3-2-1: CPG Org Reformulated, Zero-Alcohol Hits $1B, and Loyalty Reframed
3 Insights Worth Your Attention
I. Why CPGs Are Reformulating Teams, Not Just Products
Along with shrinkflation, CPGs are quietly shrinking org sizes as well. Some companies are replacing function leaders (e.g., R&D, Sales, Supply Chain) with people who bring an “operator” mindset and can navigate across margin, agility, and innovation. As CPGs face pressure, hiring briefs are evolving. Lauren Stiebing, an executive recruiter for CPGs, shares companies are now seeking:
→ Leaders who can drive simplification, without killing speed
→ Executives who know how to innovate for value, not just novelty
→ Operators who can run lean, but think big
The result? More specialized roles and fewer organizational layers as companies try to reinvent and move faster.
For CPG Leaders: Don’t wait until your functions feel this squeeze. Consider building multi-functional capabilities in your existing teams and develop leaders who can pivot between revenue management, innovation pipeline, and retail execution seamlessly.
📖 Read more: How CPG companies are reformulating org charts alongside products in this LinkedIn post.
II. AI, Rise of Non-Alcohol Products – A Shining Moment for BFY
The Non-Alcohol Beer, Wine, and Spirits category is no longer just an alternative; It’s a lifestyle choice. With $925M in sales and +22% YOY growth, it’s on track to surpass $1B by 2025.
Here’s the paradox: many zero-alcohol products cost more than their alcoholic counterparts, and shoppers are still buying. Consumers see zero-alcohol products (yes, even without the alcohol!) as an upgrade worth paying for. more For one of the few times, we’re seeing BFY deliver higher margins.
What does this for mean for CPG leaders? This is a signal that “better-for-you” can be a more margin unlock, not a drag. Whether it’s portion-controlled snacks, permissible indulgences, or wellness-driven innovations, consumers will reward products that ladder up to lifestyle goals like balance and moderation, even at higher price points.
Read more: NIQ highlights how Non-Alcohol has flipped the pricing script by turning “less” into “more.”
III. Is There Really a Loyalty Crisis?
It’s tempting to panic when you see your “loyal shoppers” slipping. A study of 32M shoppers showed many leading brands losing their “high loyals,” those spending 70% of their category dollars on one brand.
But here’s the thing: the data showed a 95% correlation between losing “high loyals” and losing total buyers. Loyalty doesn’t collapse on its own. When brands decline, all buyer groups tend to decline.
The better story is about penetration and reach. Growth comes from bringing in more buyers overall, then keeping them active. Retailers care less about your loyalty math and more about how you’ll expand the buyer base for the category.
📖 Read more: Ethan Decker (Applied Brand Science) explains why penetration, not loyalty, should be your north star.
2 CPG News Stories To Know
I.
General Mills Invests $54M in a new innovation hub near its Minnesota headquarters to speed up R&D on new products. The cereal maker is looking to tap into food trends including putting protein in everything and spicier snack flavors.
II.
Takeaways from big box retailer earnings: tariffs and shifting habits are reshaping results. Target sees most tariff costs behind it, Walmart is holding prices low despite rising costs, and shoppers are leaning into coupons, deals, and private label, yet discretionary spending stayed strong at both chains.
1 Deep-dive Topic this week: Rebuilding Loyalty After a Habit Break
Some shoppers are creatures of habit. They buy the same coffee pods every four weeks. Pick up the same chicken every Friday. Until one week, they don’t.
Continuing with Circana’s shopper series, this time spotlighting the routine-driven shopper whose predictable patterns make any disruption a red flag. It breaks down what drives habitual shoppers, how to spot when routines break, and four ways to re-engage before they drift to competitors.
Worth a read if you’re managing consumer retention, optimizing loyalty programs, or trying to predict when reliable revenue streams might be at risk.
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