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New Product Pacesetters
Carving Out Growth in a Down Economy
MARCH 2011
03
Executive Summary
04
Introduction
05
Overview
06
Growth Opportunities
07
Food & Beverage
16
Non-Foods
24
Convenience Stores
25
Conclusions
27
Resources
1
New Product Pacesetters: Carving Out Growth in a Down Economy
Indulgence and Wellness: A 21st Century Way of Spending?
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.
Larry Levin
Executive Vice President/General Manager, Consumer Insights
SymphonyIRI Group
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
2
New Product Pacesetters: Carving Out Growth in a Down Economy
Executive Summary: Turning Insights Into Action
ACTION
INSIGHT

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

Brand extensions continue to represent the lion’s
share of new product launches despite a longstanding history of net new brands bringing
substantially larger year-one sales returns

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

Food and beverage innovation is keying in on homebased food rituals, and expanding the breadth and
depth of better-for-you assortment

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

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

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-foryou categories/brands
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
3
New Product Pacesetters: Carving Out Growth in a Down Economy
Introduction
New product innovation is the lifeblood of
These brands reflect a keen understanding
Opportunities available to innovative CPG
the CPG industry. New products breathe
of the consumer at a time when the only
manufacturers abound despite unstable
new life into core brands, and they bring
constant is change. They bring new
economic conditions and conservative
fresh news into the CPG environment.
technology and new ingredients to life in
consumer behaviors. To capitalize on that
But, bringing to market new products is not
many and varied ways to simplify and
success, manufacturers must act with
an easy task, even in the best of times.
excite, to strengthen and indulge.
speed, precision and determination. They
must be willing to take risks – calculated
Prolonged economic instability has served
And, perhaps equally as important, these
risks – based on an intimate knowledge of
to make this task even more difficult and
brands demonstrate that, even in difficult
evolving market and consumer trends and
daunting during the past several years.
times, taking risks can reap substantial
developing technologies.
Amazingly, some products have been able
rewards. Across food and beverages, for
to beat the odds and make a splash in the
instance, net-new innovation, new products
This report reveals the most successful
CPG world despite today’s less-than-ideal
coming to market without the support of
CPG product launches of 2010, and
market conditions.
established brand equity, returned an
provides insights into the secrets of their
average 57% higher year-one sales versus
success. These products provide best-in-
imitative launches.
class examples of how to beat new product
These products are SymphonyIRI’s 2010
New Product Pacesetters. They are truly
odds.
remarkable. Only about one-quarter of
And, across food and beverages and non-
products achieve the minimum $7.5 million
foods, brands such as Chobani Greek
required to achieve Pacesetter status.
yogurt and Jillian Michaels vitamins
underscore the fact that successful new
In 2010, the most successful product
launches don’t have to come from huge
launches drove to satisfy consumers’
CPG manufacturers.
health and wellness objectives, brought
SymphonyIRI New Product
Pacesetters Criteria
excitement to home-based eating and
drinking, and raised the bar on

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)
expectations around in-home health,
beauty and personal care.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
4
New Product Pacesetters: Carving Out Growth in a Down Economy
Overview
83%
903
916
796
833 859
957
949
936
659
74%
647
5% 4%
2006
2007
2008
Total Food & Beverage
2009
2010
<$7.5
Total Non-Foods
Source: SymphonyIRI New Product Profiler™
Food, Drug & Mass Channels (excluding Walmart)
*Across
Number of CPG New Product Introductions*
Brand Level
11%
7%
6% 5%
2% 1%
0% 0%
$7.5-$10 $10-$20 $20-$50 $50-$100 $100+
Total Food & Beverage
Total Non-Foods
Source: SymphonyIRI New Product Profiler™
Food, Drug & Mass Channels (excluding Walmart)
*Across
2010 Proportion of CPG New Products
by Year-One Sales* ($ Millions)
Just 3% of new products achieve
ease, non-foods launches continued to
Simultaneously, non-foods innovation has
blockbuster status, year-one sales of more
climb, outpacing food and beverage
become more targeted. Beauty and
than $50 million. The reality is, successful
launches for the first time in recent history.
personal care products targeted to specific
new product innovation is exceptionally
hair and skin types, product lines for men,
difficult, and a vast majority of new
A substantial slowdown occurred in 2009
and sensory-stimulating home and pet care
products don’t even reach $7.5 million in
across food and beverages, while the pace
are examples of targeted non-foods
sales during their first year.
of innovation across non-foods continued
innovation. Many such products are
to gain momentum. This trend continued
finding success.
