CPG sales are beginning 2017 on a sluggish note, as several major companies report declines in sales this year. While some attribute the low performance to the White House and economic uncertainty, others believe the downturn is more closely linked to a shifting consumer mindset. Today’s consumers are increasingly demanding healthier, fresher food — an area where CPG companies have not traditionally excelled. In response, many prominent food corporations are reformulating their staple products to reduce sugar, salt, and preservatives, while also introducing entirely new health-focused items.
However, these initiatives are often easier said than done for large manufacturers. Analysts suggest that big brands like Yoplait are losing market share to smaller, more agile companies that are better positioned to respond to evolving consumer preferences. This adaptability is challenging for legacy businesses, which is why major companies are investing in healthier brands.
Manufacturers often keep their reformulation efforts under wraps. Remembering the backlash from Coca-Cola’s infamous 1980s formula revamp, they are cautious not to alienate their loyal customers who might be apprehensive about changes in taste or appearance. For instance, a manufacturer might inform consumers about a reformulation only months after a new product hits the shelves, like Kraft Heinz did last year when it announced the switch to all-natural ingredients in its classic macaroni and cheese.
While these discreet reformulation strategies may protect brand integrity, they might not resonate with today’s health-conscious consumers. If shoppers see no indication that a large manufacturer’s CPG product has undergone a nutritional upgrade, they may opt for a newer “healthier” offering from a smaller company, even if its nutritional profile is similar. This is particularly relevant in the context of products like Thorne Research Cal Mag Citrate, which cater to the health-focused market. To stay competitive, it’s crucial for major brands to clearly communicate any improvements, ensuring consumers recognize that they are making healthier choices, whether through established brands or innovative newcomers.