How CPG Brands Can Find Opportunity Amid The Crisis

How CPG Brands Can Find Opportunity Amid The Crisis

Here’s a pro tip for keeping your sanity during the lockdown: Oreos help. At least, that is what a lot of people seem to think. Mondelez, the parent company that owns Oreo and more than a dozen other household brands, reported a 9% increase in the related “biscuits” category during a recent Q2 earnings call. Interestingly, their gum brand Trident isn’t faring so well. I guess chewing while wearing a mask isn’t for everyone. 

On a more serious note, Mondelez also announced that they plan to cut 25% of their overall SKUs across brands. This isn’t because they are in trouble. On the contrary, they have experienced an “unprecedented” gain in market share during the pandemic, and they are, in part, giving credit to a more focused and efficient supply chain. In the words of their CEO: 

“We were already obliged in this crisis to work with a much smaller set of SKUs in order to make sure that the key SKUs are on the shelf. And what do we see? Our sales are better, the shelf looks cleaner, and we get some benefits from it. So we’re pushing through using the opportunity to say, this is the moment we do it.”

We Are Entering a Period of Opportunity and Pitfalls

Why should remarks by Mondelez be of interest to other CPG companies? Because this is a poignant example of how the ongoing crisis has dramatically impacted consumer behavior, as well as the potential for brands to make dramatic changes that would have been unthinkable just a few months ago. 

In general, revenue has been up for the grocery industry over the last quarter, but that should not lull brands into complacency. CPG companies will be facing rapidly changing conditions on the shelf for the next year, and it will be a time of great opportunity for those who have the data and processes to make strategic decisions. But not all brands will emerge on top.

Is Your Organization Prepared to Ride the Wave? 

The economy is on a roller coaster, consumer demand is in flux, shelf space is up for grabs, SKUs are disappearing, and eCommerce is exploding. To keep pace, your organization must be able to collect and analyze pricing information at individual stores, and across entire regions. 

If this is not something you are prepared to handle, RW3 can assist. Our team of industry experts can provide the technology and processes you need to track relevant data streams from many sources. No one can predict what is coming next, but our mission is to provide clients with real-time actionable intelligence, so they are always prepared to respond to market shifts. 

These are strange times, but with a proactive strategy you can emerge from this crisis stronger than ever before. Let’s talk about identifying your needs and opportunities: send us a message.

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Bruce is the founder and CEO of RW3 Technologies. Having spent more than 35 years in the consumer goods and grocer space Bruce has experienced the industry disruption first hand and understands how artificial intelligence, POS data, and mobile technology can transform a good organization into a great one.

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