Katrina El-Kik

Cautious lower-income consumers and slower restaurant sales are squeezing Kraft Heinz. The packaged food product company on Wednesday (May 1) released earnings showing a 1.2% drop in sales, driven by lower-income consumers spending less at both the supermarket and on meals away from home. The company said it raised its prices 2.7% year over -year to offset the cost of goods such as coffee. “The gap between high and low earners continues to remain wide, and it shows a clear and continued bifurcation,” CEO Carlos Abrams-Rivera said during an earnings call. “So the lower-income consumers are challenged with interest rates remaining high, gas prices elevated and savings dwindling. So there’s a clear pullback of restaurant spend by these lower-earning households, especially in restaurants and convenience stores. These consumers instead are looking for value as they prepare more meals at home.” #inflation Kraft Heinz #groceryindustry

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Sometimes it takes a little jolt to lead you to what you are meant to be doing anyway. That jolt happened last week when I learned I was part of a restructuring at Danone. Unfortunately, my position and many others (occupied by some of the most talented and creative individuals I’ve ever worked with) were eliminated. This is sad because I finally felt like I was doing exactly what I should be doing: strategy. It’s where I started my career many moons ago and where I always knew I belonged. There were some detours, which landed me on many different sides of this industry: agency-side, client-side. Non-profits, CPG, agriculture, tech. Account management, PR, communications, sustainability, strategy. When added up, that experience gives me a unique perspective and skill set that I’d like to apply to what I’m going to do next: consulting and project work. What I do: foundational brand strategy and impact strategy/communications work. How I do it: I act as a bridge between groups within your organization to unlock creativity, clarity, consistency, and focus so you can live and breathe your brands' true purpose. Reach out if you or someone you know could use some of that. Onwards!

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Trend alert: air fryers are claiming the title of Consumers' Most Loved Kitchen Appliance.   "More people have an air fryer today in their kitchen than a coffee maker, Nestlé noted."   According to The New York Times, the first big sales boom for the air fryer came in 2017, and the pandemic provided another boost. As home cooking became necessary, the air fryer emerged as a hero, offering a swift and health-conscious solution. Its ability to cook meals and snacks with minimal oil (and dishes) became a game-changer for consumers of all ages. Across social media platforms, users are sharing a treasure trove of inventive air fryer recipes, spanning from indulgent treats to health-conscious meals. Sensing the demand, companies are innovating with products designed to elevate and further simplify the air frying experience.   Looking ahead, the air fryer's trajectory shows no signs of slowing down. As innovation drives the development of more advanced air fryer models and accessories, we can anticipate even greater versatility and convenience in the kitchen. Furthermore, the integration of smart technology may pave the way for personalized cooking experiences tailored to individual preferences and dietary needs.   The air fryer has become my favorite kitchen appliance over the last few years, and I'm excited to see the new products to come. Read about air fryer-inspired products in Food Dive: https://lnkd.in/eUHfpgGD #consumertrends #productinnovation #packagedfoods #CPG

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I’ve called Harvest Creative at Danone North America home for the last 1.5 years, but due to a reorg last week, the agency has been dissolved and my role eliminated. While this role has held the shortest tenure in my career, it by far has been the most fulfilling and profound: I launched new innovations (REMIX Yogurt & International Delight Cold Foam) into the world through clever and smart advertising; I worked on a once in a lifetime partnership (STōK Cold Brew & Wrexham AFC) that is currently sweeping the Awards circuit (The Drum, Webbys and Shortys), and even got my hands dirty on my first Super Bowl campaign. The last 1.5 years was a whirlwind, but I’ve never grown more in my entire career thanks to Danone’s tremendous people and, of course, Harvest’s fearless leader, Allison Ingalls. The most impactful leader, mentor and friend I could have asked for. While this is an incredibly hard chapter to close, I’m eager for what’s ahead. What I do: _Lead wicked gifted agency teams through complex brand needs and advocate for their thought-provoking work _Partner with clients to identify business challenges and translate them into inspiring, hardworking marketing efforts _Develop communications & creative strategies that celebrate consumers and meet them where they’re at in the world _Produce exceptional creative work (as of recently, advertising campaigns) with results that matter and move the brand’s business forward What I’m looking for: Truthfully I’m an open book at the moment! I want to continue to explore creative agency avenues, but search for new opportunities as well in integrated marketing roles, general account management in new industries and heck, maybe even tech. Let’s talk, grab coffee, or even schedule a call! I’m excited to hear from you. #OpenToWork #Marketing #Advertising 

