The 5 Most Common Mistakes New FMCG Brands Make (and How to Avoid Them)
Learn the pitfalls that stall retail growth — and how to sidestep them from day one.
Breaking into New Zealand’s FMCG landscape is tough. Supermarket shelves are crowded, retailers are under pressure, and consumers are spoilt for choice. For new brands, getting it right from the start can mean the difference between momentum and stagnation.
After nearly three decades working inside the NZ retail ecosystem, we’ve seen the same five mistakes made time and time again. The good news? They’re avoidable — if you know what to look for.
Here are the five most common mistakes new FMCG brands make, and how to avoid them with a smarter, more strategic approach.
Using “Gut Feel” Instead of Data
Many founders launch based on passion and intuition. While conviction matters, relying on “gut feel” alone — especially when it comes to pricing, positioning, or demand forecasting — is risky.
What goes wrong:
- Products are mispriced or uncompetitive
- Sales targets are based on hope, not velocity
- Supply chain is unprepared for actual demand
- Retail buyers lose confidence
How to avoid it:
Validate everything. Use market scan data, test pricing sensitivity, and run small pilots before scaling. At Surge SMC, we help new brands use real-world data to stress test commercial models before buyer conversations begin.
Ignoring Regional Rollout Nuances
New Zealand isn’t a one-size-fits-all market. What works in Auckland might flop in Dunedin. And getting ranged in the North Island doesn’t automatically mean South Island traction.
What goes wrong:
- Products sit in distribution centres without field support
- Sales underperform in certain territories
- Brands are dropped before they gain national momentum
How to avoid it:
Plan phased rollouts and tailor your support to each region. Field teams are critical here — visiting stores, training staff, and ensuring shelf compliance during launch. National doesn’t mean everywhere at once. It means everywhere with a plan.
Overlooking the Difference Between Sell-In and Sell-Through
Getting onto shelves is only the first step. What matters most is sell-through — how well your product moves off the shelf and into shoppers’ baskets.
What goes wrong:
- Big launch orders give a false sense of success
- Products don’t move, leading to delists or markdowns
- Cash is tied up in unproductive inventory
How to avoid it:
Track weekly sales velocity, not just initial orders. Invest in trade support, digital campaigns, and in-store visibility to drive pull-through. We tell every client: distribution opens the door — sell-through keeps it open.
Failing to Build in Promo Impact and Out-of-Stock Scenarios
Promotions drive trial — but if they’re not forecasted and managed properly, they’ll backfire fast.
What goes wrong:
- Retailers run promos with insufficient stock
- Products sell out mid-campaign
- Reorders don’t trigger due to phantom OOS
- Brand perception suffers
How to avoid it:
Work backwards from your promotional calendar. Forecast uplift accurately, build in contingency stock, and have a system in place to track compliance and fix issues fast. Our clients use live reporting tools (like Opmetrix + Power BI) to manage risk before it hits the shelf.
Underestimating Supply Chain Delays and Minimum Order Quantities
Many new brands are so focused on marketing that they underestimate the complexity of production and logistics.
What goes wrong:
- Products miss launch windows
- Orders are delayed due to raw material lead times
- MOQ constraints lead to cash flow blowouts
- Retailers lose confidence due to unreliability
How to avoid it:
Get close to your supply chain. Build buffers into your timelines and cash flow models. Partner with an operations or distribution expert if needed. At Surge, our JV with Hansells gives new brands access to export-grade manufacturing and fulfilment — without the upfront infrastructure.
Thinking the Product Will Sell Itself
You’ve spent months crafting the perfect recipe or packaging. But that’s not enough.
What goes wrong:
- No one sees your product on shelf
- Marketing is inconsistent or underfunded
- Field reps aren’t in stores to support
How to avoid it:
You need a full commercial engine — strategy, sales, marketing, and execution. The best-performing brands treat every launch like a campaign, not a hope. That means pre-launch planning, promotional alignment, geo-targeted ads, and field activation from day one.
The Fastest Path to Growth? Avoid These, Start Smarter
New brands have enormous potential — especially in a market like New Zealand where consumers are hungry for innovation, better-for-you options, and locally made products. But execution beats ideas every time.
Avoid these mistakes by:
- ✅ Validating your model with data
- ✅ Planning your rollout regionally and realistically
- ✅ Prioritising sell-through over sell-in
- ✅ Forecasting for promos and building in field support
- ✅ Aligning supply chain timelines with retail timelines
Ready to Launch Smarter?
At Surge SMC, we help FMCG brands avoid these pitfalls — and set the foundation for sustainable growth in New Zealand retail. From demand planning to buyer meetings, field sales to forecasting — we’re your commercial growth engine.
Let’s talk about how to set your launch up for success.