How Tiny Startups Like Hello and 800Razors Are Stealing Share From CPG Giants


Craig Dubitsky may represent big packaged-goods companies’ worst nightmare, but there’s a good chance they may not have even noticed him. He’s a small part of a big movement — an insurgent group of digitally enabled entrepreneurs gnawing away at the dominance of multibillion-dollar brands and their giant marketing budgets.

The former commodity trader has been nosing around their turf for over a decade. Mr. Dubitsky, age 47, became a board member and adviser to Method, maker of green cleaning products, when its founders were still working out of their apartment in 2001. Later he co-founded lip-balm marketer Eos (Evolution of Smooth); joined the board of alternative over-the-counter drug marketer Help Remedies; served as chief marketer of snack startup Popcorn Indiana; and most recently founded Hello oral-care products.

Individually, none of those brands pose an existential threat to the behemoths of packaged goods. Collectively, they and many more like them are having a big impact. Small and midsize firms took 1.6 share points, or nearly $10 billion in sales, from the packaged-goods behemoths over three post-recession years from 2009 to 2012, according to a report from IRI and Boston Consulting Group. The smaller the players, the bigger the impact: Companies with sales of less than $100 million gained the most and the share shift accelerated over time (see chart).

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Via AdAge

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Lars M. B. Anthonisen is Regional Business Lead, Southeast Asia Strategic Accounts at Google. Previously, he held various digital marketing positions at media companies across Europe and Asia including Regional Digital Director at MediaCom APAC, Marketing Director at Adform and Digital Manager at Universal McCann Worldwide.

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