Pilgrim’s Pride to pay $100M in largest protein antitrust settlement


Pilgrim’s Pride will pay $100 million to settle a lawsuit alleging it conspired to underpay agriculture workers. It represents the largest settlement amount in the history of the protein industry, according to a court document filed last week with the U.S. District Court for the Eastern District of Oklahoma.

The poultry processor, a subsidiary of JBS, was accused by a group of farm worker plaintiffs of an “overarching conspiracy to suppress compensation paid to broiler farmers nationwide,” in collaboration with rival companies, according to the settlement.

The company did not acknowledge any wrongdoing.

“Growers were deprived of vigorous competition for their Broiler-Grow Out Services, causing the pay of all Growers for each pound of Broiler chicken produced to be artificially suppressed,” the court said in the settlement.

In the document, the court acknowledged the settlement agreement came after more than seven years of “hard-fought litigation,” which included over 1.7 million court documents being reviewed.

Several other chicken companies previously reached settlements in the same case: Tyson Foods, for $21 million; Sanderson Farms, for $17.75 million; Koch Foods, for $15.5 million; and Perdue Farms, for $14.75 million. The settlement amount from all of the alleged companies totaled $169 million.

Pilgrim’s Pride did not respond to a request for comment at press time.

Price-fixing and related antitrust cases have roiled the meat industry in recent years, leading to expensive payouts from the largest producers. In April 2023, Pilgrim’s Pride and rival Perdue, among other companies, paid $35 million to settle a class action lawsuit alleging a price-fixing conspiracy in Washington state.

But producers have prevailed in some instances. Last fall, an Illinois jury ruled that Sanderson Farms did not participate in an industry-wide scheme to inflate chicken prices.



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Unilever spices up Hellmann’s with flavored mayo


While classic mayonnaise has been a dependable addition to sandwiches and potato salad for decades, consumer goods giant Unilever is spicing up the venerable condiment to boost sales and increase its popularity with younger shoppers.

Unilever’s Hellmann’s brand is prioritizing the introduction of flavored mayonnaise to attract millennial and Gen Z consumers — demographics that use less of the condiment but are more attracted to new and novel varieties. It also brings more versatility to Hellmann’s by giving shoppers additional choices when making food at home, increasing the likelihood that they add it to meals and preparations they previously would not have.

The flavored mayonnaise market is estimated at $210 million, according to Circana data provided by Unilever.

“The launch of our flavored mayonnaise portfolio … has certainly enabled us to increase the relevancy of our brand, particularly among younger cohorts and consumers,” Chris Symmes, Unilever’s head of marketing, dressings and condiments in North America, said in an interview. Without it, it “could have been a lost opportunity to be in more people’s households with products that are relevant to them.”

Flavored mayonnaise has seen “significant growth” at Unilever, with sales “almost doubling” in 2023, according to Symmes. They have proven to be a boon for classic Hellmann’s Real, too, with up to 70% of buyers who purchase a flavored mayonnaise also grabbing a jar of the original. 

Chris Symmes, Unilever’s head of marketing, dressings and condiments in North America

Permission granted by Unilever

 

Hellmann’s traces its roots back to 1905 when German immigrant Richard Hellmann opened a deli in New York City and began using his wife’s mayonnaise recipe in salads. The mayonnaise became so popular that Hellmann began selling it.

Today, the brand posts more than $2 billion (2 billion euros) in annual sales globally. It’s especially popular in the U.S, with Hellmann’s found in about half of all households.

Hellmann’s debuted its first two flavored mayonnaise offerings about a decade ago in the UK. But for several years, those were the only ones on the market. 

The brand launched its first flavored item in the U.S. in 2022 with Spicy as part of an accelerated rollout around the world. It now sells 20 flavor varieties globally. In the U.S. alone, Hellmann’s has five flavored mayonnaise options: Chipotle; Spicy; Chili Lime made with Tajin; Italian Herb and Garlic; and Garlic Aioli.

Unilever is constantly mulling over data and visiting trade shows, including Fancy Food last June, to identify trends that could be candidates for flavored mayonnaise, Symmes noted. Chipotle, for example, was picked because it was trending among millennials. Unilever decided to promote its Spicy mayonnaise by pairing it with the chicken sandwich, a food that also was popular among this demographic.  

Symmes said the pace of new launches “will likely slow down” as Hellmann’s takes time to “support, nurture and build up” the flavored mayonnaise products already in the market.

Despite the recent success of the flavored mayonnaise, he said it’s unlikely to overtake the original Real which commands the lion’s share of the brand’s sales.

”There’s definitely room to grow flavored mayo within the Hellmann’s franchise for years to come,” Symmes said. “But it is unlikely that it will be the same size as our [Hellmann’s] Real with regard to our total portfolio just given how massive and well-established our Real business is.”



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AB InBev to shutter Anheuser-Busch distribution facility


Dive Brief:

  • Alcohol giant AB InBev’s Anheuser-Busch plans to close a distribution facility in Medford, Massachusetts, according to a Worker Adjustment and Retraining Notification (WARN) notice filed last week. The decision will lead to the loss of 193 jobs.
  • The Bud Light brewer’s plant closure will take place during the first two weeks of November. The change is permanent and its operations will be moved to wholesaler Quality Beverage in the same region, the company said in a statement to Food Dive.
  • The company saw beer volumes decline 1.3% in its most recent quarter, according its earnings report earlier this month.

Dive Insight:

The largest companies in the beer category are making strategic moves to cut costs amid soft consumer demand.

