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New Product PacesettersCarving Out Growth in a Down Economy
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Executive Summary
Introduction
Overview
Growth Opportunities
Food & Beverage
Non-Foods
Convenience Stores
Conclusions
Resources
MARCH 2011
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
The effects of the recent downturn are still heavily impacting CPG and retail companies. Although sales have improved during the past year, the Great Recession has significantly changed consumer spending habits today and possibly forever.
The shopper of today consumes products in a much different way versus just a couple of years ago. This tectonic shift in shopper behavior has created the need for manufacturers and retailers to completely rethink how they develop, package, price, merchandise and display products. SymphonyIRI’s 2010 New Product Pacesetters report provides insights into minds and practices of leaders within the CPG industry that are successfully doing just that.
Consumer trends within the food and beverage sector indicate that customers are shifting towards products that encompass convenient indulgence and wellness. Many consumers are trying to eat healthier, and have traded out soda for sports drinks or waters and replaced junk food with healthier options. In 2010, the most powerful food and beverage product launches were those affiliated with health and wellness.
While the consumer of today may have tightened their belts on indulgences, the need for indulgence has certainly not gone away. People are still willing to spend money on treats here and there, evidenced by an array of successful indulgent Pacesetter brands. These products deliver a cost-efficient, home-based solution to the ice cream parlor.
In the non-foods sector, the shift towards tending to health and beauty needs in the home continued in 2010, and the most powerful non-foods Pacesetters were those that armed consumers with the tools to get it done. Today’s consumer has cut back on going to the spa and getting their teeth professionally whitened. Instead, they are taking the do-it-yourself approach, trading in Botox and laser treatments for anti-aging serums and products that are marketed as “professional results at home.”
Despite unstable economic conditions, average year-one sales for New Product Pacesetters in 2010 climbed. Last year also witnessed great success by manufacturers small and large who took a risk by bringing a new brand to market. These trends suggest a brighter outlook for 2011 and beyond.
However, CPG and retail leaders face the significant challenge of identifying shoppers who are opening their wallets again, those who are their maintaining frugal ways, and those doing some of both. It will be critical to continuously study evolving consumer needs, and how people are learning about, buying and using products. The most powerful marketing strategies will be adjusted based on even minute shifts in attitudes and behaviors.
For those who may have missed Summit 2011, check out our blog, “Insights from Aisle 5,” Twitter @SymphIRI, Facebook and Live@Summit Webcasts to catch what you missed!
Enjoy the lessons learned from 2010’s most successful product launches, and share your thoughts and observations regarding new product strategies for 2011. These new products are the future of the CPG and retail industries.
Indulgence and Wellness: A 21st Century Way of Spending?
New Product Pacesetters: Carving Out Growth in a Down Economy
Larry LevinExecutive Vice President/General Manager, Consumer InsightsSymphonyIRI Group
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
New product innovation across food and beverages has slowed in recent years amidst difficult economic conditions and conservative consumer behavior; non-foods innovation continues to escalate, supported by rapidly evolving technologies
Manufacturers can capitalize on opportunities by investing in innovation across the value spectrum, meeting consumers’ need for value, while simultaneously encouraging purchase activity at the premium tier with exciting new products that answer consumers’ most pressing day-to-day needs
Leverage frequent and granular shopper insight and market analyses to keep abreast of existing and evolving new product development opportunities at the mass market and niche market levels
Continue to leverage brand extension as a tool to maintain brand vitality and consumer engagement, while stepping up efforts around brining truly new innovations to market , where viable
Product innovation in non-foods is heating up across a number of categories, largely driven by technologies that provide stronger, faster, easier and better results across everyday needs and tasks
Food and beverage innovation is keying in on home-based food rituals, and expanding the breadth and depth of better-for-you assortment
Manufacturers across CPG must constantly evaluate evolving technologies and ingredients across departments and outside the industry identify promising prospects and assess feasibility and risk vs. reward balance of building these prospects into new product development initiatives
Top-selling new products within the convenience channel underscore consumers’ efforts to balance their need for immediate indulgence and energy against efforts around healthier eating
Support innovation efforts within the convenience store channel with solutions-based merchandising programs prominently featuring newer, more innovative options across indulgent and better-for-you categories/brands
Brand extensions continue to represent the lion’s share of new product launches despite a long-standing history of net new brands bringing substantially larger year-one sales returns
INSIGHT ACTION
Executive Summary: Turning Insights Into Action
New Product Pacesetters: Carving Out Growth in a Down Economy
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Introduction
New product innovation is the lifeblood of
the CPG industry. New products breathe
new life into core brands, and they bring
fresh news into the CPG environment.
But, bringing to market new products is not
an easy task, even in the best of times.
Prolonged economic instability has served
to make this task even more difficult and
daunting during the past several years.
Amazingly, some products have been able
to beat the odds and make a splash in the
CPG world despite today’s less-than-ideal
market conditions.
These products are SymphonyIRI’s 2010
New Product Pacesetters. They are truly
remarkable. Only about one-quarter of
products achieve the minimum $7.5 million
required to achieve Pacesetter status.
In 2010, the most successful product
launches drove to satisfy consumers’
health and wellness objectives, brought
excitement to home-based eating and
drinking, and raised the bar on
expectations around in-home health,
beauty and personal care.
Opportunities available to innovative CPG
manufacturers abound despite unstable
economic conditions and conservative
consumer behaviors. To capitalize on that
success, manufacturers must act with
speed, precision and determination. They
must be willing to take risks – calculated
risks – based on an intimate knowledge of
evolving market and consumer trends and
developing technologies.
This report reveals the most successful
CPG product launches of 2010, and
provides insights into the secrets of their
success. These products provide best-in-
class examples of how to beat new product
odds.
These brands reflect a keen understanding
of the consumer at a time when the only
constant is change. They bring new
technology and new ingredients to life in
many and varied ways to simplify and
excite, to strengthen and indulge.
And, perhaps equally as important, these
brands demonstrate that, even in difficult
times, taking risks can reap substantial
rewards. Across food and beverages, for
instance, net-new innovation, new products
coming to market without the support of
established brand equity, returned an
average 57% higher year-one sales versus
imitative launches.
And, across food and beverages and non-
foods, brands such as Chobani Greek
yogurt and Jillian Michaels vitamins
underscore the fact that successful new
launches don’t have to come from huge
CPG manufacturers.
SymphonyIRI New Product Pacesetters Criteria
At least $7.5 million in year-one sales across food, drug and mass channels (excluding Walmart)
Begin tracking sales after 30% ACV weighted distribution achieved
Must complete a full year of sales (brands that do not are considered Rising Stars for the following year)
New Product Pacesetters: Carving Out Growth in a Down Economy
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Simultaneously, non-foods innovation has
become more targeted. Beauty and
personal care products targeted to specific
hair and skin types, product lines for men,
and sensory-stimulating home and pet care
are examples of targeted non-foods
innovation. Many such products are
finding success.
