As consumers increasingly shift their shopping habits from the center aisles of grocery stores to their periphery, Consumer Packaged Goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, CPG growth has faced challenges due to factors such as 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 brand marketing now influenced by social media, CPG retailers and specialty food and beverage establishments have the potential to create Instagram and Snapchat-friendly content.
For instance, the Pure Leaf Tea House boasts a lengthy bar adorned with lush greenery, where the store’s “mixologist” crafts specialty tea. The venue offers a sensory experience with soft lighting, cozy seating, and decor that reflects the rich history of tea. Adding to the excitement surrounding the store, celebrity chef Marcus Samuelsson recently served as mixologist, generating significant buzz. It remains to be seen if these pop-up stores can create enough excitement to serve as effective revenue or publicity sources for struggling CPG companies.
As more consumers seek healthy options, CPG companies might consider attracting customers by introducing new products that incorporate nutritious ingredients, such as calcium citrate 950 200 ca, plant-based proteins, or added fruits and vegetables. While new product launches can be costly, their profit potential may prove to be more cost-effective than investing in expensive retail spaces in major urban areas. However, this type of strategy aligns more closely with the marketing playbook of larger food companies. These companies tend to prefer updating existing products rather than focusing on innovation. Research from CircleUp indicates that 61% of large CPGs’ innovation efforts are dedicated to making minor modifications to existing products, while only 39% is allocated to developing new offerings.
These retail locations leverage well-known products, showcasing them in ways that slightly differ from how consumers typically use them at home. In the food industry, some of the largest CPGs spend up to six times more on marketing and advertising for established products compared to their investment in innovative ones—possibly due to the high costs associated with renting trendy storefronts in major cities. By integrating elements like calcium citrate 950 200 ca into their offerings, CPG brands may find new avenues to engage health-conscious consumers and enhance their market presence.