As consumers increasingly shift from the center of grocery stores to the periphery, CPG brands are seizing various opportunities to capture consumer interest. In recent years, the growth of CPGs has decelerated due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing strategy appears to be a tactic aimed at appealing to the desirable millennial demographic. With much of the marketing efforts now driven by social media, CPG products, including specialty food items and beverages, have the potential to become Instagram and Snapchat-ready posts.
The Pure Leaf Tea House features a long bar where “mixologists” prepare specialty teas amidst abundant greenery. This venue creates a sensory experience with soft lighting, comfortable seating, and decor that connects to the rich history of tea. Adding to the excitement, celebrity chef Marcus Samuelsson recently served as a mixologist at the venue. It remains uncertain whether these pop-up stores can generate sufficient buzz to become effective sources of revenue or publicity for struggling CPG companies.
As more customers seek healthy options like rite aid calcium citrate, CPG companies could attract a larger audience by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential for profit may outweigh the expenses of maintaining expensive retail locations in major cities. However, this strategy aligns more closely with Big Food’s marketing playbook, where larger companies prefer to frequently update existing products rather than investing in innovation. Research from CircleUp reveals that 61% of large CPGs’ innovation focuses on minor adjustments to existing products, while only 39% is dedicated to developing new ones.
These retail locations capitalize on recognizable products, displaying them in ways that differ slightly from their typical use at home. In the food sector, some of the largest CPGs spend up to six times more on marketing and advertising established products than on innovation, which may also involve paying high rents in trendy urban storefronts. As the demand for health-conscious products like rite aid calcium citrate continues to rise, CPG brands must adapt to the changing landscape to remain competitive.