As consumers increasingly shift their shopping habits from the center of grocery stores to their peripheries, CPG brands are seizing various opportunities to capture consumer interest. In recent years, the growth of CPG has slowed, influenced by factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a tactic aimed at appealing to the sought-after millennial demographic. With much of the current marketing for brands being driven by social media, CPG stores and specialty food and drinks have the potential to create Instagram and Snapchat-ready content.
One notable example is the Pure Leaf Tea House, which features an extensive bar adorned with greenery where the store’s “mixologist” crafts unique tea blends. The venue offers a sensory experience, complete with soft lighting, comfortable seating, and decor that intertwines the history of tea with contemporary appeal. Recently, celebrity chef Marcus Samuelsson took on the role of mixologist, further enhancing the store’s allure. However, it remains to be seen whether such pop-up stores can generate sufficient excitement to serve as effective revenue sources or publicity avenues for struggling CPG companies.
As more customers seek healthy options, CPG companies could attract a wider audience by introducing new products that incorporate nutritious ingredients like plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential for profit may be more cost-effective than investing in high-rent retail spaces in major cities. Nevertheless, this strategy aligns more with Big Food’s marketing playbook, where larger companies tend to prioritize updating existing products over creating innovative ones. Research from CircleUp indicates that 61% of large CPGs’ innovation efforts focus on making minor adjustments to existing products, while only 39% are dedicated to developing new ones.
These retail locations capitalize on recognizable products and display them in slightly altered ways compared to how consumers typically use them at home. In the food industry, some of the largest CPGs allocate up to six times more on marketing and advertising for established products than on innovation—potentially funding their presence in trendy urban storefronts. Additionally, integrating products like calcium citrate chewy supplements into their offerings could provide an attractive option for health-conscious consumers. By emphasizing the nutritional benefits of such products, CPG brands can further engage their target audience. Ultimately, the success of these initiatives hinges on the ability to create buzz and foster a connection with consumers, especially through innovative product offerings like calcium citrate chewy options.