IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This issue provides a summary of the highly anticipated IRI New Product Pacesetters ranking of the most successful new CPG brands.

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

Introduction

Now in its eleventh year, IRI’s annual New Product Pacesetters report showcases the most successful new CPG brands.

Beating the odds of a low success rate for new products, the Pacesetter brands are truly exceptional. Consumers have rewarded these brands and the retailers who carry them for delivering specific benefits that address their current and emerging needs.

This report identifies highlights what consumers are looking for today among the most successful new food and beverage and non-food brands. The analysis also identifies changes in benefit trends to help CPG marketers predict what consumers may be looking for over the next several years.

KEY FINDINGS

Despite record new product activity in 2004-2005, the CPG new product success rate remained low. While a record number of new CPG brands were introduced in 2004-2005, less than one-quarter reached $7.5 million in year-one sales to become a Pacesetter, only 10 percent earned $20 million or greater, and less than 1 percent exceeded $100 million. These success rates have been consistent throughout the past decade.
    

Taste and variety benefits were more prevalent among this year’s food and beverage Pacesetters. Nearly two-thirds of successful new food and beverage brands offered taste and variety benefits – a significant jump from the historical average. Despite concerns regarding an overwhelming array of options for consumers to choose from, variety continues to be a strong innovation platform that is rewarded by consumers. New taste sensations drove Budweiser Select, Cherry Vanilla Dr. Pepper and Gatorade Lemonade onto the top ten list.

Health and wellness benefits were a cornerstone of many successful new brands. A high proportion of food and beverage Pacesetters met consumers’ health and wellness needs; the most successful offered reduced calories (e.g., Frito Lay Light), portion control (e.g., Nabisco 100 Calorie Packs) and/or general weight management programs (e.g., Slim-Fast Optima.)

Convenience benefits are on the decline among food and beverage Pacesetters. The proportion of food and beverage Pacesetters offering convenience benefits (e.g., portability and/or quick preparation) declined in 2004-2005 versus the historical average. Strong consumer response to those products that offered added convenience in addition to taste and health benefits, however, suggests potential missed opportunities.

Co-branding of strong brand equities proves to be a huge success. Blockbuster sales for both Tide with a touch of Downy and Tide with Febreze illustrate the power of effective co-branding. Other ventures between leading brands are likely to follow suit.

Non-food Pacesetters continue to raise the bar on performance. Epitomized by razor manufacturers, who have had top 10 non-food Pacesetters for four consecutive years, performance enhancements continue to be a major driver of new product success among non-foods. This trend is evident across several major categories, including trash bags (Glad ForceFlex offers bags that stretch and do not rip), cosmetics (Maybelline Intense XXL Mascara delivers “10X the volume”) and skin care (Neutrogena Advanced Solutions provide professional quality anti-acne and anti-aging treatments.)

New scents and varieties propelled many non-food brands onto the Pacesetters list. Two-thirds of non-food Pacesetters offered new varieties. Children were a significant focus market for new varieties this year via products such as Colgate’s new line of toothpaste with licensed characters and Children’s Tylenol Meltaways. In scents, aromatherapy was a major benefit offered in shampoo, such as Alberto VO5’s Nourishing Oasis line, and soap, including St. Ives Calming Aroma Steam bodywash.