7 Lessons Learnt From FMCG Giants That Growth-Focused Companies Can Adopt
Debbie Morrison • October 25, 2022

Growing a business is similar to gardening. You nurture it, spend hours taking care of each plant, and do your best to ensure its survival. And just like how every plant has different needs to grow, there are different ways to grow a business.


The FMCG industry is one of the most competitive industries in the world, with a market projection of $15 Billion by 2025. To survive and thrive in such a competitive environment, growth-focused FMCG companies have to learn from the successes and failures of the industry’s biggest players.


Here are 7 of the biggest lessons in the FMCG industry.


#1 — Don’t Underestimate the Importance of Innovation

Innovation is the key driver in generating more revenue in the FMCG industries. That’s why companies must constantly develop new products and services that capture consumers’ attention. Leveraging innovation gives you with an edge in the industry by increasing your profitability, productivity, and growth.


To make your products more innovative, you can focus on the following:


  • Create products that serve a new purpose or solve a new problem
  • Improve on existing products by making them better in terms of quality, design, or packaging
  • Create products that are unique in terms of taste, scent, or appearance


Coca-Cola is a great example of an FMCG industry that uses innovation to its advantage. Over the years, Coca-Cola has developed several innovative products, such as Ginger Coke, which launched in Australia in 2016. 


The limited-edition flavour was the product of consumer research which revealed a high crossover between cola and ginger ale shoppers in Australia. Doing so helped Coca-Cola capture the attention of its Australian consumers and drive revenue growth for the company.


#2 — Prioritise Marketing Efforts

A common mistake that FMCG companies make is underestimating the importance of marketing.


The most successful FMCG brands have excelled by combining digital and social media marketing efforts. FMCG companies that don’t have a solid digital marketing strategy risk losing out on potential customers to their competitors who actually have invested in gaining a foothold.


A great example of a company that excels at marketing is Unilever. The company has over 500 brands in its portfolio, including Cheetos, Quaker Oats, and Tropicana. In 2020 alone, Unilever invested around $7 billion in marketing, against $57.942 billion in revenue.


The company is also very active on social media, with over 100 million followers across its brands’ social media accounts. Indeed, Unilever has effectively integrated its digital and social media marketing efforts, which helped them reach a wider audience and promote its products more effectively. 


#3 — Build Trust Through Transparency

Over 94% of consumers say they prefer brands that offer transparency.


To get a hold of the majority of consumers, you want them to trust your brand—and being transparent about your products and manufacturing processes is a good way to do this. Therefore, FMCG brands need to be open and honest about what goes into their products and how they manufacture them.


Doing so allows companies to build trust with consumers, leading to brand loyalty and, eventually, higher sales. PepsiCo is a great example of a company that has built trust through transparency.


The company regularly publishes reports on its progress in terms of sustainability and environmental impact. It also provides detailed information on the ingredients used in its products and the manufacturing process. This allows consumers to make informed decisions about the products they buy and whether or not they want to support PepsiCo.


PepsiCo’s transparency efforts helped the company build a strong relationship with its consumers, which resulted in higher sales and brand loyalty. As a result, in 2021, PepsiCo’s annual revenue was $79.474 billion—a 12% increase from 2020.


#4 — Dominate the Local Market

Small businesses may not be able to go toe-to-toe against large multinational companies. But there’s one arena in which huge FMCG brands can’t compete with small businesses–and that’s being a local brand.

Local brands have the advantage of being familiar to consumers and tapping into the local market. So, focusing on dominating the local market is a way to succeed.


For example, Australians love their coffee and are very loyal to local coffee brands. Case in point, Starbucks failed in Australia because they couldn’t compete with domestic brands and didn’t understand the unique needs of the existing Australian coffee culture.


In order to dominate the local market, FMCG companies have to understand the local culture. Then, they can tailor their products and marketing efforts accordingly.