Still, innovation is essential.
in 2010.
The net result of targeted innovation is
Even during a time of prolonged economic
From a dollar sales perspective, though,
often lower sales potential. Still, the
instability, one in five consumers indicates
new food and beverage launches
opportunity is huge and evolving
that she is always looking for new products
outperformed their non-foods counterparts.
technologies and ingredients will support
This is likely attributable to phenomenal
continued growth of targeted, even niche,
year-one sales results across a select few
products. In the end, the definition of
Innovation has slowed somewhat during
new food and beverage brands in 2010.
“success” may be redefined, and it will
the past several years, specifically in the
These brands will be explored on the
likely center around lower but more
food and beverage arena. In 2008, when
pages that follow.
targeted sales stories.
to
try1.
food and beverage innovation began to
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
1Source:
SymphonyIRI 2011 New Products Survey
5
New Product Pacesetters: Carving Out Growth in a Down Economy
Growth Opportunities: New Brands v Brand Extensions
92%
88%
$42.4
$38.9
$32.9
$29.5 $26.8
$26.4
$21.7
$19.6
Food & Beverage
Non-Foods
Source: SymphonyIRI New Product Profiler™
Food, Drug & Mass Channels (excluding Walmart)
*Across
Food &
Non-Foods
Beverage
2002-2009
Food &
Beverage
Non-Foods
2010
Source: SymphonyIRI New Product Profiler™
Food, Drug & Mass Channels (excluding Walmart)
*Across
2010 % of New Product Pacesetters*
That Are Brand Extensions
New Brands v Brand Extensions
Average Year-One Sales ($ Millions)
Detailed in SymphonyIRI’s recent 15 Years
that brand trust heavily influences brand
happened in the food and beverage arena
of New Product Pacesetters report, a
decisions.
and in non-foods. The top two new brand
comprehensive analysis of the most
launches out-performed their closest New
successful CPG product launches over the
New food and beverage brands have
Product Pacesetter rivals by a wide
past 15 years, history’s innovators have
historically out-performed brand
margin.
frequently chosen brand extensions over
extensions. And, despite an unstable
new brand introductions as a means of
economy and extremely high levels of
In the coming year, CPG manufacturers
bringing new products to market.
consumer caution and frugality, this
will need to make difficult choices vis-à-vis
certainly remains true today. In 2010, in
new product development. The economy
It’s no surprise. After all, brand extensions
fact, new launches reaped much higher
is still very unstable. Consumers are quite
are a relatively quick and inexpensive way
than average year-one returns.
cautious, and many expect their financial
to add excitement and longevity to core
situation to deteriorate as the year
brands. Brand extensions accounted for
In 2010, new food and beverage brand
progresses. Consumer appetite for new
88% of new food and beverage and 92% of
introductions outperformed brand
products is not strong, due to fear of
non-foods products introduced in 2010.
extensions by 61%. Across non-foods
“wasting” money on an unknown
categories, the gap is even more
newcomer that disappoints.
SymphonyIRI’s recent Brand and Retailer
substantial, at 79%.
Loyalty survey revealed that consumer
In difficult economic times, the advantage
brand decisions are impacted by whether
The sizable gap in year-one success
of coming to market with established brand
or not there is an established trust of the
between 2010 new brands versus brand
equity is substantial. But, the potential
brand. In fact, 52% of consumers indicate
extensions is largely attributable to a
reward of winning with a new brand holds
handful of hard-hitting launches. It
great allure.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
6
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Top 10 Pacesetters
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.
