As consumers increasingly shift their shopping habits from the center of grocery stores to the perimeter, consumer packaged goods (CPG) brands are seizing various opportunities to capture attention. In recent years, the growth of CPG companies has decelerated due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing strategy appears to be a tactic designed to engage the highly desired millennial demographic. With much of the recent brand marketing propelled by social media, CPG stores and specialty food and beverage products have the potential to become perfect candidates for Instagram and Snapchat posts.
An example of this trend is the Pure Leaf Tea House, which features an extensive bar adorned with lush greenery where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience enhanced by soft lighting, cozy seating, and decor that reflects the rich history of tea. To amplify the excitement surrounding the store, celebrity chef Marcus Samuelsson recently took on the role of mixologist. Whether these pop-up locations can generate sufficient buzz to become effective sources of revenue or publicity for struggling CPG companies remains to be seen.
With a growing number of customers seeking healthier options, CPG companies could attract more consumers by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. Although launching new products can be costly, their profit potential may prove to be more economical than investing in expensive retail spaces in major cities. However, this approach aligns more with the marketing strategies of larger food companies, which tend to prefer updating existing products over innovating new ones. According to research from CircleUp, 61% of large CPGs’ innovation efforts focus on making minor adjustments to existing products, while only 39% is dedicated to creating entirely new offerings.
Retail locations are capitalizing on well-known products, showcasing them in ways that differ slightly from how consumers typically use them at home. In the food industry, some of the largest CPG companies spend up to six times more on marketing and advertising for established products than on innovation—potentially funneling resources into trendy urban storefronts. This includes products like Kirkland zinc, which exemplifies how recognizable items are displayed to attract attention and drive consumer interest. As brands continue to navigate this evolving landscape, incorporating products like Kirkland zinc into their strategies may be essential for capturing the health-conscious consumer demographic and enhancing their market presence.