The Case for an Operating System to Power CPG R&D

The future of consumer brands hinges on intelligent connectivity

Here we’re sharing with you with the conversations happening across team Maveron — including what’s now & what’s next, perspectives beyond the boardroom, and the long view on consumer shifts we believe will stick around for the years ahead.

The Case for an Operating System to Power CPG R&D

What’s most exciting in today’s consumer landscape isn’t just the next great product. It’s the infrastructure that now empowers founders to more quickly than ever research, develop and build products into enduring brands. New and scaled businesses are constantly innovating on R&D and marketing in order to maintain a competitive advantage and prime shelf space in retailers and wholesale relationships. Brands today are defined not only by what they create, but by how quickly they can discover, validate, and deliver new products in a fiercely competitive $500B market. Successfully executing on this innovation comes down to operational agility, not just creativity.

Yet, the majority of CPG R&D remains stuck offline: formulation, sourcing, and claims substantiation are still run on phone calls and relationships. With poor infrastructure at its core, supplier discovery and collaboration remains fragmented and network-driven, burdening brands as they navigate specialized and even vertically-integrated partners. These are critical challenges that impact every corner of the entire consumer ecosystem because a piecemeal system ultimately slows down the innovation cycle.

We believe the answer to this challenge is: an operating system for CPG product innovation that connects key stakeholders through real-time flow of data across consumer spend, purchasing patterns, inventory levels, and formulation research. This isn’t just a workflow upgrade; it’s the foundation for the next generation of market leaders.

Imagine a future where data moves seamlessly through a living, interconnected network, allowing brands to detect shifts in consumer behavior and respond with new products or marketing campaigns in days or weeks, not quarters. Or, a reality in which claims validation, ingredient vetting, and supply chain management are streamlined by a unified platform, dramatically shrinking administrative overhead and regulatory risk. Every part of the process, controlled by one system. The possibilities are endless.

The companies that get this right will empower rising consumer brands to out-innovate and out-execute even the most established incumbents because they will be able to accurately create products that best align with the consumer – and with accuracy, speed, and agility.

When considering a new thesis or investment, our team always asks: what do we have to believe to get to conviction? Here’s what I think:

• AI is both the pain-point and the opportunity. AI enables CPG brands to identify and respond to consumer trends closer to real-time, decreasing the length of innovation cycles and increasing competition between brands.

• Stakeholder collaboration is key. The most compelling investment opportunities will use AI to bridge the data gap between brands, suppliers and manufacturers , dissolving process silos and unlocking operational leverage by making collaboration easier.

• Product innovation and marketing strategy are intertwined. Venture-scale in a consumer brand is driven by marketing AND product innovation, which must be considered in tandem with one another during the R&D process.

• The highly fragmented, competitive nature of CPG creates a natural GTM flywheel. AI R&D tools are a compelling wedge to brands, who subsequently onboard their ingredient suppliers and manufacturers.

We’re searching for those bold enough to build the OS that will define the future of consumer product innovation. Let’s connect if you’re one of them.

You can read more on our investment thesis here, where we dive deeper into the magnitude of these industry challenges, and share case studies of transformative consumer brands that figured out the intersection of product innovation and marketing strategy early.

On Letting Go to Scale Successfully

“To succeed, you need to hire and empower 'A' players, let go of control, and be aggressive. Believe in yourself and everyone around you. Investors and employees see right through control issues, so part of mitigating risk is trusting your team and being willing to become uncomfortable to break through a crowded field."

— Richard Laver, CEO of Lucky Beverage Co, in conversation with The CPG Guys, discussing how founders overcome challenges by empowering talent, trusting their team, and staying bold in competitive categories.