What is CPG?
CPG stands for consumer packaged goods. These are the everyday products you find on store shelves and online that are packaged, sold in quantity, and bought again and again.
In plain words
If you can pick it up in a grocery store, a drugstore or a big-box store, a CPG company probably made it. You use it up, then you buy it again. That repeat buying is what makes CPG its own kind of business.
Examples
Salsas and saucesSnacksDrinksFrozen mealsBakery and sweetsSpices and condimentsPet foodBeauty and personal careCleaning and household products
How a product reaches the shelf
- 1
An idea or a recipe
- 2
Made in a kitchen, a plant, or by a co-packer
- 3
Packaged and labeled, with a barcode
- 4
Sold through brokers, distributors, retailers or online
- 5
On the shelf, and bought again
Who is part of CPG
A company can be more than one of these. In this Directory, brands are called Operators and everyone who serves them is called Support.
Brands (Operators)Founders and companies that create and sell their own products.
Co-packers and manufacturersPlants that make products for brands, or let small brands use their equipment.
Packaging, labels and designJars, bottles, boxes and labels, and the people who design them.
Brokers and distributorsThey connect brands to stores and move products onto trucks and shelves.
Retail buyersThe people at grocery chains and shops who decide what to carry.
Professional helpLawyers, accountants, insurers, banks, food safety consultants, marketers and photographers.
Community and public programsLocal CPG groups, small business centers, chambers of commerce, and grant and training programs.
Words you will hear
- Co-packer
- A company that makes or packages a product for another brand.
- Broker
- A sales agent who presents your product to retailers and distributors, usually for a commission.
- Distributor
- A company that buys products from brands, stores them and delivers them to retailers.
- Retail buyer
- The person at a store or chain who chooses which products to stock.
- SKU
- One product in one size or flavor, as a store tracks it. A salsa sold in two sizes is two SKUs.
- UPC
- The barcode number that identifies a product at checkout.
- Food safety certification
- An outside audit, such as SQF, that some large retailers require before they will buy.
- Chapter
- A local CPG group that meets, shares advice and connects its members. Texas has several, and you can join more than one.