As consumers increasingly shift their shopping habits from the center aisles of grocery stores to their peripheries, consumer packaged goods (CPG) brands are seizing various opportunities to capture consumer attention. In recent years, CPG growth has experienced a slowdown 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 desirable millennial demographic. With much of the recent brand marketing being driven by social media, CPG stores and specialty food and beverages have the potential to become eye-catching posts on platforms like Instagram and Snapchat.
The Pure Leaf Tea House, for instance, boasts a lengthy bar adorned with lush greenery, where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience enhanced by soft lighting, comfortable seating, and decor that reflects the rich history of tea. Recently, to elevate the excitement around the store, celebrity chef Marcus Samuelsson stepped in as the mixologist. However, it remains uncertain whether these pop-up shops will generate enough buzz to serve as effective revenue or publicity sources for struggling CPG companies.
As a growing number of customers seek healthier options, CPG companies could attract more consumers by launching new products featuring nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While introducing new products can be costly, the potential for profit may be more economically viable than investing in expensive retail spaces in major cities. Nonetheless, this kind of strategy aligns more closely with the marketing playbook of Big Food. Larger companies tend to favor updating existing products more frequently than creating innovative ones. Research from CircleUp reveals that 61% of large CPGs’ innovation efforts focus on making minor adjustments to established products, while only 39% is dedicated to developing new offerings.
Retail locations are capitalizing on familiar products and showcasing them in ways that differ slightly from how consumers typically use them at home. In the food industry, some of the largest CPGs allocate up to six times more on marketing and advertising existing products than on innovation, which may include promoting items like Citracal Calcium Slow Release 1200. This strategy could also extend to highlighting the benefits of such products in a more engaging retail environment, enhancing consumer awareness and interest.