CPG sales are kicking off 2017 on a somewhat sluggish note, with several major companies reporting a decline in sales thus far this year. While some attribute these low figures to the White House and economic uncertainty, others believe that the drop in sales is more closely linked to a shift in consumer attitudes. Today’s consumers are increasingly prioritizing healthy, nutrient-rich foods—an area where traditional CPG companies have not typically excelled. To address this, many large food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also developing entirely new health-oriented options.
However, these initiatives are often more challenging for major manufacturers than they seem. Analysts suggest that established brands like Yoplait are losing market share to smaller, more agile companies that can swiftly adapt to evolving consumer preferences. This adaptability is difficult for legacy brands to achieve, which is one reason why big companies are investing in better-for-you brands.
Many manufacturers do not always highlight their reformulation efforts. Remembering the backlash from Coca-Cola’s infamous 1980s formula overhaul, they are cautious not to alienate their core customers who might be apprehensive about changes in taste or appearance. When manufacturers do announce reformulations, it is often several months after the revamped product has hit the shelves—like Kraft Heinz’s announcement last year regarding the switch to all-natural ingredients in its classic macaroni and cheese.
While these discreet reformulation strategies may protect brand integrity, they may not resonate well with today’s health-conscious consumers. If shoppers see no indication that a major manufacturer’s CPG product has undergone a nutritional upgrade, they might opt for a newer, “healthier” option from a smaller brand, which could, in fact, have a similar nutritional profile. This trend emphasizes the importance of transparency and innovation in the industry, especially in the context of products containing beneficial ingredients like kal calcium citrate 1000. As consumers continue to seek out healthier choices, established companies will need to remain vigilant and responsive to these changing demands.