A category long strategy is important and effective when the economy is roaring, and even more powerful when downturns cripple runner-up competitors.
It’s not recommended to buy an empty manufacturing plant for $50MM and expect to fill it with products not yet identified. But, hey, when you’re trying to show value to shareholders it’s what you do.
All joking aside, being pulled off managing Silk’s base dairy-free milk business to figure out how to fill this empty gem was one of the most memorable professional experiences while working at WhiteWave Foods.
What to do? Take advantage of macroeconomic trends that favored flexitarian diets and move the Silk brand into the highly competitive category of yogurt by carving out a new dairy-free niche.
P.S. – One-year later that manufacturing plant was pumping out millions of units to the likes of Walmart, Kroger, Ahold Delhaize, Albertsons Safeway, Sprouts, and many, many other retailers.