1. POWERADE ION4
2. Chobani Greek Yogurt
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
$149.4
Yogurt
3. Wonderful Pistachios
$114.1
Snack Nuts/Seeds/Corn Nuts
4. glacéau vitaminwater zero
$110.3
Bottled Water
5. Nature’s Pride
Fresh Bread & Rolls
6. Trop50
Rfg Juices/Drinks
POWERADE ION4 is aimed at helping
$190.5
Shelf Stable Sports Drinks
7. Thomas’ Better Start
English Muffins
8. Green Mountain Coffee K-Cups
Coffee
9. Budweiser Select 55
Beer/Ale/Alcoholic Cider
10. Trident Layers
Gum
$80.8
$74.4
$74.2
$62.1
$59.9
$53.9
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
“lets you act as the peacemaker in the epic
battle between taste and nutrition,” with an
array of added vitamins and no calories.
2010 New Product Pacesetters: Top 10 Food & Beverage Brands
Year-One Dollar Sales ($ Mil) Across Food, Drug and Mass
(Excluding Walmart)
Trop50 and Budweiser Select 55 bring to
and sales of all natural foods grew 1.1%
low in fat. It’s all natural, and preservative
market the flavor of a “full calorie” product
during 2010, outpacing average CPG
and hormone free. Live yogurt cultures
offering with significantly less calories. The
industry growth by a wide margin. Growth
and bone-building calcium bring added
marketers of these products understand
was driven, in part, by increased product
nutrition. And, it’s a quick and easy for in-
that many consumers are not willing to
availability and marketing support. Three of
home and on-the-go consumption.
sacrifice flavor to save on calories, a
this year’s top ten new food and beverage
critical mindset that is at the center of
releases are all-natural products.
The success of Chobani and Wonderful
also reinforce a hugely important message
these products’ marketing campaigns.
Wonderful Pistachios provides all-natural
for CPG manufacturers: it doesn’t take a
Trident is bringing flavor and texture
powerful, flavorful crunch. Nature’s Pride
giant to attain new product success.
excitement to the sugarless gum category
bread nourishes the body with only the
with Trident Layers. This new product is
purest of ingredients.
The power and diversity of trends offering
innovation opportunity across food and
marketed as a “gumwich,” a soft fruit
flavored center layer sandwiched between
Chobani Greek yogurt is “nothing but
beverages is amazing. The pages that
two layers of fruit flavored gum.
good.” The brand single-handedly
follow provide greater detail on these
addresses a range of today’s most
trends and the impact of innovation in
Consumers’ passion for all-natural foods
pressing food-related desires in a single
these important areas.
trigged an exceptionally strong return,
versatile product. It’s high in protein, and
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
7
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Category Trends
Other Foods *
10%
Candy & Gum
27%
Meal Makers / Light Meals /
Appetizers
Dinner Solutions
6%
9%
11%
15%
16%
Salty Snacks
22%
17%
Breakfast Solutions
9%
*
Other :
Avg.
2002-2009
Sweet Snacks
13%
Desserts
10%
Sauces/Spreads/ Dressings/ 3%
Dips/Condiments
2010
3%
5%
2%
34%
23%
Average
2002-2009
2010
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Most Active Food New Product Pacesetters
Product Usage Group as % Total Food Pacesetter Dollars
While overall food and beverage innovation
has covered this trend in great detail
smooth and creamy yogurt marketed for
is slightly lower this year versus last year
throughout the course of the economic
“whenever, wherever consumption.”
and historical trends, some product usage
downturn.
groups found great success innovating in
2010.
