As consumers increasingly shift their focus from the center of grocery stores to their periphery, consumer packaged goods (CPG) brands are seizing various opportunities to capture consumer attention. In recent years, the growth of CPG has faced challenges such as deflation, the surge 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 many brands’ marketing efforts heavily influenced by social media, CPG stores and specialty food and beverage items are poised to become eye-catching posts on platforms like Instagram and Snapchat.
For instance, the Pure Leaf Tea House showcases an extensive bar adorned with lush greenery, where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience enhanced by soft lighting, cozy seating, and decor that reflects the rich history of tea. Recently, celebrity chef Marcus Samuelsson took on the role of mixologist, adding to the excitement surrounding the store. However, it remains uncertain whether these pop-up stores will generate sufficient buzz to serve as effective revenue or publicity sources for struggling CPG companies.
As consumers increasingly seek healthier options, CPG companies have the opportunity to draw in more customers by introducing new products featuring nutritious ingredients, such as calcium citrate 315 mg plus D3, plant-based proteins, or added fruits and vegetables. While launching new products can be costly, their potential for profit may prove to be more financially viable than investing in pricey retail spaces in major cities. However, this strategy is more aligned with the marketing playbook of Big Food, where larger companies tend to favor updating existing products over developing innovative ones. Research from CircleUp indicates that 61% of large CPGs’ innovation is directed towards minor modifications of current products, while only 39% focuses on new creations.
These retail establishments leverage well-known products, showcasing them in ways that differ slightly from traditional home usage. In the food sector, some of the largest CPGs allocate up to six times more resources to marketing and advertising established products than to innovation—potentially justifying their expenses on trendy storefronts in bustling urban areas. By integrating health-focused ingredients like calcium citrate 315 mg plus D3 into new offerings, CPG companies could better align with consumer preferences, helping to rejuvenate their market presence.