Meet the Insite AI Team at the CMA | SIMA Conference 2024

Meet the Insite AI Team at the CMA | SIMA Conference 2024

CMA | SIMA Conference | February 26-28, 2024 | Hyatt Regency, Dallas, TX

Innovation Wins: Retailers Prefer CPG Innovators, Embrace AI Now or Risk Falling Behind

In today’s rapidly evolving retail landscape, the tides are turning towards those who embrace innovation. Retailers are increasingly favoring forward-thinking brands, placing a premium on companies that leverage artificial intelligence (AI) and predictive analytics. In this era where data-driven insights and automation are reshaping the industry, CPGs are compelled to integrate AI into their strategies to not only meet current retail standards but also to secure their relevance and competitiveness in the future.

The message is clear: innovation wins, and the time is now for CPGs to align with the evolving retail landscape or risk losing ground in the competitive race for consumer attention and market share. Connect at CMA with Insite AI’s team who have walked in your shoes, sat across the desk from you and understand how to solve your unique challenges. We are former category leaders and executives from Coca-Cola, PepsiCo, Mars, Walmart, 7-Eleven, and Target (and many others). 

Connect at CMA

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How can we help?

  • Demand Forecasting – Withstand disruption on the horizon. Predict where demand is going.
  • Localized Assortments – Seamlessly create a hyperlocal shopping experience with precisely tailored product assortments.
  • Optimal Price & Trade Promotions – Make the best pricing and promo decisions to capture maximum share.
  • Master Joint Business Planning – Improve collaboration with your retail partners and master your next JBP session.
  • Grow Space – Strategically grow and optimize shelf space.

Meet our Team:

View on LinkedIn

Brooke Hodierne

EVP, Strategy Consulting

Former SVP of Merchandising at 7-Eleven, Brooke brings nearly 20 years of grocery and convenience retail experience to Insite AI. She understands what it takes to build valuable partnerships with retailers, and in her role as EVP of Strategy Consulting, she advises consumer brands on ways to elevate strategic business planning, achieve category leadership, and create optimal shopping experiences for their consumers.

View on LinkedIn

Capri Brixey

EVP, Strategy Consulting

Former leader at Coca-Cola, Dr Pepper Snapple, and Delhaize, Capri brings extensive strategic leadership experience from both retail and supplier roles in the consumer goods industry. She was recognized as a Senior-Level Top Woman in Convenience in 2022 and has also received recognition for her leadership in collaborative/joint business planning with top retailers across multiple channels and formats.

View on LinkedIn

Kristine Joji

EVP, Strategy Consulting

Kristine is a highly accomplished retail executive and former VP of Merchandising at Walmart.  Kristine led strategic initiatives that resulted in substantial revenue growth for the company across Grocery and prior to that Personal Care.  Widely recognized as a visionary leader, she played a pivotal role in optimizing Walmart’s merchandising with large CPGs.

An End-to-End AI-Powered Prediction and Optimization Engine

All running within your cloud environment so you can continually learn and optimize in real time, based on actual data and events, to drive meaningful growth.

Hosted Within Your Cloud Environment

Everything is done within your cloud environment, which allows you to remain in charge. You can review and use the outputs in whichever system, tool, or format you prefer.

Deeply Tailored to Meet Your Goals

Our fully customizable solutions are built to solve your unique challenges, enabling you to adapt quickly to changing market conditions and outperform their competition.

Most Mature, CPG-Proven Capabilities

Unlike legacy retail tech companies that build solutions for retailers, our solutions are are uniquely tailored for Consumer Packaged Goods (CPGs).

A Consultative Approach

Our team becomes an extension of your team. Our Strategic Advisors are consumer brand and retail veterans from PepsiCo, Mars, Anheuser-Busch InBev, Walmart, Target, 7-Eleven, Kroger, among dozens of others. Our top priority is ensuring you have the guidance and support you need to achieve your goals and maximize the value of your investment.

Optimization

Business rules can be built, reused, or modified at any time to keep up with changing demands and meet evolving challenges. Or, let Insite AI take everything into consideration and then make autonomous decisions

Decisions Over Insights

Other providers give you predictions or suggestions, forcing you to determine which actions to take. Insite AI simulates every scenario, then serves you the best decisions with which actions to take so you can act more quickly with confidence.

