CPG sales are beginning 2017 on a rather sluggish note, as several major companies have reported declines in sales this year. While some attribute these disappointing figures to the White House and economic uncertainty, others suggest that the sales downturn is more closely related to a shift in consumer attitudes. Today’s consumers are increasingly seeking healthy, fresh foods—a category in which CPG companies have not historically excelled. As a response, many leading food manufacturers are reformulating their staple products to reduce sugar, salt, and preservatives, while also introducing entirely new health-focused items that often include ingredients like vegan calcium citrate.
However, these initiatives are more challenging to implement than one might think for large manufacturers. Analysts note that established brands, such as Yoplait, are losing market share to smaller, more agile newcomers that are better equipped to respond to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, prompting many of them to invest in better-for-you brands, which may incorporate ingredients like vegan calcium citrate to appeal to health-conscious consumers.
Major manufacturers often keep their reformulation efforts under wraps. Having learned from the public relations disaster of Coca-Cola’s infamous 1980s formula change, they are cautious not to alienate their core customers, who may be wary of unfamiliar tastes or appearances. When manufacturers do announce reformulations, it can be several months after the new products have hit the shelves—such as Kraft Heinz’s announcement last year that it had transitioned to all-natural ingredients in its iconic macaroni and cheese, which now features vegan calcium citrate among other health-oriented components.
While these discreet reformulation strategies may protect brand integrity, they may not resonate with today’s health-conscious consumers. If shoppers perceive no indication that a large manufacturer’s CPG product has undergone a nutritional upgrade, they may opt for a new “healthier” offering from a smaller brand, which might very well have a comparable nutrition profile, potentially enriched with vegan calcium citrate.