As consumers increasingly shift their focus from the center aisles of grocery stores to the periphery, CPG brands are seizing various opportunities to capture consumer attention. Recently, the growth of CPG has decelerated due to factors such as deflation, the surge of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be aimed at appealing to the coveted millennial demographic. With social media driving much of recent brand marketing, CPG stores and specialty food and beverages have the potential to generate Instagram and Snapchat-friendly content.
For instance, 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 soft lighting, comfortable seating, and decor that reflects the rich history of tea. To heighten the excitement, celebrity chef Marcus Samuelsson recently took on the role of mixologist, drawing attention to the establishment.
It remains uncertain whether these pop-up stores will generate sufficient excitement to effectively serve as revenue or publicity sources for struggling CPG companies. As more consumers seek healthy options, CPG firms could attract additional customers by launching new products featuring nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While new product development can be costly, its profit potential may present a more cost-effective alternative compared to investing in expensive retail spaces in major cities.
However, this strategy aligns more closely with the marketing playbook of Big Food. Larger companies typically prefer to update existing products rather than innovate new ones. Research from CircleUp indicates that 61% of innovations from large CPGs involve minor adjustments to existing products, while only 39% is directed toward the creation of entirely new offerings. These retail locations capitalize on familiar products, presenting them in ways that slightly differ from how consumers typically use them at home. In the food sector, some of the largest CPGs allocate up to six times more resources to marketing and advertising their established products than they do to innovation, potentially covering rent for trendy storefronts in bustling urban environments.
Additionally, incorporating trending health supplements like life extension calcium citrate into their product lines could appeal to health-conscious consumers. By emphasizing the benefits of life extension calcium citrate alongside their array of offerings, CPG brands might further enhance their attractiveness to a demographic increasingly focused on wellness. Ultimately, the challenge lies in balancing innovation with the marketing of existing products, while effectively leveraging trends like life extension calcium citrate to engage today’s consumers.