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Food costs are surging everywhere- from restaurants and grocery stores, to food carts and street food. 📈 Check out this NY Times article shedding light on the rising expenses behind every meal. As food marketers, it's vital to stay on top of these trends, from ingredient costs to supply chain challenges to labor issues. Understanding these hurdles empowers us to adapt and support our vendors effectively. Let's seize this moment to brainstorm creative marketing solutions that not only boost sales but also strengthen our community's resilience. Whether it's diving into digital strategies or fine-tuning our current offerings, let's innovate together. Got ideas? Share them below! Let's transform this challenge into a recipe for growth. 💡🍽️ #FoodMarketing #Innovation https://lnkd.in/esSw-MPf

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Food makers are in something of an extended slump as American consumers feel increasingly pinched. Grocery sales last year were hit by the twin shocks of inflation and the expiration of pandemic-era benefits. Many had hoped that this year would mark the start of a recovery, but it hasn’t quite worked out that way. “Some of our clients are saying we should be seeing a return to growth,” said Carman Allison, vice president of global thought leadership at NielsenIQ. He noted that although inflation has slowed, food prices are merely leveling off at record levels around one-third higher than before the pandemic. What is more, consumers are now facing hefty increases in unavoidable expenses like auto insurance and shelter costs. “There has been this compound effect as it relates to inflation over the last couple of years. I kind of think of this as the inflationary ball and chain that the consumer is still carrying around,” Allison said. #inflation #groceryindustry NielsenIQ Aaron Back Carman Allison Campbell's The J.M. Smucker Co. https://lnkd.in/gpWdA8Gw

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The shift towards every day value pricing is something I have talked with buyers about for the past several months. From The Wall Street Journal article on Pepsi's slowdown: “Shoppers are now less interested in buy-one-get-one-free promotions and want lower price points for single items, Caulfield added.” Consumers are more savvy than ever and understand the high/low strategy many retailers have turned to in recently to keep retails high. The challenge for EDLP vendors and retailers who opt to keep retails low is that point-of-purchase signs (i.e. wobblers, danglers, shelf strips, etc) that attract shoppers attention tend to only be given to vendors who are on a temporary promo. On my recent road trip I did notice 7-Eleven doing a great job with advertising $1 items. I expect to see more of that sort of signage from more retailers in the near future. Buyers who can find ways to attract both the customers who are comfortable in higher ring promotions and also offer EDLP pricing for value shoppers will perform well in 2025.

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Roundup of All Things CPG This Week: (Follow for weekly roundups like these every Friday) 💼 Mergers & Acquisitions → Kirin Completes Fancl Buyout: Kirin finalizes the purchase of Fancl for $1.4B, continuing its strategic shift from beer (WSJ). → Newport Craft Distilling Acquires KEEL Vodka: Newport Craft adds KEEL Vodka to its portfolio (PR Newswire). → Walmart Acquires Vizio: Walmart buys Vizio for $2.3B, expanding into electronics (Intellizence). → Paramount Global Merges with Skydance: Paramount Global partners with Skydance in a $22.26B deal (Inside Arbitrage). 💰 Fundraising Highlights → Funding for UK’s Common Beverage: Secures six-figure investment led by James Watt (The Drinks Business). → InvestBev’s Ambitious Goal: Launches its fifth fund, aiming to raise $150M for beverage brands (Axios). → Emma Watson’s Renais Gin: Raises $2.3M to fuel growth in the luxury gin market (SEC). → ZeroFox Holdings Raises Funds: Secures investment from Haveli Investments to enhance digital risk protection services (Stock Analysis). → Agiliti Secures Funding: Thomas H. Lee Partners invest in Agiliti for growth in medical equipment services (Stock Analysis). 💄 Apparel, Cosmetics, and Wellness Updates → Briogeo Expands Product Line: Introduces new hair styling products at Ulta and Sephora (Glossy). → Unilever Prestige CEO Resigns: Vasiliki Petrou resigns to start a new investment fund (Business of Fashion). → Care/of Closes Operations: The personalized vitamin brand shuts down (Twitter). → Goop Launches Mascara: Gwyneth Paltrow’s brand expands its makeup line with a new mascara (WWD). → GlaxoSmithKline Acquires Aiolos Bio: GSK enhances its respiratory care portfolio (Stock Analysis). → Amgen Launches New Wellness Initiative: Focuses on personalized health and wellness products (Inside Arbitrage). 🍽️ Food, Beverage, and Alcohol News → Liquid Death’s New “Death Dust”: Enhanced flavors now available on Amazon (Instagram). → SCiFi Foods Shuts Down: Cultivated meat startup ceases operations after raising $40M (AgFunder). → DAVIDsTEA Introduces Sparkling Iced Teas: Launches its first ready-to-drink product (Instagram). → Mondelez Collaborates with Lotus Bakeries: New cookie and chocolate products in the works (Food Dive). → Top of the Mornin’ Coffee’s New Flavor: Introduces French Toast Flavored Coffee (Instagram). → Hulk Hogan’s Beer Launch: Debuts Real American Beer (Brewbound). 📊 Data and Distribution Developments → MERIT’s Financial Success: On track to reach $100M in sales this year (Business of Fashion). → Verb Energy Debuts at Earth Fare: Available in Earth Fare stores. → Burnt Faith Brandy at Tesco: Expands to the UK market. → Pioneer Natural Resources Partners with ExxonMobil: Focuses on sustainable energy solutions (Stock Analysis). → Alpine Immune Sciences Teams with Vertex: Enhances its immunotherapy offerings (Stock Analysis). Enjoyed this? Follow James Ball for roundups every Friday.