Simon Wuestenberg, the U.S. chief sales officer at AB InBev, said in a statement the company’s decision to shutter the facility comes after assessing its “operational footprint to ensure our entire system is set-up for long term success.” He said shifting operations to another distributor will help it continue to drive growth.

The move follows after a period of declining beer sales since early 2023, spurred in part by the highly publicized boycott of Bud Light. Last year, it laid off less than 2% of its corporate workforce and the company ceded market share in traditional beer to rivals like Molson Coors and Constellation Brands.

Despite the headwinds, CEO Michael Doukeris expressed optimism to investors about the long-term prospects for the industry on AB InBev’s most recent earnings call.

“We see some good premiumization in the industry. We see beer in terms of dollars consistently growing. And now in the last quarters, we see beer gaining share of value,” Doukeris said. “And we see that when you combine with the RTDs, there is a very good momentum there for the brewers in terms of capturing volume and dollars in the industry.”

AB InBev has also made strategic decisions to invest in growth outside its staple beer brands. Last year, the company spent $13 million on projects at its Cartersville Brewery in the Atlanta area, which produces its Kona Big Wave craft beer alongside hard seltzer and canned cocktail brands. It also announced a $22.5 million investment in August 2023 on upgrades to a Houston brewery.

Throughout the food and beverage industry, companies are choosing to reconfigure their production strategy as they deal with a tenuous economy amid years of ongoing inflation. In the last month, cereal giant WK Kellogg Co and beverage behemoth Keurig Dr Pepper both announced the closures of production facilities, each impacting hundreds of jobs.



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E-commerce Photography that Converts – Foodbevy


When it comes to e-commerce, every photo on your product page matters. A great image does more than just show a product; it conveys quality, sparks desire, and builds trust. Each photo should align with a specific reason why a customer would want to buy it.

I’m Carrington, an ecommerce product photographer specializing in creating imagery that increases sales and helps brands find their “ooo” factor. Let’s break down how to turn website viewers into buyers.

Designing Photos That Sell

Align with Customer’s Reason to Buy

Understanding what motivates your customers is crucial for creating effective product images. Are they looking for taste, health benefits, convenience, or a mix of these? Tailor your photos to highlight these motivations.

For example, if you’re selling an energy bar, show off the natural ingredients, texture, and health benefits like high protein or fiber. Addressing these reasons directly makes the purchase decision easier.

Some common motivations behind purchasing new products is that the product solves a problem in the customers life and can improve their quality of life. Often this can be a result of innovation, desire, or social status.

You can use imagery to inspire your customer to live a life with your product and benefit from it at the same time.

Highlighting Unique Selling Points

Your product’s unique selling points (USPs) make it stand out. These should be front and center in your photos and on your packaging. If your product is gluten-free or packed with antioxidants, make sure this is clear. For instance, a close-up shot of an energy bar’s ingredients or a cross-section can effectively showcase these features. Highlighting what makes your product unique gives buyers a clear reason to choose it.

Highlighting the unique selling points of your product is all about education. How do you educate your customer in your imagery so they can learn faster, stay inspired, and be driven to buy without getting stuck in the cart.

Trust and Transparency: Boost Conversion Rates – Reduce Return Rates

High-quality images foster trust and transparency, which are crucial for online shoppers who cannot physically touch or see the product before purchasing. Clear, detailed photos help set accurate expectations and reduce uncertainty.

This transparency can also lead to lower return rates, as customers are less likely to feel misled by the product’s appearance.

For example, showing the actual energy bar next to the packaging can give customers a better idea of what to expect and what is inside the packaging. By presenting your products honestly and attractively, you build a trustworthy brand image that encourages repeat purchases.

By ensuring each photo is purposeful and aligned with the reasons to buy, you can significantly boost your conversion rates. In the following sections, we’ll explore the technical and creative aspects of photo composition, product photography, and lifestyle photography, each contributing to a compelling visual strategy.

Product Photography

Showcasing Packaging

The packaging of your food or beverage product is the first thing customers see, and it plays a significant role in their purchasing decision.

Ensure your images clearly display the packaging from multiple angles. Highlight the brand name, logo, and any unique features or designs that set your product apart.

If your packaging includes important information like nutritional facts or ingredients, consider including close-up shots of these details to help build trust and transparency.

Highlighting the Actual Product

Customers want to see what they’re buying, so it’s essential to include photos of the actual food or beverage outside of its packaging.

This can involve pouring a drink into a glass or arranging food items on a plate. These images should make the product look as appetizing as possible, focusing on textures, colors, and presentation. Use good lighting to highlight the freshness and quality of your product.

Pack-Size and Quantity Per Order

Clear communication about the quantity and pack size is crucial. Include images that show the product in its various available pack sizes.

For example, if you’re selling a six-pack of beverages, show the six-pack as well as individual bottles. This helps customers understand exactly what they are getting and can reduce the likelihood of returns due to misunderstandings about product size.

The more you can educate your customer through imagery – the less they have to read & research and the visual holds a longer time in the customers memory. So when the product is received, they visually already know what to expect.

Flavor Differences

If your product comes in multiple flavors, ensure each flavor is represented with its own set of images.

Highlight the differences in packaging and, if possible, show the actual product for each flavor.

For example, if you sell flavored sparkling water, show each flavor with distinct packaging and a glass of the beverage to highlight color differences.

This not only helps customers make informed choices but also encourages them to try multiple flavors.

