George Young Says: Innovation Predictions for CPG in 2012

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Yesterday we released Kalypso's top 5 innovation predictions for 2012, which included some specific trends in the consumer packaged goods (CPG) industry. I had a chance to sit down with George Young to get his view on these plus a few more predictions for CPG in 2012. 

George has three main predictions for the industry:

1. Fast-moving Consumer Healthcare

"Consumer pharmaceutical companies will create a new battleground with CPG companies in the form of fast-moving consumer healthcare. Pharmaceutical companies such as Pfizer and GSK are getting very serious about their consumer businesses. CPG companies have been battling the intrusion of private label over the last several years. Their new battle will be against pharmaceutical companies emerging into consumer healthcare. For the most part pharmaceutical companies will find a very unprepared battlefield in CPG and are likely to win – at least in the short term."

2. The FDA

"Nothing will change drastically in 2012 from a government or legal standpoint regarding the FDA. However, if the Democrats retain control, in 2013 we will finally see the creation of an F and a D – a separate food group and a separate drug group."

3. Criminal Prosecution for Food Safety Violations

"In 2012 we will see the criminal prosecution of at least one large food company for violating food or public safety."

For product lifecycle management (PLM) in CPG, George has three predictions:

1. The Cloud

"Cloud-based PLM adoption will pick up, particularly in small to midsize CPG companies, as they tend to be more green-conscious."

2. Modeling and Simulation

"The emphasis in PLM, or in IT that enables product development in CPG, will shift to modeling and simulation."

3. Competitive Advantage

"PLM will cease to be a competitive advantage in CPG within 18 to 24 months because of the rate of adoption. Just as ERP was a competitive advantage at first, we’re going to see the same thing happen with PLM."

What's your view? Which predictions will George get right? Which ones will he miss?

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About the Authors

Jenna Dudevoir

Jenna Dudevoir

Jenna is a Pearl Jam fan, CrossFitter and dog lover.
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George Young

George Young

George is a founder of Kalypso. Motto: Don't just question authority - question everything.
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