As consumers increasingly shift their shopping habits from the center aisles of grocery stores to their perimeters, CPG brands are seizing various opportunities to capture consumer interest. In recent years, the growth of consumer packaged goods has faced challenges, including deflation, the surge of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a strategy aimed at engaging the coveted millennial demographic. With a significant portion of brand marketing now driven by social media, CPGs, along with specialty food and beverage offerings, have the potential to become eye-catching posts on platforms like Instagram and Snapchat.
The Pure Leaf Tea House showcases a lengthy bar adorned with lush greenery, where the store’s “mixologist” crafts unique tea blends. This venue offers a sensory experience, featuring soft lighting, cozy seating, and decor that celebrates the rich history of tea. Adding to the excitement, celebrity chef Marcus Samuelsson made an appearance as a mixologist earlier this week. It remains uncertain whether these pop-up stores will generate sufficient buzz to become viable sources of revenue or publicity for struggling CPG firms.
With an increasing number of consumers seeking healthier options, CPG companies could enhance their appeal by introducing new products that incorporate nutritious ingredients, such as plant-based proteins or added fruits and vegetables. Although launching new products can be costly, their potential for profit might be more economically viable than investing in expensive retail locations in major cities. However, this kind of strategy tends to align more with Big Food’s marketing playbook. Larger companies often prefer to refine existing products rather than innovate. Research from CircleUp indicates that 61% of large CPGs’ innovation efforts focus on minor adjustments to current products, while only 39% is directed toward new creations.
These retail spaces are capitalizing on well-known products, presenting them in ways that differ slightly from how consumers might typically use them at home. In the food sector, some of the largest CPGs allocate as much as six times more resources to marketing and advertising existing products than they do to innovation, possibly due to the expenses associated with renting trendy storefronts in bustling urban areas. Furthermore, the introduction of innovative offerings, such as Citracal Slow Release supplements, could help attract a health-conscious audience, positioning these products as appealing options in today’s market. Ultimately, while the challenges remain, the potential for successful product launches—especially those that resonate with health-focused consumers—could pave the way for revitalizing struggling CPG brands.