Editing and Retouching

Post-processing your product photos is important for achieving a polished and professional look. Use photo editing software to adjust brightness, contrast, and color balance.

Ensure that the product’s colors are represented accurately to avoid misleading customers.

Retouching can also help remove any minor imperfections in the photo, but be careful not to alter the product’s appearance in a way that could mislead customers.

Lifestyle Photography

Contextual Usage

Showcasing your food or beverage product in real world situations is a powerful way to help customers visualize using the product.

For example, photograph a breakfast cereal being poured into a bowl on a beautifully set breakfast table, or a bottle of wine being enjoyed at a cozy dinner party.

These images help customers imagine themselves enjoying the product, making it more relatable and desirable. Use props that complement the product and create a cohesive scene without overwhelming the main focus.

Emotional Appeal

Lifestyle photography is all about evoking emotions and telling a story. Capture moments that resonate with your target audience’s aspirations and lifestyles.

For instance, show a family enjoying a picnic with your beverage, or friends gathering around a table filled with your food products. The goal is to evoke positive feelings that encourage customers to buy.

Complementary Products

Including complementary products in your lifestyle shots can inspire cross-selling and provide a fuller picture of how your product can be used.

For example, if you’re selling pasta sauce, show it being used in a delicious pasta dish alongside fresh ingredients like tomatoes and basil. This not only enhances the appeal of the main product but also suggests other products that customers might purchase to complete the experience.

Seasonal and Thematic Shots

Seasonal and thematic photography can make your product more relevant and boost sales during specific times of the year. Capture images that align with holidays, seasons, or events.

For example, show your beverage product at a summer barbecue or your baked goods at a festive holiday gathering. These themed images can be used in marketing campaigns to attract customers looking for products that fit their seasonal needs.

Natural and Relatable Settings

While it’s important to create visually appealing images, they should also feel natural and relatable. Overly staged photos can sometimes appear artificial and disconnect with the customer. Aim for authenticity by choosing real-life settings and scenarios. This approach helps in building trust and makes your product seem more accessible and appealing.

Wrap Up

Choosing your e-commerce photography should obviously showcase your great product, but do so in a way that explains what the product is, how to use it, and why someone should buy. Each photo should compliment any text that goes along with it.

Need help improving your e-commerce photography?

Carrington with Prospect Street Studio knows how to take product photography that encourages customers to take action and buy. She has flexible options designed to work with emerging brands. Request an introduction today for your next photoshoot and save with an exclusive Foodbevy Discount.

Not sure if you’re ready or what your next step is? Book a free image strategy session with Carrington to learn how you can use photography as a sales tool.



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Losing 10,000 Cans In A Production Run with Sarilla


Starting a beverage company comes with its unique set of challenges. Imagine the excitement of doing a manufacturing run, just to have 10,000 cans come out defective. This was the reality for Sara Delaney, founder of Sarilla. Her journey, however, is a powerful story of resilience, dedication, and mission-driven entrepreneurship that offers valuable lessons for emerging CPG founders.

What is Sarilla?

Sarilla is a brand of sparkling teas crafted from organic, fair-trade teas sourced from Rwanda and South Africa. These refreshing beverages, like the popular Hoppy Hibiscus, aim to offer healthier options with clean ingredients and no preservatives. The brand is committed to promoting social inclusivity and supports the Pink Boots Society, which aids women and non-binary individuals in the brewing industry.

Production Challenges

In late 2020, Sara made the move to switch to printed cans from sleeves, aiming for more eco-friendly packaging and a premium look. However, delays and a significant production error led to 10,000 cans with peeling labels. Sara had secured a new contract with a digital printing company and a co-packer. After delays pushed the production from December to late February, she was finally able to run the new cans. Unfortunately, all 10,000 cans emerged from the tunnel pasteurizer with labels peeling off.

The co-packer blamed the can company, claiming they weren’t approved for their facility, while the can company cited improper handling by the co-packer. This left Sara in a frustrating situation with no clear party taking responsibility.

Navigating the Crisis:

Sara’s immediate steps to resolve the issue were crucial. She:

1. Identified the Problem: Sara quickly recognized the extent of the defect and sought to understand the root cause by communicating with both the co-packer and the can company.

2. Sought Expert Advice: She reached out to Russ Taylor from Secure CPG, who helped her understand the insurance implications and steps to mitigate such risks in the future.

3. Engaged the Community: Sara shared her experience on LinkedIn, receiving support and suggestions from the community, which led to new partnerships.

4. Found New Partners: She secured a new co-packer, ensuring they had the proper approvals and quality control measures in place.

5. Ensured Proper Coverage: With Russ’s guidance, Sara updated her insurance policy to cover all operational risks, including third-party facilities, ensuring future incidents would be covered.

The Role of Proper Insurance

For emerging CPG founders, having robust insurance coverage is essential. It protects against various risks, such as production errors or shipping issues. Brands should work with an CPG specific insurance agent like SecureCPG to customize policies that fit their specific needs, safeguarding their investments and ensuring they can weather unexpected challenges. Proper insurance can prevent significant financial losses and business interruptions.