The most successful salty snacks of 2010
The yogurt category is a major contributor
represent a range of snack segments,
to the strong performance by the breakfast
including meat snacks, crackers, chips and
For instance, breakfast solutions
solutions consumption grouping. Seven of
nuts. Detailed in SymphonyIRI’s 2011
represented one-third of Pacesetter dollars
the 32 breakfast solutions Pacesetters are
State of the Snack Industry report, these
within the food arena in 2010, substantially
yogurts, bringing to market a range of new
products capitalize on growth opportunities
higher versus a historical trend of 23%.
flavors and forms, including Greek yogurts.
in satiety, health and wellness, value and
Similarly, salty snacks innovation
sustainability.
accounted for nearly 25% of Pacesetter
Danimals Crush Cups, for instance, come
dollars within the food arena, more than
in a crushable cup, providing a spoonless
Across food categories, CPG
doubling the historical trend of 9%.
on-the-go snacking solution targeted at
manufacturers are finding success
young consumers. And, for the adult
innovating around home-based food
These successes are supported by an
market, new on-the-go yogurt successes
rituals.
intense consumer demand for at-home and
includes Dannon’s Activia yogurt drink, a
from-home meal solutions. SymphonyIRI
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
8
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Category Trends
22%
Beer, Wine & Spirits
13%
14%
8%
Coffee & Teas
32%
Carbonated, Sports, & Energy
Drinks
45%
Juices, Milks & Waters
41%
26%
Average
2002-2009
2010
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Most Active Beverage New Product Pacesetters
Product Usage Group as % Total Beverage Pacesetter Dollars
On average during the past eight years,
Juices and waters launches in 2010 also
launch of 2010 was Kool-Aid Fun Fizz,
beverage categories have a fairly strong
catered to consumers’ wellness goals,
fruit-flavored tablets that “fizz” when
trend of successful innovation. In 2010,
evidenced by top-selling glacéau
combined with water.
this trend continued, but shifts occurred
vitaminwater zero, mentioned earlier, as
across product usage groups.
well as products such as Apple & Eve
Three big-selling coffee and tea launches
Fruitables, a fruit and vegetable juice
helped to drive the segment’s share of
The most sizable shift is evidenced across
beverage targeting the youth market, and
Pacesetter beverage product sales
the juices, milks and waters segment, with
Yoplait Smoothy, a quick and easy frozen
northward by six points in 2010. Single
healthier-for-you milks, in particular,
yogurt drink.
cup coffees by Newman’s Own and Green
making a big splash. Four of the 12 new
Mountain contributed heavily to this
launches in the past year were healthier-
But, innovation also found success in
growth, benefitting not only from home-
for-you milks. The top selling new milk
bringing to market at-home indulgences.
based indulgence, but also the launch of
brand, Silk Almond Milk, touts the
The most sizable indulgent beverage
single cup coffee brewers, such as Keurig.
goodness of almonds to treat your body to
perfectly delicious nutrition, just as Nature
intended.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
9
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Consumer Benefit Trends
Variety--Flavors or Recipes
75%
New or Unique Recipe
73%
Distinctive/New Flavor
39%
New Designs, Patterns, Look
38%
Convenience, Ready-to-Serve
33%
Improved/Superior Process
33%
More Natural, Organic
30%
High Fiber or Whole Grain
27%
Added Vitamins, Nutrition
27%
New Technology
25%
Bite-size, Hand Held
25%
Less, Reduced Calories, Lo-cal
25%
Different Texture
Taste & Variety
Health & Wellness
Convenience
22%
Improved Flavor, Taste
17%
Less, Reduced Fat or Fat-Free
17%
Other
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
2010 Food & Beverage New Product Pacesetters: Top 15 Benefits
% of Total Pacesetters Offering Benefit
A great deal of food and beverage
From natural products to organics, and
years. In 2010, the average pantry was
innovation is centered on bringing healthier
from added “good” ingredients to reduced
home to 369 SKUs, down sharply from an
eating and drinking solutions to the
“not so good” ingredients, innovation
average of 404 in 20071.
marketplace. In a prolonged economic
centered on raising the bar on healthier
downturn, it has become the nucleus of
eating abounds.
The convergence of pantry shrinkage and
variety innovation trends underscore the
many consumers’ money saving strategies.
