Clarkston’s Industry Leader, Steve Rosenstock, Referenced in CPG Specialist Story
Here is an expert from the story that originally appeared in the CPG Specialist on July 9, 2021:
With more CPG companies settling into their new post-pandemic version of normal, now’s a good inflection point for a top-to-bottom review, industry consultants say.
As it is, the pandemic has caused many CPG companies to rethink certain areas of their business from sales to branding to the corporate culture around working at home. But for many companies, a more holistic review could be in order—taking a deep dive into what’s working and what’s not, where growth opportunities lie, where cuts or improvements can be made, and how to liven up the corporate brand and culture, which tend to suffer when companies become complacent.
Don’t Focus Just on Costs
For some CPG players, the pendulum has swung too far in terms of trying to achieve efficiency, according to Steve Rosenstock, partner and consumer products practice lead at Durham, N.C.-based Clarkston Consulting.
Some CPG leaders have followed the model of Kraft Heinz, whose backer 3G Capital has regularly raised eyebrows for its cost-slashing measures. But this can go too far. Obviously, they need to focus on their cost base and they need to drive efficiency, but “there’s only so much you can squeeze from the rock. You need to drive growth through innovation,” Rosenstock says.
Some examples of CPG companies with strong growth mindsets include Constellation Brands and the Hershey Company. The latter, for instance, just completed the acquisition of Lily’s, a high-growth maker of tasty, low-sugar treats.
To read the the full article, view the story in the CPG Specialist.