[MONDAY MINUTE] Why "Big CPG" is Breaking Up With Itself

Kellogg Company divided itself into WK Kellogg and Kellanova. But then, less than two years later…each got absorbed by another Big CPG portfolio. Keurig Dr Pepper is going through a strategic separation process. Kraft Heinz announced it will split into two standalone businesses. PepsiCo is currently dealing with an activist investor urging portfolio simplification. And those are just the most buzzworthy “breakup and buyout” examples within the CPG industry! Though, many pundits seem to be misreading these “new configurations” as some type of signal that the “Big CPG” empire has collapsed. Yet, Big CPG is flushed with resources and full of strong (intelligent) human capital…that know the future will be shaped by those who disrupt themselves. In fact, a recent PwC report showed 49% of CPG executives believe their current business model won’t survive the next decade…a rate that is seven times higher than the average across other industries. So, what if the next big CPG disruptor isn’t a startup, but a legacy brand rebuilt from the inside out that’s better equipped to navigate changing consumer preferences, increasing competitive pressure, and heightened economic uncertainty?