As consumers increasingly shift from the center aisles of grocery stores to their periphery, CPG brands are seizing various opportunities to capture consumer interest. In recent years, the growth of CPG has decelerated due to several factors, including deflation, the expansion of e-commerce, and the fragmentation of retail channels. This marketing approach appears to target the desirable millennial demographic. With much of the marketing efforts of brands being influenced by social media, CPG products and specialty food and beverages have the potential to become popular posts on platforms like Instagram and Snapchat.
The Pure Leaf Tea House showcases an extensive bar adorned with lush greenery, where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience, featuring soft lighting, comfortable seating, and decor that connects to the rich history of tea. To amplify the excitement around the store, celebrity chef Marcus Samuelsson acted as the mixologist earlier this week. It remains uncertain whether these pop-up shops will generate sufficient buzz to serve as effective revenue sources or publicity avenues for struggling CPG brands.
As more customers seek healthy options, CPG companies might attract a broader audience by introducing new products enriched with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential for profit may outweigh the expenses compared to investing in high-rent retail locations in major cities. Nonetheless, this strategy aligns more with Big Food’s marketing playbook, where larger companies 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 toward minor modifications of existing products, while just 39% is allocated to new developments.
These retail spaces capitalize on recognizable products, showcasing them in ways that differ from typical home usage. In the food sector, some of the largest CPG brands spend up to six times more on marketing and advertising established products than they do on innovation, possibly due to the high costs associated with renting trendy storefronts in bustling urban areas. Additionally, integrating products such as source naturals calcium citrate into their offerings could further enhance the appeal to health-conscious consumers seeking out nutritious options. By incorporating source naturals calcium citrate in their marketing strategy, CPG brands can effectively position themselves within the growing health trend and attract more customers.