Published in Marketing
Big lessons from small brands

Rabobank expects the role and importance of corporate venture capital funds (CVC) to expand and include a greater focus on acquiring new skills and consumer insights. In many ways, 2019 was a watershed year for corporate venture capital, making this an appropriate moment to reflect on where we’ve seen successes and what lessons the industry is (or should be) learning.

Long-term fundamentals, including socioeconomic factors and government policies, will remain largely intact and positive,” according to Michelle Huang, Consumer Foods analyst. “VHMS players will adopt new strategies to respond to industry changes. This will cover nearly all aspects of the business, such as distribution, product development, innovation, branding, supply chains, and investment.”

Beyond the flurry of minority investments that CVC made in 2019, what stood out was the number of deals to take a controlling share of earlier minority share investments. The fact that these companies have decided they want a controlling share of these smaller companies indicates that CVC investments are performing well.

“However, while we believe that CVC are creating great value, we also see opportunity for beverage companies to continue refining their processes for bringing in and supporting early-stage brands to assure their long-term success. Perhaps equally important, we see opportunity for beverage companies to more effectively leverage the successful strategies and insights of the companies in which they invest to benefit the broader organization.” writes Steve Rannekleiv, Global Strategist – Beverages.

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