Times & Trends

2008 NEW PRODUCT PACESETTERS: THE ROLE
OF INNOVATION IN A DOWN ECONOMY

EXECUTIVE OVERVIEW

March 2009

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 edition of Times & Trends details the most successful new CPG brands and the consumer benefits that have made them a success. A free summary is also accessible via the GMA website at www.gmaonline.org.

INTRODUCTION

The year 2008 will go down in history as the year the United States entered the most significant recession since World War II.

Even in good times, launching a successful new consumer packaged goods product is a daunting task. In a recessionary economy, new product successes are even harder to achieve.

IRI’s 14th Annual New Product Pacesetters report showcases the most successful new CPG brands for 2008.

These brands are truly remarkable for, to achieve Pacesetter status, new launches must exceed $7.5 million in year-one sales. Less than one-quarter of products actually achieve this benchmark. The products in this report overcame significant challenges in order to attain $7.5 million (or more) in year- one sales.

IRI New Product Pacesetters are best practice case studies in how to beat the new product odds.

KEY FINDINGS

»Despite the fact that the vast majority of Pacesetters are brand extensions, net-new brands have a proven ability to shine, as evidenced by several of this year’s Pacesetters, including alli and Zyrtec.

Several economically-driven ritual changes, including stepped-up at-home dining and self-care, played a major role in defining 2008 New Product Pacesetters.

»From new flavor combinations to olfactory cleaning solutions and beyond, innovation around improving the customer experience through sensory stimulation is quite strong.

Both food and beverage and non-food Pacesetters continue to offer new varieties, including products targeting specific demographic segments, health conditions and day parts.

»Sustainability has established a strong and growing presence in the world of CPG; consumer appetite for earth-friendly products and production processes is growing quickly.