Ray Dudenhoeffer

Diageo doubles down on non-alcoholic spirits with the acquisition of Ritual Zero Proof & now owns three of the five world's largest non-alcoholic spirit brands Ritual Zero Proof was founded in 2019, and became the #1 non-alcoholic spirits player in the US after joining Diageo’s accelerator program in 2020. Five reasons why this deal makes sense: 1) Fast growing: The US non-alcoholic spirits has been the fastest growing category with +31% L5Y CAGR. 2) Incremental: 94% of non-alc buyers in the US also purchase alcoholic beverages, spending on avg $292 more than households exclusively purchasing alcohol demonstrating the incrementality of the category to beverage alcohol. 3) High Right-to-Win: Ritual is already a #1 non-alcoholic spirits player in the US, with a strong market position and tailwinds 4) Synergistic: being a #1 player globally in both alcoholic and non-alc spirits Diageo is well positioned to build on Ritual’s current success and scale it up further leveraging its GTM muscle and category expertise 5) Close to the Core: being a part of Diageo’s accelerator (Distill Ventures) since 2020, Ritual already knows what it takes to make cooperation with a spirits giant successful, limiting risks of integration challenges Exciting times for Diageo 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world's largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (eCommerce, DTC, and eB2B) and M&A. 14 out of the world's 20 largest FMCG companies are repeat Clients 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲, 𝗰𝗳. 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗙𝗠𝗖𝗚 𝗠&𝗔 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗯𝗲𝗹𝗼𝘄: https://lnkd.in/efD5RNWX 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #fmcg #cpg #mergersandacquisitions https://lnkd.in/dXAZQ242 Pernod Ricard The HEINEKEN Company AB InBev Carlsberg Group Campari Group William Grant & Sons The Coca-Cola Company PepsiCo

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Great time with Elanie and Kay from the Renegade Nutrition Podcast! Their content is always so timely related to changes in the science of nutrition, it's impact on our wellness, and how we can all be better at 'biohacking'. We discussed the importance of polyphenols in the diet for longevity, data from blue zones, and Goode Health. Give it a listen (if you have an hour or listen at 1.75x speed) and follow Renegade!

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The Ready-to-Drink (RTD) alcohol market is witnessing explosive growth, fueled by a shift in consumer preferences towards convenience and premiumization. Modern consumers, particularly millennials and Gen Z, are embracing these easy-to-serve options that offer quality and variety without the need for bartending skills. The surge is also supported by innovative flavors and healthier choices, such as low-calorie and organic options.

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An accurate take on the evolution of consumers and brand building strategies… The acceleration of FMCG/CPG startups is definitely changing the landscape and the Legacy brands will be facing a ‘change or die’ juncture! #FMCG #CPG #Consumer #Brand #Homegrown #Change

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Solid set of recommendations.

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The recent Bacardi Cocktail Trends Report highlights a fascinating shift toward AI and innovation, as consumers move beyond generic cocktails to seek more nuanced and personalized drinking experiences. While the cocktail world has been buzzing about AI-driven recommendations, craft beer has been pioneering this personalization philosophy for years. Our approach has always been about creating tailored experiences, small-batch brews that use quality ingredients, unique flavour profiles that reflect regional character, and a commitment to brewing that goes beyond mass production. Breweries have been creating personalized experiences for consumers long before AI entered the conversation through experimental brewing, collaborative community tastings, and a deep commitment to understanding local palates. What's truly exciting is how technology might complement, not replace, the artistry of brewing. Much like bartenders bring an irreplaceable human touch to cocktail creation, our brewmasters bring decades of expertise, intuition, and passion to every batch. AI might help us understand preferences, but it can't capture the soul of a perfectly crafted beer, the subtle notes, the ingredients, the stories behind each brew. The premiumization trend also resonates deeply with craft brewing. Consumers are increasingly willing to pay more for quality, for authenticity, for experiences that go beyond consuming a beverage. They want to understand the brewing process, meet the brewers, and feel connected to the beer in their glass. At RED RHINO CRAFT BREWERY AND INSPIRED KITCHEN, we see technology as a tool for connection, not replacement. Our kegging expansion is about bringing our craft directly to more people, about creating moments of shared experience. Whether it's through AI-assisted recommendations or traditional word-of-mouth, we're committed to introducing more people to the fantastic craft beer. The future of beer is about creating experiences that are deeply local, incredibly personal, and always evolving. 

