CPG sales are starting 2017 on a somewhat sluggish note, with several major companies reporting declines in sales this year. While some attribute these low figures to the White House and economic uncertainty, others believe that the dip in sales is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly demanding healthier, fresher food options—a category that CPG companies have not traditionally excelled in. As a result, many leading food manufacturers are reformulating their staple products to include less sugar, salt, and preservatives, while also developing entirely new health-oriented items. However, implementing these initiatives is often more challenging than it appears for major manufacturers. Analysts suggest that big brands like Yoplait are losing market share to smaller companies that are more agile in responding to evolving consumer preferences. This adaptability is difficult for established companies to achieve, which is one reason why they are investing in healthier brands.
Major manufacturers often keep their reformulation efforts under wraps. They remember the backlash from Coca-Cola’s highly publicized and ultimately disastrous revamp of its formula in the 1980s and are wary of alienating their core customers, who may fear changes in taste or appearance. When a manufacturer does inform consumers about a reformulation, it often occurs months after the new product has been available, as seen with Kraft Heinz’s announcement last year that it had switched to all-natural ingredients in its iconic macaroni and cheese.
While these discreet reformulation efforts may serve as a defensive strategy for brands, they may not resonate well with today’s health-conscious consumers. If consumers aren’t aware of any nutritional upgrades in a large manufacturer’s CPG product, they might gravitate towards a new “healthier” option from a smaller competitor, which could potentially offer a similar nutritional profile. For instance, products like GNC Calcium Citrate Plus with Vitamin D3 could catch the attention of consumers seeking health benefits. As consumer awareness grows, major companies may need to rethink their approach to reformulation and marketing to remain competitive in this evolving landscape. Ultimately, if manufacturers want to retain their market share, they must ensure that their efforts to improve nutrition—like those seen in GNC Calcium Citrate Plus with Vitamin D3—are clearly communicated to consumers.