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Strong Relationships With CPGs Lead to Bigger Baskets

Enlist retail dietitians and other health-and-wellness staffers in mutually beneficial arrangements to build sales, engagement, loyalty and trust
Grocery Cart
Creating and maintaining relationships with CPGs that your customers enjoy will lead to bigger baskets and more trips to the grocery store.

There are some astounding statistics that put the impact of the consumer packaged goods (CPG) industry into perspective. According to the Consumer Brands Association, jobs associated with the CPG industry account for one in every 10 American jobs and the CPG industry’s total contributions represent 10% of the national gross domestic product (GDP). Professional services company Deloitte also reports that 67 of the top 100 global CPG companies belong to the food and beverage industry. 

With so many products gracing virtual and physical store shelves, there’s bound to be some intersection of combined motives between retailers and CPGs. Creating and maintaining relationships with CPGs that your customers enjoy will lead to bigger baskets and more trips to the grocery store.

[RELATED: Progressive Grocer’s 91st Annual Report - How Grocers Are Connecting the Dots]

In-Store

Finding ways to partner up with CPGs at the physical store level can bring ideas to life that reach a broad span of shopper demographics. Position your retailer as not only a food and beverage hub, but also as a place where health and wellness take center stage. Consider expanding CPG opportunities from vendor-sponsored cooking demonstrations and product features to wellness festivals and pharmacy marketing efforts. Identify ways to co-brand products and services that result in more spend at your grocery stores, benefiting both your business and the CPG brand.

Digital 

The omnipresent digital space can open many opportunities to capitalize on CPG partnerships that make the online experience intuitive, easy and streamlined. Automatic coupon downloads when adding products under a CPG promotion to a digital shopping cart can mean big wins for traffic to a retailer site or app, as well as for CPG companies. The never-ending digital shelf edge makes it simple to advertise CPG offerings, including produce and better-for-you products, and encourage brand recognition. CPG brands may even be able to pinpoint their target markets with intentional advertising using data analytics within certain retailers.

Social Media

The reach of social media can’t be ignored, even if potential and existing customers find their way onto a retailer’s Facebook, Instagram, TikTok or X account just to browse current sales or promotions. Take advantage of this by pitching fun, engaging social media spots to CPGs that may already be that quarter’s grocery category focus at your retailer. Swap out celebrity endorsements for qualified health professionals, such as your retailer’s pharmacists, dietitians or clinic nursing staff, in social media reels in partnership with CPGs. This can build credibility and brand awareness when the focus is on nutritious foods such as lean proteins, whole grains, fruits and vegetables.

Customer Trust

Gaining and keeping trust with customers are paramount. To do so, the voice of the retailer should be reliable and genuine, with messages being consistent. As steps are taken to connect with various CPGs, be sure that brands match the strategic aim of your company and align with the overall mission of your business. This may mean that your retailer’s priorities — such as sustainability, health, or diversity and inclusion — need to be examined before signing a contract. Be certain to enlist the help of your retail dietitians for clarity on the nutrition value of CPG products evaluated for partnerships, as dietitians uphold a code of ethics that includes standards such as “collaborating with others to reduce health disparities.”

CPG partnerships, particularly those that involve dietitians, are mutually beneficial to retailers and brands as creative strategies are used to build sales, engagement, loyalty and trust. 

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