#5 — Work With A Team You Can Trust

In the FMCG industry, it’s especially vital to have a team of reliable professionals because of the fast-paced nature of the industry. Companies have to be able to adapt quickly to changes in the market and the needs of consumers. And having a team that you can trust will make it easier for you to make quick decisions and implement changes effectively.


As a growth-focused company, you need a strong team that can work together and support each other. As much as it’s costly to hire professionals to be part of your team, working with experts you can trust is vital to maintain the quality of your products and services. 

The bottom line is if you want to succeed as a growth-focused FMCG company, you need to surround yourself with a team of reliable professionals who can help you achieve your goals.


#6 — Understand Your Customers

It’s true, 42% of growing companies die because they focus on solving interesting problems instead of serving an existing market need. They are too caught up in creating products they believe their customers want rather than what they actually need.

In short, you don’t want your business to be too product-centric—you need to bring your ideas back down to Earth and make them more customer-centric.

A great way to understand your customers is by constantly communicating with them. To get feedback from your customers, you can use the following:

  • Surveys
  • Social media discussions
  • Customer service channels


Make sure you listen to what they say so that you can adjust your products accordingly.


An excellent example would be Nestlé. They eschew offering a single mass marketing mix to all their customers, in favor of separate marketing plans for each of their target markets. This tailored targeting has helped propel Nestlé into the ranks of the world’s leading FMCG companies, with a revenue of $95.70 billion in 2021.


#7 — Understand Your Competitors

As the old saying goes, “Keep your friends close and your enemies closer.” In the FMCG industry, it’s vital that you’re up-to-date with what your competitors are doing and be one step ahead of them.

Some ways you can stay ahead of your competitors are by:

  • Offering similar products at lower prices
  • Creating unique products that competitors don’t sell
  • Improving customer service


You can also use your competitor’s weaknesses to your advantage. For example, if they don’t have an online presence, that’s an opportunity for you to focus on digital marketing and tap into that market.


A great example is how Fonterra, a New Zealand-based FMCG company, outcompeted its rivals by focusing on digital marketing. Fonterra was one of the first FMCG companies to launch an e-commerce platform in China and focus on selling their products online.


By understanding the growing demand among Chinese consumers for premium milk from Europe, they were able to reach a wider audience and grow their business. In 2021, Fonterra’s revenue was 20.6 billion New Zealand dollars.


Grow Your Business With The Right Strategies

Running a business in a very competitive industry like FMCG is no easy feat. But, if you want your FMCG company to succeed, there are certain lessons you can learn from the giants in the industry.


Adopting the strategies of successful companies and learning from their failures will help you create a solid foundation for your business. From there, you can start to build your FMCG empire and achieve long-term success.


It’s no secret that the ability to innovate and adapt to changes is pivotal for FMCG companies to remain competitive in the years to come. And there’s no reason why your company can’t be an industry leaderーbut only with the right people leading your business.


At ELR Executive, we’ve spent the last two decades cultivating connections with the best professionals in the FMCG industry to help you succeed in this fast-changing world. So, if you’re ready to move your way up in the industry, we can help.



Reach out today to see how we can help you find the leadership you need to succeed. 


