From my friend Lex Kovacs, regarding the CPG Industry today.
"I think this is especially relevant in the CPG industry today. Competing in grocery and convenience channels is becoming more expensive, whether it’s due to slotting fees, promo costs, vital distributor’s support asks, ad spend, or the market pressure from private label. The financial investment required to compete at a high level is significant and man, is it a slow burn! One challenge I see often is that the salaries experienced leaders require are higher than what most startup brands can realistically afford (wether they know it or not). Even if founders don’t always realize it, the low chances of success in this space mean that spending vital capital on an experienced team—like KAMs, Distribution Managers, Field Sales Managers, and Shopper Marketing Managers—can end up costing them their entire brand.
As a consultant, I primarily work with founders now, and I can respectfully say that many don’t fully grasp the time and effort it takes to establish a brand with solid VPOs nationally. At the end of the day, it’s about having the right people for the right company. The value that experienced CPG leaders bring is worth its weight in gold when applied correctly. This understanding is what led me to start full-time consulting: to help startup brands make those key decisions and avoid costly mistakes early on. This way, they don’t need to pay a high six-figure salary when their capital should be allocated to ensuring their brand succeeds at the retail level.
For fellow hiring managers at startups or those on the job hunt, my advice is to take things slow—manage expectations on both sides. If you’re a founder, hiring manager, or someone looking for placement in the industry, reach out to me. Let’s discuss the qualifying questions you should be asking to make sure you’re putting yourself in the right position for the long haul. Expensive mistakes at the beginning of any brand’s journey can be the difference between failure and success."
