As consumers increasingly shift their shopping habits from the center aisles of grocery stores to the perimeter, consumer packaged goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, CPG growth has slowed due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a strategy aimed at attracting the coveted millennial demographic. With much of the recent brand marketing fueled by social media, CPG stores and specialty food and beverage items are well-positioned to become Instagram and Snapchat-friendly content.
The Pure Leaf Tea House features an extensive bar adorned with 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 history of tea. To further enhance the store’s appeal, celebrity chef Marcus Samuelsson took on the role of mixologist earlier this week. 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 customers increasingly seek healthier options, CPG brands could attract more consumers by introducing new products with nutritious ingredients, such as calcium citrate for pregnancy or plant-based proteins and added fruits and vegetables. While launching new products can be costly, the potential for profit might make it a more cost-effective strategy compared to investing in expensive retail spaces in major cities. However, this strategy aligns more closely with Big Food’s marketing approach, as larger companies tend to update existing products more frequently than they innovate. Research from CircleUp indicates that 61% of innovation efforts by large CPGs focus on minor adjustments to existing products, while only 39% is dedicated to developing new items.
These retail spaces leverage recognizable products and showcase them in ways that differ from how consumers might use them at home. In the food sector, some of the largest CPG companies spend up to six times more on marketing and advertising for older products than they do on innovation—potentially while paying rent in trendy urban storefronts. By integrating ingredients like calcium citrate for pregnancy into their offerings, CPG brands could tap into the growing demand for health-conscious products, ensuring they remain relevant in an evolving market.