The Evolution of CPG Innovation: Why "Less is More" is the New Strategic Imperative
A data-driven analysis of how consumer packaged goods brands are redefining their approach to new product development
The CPG industry stands at a fascinating crossroads. While innovation remains the lifeblood of brand growth and market differentiation, the traditional approach to new product launches is rapidly becoming obsolete. Our latest analysis reveals a fundamental shift in how leading brands approach innovation—one that prioritizes strategic alignment over sheer volume. You can find the links (here, here, and here)
The Valuation Connection: Innovation as Value Driver
Perhaps most compelling is the direct correlation between strategic innovation and company valuations. Our analysis shows that brands acquired at premium multiples consistently demonstrate superior innovation capabilities. This isn’t coincidental—it reflects the market’s recognition that sustainable growth in the CPG space requires continuous, strategic product development.
To get more information, we interviewed Andrea Schwenk, the CMO of Egglife. Egglife is a brand that has been on the cutting edge of innovation with their high protein wraps.
When Andrea Schwenk stepped into the world of consumer packaged goods (CPG), she didn’t follow the traditional path. With a background in architecture, Andrea brought a unique blend of creativity and structure to her role as Chief Marketing Officer at Egglife—a fast-growing brand that’s redefining what innovation looks like in the refrigerated aisle. This category of “fresh” items that are traditionally found in the center of the store is one big innovation that we have seen taking shape in recent years.
“I originally studied architecture in college,” Andrea shared. “It was not for me. But there is something about building things for purpose—the melding of left and right brain—that ultimately led me to want to build companies instead of buildings.”
That mindset has served her well at Egglife, where the team isn’t just launching new products—they’re creating entirely new categories. Egglife’s flagship product, egg white wraps, didn’t exist before the brand brought them to market. With that came the challenge of educating both consumers and retailers about what the product is, how to use it, and where to find it.
One thing that is always talked about in the industry is innovation. What that means to different companies sometimes varies but I liked the Egglife definition:
Innovation is change that creates value.
And value can come in many forms, such as:
- Revenue
- Profitability
- Improved Brand Perception
- Improved Consumer Experience
- Operational Efficiency
- COGS Reduction
Creating a Category from Scratch
“Innovation in brand building is not for the faint of heart,” Andrea said. “But when you’re doing it in a non-existent category, it’s exceptionally challenging.”
Egglife’s egg white wraps perform the function of a tortilla but are made entirely from eggs. That uniqueness made placement in stores a puzzle. Some retailers shelved them near eggs, others near cheese, and some in health food sections. This inconsistency made consumer education a top priority.
“We had to be overt with our communication,” Andrea explained. “Consistency and clarity have been very important for us as we continue to drive brand awareness.”
Competing on Two Fronts
Similar to what we heard talking to two top brands in our fresh snacking webinar, Egglife’s innovation also means they face a dual competitive set: traditional shelf-stable tortillas and other refrigerated products vying for limited space.
“We benchmark against the tortilla category, but the egg buyer doesn’t care about that,” Andrea noted. “So we have to tell two stories—one about how we’re performing in the tortilla space, and another about why we matter to the egg buyer.”
From Wraps to Pasta: Expanding the Brand
After five years of building brand equity around a single product, Egglife is now expanding. This is a core tenet of SPINS excellence in innovation report in which SPINS calls out a successful innovation model of attribute adjacency. Understanding your brands ethos and then stretching categories when ready can lead to some of the highest success rates in innovation opportunities. Their new “Grab & Go” line offers ready-to-eat wraps, and they’ve recently launched “Egglife Power Pasta”—a high-protein, low-carb pasta made with eggs instead of flour.
“We already had consumers cutting up our wraps and making pasta,” Andrea said. “So we listened. And now we’re offering a product that’s two times the protein and 90% fewer carbs than traditional refrigerated pasta.”
Measuring Success
Success metrics vary depending on the innovation. For new wrap flavors, it’s about driving incrementality and increasing purchase frequency. For new categories like pasta, it’s about expanding the brand’s reach and offering consumers a healthier indulgence.
“There’s a lot of emotion associated with pasta,” Andrea said. “People love it, but often limit it. With Egglife Power Pasta, we’re giving them permission to enjoy it more often—without the guilt.”
Channel-Specific Innovation
Egglife also tailors its innovation strategy by channel. For example, club stores like Sam’s Club get variety packs, while convenience and travel channels are ideal for grab & go products. Though Egglife once had a direct-to-consumer business, they’ve since shifted focus to retail and click-and-collect platforms. This aligns with other “fresh snacking” brands we spoke to who described the challenges of DTC for items requiring refrigeration. This challenge is also a great opportunity to present to retailers as their stores being the priority as well as more ability to focus resources on in-store and pickup growth.
The Future of Protein
Andrea believes the protein trend is far from over. “It’s the one macronutrient that’s never been vilified,” she said. “Consumers are moving from just counting grams to caring about the quality and source of their protein. That’s where the conversation is headed.” This is backed up by data where high protein products are growing 4x as fast as low protein products. *
*High Protein Universe consists of inherently protein categories, along with custom items that are considered high protein within their respective categories.
