Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The Changing Landscape of Consumer Packaged Goods

106,707 views

Published on


Identifying and building relationships with the next big company is something B2B sales teams try to do, but most of them do it inefficiently and ineffectively. This webinar for B2B sales leaders will give you smart, proven strategies, templates and data to help you target, nurture and prioritize the right startups so you can build better relationships & ultimately sell more.
A look at the major trends, biggest investments, and key players in private companies in the consumer packaged goods (CPG) industry. We'll do a deep dive on trending companies, dig into the hottest categories, and look at which sectors within the space are poised for major change as well as how incumbents are reacting.

Published in: Technology
  • Nice !! Download 100 % Free Ebooks, PPts, Study Notes, Novels, etc @ https://www.ThesisScientist.com
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Finally i found something that changed my life, if you need to change yours just watch the video here http://bit.ly/changesvideo Hope it helps you as it helped me!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Nice !! Download 100 % Free Ebooks, PPts, Study Notes, Novels, etc @ https://www.ThesisScientist.com
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Now, change your life Now! No more excuses, watch the video http://bit.ly/changesvideo
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Now, change your life Now! No more excuses, watch the video http://bit.ly/changesvideo
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

The Changing Landscape of Consumer Packaged Goods

  1. CBINSIGHTS THE CHANGING LANDSCAPE OF CONSUMER PACKAGED GOODS What’s Changing Today, Who’s Doing It, And What The Future Holds May 3, 2016CB Insights Webinar
  2. 2 Join the conversation on Twitter Share your favorite insights & data points on Twitter @cbinsights #CPG 2
  3. CBINSIGHTSAbout Our Presenter – Nikhil Krishnan 3 @nikillinit nkrishnan@cbinsights.com • Research Analyst, CB Insights • Focuses on healthcare, autonomous vehicles, and consumer products • Published research and data analysis have been featured in The New York Times, Wall Street Journal, Financial Times, Bloomberg, and CNBC, among other major media outlets. • Graduate of Columbia University with B.A. in Sustainable Development and Business Management
  4. CBINSIGHTS About CB Insights Backed by RSTP and the National Science Foundation, CB Insights uses data science and machine learning to help our customers predict what’s next—their next customer, their next investment, the next market they should attack, the next move of their competitor, or the next company they should acquire. The world’s leading global corporations including the likes of Cisco, Salesforce, Castrol, and Gartner as well as top tier VCs including, NEA, Upfront Ventures, RRE, and FirstMark Capital rely on CB Insights to make decisions based on data, not decibels. To make your life easier, visit http://www.cbinsights.com ABOUT CB INSIGHTS A unique combination of data science and machine learning to help you see what’s next. ”A detailed discussion of data collection and how thecompany parsesthem iswritten by CB Insights’ data scientists; it convincingly tellsthestory of scalability and accuracy for what they call “The Cruncher.” From “Predictive Analytics And Novel Visualization Draw Customers To 'Must Have' Data” published April 8, 2015 5
