CHICAGO & WASHINGTON -- IRI announced last year’s most successful consumer-packaged-goods launches in its 2015 New Product Pacesetters report, an industry-recognized benchmark analysis of exceptional first-year CPG sales success for newly launched products. Thousands of new brands hit retail shelves during 2015, with 54% of all new product launches hailing from the food and beverage aisles, while the remaining 46% came from the nonfood realm. The top-selling 200 new brands captured cumulative year-one sales of more than $6.5 billion across IRI’s multi-outlet geography.
“The key to launching a successful new product today is not only understanding your core and target shoppers but also how these shoppers view the CPG marketplace,” said Susan Viamari, vice president, Thought Leadership, IRI. “Their viewpoint is very different from manufacturers and retailers. Consumers think about satisfying needs in terms of eating occasions, drinking occasions and product usage occasions. CPGs need to recognize which CPG categories compete for each occasion. It varies by mind-set, daypart, channel and shopper, so the days of one-size-fits-all strategies are gone forever.”
“The good news is that technology and analytic know-how play a huge role in creating an understanding about market trends and consumers’ needs and wants, and how those factors impact the way consumers make purchase decisions,” added Larry Levin, executive vice president, Business Development, IRI. “CPG marketers must harness that knowledge to understand sources of volume and incrementality for each of their brands across usage occasions—in other words, know where your sales are coming from. Ultimately, marketers are looking to get the full pool of potential consumers to buy more, rather than just shifting dollars from one brand within the portfolio to another.”
Top Launches Capture Median $18.6 Million in First-Year Sales in Convenience Stores
In the convenience-store arena, median year-one sales across the top 10 IRI New Product Pacesetters were an astounding $18.6 million, IRI said, demonstrating the power behind consumers’ ongoing quests for uniquely indulgent experiences.
2015 New Product Pacesetters: Top 10 Convenience Store Brands ($ Millions)
| Product | Total Year-One Dollar Sales, Convenience Store Channel | |
|---|---|---|
| 1. | VUSE | $221.1 |
| 2. | Monster Energy Ultra Sunrise | $82.7 |
| 3. | MarkTen | $69.3 |
| 4. | Redd's Wicked Ales | $43.3 |
| 5. | Ruffles Deep Ridged | $26.5 |
| 6. | Jack Link's Small Batch | $18.9 |
| 7. | Juicy Fruit Starburst | $18.4 |
| 8. | Monster Energy Unleaded | $17.1 |
| 9. | Wrigley's 5 Ascent | $14.6 |
| 10. | Pillsbury Soft Baked Mini Cookies | $10.0 |
Source: IRI Market Advantage
Continued: Top food and Beverage Launches
“To be successful, marketers must have a clear, comprehensive and consistent understanding of their competitive set, despite rapidly changing market conditions and fickle consumer attitudes and behaviors,” concludes Viamari. “These insights will help CPGs address white space innovation opportunities that meet the needs of high-potential consumer segments. This knowledge will also support development of highly accurate sales forecasting and brand development programs that will minimize launch failure and maximize market potential.”
Food and Beverage Launches Capture $19.6 Million in Median Year-One Sales
For the top 100 food and beverage champions, median year-one dollar sales were $19.6 million, down from $22.9 million in 2014. These top-performing products provide much-needed indulgence and offer an experience that brings excitement into the kitchen.
2015 New Product Pacesetters: Top 10 Food and Beverage Brands ($ Millions)
| Product | Total Year-One Dollar Sales, Multi-Outlet | |
|---|---|---|
| 1. | McCafé | $172.7 |
| 2. | Oscar Mayer Deli Fresh | $146.2 |
| 3. | Dannon Oikos Triple Zero | $108.0 |
| 4. | fairlife | $87.1 |
| 5. | Yoplait Greek 100 Whips! | $83.6 |
| 6. | Chili's At Home | $78.9 |
| 7. | Simply Juice Drinks | $70.5 |
| 8. | Breyers Gelato Indulgences | $66.9 |
| 9. | Cobblestone Bread Co. | $60.2 |
| 10. | Cheerios Protein | $49.8 |
Source: IRI Market Advantage
Exciting and high-end attributes are found in the top-ranking products and are in line with what consumers are saying they want from new food products, IRI said. According to IRI’s 2016 New Product Survey, 29% want to indulge without paying restaurant prices; 24% want to add excitement to their daily diet; and 21% seek options that are truly new and different.
Consumers definitely want flavor excitement to spice up their daily diets, as well as healthier-for-you solutions. For instance, fairlife milk uses a new, patented filtration process that concentrates some of milk’s natural nutrients while filtering out lactose and reducing sugars. And loads of flavor is found in crossover brands from restaurants and other realms, such as Chili’s At Home frozen dinners and McCafé coffee.
Nonfood Champions Secure $26.5 Million in Median Year-One Sales
When it comes to non-food products, 20% of consumers actively seek new home care products that are good for the environment, and 17% look for beauty products that offer anti-aging benefits, according to survey results. This is an important lesson in new-product innovation, IRI said: Everyone has different needs, wants and priorities. And today’s shoppers want CPG solutions that recognize this fact. This is abundantly clear across the wide range of 100 top-performing nonfood brands, which had median year-one dollar sales of $26.5 million.
Top sellers include Tide Simply Clean and Fresh laundry detergent, Purina Beyond pet food and Sally Hansen Miracle Gel nail cosmetics.
2015 New Product Pacesetters: Top 10 Non-Food Brands ($ Millions)
| Product | Total Year-One Dollar Sales, Multi-Outlet | |
|---|---|---|
| 1. | Nexium | $270.6 |
| 2. | Air Wick Life Scents | $172.5 |
| 3. | Tide Simply Clean and Fresh | $167.5 |
| 4. | Always Discreet | $133.0 |
| 5. | Amopé Pedi Perfect | $128.1 |
| 6. | Purina Beyond | $108.0 |
| 7. | Sally Hansen Miracle Gel | $98.0 |
| 8. | Gillette Fusion ProGlide with FlexBall Technology | $86.6 |
| 9. | Gillette Venus Swirl | $74.1 |
| 10. | Glad OdorShield with Febreze Freshness & Gain | $70.4 |
Source: IRI Market Advantage
CPG innovators are helping consumers express their individuality by offering a variety of olfactory experiences. The largest olfactory launch of 2015 was Air Wick Life Scents, which fills the home with continuous, fresh fragrance for up to 60 days and also allows consumers to select their desired fragrance level. Unique and exciting scent experiences also can be found in the kitchen with Glad OdorShield with Febreze Freshness & Gain.
About the Report
The IRI “2015 New Product Pacesetters” report is available exclusively from IRI, the global leader in innovative solutions and services for consumer, retail and over-the-counter health care companies. The findings of this report were compiled based on insights from IRI’s New Product Innovation Practice’s powerful suite of analytical and decision-making tools as well as the 2016 IRI New Product Survey. Click here to download the full report.
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health-care organizations, retailers and media companies grow their businesses.
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