The net result of targeted innovation is
often lower sales potential. Still, the
opportunity is huge and evolving
technologies and ingredients will support
continued growth of targeted, even niche,
products. In the end, the definition of
“success” may be redefined, and it will
likely center around lower but more
targeted sales stories.
ease, non-foods launches continued to
climb, outpacing food and beverage
launches for the first time in recent history.
A substantial slowdown occurred in 2009
across food and beverages, while the pace
of innovation across non-foods continued
to gain momentum. This trend continued
in 2010.
From a dollar sales perspective, though,
new food and beverage launches
outperformed their non-foods counterparts.
This is likely attributable to phenomenal
year-one sales results across a select few
new food and beverage brands in 2010.
These brands will be explored on the
pages that follow.
Number of CPG New Product Introductions*
Brand Level
Just 3% of new products achieve
blockbuster status, year-one sales of more
than $50 million. The reality is, successful
new product innovation is exceptionally
difficult, and a vast majority of new
products don’t even reach $7.5 million in
sales during their first year.
Still, innovation is essential.
Even during a time of prolonged economic
instability, one in five consumers indicates
that she is always looking for new products
to try1.
Innovation has slowed somewhat during
the past several years, specifically in the
food and beverage arena. In 2008, when
food and beverage innovation began to
Overview
New Product Pacesetters: Carving Out Growth in a Down Economy
74%
5%11% 6% 2% 0%
83%
4% 7% 5% 1% 0%
<$7.5 $7.5-$10 $10-$20 $20-$50 $50-$100 $100+
Total Food & Beverage Total Non-Foods
903 916 859
659 647796 833
936 949 957
2006 2007 2008 2009 2010
Total Food & Beverage Total Non-Foods
Source: SymphonyIRI New Product Profiler™*Across Food, Drug & Mass Channels (excluding Walmart)
2010 Proportion of CPG New Productsby Year-One Sales* ($ Millions)
Source: SymphonyIRI New Product Profiler™*Across Food, Drug & Mass Channels (excluding Walmart)
1Source: SymphonyIRI 2011 New Products Survey
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
happened in the food and beverage arena
and in non-foods. The top two new brand
launches out-performed their closest New
Product Pacesetter rivals by a wide
margin.
In the coming year, CPG manufacturers
will need to make difficult choices vis-à-vis
new product development. The economy
is still very unstable. Consumers are quite
cautious, and many expect their financial
situation to deteriorate as the year
progresses. Consumer appetite for new
products is not strong, due to fear of
“wasting” money on an unknown
newcomer that disappoints.
In difficult economic times, the advantage
of coming to market with established brand
equity is substantial. But, the potential
reward of winning with a new brand holds
great allure.
that brand trust heavily influences brand
decisions.
New food and beverage brands have
historically out-performed brand
extensions. And, despite an unstable
economy and extremely high levels of
consumer caution and frugality, this
certainly remains true today. In 2010, in
fact, new launches reaped much higher
than average year-one returns.
In 2010, new food and beverage brand
introductions outperformed brand
extensions by 61%. Across non-foods
categories, the gap is even more
substantial, at 79%.
The sizable gap in year-one success
between 2010 new brands versus brand
extensions is largely attributable to a
handful of hard-hitting launches. It
Detailed in SymphonyIRI’s recent 15 Years
of New Product Pacesetters report, a
comprehensive analysis of the most
successful CPG product launches over the
past 15 years, history’s innovators have
frequently chosen brand extensions over
new brand introductions as a means of
bringing new products to market.
It’s no surprise. After all, brand extensions
are a relatively quick and inexpensive way
to add excitement and longevity to core
brands. Brand extensions accounted for
88% of new food and beverage and 92% of
non-foods products introduced in 2010.
SymphonyIRI’s recent Brand and Retailer
Loyalty survey revealed that consumer
brand decisions are impacted by whether
or not there is an established trust of the
brand. In fact, 52% of consumers indicate
Growth Opportunities: New Brands v Brand Extensions
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™*Across Food, Drug & Mass Channels (excluding Walmart)
Source: SymphonyIRI New Product Profiler™*Across Food, Drug & Mass Channels (excluding Walmart)
88% 92%
Food & Beverage Non-Foods
2010 % of New Product Pacesetters*
That Are Brand Extensions
$29.5 $32.9
$42.4 $38.9
$26.8$19.6
$26.4$21.7
Food & Beverage
Non-Foods Food & Beverage
Non-Foods
New Brands v Brand ExtensionsAverage Year-One Sales ($ Millions)
20102002-2009
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$53.9
$59.9
$62.1
$74.2
$74.4
$80.8
$110.3
$114.1
$149.4
$190.5Shelf Stable Sports Drinks
Yogurt
Snack Nuts/Seeds/Corn Nuts
Bottled Water
Fresh Bread & Rolls
Rfg Juices/Drinks
English Muffins
Coffee
Beer/Ale/Alcoholic Cider
Gum
1. POWERADE ION4
2. Chobani Greek Yogurt
3. Wonderful Pistachios
4. glacéau vitaminwater zero
5. Nature’s Pride
6. Trop50
7. Thomas’ Better Start
8. Green Mountain Coffee K-Cups
9. Budweiser Select 55
10. Trident Layers
low in fat. It’s all natural, and preservative
and hormone free. Live yogurt cultures
and bone-building calcium bring added
nutrition. And, it’s a quick and easy for in-
home and on-the-go consumption.
The success of Chobani and Wonderful
also reinforce a hugely important message
for CPG manufacturers: it doesn’t take a
giant to attain new product success.
The power and diversity of trends offering
innovation opportunity across food and
beverages is amazing. The pages that
follow provide greater detail on these
trends and the impact of innovation in
these important areas.
and sales of all natural foods grew 1.1%
during 2010, outpacing average CPG
industry growth by a wide margin. Growth
was driven, in part, by increased product
availability and marketing support. Three of
this year’s top ten new food and beverage
releases are all-natural products.
Wonderful Pistachios provides all-natural
powerful, flavorful crunch. Nature’s Pride
bread nourishes the body with only the
purest of ingredients.
Chobani Greek yogurt is “nothing but
good.” The brand single-handedly
addresses a range of today’s most
pressing food-related desires in a single
versatile product. It’s high in protein, and
Food & Beverage: Top 10 Pacesetters
New Product Pacesetters: Carving Out Growth in a Down Economy
2010 New Product Pacesetters: Top 10 Food & Beverage BrandsYear-One Dollar Sales ($ Mil) Across Food, Drug and Mass
(Excluding Walmart)
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
According to SymphonyIRI’s 2011
Consumer Snacking Study, 71% of
consumers are trying to eat healthier these
days. Top food and beverage innovations
of 2010 played very well to this mission.
Food and beverage marketers are
successfully building nutrients into their
new products. And, they are successfully
taking away less desirable attributes.
POWERADE ION4 is aimed at helping
athletes, and “want-to-bes,” perform at
their best by replenishing four electrolytes
lost in sweat and boosting energy
metabolism. Glacéau vitaminwater zero
has a more broad-market approach which
“lets you act as the peacemaker in the epic
battle between taste and nutrition,” with an
array of added vitamins and no calories.
