IRI and Boston Consulting Group (BCG) are out with their annual “Growth Leaders” report spotlighting top-performing CPG companies. The firms analyzed growth across the CPG spectrum to identify and rank companies that successfully navigated another year marked by strong headwinds.
The report identified winners by company size. Large companies were defined as those with more than $6 billion in sales, while midsized companies had between $1 billion and $6 billion in sales, and small companies came in with $100 million to $1 billion in sales.
According to the report, the growth leader in the large-company segment was Constellation Brands, which enjoyed a 9.7% boost in sales last year. Following Constellation Brands, the highest-growing CPGs were Reckitt, L’Oréal, Grupo Bimbo, Mars, Tyson, General Mills, The Coca-Cola Co., Nestlé and Monster Energy.
Upfield was the highest-ranking midsized company, topping that list with a 30.9% sales lift. Following Upfield, the top midsized performers were Sovos Brands, Beiersdorf, Chobani, Ferrara Candy Co., Barilla, CJ CheilJedang, McKee, Sazerac, Daisy, Cargill, Simply Good Foods, Eggland’s Best, Tillamook and JBS.
The much-buzzed-about Prime Hydration, with more than $100 million in retail sales in its rookie outing. was ranked first for small companies. Rounding out that leaderboard: Ghost, Scrub Daddy, Impossible Foods, Celsius, Lifeway, Idahoan, Milo’s, Alani, Natrol, Black Rifle Coffee Co., Lamb Weston, Rana, Hudsonville and SPD.
"The leading CPGs in 2022 won by delivering pricing-led growth while maintaining or driving demand as consumers faced increased economic and inflationary pressures, and consumption patterns continued to stabilize in a post-COVID-19 'new normal,'" said Cara Loeys, principal, client engagement for Chicago-based IRI. Other catalysts for growth, according to the IRI-BCG report, include strategic shelf pricing and effective digital and social go-to-market capabilities.
The researchers also tracked overall sales, reporting that CPG omnichannel sales climbed 8.4% in 2022, with gains in all size segments. The increases were largely driven by price/mix.
Looking ahead, the report noted that continued growth is possible, given the right strategies and tactics. "To drive growth in 2023, CPGs must concentrate on four key priorities: forward-looking and de-averaged revenue management, precision demand science to unlock underlying pockets of consumption growth, sustained operational efficiency rigor, and growth via M&A investment or divestiture," advised Aman Gupta, managing director and partner at BCG.
The full report is available online.