  5. A FEW OF OUR HAPPY CUSTOMERS The most publicly reference-able customers of anyone in the industry See what other customers have to say at http://www.cbinsights.com/customer-love “Designed by a VC insider who truly knows the space and understands end-user needs.” “We're using CB Insights at Salesforce Ventures to analyze industry trends that are relevant to our strategy. It's helped improve our efficiency.” Matt Garratt Sr. Director, Corporate Development Salesforce Ventures “CB Insights provides our team with a holistic and thematic approach that really captures market activity….we've found CBI to have the best access for the most accurate market view.” “We have been looking for a tool that could give us the ability to track, research and identify investment opportunities. CB Insights provides this simply and in a simple, easy to use interface. The depth of information that we get is exactly what we need. Great product.” Jonathan Tudor Ventures Director Castrol innoVentures “CB Insights perfectly illustrates what I expect today from such online services to stay tuned to our fast- changing Tech Landscape. Accurate and up-to-date data mash-ups, intuitive UIs, smart data visualization capabilities and direct API access… all packaged together with straightforward pricing.” Simon Mencarelli Senior Manager, Strategic Planning Dassault Systèmes “CB Insights' intuitive user interface, analytical capabilities, and detailed investment information create a very powerful tool for our team's research needs.” Nate D’Anna Corporate Development Cisco Greg Bae Investments & Biz Dev Comcast Ventures Jack Leeney Portfolio Manager Telefonica Ventures 6
  6. In God we trust, all others must bring data
  7. Want to Dig Deeper on Consumer Packaged Goods? Sign Me Up
  8. 7 WHAT ARE WE FOCUSING ON? Trends that are affecting the Consumer Packaged Goods (CPG) industry and how both public and private players are reacting to them. Our CPG category includes personal care products, cleaning supplies, pet care products, baby products, beverages (including alcoholic beverages), canned and frozen foods, snacks, candies, and dairy products. 8
  9. IN THE NEXT 30-45 MINUTES, WE’LL COVER… 1 CPG Funding & Exit Trends In Private Markets Funding trends, active geographies, and top investors 3 The Rise Of Startups And Consumer Taste What has caused the CPG startup explosion? 4 E-Commerce And Product Distribution Companies are creating entirely new distribution channels for CPG 6 CPG Marketing Shifts Looking at how CPG marketing has changed along new channels 2 Corporate Involvement In CPG Startups Where Corporates Are Investing and Partnering 5 The Value of Direct-To-Consumer What advantages do companies have going direct-to-consumer 7 Questions For The Future 9
  10. PRIVATE MARKET INVESTING LANDSCAPE FOR CPG
  11. CPG IS PICKING UP IN INVESTMENT ACTIVITY CPG saw more than $3.3B invested in 2015, a 58% YoY increase. While deal growth was more flat, 2015 still represents a 158% increase in private market deal activity since 2011. Source: CB Insights 11
  12. PRIVATE CPG FUNDING DROPS IN Q1’16 Funding to CPG companies dropped below $500M in investment without the presence of megadeals. Funding remained relatively stable, hovering around 100 deals per quarter. Source: CB Insights 12
  13. MOST CPG DEALS ARE IN CALIFORNIA California had almost as many deals as the next 3 states combined. 4 states had more than 100 deals into CPG companies since 2011 Source: CB Insights 13
  14. WHO ARE THE TOP CPG INVESTORS? CPG focused accelerators are becoming more popular and are the most active investors in the space currently, along with some institutional investors Source: CB Insights 14
  15. MOST WELL-FUNDED CPG COMPANIES Source: CB Insights 15
  16. LOTS OF CPG COMPANIES ARE BEING BOUGHT Source: CB Insights 16
  17. MOST COMPANIES GET BOUGHT WITHOUT RAISING MONEY 17 Source: CB Insights