Here are specific insurance policies and coverage recommended for CPG brands:

1. Product Liability Insurance: Covers any damages or injuries caused by your product.

2. General Liability Insurance: Protects against claims of bodily injury, property damage, and personal injury.

3. Property Insurance: Covers your property and inventory at various locations, including third-party facilities.

4. Business Interruption Insurance: Compensates for lost income if your business operations are disrupted.

5. Cargo Insurance: Protects your products during transit.

6. Errors and Omissions Insurance: Covers legal costs related to professional mistakes or negligence.

Renewed Determination

Despite the setback, Sara’s resilience and the support from her community helped her navigate the crisis. She established new partnerships and continued her mission to promote healthier beverages and support tea farmers. Sarilla’s ongoing success highlights the importance of perseverance and adaptability. The new production runs have been successful, and Sarilla continues to expand its offerings.

Sara Delaney’s journey with Sarilla is a powerful example of resilience in the beverage industry. Her story underscores the importance of perseverance, community support, and learning from challenges. For emerging CPG founders, Sara’s experience offers valuable insights into navigating setbacks and building a sustainable, mission-driven brand.

SPONSOR: I wrote this in partnership with SecureCPG a modern insurance agency that works with emerging brands to get the best coverage at the most affordable price. They work with founders on general liability, workers comp, product recall, cyber liability, and more.



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How to Transition Between EDI Providers


I hear from many brands who get started with one EDI provider, only to realize it’s not the best fit. Transitioning between EDI providers can be a bit complicated as there are so many moving parts. That said, it can be done with careful planning. Here are some key steps to guide you through this transition:

1. Assess Your Current EDI Needs

Before making a move, evaluate your current EDI requirements. Understand the specific needs of your retail partners and ensure that the new provider can meet these requirements. This includes compatibility with your current systems and the ability to handle your transaction volume.

Clearly know WHY you are transitioning and get buy in from your team, so everyone is clear. Things to consider are:

  • Ease of Use
  • Customer Service
  • Ease of setup for new vendors
  • Modern User Interface
  • Integrations
  • Cost

2. Select the Right EDI Provider

Choosing the right EDI provider comes down to which provider aligns with your reasons for switching. Look for a provider who is familiar with the requirements of your retail partners, supports all relevant fulfillment models, and can integrate seamlessly with your Warehouse Management System (WMS). Ensure they offer automatic connectivity to your key systems such as e-commerce platforms, order management tools, and accounting systems.

3. Plan the Transition Process

Develop a comprehensive transition plan that outlines each step of the process. This should include timelines, resource allocation, and potential risks.

  • Start planning 3-6 months before you make the transition.
  • Time the transition to align with your existing contract ending so you can get out of it.
  • Communicate the transition with your retail partner and ask if they have any specific tips for the transition.
  • Plan the transition during your least busy season if possible.

4. Train Your Team

Ensure that your team is adequately trained on the new EDI system. This includes understanding how to use the new interface, manage transactions, and troubleshoot common issues. Create a standard operating procedure document for the new platform.

5. Monitor and Optimize

After transitioning to the new EDI provider, continuously monitor the system’s performance. Gather feedback from your team and retail partners, and work with your provider to optimize the setup. This will help you ensure that the new system is meeting your needs effectively and efficiently.

Transitioning between EDI providers is a significant step, but with careful planning and execution, it can lead to improved efficiency and better business outcomes. For more detailed guidance and support, consider reaching out to experts or exploring resources from companies like Crstl, which specialize in modern, no-code EDI solutions (Crstl – No-code EDI for modern brands).



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This Week in CPG 07/15/24


🛒 Retail Rollouts

🧀 Every Body Eat Expands Distribution

Every Body Eat, founded by Trish Thomas and Nichole Wilson, expands its popular Cheese-less™ Thins to all 25 Dierbergs Markets locations in Missouri and Illinois. This exciting partnership helps Every Body Eat® expand its mission to deliver inclusive and eat-them-by-the-handful delicious snacks to snack-lovers everywhere. Founded in 2020, Every Body Eat® quickly emerged as a revolutionary in the clean snack industry, demanding that snacks free from the top 14 food allergens and corn can also be mind-blowingly delicious.

🍫 SkinnyDipped Launches New Product Nationwide

SkinnyDipped, co-founded by Breezy Griffith, now offers its better-for-you dark chocolate peanut butter cups at Whole Foods stores nationwide. SkinnyDipped Dark Chocolate Peanut Butter Cups are delightfully better for you as they are made with real peanut butter, ethically sourced cocoa, and no artificial colors, flavors, or preservatives. Filled to the brim and coated in a dark chocolate shell, they’re also non-GMO, naturally low in sugar, and free of any artificial sweeteners. Fans can check out the Whole Foods website to see where they can purchase SkinnyDipped nearest to them.

🍛 Masala Mama Launches at Sprouts

Masala Mama, founded by Nidhi Jalan, launches a line of ready-to-eat legumes at Sprouts nationwide, featuring playful takes on classic flavors with SKUs like Ooh La La Lentils and Cha Cha Chickpeas. Masala Mama, a New York-based food company known for its Easy Cooking Sauces that marry clean and healthy ingredients with Indian-inspired flavors, has introduced an innovative line of protein-rich ready-to-eat legumes. This expansion showcases Masala Mama’s commitment to providing flavorful, fresh, and convenient options for consumers seeking nutritious and quick meals.

🍜 Omsom Secures Permanent Spot

Omsom, founded by Vanessa and Kim Pham, secures a permanent spot in Sprouts Farmers Market nationwide with their Saucy Noodles after a successful 90-day trial run. Last winter, Omsom entered the Sprouts Foragers Program, where new brands can earn a permanent spot on their shelves depending on their performance during a 90-day trial run. Omsom’s Saucy Noodles, known for their bold and authentic flavors, passed the test, and now you can find all four of their Saucy Noodles at Sprouts stores nationwide.

