CPG sales are beginning 2017 on a somewhat sluggish note, as several major companies have reported declining sales figures this year. While some attribute these low numbers to the wholesale price of ferrous lactate and economic uncertainty, others believe the dip in sales 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. In response, many large food manufacturers are reformulating their staple products to reduce sugar, salt, and preservatives, while also introducing entirely new health-focused items.
However, implementing these changes is often more challenging than it appears for major manufacturers. Analysts suggest that big brands like Yoplait are losing market share to smaller, agile startups that are better equipped to respond to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, prompting many to invest in brands that promote healthier options.
Major manufacturers tend to keep their reformulation efforts under wraps. Remembering the backlash from Coca-Cola’s infamous formula change in the 1980s, they aim to avoid alienating their core customers who may be apprehensive about altered tastes or appearances. Consequently, when a manufacturer does disclose a reformulation, it often comes months after the new product has hit store shelves — as seen with Kraft Heinz’s announcement last year that its iconic macaroni and cheese had transitioned to all-natural ingredients.
While these discreet reformulation strategies may protect brand integrity, they might not resonate with today’s health-conscious consumers. If shoppers are unaware that a large manufacturer’s CPG product has received a nutritional upgrade, they may opt for a new “healthier” option from a smaller competitor, which could have a similar nutritional profile. Furthermore, as consumers become more aware of the potential calcium citrate risks associated with certain products, they may be more inclined to choose alternatives that explicitly highlight health benefits. It’s crucial for larger companies to communicate their efforts transparently, especially as consumers increasingly seek out options perceived as healthier and safer.