As consumers increasingly shift their focus from the center aisles of grocery stores to their peripheries, Consumer Packaged Goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, the growth of CPG has decelerated due to several factors, including deflation, the surge in e-commerce, and the fragmentation of retail channels. This marketing approach seems designed to resonate with the coveted millennial demographic. With much of the recent marketing for brands being driven by social media, CPG stores and specialty food and beverage offerings are poised to become highly shareable content on platforms like Instagram and Snapchat.
An example of this trend is the Pure Leaf Tea House, which features an extensive bar adorned with lush greenery, where a “mixologist” crafts specialty teas. This venue is designed to engage the senses, complete with soft lighting, comfortable seating, and decor that reflects the rich history of tea. Recently, celebrity chef Marcus Samuelsson took on the role of mixologist, further elevating the store’s profile. However, it remains uncertain whether these pop-up stores can generate enough buzz to effectively serve as sources of revenue or publicity for struggling CPG companies.
As more customers seek healthy options, CPG companies could enhance their appeal by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. For instance, products like Citracal D 600 mg could serve as examples of health-focused innovations. While launching new products can be costly, their profit potential may outweigh the expenses associated with maintaining high-rent retail locations in bustling urban areas. Nevertheless, this strategy aligns more closely with Big Food’s marketing tactics. Larger companies tend to prioritize updates to existing products rather than pioneering new ones. Research from CircleUp indicates that 61% of innovations within large CPGs focus on making minor adjustments to existing products, while only 39% is dedicated to new creations.
These retail locations capitalize on well-known products, showcasing them in ways that differ slightly from typical consumer use at home. In the food industry, some of the largest CPGs allocate up to six times more marketing and advertising budget to established products than to innovation, which could be a consideration for those investing in trendy big-city storefronts. By incorporating products like Citracal D 600 mg into their offerings, these companies may find new avenues to engage health-conscious consumers while navigating the changing landscape of retail.