Recent regulations in the FMCG sector

Increasingly, consumers are demanding products which minimise harm to, or have a positive effect on, the environment. As a result, there has been a proliferation of brands and products which claim to meet that demand. Thus, there have been an increasing number of regulations in the FMCG sector addressing health and environmental impacts , especially …

Internet and its influence on sales

On 12 March 1989, Sir Tim Berners-Lee submitted his proposal for the World Wide Web. Sir Berners-Lee proposed a way of structuring and linking all the information (like a web) available on CERN’s computer network that made it quick and easy to access. This concept of a ‘web of information’ would ultimately become the World …

Amul – how they grew during the pandemic through their (inadvertent) use of data

Amul is a household name in India. For those who have not lived in India, Amul is a dairy brand in India. Amul is possibly the biggest FMCG brand in India by revenue – $5.3billion in 2020 according to Global Dairy Top 20 report by Rabobank. The organisation behind this brand is Gujarat Co-operative Milk …

DtC scaling – strategies to mitigate risks

There is no doubt that the pandemic accelerated growth for several e-commerce FMCG/CPG (FMCG = Fast Moving Consumer Goods; CPG = Consumer Packaged Goods) brands. However, scaling DtC (Direct to consumer) brands online is far more expensive than scaling through supermarkets. According to Statista, 80% of sales are still happening in store. Whether that is …

Walmart and Procter & Gamble

We referenced this collaboration in a previous blog and received a lot of questions about it. So we decided to dedicate a ‘case study’ to this collaboration. In the late 1980s Walmart was P & G’s fifth largest customer and Mike Graen had been charged with the responsibility of improving the commercials for Walmart by …

Convenience stores – a key battleground for brands

15 years ago, the key battleground for brands was discounters. Aldi, Lidl and Iceland were growing rapidly and FMCG companies were looking at how they can gain share in these channels. Convenience was an important channel, but the entire channel usually got the same level of attention as a large supermarket chain did. According to …

Pantene/Walgreens collaboration to increase sales of Pantene SKUs

In 2013, more than 300 new haircare products were introduced in the U.S. and Pantene was struggling to stay relevant. Consumers were quick to switch to competition and the brand’s key retail partner, Walgreens, was losing confidence. Pantene needed to turn around brand performance at Walgreens to retain distribution, and increase penetration and retention without …

Surviving inflationary & supply chain pressures

At the start of 2022, everyone was breathing a sigh of relief as we started to accept that non-lethal variants of Covid-19 were going to be a part of our lives going forward, just like influenza and how we live with it. However, by February 2022, everyone was talking about rising food prices and how …

Sustainability and stock

For FMCG/CPG companies, optimal retail stock levels is about maintaining enough stock at a retailer’s warehouse or at a store level to eliminate out of stocks in stores. For retailers, optimal retail stock levels is about maintaining just enough stock to eliminate overstocking in stores or at their warehouses. However, optimal stock levels need to …

Can a shift in power balance help the FMCG sector?

Years ago, the power balance between manufacturers (suppliers) and retailers was skewed towards the former, but with consolidation in retail and the formation of large players like Tesco & Walmart, the power balance favours retail currently. Imbalance driven by low fragmentation in the sector In the UK, the large grocers/supermarket chains (Tesco, Sainsbury’s, Morrisons and …