How to Build Successful CPG Brands

Most brands are playing the wrong game. They’re moving the Queen. They should be moving all of the pieces on the board. Let me explain. Marketing-led growth gets all the attention. It’s sexy. It’s visible. Founders obsess over it. But marketing is just one piece. A powerful piece — but still one. Business engineering? It moves all the pieces in symphonic coherence, And wins the game. When I advise better-for-you CPG brands, this is the shift I push for. Most teams pour everything into: – ad creatives – influencer UGC – CRO – new channels Good tactics. But they’ll only take you so far. Here’s what separates the breakout brands: They engineer growth at the business level. They move: – pricing – packaging – cash flow – operations – channel strategy – product architecture They see the full P&L → and use it. Let’s get specific. Example 1️⃣ → Gateway SKU Engineering: A Clean supplements brand. $60/month subscription = Hero SKU. Too much friction. First purchase wasn’t converting. The team launched a $15 trial SKU. Low-risk. Easy buy-in. Result? Trial → subscription conversion jumped 4x. CAC down 35%. LTV up. No ad change required. Business lever. Example 2️⃣ → Cash Conversion Engineering Frozen functional food brand. Growing fast, but cash-strapped. They restructured terms with co-packers. Negotiated faster pay from wholesalers. Cash cycle dropped: 120 → 45 days. Millions unlocked. That cash funded more growth. No new ad creatives needed. Business lever. Example 3️⃣ → Operational Engineering Gut health beverage brand. Local retail only. Wanted national. Cold chain shipping was blocking DTC. Their team reformulated + repackaged → shelf-stable. Suddenly: – DTC viable – National retail opened – Margins improved Game changed. Business lever. ____________ This is why I believe: Business-engineered growth > marketing-led growth. ♛ Marketing moves the Queen. ♗♖♕♔♘♙ Business engineering moves all of the pieces on the board. If you want to build a moat → If you want to scale with durability → You need to think beyond ads and creatives. ☑️ You need to think like a business engineer. Curious → are you moving just the Queen? Or are you moving all of the pieces on the board? ___________________________________________ 🔰 Better-for-you brands = better health, longer lives. 👉 Follow me, Kunle Campbell, and let’s scale impact together.

The 7 brutal habits of highly successful CPG founders (Spoiler: It’s not what the business books tell you.) Over 20 years in CPG, I’ve seen what separates the walking dead from the winners. The difference? They master the unglamorous stuff. 1) They model trade spend and deductions first, revenue second Most founders celebrate the $50K PO. Winners plan for the $5K–$10K+ that will be netted out via trade spend, fees, and deductions, and price and budget accordingly. They build it into the P&L from day one. 2) They kill their darlings before the market does That SKU you love but isn’t moving? They set a clear velocity hurdle and make a call within weeks, not quarters... rework it or retire it. No emotion. Just math. 3) They visit stores more than they visit Instagram Weekly store walks. Real conversations with staff. Watching shoppers ignore their product. They fix what they see: mispriced tags, missing facings, empty pegs, dead displays. The truth lives on the shelf, not in your feed. 4) They say no to big retailers (at first) They don’t chase a national rollout before they own 10 local stores. Deep before wide. Velocity before vanity. Big accounts come with expectations (promos, fees, flawless execution) that can drain cash and get you delisted if you’re not ready. 5) They treat cash like oxygen Not “runway until next raise,” but “days until we suffocate.” They know their cash conversion cycle and burn to the penny. Daily. 6) They systematize the boring stuff early Ops. Inventory. Trade & deduction tracking. They install lightweight SOPs and tools when they’re small, so growth doesn’t break them later. Their future self says thanks. 7) They stay paranoid when winning Good velocity? They ask what’s about to break. Growing fast? They stress‑test the P&L. Success makes them more careful, not less. Here’s the uncomfortable truth: - None of this is sexy. - None of this makes good LinkedIn content. - None of this gets you featured in Forbes. But it keeps you alive. My skincare brand had the mission. The clean ingredients. The customer testimonials that made me cry. What I didn’t have? These 7 habits. It cost me everything. The founders who last aren’t the smartest or most funded. They’re the ones who do the uncomfortable work before it’s required. Every. Single. Day. 👇 Which habit hits closest to home, or which one saved your brand? ♻️ Repost if you know a founder who needs this reality check.

