Focus, scale, fund: The AI playbook CPG leaders are missing

The CPG food and beverage sector faces a structural shift marked by a trillion-dollar loss in enterprise value and stagnant volume growth. Consumers are increasingly polarized, simultaneously trading down to private labels while splurging on premium, functional, or health-conscious products. Small, agile brands are capturing disproportionate growth by responding rapidly to these specific needs, whereas large incumbents struggle to replicate this speed and innovation. AI serves as a vital lever for funding future growth rather than merely cutting costs, provided organizations move beyond fragmented experimentation to scale specific domains like marketing and revenue management. Ultimately, long-term success requires a shift away from relying on historical brand equity toward delivering genuine product superiority, strategic portfolio choices, and data-driven volume expansion.