🤝 Brand Partnerships

🥛 Willa’s Oat Milk Special Feature

Willa’s Oat Milk, co-founded by Christina Dorr Drake, celebrates its hometown support and announces its launch at Target, with a special feature on Twin Cities Live. Christina Dorr Drake expressed her gratitude for the love from the Twin Cities (Minneapolis/St. Paul), and appreciated the shout-outs to beloved local independent grocers. This new partnership with Target marks a significant milestone for Willa’s Oat Milk as they continue to expand their reach and bring their clean, delicious oat milk to more consumers.

🍫 Elavi announced a partnership with Partake Foods

Michelle Razavi, Co-Founder of Elavi, announced a partnership with Partake Foods to create a gluten-free, dairy-free, soy-free Summer S’mores Kit featuring allergen-friendly graham crackers and Elavi’s chocolate fudge and marshmallow cashew butter, thanks to the support of Partake founder Denise Woodard.

Reflecting on her childhood love for s’mores, Michelle Razavi shared how reconnecting with her inner child inspired this collaboration with Partake Foods. As someone who now faces dietary restrictions, Michelle emphasized the importance of creating a treat that is both nostalgic and healthy. The Summer S’mores Kit pairs Partake Foods’ allergen-friendly graham crackers with Elavi’s innovative chocolate fudge and marshmallow cashew butter. The partnership, supported by Denise Woodard of Partake Foods, aims to offer a delicious and inclusive treat for those with dietary restrictions. The kits are available exclusively online, inviting everyone to enjoy a taste of summer nostalgia without compromising their health.

💸 Acquisitions and Investments

🥤 Eight emerging businesses Selected for Accelerator Program

Eight emerging businesses, including JAS, JaziLupini, Mayawell, Nemi, PAKTLI, Pricklee, TOAST-IT, and ¡Ya Oaxaca!, were selected as finalists to participate in the second year of PepsiCo’s Greenhouse Accelerator Program: Juntos Crecemos Edition, a five-month mentoring initiative designed to accelerate the growth of consumer packaged goods and beverage brands, said founder Daniel Grubbs.

At the launch event at the Frito-Lay headquarters in Plano, Texas, these eight finalists began their journey with PepsiCo’s Greenhouse Accelerator Program: Juntos Crecemos Edition. This program is designed to support the growth of consumer packaged food and beverage brands that are inspired by Hispanic flavors and culture. Over the next five months, these businesses will receive mentorship and resources from experts in research and development, supply chain, and design. Each finalist will receive $20,000 to develop innovative business solutions, with one winning an additional $100,000 at the program’s conclusion. The initiative, led by Daniel Grubbs, emphasizes PepsiCo’s commitment to fostering innovation and supporting local communities.

🎉 News to Celebrate

🎂 Happy Moose Juice Celebrates Milestone

Happy Moose Juice, founded by Ryan Armistead, celebrates its 11th birthday, reflecting on its growth from a small pop-up to a nationwide brand. Thinking back on how far they’ve come, from making tiny batches of fresh juice in Ryan’s Presidio home kitchen to selling locally from a pop-up shop in San Francisco’s Mission neighborhood, Happy Moose Juice has now grown into a brand with many strategic partners, selling to amazing retailers and people across the country. Ryan expresses his heartfelt thanks to everyone who has been a part of Happy Moose Juice’s journey and looks forward to many more years of success.

The post This Week in CPG 07/15/24 appeared first on Foodbevy.



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How To Get Grocery Buyers to Say Yes


Grocery buyers are notoriously hard to get a hold of, and once you do, even hard to get them to say yes. I’ve chased down buyers for YEARS before getting a meeting. So how do you get more buyers to say yes? Understanding buyer psychology is crucial for any founder aiming to secure shelf space in grocery stores. Buyers are not only seeking innovative products but also products that can drive revenue and or profitability for their category. 

Respect is key in these interactions. At store level, grocery managers juggle a myriad of tasks daily, from handling customers and staff to managing shipments. Calling and pitching your brand in the middle of their busy day or when they are expecting an order might not always be well-received, so be open to finding a better time if they ask. Remember to speak to them as people. It can be nerve-wracking to pitch your product, and the default can often be a super-professional or robotic demeanor. However, buyers appreciate being spoken to as individuals.  Be professional, have a sense of humor, listen, and engage.

At the corporate level, consider the buyer’s role, demands, the account itself and its unique priorities first. Buyers aim to maximize revenue, secure brands committed to marketing programs, align their mission with CPG products, and balance the products they select with those they don’t. Understanding these factors can shift your perception of a delayed response from a rejection to a “not right now” to a guidance for you to rethink your pitch to address a different factor.

What CPG Buyers are Looking For

Buyers’ priorities vary by retailer and category, but generally, they look for the products with demonstrated sales velocity, quality and uniqueness of the product, market demand and trends, competitive pricing and margins, consistency and reliability of supply, and a strong brand story that aligns with their values. However, many CPG founders make several mistakes when pitching to buyers.

One common mistake is giving up too quickly. Buyers are busy, and if your emails or calls go unanswered, it’s crucial to keep reaching out respectfully. Persistence shows commitment. Another mistake is handling a “no” poorly. If a buyer says “no” but is polite and friendly about it, feel free to lightly probe to understand if it’s a timing or pricing issue, then revisit in the future. It’s crucial to be humble, polite, and confident without showing entitlement. Buyers see hundreds of brands; a friendly demeanor can set you apart. Additionally, avoid using auto-email technology or following up too frequently. Personalize your outreach to build a genuine relationship.