The mindset is: ”If I eat healthier, I am
Variety has been a key focus of food and
urgency of ensuring that products that are
healthier. If I am healthier, I will not spend
beverage innovation during the past
brought to market have maximum
as much on medical expenses.”
several years. CPG maintained this focus
relevancy to ensure ideal placement and
on more variety in 2010. Last year, three-
maximum impact.
Even as the economy has made positive
quarters of successful food and beverage
strides, the focus on healthy eating
launches expanded available variety.
Key benefits are explored in greater detail
on the next several pages of this report.
remains quite strong. According to
SymphonyIRI’s 2011 Consumer Snacking
Meanwhile, pantry sizes across America
Study, 71% of consumers are trying to eat
have been shrinking in the past couple of
healthier these days.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
1Source:
SymphonyIRI Economic Shopping Behavior Longitudinal Database™, SymphonyIRI Consumer Network™
10
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Consumer Benefits - Taste & Variety
75%
73%
61%
46%
39%
2010
1997-2010
35%
22%
17%
12%
Flavors or
Recipes
New/Unique
Recipe
8%
Distinctive/New Different Texture
Flavor
Improved
Flavor/Taste
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Percent of Food & Beverage New Product Pacesetters
Offering Taste & Variety Benefits vs Historical Trend
Variety innovation was very hot across
The old became new again with the launch
Top food and beverage Pacesetters
food and beverage categories in 2010.
of the Pepsi Throwback line, including
Chobani and Trident Layers, detailed
New recipes escalated sharply in 2010,
Pepsi Throwback and Mountain Dew
earlier in this report, are examples of new
bringing fun and excitement to everyday
Throwback. These products have been a
textures in the grocery aisles.
eating occasions.
smashing success, made with real sugar,
iconic packaging and the taste that
Another yogurt, YoCrunch 100 Calorie
For instance, Stouffer’s Easy Express
captures the spirit of the 1970s and 1980s.
Cup, also achieved New Product
Skillets target the busy family looking for a
The idea behind the launches was to
Pacesetter status in 2010. Consumers
quick and nutritious way to solve the daily
appeal to consumers’ nostalgic side and
were drawn to the wholesome benefits of
dinnertime dilemma. This line offers a
capture their “taste for the past.”
smooth and crunchy yogurt packaged in a
manner that takes the guesswork out of
“wide range of delicious, wholesome meals
that let you feed your family in 20 minutes
Innovation around texture also picked up in
or less.”
2010. For the year, nearly one-quarter of
calorie counting.
new food innovation brought different
For snackers, Doritos Late Night tortilla
textures to the marketplace, ranging from
chips offer “great taste, great crunch and
thick and creamy to crispy and crunchy.
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.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
11
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Consumer Benefits - Health & Wellness
Discussed earlier in this report, food and
beverage innovation around health and
30%
Natural/Organic
16%
wellness has picked up notably in the past
27%
Added Vitamins, Nutrition
year.
19%
27%
High Fiber/Whole Grain
10%
In 2010, 30% of successful new food and
25%
Reduced Calorie
beverage launches offered natural and/or
organic ingredients, while one-quarter
17%
25%
Lower Fat/Fat Free
17%
12%
brought to market added nutrients or more
Energy/Protein
fiber/whole grains.
Antioxidants
Several of the top 10 food and beverage
Pacesetters are all natural/organic,
No Trans Fat
including Chobani, Wonderful Pistachios,
Low Salt/Sodium
and Nature’s Pride bread. Certainly, drive
6%
11%
2010
1997-2010
4%
10%
4%
6%
1%
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.
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Percent of Food & Beverage New Product Pacesetters
Offering Health & Wellness Benefits vs Historical Trend
Equally popular, though, is the reduction or
New ingredients are emerging on a
removal of less desirable attributes,
seemingly daily basis, and technology is
namely calories, fat and sodium.
quickly evolving. Just one example of a
quickly evolving ingredient trend relates to
Three of the top 10 new food and beverage
gluten. This trend is outlined in more detail
launches tout less calories: Trop50 orange
in the “Food & Beverage - Trends to
juice, Budweiser Select 55 and Yoplait
Watch” section of this report.
