10 Types of Moats a Brand can Build

In business strategy, a moat is your defense — the thing that makes it hard for others to take your customers, match your offering, or erode your profits.

For CPG founders, moats aren’t just nice to have — they’re essential for long-term survival. In an industry where products are easy to copy and shelf space is brutally competitive, your moat is what keeps you in the game.

Below are 10 types of business moats, explained with real CPG brand examples and why they work.

1. Brand Moat

What it is: Emotional connection, trust, and recognition that make customers choose you over cheaper or similar alternatives.
CPG example: Liquid Death — people don’t just buy water, they buy the brand.
Why it works: Brand equity compounds over time and is hard to copy authentically.

2. Product or Format Moat

What it is: A unique form factor, recipe, or product experience that’s hard to replicate.
CPG example: Chobani’s early Greek yogurt dominance, RXBar’s simple ingredients front-of-pack format.
Why it works: Creates a “signature” that competitors can’t easily imitate without looking like a knock-off.

3. Supply Chain / Operational Moat

What it is: Exclusive sourcing, better manufacturing processes, or distribution efficiencies.
CPG example: Exclusive co-man relationships, long-term raw material contracts at favorable rates.
Why it works: Creates cost advantages or guaranteed supply when competitors struggle.

4. Pricing Power Moat

What it is: Ability to maintain or increase prices without losing customers.
CPG example: Patagonia or Oatly maintaining premium pricing due to brand loyalty and mission alignment.
Why it works: Directly protects margins and profitability in competitive markets.

5. IP (Intellectual Property) Moat

What it is: Patents, trademarks, copyrights, or proprietary processes.
CPG example: Monster Energy’s trademarks & distinctive trade dress, proprietary flavor blends.
Why it works: Gives legal grounds to block competitors from copying key elements.

6. Community Moat

What it is: A loyal base of customers, fans, and advocates who amplify and defend your brand.
CPG example: Whole30’s devoted following influencing trial & adoption of compliant products.
Why it works: Transcends channels and product cycles; community follows the founder and mission, not just the SKU.

7. Data Moat

What it is: Proprietary customer insights, buying behavior, or category performance data.
CPG example: Brands with direct-to-consumer data that informs retail and product decisions better than syndicated data alone.
Why it works: Informs faster, more accurate decisions competitors can’t easily match.

8. Capital Access Moat

What it is: Ability to raise money quickly and on good terms.
CPG example: Founders with strong investor networks who can fund expansion before competitors.
Why it works: Lets you act on opportunities others can’t afford to pursue.

9. Mission / Cultural Moat

What it is: A deeply held purpose that customers and employees rally behind.
CPG example: Dr. Bronner’s — people buy into the ethos as much as the soap.
Why it works: Drives loyalty beyond price or convenience.

10. Network Effect Moat

What it is: The product/service becomes more valuable as more people use it.
CPG example: Rare in traditional CPG, but can happen in brand ecosystems (Peloton’s hardware + classes + community).
Why it works: Creates a self-reinforcing loop that’s hard to displace.

Why Moats Matter in CPG

The CPG space is crowded, fast-moving, and unforgiving. Products are easy to copy, and attention is harder than ever to capture. A well-built moat gives you defensibility, pricing power, and staying power.

Pro tip: Start by identifying the moat you already have the strongest foundation for, then double down. If you can layer multiple moats over time, your competitive advantage grows exponentially.