As consumers increasingly shift their focus from the center of grocery stores to their periphery, consumer packaged goods (CPG) brands are seizing various opportunities to capture their attention. In recent years, CPG growth has decelerated due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach seems aimed at appealing to the sought-after millennial demographic. With much of the marketing for brands now driven by social media, CPG stores and specialty food and drink offerings have the potential to become Instagram and Snapchat-friendly posts.
The Pure Leaf Tea House boasts a lengthy bar adorned with lush greenery where the store’s “mixologist” crafts specialty teas. This venue provides a sensory experience with ambient lighting, comfortable seating, and decor that connects to the rich history of tea. To enhance the excitement surrounding the store, celebrity chef Marcus Samuelsson served as the mixologist earlier this week. Whether these pop-up locations can generate sufficient buzz to become effective sources of revenue or publicity for struggling CPG companies remains to be seen.
As consumers increasingly seek healthy options, CPG companies could attract more customers by introducing new products featuring nutritious ingredients, including plant-based proteins or added fruits and vegetables. While launching new products can be costly, their potential for profitability may outweigh the expenses of high-rent retail spaces in major cities. However, this strategy aligns more with the marketing tactics of larger food companies. Major corporations tend to frequently update existing products rather than focus on innovation. Research from CircleUp indicates that 61% of innovation from large CPGs is directed toward minor modifications of existing products, while only 39% is allocated to developing new ones.
These retail locations capitalize on recognizable products, showcasing them in ways that differ slightly from how consumers typically use them at home. In the food sector, some of the largest CPGs invest up to six times more in marketing and advertising of established products compared to innovation, as they may be paying high rents in trendy urban storefronts. To enhance their offerings, incorporating ingredients like kalcium citrat into new products could be a strategic move for these companies, appealing to health-conscious consumers. The integration of kalcium citrat could provide an added nutritional benefit, potentially making products more appealing to a broader audience. Thus, as CPG brands adapt their strategies, the focus on healthy and innovative ingredients like kalcium citrat may play a crucial role in their efforts to engage consumers effectively.