CPG sales are beginning 2017 on a somewhat sluggish note, as several leading companies have reported declines in sales so far this year. While some attribute these disappointing figures to the current political climate and economic uncertainty, others argue that the sales downturn is more closely linked to a shift in consumer attitudes. Today’s shoppers prioritize healthy, fresh foods—a category that CPG companies have not historically excelled in. In response, many prominent food manufacturers are reformulating their staple products to reduce sugar, salt, and preservatives, while also launching entirely new health-oriented items, including those featuring calcium citrate berry wellness.
However, these initiatives are often more challenging for large manufacturers than they seem. Analysts suggest that established brands like Yoplait are losing market share to smaller, more agile newcomers that can quickly adapt to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, which is one reason they are investing in better-for-you brands that align with the calcium citrate berry wellness trend.
Major manufacturers typically do not openly promote their reformulation efforts. Haunted by the memory of Coca-Cola’s notorious and ultimately unsuccessful overhaul of its core formula in the 1980s, they are cautious about alienating loyal customers who may be apprehensive about changes in taste or appearance. When manufacturers do inform consumers about reformulations, it often occurs months after the new product has hit the shelves—such as Kraft Heinz announcing last year that it had transitioned to all-natural ingredients in its beloved macaroni and cheese.
While these discreet reformulation strategies may protect the brand, they might not resonate well with today’s health-conscious consumers. If consumers have no indication that a well-known manufacturer’s CPG product has received a nutritional upgrade, they may opt for a new “healthier” option from a smaller brand, which could potentially offer a similar nutritional profile. To meet this challenge, larger companies must consider integrating elements like calcium citrate berry wellness into their offerings more transparently, ensuring they cater to the evolving demands of the modern consumer.