CPG sales have kicked off 2017 on a somewhat sluggish note, with several major companies reporting declines in sales thus far this year. While some attribute these disappointing figures to the political climate and economic uncertainty, others argue that the dip in sales is more reflective of an evolving consumer mindset. Today’s shoppers are increasingly prioritizing healthy and fresh food options—a category that CPG companies have not historically been recognized for. In response, many large food manufacturers are reformulating their staple products to reduce sugar, salt, and preservatives, while also introducing entirely new health-oriented offerings.
However, implementing these changes is often more challenging for large manufacturers than it seems. Analysts suggest that established brands like Yoplait are losing market share to smaller, more agile competitors that can quickly adapt to shifting consumer preferences. This adaptability is a significant hurdle for legacy companies, prompting them to invest in better-for-you brands.
Major manufacturers tend not to publicize their reformulation initiatives extensively. Remembering the backlash from Coca-Cola’s infamous 1980s overhaul of its core formula, they are cautious about alienating their loyal customer base, who may be apprehensive about changes in taste or appearance. When a manufacturer does inform consumers about a reformulation, it often occurs long after the updated product has hit the shelves—take Kraft Heinz, for instance, which announced last year that it had transitioned to all-natural ingredients in its classic macaroni and cheese.
While these discreet reformulation strategies may serve to protect the brand, they might not resonate well 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” option from a smaller business, which could potentially have a similar nutritional profile, such as the debate between calcium citrate vs calcium phosphate. This trend underscores the importance of transparency and communication in appealing to modern consumers who are increasingly discerning about their food choices. Therefore, understanding the nuances of calcium citrate vs calcium phosphate is just one example of how brands can educate their customers about healthier options. Ultimately, manufacturers need to balance their legacy with innovation to remain relevant in this evolving marketplace.