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At the checkout: FMCG brands in 2021

Sales are up but ad spend is down. Are FMCG brands leaving themselves vulnerable in the wake of COVID?

The challenges of 2020 have led to sales growth for FMCG brands in a range of sub-categories including grocery and alcohol.

Record-breaking growth has occurred despite falling ad spend. Although this makes for strong profits in the short term, it also makes way for opportunistic challengers at a time when consumer behaviour remains in flux.

History shows category leadership is created during times like these, particularly when brands maintain or increase ad spend. And brands that fail to recognise the importance of longer-term brand building risk becoming flotsam when the tide eventually turns.

The key to determining whether your business will rise or sink in the coming months is media selection.

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