Tech VCs getting over their skis investing in DTC brands set back CPG investment for a decade
Historically VC has been about investing in technology that disrupted big markets and captured lots of value
That model didn’t fit consumer brands…until around 2012 it suddenly did:…
Just got back from @BevNET; Hemp THC Beverages were one of the hottest categories
I spoke with brands, retailers, and suppliers.
Here are 8 takeaways. Let's dive in
1. DTC is working - but on borrowed time
DTC is 50%+ of sales for some brands. Brands make the unit economics…
CPG Startup Idea:
An AI that handles all Admin. Product Setup & Data Capture (incl. Image Publish) for UNFI/KeHE, 1 World Sync, Syndigo, Demand Tech and IX-One.
I’d happily pay up to $3k/mo for this and make it back by renegotiating my broker contract to exclude this scope.
CPG is having a moment lately (see Rhode, Poppi, LesserEvil, Siete)
Still, those of us who invest in the area are always hearing a handful of misconceptions about why it's so hard to generate returns in CPG:
Too small, too much fad risk, too capital intensive, too "DTC", no…
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