The first time Method co-founders Eric Ryan and Adam Lowry tried to sell their eco-friendly cleaning products into Target, the then-buyer told them the products had a “snowball’s chance in hell.” At the New General Market Summit, co-hosted by Drug Store News and Mack Elevation in April, Ryan acknowledged that while lucky breaks may have played a role, there were three key elements in Method’s business strategy that took them from that first meeting to more than $100 million in Target sales in 2016.
The question of how brands continue to remain relevant is one that is central among companies looking to make space for themselves among an ever-shifting consumer base. As companies look to engage the New General Market consumer, Seventh Generation CEO John Replogle said there is one key element uniting companies that are able to endure: Soul.
Retailers and their suppliers are squandering opportunities to grow their businesses together strategically, a former Target executive told attendees at the third annual New General Market Summit, hosted by Drug Store News and Mack Elevation. “The discussion between retail and CPGs has been reduced to one issue only: How much money are you going to give me? How much cost reduction can we get?” said Daniel Duty, founder and CEO of Minneapolis-based Conlego Consulting.
Supplements are providing the perfect complement to drug store retailers’ bottom lines. Including meal replacement bars, energy shots, protein shakes and diet aids, sales of dietary supplements and nutrition-packed products across the supplement aisle continued to grow at a healthy 4.7% clip with more than $13.4 billion in sales across total U.S. multi-outlets for the 52 weeks ended April 16, according to the latest IRI data.