The risk of business model disruption from technology has significantly increased over the past 20 years.
High customer concentration with powerful retailers (e.g., Walmart, Costco) poses a significant disintermediation risk for CPG companies.
Current market conditions feature stretched valuations and abundant capital, making it difficult to find great businesses at reasonable prices.
Opportunities Identified
Acquiring and partnering with iconic, founder-led, and family-controlled businesses for the long term.
Applying an operator-led playbook to drive growth and efficiency in established, well-moated companies.
Investing in businesses with strong brands that are larger than their current business operations, presenting a significant growth opportunity.
Leveraging technology, such as AI, to improve operations in traditional businesses rather than investing in businesses susceptible to technological disruption.