Delights.
Together, technology and ingredient
Progresso High Fiber Ready-to-Serve
advancements hold enormous potential for
soups conveniently provide desirable
U.S. consumers’ wellness goals. CPG
attributes, namely fiber, in a reduced
manufacturers must continue to study and
calorie, low fat soup.
experiment with these factors, finding new
and different ways to bring health and
McCormick and Morton are each bringing
wellness to the next level.
more flavor to foods while reducing
sodium, with successful launches of
seasoning products.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
12
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Consumer Benefits - Convenience
Convenience is a long-standing and wellentrenched trend in the CPG industry. It
has truly become an expectation within the
industry, often playing a secondary role to
33%
2010
26%
newer and/or evolving expectations.
1997-2010
25%
The demand for convenience has been
12%
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.
Extra Convenience, Added
Portability, Ready-to-Use
Bite-Size, Hand-Held,
Snack Form
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 handheld 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
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Percent of Food & Beverage New Product Pacesetters
Offering Convenience Benefits vs Historical Trend
indulgent sectors of the marketplace, with
and evening snack and meal occasions. In
Del Monte Fruit Chillers and Dove Bar
a convenient, hand-held form, Hot Pocket’s
Miniatures, respectively.
SideShots are mini soft-baked sandwiches
that are microwave ready in about two
The quest for convenience crosses
minutes. And DIGIORNO Flatbread Melts
dayparts, and innovation does, too. For
deliver fresh-baked, restaurant taste in
instance, top-10 performer Thomas’ Better
minutes from the microwave.
Start English Muffins raised the nutrition
bar on portable breakfast solutions. These
The economy is slowly emerging from
muffins offered more fiber with less
recessionary conditions. But, consumers
calories, no high fructose corn syrup and
remain exceptionally cautious, with many
no trans fat, yet were still “Thomas’
continuing to struggle to afford weekly
Delicious.” In January 2011, this line was
groceries. A predicted escalation of food
replaced by Thomas’ Hearty Grains, further
and beverage prices in 2011 will add to
enhancing the brand’s wellness profile.
apprehension, supporting a continuation of
home-based food rituals in the coming
Hot Pocket SideShots and DIGIORNO
year.
Flatbread Melts are hand-held entrees that
add to on-the-go options for the afternoon
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
13
New Product Pacesetters: Carving Out Growth in a Down Economy
Food & Beverage: Rising Stars
Dannon Danimals Coolision
Rfg Yogurt
Oscar Mayer Selects
Frankfurters
Dove Promises
Chocolate Candy
PF Chang’s Home Menu
Fz Dinners/Entrees
M&Ms Milk Chocolate Pretzel
Chocolate Candy
Stouffer’s Lean Cuisine Market Cartons
Fz Dinners/Entrees
Marie Callendar’s Fresh Flavor Steamers
Fz Dinners/Entrees
Thomas’ Bagel Thins
Bagels/Bialys
Mountain Dew White Out
Carbonated Beverages
Yoplait Greek
Yogurt
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
2010
New Product Pacesetters Rising Stars
Projected Top 10 Food & Beverage Brands
(Alphabetical Order)
SymphonyIRI’s Rising Stars provide a
performing quite well in its first year on the
more for gourmet snacks. Yoplait Greek
sneak peek at the CPG world of tomorrow.
market, though the brand did not make the
yogurt, mentioned earlier, and Dove
These products have been in the
ranks of the top 10 Rising Stars for this
Promises each cater to this marketplace.
marketplace for less than one year, but
analysis.
Trends around convenience, wellness and
they are achieving strong sales results
because they are resonating with the ever-
Also quick and easy, PF Chang’s Home
gourmet products are likely to continue to
evolving consumer.
