As consumers increasingly shift their shopping habits from the center aisles of grocery stores to their perimeters, CPG brands are seizing various opportunities to capture consumer interest. Recently, CPG growth has faced challenges due to factors such as deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to target the desirable millennial demographic. With brands increasingly leveraging social media for marketing, CPG stores and specialty food and beverage options have the potential to become eye-catching posts for platforms like Instagram and Snapchat.
The Pure Leaf Tea House features an expansive bar adorned with lush greenery, where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience through its soft lighting, cozy seating, and decor that resonates with the rich history of tea. Adding to the excitement, celebrity chef Marcus Samuelsson recently took on the role of mixologist at the venue. However, it remains uncertain whether these pop-up stores will generate sufficient buzz to serve as effective revenue or publicity sources for struggling CPG companies.
As consumers increasingly seek healthy options, CPG firms could attract more customers by introducing new products rich in nutritious ingredients, such as calcium citrate for joints, plant-based proteins, or added fruits and vegetables. While launching new products can be costly, the potential profit from these innovations might be more cost-effective than investing in expensive retail spaces in major cities. Nevertheless, this strategy aligns more closely with the marketing tactics of larger food companies. Big Food tends to prioritize updating existing products rather than creating entirely new offerings. According to research from CircleUp, 61% of the innovation efforts from large CPGs focus on minor modifications to existing products, while only 39% is dedicated to new creations.
These retail locations capitalize on familiar products, presenting them in ways that differ slightly 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 established products than to innovation, which may be reflected in their expenses for trendy storefronts in bustling urban areas. By incorporating health-focused ingredients like calcium citrate for joints into their offerings, CPG brands may enhance their appeal in a competitive market increasingly driven by consumer demand for healthier choices.