Demand for sodas, sports drinks and snacks typically have a fairly steady demand and the demand should remain relatively constant after the pandemic. Other companies, even before the pandemic, have been making the move to direct-to-consumer websites – especially for products that are typically purchased on a weekly or monthly cycle. PepsiCo’s rapid response was impressive and we will see more manufacturers follow suit. I didn’t see an option on PepsiCo’s website for maintaining a recurring order, but that will likely be added soon so that customers can schedule routine orders for beverages and snacks they order regularly.

Buying patterns have changed. If and when COVID-19 passes, replacing commodity buying trips with online purchases is going to continue to be a trend. I think other CPG companies are going to be attracted to this model, but companies beware – this isn’t for the faint at heart.

There’s a lot more on the line than skipping the retailer. If you don’t have the right infrastructure and logistics for this, you risk squandering your brand equity.

Out-of-stocks, badly shipped product, and poor customer experience will sink brand equity faster than we can eat snacks right now.

Beverages and snacks are key categories for at-home consumption regardless of the pandemic. During COVID-19 this will be an option and will likely do moderately well. After the pandemic there will be many more options; most shoppers buy based on convenience and want more one-stop shopping.

Actually, I am not sure that the demand will be strong in the short term. People have to discover it. However, once they do, demand will grow strongly.

Other CPG companies will follow and direct to consumer will be a significant factor in the future. It is easy. It is convenient and why not?

Pepsi is smart to jump on this trend. According to eMarketer, D2C has been growing for the past five years and grew almost 18 percent YoY in 2019. Although it’s predicted to slow down a bit, there is still double digit growth expected in D2C. Companies like Pepsi will continue with high demand in grocery without D2C, but it provides a new avenue to sell and less reliance on the retailer. For other types of manufacturers, especially those not in a grocery or c-store distribution model, it becomes almost a necessity as their distribution networks have effectively been shut down during the pandemic and purchase orders have come to a standstill. We’ll see more suppliers resorting to their own commerce sites as D2C continues to grow, pandemic or not.

If combined with a strong marketing campaign, there will be small to moderate demand in the short-term. But more curious will be how this impacts their relationships with their distributors and wholesalers. What will be their pricing strategy, and how will that impact forecasting and buying on the part of the wholesalers/food and beverage retailers? Those relationships are a constant battle for buy quantities, prices and ultimately shelf-space, and a large DTC push may cost them some leverage.

Another entry into the growing D2C market. Light bulbs re-order themselves direct from the manufacturer. Furnace filters do the same. The spotlight here is how brands are looking to move past the retailers and go direct to consumers. Once a consumer goes direct, the data flow to the brand and the brand now owns the relationship and can begin to leverage it. Nothing big here in the short term — but it’s a slippery slope to watch out for.