Trop50 and Budweiser Select 55 bring to
market the flavor of a “full calorie” product
offering with significantly less calories. The
marketers of these products understand
that many consumers are not willing to
sacrifice flavor to save on calories, a
critical mindset that is at the center of
these products’ marketing campaigns.
Trident is bringing flavor and texture
excitement to the sugarless gum category
with Trident Layers. This new product is
marketed as a “gumwich,” a soft fruit
flavored center layer sandwiched between
two layers of fruit flavored gum.
Consumers’ passion for all-natural foods
trigged an exceptionally strong return,
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smooth and creamy yogurt marketed for
“whenever, wherever consumption.”
The most successful salty snacks of 2010
represent a range of snack segments,
including meat snacks, crackers, chips and
nuts. Detailed in SymphonyIRI’s 2011
State of the Snack Industry report, these
products capitalize on growth opportunities
in satiety, health and wellness, value and
sustainability.
Across food categories, CPG
manufacturers are finding success
innovating around home-based food
rituals.
has covered this trend in great detail
throughout the course of the economic
downturn.
The yogurt category is a major contributor
to the strong performance by the breakfast
solutions consumption grouping. Seven of
the 32 breakfast solutions Pacesetters are
yogurts, bringing to market a range of new
flavors and forms, including Greek yogurts.
Danimals Crush Cups, for instance, come
in a crushable cup, providing a spoonless
on-the-go snacking solution targeted at
young consumers. And, for the adult
market, new on-the-go yogurt successes
includes Dannon’s Activia yogurt drink, a
Food & Beverage: Category Trends
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
While overall food and beverage innovation
is slightly lower this year versus last year
and historical trends, some product usage
groups found great success innovating in
2010.
For instance, breakfast solutions
represented one-third of Pacesetter dollars
within the food arena in 2010, substantially
higher versus a historical trend of 23%.
Similarly, salty snacks innovation
accounted for nearly 25% of Pacesetter
dollars within the food arena, more than
doubling the historical trend of 9%.
These successes are supported by an
intense consumer demand for at-home and
from-home meal solutions. SymphonyIRI
Most Active Food New Product PacesettersProduct Usage Group as % Total Food Pacesetter Dollars
23%34%
9%
22%17%
15%16%
11%6%
9%27%
10%Other Foods
Candy & Gum
Meal Makers / Light Meals / Appetizers Dinner Solutions
Salty Snacks
Breakfast Solutions
Average2002-2009 2010
Other :
Sweet SnacksDessertsSauces/Spreads/ Dressings/ Dips/Condiments
Avg.2002-2009 2010
13%10% 3%
3%5% 2%
*
*
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
launch of 2010 was Kool-Aid Fun Fizz,
fruit-flavored tablets that “fizz” when
combined with water.
Three big-selling coffee and tea launches
helped to drive the segment’s share of
Pacesetter beverage product sales
northward by six points in 2010. Single
cup coffees by Newman’s Own and Green
Mountain contributed heavily to this
growth, benefitting not only from home-
based indulgence, but also the launch of
single cup coffee brewers, such as Keurig.
Juices and waters launches in 2010 also
catered to consumers’ wellness goals,
evidenced by top-selling glacéau
vitaminwater zero, mentioned earlier, as
well as products such as Apple & Eve
Fruitables, a fruit and vegetable juice
beverage targeting the youth market, and
Yoplait Smoothy, a quick and easy frozen
yogurt drink.
But, innovation also found success in
bringing to market at-home indulgences.
The most sizable indulgent beverage
Food & Beverage: Category Trends
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
On average during the past eight years,
beverage categories have a fairly strong
trend of successful innovation. In 2010,
this trend continued, but shifts occurred
across product usage groups.
The most sizable shift is evidenced across
the juices, milks and waters segment, with
healthier-for-you milks, in particular,
making a big splash. Four of the 12 new
launches in the past year were healthier-
for-you milks. The top selling new milk
brand, Silk Almond Milk, touts the
goodness of almonds to treat your body to
perfectly delicious nutrition, just as Nature
intended.
Most Active Beverage New Product PacesettersProduct Usage Group as % Total Beverage Pacesetter Dollars
26%41%
45%
32%
8%14%
22%13%
Beer, Wine & Spirits
Coffee & Teas
Carbonated, Sports, & Energy Drinks
Juices, Milks & Waters
Average2002-2009 2010
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
years. In 2010, the average pantry was
home to 369 SKUs, down sharply from an
average of 404 in 20071.
The convergence of pantry shrinkage and
variety innovation trends underscore the
urgency of ensuring that products that are
brought to market have maximum
relevancy to ensure ideal placement and
maximum impact.
Key benefits are explored in greater detail
on the next several pages of this report.
From natural products to organics, and
from added “good” ingredients to reduced
“not so good” ingredients, innovation
centered on raising the bar on healthier
eating abounds.
Variety has been a key focus of food and
beverage innovation during the past
several years. CPG maintained this focus
on more variety in 2010. Last year, three-
quarters of successful food and beverage
launches expanded available variety.
Meanwhile, pantry sizes across America
have been shrinking in the past couple of
Food & Beverage: Consumer Benefit Trends
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
A great deal of food and beverage
innovation is centered on bringing healthier
eating and drinking solutions to the
marketplace. In a prolonged economic
downturn, it has become the nucleus of
many consumers’ money saving strategies.
The mindset is: ”If I eat healthier, I am
healthier. If I am healthier, I will not spend
as much on medical expenses.”
Even as the economy has made positive
strides, the focus on healthy eating
remains quite strong. According to
SymphonyIRI’s 2011 Consumer Snacking
Study, 71% of consumers are trying to eat
healthier these days.
2010 Food & Beverage New Product Pacesetters: Top 15 Benefits% of Total Pacesetters Offering Benefit
17%
17%
22%
25%
25%
25%
27%
27%
30%
33%
33%
38%
39%
73%
75%
Less, Reduced Fat or Fat-Free
Improved Flavor, Taste
Different Texture
Less, Reduced Calories, Lo-cal
Bite-size, Hand Held
New Technology
Added Vitamins, Nutrition
High Fiber or Whole Grain
More Natural, Organic
Improved/Superior Process
Convenience, Ready-to-Serve
New Designs, Patterns, Look
Distinctive/New Flavor
New or Unique Recipe
Variety--Flavors or Recipes
Taste & Variety
Health & Wellness
Convenience
Other
1Source: SymphonyIRI Economic Shopping Behavior Longitudinal Database™, SymphonyIRI Consumer Network™
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Top food and beverage Pacesetters
Chobani and Trident Layers, detailed
earlier in this report, are examples of new
textures in the grocery aisles.
Another yogurt, YoCrunch 100 Calorie
Cup, also achieved New Product
Pacesetter status in 2010. Consumers
were drawn to the wholesome benefits of
smooth and crunchy yogurt packaged in a
manner that takes the guesswork out of
calorie counting.
The old became new again with the launch
of the Pepsi Throwback line, including
Pepsi Throwback and Mountain Dew
Throwback. These products have been a
smashing success, made with real sugar,
iconic packaging and the taste that
captures the spirit of the 1970s and 1980s.