By John Elliott June 6, 2025
On paper, they were fully resourced. No complaints logged. No formal red flags. Delivery metrics holding steady. But behind closed doors, the signs were there. Delays. Fatigue. Silence in meetings where pushback used to live. And a growing sense that key people were leaning out, emotionally, if not yet physically. When the cracks finally showed, the conclusion was predictable: “We need more people.” But that wasn’t the real problem. The problem was trust. And most organisations never see it until it’s too late. The Hidden Cost of Disengagement In Gallup’s 2023 global workplace report , only 23% of employees worldwide reported being actively engaged at work. A staggering 59% identified as “quiet quitting”, psychologically detached, going through the motions, doing only what their job description demands. Source: Gallup Global Workplace Report 2023 Disengagement is expensive. But it’s also quiet. It doesn’t show up on a balance sheet. It doesn’t send a Slack message. Disengagement isn’t new, just silenced. And in executive teams, it looks different. It looks like polite agreement in strategy meetings. It looks like leaders shielding their teams from unrealistic demands, instead of confronting the system causing them. It looks like performance metrics still being met… while people emotionally check out. The issue isn’t always capability. It’s safety. Psychological, political, and professional. Many senior leaders don’t raise concerns, not because the problem isn’t real, but because they don’t believe they’ll be heard, supported, or protected if they do. And this is where the failure begins. The Leadership Lie No One Talks About We talk a lot about leadership capability. About experience, commercial acumen, execution strength. But we don’t talk enough about context. Every leadership hire walks into a culture they didn’t create. They inherit unwritten rules, quiet alliances, and legacy power structures. If those dynamics are broken, or if trust is fractured at the top, no amount of capability will compensate. According to a 2022 Deloitte mid-market survey, 64% of executives said culture was their top strategic priority. But only 27% said they actually measured it in a meaningful way. We say culture matters. But we rarely structure around it. And so new leaders walk in with pressure to perform, but little real insight into what the role will cost them emotionally, politically, or personally. We Don’t Hire for Trust. And It Shows. In executive search, the conversation is often dominated by pedigree and “fit.” But fit is often a euphemism for sameness. And sameness doesn't build trust, it maintains comfort. We rarely ask: Does this leader know how to build trust vertically and horizontally? Can they operate in a low-trust environment without becoming complicit? Will they challenge inherited silence, or unconsciously uphold it? Instead, we hire for confidence and clarity, traits that often mask what’s broken, rather than reveal it. And when those hires fail? We call it a mismatch. Or we cite the usual: “lack of alignment,” “wasn’t the right time,” “they didn’t land well with the team.” But the truth is often uglier: They were never set up to succeed. And no one told them until it was too late. The Cultural Infrastructure Is Missing One of the most damaging myths in leadership hiring is that great leaders will “make it work.” That if they’re tough enough, experienced enough, skilled enough, they’ll overcome any organisational dysfunction. But high-performance isn’t just personal. It’s systemic. It requires psychological safety. A clear mandate. The backing to make hard decisions. The freedom to speak the truth before it becomes a PR problem. When that infrastructure isn’t there, when the real power dynamics are unspoken, good leaders stop speaking too. And the silence spreads. What Trust Breakdown Really Looks Like Often, the signs of a trust breakdown don’t show up in dramatic ways. They surface subtly in patterns of underperformance that are easy to misread or excuse. You start to notice project delays, but no one flags the root cause. Teams keep things moving, quietly compensating for the bottlenecks rather than surfacing them. Not because they’re careless, but because they’ve learned that early honesty doesn’t always earn support. New leaders hesitate to make bold calls. Not because they lack conviction, but because the last time they did, they were left exposed. Board reports look flawless. Metrics track nicely. But spend five minutes on the floor, and the energy tells a different story. These are not resource issues. They’re relationship issues. And the data backs it. According to Gallup’s 2023 State of the Global Workplace report , just 23% of employees worldwide are actively engaged. Worse, around 60% are “quiet quitting.” That’s not just disengagement. It’s people doing only what’s safe, only what’s required, because trust has quietly eroded. Gallup also found that managers account for 70% of the variance in team engagement, a staggering figure that reinforces just how pivotal leadership trust is. When people don’t feel psychologically safe, they shut down. Not dramatically. Quietly. Invisibly. What’s breaking isn’t the org chart. It’s the ability to speak plainly and be heard. And by the time it’s visible? The damage is already done, and someone calls for a restructure. “Low engagement is estimated to cost the global economy $8.8 trillion, 9% of global GDP.” Gallup, State of the Global Workplace 2023 So What’s the Real Takeaway? If you’re seeing performance issues, before you jump to headcount, ask a different question: Do the leaders in this business feel safe enough to tell the truth? Because if they don’t, the data you’re reading isn’t real. And if they do, but you’re not acting on it, then they’ll stop telling you. Leadership doesn’t fail in obvious ways anymore. It fails in the gap between what people know and what they’re allowed to say. And the price of that silence? Missed opportunity. Reputational damage. Cultural decay. Sometimes, the problem isn’t who you hired. It’s what you’ve made it unsafe to say.
