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Bain & Company’s eighth annual review recognizes 97 high-growth US consumer products brands, and we're very proud to see NICKS making it second year in a row. While accounting for less than 2% of market share in the categories in which they exist, these brands captured nearly 20% of incremental category growth. As Bain puts it: These insurgent brands provide insights into where innovation and disruptive growth is happening in the sector, and they offer useful blueprints for how to achieve sustainable growth during a time when many scale incumbents have reached their limits on price increases and volumes have stagnated.

Interesting read on Bain & Company's 2024 Insurgent Brands, sharing the movers and shakers disrupting FMCG right now https://lnkd.in/gkSWDcuu

Bain & Company’s Richard Webster and his #CP teams researched the companies that delivered the greatest value to #stakeholders (not only shareholders but also consumers, customers, employees, and the planet). These winning companies took bold moves in 5 major areas: • Refocus on raw consumer needs to create superior offerings / L'Oréal • Redefine winning capabilities to scale, and radically simplify everything else / Procter & Gamble • Redesign a path to net zero externalities / Nestlé • Reimagine an operating model set for speed and entrepreneurship / The Coca-Cola Company • Reset the digital agenda to transform consumer, customer, and employee experience / The Hershey Company

Bain & Company has published our 2024 Insurgent Brands report, highlighting the set of brands driving innovation and disruptive growth in the Consumer Products sector! Shoutout to The Long Drink Company, founded by Bain alumni Mikael Taipale, recognized as one of the leading players to watch in the alcoholic beverages space. This further underscores the entrepreneurial spirit and innovative drive fostered within the Bain community! Learn more about them here: https://lnkd.in/d6zVaEtW Dive deeper into the report to uncover key trends and strategies shaping the future of consumer products: https://bit.ly/3v8bBFT #insurgentbrands #consumerproducts #marketinsights #atBain

Seven FMCG M&A Predictions For 2024 1) FMCG companies will continue to double-down on what works best/ delivers the highest ROI (mid-size - $1-5bn - growth assets on same categories in large established markets like the USA) 2) FMCG companies will continue to divest non-performing acquired assets, especially Digital & DTC ones (but not only) 3) Arbitrage opportunities on previously ‘hot’ segments (digital-first, plant-based) will start to emerge as valuations compress accelerating the number of transactions but it will realistically concern the very best assets 4) An unprecedented number of indie brands will go bankrupt (cost of capital, availability of financing, cost of marketing, exit opportunities with Strategics...) 5) We will see more (R&D) capabilities/ enablers deals aimed to leverage existing brands vs. acquiring new small brands 6) The share of deal value in Emerging Markets (EMs) will increase as the world largest FMCG companies sharpen their strategic focus in those markets, especially on F&B and in the top 10 EMs 7) Overall transactions value will accelerate driven by a sharpened focus on growth, compressed valuations & progressively lower cost of capital. We still expect deals value to remain directionally in the (high) $20s bn in 2024, so a continuous progressive bounce-back though realistically it will be one of the lowest year in value over the last 14 years To read our full 2023 M&A publication & key M&A predictions for 2024: https://lnkd.in/e-3EbFUF To get the deck, please leave your name in comment & give us few days To receive all our FMCG CEOs Insights, follow us & sign-up to our newsletter: https://lnkd.in/eR8vDpvE Exciting year ahead for M&A #cpg #fmcg #ceoinsights Frederic Fernandez & Associates Nestlé PepsiCo Unilever Procter & Gamble Church & Dwight Co., Inc. The Estée Lauder Companies Inc. The Coca-Cola Company JDE Peet's Reckitt Danone Bel Beiersdorf The HEINEKEN Company Diageo Campari Group Kenvue Sanofi Haleon Bayer

British consumer goods giant #Unilever PLC (LSE:ULVR) has finalized the sale of its non-core beauty and personal care unit, #ElidaBeauty , to US private equity firm #YellowWoodPartners. The deal, anticipated to conclude by mid-2024, encompasses iconic brands like Q-Tips, Brut, Caress, Timotei, and Tigi, contributing around $1.02 billion in revenues for 2022. The move aligns with Unilever's broader strategy under new CEO Hein Schumacher. The new CEO told shareholders that Unilever will zero its focus on 30 of its key brands, which comprise nearly 70% of it sales. Yellow Wood Partners, known for its consumer brand portfolio, previously acquired Unilever's personal care brand Suave in May. In addition to Suave, Yellow Wood’s consumer brand portfolio includes Dr. Scholl’s and Scholl International (acquired from Reckitt). More at #Proactive #ProactiveInvestors #LSE #ULVR http://ow.ly/1Itw10562xx