Four Trends That Will Drive CPGs To Adopt AI in 2024

While food retailers have been actively utilizing AI to forecast shopper behavior and streamline supply chains, the adoption rate among consumer brands lags behind. In this article, we discuss four key trends that will drive CPGs to adopt AI in 2024 and beyond.

About the Author:

Brooke Hodierne serves as EVP of strategy consulting for Insite AI. She previously worked at 7-Eleven as SVP of merchandising for the leading c-store. Before joining 7-Eleven, she held multiple positions at Giant Eagle, notably as VP of own brands.

More than Halloween: Maximizing consumer trends in candy

A recent Advantage Solutions survey of Halloween shopping habits found that more than a third of shoppers reported price as their main purchase driver—the top ranking influence within the survey.

In this article, Brooke Hodierne (former SVP of Merchandising at 7-Eleven), shares recommendations for candy brands can make more informed pricing decisions, maximize their presence in stores, and collaborate with retailers to foster continued growth in the candy category beyond Halloween.

View full article featured on Candy Industry.

About the Author

Brooke Hodierne serves as EVP of strategy consulting for Insite AI. She previously worked at 7-Eleven as SVP of merchandising for the leading c-store. Before joining 7-Eleven, she held multiple positions at Giant Eagle, notably as VP of own brands. 

CPG Matters: Providing Opportunities for Wine Brands Using Machine Learning and Predictive Analytics

With so many entities at play and data sources from retailers, distributors, third-party providers and much more, brands can leverage AI to harmonize the data and deliver recommended strategies on what wines will sell best in what regions. In addition, AI can be modeled by brand teams to factor in state regulations and insights such as product availability within the distributor networks.

View full article by Capri Brixey.

About the Author

Capri Brixey (a former VP of Sales at Coca-Cola) is currently EVP of Strategy Consulting at Insite AI, which focuses on enabling sales, revenue growth and category management for large consumer brands.  For more information, please visit www.insite.ai.

Unlocking the Full Potential of Walmart Luminate through AI

Walmart Luminate highlights what’s happened inside the store and online like never before. Insite AI emphasizes what to do next with the data.

Walmart Luminate is a game-changing data platform that shines a light into a deep, dark data void, where no CPG has had visibility before. The platform delivers shopper insights, product performance and channel data such as pickup and delivery orders across 140 million households — weekly.

The platform is revolutionizing how brands use data to reach their consumers, but Insite AI can help unlock even more potential within the data. For example, Walmart Luminate highlights what’s happened inside the store and online like never before. Insite AI emphasizes what to do next with the data. Insite AI’s machine learning and AI models provide a forward-looking tactical layer on top of the Walmart data. Brands can see how a change in pricing, promotions or pack sizes will alter their course in the marketplace.

Walmart Luminate delivers the data. We help you put it in motion.

Walmart Luminate and Insite AI at work

Having spent nearly 20 years of my career at Walmart, most recently as the VP of merchandising in dry grocery, as well as working within bakery, personal care and other categories, I have been fortunate to see Walmart pilot and cultivate the Walmart Luminate program.

I also have a tremendous amount of experience working with brands to grow and maneuver within Walmart. I mention this, because alongside Brooke Hodierne, who was SVP of merchandising at 7-Eleven, and Capri Brixey, who was a former leader at Coca-Cola, we add a human element to the numbers. We overlay business intuition and consultation as a result of our deep and diverse business backgrounds.

With that said, let’s look at some hypothetical scenarios where Walmart Luminate and Insite AI can work together to help brands get better results.

  • Product innovation. A snack food brand uses Walmart Luminate to look at larger category trends and in the process identifies a competitive product making waves. The new challenger brand delivers higher protein content and is more affordable. In response, the snack food brand has decided to create a new line of products with 10 more grams of protein. Insite AI can help that brand forecast a range of scenarios on how a certain pack size would perform against that competitor. What pricing would work better? Would a specific promotion generate more sales at launch, and how will it be performing months down the line?
  • Brand-switching behavior. Walmart Luminate delivers a weekly report to a detergent brand that shows the detergent was out of stock in a specific region of the country. It also shows what percentage of households switched to a new brand because of the out-of-stock product, highlights what brand the households bought and shares more in-depth analysis. Insite AI can then layer in predictive market analytics around demand forecasting in consumer segments and parts of the country to help the detergent brand see where its brand loyalty lies and how to effectively respond.
  • Delivery trends. Within Walmart Luminate’s data is a look at online transactions for delivery and pickup at the store, and a beer brand, for example, can narrow in to see if there was a spike in delivery during the first Sunday of the NFL football season. What brand had the highest delivery? Which brands lagged? At what time of the day did the deliveries occur most? Insite AI can layer on the tactical to see if the trend will continue and deliver efficient forecasts on what types of promotions or moves can be made to accelerate the trend and predict when out of stocks may occur.