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Beverage alcohol consumption has undergone significant changes in recent years, influenced heavily by the pandemic and evolving preferences of younger consumers aged 21 and older. I joined Joan Holleran Driggs for an episode of Circana’s Growth Insights podcast to explore these shifts and offer insights into what we can expect for 2024 and beyond. Here are the key takeaways: 🍺 Traditionally, adults aged 21+ started with beer or wine. Now, many young adults are beginning with ready-to-drink (RTD) beverages, particularly spirits-based options. 📉 Despite a plethora of choices, overall beverage alcohol consumption is softening across generations. However, premium beverages are still experiencing growth. 🥤 The appeal of RTD beverage alcohol among younger consumers is largely due to innovative packaging, including on-the-go options like ball form, slim cans, and aseptic packaging. 🥃 Whiskey, tequila, spirits-based RTDs, and imported beer from Mexico continue to drive the beverage alcohol market. Listen to the full episode here: https://lnkd.in/gqRdf9Xd #Circana #BeverageAlcohol #RTD #GenerationalTrends #PremiumBeverages #CircanaGrowthInsights

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Everyone in the the emerging CPG business should pay close attention to the aftermath of the Hollywood writers strike. We’ll all look back on this decades from now as the first major battle in the “AI wars”. The writers won this battle, and held back the “uber-ization” of their industry, for now. Any founder of a new CPG brand is in a similar position to these writers. As an innovation brand, you are taking on risk and doing the hard work of creating something from nothing just like they do. In the same way Hollywood studios can theoretically use generative AI to write stories and screenplays which fit Netflix’s algorithm that same AI could generate CPG products which sell at retail. Imagine a future where Big CPG can just create innovative new brand concepts on their own using AI, and hire gig worker “founders” to run them. It isn’t far fetched, when you consider that hotel chains like Marriott and Hilton have sub brands of faux “independent” hotels all over the world already. PepsiCo could for example launch 30 early stage startups per year in snacks and beverage, with the goal of 2 of them developing into the next Siete. None of this is set in stone. The future is unwritten. I’m always going to be on “team human”. Pod Foods #innovation #AI https://lnkd.in/efcz7FD9

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When Consumers Pull Back, Only brands with high perceived value earn the right not to be traded down. This WSJ article (may be paywalled) made me reflect on how food companies adjust to consumer feedback. - Consumers are pulling back in the U.S. and China, indicating a slowdown in spending. - Restaurant chains and food manufacturers are responding to consumer dissatisfaction with high prices by offering deals and introducing new products. - Companies like Domino's Pizza are raising prices at a slower pace and implementing more discounts to attract customers back to their brands. Profit Margins Remain Strong for Food Industry: - Major restaurant chains and food manufacturers have seen profits soar, with some reaching or surpassing 2019 levels. - Gross margins for many food makers are at or near prepandemic levels, indicating financial stability. Economic Growth Boosts Food Company Earnings: - Food companies have enjoyed record quarterly profits, aligning with economic growth trends. - Efforts to become more efficient and scale back pandemic-era measures have contributed to increased profits. Consumer Response to Pricing Strategies: - Consumer sentiment on food prices is mixed, with concerns about overcharging and shrinking product sizes. - While some consumers are cutting back on dining out, others are adjusting to higher prices and looking for value deals. Promotions and Discounts to Drive Sales: - Companies like McDonald's and Starbucks are launching promotional offers to attract customers back and improve sales volumes. - Food makers like Mondelez and General Mills are lowering prices, offering discounts, and enhancing product taste to drive consumer interest. Challenges in Winning Back Consumer Trust: - Executives acknowledge the challenge of winning consumers back post-inflation, requiring sustained efforts and investments. - The slow pace of consumer trust rebuilding highlights the complexity of addressing pricing concerns and ensuring affordability. Focus on Value and Affordability: - Restaurants are emphasizing value meals and affordable options to retain and attract customers. - Food manufacturers are reducing prices, offering discounts, and improving product quality to maintain competitiveness. Future Strategies and Consumer Engagement: - Companies anticipate a gradual process in winning back consumer trust post-inflation and emphasize the need for sustained investments. - Enhanced promotions, discounts, and product improvements aim to engage consumers and drive sales growth. Hiring Slowdown Fuels Bets on Rate Cut: - A hiring slowdown is fueling expectations of a larger rate cut by the Federal Reserve. - This development reflects concerns about the economic outlook and the potential need for monetary policy adjustments. I write about training marketers so that CMOs have a focused team to build profitable brands. Get a copy of my BrandTips® newsletter. See more in the comments. #marketing #branding #management #mentoring

