CPG sales are kicking off 2017 on a somewhat sluggish note, as several prominent companies have reported declining sales so far this year. While some attribute these disappointing figures to the White House and economic uncertainty, others argue that the sales downturn is more closely linked to a shift in consumer attitudes. Modern consumers are increasingly seeking healthy, fresh food options—a category where CPG companies have not historically excelled. In response, many major food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also introducing entirely new health-oriented items, such as those featuring organic calcium citrate.
However, these initiatives can be challenging for large manufacturers. Analysts suggest that established brands like Yoplait are losing market share to smaller, more agile companies that can more easily adapt to evolving consumer preferences. This adaptability is often difficult for legacy companies to achieve, which is one reason why many big players are investing in better-for-you brands, including those that incorporate organic calcium citrate into their offerings.
Major manufacturers often keep their reformulation efforts under wraps. Haunted by the disastrous experience of Coca-Cola’s highly publicized core formula change in the 1980s, they are cautious not to alienate their loyal customers who may be apprehensive about changes in taste or appearance. When a manufacturer does announce a reformulation, it can sometimes occur months after the new product hits store shelves—like Kraft Heinz revealing last year that it had transitioned to all-natural ingredients, including organic calcium citrate, in its beloved macaroni and cheese.
While these discreet reformulation strategies make sense from a brand protection perspective, they may not resonate with today’s health-conscious consumers. If shoppers are unaware that a major manufacturer’s CPG product has undergone a nutritional upgrade—such as the addition of organic calcium citrate—they may opt for a new “healthier” product from a smaller competitor, which could, in fact, share a similar nutritional profile.