The idea behind the launches was to
appeal to consumers’ nostalgic side and
capture their “taste for the past.”
Innovation around texture also picked up in
2010. For the year, nearly one-quarter of
new food innovation brought different
textures to the marketplace, ranging from
thick and creamy to crispy and crunchy.
Variety innovation was very hot across
food and beverage categories in 2010.
New recipes escalated sharply in 2010,
bringing fun and excitement to everyday
eating occasions.
For instance, Stouffer’s Easy Express
Skillets target the busy family looking for a
quick and nutritious way to solve the daily
dinnertime dilemma. This line offers a
“wide range of delicious, wholesome meals
that let you feed your family in 20 minutes
or less.”
For snackers, Doritos Late Night tortilla
chips offer “great taste, great crunch and
good fun™” rolled into one. Products,
such as Special K Fruit Crisps, offer the
opportunity to satisfy a sweet tooth without
completely derailing healthier eating
efforts.
Food & Beverage: Consumer Benefits - Taste & Variety
New Product Pacesetters: Carving Out Growth in a Down Economy
Percent of Food & Beverage New Product PacesettersOffering Taste & Variety Benefits vs Historical Trend
75% 73%
39%
22% 17%
61%
46%35%
12% 8%
Flavors or Recipes
New/Unique Recipe
Distinctive/New Flavor
Different Texture Improved Flavor/Taste
20101997-2010
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
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New ingredients are emerging on a
seemingly daily basis, and technology is
quickly evolving. Just one example of a
quickly evolving ingredient trend relates to
gluten. This trend is outlined in more detail
in the “Food & Beverage - Trends to
Watch” section of this report.
Together, technology and ingredient
advancements hold enormous potential for
U.S. consumers’ wellness goals. CPG
manufacturers must continue to study and
experiment with these factors, finding new
and different ways to bring health and
wellness to the next level.
Equally popular, though, is the reduction or
removal of less desirable attributes,
namely calories, fat and sodium.
Three of the top 10 new food and beverage
launches tout less calories: Trop50 orange
juice, Budweiser Select 55 and Yoplait
Delights.
Progresso High Fiber Ready-to-Serve
soups conveniently provide desirable
attributes, namely fiber, in a reduced
calorie, low fat soup.
McCormick and Morton are each bringing
more flavor to foods while reducing
sodium, with successful launches of
seasoning products.
Food & Beverage: Consumer Benefits - Health & Wellness
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Discussed earlier in this report, food and
beverage innovation around health and
wellness has picked up notably in the past
year.
In 2010, 30% of successful new food and
beverage launches offered natural and/or
organic ingredients, while one-quarter
brought to market added nutrients or more
fiber/whole grains.
Several of the top 10 food and beverage
Pacesetters are all natural/organic,
including Chobani, Wonderful Pistachios,
and Nature’s Pride bread. Certainly, drive
for more natural/organic foods cuts across
food and beverage categories. Buitoni
Riserva pasta, Alouette Natural Crumbled
cheese and Healthy Choice All Naturals
are just a few additional examples of CPG
manufacturers hitting it big by sticking
close to nature.
Other healthy attributes hitting the shelves
with more frequency include more
energy/protein and more antioxidants.
POWERADE ION4, mentioned earlier,
increases energy by replacing key
electrolytes that are lost in sweat. Dannon
Activia Fiber is a low-fat yogurt with fiber
and cereal. General Mills Wheaties Fuel is
bringing a combination of hard-hitting
attributes - an energy boost from whole
grains and essential B vitamins, as well as
fiber to curb hunger and regulate the
digestive system.
Percent of Food & Beverage New Product PacesettersOffering Health & Wellness Benefits vs Historical Trend
1%
4%
4%
6%
17%
17%
10%
19%
16%
6%
10%
11%
12%
25%
25%
27%
27%
30%
Low Salt/Sodium
No Trans Fat
Antioxidants
Energy/Protein
Lower Fat/Fat Free
Reduced Calorie
High Fiber/Whole Grain
Added Vitamins, Nutrition
Natural/Organic
20101997-2010
1313
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and evening snack and meal occasions. In
a convenient, hand-held form, Hot Pocket’s
SideShots are mini soft-baked sandwiches
that are microwave ready in about two
minutes. And DIGIORNO Flatbread Melts
deliver fresh-baked, restaurant taste in
minutes from the microwave.
The economy is slowly emerging from
recessionary conditions. But, consumers
remain exceptionally cautious, with many
continuing to struggle to afford weekly
groceries. A predicted escalation of food
and beverage prices in 2011 will add to
apprehension, supporting a continuation of
home-based food rituals in the coming
year.
indulgent sectors of the marketplace, with
Del Monte Fruit Chillers and Dove Bar
Miniatures, respectively.
The quest for convenience crosses
dayparts, and innovation does, too. For
instance, top-10 performer Thomas’ Better
Start English Muffins raised the nutrition
bar on portable breakfast solutions. These
muffins offered more fiber with less
calories, no high fructose corn syrup and
no trans fat, yet were still “Thomas’
Delicious.” In January 2011, this line was
replaced by Thomas’ Hearty Grains, further
enhancing the brand’s wellness profile.
Hot Pocket SideShots and DIGIORNO
Flatbread Melts are hand-held entrees that
add to on-the-go options for the afternoon
Food & Beverage: Consumer Benefits - Convenience
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Convenience is a long-standing and well-
entrenched trend in the CPG industry. It
has truly become an expectation within the
industry, often playing a secondary role to
newer and/or evolving expectations.
The demand for convenience has been
reinforced in recent years by economic
conditions, which have led more
consumers to eat at home or bring food
from home in an effort to minimize food
and beverage expenditures.
Detailed in SymphonyIRI’s 2010 State of
the Snack Industry report, one-third of
consumers are eating snacks in place of
meals today, and 39% seek snacks that
can be eaten on the go.
CPG manufacturers are working to
capitalize on these opportunities.
Consumers are responding favorably to
their efforts. In 2010, one in three
successful new food and beverage
launches touted convenience benefits.
Innovation around bite-sized and hand-
held food and beverage escalated sharply
last year, accounting for one-quarter of
successful new launches.
In the gum/candy arena, bite-sized
products, such as Hershey’s Pieces and
Skittles Crazy Cores, offer convenient
excitement to the snack occasion.
On-the-go frozen novelty innovation
addressed the healthier and more
33%
25%26%
12%
20101997-2010
Percent of Food & Beverage New Product PacesettersOffering Convenience Benefits vs Historical Trend
Extra Convenience, Added Portability, Ready-to-Use
Bite-Size, Hand-Held, Snack Form
14
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
2010 New Product Pacesetters Rising Stars
Projected Top 10 Food & Beverage Brands(Alphabetical Order)
Dannon Danimals CoolisionRfg Yogurt
Oscar Mayer SelectsFrankfurters
Food & Beverage: Rising Stars
New Product Pacesetters: Carving Out Growth in a Down Economy
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Dove PromisesChocolate Candy
PF Chang’s Home MenuFz Dinners/Entrees
M&Ms Milk Chocolate PretzelChocolate Candy
Stouffer’s Lean Cuisine Market CartonsFz Dinners/Entrees
Marie Callendar’s Fresh Flavor SteamersFz Dinners/Entrees
Thomas’ Bagel ThinsBagels/Bialys
Mountain Dew White OutCarbonated Beverages
Yoplait Greek Yogurt
more for gourmet snacks. Yoplait Greek
yogurt, mentioned earlier, and Dove
Promises each cater to this marketplace.
