Quick-service chains are experimenting with beverage-focused spinoffs to tap into evolving consumer tastes and strengthen sales. Chick-fil-A has launched Daybright Coffee, while Taco Bell is expanding its Live Más Café concept to 30 locations by year’s end. With the US nonalcoholic beverage market projected to hit $178.1 billion, the category’s appeal is clear—but success for large brands remains uncertain. McDonald’s ended its CosMc’s test after gleaning key menu insights, choosing to integrate the best-performing items into existing stores, a move that signals a more sustainable approach to beverage innovation.
Kroger and Uber are joining forces to expand their audiences and attract more incremental spending. Kroger customers will be able to order restaurant delivery—fulfilled by Uber—from the grocer’s website and app. Starting next year, Uber Eats users will be able to order groceries from Kroger’s 2,600-plus stores. Partnering with third-party delivery platforms offers pure-play grocers such as Kroger an opportunity to level the playing field with mass competitors like Walmart and Amazon. Deals like the one between Kroger and Uber will likely become more common as retailers look to reach high-intent shoppers and delivery platforms race to keep their competitors at bay.
The global beer industry is confronting a sharp downturn as leading brewers like AB InBev, Heineken, and Carlsberg report falling volumes amid inflation, changing tastes, and growing alcohol moderation. With US beer production down and more breweries closing than opening for the first time in 20 years, consumers are shifting toward cheaper brands or alternatives like canned cocktails and THC drinks. AB InBev’s response—a $6 billion buyback, expanded no-alcohol lineup, and investment in premium RTDs—signals a broader industry pivot toward diversification and reinvention under mounting pressure.
Sprouts Farmers Market projects flat to 2% same-store sales growth in Q4, signaling a sharp slowdown after strong midyear gains as consumer spending cools. Q3 results missed expectations, with 5.9% growth versus forecasts of 7.4%. In response, Sprouts is emphasizing value through expanded private labels, unique product innovation, and affordable prepared foods, while leveraging its new loyalty program to drive repeat visits. Despite broader retail pressure and cautious shoppers, Sprouts remains optimistic—opening more stores than planned and leaning on its differentiated, health-focused positioning to sustain long-term momentum amid an industry-wide pullback.
Estée Lauder topped analysts’ profit and revenue expectations, aided by sales and market share gains in China and customer growth in the US. The parent of brands such as Clinique, Tom Ford, and Aveda said its results marked the start of its return to growth under a turnaround plan. Estée Lauder’s stronger-than-expected quarter shows that accessible pricing and product innovation is essential to growth in beauty, especially as competition continues to intensify. Gap Inc., for instance, is launching Old Navy Beauty, a youth-focused line of body mists and scents. Its move shows that even apparel retailers are muscling into beauty to lure Gen Z consumers, providing new pressure on established beauty brands.
If Amazon’s October Prime Big Deal Days event was any indication of the upcoming holiday season, consumers will keep spending on beauty products for themselves and others.
Starbucks’ premium positioning is hampering its recovery as price-sensitive consumers seek cheaper ways to fuel their caffeine habits. US same-store sales were flat in the quarter ended September 28, with a 1% decline in comparable transactions offset by a 1% increase in average ticket. Starbucks’ ongoing weakness can be attributed at least in part to the challenging economic environment, which is driving consumers to cut back on consuming food and drinks outside the home. But its competitors’ ability to drive sales even with the same headwinds suggest that Starbucks’ hold on customer loyalty is slipping.
Rising costs and softening consumer demand led Kraft Heinz, Hormel, and Mondelez to cut their full-year outlooks, reflecting mounting pressure across the food industry. Hormel cited higher commodity costs and production setbacks, while Kraft Heinz and Mondelez reported slowing sales as inflation-weary shoppers traded down to cheaper or private-label options. Consumer confidence has fallen to its lowest level in months, and the looming SNAP benefit cutoff could further dampen spending. With costs climbing and value-conscious behavior spreading, food companies are being pushed to focus on efficiency and share preservation over aggressive growth.
Major casual dining chains are bracing for weaker Q4 sales as the government shutdown and broader economic headwinds weigh on consumer spending. Brinker International maintained its outlook despite Chili’s gains, while Cheesecake Factory reported slowing momentum and Chipotle cut its sales forecast for the third straight quarter. With real income growth stagnating and menu prices continuing to rise, many consumers are cutting back on dining out. To stay competitive, restaurants need to focus on value-driven promotions and loyalty programs designed to attract price-sensitive diners and encourage repeat visits.
Grubhub is partnering with Instacart to power its grocery ordering as the Wonder Group-owned platform works to better compete with DoorDash and Uber. Instacart will manage fulfillment and delivery through its 1,000-plus retail network, marking the first time its grocery experience is embedded in another app. The deal expands Instacart’s reach to Grubhub’s urban, suburban, and college users while helping Grubhub diversify into grocery and pharmacy delivery. As rivals deepen partnerships and retail media strategies, both companies aim to boost order volume and ad revenues, leveraging collaboration to counter intensifying competition in the delivery market.
