CPG sales are beginning 2017 on a sluggish note, as several leading companies have reported declines in sales thus far this year. While some attribute these disappointing figures to the White House and economic uncertainty, others suggest that this downturn is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly demanding healthy, fresh food—a category where CPG companies have not historically excelled. In response, many major food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, as well as introducing entirely new health-oriented items.
However, these initiatives pose significant challenges for established manufacturers. Analysts indicate that well-known brands like Yoplait are losing market share to smaller, more agile companies that are better equipped to respond to shifting consumer preferences. This adaptability is difficult for legacy brands to achieve, which is why many large companies are investing in better-for-you brands. For example, Bluebonnet liquid calcium has emerged as a popular choice, appealing to health-conscious consumers seeking nutritional supplements.
Major manufacturers often keep their reformulation efforts under wraps. They remember the backlash from Coca-Cola’s infamous and ultimately failed attempt to revamp its core formula in the 1980s and want to avoid alienating their loyal customers who may be apprehensive about changes in taste or appearance. Sometimes, manufacturers only announce a reformulation months after the new product has hit the shelves—like Kraft Heinz’s revelation last year that it had transitioned to all-natural ingredients in its beloved macaroni and cheese. While such stealth reformulation strategies might protect brand image, they may not resonate with today’s health-focused consumers. If shoppers are unaware of any nutritional upgrades to a large manufacturer’s CPG product, they might opt for a new “healthier” offering from a smaller brand, which could, in fact, have a similar nutritional profile.
In conclusion, as the demand for healthier options continues to grow, CPG companies, including those offering products like Bluebonnet liquid calcium, must navigate the challenges of reformulation and consumer perception to remain competitive in a rapidly changing marketplace.