MARCH 2005 Times & Trends Executive Summary:
2004 New Product Pacesetters

We are pleased to bring you this special edition of Times & Trends, featuring key findings from IRI’s annual New Product Pacesetters report, which identifies the top new CPG food & beverage and non-food brands and the benefits they deliver to consumers.

With the highest number of new CPG product introductions (at the brand level) in the past eight years, 2003-2004 was marked by strong new product activity. Manufacturers placed a heavy focus on innovation this past year -- primarily in the form of brand extensions -- to capture growth in an otherwise slow growth environment: U.S. CPG sales across food, drug and mass channels excluding Wal-Mart (FDMx) were flat (+0.5%) in 2004.

Few “made it big.” Less than 1% achieved over $100 million in year-one sales across FDMx channels. However, consistent with prior years, just under one-quarter achieved New Product Pacesetter status by reaching FDMx sales of $7.5 million or greater in their first year.

This free summary is also accessible via the GMA Web site  at http://www.gmabrands.com/publications/gmairi.cfm


2003 – 2004 TOP TEN FOOD & BEVERAGE PACESETTERS

Top New Food & Beverage Brands Deliver Taste & Variety, Health & Wellness and Convenience Benefits.  Led by blockbusters Breyer’s CarbSmart ice cream and novelties, Pepsi Vanilla, Diet Coke with Lime and Sprite Remix– each earning over $100 million in year-one FDMx sales, this year’s top ten food and beverage Pacesetters offer new taste sensations (eg. Smirnoff Twisted V and Mountain Dew Livewire); new varieties (eg. Nabisco Ritz Chips); weight management alternatives (eg. Dannon Light n’ Fit Carb Control yogurt) and healthy, convenient snack and meal options (eg.Yoplait Nouriche smoothies and Healthy Choice Flavor Adventures frozen dinners.)
 

2003 – 2004 TOP TEN NON-FOOD PACESETTERS

New Self-Care Products Dominate Top Ten Non-Food Pacesetters List. This year, “do-it-yourself” beauty, personal care and healthcare treatments dominated the non-food top ten list, with eight of the ten delivering self-care benefits. Prilosec OTC led the pack, earning $239 million in year-one FDMx sales, while Crest Whitestrips Premium delivered $95 million. Schick Intuition and Schick Quattro razors and cartridges earned top ten status through enhanced performance benefits.
 

Strong New Entrants in Air Fresheners and Toilet Cleaning Among Most Successful New House Care Products.  While house care products did not make this year’s top ten non-food Pacesetters list, there were several strong new introductions. Innovation in delivery systems and scents within the air fresheners category resulted in solid year-one sales for Oust spray and Airwick Decosphere. Major advances in convenience and performance in toilet cleaning systems placed Lysol Ready Brush among this year’s Pacesetters with strong sales expected for other recent introductions, including Clorox Toilet Wand and Scrubbing Bubbles Fresh Brush.

TRENDS TO WATCH

The following current and emerging consumer trends will drive significant new product opportunity and will influence new product success over the next few years:

Food & Beverage:

  • Continued focus on weight management but within the context of a healthy, balanced diet; increased focus on general health benefits through vitamins/minerals, natural/organic ingredients and soy

  • Increased demand for products with specific disease management benefits (eg. diabetes, high cholesterol)

  • Renewed interest in hearty, satisfying meals; significant opportunity for reduced calorie/healthier versions

  • Continued enjoyment of more indulgent products, even while pursuing a generally healthy diet; strong growth potential for high-end treats, such as premium chocolates

  • Ongoing demand for new taste, variety and convenience benefits– particularly when paired with health and wellness benefits

Non-Foods:

  • Ongoing demand for improved performance, greater convenience, new varieties and self-care

  • Increased focus on luster and richness in hair care, cosmetics and skin care products

  • Increased opportunity for youth-oriented beauty and personal care products with performance and novelty benefits targeting maturing Echo Boomers (now aged 10-27)

   
 

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Source: IRI's Times & Trends Reports
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