Leadership Reinvention at Advantage Solutions: Strategic Implications for CPG Market Dominance

The appointment of Jeff Harsh as Chief Operating Officer (COO) of Advantage Solutions' Branded Services segment marks a pivotal moment in the company's evolution. As the CPG (consumer-packaged goods) market grapples with shifting consumer behaviors, supply chain complexities, and the rise of private-label brands, Advantage Solutions is positioning itself to dominate through a strategic pivot toward operational excellence and client value innovation. Harsh's leadership, rooted in 28 years of CPG experience at The Hershey Company and his transformative work at Concept Services, signals a bold reimagining of how Advantage Solutions can leverage technology, data, and omnichannel integration to unlock growth. For investors, this move represents a compelling opportunity to capitalize on a company poised to redefine its role in the retail ecosystem.

Strategic Alignment: Jeff Harsh's Vision for Branded Services

Harsh's appointment is not merely a personnel change—it is a strategic recalibration. His tenure at The Hershey Company, where he drove multi-billion-dollar business transformations, and his leadership at Concept Services, where he scaled B2B sales and marketing operations, provide a proven blueprint for success. At Advantage Solutions, Harsh will oversee the Branded Services segment, a critical unit responsible for brokerage, omni-commerce marketing, and client engagement. His mandate includes optimizing sales planning, integrating omnichannel strategies, and leveraging Advantage's technology stack to enhance client ROI.

The Branded Services segment has faced headwinds in recent quarters, with a 10% revenue decline and a 21% drop in adjusted EBITDA in Q2 2025. However, these challenges are largely attributable to client losses and macroeconomic pressures, not operational inefficiencies. Harsh's expertise in navigating CPG market dynamics—such as pricing optimization, route-to-market strategies, and customer segmentation—positions him to stabilize the segment while driving innovation. His focus on turning insights into actionable strategies aligns with Advantage Solutions' broader goal of becoming a data-driven, AI-enabled partner for CPG brands.

Operational Excellence: A Foundation for Growth

Advantage Solutions' transformation since 2023—from a fragmented business model to a unified, integrated enterprise—has laid the groundwork for Harsh's success. The company's strategic divestiture of over 10 non-core assets has sharpened its focus on high-value services, including in-store merchandising, logistics, and private brand development. These capabilities are now being augmented by AI-assisted staffing, a new data architecture, and a centralized labor management model. Harsh's role will be critical in scaling these initiatives, particularly in the Branded Services segment, where client expectations for agility and precision are rising.

The company's recent financial performance underscores the urgency of this pivot. While Q2 2025 saw mixed results—$736 million in revenue and $86 million in adjusted EBITDA, down 2% and 4% year-over-year, respectively—the Experiential and Retailer Services segments demonstrated resilience. Experiential Services grew revenue by 6% and adjusted EBITDA by 14%, driven by improved staffing and execution volumes. Retailer Services, despite a slight revenue dip, saw an 8% increase in adjusted EBITDA. These trends highlight Advantage Solutions' ability to adapt, and Harsh's leadership will likely accelerate this momentum.

Market Dynamics: Why This Matters for Investors

The CPG market is undergoing a seismic shift. Retailers are prioritizing private brands (85% of surveyed retailers), and supply chains are evolving in response to trade disruptions (65% of retailers). Advantage Solutions' Daymon division, a leader in private brand advisory and execution, is uniquely positioned to capitalize on these trends. With Harsh at the helm of Branded Services, the company can further integrate its capabilities—such as AI-enabled decision engines and omnichannel marketing—to deliver end-to-end solutions for CPG clients.

For investors, the strategic implications are clear. Advantage Solutions is transitioning from a cost-driven service provider to a value-driven innovation partner. Its balance sheet, with $103 million in cash and a $400 million untapped credit facility, provides flexibility to invest in growth. The company's guidance for 2025—flat to down low single-digit revenue and EBITDA—reflects short-term challenges but also signals confidence in a return to growth in 2026. Harsh's appointment, coupled with the completion of its data architecture by 2026, could catalyze a return to 25%+ net free cash flow conversion, a key metric for long-term shareholder value.

Investment Thesis: A Compelling Growth Play

Advantage Solutions' strategic reinvention, led by Harsh's operational acumen, makes it a compelling investment for those seeking exposure to the CPG sector's transformation. The company's ability to integrate AI, enhance labor efficiency, and deliver data-driven insights positions it to outperform peers in a market increasingly defined by speed and precision. While the stock has faced volatility due to macroeconomic headwinds, its fundamentals—strong client retention, a diversified service portfolio, and a clear path to operational efficiency—suggest undervaluation.

For investors with a medium-term horizon, Advantage Solutions offers a unique combination of strategic clarity, operational momentum, and market relevance. Harsh's leadership is not just a signal of stability—it is a catalyst for reinvention in a sector where innovation is the new currency. As the CPG landscape continues to evolve, Advantage Solutions is well-positioned to emerge as a dominant player, turning today's challenges into tomorrow's growth opportunities.

In conclusion, the appointment of Jeff Harsh as COO of Branded Services is a masterstroke in Advantage Solutions' journey to redefine its role in the CPG ecosystem. For investors, this is more than a leadership change—it is a green light to invest in a company that is not only surviving but thriving in the face of disruption.