Seven FMCG M&A Predictions For 2024 1) FMCG companies will continue to double-down on what works best/ delivers the highest ROI (mid-size - $1-5bn - growth assets on same categories in large established markets like the USA) 2) FMCG companies will continue to divest non-performing acquired assets, especially Digital & DTC ones (but not only) 3) Arbitrage opportunities on previously ‘hot’ segments (digital-first, plant-based) will start to emerge as valuations compress accelerating the number of transactions but it will realistically concern the very best assets 4) An unprecedented number of indie brands will go bankrupt (cost of capital, availability of financing, cost of marketing, exit opportunities with Strategics...) 5) We will see more (R&D) capabilities/ enablers deals aimed to leverage existing brands vs. acquiring new small brands 6) The share of deal value in Emerging Markets (EMs) will increase as the world largest FMCG companies sharpen their strategic focus in those markets, especially on F&B and in the top 10 EMs 7) Overall transactions value will accelerate driven by a sharpened focus on growth, compressed valuations & progressively lower cost of capital. We still expect deals value to remain directionally in the (high) $20s bn in 2024, so a continuous progressive bounce-back though realistically it will be one of the lowest year in value over the last 14 years To read our full 2023 M&A publication & key M&A predictions for 2024: https://lnkd.in/e-3EbFUF To get the deck, please leave your name in comment & give us few days To receive all our FMCG CEOs Insights, follow us & sign-up to our newsletter: https://lnkd.in/eR8vDpvE Exciting year ahead for M&A #cpg #fmcg #ceoinsights Nestlé PepsiCo Unilever Procter & Gamble Church & Dwight Co., Inc. The Estée Lauder Companies Inc. The Coca-Cola Company JDE Peet's Reckitt Danone Bel Beiersdorf The HEINEKEN Company Diageo Campari Group Kenvue Sanofi Haleon Bayer

Insurgents are real and growing 10X faster than their big company competitors. Startups gunning for big opportunities are winning. According to Bain & Company these young companies captured nearly 20% of incremental category growth in 2023 vs just 6% in 2022. If I was the CEO or CMO of an incumbent (read Fortune 500 company), I'd be worried. There is growth in my categories but I may not be the one capturing the benefits of the growth. Insurgent brands had the greatest impact in the nonalcoholic beverage category capturing more than 35% of the category growth. I wonder if companies like The Coca-Cola Company pulling back from small brands accelerated this opportunity? Or does it indicate that pulling back from small brands (that typically have high gross-margins and high sales growth) was a mistake? Emerging brands with sales between $10 million and $25 million outgrew their category growth by 10 times or more. Some of the most promising in this high-growth cohort are GOODLES TruRanch Carbliss - THE PREMIUM Ready to Drink Cocktail Mike's Hot Honey Bizzy® Cold Brew and Odele Beauty Looking forward, Bain notes that innovation by large FMCG companies remains limited, insurgents are well positioned to earn an even greater share of the growth. This has been the case for the last 20 years that I have worked with insurgent brands. It's time for large companies to reimagine what partnering and investing in high-growth companies can do to drive growth. It's more External R&D or External Innovation than "CVC". #Markknows #innovation #externalR&D #externalinnovation #CVC #partnerships #growth #leadership #food #beverages #beverage #insurgents #businessmodel https://lnkd.in/e6HY-cyy

Companies are turning to premiumization strategies to deliver more value to customers – and to maintain healthy margins. But the strategy doesn’t always pay off. Innosight's Claudia Pardo, Dr. Thomas Hagmann, Eric Davis, and Walid Fawaz share three keys to success and lessons from consumer goods leaders like L'Oréal, Procter & Gamble, and Ferrero. Done right, premiumization can not only cushion the inflation effect but also foster growth by delivering enhanced value to the customer. https://lnkd.in/g2wkcRua  #premiumization #businessstrategy #valuecreation

Most investors would think that established brands are better positioned to weather tough times. However, this inflationary period has proven that even established brands are struggling. But investors should not be dismayed because there are younger, dynamic brands that are prospering. Here are some examples with their corresponding 1-year stock performance: McDonald's: -8% Wingstop: +93% 🚀 Coca-Cola: -3% Celsius: +118% 🌟 Estee Lauder: -48% e.l.f. Beauty: +73% ✨ It's not just about offering lower prices but also providing high value via products that excite consumers, making them willing to open their wallets even during an inflationary period. Read more analysis here: https://lnkd.in/gEHYBRiJ