What CPG Gets Wrong About Impact
In the CPG world, we often see one of the following two approaches to impact:
1. Driven Change: Startups driving innovation, often trying to change existing consumer behaviors. The challenge? People don't like to change. So, most "Driven Change" efforts fail.
2. Ridden Change: Large CPG companies riding consumer trends, introducing new alternatives alongside their main products. The challenge? No change to the "Original" (the typical "vegan version of x"). Consequently, the impact is niche-oriented and limited.
Our approach at The Sprezzatura Company: HIDDEN CHANGE—adopting new technologies and practices for core product lines. We focus on changes the regular consumer might not immediately notice—like replacing milk protein in a cracker.
Unlike Driven Change, Hidden Change doesn't require a change in consumer behavior. Therefore, Hidden Change, if done right, has no consumer adoption risk.
Unlike Ridden Change, Hidden Change focuses on core product lines. Therefore, Hidden Change is not niche-oriented.
But what's in it in terms of shareholder value?
In future posts, we'll discuss how to translate Hidden Change into bottom-line value creation. Stay tuned.