Factor in all the categories and shopping behaviors happening daily inside a Walmart, and the scenarios facing brands are endless. Walmart Luminate works with brands of all sizes, offering a free package with limited insights. There is a monetized version which provides customer decision trees, leakage trees and real-time insights across 140 million households.

No doubt, the data platform will grow. Insite AI will grow alongside it, working with CPGs to help solve their challenges.

Unprecedented data and insights

No other data platforms deliver a view into online delivery and pickup behaviors, giving Walmart Luminate a major competitive advantage. Before Walmart Luminate, CPGs had to rely on panel data and qualitative data sets to try and spot a trend.

But the panel data is tens of thousands of households, and the data is months old. Brands have done excellent work with panel data but it can also be tricky. The results rely on how the panel responds, and sometimes people say what they want you to hear, or the subset of people in the panel isn’t very broad, in my opinion.

Walmart Luminate offers brands data at scale, and the data presents a complete picture of shopper behaviors and households. The data withholds any identifiable information of a shopper, but it represents 140 million households across income levels and ethnicities shopping at Walmart stores. CPGs have at their fingertips truly robust data.

Insite AI can help brands take this data even further. Contact us to see how we can leverage AI and predictive analytics and help you turn insights from Walmart Luminate into immediate action.

The Candy Aisle Renaissance: From Impulse Buys to Strategic Category Growth

Insights help arm a brand with the knowledge that can lift an entire category for a retailer, earning them category advisor roles at coveted retailers. 

The candy category is much more than the Halloween season and the impulse rack at the checkout lane. It’s an innovative $43 billion business, increasing sales annually, partly due to inflation, but also due to consumers seeking an affordable way to treat themselves. Retailers too are developing a larger in-store presence for the category.

I know this from my days as SVP of merchandising at 7-Eleven, where we frequently leaned on candy to deliver innovative opportunities for sales growth inside the stores.

For candy brands, however, navigating the shifts in consumer behavior can be difficult, knowing that the products are largely bought on impulse. How do you effectively target a consumer who may not know they want that sweet treat yet?

On top of that, brands need to understand behavior shifts at a wide range of retailers such as mass merchants, club stores, traditional grocers, c-stores, drugstores, dollar stores and hard discounters — and even sporting goods and apparel are in the game.

Factor in consumer trends such as seeking smaller pack sizes and using social media for inspiration, and predictive analytics and machine learning can become major tools to help craft a winning candy strategy.

Uncover candy trends

According to a report this year from the National Confectioners Association (NCA), annual sales in both non-chocolate candies and the gum/mints categories increased by nearly 14%, comparing 2022 annual sales to 2021.

At 7-Eleven, I saw my fair share of wild flavors in novelty non-chocolate candies, sour chewy offerings and hard candies driving these sales and reaching a growing interest among millennial and Gen Z markets. But there are other behavioral trends and product trends to take note of, too:

  • Portion control. According to the NCA report, eight in 10 consumers seek smaller pack sizes to help curb how much they eat. The report also noted that consumers are seeking guidance from brands on appropriate portion sizes, factoring in calories, sugar and the impact of natural ingredients.
  • Healthier and functional candy. Consumers are increasingly looking for candies that offer health benefits, such as low-sugar, sugar-free, organic and fortified options. Functional candies with added vitamins, probiotics or other health-promoting ingredients are gaining popularity.
  • Nostalgia brands. Nostalgic or retro brand candies from the past continue to make a comeback, appealing to consumers who want to relive childhood memories through their favorite sweets.
  • Multi-channel purchases. The NCA report found nearly 60% of consumers said they buy candy at checkout in the impulse section, but they’re also buying in three to four different channels. Less than 10% of consumers exclusively buy candy online, but a third said they buy in-store and online.
  • Social presence. Candy consumers are active on social media, with nearly 60% of consumers surveyed in the NCA study saying they access their networks for inspiration on products to buy or use with recipes, and to simply engage with the brand. Candy brands are increasingly leveraging social media platforms and partnering with influencers to expand reach and engage with their target audiences.