  18. THE TOP ACQUIRERS OF CPG COMPANIES ARE LARGE CORPORATES Source: CB Insights 18
  19. CORPORATE INVOLVEMENT IN PRIVATE CPG MARKETS
  20. CORPORATES HAVE BARELY BEEN INVESTING INTO CPG COMPANIES Source: CB Insights 20
  21. CPG CORPORATES MOSTLY INVOLVED IN M&A IN PRIVATE MARKETS Source: CB Insights 21
  22. CPG CORPORATES ACQUIRE AND INVEST IN COMPANIES FOR A HOST OF REASONS 22 Acquisitions Investments Acquisitions Source: CB Insights
  23. CPG COMPANIES CAN REAP THE REWARDS FROM INNOVATION "By 2013, net revenues from innovation accounted for 8% in sales…In 2014, it was 9%. Any declines we had in traditional brands were more than offset by these innovations." “The only way you can change is invest back in innovation. You cannot grow yourself out (of the challenges the food industry faces) by efficiency alone. Yes, this grows the bottom line, but cannot grow the top line without innovation…" Mehmood Khan Chief Scientific Officer, PepsiCo 23Source: FoodDive
  24. R&D IS A RELATIVELY SMALL EXPENDITURE FOR MANY CORPORATES Source: PepsiCo 24
  25. R&D IS A RELATIVELY SMALL EXPENDITURE FOR MANY CORPORATES Source: Unilever 25
  26. R&D IS A RELATIVELY SMALL EXPENDITURE FOR MANY CORPORATES Source: Market Realist 26
  27. OTHER INDUSTRIES SPEND HIGHER % OF REVENUE ON R&D Source: Strategy& 27
  28. AND IN ABSOLUTE NUMBERS CONSUMER COMPANIES CONTRIBUTE WAY LESS TO R&D Source: Statista 28
  29. AND CONTINUOUSLY MORE CPG CORPORATES ARE CREATING VC ARMS “The traditional consumer packaged goods model of big advertising budgets, trade leverage and scale — a lot of those factors have been neutralized by these small brands…Emerging brands have alternative pathways to market online.” – John Haugen, General Mills Venture Fund Manager Source: NYTimes 29
  30. CPG BRANDS ALSO PARTNER WITH STARTUPS 30
  31. BUT SOMETIMES IT GOES A LITTLE DIFFERENTLY VS. VS. 31
  32. CASE STUDY: UNILEVER VENTURES ONE OF THE FIRST CPG CORPORATE VENTURE ARMS • Established in 2002 • Has done 20 deals since 2011 • Focused on companies which either increase reach of distribution or use tech solutions to gather new data • Earlier investments (pre- 2012) focused on hard sciences, healthcare, and biology Select Investments 31Source: CB Insights
  33. CASE STUDY: UNILEVER ACQUIRES BRANDS AND NEW PRODUCT AVENUES Acquisitions 32 Source: CB Insights
  34. CASE STUDY: UNILEVER FOUNDRY MOVES EVEN FURTHER DOWN THE STACK 33Source: Unilever
  35. CHANGING TASTES AND THE RISE OF SMALL CPG BUSINESSES
  36. 35 SMBS ARE TAKING A LARGER % MARKET SHARE Source: Boston Consulting Group
  37. 36 AND MORE NEW PRODUCTS THAN EVER ARE BEING CREATED Source: Wall Street Journal
  38. 37 ESPECIALLY IN THE CRAFT BRANDS AREA Source: Brewers Association
  39. 38 SMALL BRANDS ARE UNBUNDLING CORPORATES Source: CB Insights
  40. 39 NEW TOOLS MAKE IT EASIER AND CHEAPER THAN EVER TO LAUNCH A CPG BUSINESS CPG FOCUSED ACCELERATORS CROWDFUNDING PLATFORMS TARGETED ADVERTISING
  41. 40 CRAFT AND CONVENIENCE COMMAND PREMIUMS Source: Deloitte
  42. 41 PEOPLE ARE WILLING TO PAY MORE FOR ECO- FRIENDLY GOODS Source: Nielsen
  43. 42 IMPORTANCE ON HEALTH AND TRANSPARENCY Source: Deloitte
  44. 43 LOOKING ACROSS MORE DEMOGRAPHICS Source: Nielsen
  45. 44 WELL-CAPITALIZED COMPANIES ARE TAKING ADVANTAGE OF THESE TRENDS Source: CB Insights
  46. 45 MICRO CASE STUDY: THE HONEST COMPANY • Built brand on family-friendly ingredients and transparency • $170M in sales in 2014 • Sells both direct-to- consumer and through retail channels (Target, Costco, Whole Foods, etc.) • Valued at $1.7B and exploring M&A or IPO options currently
  47. CPG MARKETING SHIFTS
  48. Download the full 88-page CPG research brief Get the report

×