A record number of new products earn “blockbuster” status.
For the first time in the past five years, ten new food and beverage brands reached $100 million or more in first-year sales (the previous high was three). Overall, however, there were fewer new products introduced this year than in the prior five (417 vs. an average of 503.) It appears that manufacturers have been more selective and conservative in pursuing new product activity, and their diligence has paid off.

Manufacturers continue to reap value from existing equities via line extensions.
Nine of the top ten Pacesetters are line extensions. The proportion of new products that are totally “new” (ie. invented for CPG channel distribution, or cross-overs from other channels) decreased from 20% in the 1990s to just 10% over the last few reports. Manufacturers focused in recent years on leveraging investments in existing brands and on keeping these brands fresh and appealing to consumers, rather than taking on the much riskier task of launching a completely new brand.

Beverages dominate this year’s New Product Pacesetters list.
This was a strong year for new product development in beverages, which comprise seven of the top ten New Product Pacesetters for 2001/2002. Carbonated beverages, including PepsiCo’s Mountain Dew Code Red, Pepsi Twist and Sierra Mist and Coca-Cola’s Diet Coke with Lemon, hold four of the top ten spots and generated $661 million. Smirnoff Ice, whose introduction spurred the development of a new “malternative” category within beer, wine and spirits, also made the top ten list. Other top ten Pacesetter brands include Kool-Aid Jammers and Propel Fitness Water from PepsiCo’s Gatorade division.

New meal solutions respond to consumers’ growing demand for quick, easy, at-home meals.
Two dinner solutions, Banquet’s Homestyle Bakes and Marie Callender’s Complete Dinners, were among the leading new introductions with first-year sales well in excess of $100 million. A breakfast solution, Kellogg’s Special K Berries, rounds out the top ten list. Consumers continue to eat at home more often, and have embraced quick, easy solutions to meal preparation. Look for continued advancements in this area as manufacturers innovate to meet a growing demand.

Consumers’ return to weight consciousness fuels the growth of several Pacesetters.
Consumers’ concern about weight ebbs and flows. The growth of “small indulgences” following the September 11 tragedy gradually gave way to a renewed weight consciousness that is expected to continue to intensify. Several products in this year’s list, including Silhouette’s frozen novelties and SlimFast’s “Meals to Go” nutrition or breakfast bars, speak to that concern and were rewarded with strong sales.