Everything you need to know about deductions and chargebacks in food and drinks distribution
Also, the Oatly Saga continues and don't forget to target older shoppers
👋 Happy Tuesday
Welcome to another edition of what we’re determined to make the best newsletter in CPG and food marketing. Here we share what you need to know to run a successful food or drink business.
Our #1 goal is to be useful. So please shoot us an email if you have questions or feedback, especially if you implement something we share!
Here’s what we’re covering today:
AI, AI, everywhere
The Oatly Saga continues.
Don’t forget to target older shoppers.
Everything you need to know about deductions and chargebacks in food and drink distribution.
AI everywhere
Last Wednesday, I was booked to give a speech at the SIAL Show in Toronto. The theme: The Rise of AI and how it will affect food marketing.
You can access the presentation here for free.
People came in to join - it ended up being a full house.
If you’re interested in learning how you can use AI to run your own business more efficiently, from chatbots to content research, drop me a line to andreas@audacious.marketing. We now offer AI integration consulting.
Have you been following the Oatly saga? There’s much to learn here.
Start here, which is one of the boldest moves I’ve ever seen a brand make - https://fckoatly.com
Then check their website, which is also super confident - https://www.oatly.com/en-us
But then, there’s this: https://www.eater.com/23389111/oat-milk-oatly-popularity-rise-and-fall-environmental-health-concerns
Don’t forget to target older shoppers
95% of the CPG shopper marketing briefs I see have brands wanting to target Gen Z and/or Millennial audiences.
But consider this: by 2028, the 60+ age group will account for over one-third of the overall growth in grocery spending.
Over the next five years:
Age 60+ will be the fastest-growing demographic.
Household composition is changing with a decline in birthrates, leading to a significant increase in single-person households.
The majority of wealth is held by the 55+ age group, which accounts for 70% of the overall net worth.
Despite these facts, CPGs continue to target younger generations and are missing out on massive opportunities.
Keep that in mind when planning your next marketing activation.
Everything you need to know about deductions and chargebacks in food and drinks distribution
As a food entrepreneur, navigating the world of retail is challenging at the best of times. One of the most important aspects to understand is the relationship between your brand, distributors, and retailers.
Deductions and manufacturer chargebacks play a significant role in this relationship. Understanding them is crucial for your business’s success.
Because they are often badly understood and managed, they are frequently a source of anger, frustration and strain on relationships.
I have heard horror stories of manufacturers losing up to 75% of the invoice amount to deductions.
In this guide, we’ll break down everything you need to know about deductions and manufacturer chargebacks in the food industry, how to deal with them confidently and how to protect your profits.
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