clear and consistent approach that incorporates all three elements. Without this focus, you may be missing the mark. For those starting new brands, or looking to sell a young brand. Ask yourself, will this brand/product be loved for years to come? #FoodIndustry #RetailSuccess #ScalingTips #OnceUponaFarm #grocery #cpg

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🌱🍗 Impossible Foods is finally available at Whole Foods. Impossible Foods partners with Whole Foods Market to launch its plant-based chicken products, marking a significant move in its retail strategy. CEO Peter McGuinness acknowledged the company's delayed entry into the retail sector but emphasized the importance of making its products more accessible and widely available. McGuinness highlighted Whole Foods' reputation as a discerning retailer, noting that the partnership reflects Impossible's commitment to earning its place in the market. The decision to launch chicken products first, before its burger and beef lines, was strategic, as chicken is currently the fastest-growing protein in the U.S. The retail deal with Whole Foods comes after Impossible's recent rebranding efforts, which included packaging changes and refined messaging. McGuinness expressed optimism about the company's future, citing the growing demand for plant-based proteins and the favorable market conditions for expanding distribution. More information in the full Food Dive article: https://lnkd.in/d_ETMEVr #ForwardFooding #altprotein #futurefood #innovation #plantbased #sustainability

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I think consumer feedback is often under used by emerging CPG brands… Coming from a Kraft Foods general management upbringing and then experiencing start-ups for many years, I’m often thinking about which “big company” practices could bring value to young emerging companies while not screwing up their great entrepreneurial culture and founder brilliance. The one area I continue to see a gap in is “entrepreneurial” consumer feedback/market research—the lack of fast/low cost consumer research options (or even confirmation research) discussed to prevent a low velocity SKU to get delisted, to maximize brand communication, and avoid wasted spend or lost opportunity on the back end. There are some great research companies out there, but their costs (while valid and worth it) are just not in the ballpark for what many founders want to spend for or go through the time on. Sometimes it’s a lot more natural for founders to go with their gut and not get bogged down by research. And I totally get this, and it does work in many instances.   I just wish there were more options out there to efficiently confirm purchase interest between two packages or between new innovation ideas to complement founder gut. In the end, it could save the emerging brand money…. Thought I’d reach out to the linkedin community, PLEASE not from research companies selling their research, but from founders/emerging brand marketers who have been through this dilemma and have found some consumer feedback very helpful and fitting for emerging brand bootstrap budget and speed (even if their own tools or alternative ways they’ve brought in consumers more)?  This sharing might help more companies maximize their moves in the future…so hope it helps… thanks! #ConsumerFeedback #jcbgrowth

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“I thought it was absolutely essential to carve out our hard discount in a separate division” Bank told investors Thursday (Feb. 22). “I want to really operate the hard discounters as hard discounters.” Assortment strategy is one of the most important topics for CPG brands. Aldi, carries about 1400 SKUs. No Frills carries many many many more. If you don't know A) What are the two SKUs you need No Frills to carry, B) How to optimize that assortment for efficiency in labour and shoppability, 2026 might be painful. It's a long way away. But not that far away. (I have no actual knowledge on timing - but guessing that a transformation in a multitude of categories to a much more ltd assortment will take time. Some categories will likely face the pain much earlier). I'm looking forward (?) to hearing if Loblaws shares more on Hard Discount strategy at the supplier summit next week.

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In the CPG industry it's not about how many doors/stores you get into it's about the quality of stores you get into. I look forward to building relationships with every retailer/buyer. Even though you may not be in a large bix box store at the moment focus on building relationships with independent retailers first then go from there. Building a personal brand helps out a lot in business. This is crucial to let buyers know about you and your products and why you started your business. #retail #growth #business #sales #mindset #businessgoals #businessrelationships #connection #integrity #cpg #startup

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Just in: The new Consumer Food Insights explores key attributes guiding consumers' grocery store choices. Food selection, fresh produce, and price top the list. https://lnkd.in/gnG2PB-2

