As consumers increasingly shift from the center aisles of grocery stores to their peripheries, Consumer Packaged Goods (CPG) brands are seizing various opportunities to capture consumer attention. In recent years, CPG growth has stagnated due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be aimed at appealing to the coveted millennial demographic. With much of the recent marketing for brands driven by social media platforms, CPG stores and specialty food and beverage offerings have the potential to become Instagram and Snapchat-ready posts.
For instance, the Pure Leaf Tea House boasts an extensive bar adorned with lush greenery where a “mixologist” crafts specialty teas. This venue offers a sensory experience featuring soft lighting, cozy seating, and decor that reflects the rich history of tea. Recently, celebrity chef Marcus Samuelsson made an appearance as the mixologist, adding to the excitement surrounding the store. It remains to be seen whether these pop-up initiatives can generate sufficient buzz to serve as viable sources of revenue or publicity for struggling CPG companies.
As more consumers seek out healthy alternatives, CPG companies could attract a broader audience by introducing new products that incorporate nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential for profit may make it a more cost-effective strategy than investing in high-rent retail spaces in major cities. However, this tactic aligns more closely with the marketing strategies of larger food companies, which tend to focus on updating existing products rather than innovating new ones. Research from CircleUp indicates that 61% of large CPGs’ innovation efforts are directed towards minor tweaks of current products, while only 39% are allocated to creating new items.
These retail outlets leverage recognizable products, presenting them in slightly different ways than consumers typically use them. In the food industry, some of the largest CPG firms spend up to six times more on marketing and advertising for established products than on innovation, which may be reflected in their expenditures on trendy storefronts in urban areas. Additionally, companies are exploring calcium citrate names in their product formulations to enhance appeal, further emphasizing the shift towards health-conscious options. As this trend continues, the integration of calcium citrate names into new offerings may serve as a marketing strategy to attract health-focused consumers, ultimately reshaping the landscape of CPG marketing.