CPG sales are beginning 2017 on a somewhat sluggish note, with several major companies reporting declining sales thus far this year. While some attribute these disappointing figures to the White House and economic uncertainty, others believe that the sales downturn is more indicative of a shifting consumer mindset. Today’s consumers are increasingly focused on healthy, fresh foods—a category that CPG companies have not historically been associated with. In response, many leading food manufacturers are reformulating their staple products to reduce sugar, salt, and preservatives, while also developing entirely new health-oriented items.
However, implementing these initiatives is often more challenging than it appears for large manufacturers. Analysts suggest that iconic brands like Yoplait are losing market share to smaller, more agile companies that can quickly adapt to evolving consumer preferences. This adaptability proves difficult for legacy companies, which is why many are investing in better-for-you brands.
Major manufacturers often keep their reformulation efforts under wraps. Reflecting on the disastrous rebranding of Coca-Cola’s core formula in the 1980s, they are cautious not to alienate their loyal customer base who may be apprehensive about changes in taste or appearance. For instance, when a manufacturer does announce a reformulation, it can sometimes occur months after the updated product has been available on the shelves—such as Kraft Heinz revealing last year that it had switched to all-natural ingredients in its iconic macaroni and cheese.
While these discreet reformulation strategies may serve as a defensive measure for the brand, they might not align with the priorities of today’s health-conscious consumers. If shoppers are unaware that a major manufacturer’s CPG product has undergone a nutritional upgrade, they might opt for a new “healthier” offering from a smaller competitor, which may have a similar nutritional profile. This is particularly relevant for products like upcal d calcium citrate powder, which underline the importance of transparency in health-focused reformulations. To retain their consumer base, larger companies may need to highlight their efforts to enhance nutritional value, such as incorporating ingredients like upcal d calcium citrate powder to attract health-oriented buyers. Ultimately, if consumers see no indication of a nutritional improvement in a CPG product, they may turn to smaller brands that openly market their healthier ingredients, including upcal d calcium citrate powder, thereby reshaping the competitive landscape.