Trends around convenience, wellness and
gourmet products are likely to continue to
intensify as technology evolves and the
marketplace ages. Food and beverage
manufacturers must continue to invest to
understand how these trends are evolving,
and how new attributes and technologies
can raise the bar on innovation. This
knowledge is and will continue to be
invaluable in an increasingly competitive
marketplace.
performing quite well in its first year on the
market, though the brand did not make the
ranks of the top 10 Rising Stars for this
analysis.
Also quick and easy, PF Chang’s Home
Menu and Marie Callender’s Flavor Fresh
Steamers make restaurant quality and/or
premium flavor dinners readily attainable in
the home and at a more affordable price
point.
Despite economic conditions and
conservative consumer mindsets, premium
product launches continue to hold growth
opportunity. For instance, SymphonyIRI’s
2011 Consumer Snacking Study reveals
that 19% of consumers are willing to pay
SymphonyIRI’s Rising Stars provide a
sneak peek at the CPG world of tomorrow.
These products have been in the
marketplace for less than one year, but
they are achieving strong sales results
because they are resonating with the ever-
evolving consumer.
This year’s Rising Stars bring wellness and
indulgence, tied with a pretty bow of
convenience and gourmet appeal. Many of
the products on this year’s Rising Stars list
offer more than one of these hard-hitting
benefits.
Convenient, healthy and indulgent, Yoplait
Greek yogurt has twice the protein of
“regular” yogurt with a thick and creamy
texture. Dannon GREEK yogurt is also
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Food & Beverage: Trends to Watch
Food and beverage innovation will
continue to run broad and deep, with
convenience remaining an expected, yet
secondary, attribute of most successful
new products. Other key influencers of
food and beverage innovation include:
Wellness goals notwithstanding,
consumers today view eating and drinking
as an opportunity for fun and excitement.
Bold new flavors, forms and textures bring
added pleasure to the dining experience.
SymphonyIRI’s 15 Years of New Product
Pacesetters report details the power that
can be found in this type of innovation.
From restaurant-quality meals to
unexpected flavor and/or texture
combinations, eating with a twist has really
caught on.
In the coming months, at-home and from-
home eating will remain pervasive. It is a
means of reducing expenditures. But,
consumers do not want to give up
indulgence or excitement along the way.
CPG manufacturers have the opportunity
to bring indulgence and excitement into the
home, building share, margin and goodwill
along the way.
New Product Pacesetters: Carving Out Growth in a Down Economy
Self-Driven Health & Wellness
Early in the recession, consumers put a
21st Century spin on a very old adage, “An
ounce of prevention is worth a pound of
cure.” Eating to prevent and manage
common ailments became very wide
spread.
As discussed in this and last year’s New
Product Pacesetters reports, innovation
around health and wellness is quite
prevalent these days. These new products
are being enthusiastically received, as they
are helping consumers to achieve their
wellness goals.
Demand for healthier-for-you food and
beverage options will continue to
proliferate in the next several years, even
well after the economy has regained stable
footing. And, as technology evolves and
new ingredients become available, CPG
manufacturers will continue to invest
significant amounts of time and money in
bringing to market food and beverage
brands that serve this very important
market.
Experiential Eating
Gluten-Free
Gluten-free, once a small niche of the U.S.
food and beverage market, has exploded
during the past several years. Packaged
Facts projects that U.S. retail sales of
gluten-free products will reach more than
$5 billion by 2015, driven by a sharp
increase in prevalence of celiac disease
and a range of intolerances to gluten.
Sustainability
During the past several years, players
across the CPG industry have invested
time, money and effort into reducing their
environmental footprint. Facilities have
been redesigned to use more natural
resources, packaging has been
reevaluated for opportunities to reduce/re-
use/recycle, fleets have been retrofitted
with more efficient and/or hybrid engines,
and products have been reformulated to
contain more sustainable/natural/organic
ingredients. The CPG industry is making a
difference in our world, and consumers are
taking notice.
One in three consumers indicate that,
when making brand decisions, whether or
not a product is environmentally
friendly/ethically produced is important to
them. Despite persistent economic
difficulties, this statistic has remained
unchanged during the past year.
In the coming months and years, CPG
marketers should continue to focus on
sustainability as an opportunity. It’s an
opportunity to help Mother Earth, and to
build/fortify consumer relationships.
1Packaged Facts, “2011 Gluten Free Foods & Beverages Report”
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
$39.8
$40.5
$46.8
$49.4
$54.2
$66.8
$78.0
$78.3
$127.0
$154.11. Crest 3D White
2. Prevacid 24HR
3. Plan B One-Step
4. Next Choice
5. Huggies Pull-Ups Learning Designs
6. Dove Men+Care
7. Olay Professional Pro-X
8. Scope Outlast System
9. Dove Body Wash with NutriumMoisture
10. LISTERINE/REACH TOTAL CARE
Toothpaste/Mouthwash
Gastrointestinal Tablets
Contraceptives
Contraceptives
Diapers
Soap/Shaving Lotion/Men’s Frag./Deodorant
Skin Care
Mouthwash/Toothpaste/Toothbrush/Dent. Acc.
Soap
Mouthwash/Toothbrush/Dent. Acc.
Consumers can also avoid a visit to the
doctor with two other top-10 non-foods
Pacesetters products: Plan B One-Step
and Next Choice. Each of these products
is home-based emergency contraception in
pill form. They offer a convenient, simple
and discrete solution to a very personal
situation.
In similar fashion, consumers are now
achieving faster and better results in the
laundry room with Tide Stain Release in-
wash booster. This new product line works
as a pre-treater or in-wash booster to help
remove tough stains the first time.
Novartis armed consumers with a new,
more powerful way to deal with painful
heartburn with the Rx-to-OTC switch of
Prevacid 24HR. Once again, the success
of this product is the ability to achieve
results normally reserved for professional
care - in this case, a doctor’s prescription,
in an at-home, do-it-yourself treatment
option.
Non-Foods: Top 10 Pacesetters
New Product Pacesetters: Carving Out Growth in a Down Economy
2010 New Product Pacesetters: Top 10 Non-FoodsYear-One Dollar Sales ($ Mil) Across Food, Drug and Mass
(Excluding Walmart)
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
The most successful non-foods product
launches of 2010 tell a story of consumers’
quest for the fountain of youth and
indulgence tempered by a difficult
economy. These products illustrate
consumers’ adoption of the “spa at home.”
This isn’t just an ordinary spa, though.
Today’s consumers are looking to see their
at-home spa treatments produce results
traditionally achieved only in professional
spas.
