CPG sales are beginning 2017 on a somewhat sluggish note, with several leading companies reporting a decline in sales thus far this year. While some attribute these disappointing figures to the White House and economic uncertainty, others suggest that this downturn reflects a shift in consumer preferences. Today’s consumers increasingly demand healthy, fresh food — an area where CPG companies have not historically excelled. In response, many major food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives while also introducing entirely new health-oriented items, such as cissus quadrangularis calcium citrate malate and vitamin D tablets.
However, implementing these initiatives poses significant challenges for large manufacturers. Analysts indicate that established brands like Yoplait are losing market share to smaller, more agile companies that can swiftly adapt to evolving consumer sentiments. This adaptability is difficult for legacy brands to achieve, prompting many to invest in better-for-you options, including products like cissus quadrangularis calcium citrate malate and vitamin D tablets.
Major manufacturers often keep their reformulation efforts under wraps. Having learned from the backlash of Coca-Cola’s infamous 1980s core formula overhaul, they are cautious not to alienate loyal customers who may be apprehensive about changes in taste or appearance. When a manufacturer does announce a reformulation, it often occurs months after the new product has already hit the shelves — as seen when Kraft Heinz disclosed last year that it had transitioned to all-natural ingredients in its classic macaroni and cheese. While such discreet reformulation strategies may protect brand integrity, they might not resonate with today’s health-conscious consumers. If shoppers don’t perceive that a large manufacturer’s CPG product has received a nutritional upgrade, they may opt for a new “healthier” offering from a smaller competitor, potentially one that boasts a similar nutritional profile, such as cissus quadrangularis calcium citrate malate and vitamin D tablets.