What CPG Challengers Should Learn from Tesla
In consumer products, more and more companies are incorporating sustainability into their brands.
I often hear (even from myself), “I want to have maximum impact, so I need a scalable product and business model. And scalability means going mass market.”
This thinking overlooks an important dynamic: cultural adoption often starts in the luxury segment.
Premium positioning builds brand equity, creates buzz, and lays the foundation for mass-market expansion later. It also gives brands time to develop the supply chain and absorb inefficiencies, as higher margins in luxury allow for more flexibility early on.
Just look at Tesla—their journey started with expensive high-end models before scaling to more affordable options.
So where are the luxury plays in sustainable CPG? There aren't many. One newer example is SriMu, a super premium plant-based cheese brand. But beyond that, the space feels underdeveloped.