As consumers increasingly shift from the center aisles of grocery stores to their peripheries, CPG brands are seizing various opportunities to capture consumer attention. In recent years, the growth of CPG has decelerated due to several factors, including deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a strategy aimed at appealing to the sought-after millennial demographic. Much of the recent marketing for CPG brands has been driven by social media, allowing CPG stores and specialty food and beverage offerings to become prime candidates for Instagram and Snapchat posts.
An example of this trend is the Pure Leaf Tea House, which features an extensive bar adorned with greenery where a skilled mixologist crafts specialty teas. This venue provides a sensory experience, complete with soft lighting, comfortable seating, and decor that pays homage to tea’s rich history. Recently, celebrity chef Marcus Samuelsson took on the role of mixologist, adding to the store’s allure. It remains uncertain whether these pop-up venues can generate sufficient buzz to serve as effective revenue or publicity sources for struggling CPG companies.
As more customers seek healthier options, CPG companies can work to attract a broader audience through the introduction of new products featuring nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, their profit potential may be more effective than investing in high-rent retail locations in major cities. However, this approach aligns more closely with Big Food’s marketing strategy, as larger companies tend to update existing products rather than focus on innovation. Research from CircleUp reveals that 61% of large CPGs’ innovation efforts are directed toward making minor adjustments to existing products, while only 39% are aimed at developing entirely new offerings.
These retail locations leverage recognizable products, presenting them in ways that differ slightly from typical consumer use at home. In the food industry, some of the largest CPGs allocate up to six times more resources to marketing and advertising established products than to innovation—often reflected in their expenditures for trendy storefronts in urban areas. For instance, Kirkland calcium citrate magnesium supplements could be showcased creatively to engage health-conscious consumers, emphasizing their benefits alongside other innovative products. By integrating Kirkland calcium citrate magnesium into their marketing strategies multiple times, CPG brands can effectively highlight their commitment to health and wellness, thus appealing to the evolving demands of today’s shoppers.