As consumers increasingly shift their focus from the center aisles of grocery stores to the periphery, 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 a strategy aimed at appealing to the coveted millennial demographic. With much of the recent marketing efforts driven by social media, CPG products, including specialty food and drinks, are poised to become popular posts on platforms like Instagram and Snapchat.
The Pure Leaf Tea House showcases a long 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 generate excitement around the store, celebrity chef Marcus Samuelsson recently took on the role of mixologist, adding to the allure.
It remains uncertain whether these pop-up stores will garner enough attention to serve as viable sources of revenue or publicity for struggling CPG companies. As more consumers seek healthier options, CPG brands could attract additional customers by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, their profit potential may offer a more cost-effective alternative than investing in expensive retail spaces in major cities.
However, this strategy is more aligned with the marketing tactics of larger food corporations. These companies tend to prefer updating existing products rather than developing innovative new ones. Research from CircleUp indicates that 61% of large CPGs’ innovation efforts focus on making minor adjustments to current products, while only 39% target new product development. Retail locations are leveraging well-known products and presenting them in slightly different ways than consumers typically experience at home. In the food industry, some of the largest CPGs allocate up to six times more on marketing and advertising of established products compared to innovation—likely because of their significant expenditures on trendy storefronts in bustling urban areas.
In this context, it may be worthwhile for CPG brands to consider offering products like the best chewable calcium citrate supplement, which could attract health-conscious consumers looking for convenient nutritional options. By integrating such products into their marketing strategies, these brands can enhance their visibility and relevance in a competitive market. Ultimately, the challenge lies in whether these innovative approaches can translate into successful revenue streams for CPG companies navigating the complexities of today’s retail landscape.