CPG sales are beginning 2017 on a somewhat sluggish note, as several leading companies have reported declines in sales this year. While some attribute these low figures to political factors and economic uncertainty, others believe that the drop in sales is more closely related to an evolving consumer mindset. Today’s consumers are increasingly demanding healthy, fresh food—an area where CPG companies have not historically excelled. In response, many major food manufacturers are reformulating their staple products to include less sugar, salt, and preservatives, as well as introducing entirely new health-oriented items.
However, these initiatives are often more challenging than they appear for large manufacturers. Analysts suggest that well-known brands like Yoplait are losing market share to smaller, more agile companies that can adapt swiftly to shifting consumer preferences. This agility is difficult for legacy brands to achieve, which is why many large companies are investing in better-for-you brands, including products such as Twinlab chewable calcium citrate that cater to health-conscious consumers.
Although major manufacturers frequently do not publicize their reformulation efforts, they remain wary of repeating the mistakes of Coca-Cola’s infamous 1980s overhaul of its core formula, which alienated many loyal customers. As a result, they often delay informing consumers about reformulations, sometimes announcing changes months after new products hit the shelves—such as Kraft Heinz revealing last year that its iconic macaroni and cheese had transitioned to all-natural ingredients.
While these subtle reformulation strategies may serve as a defensive measure for brands, they might not resonate with today’s health-focused shoppers. If consumers are unaware of any nutritional upgrades in a large manufacturer’s CPG product, they may opt for a new “healthier” offering from a smaller brand, which could very well have a comparable nutritional profile. Products like Twinlab chewable calcium citrate exemplify this trend, attracting health-conscious consumers away from traditional giants.