The 8 Characteristics of Successful CPG Companies

by Fernando Labastida, ePac

February 26, 2023

The Rise of the CPG 2.0 Company, and why you should join their ranks

Whether you’re starting a new CPG company from scratch, you’re charged with reinventing a CPG firm and growing it, or you’re part of an innovative unit within a large and established CPG company, this article is for you.

We’ve identified eight characteristics CPG companies today need to succeed. But these characteristics are more than just gimmicky merchandising or marketing tactics. They’re actually the attributes of a new type of CPG company.

This new type of CPG company is quietly rising up and sweeping the market. We call it the CPG 2.0 company.

These are startup firms, mid-sized companies, and even innovative, agile divisions within large corporations, who are changing the way CPG companies do business.

What are the characteristics of CPG 2.0 companies?

This topic could require a whole book, but we’ve summarized it here for you. Here’s a brief rundown about what a CPG 2.0 company is:

1. They’re agile

CPG 2.0 companies are either small and nimble, or they’re agile divisions within larger, established CPG companies that are able to turn on a dime.

For example, they can make last minute decisions to take advantage of a new trend or holiday and quickly create packaging and a marketing campaign to reflect that.

Or they might suddenly close a deal with a national supermarket chain, and they have to get their product in stores in major cities within 6 weeks (that has happened to a number of our customer!).

2. They care for the environment

CPG 2.0 firms care for the environment. In fact, it’s one of the core tenets of their belief systems.

They implement recycling programs. They use recyclable or PCR packaging materials. Their food preparation and manufacturing processes are environmentally conscious.

3. They’re cause-based

CPG 2.0 companies have a cause that’s bigger than themselves, like our friends at Courage Worldwide Coffee whose mission is to help rescue girls from human trafficking.

Or runner’s supplement provider 6AM Run, who seek to inspire busy runners to wake up at…you guessed it….6AM to run, before the major responsibilities of the day monopolize their time.

4. They focus on community

Community is the one last, great marketing strategies left, says Mark Schaefer in his new book ‘Belonging to the Brand.

Schaefer says that instead of building community in a cynical ploy to just sell more product, companies couple their cause-based purpose with a community of like-minded true believers.

This community becomes their group of hyper-loyal customers, advocates and fellow promoters of the cause, and allows the CPG 2.0 company to build a moat around their business that no other business can compete with.

6AM Run, who we mentioned before, has a fanatical running community group on Facebook, where runners young and old post their runs, encourage each other, and ask for – and offer – running tips and advice.

5. They use healthy ingredients

CPG 2.0 companies source clean, organic minimally processed ingredients to deliver a product that’s healthy to their consumers (or for our wonderful pets).

In fact, a recent research report said the US $188 billion global organic food and beverage market in 2021 is expected to grow from 2022 to 2030 by 13% CAGR.

The reason? “…the desire for improved overall health among consumers and the awareness regarding the harmful effects of synthetic ingredients.”

Savvy CPG 2.0 companies are keeping this trend top of mind in their product formulations.

6. They’re innovative

Similar to today’s most innovative software companies, CPG 2.0 brands are innovative because they use digital tools to stay in constant contact with their market, and continuously innovate their products to satisfy their customers and the market’s needs.

Plant-based protein snack provider Ha! Snacks (think Cheetos, but healthy), leveraged its community for rebranding and flavor decisions.

CEO Justin Wiesehan recently told us: “When we rebranded, we engaged everybody. We were called Macro Snacks at first. We literally sent an email blast out with four packaging options and asked people to vote.”

They also use technology to bring innovation to the market. A UK-based microbrewery ingredients provider uses serialized QR codes to provide certificates of analysis to home-based brewers. Now with just a scan from their iPhone, these brewing enthusiasts can verify that the ingredients they’re buying are the purest and highest quality ingredients on the market.

7. CPG 2.0 companies employ just-in-time practices

To cut costs, stay nimble and agile, and protect the environment, CPG 2.0 companies source the supplies and ingredients they need on a just-in-time basis. They don’t carry loads of inventory, such as boxes and boxes of unused packaging. Just the necessary to fulfill immediate needs.

And when they need more supplies, they choose packaging vendors and other types of suppliers that can deliver on a just-in-time basis.

8. CPG 2.0 companies have hybrid business models

They’re very successful at getting their products noticed on grocery store shelves, but they’re also savvy direct-to-consumer sellers.

They might use the supermarket aisle as a way to display their sexy packaging and entice new buyers. But then they incentivize consumers through the same serialized QR code to contact them directly by offering special bonuses and exclusive products only available online.

Why should you join the ranks of CPG 2.0 companies?

The bottom line is, you can’t afford NOT to join their ranks.

Consumers are demanding more from their food, supplement and pet food suppliers, because they can.

They’re demanding environmental responsibility. They’re demanding transparency in how they source their ingredients. They want customized flavors and formulations. And they want to buy their products wherever and however they want.

If you want to succeed in today’s market, you MUST join the growing ranks of CPG 2.0 companies.

Want to learn more? Request an introduction to the ePacOne Team.

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