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How You Know It’s The Right Time To Pivot

Being told you need to change something fundamental about your product can feel somewhat akin to Ross from Friends yelling at you while you are helping him move a heavy couch up a narrow stairway. And yet, there are times when you really do need to pivot.

Many traditional food and beverage companies have been slow to respond to changing consumer preferences around food innovation, clean ingredients and transparency, loosing market share and profits in the process. They are trying to make up for this lack of action by rapidly acquiring or incubating new brands. In essence, they are trying to pivot to a portfolio of products that aren’t just about price or convenience.

Mary Pelletteri with Top Note Tonics shared on our podcast about how she originally thought she was going to start a beer company since she had a lengthy career in beer operations, including at Goose Island and Miller/Coors. But, she and her team decided not to because the beer category was already very crowded. That led her into mixers (a growing sub-category of beverages), and it took experimenting with different types of products (like syrups) before landing on ready-to-drink sparkling tonics as Top Note Tonics’ key business opportunity. She and Top Note pivoted in response to where the market and the consumer was headed.

Like anything in food and beverage businesses, decisions to pivot or change should based on your target consumer’s preferences, your product category’s growth (or decline) and other general market trends. If you put your customer and their preferences in the driver’s seat in this way, you can ensure decisions about when and where to pivot will be guided by where the key business opportunity lies, and not other things.


And now, our roundup of the best food and beverage finance news, events and resources from around the web…

Food and Beverage Business Models

Business Model Insights

Raising Capital

Raising Capital

Grocery Store Shopping

CPG/National Brands

Grocery Store Produce Section

Market Trends

 Regenerative Agriculture

Farming and AgTech

Mergers and Acquisitions

Deals/M&A

Events

Industry Events

Categories: Insights Newsletter