Menu and Marie Callender’s Flavor Fresh
intensify as technology evolves and the
Steamers make restaurant quality and/or
marketplace ages. Food and beverage
This year’s Rising Stars bring wellness and
premium flavor dinners readily attainable in
manufacturers must continue to invest to
indulgence, tied with a pretty bow of
the home and at a more affordable price
understand how these trends are evolving,
convenience and gourmet appeal. Many of
point.
and how new attributes and technologies
can raise the bar on innovation. This
the products on this year’s Rising Stars list
offer more than one of these hard-hitting
Despite economic conditions and
knowledge is and will continue to be
benefits.
conservative consumer mindsets, premium
invaluable in an increasingly competitive
product launches continue to hold growth
marketplace.
Convenient, healthy and indulgent, Yoplait
opportunity. For instance, SymphonyIRI’s
Greek yogurt has twice the protein of
2011 Consumer Snacking Study reveals
“regular” yogurt with a thick and creamy
that 19% of consumers are willing to pay
texture. Dannon GREEK yogurt is also
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
14
New Product Pacesetters: Carving Out Growth in a Down Economy
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:
Experiential Eating
Sustainability
Wellness goals notwithstanding,
During the past several years, players
consumers today view eating and drinking
across the CPG industry have invested
as an opportunity for fun and excitement.
time, money and effort into reducing their
Bold new flavors, forms and textures bring
environmental footprint. Facilities have
added pleasure to the dining experience.
been redesigned to use more natural
resources, packaging has been
Self-Driven Health & Wellness
SymphonyIRI’s 15 Years of New Product
reevaluated for opportunities to reduce/re-
Early in the recession, consumers put a
Pacesetters report details the power that
use/recycle, fleets have been retrofitted
21st
can be found in this type of innovation.
with more efficient and/or hybrid engines,
ounce of prevention is worth a pound of
From restaurant-quality meals to
and products have been reformulated to
cure.” Eating to prevent and manage
unexpected flavor and/or texture
contain more sustainable/natural/organic
common ailments became very wide
combinations, eating with a twist has really
ingredients. The CPG industry is making a
spread.
caught on.
difference in our world, and consumers are
Century spin on a very old adage, “An
taking notice.
As discussed in this and last year’s New
In the coming months, at-home and from-
Product Pacesetters reports, innovation
home eating will remain pervasive. It is a
One in three consumers indicate that,
around health and wellness is quite
means of reducing expenditures. But,
when making brand decisions, whether or
prevalent these days. These new products
consumers do not want to give up
not a product is environmentally
are being enthusiastically received, as they
indulgence or excitement along the way.
friendly/ethically produced is important to
are helping consumers to achieve their
CPG manufacturers have the opportunity
them. Despite persistent economic
wellness goals.
to bring indulgence and excitement into the
difficulties, this statistic has remained
home, building share, margin and goodwill
unchanged during the past year.
Demand for healthier-for-you food and
beverage options will continue to
along the way.
Gluten-Free
proliferate in the next several years, even
In the coming months and years, CPG
marketers should continue to focus on
well after the economy has regained stable
Gluten-free, once a small niche of the U.S.
sustainability as an opportunity. It’s an
footing. And, as technology evolves and
food and beverage market, has exploded
opportunity to help Mother Earth, and to
new ingredients become available, CPG
during the past several years. Packaged
build/fortify consumer relationships.
manufacturers will continue to invest
Facts projects that U.S. retail sales of
significant amounts of time and money in
gluten-free products will reach more than
bringing to market food and beverage
$5 billion by 2015, driven by a sharp
brands that serve this very important
increase in prevalence of celiac disease
market.
and a range of intolerances to gluten.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
1Packaged
Facts, “2011 Gluten Free Foods & Beverages Report”
15
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Top 10 Pacesetters
The most successful non-foods product
launches of 2010 tell a story of consumers’
1. Crest 3D White
quest for the fountain of youth and
2. Prevacid 24HR
indulgence tempered by a difficult
Gastrointestinal Tablets
economy. These products illustrate
3. Plan B One-Step
consumers’ adoption of the “spa at home.”