The Role of Category Reviews

Category reviews are periods when buyers assess various items for a specific set. These reviews can be highly formalized or more casual, depending on the retailer. Reviews are typically tied to reset dates when sections of the store are reorganized. In larger accounts with tens or hundreds of stores, this is a massive undertaking involving many companies, distributors, brands, and merchandising teams, necessitating advance planning.

Buyers use category reviews to coordinate their review of multiple similar products for performance and market fit. They consider criteria such as pricing, innovation, local appeal, and promotional activities. Some buyers may use reviews to defer brands they aren’t ready to commit to, but then it’s even more important to present your brand well during that cycle! To prepare for category reviews, follow the retailer’s directions and customize your presentation to their requirements. Different retailers look for different margins and promotional support. Submit your application in the required format but also reach out personally to the buyer. Include aggressive promotional plans to drive consumer trials and conduct demos to boost sales. Your awareness of and participation in store events and promotions enhances retailer satisfaction.

Promotions are essential. Consumers try products when they are on sale—even a small discount can significantly impact sales velocity. Consider an aggressive promotional plan for your first key retailers to build a story of success that you can present to other retailers for expansion. Presenting these plans during the category review process shows the retailer that you know them, understand what they are looking for, and are prepared to be successful on their shelves.

Get access to hundreds of buyer contacts and retailer category review schedules through Harvest Hub. Pricing is super affordable and you can even get free access by contributing data.

Why Buyers Give Meetings

Buyers agree to meetings for several reasons. They may have seen your product at a model retailer, noticed it at a trade show, had a sales partner recommend it, or found your product specs and pricing compelling. Often, it’s a combination of these factors that inspires a buyer to meet with you. It’s essential to demonstrate potential value to the buyer.

When requesting a meeting via email, keep it concise. Highlight the differentiation of your product in the market, outline your distribution plans, attach a sell sheet, and ask for the meeting. If there’s no response after one or two weeks, follow up with new, relevant information. Avoid follow-ups with no new information. Instead, share updates like a local industry event with great consumer reception, a new SKU, new performance data, or new distribution plans.

Phone calls can also be effective. When calling, be polite, brief, and flexible with your time to accommodate the buyer’s schedule. Explain who you are, the purpose of your call, and express your willingness to find a convenient time for a chat or to present samples.

How to Get a Buyer’s Attention

Crafting an effective email pitch involves clearly outlining your product’s unique selling points and distribution plans. Keep it short and easily digestible. Use social media, trade shows, and other channels to get noticed. Social media is expected, while trade shows offer a chance to make personal connections. Trade shows like Expo West and Fancy Food are opportunities to engage with buyers in a casual, relaxed way. There are different types of trade shows: large national trade shows are for making future connections, while distributor and smaller regional shows are more for immediate order-taking.

Building and maintaining relationships with buyers is crucial. Treat placement as the beginning of a long-term partnership. Understand the retailer’s needs and offer support beyond just pitching your brand. Consider the retailer’s perspective—if you see them as a person with demands and a boss expecting them to achieve certain revenue targets, you’ll have a clearer understanding of their needs.

A great strategy is to offer value outside of just pitching your brand. You could pitch in with an account reset, send a follow-up handwritten note with an invitation to an industry event, or connect over a shared interest. These personal touches help build a lasting relationship.

When to Hire a Salesperson or Agency

Deciding when to bring in outside help to grow your brand is very personal. Some entrepreneurs need support to cover more ground than they can on their own, while others may focus on operations and feel more comfortable hiring sales support early. It makes sense to hire a salesperson or agency when the cost of that hire won’t strain your business. If your existing business supports that hire or almost entirely supports it, hiring sales support can be a liberating and exciting next step.

When hiring a single salesperson, look for experienced, talented individuals with good work ethics.  Vet them and call their references–make sure someone you are investing $8k to $12k a month (inclusive of salary, expenses, burden) in is worth their salt!  For agencies, find a good cultural fit with industry experience. Integration involves setting clear goals and expectations, focusing on regions, accounts, and targets initially. It’s important to have reasonable expectations and focused priorities. If you hire an agency or person to work on larger accounts, don’t expect them to also pitch hundreds of individual accounts simultaneously.  Or, make sure they have programs that make sense from a financial standpoint to do so.  Brokers can run from a couple thousand dollars a month on up to $15k or more for large national companies–whether you hire an individual at $8k a month or a broker or an agency for $2k to $15k, make sure the value is there for you, with the understanding that you will need to plan for the long term and not the short term.  Not too many things happen quickly in retail!

Securing a buyer’s “yes” is a process that requires preparation, persistence, and strategic thinking. Don’t get discouraged if it takes time to gain placements. Keep professional, persistent, and polite in your approach. If you need assistance, reach out to the Good Now Foods team at info@goodnowfoods.com, who can help you get placement at retailers including Whole Foods Market, Sprouts, Kroger, Natural Grocers, Wegmans, The Fresh Market, and hundreds more accounts nationwide. We love helping brands grow!



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Building Bonds: How Small CPG Businesses Can Thrive with Community-Focused Marketing


Creating a community-focused approach to marketing can be highly beneficial for small, growing Consumer Packaged Goods businesses. 

This approach fosters loyalty and encourages word-of-mouth promotion, which can significantly enhance your brand credibility. Here’s a detailed guide on how to take a community-focused approach to marketing.

