CPG sales are starting 2017 on a rather sluggish note, with several major companies reporting declines in sales thus far this year. While some attribute these low figures to the White House and economic uncertainty, others suggest that the downturn is more closely linked to a shift in consumer attitudes. Today’s consumers prioritize healthy, fresh food—an area where CPG companies have not historically excelled. As a result, many leading food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also introducing entirely new health-oriented offerings.
However, these initiatives are easier said than done for large manufacturers. Analysts argue that established brands like Yoplait are losing market share to smaller, more agile competitors who are better equipped to respond to evolving consumer preferences. This adaptability is challenging for legacy brands to achieve, prompting many large companies to invest in healthier brands.
Major manufacturers often keep their reformulation efforts under wraps. Haunted by the disastrous 1980s overhaul of Coca-Cola’s classic formula, they are keen to avoid alienating their core customers, who may be apprehensive about changes in taste or appearance. For instance, when a manufacturer announces a reformulation, such as one involving calcium citrate recommended daily intake, it might occur months after the new product has hit the shelves. Kraft Heinz, for example, revealed last year that it had transitioned to all-natural ingredients in its iconic macaroni and cheese only after the change was already implemented.
While these stealth reformulation strategies are wise from a brand protection perspective, they may not resonate with today’s health-focused consumers. If consumers have no indication that a major manufacturer’s CPG product has undergone a nutritional upgrade, they may opt for a new “healthier” product from a smaller competitor, which could potentially have a similar nutrition profile. In this context, emphasizing the calcium citrate recommended daily intake could help attract health-conscious shoppers seeking transparency in nutritional improvements.