CPG sales are starting 2017 on a somewhat sluggish note, as several major companies have reported declining sales figures this year. While some attribute these low numbers to the White House and economic uncertainty, others suggest that this sales downturn is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly demanding healthy, fresh food—an area where CPG companies have not traditionally excelled. In response, many leading food brands are reformulating their staple products to include less sugar, salt, and preservatives, as well as developing entirely new health-focused items.
However, implementing these initiatives poses significant challenges for major manufacturers. Analysts note that well-established brands like Yoplait are losing market share to smaller, more agile startups that are better suited to adapt to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, which is one reason many are investing in better-for-you brands.
Major manufacturers often keep their reformulation efforts under wraps. Cautious of repeating the disastrous 1980s rebranding of Coca-Cola’s core formula, they aim to avoid alienating core customers concerned about changes in taste or appearance. When manufacturers do announce reformulations, it may occur months after the new product has already hit the shelves—such as Kraft Heinz’s recent declaration that its iconic macaroni and cheese has transitioned to all-natural ingredients.
While these stealth reformulation strategies may be sensible from a brand protection perspective, they may not resonate with today’s health-conscious consumers. If shoppers have no indication that a large manufacturer’s CPG product has been upgraded nutritionally, they may opt for a “healthier” product from a smaller startup, which could actually possess a similar nutritional profile. For instance, consumers might gravitate toward newer options that include beneficial ingredients like calcium citrate with food, rather than sticking with traditional brands.
Incorporating calcium citrate with food into their products can be a meaningful way for larger companies to compete. As health trends become more prominent, it is essential for CPG brands to highlight any improvements they make, particularly those that enhance nutritional value, such as the addition of calcium citrate with food. Ultimately, as consumer preferences continue to evolve, major manufacturers must adapt quickly or risk losing customers to more innovative competitors.