CPG sales are kicking off 2017 on a somewhat sluggish note, as several major companies have reported a decline in sales thus far this year. While some attribute these disappointing figures to the uncertainty surrounding the White House and the economy, others believe the drop in sales is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly seeking healthy, fresh foods—an area in which CPG companies have not historically excelled. In response, many leading food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also launching entirely new health-oriented items.
However, these initiatives are often more challenging for large manufacturers to implement. Many analysts suggest that established brands like Yoplait are losing market share to smaller, more agile companies that can quickly adapt to evolving consumer preferences. This level of flexibility is difficult for legacy brands to achieve, prompting many big companies to invest in better-for-you brands. Major manufacturers don’t always make their reformulation efforts public. Remembering the backlash from Coca-Cola’s infamous and ultimately disastrous formula change in the 1980s, they are cautious about alienating their loyal customers, who may be apprehensive about altered tastes or appearances. For instance, when Kraft Heinz announced last year that it had switched to all-natural ingredients in its iconic macaroni and cheese, the news came months after the new product had already hit the shelves.
While these discreet reformulation efforts may protect brand integrity, they may not resonate with today’s health-conscious consumers. If consumers remain unaware that a large manufacturer’s product has received a nutritional upgrade, they might instead opt for a new “healthier” offering from a smaller competitor, which could potentially have a similar nutritional profile. This is particularly relevant in the context of ingredients like calcium citrate in water, which consumers are increasingly seeking out for their health benefits. As the market evolves, incorporating ingredients such as calcium citrate in water into reformulations could become a key strategy for these larger companies to regain consumer trust and interest.