Industry leaders from Campbell Soup Company, Kraft Heinz, and McCormick joined Spoiler Alert for a deep dive into the challenges and strategies of managing excess inventory in the CPG industry. The conversation, moderated by Spoiler Alert CEO Ricky Ashenfelter, shed light on how these major manufacturers define, track, and sell excess inventory while balancing financial impact, brand security, and customer relationships.

What Drives Excess Inventory?

Every CPG manufacturer faces the challenge of excess inventory. Whether it’s an overproduction, forecasting miss, or product innovation that didn’t take off as planned, finding a home for surplus stock is a critical part of supply chain and sales strategy.

As Brad Murphy, Director of North American Planning & Logistics Analytics at McCormick, explained:

"I don't think there's a perfect demand planning model. Especially in a market where tastes are always changing, innovation is required to grow. Innovating is risky but required. More often than not, it's going to fail, but we have to be able to support it. We also have to have ways to get rid of it. Right? So if it doesn't succeed, we need to be able to have tools like Spoiler Alert to help us move that product out."

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Balancing Buyer Quantity and Quality

Not all buyers are created equal when it comes to secondary sales. While expanding buyer networks can create more opportunities, maintaining strong, reliable relationships is essential. Brad Murphy, Director of North American Planning & Logistics Analytics at McCormick, emphasized:

"Before we had Spoiler Alert, we had three primary partners in the space. But we have expanded a bit, based on some of the work the Spoiler Alert team has done to introduce new buyers. We want to make sure most importantly, we're limiting loss. So more buyers typically helps that. But I think you reach a point where you want to balance the fact that you want to keep those buyers happy. And and give them opportunities to engage with the inventory that we have, but also make sure we're getting a decent value."

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Keeping Inventory Under Control

Managing excess inventory effectively is not just about finding buyers—it’s about organization and visibility. Without a structured process, brands risk overselling or losing track of available product, creating operational inefficiencies.

‍Bryan Miller, Team Leader, All Other Value & Specialty at Campbell's Food & Beverage, shared how this challenge has evolved:

"The thing that has helped us tremendously is organization, because you don’t want to sell something twice. And if it makes a list and you think you found a home for it and then, you don’t do a good job of updating your Excel form, all of a sudden, you sold an extra two thousand cases. Spoiler Alert has been a huge help in keeping us organized and making sure we know exactly what we have available at any given time."

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Structuring Secondary Sales for Success

Effectively moving excess inventory requires cross-team coordination between supply chain, finance, and sales teams. Brad Murphy, Director of North American Planning & Logistics Analytics at McCormick, described their approach:

"My team, supply chain analytics, manages the identification of excess inventory based on the forecast of each one of our DCs and the shelf life of the SKUs and the batches. We then take that inventory and share it with our marketing teams to make a call on whether they want to move it or not."

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Collaboration Between Sales and Supply Chain

Successful secondary sales depend on strong partnerships across the supply chain, sales, and finance teams. More importantly, collaboration with buyers who understand the nuances of liquidation can make a significant impact.

Chase Carbone, Associate Director, Whitespace & Sales Solutions at Kraft Heinz, highlighted the role of trusted partnerships:

"We have partners in the space that can help, in whatever capacity it is, and are willing to help. They hear from us, what do we need, and we do the same for them. So, ultimately it's about helping put our products on the consumer's plates and helping to keep those products out of the landfill."

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Final Thoughts

As excess inventory challenges continue to evolve, the best CPGs are taking a proactive, strategic approach. Key takeaways from the discussion:

  • Early identification of slow-moving inventory leads to better cost recovery.
  • A vetted buyer network protects brand reputation and ensures smoother transactions.
  • Data-driven decision-making helps optimize secondary sales programs for maximum profitability.
  • Cross-functional collaboration between sales and supply chain ensures alignment on inventory decisions.

Missed the live discussion? Watch the full recording HERE and stay tuned for future insights on optimizing your inventory strategy.

For more expert content on secondary sales, check out our resources at Spoiler Alert.