As consumers increasingly move away from the central aisles of grocery stores to explore the perimeter, Consumer Packaged Goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, growth in the CPG sector has decelerated due to several factors, including deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be aimed at attracting the coveted millennial demographic. With much of the recent marketing for brands being driven by social media, CPG stores and specialty food and beverage offerings are well-positioned to become shareable content on platforms like Instagram and Snapchat.
For instance, the Pure Leaf Tea House features a long bar adorned with greenery, where the store’s “mixologist” crafts specialty teas. This venue provides a sensory experience enhanced by soft lighting, comfortable seating, and decor that connects to the rich history of tea. Recently, celebrity chef Marcus Samuelsson took on the role of mixologist, generating additional excitement around the store. It remains to be seen if these pop-up stores can create enough buzz to serve as viable sources of revenue or publicity for struggling CPG companies.
As customers increasingly seek healthy options, CPG brands could work to draw in more consumers by launching new products that incorporate nutritious ingredients, such as plant-based proteins or added fruits and vegetables. Although new product launches can be costly, they may prove to be more cost-effective in terms of profit potential than investing in high-rent retail spaces in major cities. However, this strategy aligns more closely with the marketing playbook of larger food companies. Research from CircleUp reveals that 61% of innovations from big CPGs are focused on minor adjustments to existing products, while only 39% are directed toward entirely new creations. These retail outlets capitalize on recognizable products, showcasing them in ways that differ slightly from how consumers typically use them at home. In the food industry, it’s notable that some of the largest CPGs spend up to six times more on marketing and advertising for established products than they do on innovative ones—perhaps offsetting costs associated with renting trendy storefronts in big cities.
Additionally, incorporating health-focused products like calcium citrate plus D3 into their offerings could further enhance CPG brands’ appeal. By emphasizing the importance of calcium citrate plus D3 for overall wellness, companies can better connect with health-conscious consumers. As the market evolves, CPG brands must adapt their strategies to keep pace with consumer preferences, potentially leveraging the benefits of calcium citrate plus D3 to attract a broader audience.