Considering these trends, candy brands have a lot of shifting behaviors to wade through. However, this is where predictive analytics, AI, and machine learning can help them figure out which trends to pursue, at which retailers and in what ways. Brands can develop smarter strategies around pricing, promotions, and where to put products at checkout and in the candy aisle.

Brands can feed AI-powered engines a mountain of varying data: social listening, POS, shipment data, third-party global trend forecasts, loyalty information and more. The AI model reads the data and directives from the brand teams on price elasticity, promotions strategies, assortment optimization and other inputs to recommend decisions for their brand goals and category growth overall.

Let’s repeat that last part: the insights help arm a brand with the knowledge that can lift an entire category for a retailer, earning them category advisor roles at coveted retailers. 

Sweeten sales for retail partners

As noted from the NCA data earlier, most consumers still rely on the checkout lanes for their impulse candy purchases. However, the data also states nearly 80% frequent the candy aisle, where retailers have been expanding assortments to bring more excitement to the category.

Major players like Walmart and Kroger have constructed expansive in-aisle sets for candy that push the retailers to become candy destinations, perhaps challenging c-stores and drugstores that have been often associated as a primary purchase destination for the category.

Part of this pivot from large format retailers is also to compete with value chains and general merchandise retailers also carrying candy. What’s more, the consumer behaviors around candy are much more than the impulse buy at checkout. Consumers are adding candy to their shopping lists as more wholesome ingredients make it a more acceptable indulgent treat.

Candy brands can help retailers make sense of consumer behavior changes by bringing AI-powered, robust data-driven insights such as:

  • Should chocolate continue to receive the amount of space it’s getting based on its space elasticity?
  • Is there room for expandable consumption inside stores, meaning can the store offer more candy even when they don’t need it, lifting a retailer’s bottom line?
  • How much play should mini-size packages get, and should they be in bulk packages for consumers buying for extended at-home consumption?

Fine-tuned predictive analytics can answer these questions, helping brands develop the right products for their company’s success and sweeten sales for their retailer partners.

AI-powered platforms can change how candy brands work with retail partners, elevating a category from checkout lane to major players with grand merchandising sets and powerful growth strategies.

Dig deep with data

In today’s dynamic and highly competitive market, candy brands are constantly seeking innovative ways to stay ahead. With predictive data, brands can accurately forecast consumer demand, anticipate market trends and tailor their assortments accordingly. Not only does this enhance profitability but it fosters a more personalized and satisfying experience for candy enthusiasts.

AI-powered platforms can change how candy brands work with retail partners, elevating a category from checkout lane to major players with grand merchandising sets and powerful growth strategies.

Sweeten your brand’s success and elevate your brand with AI-powered insights, contact us to learn how.


Connect at Groceryshop

Connect at Groceryshop

Accelerate Your Sales, Revenue Growth, and Category Management Initiatives

Groceryshop | September 19-21, 2023 | Mandalay Bay, Las Vegas

Connect with Insite AI at Groceryshop and find out how our revolutionary approach can accelerate your top initiatives. Our team of AI and strategic consulting teams have walked in your shoes, giving them unparalleled insights into your industry-specific hurdles. Our Strategic Advisors are consumer brand and retail veterans from Coca-Cola, PepsiCo, Mars, Anheuser-Busch InBev, Walmart, Target, 7-Eleven, Kroger, among dozens of others.

Let us guide you in tackling your organization’s distinct challenges head-on. Through our collaborative approach, we craft a tailored solution to elevate your product assortment, pricing strategies, trade promotions, and demand forecasting.

Don’t miss this opportunity to expedite your success and lead your organization toward a more efficient and profitable future.

The Leading Partner for Large Consumer Brands

Know the precise impact of your decisions.

We’re the only partner that lets you dial in multiple scenarios, and confidently predict how they would perform on a forward looking basis against multiple KPIs, with details down to the most granular level, regardless of complexity. Make confident decisions at either the big-picture strategic or tactical level involving commercial aspects such as assortment, pricing, trade, space, and planning. In one click, foresee the results of exactly what will happen in any given scenario. Our unique capabilities take in multiple conditions and assumptions; alternatively, decision makers can rely on us to leverage the technology on their behalf. Act with extreme certainty, speed, save significant time, and ensure your actions will achieve commercial results.

