Executives and business owners of mid-sized CPG companies face a unique set of challenges that differ from those of startups or larger enterprises.
These challenges stem from the need to balance growth, operations, and innovation while competing with both larger firms and more agile startups.
Here are the top ten challenges mid-sized consumer goods companies face, real-world examples of businesses that have successfully overcome these obstacles, and expanded solutions explaining how to implement these strategies in your own organisation.
Executive Summary
For those of you who tend to skim-read and only look at the bottom of an article to read the conclusions, here’s one better, an Executive Summary!
All companies struggle at times and mid-sized businesses have their own specific problems to solve without the resources of the larger organisations. The examples in this article show it is not only possible but sometimes in just a year or two. Check out the issue you’re struggling with and jump to the example for a quick solution.
- Prose: Improved employee retention by 20% over 2 years.
- Chobani: Achieved double-digit revenue growth annually over 5 years.
- RXBAR: Improved cash flow by 15% in 18 months.
- KIND Snacks: Grew DTC sales by 25% in 3 years.
- Beyond Meat: Became a leading player in the plant-based market over 5 years.
- Gatorade: Increased consumer engagement and repeat purchases over 2 years.
- Seventh Generation: Avoided fines and strengthened market position in 3 years.
- Clif Bar: Successfully transitioned key executives over 5 years.
- Mondelez International: Reduced waste by 15% in 3 years.
- Nestlé: Pivoted towards health and wellness trends over 5 years.
Mid-sized CPG companies face a unique set of challenges as they navigate the complexities of growth, supply chain management, consumer trends, and competition from larger and smaller brands.
Here are the top ten challenges faced by CPG companies, supported by statistics and real-world examples, along with actionable solutions tailored to this industry.
1. Talent Acquisition and Retention in CPG
Attracting and retaining talent is particularly challenging in the CPG industry due to high turnover in manufacturing, distribution, and sales roles, coupled with increased competition for digital talent needed for e-commerce and data-driven marketing.
A 2023 report by Deloitte found that 66% of CPG executives identify talent acquisition and retention as a key business challenge. Additionally, the turnover rate for manufacturing jobs in the U.S. stood at 29% in 2022, further exacerbating the issue.
The solution to this particular challenge is to build a strong employer brand and invest in workforce development.
To attract and retain the right talent, mid-sized CPG companies need to focus on building their employer brand while investing in continuous training programs. Here’s how:
- Develop Your Employer Brand:
- Promote your company’s purpose and values, particularly around sustainability and innovation, to attract younger talent interested in making a positive impact.
- Utilize digital platforms like LinkedIn and Glassdoor to share success stories and showcase the culture.
- Invest in Training and Upskilling:
- Provide ongoing