Consumer Brand Marketing Leaders, Lately, I’ve had the chance to work with a different sector of companies: PE-backed, lower middle market, more B2B...and always growth-minded. And it’s brought a new lens and sharper focus to something I learned long ago: 👉 Brand isn’t window dressing or a style guide. It’s a Revenue lever. It drives conversion. It supports pricing. It builds loyalty. 𝘼𝙣𝙙 𝙞𝙩 𝙪𝙣𝙡𝙤𝙘𝙠𝙨 𝙜𝙧𝙤𝙬𝙩𝙝. In my time leading and expanding brands in CPG and PE-backed companies, we talked plenty about positioning and differentiation—but we also brought it down to earth.🌍 We nurtured our Brands as the 𝙘𝙧𝙞𝙩𝙞𝙘𝙖𝙡 𝙙𝙧𝙞𝙫𝙚𝙧𝙨 𝙤𝙛 𝙛𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙤𝙪𝙩𝙘𝙤𝙢𝙚𝙨 💰 they are: ✅ Higher conversion rates ✅ Greater pricing power ✅ Stronger consumer stickiness ✅ Permission to stretch into new segments And to add some light industry validation: 📊 McKinsey: Strong brands retain customers 𝟯𝟬–𝟱𝟬% 𝗹𝗼𝗻𝗴𝗲𝗿 📊 Bain: Buyers pay 𝟭𝟬–𝟮𝟬% 𝗺𝗼𝗿𝗲 when brand signals trust and reduced risk 📊 WARC/IPA: Brand-led strategies drive 𝘂𝗽 𝘁𝗼 𝟵𝟬% 𝗵𝗶𝗴𝗵𝗲𝗿 𝗥𝗢𝗜 over time For PE-backed or fast-growing businesses under pressure to deliver revenue now AND create long-term value, 𝘉𝘳𝘢𝘯𝘥 𝘴𝘩𝘰𝘶𝘭𝘥 𝘣𝘦 𝘱𝘢𝘳𝘵 𝘰𝘧 𝘵𝘩𝘦 𝘰𝘱𝘦𝘳𝘢𝘵𝘪𝘯𝘨 𝘮𝘰𝘥𝘦𝘭, 𝘯𝘰𝘵 𝘫𝘶𝘴𝘵 𝘵𝘩𝘦 𝘮𝘢𝘳𝘬𝘦𝘵𝘪𝘯𝘨 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘺. These principles apply whether you're selling cereal, makeup brushes, or sealing equipment. What matters most is 𝙝𝙤𝙬 𝙘𝙡𝙚𝙖𝙧𝙡𝙮 𝙮𝙤𝙪 𝙘𝙖𝙣 𝙡𝙞𝙣𝙠 𝙗𝙧𝙖𝙣𝙙 𝙩𝙤 𝙧𝙚𝙨𝙪𝙡𝙩𝙨. I’ll be sharing more in the coming weeks...in the meantime, if you’ve had success connecting Brand to commercial performance—I’d love to hear about it! --- 💡 I’m Elizabeth, and I help CPG and PE-backed brands harness insight, positioning, and brand strategy to drive relevance and growth. Let’s connect if you’re thinking about brand stretch, the shifting consumer landscape, or how to turn strategy into impact.

So, you want to start a CPG brand. Here is the single most important piece of advice I can offer. Start with a product that you can initially sell online first. So it's probably shelf stable, or in selective cases, a long shelf-life fresh product. This advice is critical because it will reduce the amount of capital you need to raise to grow your brand. It will also give you the chance to build a profitable, successful business before you go into your first retailer. The first CPG F&B company I ever heard of reaching $50 million before going into stores was Nutpods, about 7-8 years ago. Now, we probably see 2-3 of these per month – sizeable, profitable ecommerce brands interested in moving into retail. We love to partner with them, because Manna Tree has a strong track record of helping brands grow in retail. Why is this advice so critically important? When a brand is sold on the shelves of US grocery stores, they are usually distributed through either UNFI or Kehe. Each point in the supply chain needs to mark-up the product to earn a profit margin. The net effect of all these profit levels means that the price on shelf is going to be much higher than your cost. The general rule of thumb is the price on shelf is going to be about 4X your cost. Depending on the category competitiveness, this will limit your own profit margins while you build brand awareness. But the costs don't end there for selling in grocery.  To get on shelf with most retailers in the US, you will pay a “free fill” fee. This is typically a one-time fee the retailer charges for their shelf space and is about one case of your product. Next, you will need to promote your product to encourage consumers to try it. During the early years that will average 20% to 30% of your gross revenue. Over time will decrease to a more normal 15% of revenue, but not until you have built decent brand awareness. The net effect of all these costs is that the typical CPG company selling in stores does not hit profitability until they reach the $40 million to $50 million range. And that assumes you have at least 40% gross margins. For lower margins, it will take even longer. During those unprofitable years, you will need to raise equity capital every 12-24 months to finance your growth and losses. Conversely, if you sell from your website there will is no middleman. You can invest more into marketing to drive traffic and sales. Most DTC brands will spend 30% to 60% of revenues to drive more sales. That will fall over time but rarely drops below 25% as DTC requires more marketing. Amazon is more expensive but a critical ecommerce channel because so many Americans are Prime members. There you will have a bit lower gross margin (to account for Amazon fees), and similar marketing costs. So, your contribution margins will be lower than DTC, but still better than selling in stores. My advice - build a great ecommerce brand first, then go into stores on your terms. #cpg #brands #startups

