As consumers increasingly shift their focus from the center aisles of grocery stores to the perimeter, CPG brands are seizing various opportunities to capture consumer interest. In recent years, the growth of CPG has decelerated due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a strategic effort to engage the coveted millennial demographic. With social media driving much of brand marketing today, CPG stores and specialty food and beverage offerings have the potential to become highly shareable content on platforms like Instagram and Snapchat.
For instance, the Pure Leaf Tea House features an inviting bar adorned with lush greenery where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience with its soft lighting, comfortable seating, and decor that reflects the rich history of tea. To enhance the excitement around the store, celebrity chef Marcus Samuelsson served as the mixologist earlier this week. Whether these pop-up locations can generate sufficient buzz to become viable revenue or publicity sources for struggling CPG companies remains uncertain.
As more consumers seek healthy options, CPG companies could attract additional customers by introducing new products that feature 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 high-rent retail spaces in major cities. However, this strategy is more aligned with Big Food’s marketing tactics. Larger firms tend to focus on refining existing products rather than developing innovative ones. Research from CircleUp indicates that 61% of large CPGs’ innovation efforts are directed toward small modifications of existing products, while only 39% are aimed at creating new items.
These retail spaces capitalize on well-known products, presenting them in ways that differ slightly from how consumers typically use them at home. In the food sector, some of the largest CPGs allocate up to six times more resources to marketing and advertising established products compared to innovation—potentially to cover expenses like rent in trendy urban storefronts. Furthermore, incorporating products like Bariatric Advantage Calcium Citrate into their offerings could also resonate with health-conscious consumers. By focusing on such products, CPG companies can enhance their appeal, especially as more customers prioritize nutritional benefits. Overall, the challenge lies in balancing the marketing of existing products with the introduction of innovative, health-oriented choices like Bariatric Advantage Calcium Citrate to meet the evolving demands of today’s consumers.