Define your specific objectives, and receive new and creative ways to reach them.

Are you seeking to grow volume? Maximize prices? Grow shelf space? Improve trade effectiveness? Outperform a competitor? Rationalize spend? Our capabilities “goal seek” the exact new strategies or tactical outputs to achieve this, taking into account all of your business dynamics, beliefs, and nuances. Get multiple novel strategies that are truly implementable and actionable. Fuse your vision with our technological levers that incorporate an incredible number of factors. See the forward looking and granular articulation on the recommendation’s performance. This is something any large team of experts aren’t capable of.

Explainable assortment, space, pricing, and trade promotion decisions.

Harmonizing data and searching it for insights is old news, and few companies see value from it. We provide internal and external narratives that are defensible and truly differentiated. In one click, our capabilities explain and decompose the “why” on a forward-looking basis; and the data is presented in a powerful, immediately understandable manner. Incrementality, demand transference, price elasticities, cross elasticities, attributions, shifts, patterns, and factors affecting your existing or recommended actions are clearly articulated.


Connect at Groceryshop

Name(Required)

Meet our Team:

View on LinkedIn

Brooke Hodierne

EVP, Strategy Consulting

Former SVP of Merchandising at 7-Eleven, Brooke brings nearly 20 years of grocery and convenience retail experience to Insite AI. She understands what it takes to build valuable partnerships with retailers, and in her role as EVP of Strategy Consulting, she advises consumer brands on ways to elevate strategic business planning, achieve category leadership, and create optimal shopping experiences for their consumers.

View on LinkedIn

Capri Brixey

EVP, Strategy Consulting

Former leader at Coca-Cola, Dr Pepper Snapple, and Delhaize, Capri brings extensive strategic leadership experience from both retail and supplier roles in the consumer goods industry. She was recognized as a Senior-Level Top Woman in Convenience in 2022 and has also received recognition for her leadership in collaborative/joint business planning with top retailers across multiple channels and formats.

View on LinkedIn

Kristine Joji

EVP, Strategy Consulting

Kristine is a highly accomplished retail executive and former VP of Merchandising at Walmart.  Kristine led strategic initiatives that resulted in substantial revenue growth for the company across Grocery and prior to that Personal Care.  Widely recognized as a visionary leader, she played a pivotal role in optimizing Walmart’s merchandising with large CPGs.

Why Insite AI?

A Consultative Approach

Our team becomes an extension of your team. Our Strategic Advisors are consumer brand and retail veterans from PepsiCo, Mars, Anheuser-Busch InBev, Walmart, Target, 7-Eleven, Kroger, among dozens of others. Our top priority is ensuring you have the guidance and support you need to achieve your goals and maximize the value of your investment.

Most Mature, CPG-Proven Capabilities

Everyone else starts from scratch, yet Insite AI has already invested over eight figures of capital and several years into building leading edge technology; creating unmatched advantages for tackling your top initiatives.

Deeply Tailored to Meet Your Goals

We deeply tailor our engagements and fully configure our solutions to meet the unique needs of your brand. Insite AI is a true innovation partner providing CPGs with fully customizable solutions built to solve their unique challenges, enabling them to adapt quickly to changing market conditions and outperform their competition.

The Do’s and Don’ts of Joint Business Planning

Do not report the news. Simply reporting out category performance as up or down in volume and dollars vs year ago is ‘news,’ not insights.

In the dynamic world of retail, collaboration is key to success. During a recent panel discussion, Mastering Joint Business Planning: An Insider’s Guide, we sat down with a former VP of Sales at Coca-Cola, Capri Brixey, and a former VP of Merchandising at Walmart, Kristine Joji, to share their experience and insights into what makes a successful JBP. 

Below are some key “do’s” and “don’ts”—both practical and technical—that they shared, which can help CPGs master JBP scenarios, improve your retail partnerships, and grow your mutual profitability:

1. Understand the retailer’s plan

Entering a planning session with just the CPG’s agenda can quickly derail a conversation and lead to an unproductive meeting. Bringing a true desire to understand both parties’ needs (and being equipped for effective discovery to that end), CPGs can ensure that their own plans align with the retailer’s strategy and priorities. 