Understanding Your Community

To build a community-centric marketing approach, you must first understand the people you’re aiming to serve. Knowing the demographics, interests, and values of your target audience is crucial. This involves more than just surface-level data; you need to engage in social listening to truly grasp what matters to them. Platforms like social media, community forums, and local partnerships & events can provide valuable insights into your audience’s preferences and pain points.

Building Genuine Relationships

Once you’ve identified your community, the next step is to build real relationships. This starts with creating content that adds value to their lives. Educational content, such as how-to guides and tips, can position your brand as a helpful resource. Encouraging user-generated content by asking your customers to share their experiences with your products can also foster a sense of community.

Consistency is key in engagement. Promptly responding to comments and messages, and participating in relevant conversations shows that you care about your customers’ opinions and needs. These types of interactions build trust and loyalty over time.

Leveraging Local Events and Partnerships

Local events and partnerships can significantly enhance your connection to your community. Hosting or sponsoring events such as local pop ups, tastings, collaborative workshops allows you to interact with your community face-to-face. These events provide a platform for direct engagement and feedback, making your customers feel valued and heard.

Collaborating with other local businesses can also extend your reach. Co-promotions and joint events can introduce your brand to a broader audience while fostering a sense of local solidarity. They are mutual beneficial to both you and your partners growing businesses. 

Fostering a Sense of Belonging

Creating a sense of belonging is crucial for community building. Developing loyalty programs that reward continued support can encourage repeat business and strengthen customer relationships. Additionally, offering exclusive deals and early access to new products makes your loyal customers feel special and appreciated.

Establishing a community platform, such as a Facebook group or a dedicated forum on your website, can provide a space for your customers to connect with each other. This platform can become a hub for sharing ideas, discussing your products, and building a strong, engaged community.

Emphasizing Authenticity and Transparency

In an age where consumers are increasingly skeptical of brands, authenticity and transparency are vital. Sharing your brand story, including the challenges and successes, helps humanize your brand and build a deeper connection with your audience. Transparency about your products, sourcing, and business practices can further enhance your credibility and trustworthiness.

Effective Use of Social Platforms 

Social media is a powerful tool for community-focused marketing, but it requires a tailored approach. Each platform has its own strengths and audience preferences. For instance, Instagram is ideal for visually appealing content, while LinkedIn is better suited for professional and educational posts. Leveraging organic influencers who align with your brand values and have a genuine connection with your target audience can also amplify your message and reach.

Measuring and Adapting

Finally, it’s important to measure the effectiveness of your marketing efforts. Tracking engagement metrics like likes, shares, and comments can provide insights into how your audience is interacting with your content. Regularly gathering feedback through surveys, polls, and direct interactions can help you understand your community’s needs and preferences.

Using this data, you can refine and adapt your strategies to better serve your community. Flexibility and willingness to pivot based on feedback are essential for long-term success.

While promotions can provide a short-term sales boost, a community-focused approach to marketing offers a sustainable path to growth for small CPG businesses. By understanding your community, building genuine relationships, leveraging local events and partnerships, fostering a sense of belonging, emphasizing authenticity and transparency, using social media effectively, and continually measuring and adapting your strategies, you can create a loyal and engaged customer base that supports your brand’s long-term success. Embrace the power of community, and watch your business thrive.

Sponsor by:

The Squeeze is a strategic brand and marketing firm dedicated to helping consumer businesses scale. They are a cross between your next head of marketing and a highly scrappy agency – acting as true extension of their clients’ teams. The Squeeze offers a comprehensive range of services including brand development, positioning and messaging refinement, retail strategy optimization, and the creation and execution of strategic marketing plans and partnerships. With deep operational experience and a clear strategic viewpoint, they provide invaluable guidance to growing brands. Notably, The Squeeze played a pivotal role in the development and successful exit of the Foxtrot brand, overseeing its growth from early stages to Series C funding and the launch of over 100 private label brands.

Website: www.the-squeeze.co

Follow on Instagram: https://www.instagram.com/the_squeezeco/





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Tips On How to Beat Your Competition to Market with Expert Support


Beating your competition to market isn’t just about being the first on shelf. You need to deliver the best possible product. Taking time to ensure your product is delicious, appealing to consumers, and can be produced at scale are keys to staying in front of your competition.

Experts with the right experience help you think ahead and ask the right questions for commercial readiness. They ensure you strike the right balance between speed and meticulous preparation. We spoke to two JPG Talent experts in food science and product development, Bridget Sweeney and Joanna Dwyer, and gathered five practical tips to help your journey to become the market leader in your space.

Why is it important to beat your competition to market?

If you’re too slow to market with a quality product, it will be harder to carve your position within that category later on. Market leaders bring innovative ideas to F&B that fulfill unmet customer desires. They tend to make an impression early and achieve better brand recognition.

New innovations bring the opportunity to become the category captain within your niche. Consumers will recognize your brand as the leader, and you’ll oftentimes be able to secure a larger shelf footprint with retailers.

Early innovators are usually rewarded with better brand recognition, market share, and pricing power, leading to better sales and bigger profits in the longer term. Let’s look at five practical ways expert support can help you gain that competitive advantage.

1. Preempt Roadblocks

Understand the right questions to ask from the outset. Before too much time and money is used on development, bring in experts with knowledge and previous experience to help identify what businesses and products are doing well and where there are opportunities for improvement.