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US spirits consumption has declined, with volume sales shrinking by 3% in the first seven months of the year compared to the previous year, as higher prices deter consumers. Vodka, rum, and Scotch whisky were the worst performers, with vodka sales down 3.8% and Scotch whisky by 5.8%. The spirits sector had previously enjoyed steady growth, peaking during the pandemic before falling back. Analysts are debating whether this decline is cyclical or structural. Some point to factors like the popularity of GLP-1 weight-loss drugs, Gen Z’s lower alcohol consumption, and marijuana legalisation as long-term challenges. However, others suggest the current weakness is primarily cyclical, driven by destocking and competition from the growing “ready-to-drink” (RTD) category, which saw an 11% rise in spirit-based RTD sales. Spirits companies such as Pernod Ricard, Diageo, and Brown-Forman have seen their share prices drop, with inflationary pressures and destocking weighing on revenues. Despite the current challenges, Diageo’s CEO remains optimistic about the industry’s long-term fundamentals.

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In today’s fast-paced world of tech and shifting shopper preferences, anticipating and meeting their needs requires more than just a wide product selection that covers everything shoppers might want, made available both in-store and online.   Recently, PepsiCo and our partners brought this to life through an advantaged beverage assortment strategy to deliver on shopper needs and drive sales for one of our retailers. The teams used data and insights to understand what shoppers were buying both inside and outside of the store. Stores were then clustered by shopper similarities, all while being practical, and delivering a more tailored assortment.    Discover how PepsiCo is putting #Phygital strategies like Anticipatory Assortment into action with our Beverage brands in our latest #pepviz article. Read more HERE: https://bit.ly/pep_assort   Kate Garner Ellen Webb Erin Ness Cathey Ryan Sexton Shannon Amundson Christopher Yemma Valeria Rivas PepsiCo Industry Insiders

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Why do Duopolies tend to dominate in so many aspects of modern business and what does this mean for emerging CPG? The news last week was that The Walt Disney Company and HBO are teaming up to offer a massive streaming bundle to complete with Netflix. It seems like a very predictable cycle unfolded here…After a few years of disruptive innovation, investors started to lose patience with negative EBITDA, which results in waves of consolidation until we have a De Facto Duopoly in streaming media. Nilesh Sharma wrote an interesting article on how this is common across many industries(link in comments)…there are so many examples: Coke/Pepsi, Apple/Android, and in national retail grocery distribution UNFI/KeHE is obvious. If not for antitrust regulations, these duopolies would more often than not eventually merge into monopolies until some disruptive force comes along to change the paradigm. 👉CPG brands: take a look at national market share in the subcategory you operate in. There is a good chance that it is dominated by two brands, and if not, there is at least trend toward this outcome. 👉Is your product different ENOUGH, to break this cycle? 👉Retailers, in any given metro market, who are the dominant two mainline grocery chains in your market by total share? 👉Are you differentiated ENOUGH from them to compel consumers to change their habits? We all have one thing in common as innovators: we’re trying to break the cycle and acquire market share from what tends to be the natural order of things. In order for us to disrupt, we need to think outside the box. Slightly better versions of what already exists won’t get it done. Pod Foods has been able to take so much national share in the past few years, BECAUSE it is so radically different from the inbumbent model…the same thing is true for ANY disruptive brand. I’ll be at Sweets & Snacks Expo this week and looking forward to seeing a lot of you there. What I’ll be looking for is the product that is the MOST different from the status quo and how we can reach early adopters with it. #disruptiveinnovation #Disneymaxbundle #emergingcpg #podfoods Flowspace Total Quality Logistics Green Spoon Sales Melissa Pashko Caroline Grace https://lnkd.in/d7dYis2C

