Capital Allocation in CPG: Where the Next Dollar Earns the Most
The same $1M of revenue yields ~$54,000 more contribution through retail than through distribution. Most brands allocate by revenue rank, not contribution rank.
The same $1M of revenue yields ~$54,000 more contribution through retail than through distribution. Most brands allocate by revenue rank, not contribution rank.
Applying a five-layer cost waterfall to 10 channels shows gross revenue rank and contribution rank diverge by 3-4 positions for most specialty food brands.