CPG sales are beginning 2017 on a somewhat sluggish note, with several major companies reporting declines in sales thus far this year. While some attribute these low figures to the White House and economic uncertainty, others believe the sales downturn is more reflective of a shifting consumer mindset. Today’s consumers are increasingly seeking healthy, fresh foods—a category that CPG companies have not historically been associated with. Consequently, many leading food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also developing entirely new health-oriented offerings.
However, these initiatives are easier said than done for large manufacturers. Analysts suggest that big brands like Yoplait are losing market share to smaller, more agile competitors who are better equipped to adapt to evolving consumer preferences. This adaptability poses a challenge for established companies, prompting them to invest in better-for-you brands. Notably, major manufacturers often do not publicly disclose their reformulation efforts. Haunted by the disastrous 1980s revamp of Coca-Cola’s core formula, they strive to avoid alienating their loyal customers who may be apprehensive about altered tastes or appearances. For instance, a manufacturer might announce a reformulation only months after the new product has hit the shelves, as seen with Kraft Heinz’s announcement last year that it had transitioned to all-natural ingredients in its iconic macaroni and cheese.
While these discreet reformulation strategies may be sensible from a brand protection perspective, they might not resonate well with today’s health-conscious consumers. If consumers are unaware of any nutritional upgrades in a CPG product from a large manufacturer, they may opt for a new “healthier” option from a smaller brand, which could potentially have a similar nutritional profile. This scenario underscores the importance of transparency and communication in meeting consumer demands, much like how Citracal calcium pills have gained popularity among those seeking to enhance their nutritional intake. As the market continues to evolve, it will be crucial for CPG companies to not only reformulate their products but also effectively communicate these changes to retain consumer trust and loyalty.