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Given +25 years as GM and other leadership positions in Food, Dairy & CPG we always depended on Manufacturing to avoid recalls. Now it's far more alarming concerning the continued increases yearly in Food Recalls! Especially, when the price tag for each instance is between $10MM and $20MM, without considering the future brand's livelihood and the loss of life. US News & World Report by Health Day April 25, 2024... "Since 2022, meat and poultry recalls have risen 31%. Further... Food producers or packagers just need to focus more on cleanliness and disclose allergens". Over 75% of Food recalls are related to Allergens, many being mislabeled, and detected bacteria such as Listeria, Salmonella, and E-coli. In seeking to understand a solution for the Food Industry, I learned about Clean Beam, LLC and their partnership with Eden Park | 222nm Continuous Disinfection Solutions. These companies have worked to offer a safer, more effective process to limit the spread of bacteria or viruses from employees. Also, working with Far UV-C technology in the food production and packing processes has proven to kill E- coli, Listeria, and Salmonella in seconds. See the exhibit https://lnkd.in/g6k4Ggxx #FarUVC hashtag #UVDisinfection hashtag #FoodRecalls

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Functional foods are more than just a fad —they’re shaping the future of health and wellness in CPG. Consumers today are actively seeking products that go beyond basic nutrition (which is still rare) , and are looking for functional benefits like added protein, gut health support, and enhanced energy. This shift is driving innovation across the food industry, as brands tap into the demand for products that fuel both body and mind. Protein Candy is trying to be a big part of this movement, bringing high fiber, low sugar, protein-packed treats to the candy aisle. It’s an exciting time to be in the space where food meets function.