I’ve looked at over 200 small CPG and eComm brand P&Ls over the past year. Here are my observations and advice to founders… 1.) Brands that have focused on improving gross margins and cash flow are doing well in this recessionary and higher interest rate environment. 2.) Brands that are choiceful about their mix and channel strategy are doing better than those that have too many skus (that don’t perform) and enter too many retailers before your awareness justifies it. I’ve seen a lot of brands pay slotting fees to retail only to pay exit fees a year later. I’ve also seen the long tail of SKUs be a distraction and burden on cash flow. 3.) You don’t need to overspend on consultants and expensive advertising and design agencies early on. It’s a big expense and often doesn’t payout until brands are much larger. Stay creative, lean, and invest that money in awareness-generating advertising and product trial. 4.) Don’t underestimate the importance of forecasting and managing supply chain and inventory. Brands that go in and out of stock and pay for rush shipping or air shipping are increasing costs and leaving money on the table. This isn’t the sexy part of Brand Management, but it makes a big difference. 5.) Brands with strong gross margins and EBITDA are getting good valuations. Brands losing money or operating at break-even are getting low valuations and struggling to raise “growth capital.” There are exceptions for brands that have a solid path to profitability by fixing 1-2 things. Fundamentals still matter. Founders and brand leaders - Are there any things you are doing exceptionally well or struggling with this year? Leave a comment to join the discussion and help everyone learn and grow. Give me a follow if you find my CPG content helpful. #brands #ecommerce #cpg

Let's talk about a BIG misconception in the CPG world... For years, I thought getting into Whole Foods, Target, or any major retailer was all about: - Hiring a fancy broker - Securing a big distributor - Having the "right" connections Turns out? I was dead wrong. After working with 100+ brands, here's what I've learned REALLY matters: 📣 A killer pitch. It's not just about your product. It's about how you tell your story. ⏳ Time in market. Buyers want to see a track record, even if it's just in local markets or DTC. 👥 A loyal community. Do people love your brand enough to ask for it by name? ✨ True differentiation. "Better for you" isn't enough anymore. 💰 Cash reserves. Do you have enough cash to support your growth without going under? The reality? None of these are quick fixes. They all take time, effort, and strategic planning. But here's why this is GOOD news: It levels the playing field. You don't need millions in funding or a rolodex full of connections. You just need a solid foundation—and a willingness to put in the work.

I wasted years as a Founder in CPG chasing the wrong milestones. Doors, dollars, and design. None of them mattered as much as I thought. I thought winning in CPG meant: – getting into Whole Foods – landing investors – and showing up at Expo with a booth that looked legit. I was wrong - all great but not the right measuring stick. 3 harsh truths I learned the hard way: 1) Retail doesn’t fix product-market fit. I used to think more doors = more validation. Then I realized velocity tells the real story. If the product isn’t pulling, distribution just scales the problem. 2) Funding doesn’t fix fundamentals. Every founder believes a cash infusion will solve their pain. But if you don’t have pricing discipline, supply chain reliability, or a margin that works — you’re just fueling a fire you can’t control. 3) Brand doesn’t beat execution. You can have the best story, packaging, and social media in the world. If you can’t ship on time, hit margin, and communicate clearly — it all collapses. None of these are fun to learn. But they separate the founders who build businesses from the ones who just build buzz. You don’t need to be perfect — just brutally honest with yourself. I may be wrong. But I doubt it.

