April 20, 2021
Consumer Brands Association SmartBrief
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Consumer Brands: CPG demand on track for another big year
(Robert Nickelsberg/Getty Images)
A new report from the Consumer Brands Association has found consumer packaged goods demand grew by 9.4% last year and is expected to increase by up to 8.5% this year, compared to 2019. "This was the greatest test that the system could've ever experienced," said Consumer Brands President and CEO Geoff Freeman. "Our wildest imagination may not have been able to imagine the 12-month surge that we just went through."
Full Story: CNBC (4/20) 
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Conquer the search algorithm & sell more online
Winning the digital shelf requires a new type of e-commerce experience fueled by a new type of product data. Join e-commerce leaders from Salsify & Label Insight on April 29th for a live conversation on how brands can meet shoppers' evolving needs with tailored product content. Register now
Company Watch
P&G's Q1 exceeds analyst estimates
(Joe Raedle/Getty Images)
Procter & Gamble's first-quarter net sales increased 5%, surpassing analyst expectations, with its cleaning, laundry and beauty units posting the greatest sales growth. The company plans price increases for its baby- and feminine-care products and adult incontinence products to offset rising commodity prices and continue to improve its products, according to P&G Chief Operating Officer Jon Moeller.
Full Story: Reuters (4/20),  CNBC (4/20),  The Wall Street Journal (4/20) 
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PepsiCo CEO Ramon Laguarta calls the energy category "our next big space" in beverages, and the initial retail reaction to its recently launched Mtn Dew Rise line promising. "We have identified the morning occasion as an open opportunity that is not well covered by existing propositions," added Laguarta.
Full Story: Food Business News (free registration) (4/19) 
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With frozen food sales soaring due to the pandemic-related spike in at-home consumption, an Acosta study finds three factors will maintain consumer interest post-pandemic: value, variety and availability. The study also notes nearly 60% of participants opt for frozen food for dinner often or nearly all of the time, while the American Frozen Food Institute reports online sales have grown 75% in the past year.
Full Story: Food Business News (free registration) (4/19) 
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Corporate Social Responsibility
Kellogg's Kashi brand is partnering with nonprofit 1% for the Planet by pledging to allocate 1% of its annual profits to groups working to improve the environment. The brand is also launching a program this year to offset the carbon emissions it produces from the cooking and baking of its products.
Full Story: Food Business News (free registration) (4/19) 
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Advertising & Marketing
Unilever has embarked on a mission of mindful marketing allocation and has put a focus on brand safety, participating in the Facebook boycott and developing a framework with Mindshare that urges the industry to employ responsible content and data practices, said Rob Master, vice president of media and digital engagement. During the company's 100-year history, it's evolved from focusing on fiduciary responsibility into a "much more holistic kind of consumer safety, industry ecosystem environment."
Full Story: Adweek (4/16) 
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PepsiCo's digital tech accelerator, PepsiCo Labs, has targeted startups that will give its brands an edge on subscription video on demand and other emerging platforms. Mtn Dew's partnership with virtual experiences platform Green Park leverages the growing sports betting trend by enabling fan wagers on potential player shots, while vision tech provider Mirriad facilitates PepsiCo product placements in existing content.
Full Story: Marketing Dive (4/16) 
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Goodby Silverstein & Partners' "Get Outta Here" campaign for Kraft Heinz's Just Crack an Egg looks at the wariness people have about microwaving eggs, with one 15-second spot comparing a man's skepticism about the microwaveable convenience breakfast food with the disbelief surrounding the first flight from the Wright brothers. The creative, the brand's first since 2018, came out of a six-week "Brand Camp" process between GS&P and Just Crack an Egg.
Full Story: Ad Age (tiered subscription model) (4/19) 
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72andSunny created a campaign for Coca-Cola's Smartwater+ that stars Gal Gadot in a 30-second spot explaining the benefits of the bottled water. The push is running across TV, social media, digital video and out-of-home.
Full Story: Adweek (4/19) 
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Consumer Brands News
"As the world was swirling in chaos, CPG companies had to focus intensely on output because people needed their products to stay home," said Consumer Brands' President and CEO Geoff Freeman. "The 2020 economic data is the paper trail of a year when the CPG industry rose to the occasion and delivered." Read the CPG Economic Pulse: 2020 in Review.
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In the next CPG Speaks, join Dylan Lissette, president and CEO of Utz Quality Foods, and Mark Smucker, president and CEO of The J.M. Smucker Co., for a discussion on pivoting out of COVID-19 response and positioning for the future. Lissette and Smucker will share how they are adjusting company operations, evaluating and diversifying their iconic brand portfolios and adapting to new consumer trends. Register for the free session here.
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Over the last year, the CPG industry has met unprecedented demand by being unafraid to change the game. From throwing long-honed supply chain algorithms out the window to moving to 24/7 production, this industry has been nimble, creative and essential to pandemic response -- and it will continue to be there for the consumers who rely on it, no matter what's around the bend.
Geoff Freeman, president and CEO, Consumer Brands Association
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April prepares her green traffic light and the world thinks Go.
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