FMCG Portfolio Decisions | Todd Kirk | Part 2

Why are so many FMCGs so focused on cannibalising their own demand? Why is volume growth not really at the centre of the way they operate?Todd and Filiberto discuss how innovation can create incremental demand rather than just redistribute it by targeting unmet occasions and clarifying each product’s role in the portfolio across four buckets: entry (trial), frequency, upsizing, and upscaling. They argue portfolio pruning often lacks discipline because firms fear losing shelf space and cut based on past sales rather than on incremental value, creating future competitive gaps; research cited claims that incremental value stops around the fourth SKU. They critique promotions for often subsidising existing buyers and driving unprofitable spikes, and warn that innovation and siloed decisions break pricing ladders (e.g., multipacks priced higher than singles). The proposed fix is a shopper-centric, system-wide “wide-angle” mindset that uses existing data and tools, along with virtual testing, to align assortment, pricing, and promotions.00:00 Innovation That Creates Demand01:14 Four Portfolio Roles Explained03:47 Real-World Examples By Bucket07:50 Pruning SKUs And Promo Myths19:03 Pricing Architecture And Systems Mindset This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.filibertoamati.com/subscribe