Bridget recalls optimizing a family-owned bakery’s production run, preempting processing time roadblocks when the business scaled and increasing the run output. When she asked why they mixed a cake batter and ran the product down the line in a certain way, they answered, “That’s just the way we’ve always done it”.

She implemented a new method where the ingredients were added in a different order, making the mix time shorter and the process more efficient. After running a side-by-side comparison of the two methods, the team agreed that her method increased throughput and produced a better tasting cake.

“Aesthetically it was just night and day,” Bridget says of the new product, “There’s something called a grain of a cake and the grain is how you tell the quality, how tight the cells are. There’s no cracks, there’s no air bubbles, there’s no defects.”

“When they compared their method with my method, they saw clearly that this

new way of processing and mixing was going to help benefit their company.” She adds.

TIP: If your business is struggling while operating based on “how you’ve always done it”, it might be time to test alternative operations to improve efficiency.

2. Influence cross-functional teams

Different teams and experts within an organization add unique perspectives and knowledge to a project. However, dealing with so many different stakeholders can slow down the innovation process.

External experts can look at your organization from a fresh angle and help create alignment within teams to move projects forward. This often results in more creative ideas and efficient progress towards your goals.

Bridget implements different processes depending on the size of the business she’s collaborating with. When working with smaller companies, she engages the leadership as well as operations personnel on the production line by having them taste new products and give their feedback.

“I like to bring out a box of ingredients to incorporate in their product matrix,” Bridget reveals, “I would work with their current suppliers and their current ingredient library to make the best tasting product possible.”

She continues: “Then we would take these prototypes and do some sensory testing with people in the office and others in the organization to engage them in that process.”

With larger companies, she pulls together the whole R&D team and marketing team to an innovation summit.

“I’d have each person bring five to six ingredients that they think would be compatible and innovative to try out,” Bridget explains, “Then we would pull all the ingredients and have people either develop a new product conceptually or actually make the physical samples themselves.”

“We would then evaluate the samples, narrow down the pool, and bring a handful of the best concepts to share with the rest of the organization.” She adds.

Joanna agrees that bringing in members of different teams, especially early on, leads to a more collaborative and creative process.

“When appropriate, I try to bring in people from supply chain and operations as early in the process as possible to get their perspective,” she says, “because there are always things that we’re not thinking of, and they bring different ideas.”

3. Faster problem solving

Issues and unexpected challenges will occur when engineering a new product and taking it into production. Experience brings knowledge and understanding that can shorten timelines and hit retailer launch windows while maintaining the highest level of quality.

Joanna works on many projects in the confectionary world where companies need to rework existing products to create additional customer value.

“Let’s say your manufacturer has this capacity to make a differently shaped filled chocolate bar,” Joanna says, “Maybe your product is too large, the value is not there. We’ll shrink it down into a smaller size and package it differently, utilizing the same manufacturer, the same capacity. You already have all these ingredients in-house.”

Bridget worked on a disruptive new cracker for a leading manufacturer where the product was dry and the dough was cracking on the production line. After adding time for the dough to rest and having the team play with the order of ingredients in the mixer, she improved the product quickly.

“We shortened their timeline for commercialization from four weeks to less than one week and the customer was first to market with the product,” She reveals.

Bridget conducts extensive research and has conversations with everyone from the leadership team to the production workers to understand the company and product better. Having extensive experience, she gets a gut feeling even before starting a production run. Combining prior experience with current company knowledge, “You may only need one trial, instead of three to five trials to get it right, because you already know what the potential challenges are going to be.”

4. Gain instant access to specific areas of functional expertise

We understand that every team has strengths and weaknesses. Your team may not have specialist knowledge to enter a new category or solve a specific type of issue in your existing category.

Joanna has worked with clients like this before, who tell her that “we need someone to come in and reformulate and tell us essentially what we’re missing and what we’re doing wrong.”

A functional expert can remove bottlenecks to success in new categories. Someone who has been there before in a specific industry niche has the experience to fill your teams’ skills gaps.

Besides filling gaps within your team, an expert can also fill in communication and understanding gaps between your business and external suppliers. Joanna emphasizes the value of “being able to call someone who understands the specifics and can be your advocate in that relationship and advocate for the product in a co-manufacturer relationship.”

TIP: Make sure someone on your team, whether internal or fractional, thoroughly understands the product and production process so they can clearly communicate and advocate with your co-manufacturers.

5. Accelerate and Scale

Even if you become a category leader, your competitors will be close behind. Securing the first movers’ advantage to stay ahead is essential, and you must continue to optimize and further develop scaling capabilities.

To continue forward momentum, Bridget meets with each shift of production workers before a trial run and has them taste the product’s gold standard samples. She suggests having pre- and post-production meetings to agree on standards and expectations, and she ensures a quality assurance leader is on site.

“Once they (line workers) feel like part of the story, they’re going to want to make this successful,” she says, adding, “They’re going to feel involved and it’s going to motivate them.”

Get the support you need to become the category leader

Being a market leader involves anticipating and solving problems quickly by ensuring you have the right experience on your team. Leaders fill skill gaps where necessary and verify production scalability to maintain their advantage.

Fractional experts have the right experience and passion to guide you through innovation and commercialization.

“The key to being successful is being passionate, loving what you do and genuinely wanting to help people.” Bridget explains, “Not just because they pay you. You do it because you really want them to be successful, you want to impart the knowledge that you have and pass it on to other folks. And perpetuate the love of food science.”

Learn how JPG Talent can help you find needed expertise to beat the competition and become the leader in your product category.



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