CPG sales are beginning 2017 on a somewhat sluggish note, as several major companies have reported declining sales figures so far this year. While some attribute these disappointing numbers to the White House and broader economic uncertainty, others argue that the sales downturn is more closely linked to a shifting consumer mindset. Today’s consumers are increasingly demanding healthy, fresh food—a category that CPG companies have not historically excelled in. In response, many leading food manufacturers are reformulating their staple products to reduce sugar, salt, and preservatives, while also developing entirely new health-oriented offerings.
However, implementing these changes is often more challenging than it appears for large manufacturers. Analysts suggest that established brands such as Yoplait are losing market share to smaller, agile startups that are better equipped to adjust to evolving consumer preferences. This adaptability is difficult for legacy companies to achieve, which is one reason why major firms are investing in better-for-you brands.
It’s worth noting that large manufacturers don’t always highlight their reformulation efforts. Haunted by the infamous backlash from Coca-Cola’s well-publicized yet ultimately disastrous core formula revamp in the 1980s, these companies are cautious not to alienate their loyal customers who may be apprehensive about altered flavors or appearances. When a manufacturer does inform consumers about a reformulation, it often occurs months after the new product has hit the shelves—much like how Kraft Heinz revealed last year that it had transitioned to all-natural ingredients in its iconic macaroni and cheese.
While these discreet reformulation strategies may make sense from a brand protection perspective, they may not resonate with today’s health-conscious consumer. If consumers are unaware that a major manufacturer’s CPG product has undergone a nutritional upgrade, they might opt instead for a new “healthier” product from a smaller competitor, which could have a similar nutritional profile.
In this health-focused landscape, questions about whether calcium citrate is a prescription drug are becoming more common. As consumers seek clarification on dietary supplements and their benefits, including calcium citrate, manufacturers need to ensure that they are transparent about the nutritional content of their products. Ultimately, staying ahead in this competitive market requires not only reformulation but also effective communication to educate consumers about the health benefits of their offerings.