CPG Fear Factor

Inflation Dow-ner. Maybe you missed this story today, but Dow Chemical revised their cost increases from 20% to 45%!! And don't forget about the freight surcharges. I have an inkling that most of this will be passed on to consumers, driving inflation of many fine chemical-based inputs. Dow is the largest US chemical company, and others are expected to follow suit. Wah wah.

Dockworker Strike. Surprisingly, this has received very little press. There's obviously a lot of big stories going on right now, but consider that all of the products we get from China could be held up in harbors off the Pacific coast should the longshoremen contract negotiations go sour.

Private Label. If you're not establishing a meaningful and authentic connection to your consumers, your brand risks becoming a casualty in this down economy. Some product categories, however, are more challenging than others. For instance, I'd be hard pressed to switch my Lucky Charms to Wal*Mart's sad version, "Fortunate Trinkets." (ok, I made that name up). However, I'll take Target brand soap, paper towels, glass cleaner, etc, over branded anyday.