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CPG Brand Marketing Leaders – Great evening with Chicagoland Food & Beverage Network hearing nuggets of marketing excellence from a powerhouse panel, catching up with friends old and new, and even 1 minute of sizzle reel fame (because 5 minutes is WAY too long.. link in comments 😊) Key insights from on The New Rules of Brand Management reflecting how marketing has changed (spoiler—a LOT) in the past few years: 💡𝘿𝙤𝙣’𝙩 𝙁𝙡𝙪𝙗 𝙩𝙝𝙚 𝙁𝙤𝙪𝙣𝙙𝙖𝙩𝙞𝙤𝙣: Brand fundamentals are still, well, fundamental. While the paths to market have changed, the need for sharp insights, distinctive benefits, and compelling messaging is evergreen 💡𝙈𝙚𝙖𝙨𝙪𝙧𝙚 𝙀𝙫𝙚𝙧𝙮𝙩𝙝𝙞𝙣𝙜: Attribution offers empowering performance insights, internal alignment, and the freedom to optimize as you go. But with those analytics must come nimbleness: be ready to adjust early and often, 3-yr planning horizons are SO 5 years ago. 💡𝘽𝙪𝙘𝙠𝙡𝙚 𝙐𝙥 𝙩𝙤 𝙍𝙞𝙙𝙚 𝙩𝙝𝙚 𝘾𝙪𝙡𝙩𝙪𝙧𝙖𝙡 𝙈𝙤𝙢𝙚𝙣𝙩𝙨: even if you lose some control.  While UGC may break some brand guidelines, when your brand and culture intersect in ways you can’t buy or plan for, seize and fuel those moments. 💡𝙃𝙖𝙧𝙣𝙚𝙨𝙨 𝘿𝙖𝙩𝙖 𝙞𝙣𝙩𝙤 𝙖 𝙎𝙞𝙣𝙜𝙡𝙚 𝙎𝙤𝙪𝙧𝙘𝙚 𝙤𝙛 𝙏𝙧𝙪𝙩𝙝: with unprecedented access to ocean-deep, yet fragmented data, collaboration and transparency are key to common understanding and alignment on implications 💡𝙎𝙩𝙤𝙘𝙠 𝙮𝙤𝙪𝙧 𝙑𝙞𝙙𝙚𝙤 𝘼𝙨𝙨𝙚𝙩 𝙆𝙞𝙩𝙘𝙝𝙚𝙣: Video is today’s language. Make your dollars and brand assets work as efficiently as possible with savvy production planning and batching so your content is truly on demand Which of these resonates most? What New Rule did I miss? Saverio Spontella Larry Deutsch Stephen Gaither Ashley Nazarian Findlay Jessica Barrutia Janet Garetto Tracy Hatfield #brandmarketing #brandstrategy #insights I'm Elizabeth, and I help brand marketing leaders harness consumer & market insights to fuel strategic brand growth. DM me to talk nimble, data-driven strategy to drive consumer connection.

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The acquisition of Siete Brands by PepsiCo is generating significant attention today. Following Diageo's acquisition of Ritual and Mars' partnership with Kellanova, it raises an important question: is M&A the primary avenue for innovation and growth in the food industry? I’m also interested in how consumers of these smaller brands perceive these large CPG acquisitions. Will this shift influence their loyalty and purchasing decisions? #FoodIndustry #MergersAndAcquisitions #ConsumerPerception #Innovation #BrandLoyalty #CPG #MarketTrends

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"Buckle up for your Macro Minute—where the big trends meet bite-sized insights!" Kaleigh Theriault and I are back with a Sizzling Summer update to the BevAl business. As we navigate through the summer season, the beverage alcohol industry continues to experience dynamic shifts across key categories:   🍺 Beer: Dollar sales are down by -2.8% with volume dropping by -4.9%, reflecting a continued decline post-4th of July. While Imports and Super Premium beers are seeing positive momentum, Domestic Premium and Craft are pulling down overall category growth.   🍷 Wine: The wine segment remains in decline, with dollar sales down by -2.1% and volume by -3.9%. The top 10 brand families are a mixed bag, driven by varying consumer demands for momentum and innovation. Expect these declines to impact the full year's numbers as we move through the rest of the summer.   🥃 Spirits: Spirits are evolving, showing resilience with a slight dollar growth of -0.5% and volume increase of +1.5%. Ready-to-Drink (RTD) options are leading the charge with a +13.8% increase, alongside traditional spirits like Tequila (+4.9%) and Cordials (+0.2%), which are also fueling growth.   🍹 RTD: Viewed as a standalone mega-category, RTDs are facing slight declines in both dollar sales (-0.2%) and volume (-4.0%). However, spirits-based RTDs are thriving (+13.8%), though FMBs and Seltzers are beginning to show signs of decline. Innovation beyond flavor will be key to unlocking further growth potential for the rest of 2024.   The reporting paints a picture of an industry in flux, where renewed strategic innovation and consumer alignment will be crucial to driving growth across all categories. 📈 Q4 entertaining and gifting are just around the corner and as important as ever. Wishing everyone a successful conclusion to summer selling. What do you call a dog at the beach in August? A hot dog! 🌭🐕 Why did the ice cream truck break down? Because of all the rocky roads! 🍦🚚   #BeverageAlcohol #IndustryTrends #Innovation #ConsumerInsights #MacroMinute

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