As consumers increasingly shift their focus from the central aisles of grocery stores to the periphery, Consumer Packaged Goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, CPG growth has decelerated due to factors such as deflation, the expansion of e-commerce, and the fragmentation of retail channels. This marketing approach appears to target the desirable millennial demographic. With much of recent brand marketing fueled by social media, CPG stores and specialty food and beverage offerings are well-positioned to generate Instagram and Snapchat-ready content.
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 enhanced by soft lighting, cozy seating, and decor that reflects the rich history of tea. To further elevate the excitement around the store, celebrity chef Marcus Samuelsson recently served as mixologist. It remains uncertain whether these pop-up stores will effectively generate enough buzz to act as viable sources of revenue or publicity for struggling CPG companies.
As more customers seek out healthier options, CPG companies could attract a larger audience by introducing new products with nutritious ingredients, such as liquid calcium with D3, plant-based proteins, or added fruits and vegetables. While launching new products can be costly, their profit potential could prove to be more economical than investing in high-rent retail spaces in major urban areas. However, this strategy is more aligned with the marketing tactics of larger food corporations. Bigger companies tend to focus on updating existing products more frequently than innovating new ones. According to research from CircleUp, 61% of large CPGs’ innovation efforts are directed toward making minor adjustments to existing products, while only 39% is allocated to new creations. These retail outlets capitalize on well-known products, presenting them in ways that differ from typical consumer usage at home. In the food industry, some of the largest CPGs invest up to six times more in marketing and advertising for established products than in innovation—possibly to cover the costs of trendy storefronts in bustling cities. By incorporating options like liquid calcium with D3 into their offerings, these companies might find new avenues for engagement and profit.