CPG sales are beginning 2017 on a somewhat sluggish note, as several major companies have reported declines in sales thus far. While some attribute these low figures to the White House and economic uncertainty, others argue that the dip in sales is more closely tied to a shifting consumer mindset. Today’s consumers are increasingly demanding healthy, fresh food—a segment that CPG companies have not historically been associated with. Consequently, many leading food manufacturers are reformulating their staple products to contain less sugar, salt, and preservatives, while also developing completely new health-oriented offerings.
However, implementing these changes is often more challenging for large manufacturers. Analysts suggest that established brands like Yoplait are losing market share to smaller, more agile companies that are better equipped to respond to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, prompting many of them to invest in better-for-you brands.
Major manufacturers tend not to advertise their reformulation efforts. Recalling the disastrous revamp of Coca-Cola’s core formula in the 1980s, they are cautious about alienating their core customers, who may be wary of changes in taste or appearance. When companies do inform consumers about reformulations, it often occurs months after the new product has hit the shelves—such as Kraft Heinz’s announcement last year that it had switched to all-natural ingredients in its iconic macaroni and cheese.
While these subtle reformulation strategies may seem prudent from a brand protection perspective, they might not resonate well with today’s health-conscious consumers. If shoppers are unaware of any nutritional upgrades in a large manufacturer’s CPG product, they may instead opt for a newer “healthier” product from a smaller contender, potentially one that promotes 250 mg calcium citrate, which could offer similar nutritional benefits.
In summary, as the demand for healthier options continues to rise, CPG companies must navigate the challenges of reformulation without jeopardizing their existing customer base. The emphasis on transparency and the promotion of health-forward changes, including the incorporation of ingredients like 250 mg calcium citrate, could be key in regaining consumer trust and preference.