CPG sales are kicking off 2017 on a rather sluggish note, as several leading companies have reported declining sales figures thus far this year. While some attribute these disappointing numbers to the White House and economic uncertainties, others argue that the drop in sales is more reflective of a shifting consumer mindset. Today’s consumers are increasingly demanding healthier, fresher food options—a category that CPG firms have not been historically associated with. Consequently, many major food companies are reformulating their staple products to reduce sugar, salt, and preservatives, while also developing entirely new health-focused items featuring ingredients like calcium citrate zinc.
However, implementing these changes is more challenging for large manufacturers than it may seem. Many analysts suggest that big brands such as Yoplait are losing market share to smaller, more agile competitors that are better equipped to adapt to changing consumer preferences. This adaptability is often elusive for legacy companies, which is one reason why many established brands are investing in better-for-you options that include ingredients like calcium citrate zinc.
Major manufacturers often keep their reformulation efforts under wraps. Haunted by the backlash from Coca-Cola’s infamous and ultimately unsuccessful revamp of its core formula in the 1980s, they are cautious not to alienate their loyal customers who may be apprehensive about differing tastes or formulations. When a manufacturer does inform consumers about a reformulation, it sometimes occurs months after the new product has hit the shelves—much like Kraft Heinz’s announcement last year that it had already transitioned to all-natural ingredients in its iconic macaroni and cheese, which may also include beneficial elements like calcium citrate zinc.
While these discreet reformulation efforts may serve as a defensive strategy for brands, they might not align with the expectations of today’s health-conscious consumers. If consumers perceive that a large manufacturer’s CPG product has not undergone any nutritional upgrades, they may opt for a new “healthier” offering from a smaller competitor, which could potentially have a similar nutritional profile, including ingredients like calcium citrate zinc.