There are plenty of questions we hear from our clients and customers all the time about the Consumer Package Goods (CPG)industry – how it really works, the essentials of success, and what you truly need to know to succeed. So, we wanted to provide a guide through the questions we hear the most, so you can get informed as you work to grow and scale your CPG business in this highly competitive industry. Let’s go!
Q: Is Vertical Integration the Only Way to Succeed?
A: Vertical integration is a powerful tool for many industries – it’s where you own your supply chain and distribution chain from top to bottom. But it’s not possible, or workable, in many other industries. If you sell organic paleo soups, and sauces, for example, it’s probably not workable to open a series of shops (it might be! But not for most manufacturers).
Make sure you’re focusing on the CPG revenue growth strategy that truly fits the needs of your business and your customers, without overextending yourself because you focused on the business growth buzzword of the moment.
Q: Do You Need to Sell to As Many Retailers as Possible?
A: The first time you sell your product to a brick and mortar store is a heady time – it’s no surprise that many emerging CPG companies keep chasing that high. But are you spreading yourself too thin trying to get carried by every single possible retailer in your area? You want to focus on getting your CPG product on the shelf space of the right places – not every possible place. So, what’s your sales strategy to figure out who that is and how to reach them?
Q: Is There a Way to Scale Without Burning Out?
A: This is a big problem with many emerging CPG companies, especially those in hot and growing categories like natural/organics, plant-based products, or health and wellness companies. You start out with a few great ideas and turn those into must-have products. Great! That’s what success looks like, right?
But it’s only the very beginning. If you just keep pouring all your time and effort into the business, you hope you can figure out how to keep growing. But in the meantime, you’re grinding yourself and your team down. You need to figure out how to scale and grow by working smarter, not harder.
And that’s very possible when you have the right team on your side. (This is where you call Momentum CPG, and we work together to get you sustainable growth instead of burnout.) Let’s Talk!