CPG sales are beginning 2017 on a somewhat sluggish note, as several major companies have reported declines in sales thus far this year. While some attribute these disappointing figures to the White House and economic uncertainty, others believe the drop in sales is more closely linked to a shift in consumer attitudes. Today’s shoppers are increasingly demanding healthier, fresh food options—a category that CPG companies have not typically excelled in. As a result, many leading food companies are reformulating their staple products to reduce sugar, salt, and preservatives, while also introducing entirely new health-focused items.
However, implementing these changes is often more challenging for larger manufacturers. Many analysts suggest that established brands like Yoplait are losing market share to smaller, more agile upstarts that can better respond to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, which is one reason why many big corporations are investing in better-for-you brands.
Major manufacturers tend to keep their reformulation efforts under wraps. Reflecting on the infamous backlash from Coca-Cola’s heavily publicized and ultimately disastrous formula change in the 1980s, they are cautious not to alienate their core customers who may fear alterations in taste or appearance. When a manufacturer does inform consumers about a reformulation, it often occurs months after the new product has already hit the shelves—like Kraft Heinz’s announcement last year that it had switched to all-natural ingredients in its beloved macaroni and cheese.
While these discreet reformulation strategies may make sense from a brand protection perspective, they might not resonate well with today’s health-conscious consumers. If shoppers do not perceive that a major manufacturer’s CPG product has undergone a nutritional upgrade, they may gravitate toward a new “healthier” option from a smaller company, which could have a similar nutritional profile.
Furthermore, consumers are increasingly aware of the potential side effects associated with certain ingredients, such as those found in products containing kirkland calcium citrate magnesium and zinc. This awareness could influence their purchasing decisions, leading them to favor brands that transparently communicate their reformulation efforts, especially concerning any side effects related to health supplements. In this environment, it’s crucial for larger manufacturers to align their products with the health-conscious mindset of consumers, particularly regarding the nutritional benefits and possible side effects of ingredients like kirkland calcium citrate magnesium and zinc.