Highlights from the most successful food & beverage Pacesetters of 2002-2003.  This year’s food and beverage Pacesetters are driven by flavors, big-name brands, another strong restaurant-to-retail cross-over and increased dieting and low-carb awareness – a mixture of indulgence and healthier consumption.  Form is also a significant factor.  New forms of portability extend known brands to new formats. 

“Vanilla” the big winner in 2003 & 2004.  Vanilla Coke – nearly $300 million in sales – and Pepsi Vanilla – projecting to at least $150 million into 2004 – are current #1 and projected #1 food & beverage Pacesetters. 

Beverages are leading the parade of New Product Pacesetters. Four of the top ten Pacesetters are beverages.  34 of the total 181 Pacesetters reaching at least $7.5 million over 2002-03 are beverages, totaling $1.5 billion, 30% of total NPP sales.  In comparison, beverages account for 29% of  total CPG food & beverage consumption for 2002-03. 

Restaurant-to-retail continues to work.  Krispy Kreme in 12 months became the number one doughnut category brand reflecting the power of transferring a strong restaurant name and imagery to the conventional retail channel.  Starbucks did it.  Boston Market did it.  This year it’s Krispy Kreme with just over 40% acv distribution in the supermarket channel.

Big brands developing in bakery.  For years, the shelf and in-store bakery businesses have been dominated by regional and local brands.  Sara Lee and Krispy Kreme are taking a run at creating powerful national brands, leading to related efficiencies.  Sara Lee (nearly 60% national distribution) just introduced a low-carb entry, “Delightful” – which will be a brand-to-watch next year.  Krispy Kreme is far from national, in less than 50% of acv distribution.  Low-carb Krispy Kreme?  Talk about an oxymoron! 

Weight Loss is strong in various formats. Growth of indulgent foods following the September 11 tragedy appears to be giving way to renewed weight consciousness and interest in lowering carbohydrate consumption, stimulated by the Atkins diet and media hoopla.  Light beers share the spotlight with low-carb beers.  Light yogurts and frozen novelties compete with new carb-smart entries.

Healthy beverages & nutrition-packed bars transfer better-for-you expectations to portable formats.  Beyond the low-carb phenomena, the trend toward increased portability is blending with healthier eating as well-known brands cross-over to more portable formats.  Campbell’s Soup At Hand becomes a portable soup-beverage; Yoplait’s Nouriche converts yogurt into a nutrition-rich, drinkable smoothie; Special K becomes a cereal bar (following in the footsteps of General Mill’s Milk N Cereal, both reaching $40 million+ in year one); and Nutri-Grain launched its Yogurt bar ($32 million).

Dinner-prep innovations are noticeably “silent” this year.  For several years, new dinner solution conveniences have led Pacesetter activity.  Not this year.  Previous years’ no-prep top ten Pacesetters included Birdseye Chicken Voila, Stouffer’s Skillet Sensations, Uncle Ben’s Rice Bowls, Healthy Choice Bowl Creations and Banquet’s Homestyle Bakes – all-inclusive, no-prep new products.  This year, Betty Crocker’s Complete (ranking #13 at $45.7 million) came closest.