2. Use credible insights

Do not report the news. Simply reporting out category performance as up or down in volume and dollars vs year ago is ‘news,’ not insights. Data is just data. Retailers need to understand the why and the what. Indicate what happened, why it happened and what should be done next. Anyone can pull a report. The beauty is in taking numbers, overlaying and integrating insights, trends, data and analytics and helping people understand what happened and what is happening so they can create meaningful action for the future. Insights should be foundational to every phase of the planning process, from the beginning when both organizations are trying to understand priorities, to the end when tactics and solutions are being created to drive business.

3. Don’t always paint a rosy picture

Insights may reveal, for example, that while a product was projected to perform well and provide incrementality, instead performance was below expectations and demand transferred to another product or was cannibalizing existing items. Bringing objective, robust data and facts helps build trust and transparency. Being willing to collaboratively find mutual wins through data elevates partnership and strategic thought leadership. It shows that a CPG is data led and insights driven, that it understands the customer, environment and what is happening now.

4. Offer potential solutions

Use of AI tools allows CPGs to stitch together myriad pieces of data in real time, aligning them with trends and insights. This lets CPGs accurately tell retailers: 

  • What their theory was.
  • What the data is.
  • What they know is really happening.
  • What can be done about it.
  • What the CPG’s recommendation is so the partners can mutually grow their business and the category.

5. Build a specific, tactical plan to deliver on what was committed

This aligned plan  should be the foundation of the partnership. It should involve everything that was agreed upon, as tactical as shelf placement, pricing and promotions, or as strategic as broad expectations for overall contribution/performance and how the organizations will engage. Then, regular checkpoints should be set to ensure the strategy remains on track, with flexibility and agility to respond to events and trends in the market. Disruptions can be small or on the scale of  the war in the Ukraine or Covid-19. In these types of cases, both organizations must ask—and answer—“Where are we now and how do we pivot to ensure we can still deliver our plan together?” 

6. Leverage AI to run “what if” scenarios

CPGs can leverage AI to run “what if” scenarios in real time. This can foster forward thinking, collaborative conversations with retailers. Data accounts for the many moves retailers can make on their chessboard. This gives them more clarity, so they can develop rich category plans. Using technology to detail the “why” and sharing explanations also helps buyers explain decisions to their leadership teams.

7. Drive collaboration

The goal of JBP is to drive collaboration. If CPGs are not weighing mutual growth, mutual priorities and planning ahead, they can be derailed by many unforeseen events. They need to be agile. Working through the process and knowing where the finish line should be and planning towards it are key components of success.

8. Deliver a better shopping experience for consumers

Retailers want to know how their CPG partners will be more consumer centric. CPGs can create a more personalized consumer experience by leveraging advanced AI capabilities. These AI-driven assortments, pricing, and promotions empower CPGs to craft shopping experiences that not only satisfy customers but also foster long-term loyalty. 

Conclusion

Thoroughly analyzing data reveals a predictive view of entire product categories, going beyond just looking at individual brands. A supplier that is driven by insights and data, promoting its own growth as well as that of the category and the entire industry, stands out as a clear trailblazer. These carefully obtained insights not only have weight but also solidify the supplier’s image as a strategic thought leader. Retailers will naturally lean toward their most developed partners,  elevated by trust and true transparency in insights and data.

The insights shared in this article were presented at a recent panel discussion featuring Kristine Joji and Capri Brixey, EVPs of strategy consulting at Insite AI. The event was moderated by Jackie Lewis, VP of content at the Category Management Association. To view the full presentation, click here

 

Fueling Growth: AI Unleashed in the Energy Drink Industry

Whether its volume, shifting brand loyalty or cross category migration, retailers need to know what will happen next—not yesterday–to maximize profits in valuable selling space. 

The energy market has evolved considerably over the last 30 years. While many suppliers have disappeared, the number of new entrants continues to rise. With increased competition and what seems like constant innovation, consumer preferences and shopping patterns continue to evolve with the category. Without infinite space,  retailers are under pressure to design the optimal assortment with the best combination of SKUs, flavors, brands and package sizes to maximize selling space and win the most consumer dollars. 

In six months, the landscape for this rapidly evolving segment may look dramatically different. Whether its volume, shifting brand loyalty or cross category migration, retailers need to know what will happen next—not yesterday–to maximize profits in valuable selling space. 