In 2010, beauty care products in the Olay
Professional Pro-X line came to market
with this powerful marketing story. It’s a
story that resonated soundly with
consumers, evidenced by shoppers
opening up their wallets and spending on
these premium-tiered product offerings—
no small achievement in such a
conservative marketplace, and a grand
achievement for marketers looking to drive
purchase behavior and margin during a
period of prolonged economic difficulty.
The Crest 3D White collection does for the
oral care department what Olay
Professional Pro-X and does for beauty
care. It raises self-administered at-home
care to a new level. The product line was
created to bring consumers a single
system that works together to whiten, clean
and protect teeth, without the cost of a
dental visit. And, the line was recently
expanded to include an enamel renewal
toothpaste and 2-hour whitening strips1.
1Drug Store News, March 3, 2011
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products that bring the tastes, aromas and
textures of home-cooked pet owner meals
into cats’ dining experience. Dog foods
have similar momentum, with six New
Product Pacesetter brands.
Other areas of non-foods innovation
slowed slightly in 2010, but the focus
remains the same. CPG marketers are
working to bring to market products that
make day-to-day experiences easier and
more effective.
professional quality results into the hands
of consumers. It has been made possible
by the near-constant discovery of new
ingredients/ingredient combinations and
advances in technology.
Detailed earlier in this report, Crest 3D and
Olay Professional Pro-X bring these
results. But, the list goes on. For the year,
29% of health, beauty and personal care
innovation brought professional results
without the professional price tag.
Gourmet pet food innovation gained steam
in 2010. Three Friskies cat food brands
achieved Pacesetter status in 2010, with
Non-Foods: Category Trends
New Product Pacesetters: Carving Out Growth in a Down Economy
Consumers continue on their quest to look
and feel good despite difficult economic
conditions. In part due to economic and
personal financial conditions, though, that
desire now comes with an added twist–
looking and feeling good on a budget.
Innovation trends across non-foods
categories clearly support these very
important trends. Innovation across
health, beauty and personal care
accounted for three-quarters of non-foods
innovation dollars in 2010, a sharp
increase versus historical trends.
Perhaps the most pervasive trend across
these departments is innovation that brings
Most Active Non-Foods New Product PacesettersNumber of Pacesetters (Product Usage Group)
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
31% 35%
19%22%
16%
19%6%
8%11%
6%17%8%Other Non-Foods
Home Care – Detergents, Cleaners
Pet Care
Health Care
Beauty Care - Hair, Cosmetics, FragrancesPersonal / Hygiene Care
Average2002-2009 2010
Other :
Baby CarePaper, Plastics, Foils Air Fresheners/CandlesGeneral Merch
Avg.2002-2009 2010
7%6% 2%2%
4%0% 3%1%
*
*
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Gillette’s Venus Tropical Disposable razors
have a no-slip handle that makes smooth
shaving easier. And L’Oreal’s Excellence-
to-Go hair color delivers rich color and
stronger-feeling hair in just 10 minutes.
The benefits that are driving non-foods
success will be explored further on the
following pages of this report.
About one in five 2010 launches offered
more natural and/or organic ingredients,
and 14% added vitamins and nutrients. To
be explored later in this report, these
product attributes are increasingly being
added across a number of non-foods
categories and CPG departments.
Convenience remains an important
characteristic of successful non-foods
products, touted across 28% of successful
new brands in 2010. For instance, the
Bounce Fabric Dryer Bar remembers the
freshness so you don’t have to.
Non-Foods: Consumer Benefit Trends
New Product Pacesetters: Carving Out Growth in a Down Economy
While 80% of non-foods launches brought
more variety into the marketplace, the big
story in non-foods innovation is about
effectiveness. It’s a story about completing
everyday tasks with less effort, and still
achieving better results.
From home care to laundry care, and
beauty care to healthcare, technology is
making it possible and CPG manufacturers
are making it happen. Three-quarters of
2010 non-foods Pacesetters bring new
technologies to the non-foods arena.
Manufacturers of non-foods are also
intently focused on supporting consumers’
wellness goals.
2010 Non-Foods New Product Pacesetters: Top 15 Benefits% of Total Pacesetters Offering Benefit
2%
4%
8%
11%
14%
18%
19%
28%
31%
52%
60%
73%
76%
80%
New Use/Approach/Application
ULTRA, Concentrated Effectiveness
Known Brand/New Category
Aroma Therapy, Theraputic
Added Vitamins/Nutrients
Enhanced Moisturizing
More Natural, Organic
Added Convenience/Portability
New or Unique Formula
Improved/Superior Process
New Design/Pattern/Look
New Technology
Expanded/ Improved Effectiveness
Variety
Performance
Health & Wellness
Variety
Convenience
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Consumers looking to pamper their pets
are turning to new pet food launches to do
so. Purina’s Chef Michael’s lines of dry
and wet dog food are chicken, beef, turkey
or pork based meals with real vegetable
garnishes, helping make meal times
unforgettable - at least for the pet owner.
And, because anytime is the perfect time to
celebrate, Fancy Feast Appetizers will
whet a cat’s appetite without fillers or by-
products.
The Febreze Home Collection is a line of
air fresheners in inspirational designs and
unique scents that bring premium home
fragrance with style.
The eye of the beholder has more to
appreciate these days, thanks to new
products that simplify and enhance beauty
and personal care processes.
L’Oreal eye cosmetic lines, including
Extra-Volume Collagen and Telescopic
Explosion are specially formulated to build
volume and length and intensity,
respectively.
And, Garnier HerbaShine utilizes bamboo
extract to improve the condition of hair by
fortifying the cuticle while wrapping it in
radiant, shiny color.
Variety is exploding across non-foods new
product launches. In 2010, 80% of new
non-foods brands brought new variety to
consumers, a significant increase versus
historical trends.
This new assortment of products stretch
across non-foods departments, and bring
consumers an array of benefits, from
aroma to more zip, and everything in
between.
Purex Complete 3-in-1 laundry sheets, for
instance, combine detergent, fabric
softener and anti-static into a single sheet.
With 10X concentrated detergents and
heat-activated softeners and static guards:
It’s Laundry. Simplified.
Non-Foods: Consumer Benefits - Variety
New Product Pacesetters: Carving Out Growth in a Down Economy
Percent of Non-Foods New Product PacesettersOffering Variety Benefits vs Historical Trend
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
80%
60%50% 46%
New or Unique Varieties New Design/Pattern/Look
20101997-2010
2020
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Products with added nutrients or improved
moisturizing power also gained steam in
2010. In some instances, the brands
brought both. St. Ives Fresh Skin is one
example of this successful combination.
Another example is Nivea “Touch of” body
wash line, including Touch of Happiness,
and Touch of Honeydew, which hydrates
skin while cleaning with Hydro IQ
technology, and simultaneously delivers
other pampering sensations and scents
with innovative combinations of natural
ingredients.
Huggies Pure & Natural, for instance, has
an organic cotton outside, and the inner
lining contains renewable materials.
Hypoallergenic materials and Leak Lock®
protection add appeal for parents looking
for comfort and reassurance when
purchasing diapers for their baby.
