CPG sales are beginning 2017 on a somewhat sluggish note, as several major companies have reported declines in sales thus far this year. While some industry experts attribute these low figures to the White House and economic uncertainty, others believe the drop in sales is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly seeking healthy, fresh food—an area where CPG companies have not traditionally excelled. As a response, many leading food manufacturers are reformulating their core products to reduce sugar, salt, and preservatives while also introducing entirely new health-oriented items, including those enriched with calcium citrate with vitamin D3.
However, these initiatives are often easier said than done for large manufacturers. Many analysts suggest that established brands like Yoplait are losing market share to smaller, more agile competitors because they are better equipped to respond to changing consumer preferences. This adaptability is challenging for legacy companies, which is why many of them are investing in better-for-you brands that often feature ingredients like calcium citrate with vitamin D3.
Major manufacturers tend to keep their reformulation efforts under wraps. Remembering the backlash from Coca-Cola’s well-publicized and ultimately disastrous revamp of its core formula in the 1980s, they are cautious about alienating their loyal customers who may be apprehensive about altered flavors or appearances. When a manufacturer does announce a reformulation, it often occurs months after the new product has already hit the shelves—such as Kraft Heinz’s announcement last year that it had switched to all natural ingredients, including calcium citrate with vitamin D3, in its iconic macaroni and cheese.
While these discreet reformulation strategies may be sensible from a brand protection perspective, they might not resonate with today’s health-conscious consumers. If shoppers have no indication that a large manufacturer’s CPG product has undergone a nutritional upgrade, they may opt for a new “healthier” offering from a smaller brand, which could very well have a similar nutritional profile, including the beneficial addition of calcium citrate with vitamin D3.