Startup vs. legacy

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Most of these D2C success stories that people have observed have come from CPG startups. Startups are possibly able to embrace an entrepreneurial culture and are more agile than larger, legacy CPG brands since they could move from ideation, design, implementation to product launch much faster.

Legacy CPG brands, who usually have a monopoly in a particular sector and have established connections with retailers, are not pressurized to innovate since they are literally sitting on a large profit pool. And since they’ve become set in their ways of doing business, it is nearly impossible for them to think outside-of-the-box or pivot towards a new direction. This is why startups have the upper hand.