By John Elliott May 27, 2025
Why Culture Decay in FMCG Is a Silent Threat to Performance It doesn’t start with resignations. It starts with something much quieter. A head of operations stops raising small problems in weekly meetings. A sales lead no longer defends a risky new SKU. A team member who used to push ideas now just delivers what they’re asked. Nothing breaks. Nothing explodes. It just... slows. And from the outside, everything still looks fine. The illusion of stability In food and beverage manufacturing, where teams run lean and pressure is constant, performance often becomes the proxy for culture. If products are shipping, if margins are intact, if reviews are clean, the assumption is: we're good. But that assumption is dangerous. According to Gallup's 2023 global workplace report, only 23% of employees worldwide are actively engaged, while a staggering 59% are "quiet quitting ", doing just enough to get by, with no emotional investment. And in Australia? Engagement has declined three years in a row. In a mid-market FMCG business, those numbers rarely show up on dashboards. But they show up in other ways: New ideas stall at the concept phase Team members stop challenging assumptions Execution becomes rigid instead of agile Everyone is "aligned" but no one is energised And by the time the board sees a drop in revenue, the belief that once drove the business is already gone. The emotional cost of cultural silence One thing we don’t talk about enough is what this does to leadership. When energy drains, leaders often become isolated. Not because they want to be, but because the organisation has lost the instinct to challenge, question, or stretch. I’ve seen CEOs second-guessing themselves in rooms full of agreement. Seen GMs miss red flags because nobody wanted to be "the problem". Seen founders mistake quiet delivery for deep buy-in. The emotional toll of unspoken disengagement is real. You’re surrounded by people doing their jobs. But no one’s really in it with you. And eventually, leaders stop stretching too. We train people to disengage without realising it Here’s the contradiction that most organisations won’t admit: We say we want initiative, but we reward obedience. The safest people get promoted The optimists get extra work The truth-tellers get labelled difficult So people learn to conserve energy. They learn not to challenge ideas that won’t land. They learn not to flag risks that won’t be heard. And over time, they stop showing up with their full selves. This isn't resistance. It's protection. And it becomes the default when innovation is punished, risk isn't buffered, and "alignment" becomes code for silence. Boards rarely see it in time Boards don’t ask about belief. They ask about performance. But belief is what drives performance. When culture begins to fade, it doesn't look like chaos. It looks like calm. It looks like compliance. But underneath, the organisation is hollowing out. By the time a board notices the energy is gone, it’s often because the financials have turned, and by then, the people who could've helped reverse the trend have already left. In a 2022 Deloitte study on mid-market leadership, 64% of executives said culture was their top priority, yet only 27% said they measured it with any rigour . If you don’t track it, you won’t protect it. And if you don’t protect it, don’t be surprised when it disappears. The real risk: you might not get it back Here’s what no one likes to admit: Not all cultures recover. You can try rebrands. You can run engagement campaigns. You can roll out leadership frameworks and off-sites and feedback platforms. But if belief has been neglected for too long, the quiet ones you depended on, the culture carriers, the stretchers, the informal leaders, they’re already checked out. Some have left. Some are still there physically but not emotionally. And some have started coaching others to play it safe. Once that happens, you're not rebuilding. You're replacing. So what do you do? Don’t listen for noise. Listen for absence. Absence of challenge. Absence of stretch. Absence of belief. Ask yourself: When was the last time someone in the business pushed back? Not rudely, but bravely? When did someone offer an idea that made others uncomfortable? When did a leader admit they were unsure and ask for help? Those are your indicators. Because healthy culture isn’t silent. It’s alive. It vibrates with tension, disagreement, contribution and care. If everything looks fine, but no one’s really leaning in? That’s your problem. And by the time it shows up in the numbers,t might already be too late.