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03/02/2017

Power Hour: Large Cos Losing Share Across CPG; Extra Small Cos +1.4 Share of $$ to 10.3 Since 2011

Beer by no means alone in share shift to smaller players over last 5 years. Across all CPG categories, about $20 bil in sales shifted away from large companies to smaller players since 2011, according to data from IRI that Dan Wandel shared during Brewers Assn Power Hour today. Back in 2011, large companies (over $5.5 bil in sales in 2016) had over 57 share of total CPG sales in IRI. Since then, they collectively lost 3.1 share, including a half share in 2016 alone. Collectively they were up less than 1% last yr, a bit slower than average 1.3% annual growth between 2011-2015 (CAGR). Mid-size cos ($1 bil to $5.5 bil in sales) held about 20 share across all yrs, gained 0.4 share from 19.9 to 20.3 between 2011-2015, stable in 2016. It’s small cos ($100 mil to $1 bil) and extra-small cos (less than $100 mil) that gained the most share and grew the fastest. Small firms gained 1.3 share from 14 to 15.3, putting up average 4.6% growth per yr thru 2015, but slowing to just 2.8% growth last yr. But extra-small cos actually accelerated slightly in 2016. The group gained 1 full share between 2011 and 2015, with CAGR of 5.3%. They passed 10 share of total CPG sales last yr, +0.4 share to 10.3, collectively up 5.4%. Key to continued craft growth (and there ain’t much these days): how long will this shift to small continue?

Publishing Info

  • Year: 2017
  • Volume: 19
  • Issue #: 41
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