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   State of the CPG       Industry Report   

Happy Monday , 

It's here! Last week I released the State of the CPG Industry Report, which surveyed 150 CPG founders. The data is insightful to see how companies performed in 2022 and their outlook on 2023. Today I want to dive into some of the most interesting data.

  New Business Trends

Last week I shared a chart showing that 19% of founders who started in 2020 or after have now reached over $1 million and a founder responded:

• "Wow, super interesting, Jordan! I'm actually shocked that so many businesses starting in 2020 are over $1 million. And the trade spend amounts.... Just WOW. Maybe that's why they're at $1m+!"

So I dived into the numbers to see. Turns out that 100% of those companies had trade spend under 30%, which is the industry average. But that begged the question, what did the rest of their business look like?For those companies $1+ million, 82% sold primarily in grocery stores, and 72% sold in 1000+ doors.

  E-Commerce Trends 

I love having this data at my fingertips. During one of our Founders Circles, a person asked,

"what should I expect for customer repeat rates?"

So I pulled up our chart:

Our respondents shared that the most common DTC repeat rate is 21-30%. Now they have a great benchmark to shoot for.

Another founder asked, what B2C Marketplaces should I focus on? The number 1 best-performing marketplace was Faire by far. The other marketplaces fell far below.

  Investment Trends

We all know that starting a business is expensive, but just how much money does it take? 21% of founders have invested over $200k in their business. 

So how are these companies performing? 47% of companies with sales over $1 million have done so while self-funding or with partial debt. Out of those, 66% have invested over $200k of their own funds to make it happen.

As seen above, running a business can be expensive, and this leads to founders taking on outside investment to bring their idea to life. 57% of total companies have raised money from investors, and of those who raised, 58% have raised over $250k.

  2023 Outlook

Founders are feeling optimistic about their business this year, with 44% saying they're slightly optimistic, while 33% are very optimistic. That's a total of 77% of the founders feeling positive.

That doesn't mean business is going to be easy. Founders listed a whole range of problems they were concerned with this year, the top ones being growing their retail and e-commerce sales along with reaching profitability.

Want more? Download our full 2023 State of the CPG Industry Report Here: 

WEEKLY UPDATES

   RE-ORDERS MADE EASY   

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   A DIFFERENT APPROACH       TO BUSINESS FINANCE    

Have you ever joined an event, not knowing what to expect but been blown away? That's what happened when I participated in Keith Kohler's Making the Numbers Work For You Retreat. We tend to think about finance as numbers and spreadsheets, but I realized our relationship to money goes much much deeper, often to our childhoods. Money is an extremely emotional topic, tied to our very sense of survival and success.Watch my full review hereFinancing for 2023 is one of the biggest challenges for CPG brands according to early data from our State of the CPG Industry Survey. That's why I partnered with Keith Kohler to help every founder in our Foodbevy community create a 2-3 year financing strategy including debt, equity, and alternative investments. A number of Foodbevy community brands have taken advantage of this call, so don't delay.REQUEST AN INTRODUCTION TO KEITH

   INCREASE VELOCITY AND       REDUCE CHARGEBACKS    

Are you growing in retail but losing a grasp on what’s happening with your business?I’ve found that once you surpass about 100 stores it becomes really challenging to understand what’s happening at each one. Here’s how to use a data platform to better understand velocity and optimize your best and worst-performing stores:Read the article

   REMASTER YOUR DIGITAL       MARKETING STRATEGY   

Are you still struggling with your digital marketing strategy for 2023? It feels like we're all reeling in the aftermath of the iOS changes and there's no clear way forward. If you need help, talk with Andy. He's a master of Google Ads, Data Tracking and Analytics, and digital marketing strategies.Book a free call with Andy with PPC Pitbulls to get:

• Clarity on how you can use paid ads and email marketing to build more authentic customer relationships and sales online

• Actionable insights and strategies that you can apply to your digital marketing TODAY

• Your one best next step to help you achieve your unique goals ecommerce goals

   CFO SUPPORT       FOR EMERGING BRANDS  

Looking to get a hold of your finances but can't afford a CFO?myPocketCFO is building a digital CFO for emerging CPG brands. Alice built the service to support accounting, analytics, reports, forecasts, integrated financing, and capital options.Trusted by:- B.T.R Bar- Nemi- Twrl M!lk Tea- KindrootTry out their financial services for just $99 for 3 months (a Foodbevy Special), then just $199/month after. Click here for an introduction.

STARTUP TO SCALE PODCAST

90. How To Know If You're Ready for Paid Ads

Have you tried running Google Ads and seen them as a complete waste of money? Let’s face it, running paid ads is challenging, especially for CPG brands. How do you know if you’re even ready for paid ads and what should you expect? Join me for a conversation with Andy Janaitis, founder of PPC Pitbulls as we break down: What it takes to be successful running Google Ads You minimal budget spend How to setup campaigns What Return on Adspend you can expectGet a free PPC Assessment for your brand here: ppcpitbulls.com/assessment

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