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One thing people underestimate about the Food & Beverage industry is how consumer trends have a DIRECT impact on M&A trends. IFT First in Chicago is one of the most important food shows I have attended that brought some of these trends to the forefront, bringing together thousands of exhibitors to showcase the latest innovations, technologies, new products, and ingredients in the food and beverage industry. Here are some key trends from this year's event that will have a direct impact on the M&A market: Ultra-processed Foods: Confusion around minimally processed, processed, and ultra-processed foods persists. Companies like Chobani are working to educate consumers and reduce stigma, a crucial effort for market acceptance. As strategic buyers look to become more acquisitive, they add a diligence stream regarding how their potential target's products are processed and whether they can substantiate their marketing/packaging claims. Health Benefits: Products emphasizing higher protein, sugar reduction, and clean labels are in demand, reflecting consumer priorities for long-lasting health benefits. Companies that continue to play in the more indulgent sectors will need to focus on ingredient quality and transparency to sustain growth. Alternate Sweeteners: As consumers seek to reduce sugar without sacrificing taste, innovation in alternate sweeteners is vital. Companies that can provide great-tasting products with low-sugar alternatives that consumers can trust will be in demand in the future. At Greenwich Capital Group LLC, we closely monitor these trends and ensure our clients and potential clients understand how to position their company before a sale. Companies ignoring these shifts risk negative perceptions in M&A processes, potentially impacting their salability and value by not aligning with consumer preferences. #IFT2024 #FoodInnovation #IngredientTrends #HealthyEating #FoodTech #MandA https://lnkd.in/gzcfRxkF

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In light of Goldman Sachs Equity Research's recent analysis of NielsenIQ retail scanner data, some interesting insights about the non-alcoholic beverage industry emerge. Here are the key points to note: •   The industry's overall dollar sales grew by +3.5% in the two-week period, although these figures slowed down from +4.2% in the four-week period. •   Carbonated soft drink sales grew by +3% in the two-week period, with a slight drop in volume sales at -2.9% and a spike in average pricing by +6%. • Energy drinks faced declines, with dollar sales down by -1.1% while volume sales fell by -2.3%, and average pricing remained consistent at +1.2%. •   Bottled water saw noteworthy growth of +5.2% in the two-week period with fairly consistent volume sales at +6.1% and a decline in average pricing by -0.9%. •   Sports drinks emerged as a positive area with an increase of +9.1% and growth in volume sales by +6.3%. The average pricing also saw a significant rise of +2.6%. •   The coconut water category sustained robust growth, up +24.4% in the two-week period, supported by a rise in volume sales and a decrease in average pricing. A few brands that stood out: Vita Coco is leading the fast-growing coconut water category and grew +21.7%. Keep your eyes out for 100 Coconuts. They are making some impressive waves. Spindrift Beverage Co, Inc. was up +24.2% in sparkling water sales. Hydration-focused products are doing well as a category. Electrolit USA +35.9% and PRIME -29.7% Energy Drink leaders Red Bull and Monster Energy were down, while many others are still experiencing nice growth. CELSIUS Holdings, Inc. I +15.9%, Nutrabolt +21.1%, Alani Nutrition +57.1%. poppi is not slowing down at all +154.5% and Zevia also grew their sales by +8.2% The non-alcoholic beverage sector reflects fascinating patterns in sales and pricing across different beverage categories and subcategories. These trends pose potential implications for competitive strategies, branding, and product offerings within the industry. I look forward to your valuable input as we collaborate to comprehend the evolving dynamics of the non-alcoholic beverage sector. What stands out to you? #BeverageIndustry #NonAlcoholicBeverage #IndustryTrends #Insights #InnovationInBeverages #MarketTrends

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Is plant-based just a fad? The nation's largest food retailer doesn't think so... Yesterday Walmart launched 'bettergoods,' their largest private label brand in 20 years ("a new elevated experience that delivers quality, unique, chef-inspired food at an incredible value"). The entire portfolio of 300 new items fall into three distinct category pillars: 1) "Culinary experiences" that spotlight innovative recipes and elevated ingredients. 2) "Plant-based" products with distinct green branding and big flavors made to be devoured. 3) "Made without" offers a variety of options that cater to different dietary lifestyles (e.g. gluten-free). A big day for the plant-based industry! https://lnkd.in/g4CF--uE

