Billion Dollar CPG Brands – How Do They Scale?

The power of focus is how they do it. They keep their revenue primarily within 1-2 core categories and even further, mostly within 10-15 prime cash cow UPCs. 

This makes their plants very efficient since most of the UPC diversity becomes different packaging runs or flavorings of a base formula. 

Yes, if you have a billion-dollar business or want to build, you must build your facility at some point. It is financial insanity not to do this. I urge founders to have a formula no one can manufacture so you grow out of a pilot facility on day one. This is the best competitive position to be in.

But the amazing power of focus, not platforming your brand across the store, is the primary strategic principle that proves itself again and again and again. If your core UPCs are not competitive enough to scale without BigCo marketing budgets, you have a problem. 

It is UPC focus that focuses the consumer experience and what your brand means. And this focus is what makes brand awareness marketing efficient for new brands. 

You will need lots of UPCs to get to a billion, but this diversity in UPC codes will mostly relate to servicing the last 15% of ACV in your category with just the right pack-price offering. Thinking vending vs. Costco. 

Always privilege your core, not big category extensions all over the place based on a vague brand proposition (BFY) that consumers don’t want from you. 

Focus. Focus. Focus.