CPG sales are beginning 2017 on a somewhat sluggish note, with several major companies reporting declines in sales thus far this year. While some attribute these disappointing figures to factors like the White House and economic uncertainty, others believe the dip is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly seeking healthy and fresh food options—a market segment where CPG companies have not traditionally excelled. In response, many prominent food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also developing entirely new health-centric offerings, such as now calcium citrate caps.
However, these initiatives are more challenging for large manufacturers than they might seem. Many analysts argue that established brands like Yoplait are losing market share to smaller competitors that are more agile in adapting to evolving consumer preferences. This adaptability is often difficult for legacy companies to achieve, prompting many of them to invest in better-for-you brands, including those featuring now calcium citrate caps.
Major manufacturers often keep their reformulation efforts under wraps. Given the backlash from Coca-Cola’s well-publicized and ultimately disastrous 1980s formula change, they are cautious about alienating core customers who might be wary of altered flavors or appearances. Consequently, manufacturers may announce reformulations only after the new product has been available for some time; for instance, Kraft Heinz revealed last year that it had transitioned to all-natural ingredients in its iconic macaroni and cheese.
While these discreet reformulation strategies may be prudent from a brand protection perspective, they may not align with the expectations of today’s health-conscious consumers. If consumers are unaware of any nutritional upgrades to a large manufacturer’s CPG product, they might opt instead for a “healthier” alternative from a smaller company, which may offer a similar nutritional profile, potentially including options like now calcium citrate caps.