For adults looking for a fresh, clean face,
St. Ives Fresh Skin uses “ingredients you
know,” such as apricots, minerals and
olives, naturally revealing fresh, glowing
skin.
New Product Pacesetters: Carving Out Growth in a Down Economy
In non-foods, wellness attributes fall into
several broad categories, each of which
showed an uptick in innovation during the
past year.
The largest jump is evidenced across
natural and organic related attributes.
Across grocery, drug and mass
merchandise channels, sales of natural
and organic non-edibles grew 17% and
7%, respectively.
Nearly 20% of successful new launches
across non-foods categories, touted
natural and/or organic attributes,
supporting this growth and consumers’
growing demand for these types of
solutions.
Percent of Non-Foods New Product PacesettersOffering Health & Wellness Benefits vs Historical Trend
Non-Foods: Consumer Benefits - Wellness
18%
11%14%
19%
12%8% 8%
11%
Enhanced Moisturizing Aroma Therapy, Therapeutic
Added Nutrients More Natural, Organic
20101997-2010
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
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New Product Pacesetters: Carving Out Growth in a Down Economy
Percent of Non-Foods New Product PacesettersOffering Performance Benefits vs Historical Trend
Non-Foods: Consumer Benefits - Performance
76% 73%
52%
31%
66%58%
27% 25%
Expanded Effectiveness New Technology Improved Process New Formula
2010
1997-2010
example of a completely redesigned
approach to laundry. One sheet handles
each step in the laundering process, from
washing, to softening and preventing static.
Technology is evolving at an amazing
pace. It is occurring across all CPG
departments and categories, and outside
the realm of CPG. Marketers must stay on
top of changing technology, and constantly
evaluate the feasibility of adapting these
advances for use in their own categories
and brands. These advances will be the
foundation of the CPG world of tomorrow.
Sure deodorant now comes specially
formulated for men, and for women. The
men’s products offer the maximum level of
active ingredients allowed without a
prescription, and masculine fragrance.
The women’s line is formulated to be easy
on the skin, with vitamins and aloe vera,
but tough on perspiration and odor.
From Nexxus comes customized hair care,
marketed under the Nexxus Dualiste line
name. These shampoos and conditioners
will protect hair color while adding volume,
adding hydration or preventing breakage.
Not all new products are highly targeted,
though. On a broader scale and
mentioned earlier in this report, for
instance, Purex Complete 3-in-1 is an
Just over half of new non-foods launches
in 2010 take a new approach or bring an
improved process to their category, often
with the view of a very targeted user in
mind. Up from one-quarter in 2009, just
over half of non-food launches in 2010
offer new and/or enhanced process
benefits.
Several brands are reinventing the oral
care process. In addition to Crest 3D
White, mentioned earlier in this report, the
Scope Outlast product line includes
toothpaste, mouthwash and floss,
spanning several steps of the daily mouth
care ritual. Similarly, the Listerine/Reach
Total Care line combines two separate
brands into a single line that covers
multiple steps in the mouth care process.
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Non-Foods: Rising Stars
New Product Pacesetters: Carving Out Growth in a Down Economy
2010 New Product Pacesetters Rising Stars
Projected Top 10 Non-Food Brands(Alphabetical Order)
Charmin SensitiveToilet Tissue
Pampers Dry MaxDiapers
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Ensure Immune BalanceWeight Control/Nutrition Liquid/Powder
Purina Dog Chow Healthy Life NutritionDog Food
Gillettte Fusion ProGlideRazors
Schick HydroRazors
Maybelline Volum’ Express the FALSIESMascara
Tide plus Febreze Freshness SPORTLaundry Detergent
Nicorette Anti-Smoking TabletsAnti-Smoking Products
U by KotexSanitary Napkins/Tampons
More simply, Charmin Sensitive is toilet
tissue with added ingredients to enhance
softness and pamper the skin. And
Pampers Dry Max is 20% thinner, yet
provides two times the dryness versus a
competing product.
Easier to use with more effective results -
technology is making it possible. CPG
manufacturers are bringing the
technologies to consumers in the form of a
wide range of CPG products. It is a trend
that will continue in the foreseeable future.
of an indulgence and less of a chore. Men
are very receptive of the concept.
Several of this year’s non-foods Rising
Stars aim to make personal situations
more comfortable.
For instance, in addition to new
technologies designed to provide
enhanced product performance, media
around the U by Kotex launch has been
huge. Marketers behind the launch are
using social media aimed at creating buzz
and breaking the cycle of embarrassment
and confusion that is historically
associated with menstrual periods.
The non-foods arena’s 2010 Rising Stars
illustrate a continuation of trends
evidenced across last year’s up-and-
coming products. From pet care to
personal care, high-end innovation is
making day-to-day experiences easier and
more effective. In many instances, it is
providing indulgence, too.
The push to improve men’s shaving
experience continues with two successful
new razors: Gillette’s Fusion ProGlide and
Schick’s Hydro. A closer shave, less
pulling and skin irritation, a more
comfortable shaving experience - the
technologies differ, but the end goal is the
same - make the shaving experience more
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
right. Baby Boomers are aging;
consumers want to look and feel good
regardless of their personal financial
situation. The future of non-foods CPG will
be marked by products that bring the
power of professional treatments into the
homes and hands of consumers.
Efficacy
Related to “going pro” trends is the drive to
bring added efficacy to innovation across
non-foods departments. From health and
beauty care to home and pet care,
technology is opening the door to
development of products that make it
quicker and easier to complete everyday
tasks and achieve better results along the
way.
The benefits of being first to market with
the “next big thing” are huge, but
manufacturers that mimic those
revolutionary products are also finding
success.
Non-Foods: Trends to Watch
New Product Pacesetters: Carving Out Growth in a Down Economy
In the next several years, innovation in the
non-food arena will be influenced by a
continuation of a number of trends
illustrated throughout this report. Some of
those factors are the same as those seen
in the food and beverage arena, and some
are unique to non-foods.
Discussed earlier in this report,
sustainability provides opportunity for
growth across CPG categories and
departments. SymphonyIRI will continue
to monitor and report on sustainability
trends in the months to come.
“Going Pro”
Perhaps the most pervasive trend in the
non-foods arena is innovation around
products that bring professional quality
results into the hands of consumers. It’s a
trend that has been bolstered by
consumers’ self-reliant approach to health
and beauty care and their quest for the
fountain of youth. It has been made
possible by the near-constant discovery of
new ingredients/ingredient combinations
and advances in technology.
These products are thriving because their
results are real, the processes are
convenient and private, and the price is
Sustainability
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Sports Drinks
Energy Drinks
Bottled Water
Beer/Ale/Alcoholic Cider
Gum
Carbonated Beverages
Gum
Beer/Ale/Alcoholic Cider
Energy Drinks
Dried Meat Snacks $28.8
$29.6
$29.7
$31.0
$31.5
$37.6
$38.7
$54.3
$55.6
$253.71. POWERADE ION4
2. Monster Nitrous
3. glacéau vitaminwater zero
4. Budweiser Select 55
5. Trident Layers
6. Mountain Dew Throwback
7. Orbit Mist
8. Bud Light Golden Wheat
9. Red Bull Energy Shot
10. MATADOR by Jack Link
Convenience store operators play an
essential role in providing consumers with
a wide array of quick and easy CPG
solutions - from exciting and indulging, to
hunger satisfaction and nutritionally
focused.