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💡 With so many brands on the shelves, how do consumers choose which to try, and which to buy again and again. Consumers want more than just a pretty box, (although, a nod to my package innovation friends- good packaging goes a long way!!) Customers want a story. By partnering with chefs and other culinary influencers brands are able to craft a deeper story that resonates with consumers. Studies show that by prioritizing experiential marketing through chef collaborations, brands can foster a 40% surge in trial, customer engagement and long-lasting brand loyalty. 🌟

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Last week's BevNet article feat. Scott Dicker & Joshua Schall, MBA brings some exciting new protein insights to light✨ Unsurprisingly, consumers are continuing to look for more protein in beverages and convenience categories. This includes newer demographic groups to the category such as women, the aging population, and GLP-1 users. Protein shakes aren't just for gym bros anymore!💪 Surprising to some (but not those of us at PURIS), plant protein beverages outpaced animal protein beverages for growth of 36.5% over the past year. And plant-based brands aren't just targeting plant-based consumers – they're fitting right in with all types of proteins in the natural aisle.🌱 What's next in the protein space? Come see PURIS at IFT in Chicago next month (July 15-17) and find out! At booth #2531, we'll be showcasing never-before-seen prototypes like high protein, low sugar baked goods. Did someone say plant-based milk's favorite cookie?👀 #plantbased #highprotein #plantprotein #proteintrends #nutrition #iftfirst

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Just a quick (noobie) question for all my new CPG connections. When growing your brand into an untapped market, like the US, what comes first distribution or key accounts. It’s like what came, first the chicken or the egg. Do you focus on finding a distributor that can help introduce you to stores? Or do you focus on pitching to stores and working with them to secure distribution? Am I crazy to say that what I find sometimes is some distribution won’t take you on unless you have key accounts or vice versa. #SundayThoughts

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Almost 7-years ago on December 18, 2017, The Hershey Company announced that it was purchasing Amplify Snack Brands (SkinnyPop Popcorn) for $1.6 billion in cash ($2.03 billion adjusted for inflation in 2024). Last month on May 2, 2024, Ryan Riess, Vice President Brand Strategy and Creative Development for The Hershey Company boasted: "Today, snack aisle purchases are up 6.2% versus a year ago. (Mintel, 2023, IRI 52wk ending 4/23/2023/Seurat Group HSY salty research 2023, IRI MULO+C 52wk ending 3/24/24)." Yet the very next day on May 3, 2024, The Hershey Company stated on its Form 10-Q filing: "Our Salty consumer takeaway declined 4.1% in the first quarter of 2024 and experienced a Salty market share decline of 16 basis points. Our North America Salty Snacks segment income was $38.7 million in the first quarter of 2024 compared to $46.8 million in the same period of 2023, a decrease of $8.1 million, or 17.3%. "Net sales of our North America Salty Snacks segment were $275.1 million in the first quarter of 2024 compared to $270.0 million in the same period of 2023, an increase of $5.1 million, or 1.9%." Am I the only one confused? I mean, The Hershey Company boasted that "snack aisle purchases are up 6.2% versus a year ago," while simultaneously reporting for securities law purposes that its North America Salty Snacks net sales increased just a mere +1.9%. #SkinnyPop #SaltySnacks #AmplifySnackBrands #HersheyCompany #Mintel #IRI #SeuratGroup

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Two hot topics within the current beverage alcohol industry are Gen-Z and Ready-to-Drink (RTD). According to Circana’s State of the CPG Beverage Alcohol Industry report, RTD reached $10.3 Billion in 2023. Part of that growth is due to Gen-Z members' strong preference for higher ABV offerings and unique packaging. But what are the top RTD cocktail brands among Gen-Zers according to Circana? 🔥 Buzzballz, LLC / Southern Champion 🎵 BeatBox 🍸 LIQS Cocktail Co. 👑 Crown Royal & Whiskey Cola 🍹 Monaco Cocktails 🥃 Jack Daniel’s & Coca-Cola Read more about the State of the Alcohol Industry here: https://hubs.li/Q02xggvP0 #ReadyToDrink #GenZ #BeverageAlcohol #Circana

