
Four levers for active mix management
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Over the last few years, there was a pricing power in consumer-packaged goods (CPG) we hadn’t seen in a long time. Demand was relatively inelastic, and people were willing to accept higher prices. Meanwhile, consumption tied to in-home living boomed, possibly due to increased liquidity and a sharp shift in consumer occasions. These factors emboldened companies to push their pricing strategies to the limit, perhaps more than they otherwise would. However, that dynamic didn’t last forever.
As inflation persisted, consumer sensitivity crept back in. Certain categories had ridden a wave of volume growth that wasn’t structurally sustainable.…
