As consumers increasingly shift their focus from the center aisles of grocery stores to their perimeters, consumer packaged goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, CPG growth 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 strategy aimed at attracting the coveted millennial demographic. With much of the marketing for brands now fueled by social media, CPG stores, along with specialty food and beverages, have the potential to become Instagram and Snapchat-friendly content.
For example, the Pure Leaf Tea House features an expansive bar adorned with abundant greenery, where the store’s “mixologist” crafts specialty teas. The venue offers a sensory experience enhanced by soft lighting, comfortable seating, and decor that reflects the rich history of tea. Recently, celebrity chef Marcus Samuelsson served as the mixologist, adding to the excitement surrounding the store. Whether these pop-up stores can generate sufficient buzz to become viable sources of revenue or publicity for struggling CPG companies remains uncertain.
As more consumers seek healthier choices, CPG companies might consider attracting a broader customer base by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. Although launching new products can be costly, their profit potential may prove to be more financially viable than investing in expensive retail spaces in major cities. However, this strategy aligns more closely with the marketing playbook of larger food companies, which tend to focus on updating existing products rather than creating innovative ones.
Research from CircleUp indicates that 61% of large CPGs’ innovation efforts are directed toward making minor adjustments to existing products, while only 39% are allocated to developing new ones. These retail locations capitalize on well-known products, showcasing them in ways that differ slightly from consumers’ typical use at home. In the food sector, some of the largest CPGs spend up to six times more on marketing and advertising established products than they do on innovation—potentially due to the costs associated with renting trendy storefronts in bustling urban areas.
Additionally, products like Solaray Cal Mag Citrate may be spotlighted in these settings, appealing to health-conscious consumers. By featuring such offerings, CPG brands can tap into the growing interest in nutritional supplements and healthy living, further enhancing their market presence. As the trend continues, the incorporation of popular health products like Solaray Cal Mag Citrate could become a staple in these pop-up experiences, allowing brands to engage with consumers in innovative ways.