{"id":7665,"date":"2022-10-13T15:54:00","date_gmt":"2022-10-13T10:24:00","guid":{"rendered":"https:\/\/www.intelligencenode.com\/blog\/?p=7665"},"modified":"2026-04-22T15:57:38","modified_gmt":"2026-04-22T10:27:38","slug":"mars-pepsico-lead-the-dtc-movement-in-retail","status":"publish","type":"post","link":"https:\/\/www.intelligencenode.com\/blog\/mars-pepsico-lead-the-dtc-movement-in-retail\/","title":{"rendered":"Mars and Pepsico Lead the DTC Movement in CPG Retail"},"content":{"rendered":"\n

CPG vs FMCG in DTC<\/h2>\n\n\n\n

The terms CPG and FMCG are often used interchangeably: FMCG as a category includes \u2018fast-moving\u2019 consumer goods- where inventory turnaround is so rapid that shelves are restocked every day. This is due to the products\u2019 perishable nature and high demand, as seen in beverages (milk, juice), health products, snacks, and more. While there does undeniably exist an overlap in the two categories, and products of either category may still land in the same shopping cart, CPG brands claim ownership of products with a slightly more generous shelf life, and a relatively lower rate of replenishment, while still remaining highly affordable and in frequent demand, for example, ice creams, snacks, household cleaning supplies, etc.<\/p>\n\n\n\n

These products are the face of a highly competitive, disruptive, and innovative sector, whose leading brands are making headlines in eCommerce and DTC, by leveraging technology and data-driven solutions for all things retail.<\/p>\n\n\n\n

Consumer Packaged Goods Pack a Punch<\/h2>\n\n\n\n

Unsurprisingly, the CPG industry has been and remains one of the largest sectors in North America, valued at approximately $2.5 trillion, representing 10% of the US GDP<\/a>. CPG behemoths operate over and above popularity: leading brands enjoy healthy margins and steady sales, with industry stalwarts comfortably claiming their space as household staples. These brands utilize dynamic and high-budget marketing efforts and pricing strategies<\/a> to remain recognizable to target audiences, who typically gravitate towards these brands and products and make purchasing decisions basis the ever-familiar packaging alone. Many of these brands- Procter and Gamble, Unilever, Coca-Cola, Mars Incorporated, etc. are generational pillars and have been almost habitually purchased by households over generations.<\/p>\n\n\n\n

The eCommerce Lag in DTC<\/h2>\n\n\n\n

In an affordable, easily replaceable, vast arena of product options, not even the best of the best can rely on brand value alone, especially in 2025. This highly competitive industry sees a constant battle between new and old brands for shelf space and a never-ending strategic quest for effective and memorable branding. Chief among these has been in the realm of eCommerce: DTC buy-ability, a more recent feature pushed into the spotlight during the pandemic led eCommerce whirlwind a few years ago. <\/p>\n\n\n\n

While several CPG brands were pushed to launch DTC websites during the pandemic (Beyond Meat, PepsiCo\/Frito-Lay, Del Monte), many brands, especially the major players, have been slow to follow<\/a>. This lag can be credited to major hurdles in adoption<\/a> such as issues with logistics\/last-mile delivery, difficulty in providing data personalization, and in acquiring and retaining customers, who may resist shopping on a new, unoptimized website. Some large brands have even struggled to maintain profitability in DTC as their products and inventory systems have been crafted for retail.<\/p>\n\n\n\n

But that\u2019s changing fast. Today, top CPGs like Nestle and Unilever are making waves with innovative digital solutions and new and creative DTC storefronts. They are realizing the need to compete with new DTC players and cater to shoppers\u2019 needs and expectations. <\/p>\n\n\n\n

Mars\u2019 Ever-Evolving DTC Strategy, Digital Innovation, & Leadership<\/h2>\n\n\n\n

Mars Incorporated is one of the biggest CPG companies<\/a> in its solar system (food and beverages). Since its inception in 1911, it has split into four operating business segments: Petcare, Food, Mars Wrigley, and Mars Edge. Mars Wrigley houses brands such as DTC legend MnM\u2019s, Halloween favorite candy brands Skittles, Snickers, Twix, Starburst, and countless other household staples from the past several decades. Its pursuit of innovation and DTC success, however, is not bound to its past<\/a> and is represented strongly by internal leadership at every level.<\/p>\n\n\n\n

\"Digital<\/figure>\n\n\n\n

Mars Inc.\u2019s Global Corporate Innovation Director, Paola De Almeida said it best: \u201cWe\u2019re at a fascinating moment, where we will be creating the next relevant portfolio for consumers\u201d. One significant chapter in this innovation takes the shape of creating new products better suited to the modern-day shopper. After noticing a shift in consumer eating habits, for example, the company launched \u201cBen\u2019s Plant-Powered\u201d<\/a> range of vegan meals, to join its vegan candy bar<\/a> and beverage offerings.<\/p>\n\n\n\n

Blas Maquivar<\/a>, President of Global Emerging Markets at Mars Wrigley revealed Mars\u2019 digital ambitions as distinct from its on-ground activity: \u201cbecause the portfolio that will win in a Carrefour or a Walmart or a convenience store is not necessarily the portfolio that will win in digital.\u201d Identifying trends, and successfully actioning those insights ahead of competing brands<\/a>, is key to reaching Mars\u2019 goal of making eCommerce 20% of its total business. Strategic efforts differ globally, both as partnerships and DTC, such as Snicker\u2019s collaboration with Indian app-based delivery service Swiggy, \u201cMy MnM\u2019s\u201d fully customizable digital store, or the Turin chocolate gifting digital store in Mexico.\u00a0<\/p>\n\n\n\n

Chief Digital Officer, Sandeep Dadlani has also established mandates within the business to leverage technology, data, analytics, and new digital experiences to help Mars achieve its purpose and its ambition faster \u201c \u2018100X\u2019 or 100 times faster<\/a>.\u201d He calls this the \u201cMars Digital Engine\u201d, made of 3 key elements. The first two are the User Centricity and Data Analytics teams, who focus their efforts on engaging digital consumers and identifying issues they face, then solving these issues with data and analytics. The third is Automation: scaling those solutions to consumers worldwide, eradicating menial tasks from teams\u2019 plates, and enabling Mars to set up the infrastructure to support a digital retail universe.\u00a0<\/p>\n\n\n\n

Through organizational structure, improved eCommerce experiences, high-quality digital media content, personalization capabilities, and a robust marketing strategy<\/a>, Mars inc. is set to transform the DTC space, and completely overshadow conventional CPG distribution methods. <\/p>\n\n\n\n

New CPG Entrants Master DTC Strategy<\/h2>\n\n\n\n

While the CPG sector is often an uphill climb for smaller brands up against world-famous products and household names, newly established businesses have an advantage in being able to directly tackle current consumer expectations. While the pillars of the industry were forged generations ago, when affordability, accessibility, ease of use, and familiarity were (and in most cases, still are) key, today concerns of sustainability, health consciousness, and ethics, paired with the need for engaging, immersive brand communications, even competitive pricing, are becoming increasingly important considerations. Where more prominent brands struggle to alter systems and marketing to meet every need of modern-day consumers, new entrants can mold their business strategies around these new norms, striking iron where it\u2019s hot.<\/p>\n\n\n\n

\"Olipop\"<\/figure>\n\n\n\n