As conservative, home-based food rituals
prevail, convenience marketers need to
remain steadfastly focused on bringing fun
and indulgence, while also embracing
opportunities to bring value and
affordability to the marketplace.
stick provides “a snappy texture, kick and
spicy flavor” in an easy-to-open package
well-suited for immediate and/or on-the-go
consumption.
Indulgences are also often satiated in the
convenience channel. Detailed earlier in
this report, Budweiser Select 55 offers the
flavor of a “full calorie” beer but without the
caloric impact. Also from Budweiser, is
top-performer Bud Light Golden Wheat,
offering a slightly sweet first sip, giving way
to a refreshingly crisp citrus finish.
Convenience Stores: Top 10 Pacesetters
New Product Pacesetters: Carving Out Growth in a Down Economy
2010 New Product Pacesetters: Top 10 Convenience Store BrandsYear-One Dollar Sales ($ Mil)
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
The convenience channel stands on its
own when it comes to top-selling new
product launches. A destination location
for impulse and immediate gratification
purchases, the top 10 food and beverage
ranking within this channel is very different
versus the same ranking across the
combined grocery, drug and mass
channels.
Trends within the convenience channel
underscore that many consumers have the
need for immediate indulgence and
energy, even if trying to eat healthier.
The Monster Nitrous line of energy drinks,
for instance, “is infused with Nitrous Oxide
to bring a unique texture and smooth
drinkable flavor and buzz that’s bigger than
ever.” Red Bull energy shots also provide
an energy boost, and are “perfect answer
for those times when you need sustained
energy for hours in a sip.”
Detailed in SymphonyIRI’s 2011 State of
the Snack Industry report, more than one-
quarter of consumers view snacks as a
means of satisfying an immediate hunger.
And, 68% of consumers choose meat
snacks when looking for a snack to fill that
need.
MATADOR snack sticks add excitement to
that hunger-satisfying mission. The meat
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Conclusions: CPG Manufacturers
New Product Planning
- Closely monitor market and consumer trends to identify opportunities to develop products that are relevant to consumers’ personal needs and offer something that others are not currently satisfying
- Communicate constantly with key consumer and target markets to ensure an intimate understanding of unmet and emerging needs
- Drive research efforts to a more micro-level (i.e., invest in shopper marketing) to identify niche and high-growth segments
- Learn from the leaders: Examine the foundation that makes strong leaders in the food and beverage and non-food sectors
Distribution and Merchandising Strategies
- Ensure distribution strategy closely aligns with the new product target consumer and optimal store mix
- Embrace old and new media to employ a highly integrated marketing strategy that creates buzz and communicates relevant brand attributes and a strong value proposition
- Leverage an integrated merchandising strategy that co-merchandises products with high purchase indices within key and target consumer segments
- Quantify the optimal media mix and distribution points necessary to achieve Pacesetter status across your portfolio of new launches
Product Launch and After
- Continually monitor actual versus projected sales growth in aggregate, across consumer segments and by store
- Continue to monitor consumers’ and shoppers’ pulse and intercept product problems before they become catastrophic
Manufacturers seeking to benefit from the power of innovation as they develop new products that spark the emotional and rational needs of today’s consumers and shoppers should consider the following action items:
New Product Pacesetters: Carving Out Growth in a Down Economy
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
New Product Selection
- Closely monitor market and consumer trends to identify opportunities to develop products that are relevant to consumers’ personal needs and offer something that others are not currently satisfying
- Constantly evaluate new products against the needs/wants of key shopper segments and trip missions; focus support heavily against best-aligned opportunities
- Be on the lookout for new sourcing opportunities that provide true innovation, including niche products that create true retail differentiation
- Learn from the leaders: Examine the foundation that makes strong leaders in the food and beverage and non-food sectors
In-Store Marketing and Merchandising
- Collaborate with manufacturer partners to ensure optimal assortment at the store level; leverage localized strategies, as appropriate
- Create cross-merchandising/cross-marketing programs bring solutions-based programs that are highly relevant to key and target shopper segments
- Tie new brands into existing and evolving store marketing platforms (i.e., health and wellness, professional care at home)
Benchmarking and Tracking
- Benchmark and frequently monitor projected sales across target shopper segments at the store level; intercept product problems before they become catastrophic
- Measure brand impact on total category sales
Conclusions: CPG Retailers
New Product Pacesetters: Carving Out Growth in a Down Economy
Retailers seeking to benefit from the power of innovation as they launch new products that spark the emotional and rational needs of today’s consumers and shoppers should consider the following action items:
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
Contact your SymphonyIRI client service representative regarding custom analyses leveraging the following resources, or to get more information on these and other new product support products and services available from SymphonyIRI:
Resources
New Product Pacesetters: Carving Out Growth in a Down Economy
Recognized as the industry gold standard for new product testing, this patented, in-market testing service not only determines if a new product and its launch strategy are on target, but also yields valuable consumer insights to maximize success.
BehaviorScan® New Product Testing
AttitudeLink™ Trier- Repeater/ Non-Repeater Surveys
This survey-based service is designed to provide an understanding of how consumer perceptions of a new product differ among known trier repeaters versus trier non-repeaters.
This model provides accurate year-one and year-two forecasts using initial in-market results, providing performance insights and tools enabling informed decisions about alternative marketing strategies.
IntroCast™ Launch Forecasting
SymphonyIRI’s launch management service delivers an accurate year-one sales forecast based on as little as eight weeks of data and provides alerts as to whether or not the new brand is on track to meet its goals early in the launch process.
Launch Commander™
New Product Profiler is an interactive tool which draws upon a new product database to help end users analyze critical success factors in the strongest new product introductions since January 2002, plan product launches, and set realistic goals for success.
New Product Profiler™
Newly Updated Through 2010: Groundbreaking Report by SymphonyIRIInnovation Highlights from 15 Years of New Product Pacesetters
SymphonyIRI’s Innovation Highlights from 15 Years of New Product Pacesetters is a study of the most successful CPG product launches over the past 15 years. It is designed to capture the essence of successful innovation, providing insights into strategies that have led to true market success. Brands featured in the report are illustrative of best practices in how to create new markets leveraging advanced consumer insights and new technologies.
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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
FOR MORE INFORMATION
Please contact Susan Viamari at Susan.Viamari@SymphonyIRI.com
with questions or comments about this report.
Corporate Headquarters:150 North Clinton Street
Chicago, IL 60661Telephone: +1 312 726 1221
www.SymphonyIRI.com
About SymphonyIRI Group SymphonyIRI Group, formerly named Information Resources, Inc. (“IRI”), is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. SymphonyIRI offers two families of solutions: Core IRI solutions for market measurement and Symphony Advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. SymphonyIRI solutions uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organization. For more information, visit www.SymphonyIRI.com.
New Product Pacesetters: Carving Out Growth in a Down Economy