Welcome to the second of our two-part series on the changing state of CPG and grocery. Last week we discussed the unique challenges manufacturers are currently facing as the relationship between consumer, retailer, and manufacturer all undergo radical shifts.
We all know that CPG is hurting, but we also know it’s not going anywhere. Unless we all roll up our sleeves and dig into an agrarian renaissance, we will always need consumer packaged goods—that’s not changing unless we all start farming. And I for one do not farm.
What’s changing, then, is where, how, and from whom consumers are getting these goods. Formerly the exclusive territory of CPG titans like Unilever and Kraft, CPG is increasingly fragmented and less monolithic.
Nowadays, it’s not enough for food to feed us. Today’s consumer wants functional foods and beverages, ones that not only satisfy cravings and fill the tummy, but also bring along health benefits like a boosted immune system, shinier hair, better digestion, and of course weight loss.
Beyond Meat is moving beyond niche, debuting in two QSRs—Del Taco and Carl’s Jr.—over the last several months. Formerly restricted to Whole Foods grocery aisles and pretentious burger joints like Hopdoddy, the entirely plant-based burger patty (peas, faba beans, soy, and beets are the main ingredients), is quite popular. It counts Bill Gates and lifetime ‘it’ boy Leonardo DiCaprio as celebrity investors, to say nothing of General Mills, Tyson Chicken, and even the SPCA on the corporate side.
It’s a short week and still relatively quiet in the hallways, so we are gonna bet that not many of you have too much time to devote to your weekly market research fix.