In 2011-2012, nearly 1,900 new CPG brands hit retail shelves across the U.S. multi-outlet geography, which includes traditional grocery, drug and mass market retailers, as well as sales from dollar and club channels, Walmart and military commissaries. Information Resources Inc. (IRI) announced earlier this week that only 11 percent of those launches met the stringent, industry-recognized benchmarks of exceptional first-year sales success required to achieve 2012 New Product Pacesetter status.
The 200 top-selling CPG launches of the year, dubbed “IRI’s New Product Pacesetters,” each captured more than $13 million in year-one sales across the multi-outlet geography, with an individual average of $39.5 million in first-year revenues.
“IRI’s 2012 Pacesetters are best-in-class products that have truly beaten the daunting new product odds,” says Larry Levin, EVP and GM of insights and thought leadership at IRI. “In fact, the manufacturers of these Pacesetter brands showed a quiet resolve and determination to stimulate growth despite a challenging economic environment in 2012.”
Food and beverage launches capture $43.4M in year-one sales on average
Among food and beverage champions, average year-one dollar sales for the top 100 brands were $43.4 million. New food and beverage brands addressed long-standing trends around wellness, indulgence and convenience. Importantly, though, the most powerful launches of the year also delivered more to today’s finicky, frugal and fast-moving consumers, according to IRI. They provide new options that serve cross-occasion eating behaviors, support proactive wellness efforts and satisfy desires for intelligent indulgence.
Non-food champions secure $36.1M in year-one sales on average
In the non-food arena, average year-one dollar sales for the top 100 brands were $36.1 million. Several long-standing trends remain important, including professional results in the home, healthier and happier pets and sustainability, and the new launches across non-food aisles addressed these trends. But, the most powerful launches of the year took it a step further.
“Consumers want more results with less effort, ideally at a lower price point vs. professional services, and Pacesetter non-food manufacturers really delivered in 2012,” says Susan Viamari, editor of Times & Trends for IRI. “From health and beauty care to home and pet care, CPG manufacturers leveraged new ingredients and advancing technology to empower consumers in more ways than ever before.”
New products attain average of $50.4M in year-one sales in convenience stores
In the convenience store arena, average year-one sales across the top 20 2012 IRI New Product Pacesetters were $50.4 million.
“The power of trends around wellness and the quest for foods that support nutritional goals are immense,” says Levin. “The top-selling launches in the convenience-store channel really underscore this phenomenon. Even in the convenience store channel, where indulgence is often toward the top of consumers’ minds, healthier-for-you innovation is being well received.”
“The class of 2012 IRI New Product Pacesetters is remarkable for many reasons,” says Viamari. “These products are bringing consumers increased value at a time when value is more critical than it has been in recent history. They are doing this by harnessing many and varied ingredients and technologies to deliver products that do things better with less effort; taste better, with enhanced nutritional value; and bring excitement, without breaking the bank. These products are leading the CPG industry into tomorrow. And they are delivering growth for the manufacturers that bring them to market.”