CPG Industry News Roundup: January 17 - January 23
The CPG industry is poised for significant shifts in 2025, driven by critical developments shaping the market’s trajectory. This roundup highlights key events, including acquisitions, funding milestones, and operational changes that are influencing the future of consumer goods.
Ferrero Group Acquires Leading Protein Snack Company Power Crunch
Ferrero Group announced its acquisition of Power Crunch, a prominent protein snack company. The deal expands Ferrero’s footprint in the health and wellness snack segment, aligning with the company’s strategy to diversify its portfolio. Power Crunch’s flagship protein wafers and powders will now benefit from Ferrero’s global distribution network. Ferrero Group acquisition of Power Crunch.
Diageo Sells Cacique Rum to La Martiniquaise
Diageo has divested its Cacique Rum brand to La Martiniquaise, a French spirits company. This sale marks a strategic move for Diageo as it continues to optimize its portfolio by focusing on higher-growth segments. Diageo's sale of Cacique Rum provides La Martiniquaise an opportunity to expand its presence in Latin American markets.
Riding the RTD Wave, Hiyo Secures Nearly $20M in Funding
RTD (ready-to-drink) beverage brand Hiyo has raised nearly $20 million in its latest funding round. The investment will support Hiyo’s production and marketing as it looks to capture more of the growing RTD market. Hiyo’s funding successreflects increasing investor confidence in functional and non-alcoholic beverages.
Lexington Bakes Takes a Step Outside Brownies, Cookies
Lexington Bakes is diversifying its product lineup, venturing beyond its traditional focus on brownies and cookies. The company announced plans to release a range of baked snacks aimed at younger, health-conscious consumers. Lexington Bakes' expansion into new categories marks a significant pivot for the brand.
Chubby Snacks Shutting Down
Chubby Snacks, known for its better-for-you peanut butter and jelly sandwiches, is ceasing operations. The company cited challenges in scaling and operational costs as primary reasons for its closure. Chubby Snacks' shutdown is a stark reminder of the difficulties startups face in the competitive food space.
Miami Welcomes Fruga’s New Healthy Sparkling Beverage
Fruga, a newcomer to the sparkling beverage category, has launched its healthy sparkling drinks in Miami. The brand’s initial launch focuses on providing flavorful options with functional health benefits. Fruga’s entry into Miami is a testament to the continued consumer demand for innovative beverages.
Second Nature Brands Appoints New CFO and CCO, Opens Chicago-Area Office
Second Nature Brands has bolstered its leadership team with the appointment of a new CFO and CCO while opening a new office in the Chicago area. These moves underscore the company’s commitment to driving growth and operational excellence. Second Nature Brands' leadership updates indicate a focus on scaling its operations.
DTC Wine Sees Record Declines in 2024
The direct-to-consumer (DTC) wine market experienced record declines in 2024, driven by changing consumer preferences and economic pressures. DTC wine's struggles reflect the challenges facing traditional wine channels in adapting to evolving market conditions.
Implications for the CPG Industry in 2025
This week’s news illustrates the changes underway in the CPG sector. Ferrero’s acquisition of Power Crunch showcases a strategic emphasis on health-focused snack products, signaling a broader industry trend of aligning portfolios with wellness-conscious consumers. Similarly, Diageo’s sale of Cacique Rum highlights a shift towards prioritizing high-growth areas, revealing a disciplined approach to portfolio management.
Hiyo’s success in securing nearly $20 million in funding speaks to the rising demand for functional and non-alcoholic beverages. This growing sector provides lucrative opportunities for brands willing to innovate and meet evolving consumer tastes. Meanwhile, Lexington Bakes’ decision to expand beyond its core product categories demonstrates how adapting to shifting preferences can drive relevance and growth.
The challenges faced by Chubby Snacks, culminating in its closure, underscore the high stakes and operational difficulties of competing in saturated markets. Startups must not only differentiate themselves but also master scale and efficiency to thrive. Fruga’s entry into Miami’s sparkling beverage market, however, showcases how innovation and strategic market launches can cater to niche consumer demands, carving out space even in competitive categories.
Leadership and operational moves, as seen with Second Nature Brands, highlight how investment in talent and infrastructure can position companies for sustained growth. Finally, the significant declines in the DTC wine market serve as a wake-up call for traditional players, emphasizing the need for adaptation and renewed engagement strategies to address changing purchasing behaviors.
Conclusion
These stories collectively signal that 2025 will be a pivotal year, with companies that embrace innovation, focus on consumer demands, and streamline their operations likely to emerge as industry leaders.