chess pieces

All growth strategies in fmcg can be classified as one of two things. Either they are about delivering new or improved products, or they are about finding new places to sell existing products. Traditionally, fmcg companies have devoted more effort to the former. I believe the latter deserves equal focus. And I call this “backing winning products”.

Why? There is a lot of risk for food manufacturers in product innovation. Fancy investing in a new factory line, knowing most fmcg product innovation fails? With large supermarkets achieving little or no growth, and now looking to reduce range? 

It feels pretty risky. But there are juicy growth opportunities online, in convenience stores, in foodservice and overseas. Isn’t it wiser to focus on getting your best existing products on sale in such places?

So if you want to back your existing winning products, and drive them into wider distribution, how do you go about it?

First, you need to be crystal clear which your winning products actually are. Which sell at full price, not just on promotion? Which hold their place on shelf without question? Which offer something competitors cannot? I know of a snacking category where one brand has refused to promote but succeeds because its “eat” is so unique.

“You need to be crystal clear which your winning products are”

Next, take those products deeper into UK grocery. Deeper within your existing customers (more formats, more stores, more locations in store). Deep into new customers (other supermarkets, convenience stores and discounters). Almost every brand I’ve worked with has big distribution opportunities by this definition. 

Third, push beyond grocery. What about other retail (eg Poundstretcher, B&M, Home Bargains)? All are growing strongly. 

If you have been focused on the UK, what about overseas? And what about foodservice? In one premium category I know, a SKU in one foodservice player sells 15 times more per store than in the equivalent retailer. 

Does focusing on finding extra places to sell existing products mean product innovation will die, and our industry will suffer? It should not. The way the world wants to consume will forever keep changing, and our industry must keep up. 

All I’m saying is when you know you have a winning product, invest as much effort into finding more places to sell it as you did into inventing it. 

Coca-Cola didn’t get where it is today by inventing lots of different drinks. But it worked and worked to get Coke “within an arm’s reach of desire” - on sale and highly visible wherever people might seek refreshment.


Jeremy Garlick is a partner at fmcg consultancy Insight Traction