A Profitable Segment

Constant category changes can make it challenging to stock the right SKUs. In addition to the continual bombardment of new products and suppliers, Covid-era shopping patterns have shifted back to normal. With only a handful of brands having long-term staying power, retailers continually ask themselves, “How do I balance my assortment of core brands/flavors with new ones?” and “How many cooler doors do I utilize for energy drinks versus other beverages?”

Choosing the right size cans and multi-packs is another dilemma. During Covid-19, purchasing of multi-packs and larger pack sizes increased as more consumers drank beverages at home. Today, retailers must meet the needs of changing consumer mobility patterns, with increased shifting purchasing behaviors between immediate consumption to at home consumption. While in-line square footage is a bit flexible, cooler space is fixed.

AI can help indicate what flavors, package sizes and formulations will resonate with certain groups.

Demanding More Space

The growing energy drink industry continues demanding more square footage. But brands must “prove” their entitlement. Traditionally, suppliers used historic data to make predictions. But, more so than most other CPG categories, the energy drink market is in a constant state of flux, making this data seriously unreliable. AI tools use real time data, allowing vendors to more accurately predict how many items will sell in what space and which will perform best moving forward versus looking backwards. 

AI can provide a granular level of clarity around purchase decisions and consumer preferences. As the energy segment evolves with added need states, functionalities, and more, understanding the ‘why behind the buy’ becomes crucial for achieving long-term category success

Consumers’ preference for new brands and formulations versus legacy brands varies by store, channel and demographics. AI can indicate which shoppers stick with tried-and-true labels and which ones are more adventurous. Using data points to form useful insights, AI can help indicate what flavors, package sizes and formulations will resonate with certain groups.

AI’s ability to track shifting purchasing patterns yields data that can dramatically impact suppliers’ go-to-market strategies. When brand is not the primary motivator, it can help retailers avoid duplicating similar flavors, package sizes and formulations. Consequently, space becomes more profitable.

AI can predict which shoppers will remain loyal to energy drinks and which will not.

The Right Price

Over the past 18 months, cost increases have impacted almost every consumer category. While products must be profitable, brands must clearly understand the impact raising prices can have on shopper demand. AI can help. If the everyday retail price increases from $2.49 to $2.69, for example, AI can clearly project new sales volume. AI can also compare pricing to that of competitors. This helps retailers assess consumers’ sensitivity to particular prices, including associated risks. This is a win for both supplier and retailer.

Technology and modeling strategies can cross categories. The increased consumer need-state for Energy has caused a surge of other cross- category entrants in the added caffeine space. Where typically, brands focused on hydration benefits, we see more brands entering the space. But some newer items contain high caffeine levels, blurring the lines between categories and threatening energy drinks’ market share if energy drink prices go too high. 

AI can predict which shoppers will remain loyal to energy drinks and which will not. It can also determine what this means to the vendor’s base business and how the vendor can protect and defend its energy space. 

Immediate Consumption vs. Planned Purchasing

As consumer household penetration for Energy drinks continues to grow, developing broad brush pricing strategies for all channels from a historical POV will limit opportunities. Some retailers are losing traffic. Higher prices are prompting many consumers to plan purchasing online or in discount, club and grocery channels. These purchases frequently involve more economical multi-packs. Data and predictive modeling can track cross-channel migration and associated purchasing behavior. And it can do so down to the individual flavor, ingredient profile, brand and package type level.

Conclusion

In the dynamic world of energy drinks, AI holds the key to success. With the market ever-evolving and competition intensifying, the optimal assortment is crucial to attract customers and maximize profits. AI offers real-time data to predict consumer behavior, helping brands to make informed decisions on SKUs, flavors, and pricing. By discerning brand preferences, tracking shifting patterns, and unlocking cross-category insights, AI elevates strategic planning to new heights.

Embrace the AI advantage to secure lasting success in this dynamic landscape. Contact Insite AI.

Refine Wine: Navigating Regional Preferences With Precision

The intricacies of the wine category make it one of the most complex to manage. AI and machine learning can help brands cut through the complexities and get the right wine onto the right shelves at the right time.

