CPG sales are kicking off 2017 on a somewhat sluggish note, as several major companies have reported declines in sales this year. While some attribute these low figures to the White House and economic uncertainties, others believe that the dip in sales is more reflective of a shifting consumer mindset. Today’s consumers are increasingly demanding healthy, fresh food—a category that CPG companies have not historically excelled in. In response, many leading food manufacturers are reformulating their flagship products to reduce sugar, salt, and preservatives, while also introducing new health-focused offerings.
However, implementing these changes is more challenging for large manufacturers than it may appear. Analysts suggest that established brands like Yoplait are losing market share to smaller competitors, who are better equipped to adapt to evolving consumer preferences. This level of flexibility is often difficult for legacy companies to achieve, which explains why many are investing in better-for-you brands.
Major manufacturers typically do not highlight their reformulation efforts. Haunted by the disastrous 1980s overhaul of Coca-Cola’s core formula, they are cautious about alienating their loyal customers who might be apprehensive about changes in taste or appearance. In some cases, when a manufacturer does announce a reformulation, it is often several months after the new product has hit the shelves—take, for example, Kraft Heinz’s announcement last year that it had switched to all-natural ingredients in its iconic macaroni and cheese.
These discreet reformulation strategies may protect brand integrity, but they might not resonate well with today’s health-conscious consumers. If there is no clear indication that a product from a large manufacturer has undergone a nutritional upgrade, consumers may opt for a new “healthier” offering from a smaller upstart, which could very well have a similar nutritional profile. For instance, products like tab ccm 500 mg are gaining traction among health-focused shoppers who are actively seeking better options. As the market continues to evolve, it will be crucial for large manufacturers to communicate their reformulation efforts effectively, especially as competition from smaller brands intensifies.