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Is your F&B company battening down the innovation hatches, or facing today's market conditions head on? 🌪️🏃‍♂️ IFT assembled a panel of experts, one of which was JPG's founder Jeff Grogg, to discuss the need for innovation amidst inflation pressures during their annual IFT FIRST conference. Check out the recap article 🔗 https://hubs.li/Q02K5vXP0 as they cover the economic and private label pressures companies are facing, along with the panel's market predictions surrounding high-impact development, divestitures and acquisitions. #FoodandBeverage #CPGIndustry #Inflation #Innovation #MarketPredictions Institute of Food Technologists (IFT)

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CPG Friends, I have discovered a platform that is on a mission to offer a more fair distribution method to help build your brand while also having merchandising and re-order built in and handled by their team. They are focusing as of now on convenience stores, liquor stores, gas stations, and other independents. And so far from my vetting process and speaking for hours with the CEO, they are the real deal and offer really great solutions for small, emerging brands and even large brands that are doing massive sales. We’ve all heard the pain points on here from countless brands when dealing with distribution in general in this business from chargebacks, freight billbacks(sometimes putting brands out of business) If I could help link your brand with a better solution to grow your company and retain all the sales dollars in your pocket, this could be potentially groundbreaking and flip the traditional model as we know it ON ITS HEAD. Please DM me and happy to share more information about it.

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Coke vs. Pepsi? Not so fast.   For the first time, Keurig Dr Pepper Inc. has now claimed the #2 soda spot in America, surpassing PepsiCo, who had held the position for over two decades. Their innovative marketing initiatives and unique blend of flavors have truly set them apart from the competition. I had the chance to discuss Dr. Pepper's remarkable rise with The Food Institute, emphasizing their strategy and how they have particularly resonated with the younger demographic, who crave diverse flavors beyond traditional cola.   In the article, I mentioned: "Dr. Pepper has distinguished itself through effective marketing campaigns that emphasize its unique flavor and individuality. This strategy resonates particularly well with younger demographics seeking alternatives to traditional cola drinks."   With Dr. Pepper's leap to the #2 position, do you think they have a shot at dethroning The Coca-Cola Company from the #1 spot? In which other categories do you think a shift like this is possible? Read the full article here: https://lnkd.in/g572y5jv   #MarketingStrategy #BeverageIndustry #Innovation #DrPepper

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Last week I had the opportunity to engage with an industry partner in a meaningful way about the state of the food industry. That conversation lead to a follow up, and upon further reflection of that, I send a version of this email to them outlining my perspective. As a former policy wonk and retail buyer, I'd like to think that I see the various ways in which the system is struggling, and how it's currently serving almost no one. I would love your thoughts on the following and your ideas for how to fix it if you can get through this post! 😅 +++ It is my belief that the food industry is in the midst of a significant shift that will reconfigure the way that business is currently done and ultimately how people get their groceries. The current model is predicated on the easy money that was available to strategic buyers in the early 2010s - 2021. During that period, money was cheap for these large corporations to finance deals, and they bought companies for up to 10x revenue. Investors saw those returns and flocked to CPG, flooding the industry with cash. At the same time, grocery margins, which have always been slim, started to tighten even more. So with suppliers flush with investment dollars, retailers implemented more fees for suppliers get on shelf. Supplier fees now account for up to 70% of grocery store profits. Distributors also cut deals with desired retailers, which don’t actually cover costs. That margin has to come from somewhere, so it’s come primarily from suppliers in the form of billbacks, fees, and promo periods. This delicate balance has worked for the last ten years due to the reatively easy capital available to smaller brands, and because of the strength of the US economy, which allowed more consumers to purchase more high-priced products. That ecosystem has now changed. With the spike in interest rates in 2022, both the actual number of M&A events, and the value of those events dropped drastically. Inflation has also caused consumers of all economic statuses to watch grocery purchasing more closely, and as a result, capital investments have virtually dried up. Loans are also much harder to get and the rates are 15- 18% APR. However, suppliers are still being required to pay the retail and distributor fees and unless their margins are enormous and/or they have loads of working capital to carry them through the ultra long cash cycle, the math doesn’t line up. That’s the position that so many smaller companies find themselves in - the retailer/distributor marketplace is getting squeezed and needs to find a way to grow margin, but small suppliers can no longer afford to pick up that tab. And with inflation, customers can’t absorb more of that cost. The result is that small suppliers are going out of business or fire-selling. And with no end in sight for the high interest rates we’re seeing now, I fear that there will be a mass exodus of people who aren’t independently wealthy enough to foot the bill. Thoughts?

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