NEW YORK – When making purchasing decisions, today’s consumers are better informed and increasingly driven by health and nutritional issues. In response, leading CPGs are taking bold steps to ensure that their products remain competitive in this consumer marketplace.
According to Marketing Daily, “the aggregate impact of increased nutritional awareness has rebalanced the competitive landscape for nearly every food and beverage category. Numerous large, traditional brands have suffered while smaller brands with a meaningful (or perceived) health advantage have gained significant market share.” Further, the growing list of small, fast-growing organic brands that have been acquired by CPG companies is testimony to their impact today and into the future.
But big brands are not giving up, as many are reformulating recipes, changing portion size, introducing new products and updating their brand strategy to maintain their appeal to today’s more conscious consumers.
The article cites Starbucks’ new Mini Frappuccino offer as an example of a product that allows consumers to indulge in a treat they want, but in a portion size that doesn’t heap on the guilt. This approach has also been taken by soda and beer brands, with a nod towards fewer calories per serving. “Often these products are sold at a relative price premium (per ounce) to their larger-sized siblings, providing the brand with a healthier image and balance sheet alike,” writes Marketing Daily.
Delving further into the beverage category, Coke and Pepsi have both gone beyond packaging innovation to launch new products containing cane sugar and stevia, and eliminating high fructose corn syrup and artificial sweeteners, providing a seemingly healthier alternative to their parent brands’ core offerings.
Other companies, like Kraft Heinz, have recently pledged to remove artificial colors, flavors and preservatives from its iconic Macaroni and Cheese brand. While it can be risky to significantly change a core product, Kraft seems to understand the potential for even greater risk in sticking with its current recipe.
These examples, writes Marketing Daily, are all being driven by consumer sentiment, not government regulation. Anyone managing food or beverage brands today will be well served to consider the implications of heightened nutritional awareness before the rush.