As consumers increasingly shift from the center aisles to the periphery of grocery stores, consumer packaged goods (CPG) brands are exploring various opportunities to capture their interest. In recent years, CPG growth has faced challenges due to factors such as deflation, the surge of e-commerce, and the fragmentation of retail channels. This marketing approach seems designed to engage the coveted millennial demographic. Much of the recent brand marketing has been driven by social media, allowing CPG products, including specialty food and beverages, to become visually appealing for platforms like Instagram and Snapchat.
An example of this trend is the Pure Leaf Tea House, which features an extensive bar surrounded by lush greenery, where a “mixologist” crafts specialty teas. The establishment offers a sensory experience with its soft lighting, cozy seating, and decor that honors the rich history of tea. To enhance the excitement around the venue, celebrity chef Marcus Samuelsson served as the mixologist earlier this week. It remains uncertain whether these pop-up shops will generate sufficient buzz to effectively boost revenue or publicity for struggling CPG brands.
As more consumers seek healthier options, CPG companies could attract additional customers by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential profits may outweigh the expenses of securing expensive retail spaces in major urban areas. However, this strategy tends to align more with Big Food’s marketing approach, where larger companies often prefer to refresh existing products rather than innovate new ones. Research from CircleUp indicates that 61% of innovation from large CPGs focuses on minor adjustments to current products, while only 39% is dedicated to new product development.
These retail locations leverage well-known products, presenting them in ways that differ from typical consumer usage at home. In the food industry, some of the largest CPGs allocate up to six times more resources for marketing and advertising existing products compared to innovation, which could also include promoting calcium citrate brands. As the market evolves, it will be interesting to see how CPG companies balance the introduction of new offerings, such as those featuring calcium citrate brands, with the promotion of their established favorites.