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INCOMING VAGUE RANT/UNPOPULAR OPINION/HOT TAKE: Your Harvard BA (in subjects completely unrelated) does NOT make you an expert in CPG. Know-it-all, self-righteous "grandstanding" on LinkedIn is utterly insufferable. You *actually* know next-to-nothing in terms of the potential lifetime it takes to Master the CPG business and who even knows if that's possible, or who has done this *NOT* off the backs of human beings (all of "The -Isms") or at the expense of our planet (Industrial Revolution). Simply put: STFU if your CPG product is only about 5-6 years old. Let's see if your brand makes it to the 10-year mark. Chances are you've also probably never cleaned a toilet or folded a lick of laundry in your life. I can't stand the privilege on here sometimes.

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The US Beer industry landscape is changing fast. AB InBev's North America Normalized EBIT declined by over $1.3 B from 2022 to 2023. The volume market share decline (relative to Molson Coors Beverage Company and Constellation Brands) contributed to that EBIT decline by an amount of $400 Million. It has not helped that overall volumes between these three major players has declined by over 4%. It's a general sign of the headwinds facing the beer category as shopper and consumer preferences shift. For #ABInBev, that overall market decline cost them another $200M. A just less than 4% increase in Net Pricing contributed a +ve $560Million to the Normalized EBIT change, but was insufficient to mitigate the increased inflationary unit costs associated with Cost of Sales and the de-leveraging of other SG&A operating expenses. It will be interesting to track how these components of EBIT will change for 2024, given growth constraints associated with market share gains and price increase ceilings. Looks like some drastic OPEX cuts might be the only short-term remedy for now as AB InBev looks to rebuild brand equity and volume share. Send me a DM or write "send" in the comments section and I will forward you the document that also contains the related MVA operating breakdown for #MolsonCoors and #ConstellationBrands. It's interesting to see how and to what extent Molson Coors and Constellation Brands benefited from AB InBev's headwinds. You will also see why Constellation Brands might be the longer term winner here. #Beerindustry #beercategory #beerdistribution #Heineken #BeverageAlcohol #Asahi #Carlsberg #BostonBeer #beer #beverages #BudLight #MillerLite #CoorsLight #Corona #ModeloEspecial

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Politics aside, I think we can all agree that WAY too many direct CPG brands are reeling right now 😥 And it’s truly sad as the founders have put their🩸, sweat and tears into these businesses, which now have: 🏪 Strong retail distribution 🥫 Unique products with true-ish differentiation 😋 Great flavor profile and hedonics 🌀 Relevant and well designed branding 💲 Price points that align with target audience So why are they failing? Three major reasons that I’m seeing: 1) Lack of investor commitment:  Previous standbys in the Food/Bev VC space have not secured new funding or now have alligator-arms when reaching for more funding as they have been ‘burned’ by this category.  So financing has to be more creative and linked to specific milestones.  2) MVPs don’t work in food:  Those who come into the industry hoping to create and launch a ‘minimally viable product’, and then upgrade regularly in the future like they do in tech, are quickly realizing that is not possible.  The regulatory environment, manufacturing, and retail make that much more difficult in this category.  And if you launch a brand that doesn’t do well, consumers and retailers won’t take another look when you upgrade it! 3) Supply chain costs are crazy:  Ingredient costs are increasing weekly for certain raws (e.g. organic cacao), strength of third-party manufacturers (who have full production schedules) and their ability to flex pricing and schedule are impacting businesses, and transportation costs have increased to get products to the end consumer. I’m sure in the future we’ll look back at this period as one of creative survival, innovation, and collaboration, but right now it just sucks 👎 for so many brands and businesses out there and I feel for you. If you are one of these brands or know of one, feel free to reach out 📲 to see if the folks here at Palm Venture Studios would want to take a look.

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This article about snacking becoming more 'purposeful' I believe is spot on! It says, "We see consumers being much more purposeful and mindful in the choices that they are making." I personally agree! I think everyone is so busy that snacks are easier than meals. And snacks can be healthier than fast food and quicker! The article talks about snacking as something that used to be "naughty" which it used to be a candy bar or bag of chips - a splurge item. But now you can get convenient bags of trail mix, gluten free snacks, healthier options of chips and candy bars - so many more options that can bring joy to our busy lives! https://lnkd.in/eFevyVf4

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