Race to the bottom this, race to the bottom that. Listen to a group of active nutrition CPG industry professionals long enough and eventually they will blame the race to the bottom as a main reason causing their assessment of the deterioration within the industry. But, is it really as bad as everyone seems to think it is?

While the “race to the bottom” has several meanings depending on its socio-economic context, the active nutrition CPG industry usually refers to this as the competitive situation stemming from the lowering of various barriers of entry causing brand proliferation that caused negative pricing pressure and product quality.

While I acknowledge the race to the bottom can have some negative effects on stakeholders, it also provides massive opportunities for those that can understand it. As functional CPG categories naturally bifurcate towards either end of the spectrum, it will leave anything in the middle being washed out in the market. As a brand, you need to pick a side and stay close to those extreme ends. Being positioned as an economical and commoditized brand can be extremely advantageous…when there is consumer demand and retail merchandising support.

So, what am I talking about, where is this all heading? Dollar Stores!