MrBeast Disrupts Coca-Cola & Pepsi Next
And for his next consumer packaged goods (CPG) act, the biggest YouTuber in the world, Jimmy Donaldson aka MrBeast will launch…
But before I try my luck at correctly predicting another MrBeast CPG market move, let’s dive a bit deeper into the trend that’s fueling massive CPG industry success of MrBeast, but also Logan Paul, NELK, Emma Chamberlain, and many others.
Creator Packaged Goods
Everyone thinks the C in CPG stands for consumer, but that’s dead wrong. The most popular creators of today are becoming the biggest CPG brands of tomorrow. Creator packaged goods is a relatively new phenomenon. You’ve probably heard the term creator economy, but for those unfamiliar…it basically describes individuals that commercially capitalize on digital platform output (i.e. content creation). There are 10s of millions of creators today, most just making the world a noisier place, but a small fraction add value to niches and/or transcend beyond these digital platforms.
See…there’s a mix of skill, hard work, timing, and luck that goes into capitalizing on these new kingmakers of the world…which are the everchanging algorithms of these various digital platforms. If you can consistently “catch lightning in a bottle” by holding consumer attention with the help of these digital platform algorithms, congratulations…you’ve just become one of the most sought-after assets in the world. The social currency of views, likes, comments, and shares, now have exchange rates that supersede basic salary and fee-based compensation of decades past…that is if you know how to properly articulate and aestheticize your defining personality traits. Because that’s really the cheat code here…creators have the potential to build extremely valuable brands, but not all are created equal.
It’s also important to mention that when talking about the CPG industry, there’s more to the equation than just having a uber-popular creator co-founder that can pull-forward awareness. Just think back to all the CPG news headlines you’ve read over the last year, it seems an increasing number of them had some type of big-name creator attached to them, right? So, if everyone is doing it…the law of diminishing marginal returns will eventually start to kick in. This means the number of consumers interested in buying a product for no other reason than it’s launched by a creator shrinks each time a new one enters the market.
Creator packaged goods brands must still be great at price-pack architecture, finding product-market fit, capital allocation, new product development (and product management), and I could go on and on about all the “blocking and tackling Xs and Os” CPG operator stuff. That’s why partnerships with strong CPG operators or companies are so important to enhance the probability of success in the long run. There needs to be a credible person (and/or team) behind a creator packaged goods brand.
This was the basis of my December 2021 YouTube video called “HollywoodHouse Foods” that came from mashing up Hollywood and the largest food and beverage contract manufacturer TreeHouse Foods. Because of its financial and activist investor troubles, I suggested TreeHouse Foods launch a celebrity (creator) packaged goods arm. The thesis was easy for them…maximize this equation ⬇️
[Right Celebrity + Right Product = Success]
MrBeast: Feastables
It was in that “HollywoodHouse Foods” YouTube video that I also successfully predicted MrBeast would enter the CPG industry. At the end of January 2022, MrBeast launched Feastables, a better-for-you snacking brand. Feastables first product was the MrBeast Bar, a gluten-free chocolate bar with simple ingredients, including organic cocoa.
How successful was the MrBeast Bar launch? Reports indicate that Feastables sold over 1 million chocolate bars in the first 72 hours and MrBeast has stated during interviews that the brand’s revenue in 2022 will be in the “tens of millions.” Beyond the 100 million plus YouTube subscribers and likeability of MrBeast, I believe Feastables has been so successful mostly because of three elements…
MrBeast Doesn’t Run Day-to-Day Operations
As mentioned earlier, partnerships with strong CPG operators or companies are so important to enhance the probability of success in the long run. There needs to be a credible person (and/or team) behind a creator packaged goods brand. MrBeast is the creative visionary at Feastables, but the person running day-to-day operations is the former President of RxBar.
On-Brand GTM Strategy
Feastables has utilized a go-to-market (GTM) strategy that aligns with what makes MrBeast special…fan engagement, games, and stunts. In fact, the launch promotion around Feastables included a massive sweepstakes with the chance of compete in a MrBeast YouTube video to win his version of Charlie and the Chocolate Factory.
Snacking = Affordable Luxury
When economic times are tough (or inflation is high), snacking becomes a sort of affordable luxury. This is helpful when a large share of your most diehard audience is under 18 and likely needing to ask parents to purchase a Feastables product. It’s much easier to ask your parents to buy you a $3 candy bar to show off on social media than if MrBeast launched a branded electric skateboard or something like that.
Feastables: Holding Company?
With several MrBeast Bar variants and MrBeast plant-based cookies, Feastables looked to be the “MrBeast brand” until it’s most recent product launch…Karl Gummies.
This collaboration with YouTuber Karl Jacobs signals that Feastables might become a holding company of sorts for creator packaged goods sub-lines that will eventually take over the entire indulgent snacking space. And while MrBeast has mentioned publicly that the next CPG product launch will be in cereal, it’s still unknown if it will be “MrBeast Cereal” or Creator XYZ Cereal.
MrBeast Beverage Next?
MrBeast’s multimedia talent management company Night, which helped him incubate Feastables, recently put out a call that it’s looking for another proven CPG leader. That makes me think that it’s not in the food format…because Feastables is that “holding company” vehicle. After seeing the massive success of Logan Paul and KSI with PRIME, I believe Night wants in on the creator packaged goods beverage world disruption. They also have the firepower to do it, as Night Capital just formed a $100 million investment company in partnership with The Chernin Group.
Considering MrBeast (and team) are interested in disrupting huge CPG categories by creating positive impact through slightly better-for-improvements…which beverage category makes the most sense?
In December 2022, I predicted “based on MrBeast having Crohn’s disease and having to cater to younger audiences…it would be a lightly carbonated beverage category that’s in hyper-growth mode and already in the very early stages of disrupting a legacy foundational category…prebiotic sodas. Normally that functional twist would be too scary for kids, but I think both Olipop and Poppi have done an excellent job laying the groundwork for its possibility. And yes…fiber can be tricky for people struggling with Crohn’s disease, but a tweaked formula could make the prebiotic soda category even more taste-forward, lower carbonation, plant-based, and healthy-ish…which would be aestheticized with the defining personality traits of MrBeast.
Months later…samples emerge (likely developed in partnership with L.A. Libations) that appear to be an Orange, Lemon-Lime, and Cola.
While the “gut friendly” aspect is still undetermined, it looks like the “worst kept secret in beverage” is finally starting to become real!
The question remains…will this expected MrBeast beverage be under the Feastbales “holding company” or maybe they will borrow “Gulpables” from me.
Final Thoughts
Fortune favors the bold and, increasingly, the many creators who’ve made the leap into the CPG industry. As seen with Feastables (plus PRIME, Happy Dad, and Chamberlain Coffee), creator packaged goods brands hold the potential of being developed into billion-dollar successful businesses capable of competing with even the most powerful CPG giants. Will MrBeast take on the likes of Coca-Cola and Pepsi next, I think the signs are pointing to yes.