Prescription pharmaceuticals accounted for 13.1% of total estimated US linear TV ad spend in Q3 2025, the highest among the top five industries, according to an October report from iSpot.tv.
Grocery shopping is more digital than ever, but the physical store remains the cornerstone of the experience, amplified by digital tools and touchpoints. Shoppers blend in-store visits with online discovery, opening new opportunities for brands and retailers to connect with them at every stage. Here’s what marketers need to know about today’s grocery shoppers and what it means for retail media strategies.
Coca-Cola and Hershey’s are redefining what innovation looks like for century-old brands. Both companies are building repeatable systems for creativity rather than chasing trends. Coca-Cola created a proprietary AI-driven design system that converts brand rules into machine-readable code, allowing global teams to scale creative consistency instantly. Hershey’s built feedback loops that turn employee empathy and standardized KPIs into actionable insights. Together, they illustrate how legacy CPGs can combine data discipline with creative freedom—using structure to accelerate, not stifle, imagination. Innovation, they argue, isn’t chaos; it’s a system you can build.
Thanksgiving dinner costs are set to surge this year as turkey prices climb sharply amid renewed bird flu outbreaks that cut US turkey production nearly 10% YoY, according to the USDA. With demand peaking and supply at a four-decade low, wholesale turkey prices have soared, but some retailers see an opening to highlight value. Aldi, Walmart, and Dollar General are promoting low-cost holiday meal bundles to appeal to price-conscious shoppers. Still, rising grocery costs and broader economic pressures could dampen consumer spending this holiday season.
Rising restaurant prices are reshaping how Americans dine out. As 82% of consumers notice higher prices, many are cutting back, especially lower-income households. This shift has boosted value-focused chains like Chili’s and Texas Roadhouse, which have gained market share through affordable bundles and barbell pricing strategies that balance cost-conscious and premium offerings. In contrast, chains that serve less affluent consumers, such as McDonald’s, have seen visits fall despite renewed value promotions. With profitability concerns mounting, operators face pressure to raise prices carefully while using targeted deals and loyalty programs to sustain demand and protect margins.
Procter & Gamble’s strategy of delivering innovation over discounts is helping it navigate economic uncertainty better than many of its peers. While other companies lose sales to private labels, P&G’s US market share is rising as shoppers opt to pay more for products they perceive to be higher quality. Rather than follow competitors by discounting heavily, P&G is focused on delivering superior products—in addition to messaging that emphasizes the potential cost-savings of using them. That strategy allows it to offer more value to customers (and raise prices) without losing loyalty.
Unilever said its core business grew in Q3 as sales in North America rose for the fifth straight quarter, fueled by demand for new deodorants and beauty products. Unilever’s focus as it restructures reflects a wider industry trend: Companies are expanding their beauty, well-being, and personal care product offerings to meet demand for clean, natural, and sustainable goods and position themselves as lifestyle brands. Earlier this week, Lysol maker Reckitt Benckiser reported rising Q3 sales as consumers bought its self-care and germ-protection products. Unilever will need to keep leaning into premium products and digital engagement to keep up with consumer changes in everyday wellness.
LVMH is reportedly exploring a sale of its 50% stake in Fenty Beauty, according to Reuters. The move comes on the heels of Kering selling its beauty unit to L’Oréal for €4 billion ($4.3 billion)—suggesting that, after years of aggressive expansion, the two luxury conglomerates are taking a more targeted approach to growth. The market for beauty—particularly cosmetics—is showing signs of softening, which could explain LVMH’s desire to sell. But it’s more likely that LVMH is attempting to raise cash ahead of a potential bid for Armani
Consumers’ desire to find “better for you” versions of their favorite products is working in Coca-Cola’s favor. Sales of Coca-Cola Zero Sugar soared 14% YoY in Q2, while Diet Coke sales grew 2%. Reconfiguring CPG portfolios for the MAHA (Make American Healthy Again) and GLP-1 consumer may be less daunting than brands think. Shoppers are extremely receptive at the moment to products with purported health benefits—so rather than rolling out high-protein versions of every product, companies should look for ways to emphasize the health or functional benefits of their existing assortment.
On today’s podcast episode, we discuss what it means to have an authentic relationship with your customer, the benefits of collaborating on loyalty, and how to make folks feel like they are getting the most out of their rewards app. Join our conversation with analyst and guest host, Arielle Feger, GM of CPG Partnerships at Fetch, Carmen Gonzalez-Meister, and Director of Category and Ecommerce Strategy at Nestlé, Nicole Lesinski. Listen everywhere you find podcasts and watch on YouTube and Spotify.