Unlike the beer category, where summer sales can make or break a brand, wine experiences less seasonal volatility. Instead, brands are tasked with answering cyclical purchasing trends among different varietals year-round. Further, consumers have very distinct preferences across geographic regions that brands need to keep in mind.

Throw in heavy state-by-state regulations, pricing compliance, and managing product availability through distributors, and wine is one full-bodied, complex category.

Even though there are a lot of variables to consider for wine brands, the ultimate mission is the same: optimize product, placement, and pricing. AI and machine learning can help brands cut through the complexities and get the right bottles (or boxes, cans and any other emerging packaging style) onto the right shelves at the right time.

Here’s how AI-enabled technology can refine the wine category and accelerate the most critical opportunity metrics.

AI harmonizes massive amounts of data

One thing wine does have in common with beer is there are a lot of brands competing in the space, and it can be tough for consumers to decide what to buy. For brands, it can be equally confusing to strategically assess what products should go where — and which ones can’t go where based on distributor input and state-by-state regulatory compliance.

The level of data that brands are working with is a highly complex stew, overwhelming in its diversity and complexity, that AI can harmonize and distill to deliver simplified, optimized, and precise product recommendations at a granular, even store level. Each state and distributor network has a matrix of stores and retailers they serve, sliced by state line, retailer requirements, and wineries and distilleries.

Just navigating excellence in execution within this complex web is difficult. Brands are often short on resources and capacity thresholds to properly elevate strategic assortment optimization based on consumer behavior and preferences.

With AI-enablement, that overwhelming digital debt can be managed, breaking the silos between data and functions, regulatory compliance, and complex distributor networks and availability of inventory. Using billions of data points, AI/ML delivers pinpoint forecasting and recommendations on where products should go.

For example, one retailer may have several distributors delivering wine to one store. It presents a tremendous amount of data overlays to manage. Brands can help by harmonizing the data they have from their distribution partners and more to create models for that buyer, factoring in sales and distinct distributor data to deliver highly intelligent strategic assortment plans that the industry has not seen before.

The result was a 3% lift in sales for the overall category in those retailers, growing annual revenue by $20 million.

Product and Placement: Identify preferences across regions

As mentioned above, where wine gets tricky is getting products out to the right regions. For example, there are nearly 7,500 wineries in the U.S., up nearly 4% from 2022. Each winery sells better in different parts of the country.

Wine is very regional by nature, so it’s not surprising that wine drinkers in Michigan may prefer wines produced nearby vs. in northern California, where consumers may prefer other wine attributes.

But AI allows for more granularity than that. AI can recommend products to place by store clusters or at individual stores, knowing what customers like and what distributors are able to deliver to precisely place the best options available. 

Insite AI worked with a national beer brand to optimize the craft beer assortment inside two leading grocery chains to leverage the peak summer season. The result was a 3% lift in sales for the overall category in those retailers, growing annual revenue by $20 million.

While the wine category can have additional variables in play, it doesn’t mean brands and retailers can’t see similar optimization and granular-insight-driven success.

Pricing and Promotion: Optimize premium to value brands

Another issue in wine is the wide-ranging price points in the category. AI helps brands understand elasticities of price across a diverse category. Again, what price points work best across varietals and regions can be very different.

The economies of scale are not a benefit or a factor in wine; to drive incremental and sustainable growth, brands need to take a localized approach. It can be very time-consuming using legacy models to devise pricing and promotion strategies. AI/ML can recommend precise moves in seconds.

There’s the saying that wine gets better with age. That may be true in a home cellar, but retailers need to move product, know trends and what sells better during certain seasons. Distributors play a key role here in revenue growth management by deploying similarly effective AI/ML strategies to predict what will generate the greatest returns.

Uncork efficiencies with AI

The intricacies of the wine category make it one of the most complex to manage. Regulations by state, in addition to working through multiple distributors to get as much product coverage as possible is a challenge.

There’s an increasing benefit for larger wineries to partner with specialized distributors that have a wider network across states, too. Recently, several wineries have formalized more exclusive distributor partnerships to gain simpler, and broader coverage.

While the complexity can be high, the benefits of new technology in managing it makes the possibilities for incremental growth in addition to significant advancement in efficiencies across multiple business functions considerable.

Wine brands can leverage AI to forecast demand and predict strategies that better meet the needs of the value chain. Contact Insite AI to learn how AI-powered solutions can get more granular than ever imagined in a category where granularity is a must.