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Hi and welcome to the CPFR 2.0 newsletter, delivering news & insights to your inbox at the intersection of CPG, supply chain and technology.

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From Niche to Nationwide

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The consumer packaged goods (CPG) industry has experienced a series of peaks and valleys in its growth cycles over the past two decades or so.

In recent years, the growth of small CPGs ($100M - $1B in annual sales) has been remarkable, often outpacing their larger, enterprise-level counterparts.

This trend has been driven by various factors, including changes in consumer behavior, economic pressures, and strategic shifts within the industry.

For instance, Prime Hydration, a newly launched brand in late 2021, led small CPGs by taking approximately 1% share within the sports drink category, passing $1B in sales in 2023.

Traditionally, the strategy to market and grow this sports drink among a key demographic (teens and college kids) would be to partner with some of the era’s big names in popular culture, such as Michael Jordan in the 90s.

Today, Prime Hydration, and many other "small" CPG brands are building their following with nothing more than savvy social media marketing, and a deep understanding of their audience. In fact, the founders of Prime Hydration, KSI and Logan Paul, are brands themselves, with 30M combined followers on TikTok alone.

In addition, Olipop, a soda that strikes a delicate balance between healthy and crave-able, saw a 8300% increase in search growth 2017-2022, coinciding with a rise in consumer's preference for snacks and drinks that include functional ingredients and promote an overall healthier lifestyle.

Within the first six months of 2023, Olipop hit $100 million in gross revenue, and is set to reach $200 million in sales this year, a 100% increase from 2022.

And CPG giants are taking notice. Household CPGs we are accustomed to seeing on the store shelf are deciding it’s easier to let these innovative brands hit a point of critical mass and then acquire them.

Case in point is Mondelez's acquisition of Clif Bar, and P&G's purchase of Mielle Organics, among many others.

It's no question retail shelves have always been and continue to be competitive.

How can small CPG brands continue to outpace their larger competitors and win in the years ahead?

Source for chart: IRI and BCG.

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CPFR 2.0: Behind the Scenes with a VP of Supply Chain

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On this upcoming episode of CPFR 2.0, Jorge is joined by Elsy Ocejo, the first VP of Supply Chain at Illes Foods, a 100-year-old, family-owned and run, food manufacturing company.

In the midst of evolving consumer trends and hightened expectations, Supply Chain teams are grappling with a multitude of questions.

Where should we focus our efforts?

How can we successfully integrate technology to bring us closer to consumers?

How can we work together with suppliers, and customers, to build a collaborative value-chain?

As a VP of Supply Chain, all of these questions have raced through Elsy's mind lately.

And we're glad she's joining us for a conversation on CPFR 2.0.

Join us on Tuesday, November 21st, at 2 PM EST.

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Save your seat here.

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Thank you, and have an amazing rest of your day!

Till next time,

bops team