'Our Darwinian moment': The CPG industry was plagued with shutdowns in 2024 amid a tough operating environment
This lesson is an article published by Modern Retail.
Read the articleWhat you'll get
Reporter Gabriela Barkho gathers investors' and consultants' explanations for why many young CPG brands closed in 2024, chiefly growing into big chains before their operations and cash could handle it, and then absorbing retailer fees and deductions. It quotes advisers rather than measuring closures, so read it as a list of warning signs to check against your own expansion plans.
Do this week
Pick the expansion you are most tempted by, such as a new chain or region, and write the cash you would need to cover its fees, promotions and slow payment.