Dear CPG friends and colleagues. Over the past few days there has been significant alarm over the Novel CoronaVirus. We have been hearing about cancelled events, conferences, trips, meetings and projects. Let’s not take this Virus lightly and lets do take personal precautions to protect ourselves and society at large.
Business and professionally speaking however, this is not going to be a huge hit for CPG. If you are in the Travel, Hospitality, Manufacturing, Service and most other industries, yes bad times are here for the next few weeks / months.
But if you are CPG – don’t fret! All those people who are not going out are going to need groceries. Not just the obvious categories, I predict almost all category sales will be up as a result of consumers spending more time at home.
I have been in the CPG Marketing and Research space for 20+ years. I have lived through;
- the .com Bust,
- 2 Recessions,
- 1 GREAT DEPRESSION
CPG outperformed all major industries in every one of these cases. Warren Buffet is a very rich man in large part because he bet on CPG when everyone was betting on .coms (remember when eyeballs were to replace P/E ration?)
Let’s be clear – I am NOT recommending that you think of this as an opportunity to make a fast buck! What I am saying is that if you are in CPG (brand, research, agency, production, distribution or retail) this will be a blip in your year, so focus on the plans that you set and execute against those… and make sure the fridge and pantry are well stocked!