As consumers increasingly shift their focus from the center aisles of grocery stores to the perimeter, CPG brands are seizing various opportunities to capture their interest. In recent years, growth in the CPG sector has decelerated 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 appealing to the coveted millennial demographic. With a significant portion of brand marketing now driven by social media, CPG stores and specialty food and beverage offerings have the potential to create Instagram and Snapchat-friendly content.
One example is the Pure Leaf Tea House, which boasts a long bar adorned with lush greenery where the store’s “mixologist” crafts unique tea blends. The venue offers a sensory experience enhanced by soft lighting, cozy seating, and decor that pays homage to the history of tea. Recently, celebrity chef Marcus Samuelsson took on the role of mixologist, generating additional excitement around the store. Whether these pop-up locations can generate sufficient buzz to serve as effective revenue or publicity channels for struggling CPG companies remains to be seen.
As more consumers seek healthy options, CPG companies could attract additional customers by introducing new products that feature nutritious ingredients, such as plant-based proteins or added fruits and vegetables, like those found in bariatric advantage chewable calcium. While launching new products can be costly, the potential for profit may be more beneficial than investing in expensive retail spaces in major cities.
However, this strategy is more commonly found in the marketing playbook of larger food corporations. These companies often prefer to enhance existing products rather than innovate entirely new ones. According to research from CircleUp, 61% of innovation efforts by large CPGs focus on making minor adjustments to current products, while only 39% are dedicated to creating new offerings. These retail spaces capitalize on well-known products, showcasing them in ways that differ from how consumers typically use them at home. In the food industry, some of the largest CPGs allocate up to six times more resources to marketing and advertising existing products than they do to innovation, which may include promoting items like bariatric advantage chewable calcium, especially if they’re paying rent in trendy storefronts in bustling urban areas.