Legacy Brands at Risk, Relevance Within Reach

Think back to a nostalgic favorite — maybe a beloved cereal or snack that just doesn’t taste the same anymore, or worse, has disappeared entirely. Take Fruit Stripe gum, for instance. After 54 years on store shelves, the iconic zebra-striped gum was discontinued due to shifting consumer habits and purchasing patterns.

Then there’s the case of Kirkland Signature Chocolate Chips, phased out by Costco as cocoa prices surged. Or the once-iconic Choco Taco — discontinued by Klondike in favor of better-selling products.

These examples reflect a broader trend: once-trusted products, beloved for generations, are now under pressure. Some are being edged out by changing consumer tastes, others are declining in quality due to cost pressures and ingredient swaps, and many are under scrutiny for containing ingredients targeted by new health regulations.

For today’s brands to remain relevant, they must stay closely attuned to evolving consumer expectations, defend product quality despite rising costs, and navigate a fast-changing regulatory environment.

The Triple Threat Facing Iconic Brands

Legacy brands are now contending with a “perfect storm” of pressures: inflation and rising costs, evolving consumer behaviors, and increased scrutiny from health regulators under the growing “Make America Healthy Again” (MAHA) movement.

Let’s break it down:

1. Shifting Consumer Behavior

Consumer preferences have been shifting for years, but the divide is now more pronounced. Some shoppers are gravitating toward premium, health-forward options — often at a higher price point. Others are prioritizing value above all else. This polarization leaves little room for traditional “middle-of-the-road” brands to thrive.

Take boxed mac and cheese as an example. It’s losing ground in both directions. Premium options like Goodles have doubled in sales, while lower-cost private labels are growing too, up 6%. Caught in the middle, legacy brands are scrambling to reposition. Some try to “premiumize” with artisanal twists, while others lean into cost-cutting. But without a deep understanding of what today’s consumers actually value, many efforts fall flat.

However, brands that take the time to uncover these insights can revive once-loved products — modernizing them without losing their essence.

2. Rising Costs and Inflation

Ingredient and production costs are climbing, forcing many brands to quietly swap out premium ingredients for cheaper alternatives. Over time, these compromises degrade the product and erode consumer trust.

It’s the “salami-slicing” effect — tiny cuts that eventually leave you with no salami. Small changes might seem harmless, but they add up. Loyal customers notice. And when a product no longer delivers on its original promise, they move on.

Protecting product integrity during cost pressures is critical. The product is the brand promise — if that promise is broken, so is the brand.

3. Ingredient Scrutiny and Regulatory Pressures

Regulators are watching more closely than ever. Under the MAHA initiative, spearheaded by Health and Human Services Secretary Robert F. Kennedy Jr., agencies like the FDA are ramping up oversight on food ingredients, with a push toward healthier, safer food systems.

Artificial dyes, for example, are now under fire. The FDA has urged the industry to replace them by the end of 2026. In response, states are stepping up. California and West Virginia have already banned certain synthetic dyes, and 23 more states are considering similar laws.

Consumers are paying attention, too. As awareness of food ingredients grows, so does demand for transparency. Brands are responding by setting aside R&D funds, updating formulas, and bringing leadership into the conversation about reformulation.

Change Is Hard — But Inaction Is Riskier

Adapting to these changes is no small task. Reformulating a product often comes with high costs — not just financial, but strategic. It can compromise the taste, texture, or function consumers loved in the first place. Done poorly, it can damage trust, weaken brand equity, and disrupt operations across the board.

But the bigger risk is doing nothing.

Some companies are taking a “wait and see” approach, delaying reformulations until regulatory guidance is clearer. But in today’s environment — where consumers are more informed, vocal, and values-driven — hesitation can be costly. Brands that lag behind risk being outpaced by more agile, forward-looking competitors.

Consumers are demanding more: cleaner labels, better ingredients, greater transparency. They're scanning ingredient lists, questioning what’s in their food, and holding brands accountable.

A Path Forward: Modernization with Integrity

For CPG, restaurant, and foodservice brands, the opportunity lies in recommitting to their products — not by reinventing them entirely, but by thoughtfully modernizing them with today’s values in mind.

That means investing in better ingredients, reformulating with care, and involving consumers in the innovation process. It means prioritizing transparency and rebuilding trust, one thoughtful decision at a time.

The products we grew up with don’t have to disappear. But to survive — and thrive — they must evolve. Brands that act now with courage and clarity will be the ones that win loyalty in this new era.