About this event:
In a riveting display of industry insights, the Dallas-Fort Worth (DFW) Consumer Packaged Goods (CPG) Main Event, titled “Mastering Multichannel: Strategies for Success in CPG,” was held to a packed audience yesterday evening. The event focused on key tactics and strategies crucial to thrive in the multichannel environment.
Moderated by industry expert Richard G. Riccardi, the event saw insightful input from panelists Adam Franks of 7-Eleven and Leah Lopez of Better Bites Bakery. Both experts shared their wisdom, insights, and captivating anecdotes from their journeys in the CPG landscape.
Topics Included:
Identifying the right channels for your business.
Insightful tips on scaling and potential pitfalls to be cautious about.
The vital role of marketing support for products.
Pricing strategies and common mistakes to avoid.
The counterintuitive concept that less distribution can often lead to more.
The significance of transparency in transactions.
How both brands and buyers can achieve mutual benefit.
The importance of perseverance, a highlighted word of the day.
Key Messages:
The panel acknowledged that the distribution channels are extremely complex today, and that it is a far better strategy to figure out where your customer/consumer shops, and what channels and then retailers fit your brand – and then build a sales and distribution plan. It’s better to go narrow and perfect your offering in one channel or two, and with a select few retailer partners, and scale from there. It is ok and often preferable to tell a retailer that you are not ready yet for distribution with them. They will respect that. Build that relationship.
Growth requires adequate funding. The more retailers and channels you tackle, the more cash you will need. Be thoughtful and forecast those needs in advance. Ask questions like what is your new product entry/ cost, how long a shelf life do you require, and how long will you let my new brand be on shelf? What support can you/will you offer my small brand? What custom retail or other programs will I be required to buy into? The cost of doing business varies from channel to channel. Be selective in where you start, and how you grow your distribution. Forecast your cash needs and your resource needs (people, capital) for the next 12, 18, 24 months as you grow.
Don’t stop asking questions, gaining advice, and finding trusted advisors in CPG and among your peer brand founders. There is a lot of shared knowledge available through the communities that exist, like DFW CPG, StartUp CPG, and others.
The Go Texan program is popular with Texas retailers like HEB and Costco, among others. Investigate it to see if it makes sense and fits your brand.
Pricing is another complex topic and there is potential to ‘get it wrong.’ A smart approach is to find someone with expertise to help you figure out a pricing strategy before beginning distribution. As brands scale, not having a coherent pricing strategy can create problems.
Retailers are both experiencing a lot of buyer turnover and margin pressures in the current business environment. This does have an impact on how they assess brands and their viability and can impact how long it might take to get approval.