In the past 14 months, I've worked with 12 different brands in the Food, Bev and Supplements category (pre-revenue to 9 figs). Here's my honest advice for anyone thinking of entering this space in 2025+: 1) It is not a part-time job; even if you hire people to 'run it' for you, you still need to lean in hard as the figurehead of the brand. 2) It's never been easier to launch a product or brand; it also means it's never been easier to be ignored. Don't count on product features or ingredients to be your silver bullet. That's no longer enough. You need to drive AIDA (attention, interest, desire, action). You build that with sweat equity/talent, or prepare to spend to buy it. Or as Will Nitze likes to say, build your defensible moat. 4) If you are just starting out, please please please don't blow your entire budget on pre-launch activities (ie: inventory, branding, site build, etc.). Most of that will likely change based on market feedback. Upfront research may help, but nothing is like real customer feedback. 5) Have at least 6 months of runway (or longer) to promote your product after. Budget $5-7K a month to start - and more if you need people to run it for you. Caveat: if you are great at driving awareness and exposure pre-launch, like Jay Williams or Mark A. Samuel, this cost can come down to start. 6) Be mentally prepared to stomach the ride. It will test every aspect of your resilience, ego, and intellect. It’s not for the faint of heart, but having the right mindset and preparation in place makes a big difference.   CPG is and always will be a tough space. Those who are in it like the pressure and don’t (usually) do it for the money ( tech and finance are better for that). CGP folks are obsessed with people, love to build, and problem solve (we get to practice that a lot 💆♀️). Here are some heavy hitters I learned (and continue to learn) from: Niraj Dawar - My brand professor at Uni, who first exposed me to this world Graham Robertson - I go to his book when I lose my way Mark Ritson - International brand marketing master Mats Georgson, Ph.D. - If you still don't get it, grandma will beat it into you ✌ Follow for more CPG tales, big and small.  DM if you want to know if you are paying too much for marketing things

Thinking of starting a business? Here’s where I’d begin, before spending a single dollar: 1️⃣ 𝗧𝗮𝗹𝗸 𝘁𝗼 𝗿𝗲𝗮𝗹 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀. Not your friends or other founders. The people who would actually pay. What frustrates them? What are they already trying? What would make them pull out a credit card? 2️⃣ 𝗟𝗲𝗮𝗿𝗻 𝘁𝗵𝗲 𝗴𝗮𝗺𝗲. Read the trade pubs (and substacks). Listen to podcasts. Watch founders’ BTS. For better or worse, you can now learn a lot about an industry from watching TikToks. (My fav CPG nuggets: Business of Drinks, Express Checkout, Snaxshot, Ramping your Brand by Dr. James Richardson, Grow to Market) 3️⃣ 𝗧𝗲𝘀𝘁 𝘁𝗵𝗲 𝗽𝗿𝗼𝗯𝗹𝗲𝗺, 𝗻𝗼𝘁 𝘁𝗵𝗲 𝗹𝗼𝗴𝗼. What’s the fastest, cheapest way to see if this matters? Maybe it’s a landing page and a few targeted ads. Maybe it’s Reddit threads. Maybe it’s DMing 50 strangers. Before you build it, ask: Will anyone pay for this? 4️⃣ 𝗚𝗲𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗿𝗼𝗼𝗺. Warm intros beat cold decks. Founder groups accelerate learning. Mentors compress years into minutes. (If you’re in CPG: Myca Collective, Startup CPG, Naturally Network !!) 5️⃣ 𝗕𝘂𝗶𝗹𝗱 𝘆𝗼𝘂𝗿 𝗻𝗮𝗺𝗲 𝘄𝗵𝗶𝗹𝗲 𝘆𝗼𝘂 𝗯𝘂𝗶𝗹𝗱 𝘆𝗼𝘂𝗿 𝗶𝗱𝗲𝗮. Credibility compounds. Help out at adjacent companies. Do an externship. Write. Teach. Share. Ideas pivot, but reputations stick. Anything you’d add?

Three hard-earned, non-traditional lessons from scaling a CPG brand: 1/ Stop bragging about how many stores you’re in Store count is a vanity metric. Velocity is the scoreboard. If you’re in 1,000 stores doing 1 unit per week, you don’t have a distribution win. You have a slow death. Early on, I chased doors. It cost us. Focus on winning one store at a time. Crush velocity. Make buyers reorder because they have to — not because you pitched them well. Distribution follows performance. 2/ This industry is smaller than you think That person you trashed at a tradeshow? Two years later they might be the buyer reviewing your line sheet. This business is tight. Word travels. Take the high road. Always. Your reputation compounds — for you or against you. 3/ There’s a fine line between genius and insanity When we launched in a pouch, veterans told me it would never work. Now people call it brilliant. The difference? We figured out how to manufacture it at scale. If your “innovation” only works in a commercial kitchen but collapses in real production… that’s not genius. That’s a hobby. Ignore the noise. But pressure-test your idea against scale early. Can it run on real equipment? Can it hit margin? Can it survive 100,000 units a day? Are you reliant on only 1 co-packer? If not, fix that before you fall in love with it. #cpg #smallbusiness #entrepreneurship