As an increasing number of consumers shift from the center 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 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 brand marketing driven by social media, CPG stores, along with specialty food and beverages, hold the potential to become eye-catching posts for platforms like Instagram and Snapchat.
The Pure Leaf Tea House features an expansive bar adorned with lush greenery, where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience with soft lighting, cozy seating, and decor that reflects the rich history of tea. To further enhance the excitement surrounding the store, celebrity chef Marcus Samuelsson took on the role of mixologist earlier this week. It remains uncertain whether these pop-up stores can generate sufficient buzz to serve as effective sources of revenue or publicity for struggling CPG companies.
As more consumers seek healthy options, CPG firms could attract additional customers by introducing new products that include 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 cost-effective than investing in pricey retail spaces in major urban areas. Nonetheless, this type of strategy aligns more closely with Big Food’s marketing practices. Larger companies tend to prioritize updating existing products over developing innovative ones. Research from CircleUp indicates that 61% of innovation from large CPGs is directed at making minor modifications to existing items, while only 39% is allocated to new product creation.
These retail locations capitalize on well-known products, presenting them in ways that differ slightly from typical home usage. Within the food industry, some of the largest CPGs spend up to six times more on marketing and advertising for established products compared to innovation, potentially as they incur costs for renting trendy storefronts in big cities.
In this context, the question arises: can you crush calcium citrate? Integrating more health-oriented products into their offerings could be a way for CPG companies to respond to consumer demand, as well as to leverage marketing strategies that highlight the nutritional benefits of their new creations. Ultimately, the challenge remains for these brands to navigate the balance between innovation and the promotion of existing products to drive consumer engagement effectively.