4. Next Choice
$154.1
Toothpaste/Mouthwash
$127.0
$78.3
Contraceptives
$78.0
Contraceptives
This isn’t just an ordinary spa, though.
5. Huggies Pull-Ups Learning Designs
Today’s consumers are looking to see their
6. Dove Men+Care
at-home spa treatments produce results
Soap/Shaving Lotion/Men’s Frag./Deodorant
traditionally achieved only in professional
7. Olay Professional Pro-X
spas.
8. Scope Outlast System
Diapers
$66.8
$54.2
$49.4
Skin Care
Mouthwash/Toothpaste/Toothbrush/Dent. Acc.
$46.8
In 2010, beauty care products in the Olay
9. Dove Body Wash with NutriumMoisture
Soap
$40.5
Professional Pro-X line came to market
10. LISTERINE/REACH TOTAL CARE
with this powerful marketing story. It’s a
Mouthwash/Toothbrush/Dent. Acc.
$39.8
story that resonated soundly with
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
2010 New Product Pacesetters: Top 10 Non-Foods
Year-One Dollar Sales ($ Mil) Across Food, Drug and Mass
(Excluding Walmart)
consumers, evidenced by shoppers
opening up their wallets and spending on
these premium-tiered product offerings—
no small achievement in such a
In similar fashion, consumers are now
Consumers can also avoid a visit to the
conservative marketplace, and a grand
achieving faster and better results in the
doctor with two other top-10 non-foods
achievement for marketers looking to drive
laundry room with Tide Stain Release in-
Pacesetters products: Plan B One-Step
purchase behavior and margin during a
wash booster. This new product line works
and Next Choice. Each of these products
period of prolonged economic difficulty.
as a pre-treater or in-wash booster to help
is home-based emergency contraception in
remove tough stains the first time.
pill form. They offer a convenient, simple
The Crest 3D White collection does for the
and discrete solution to a very personal
oral care department what Olay
Novartis armed consumers with a new,
Professional Pro-X and does for beauty
more powerful way to deal with painful
care. It raises self-administered at-home
heartburn with the Rx-to-OTC switch of
care to a new level. The product line was
Prevacid 24HR. Once again, the success
created to bring consumers a single
of this product is the ability to achieve
system that works together to whiten, clean
results normally reserved for professional
and protect teeth, without the cost of a
care - in this case, a doctor’s prescription,
dental visit. And, the line was recently
in an at-home, do-it-yourself treatment
expanded to include an enamel renewal
option.
toothpaste and 2-hour whitening
situation.
strips1.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
1Drug
Store News, March 3, 2011
16
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Category Trends
8%
Other Non-Foods *
17%
6%
Home Care – Detergents, Cleaners
8%
11%
Pet Care
6%
Health Care
16%
Beauty Care - Hair, Cosmetics,
Fragrances
Personal / Hygiene Care
*
Other :
19%
Avg.
2002-2009
Baby Care
Paper, Plastics, Foils
Air Fresheners/Candles
General Merch
7%
6%
2%
2%
2010
4%
0%
3%
1%
22%
19%
35%
31%
Average
2002-2009
2010
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Most Active Non-Foods New Product Pacesetters
Number of Pacesetters (Product Usage Group)
Consumers continue on their quest to look
professional quality results into the hands
products that bring the tastes, aromas and
and feel good despite difficult economic
of consumers. It has been made possible
textures of home-cooked pet owner meals
conditions. In part due to economic and
by the near-constant discovery of new
into cats’ dining experience. Dog foods
personal financial conditions, though, that
ingredients/ingredient combinations and
have similar momentum, with six New
desire now comes with an added twist–
advances in technology.
Product Pacesetter brands.
Detailed earlier in this report, Crest 3D and
Other areas of non-foods innovation
Innovation trends across non-foods
Olay Professional Pro-X bring these
slowed slightly in 2010, but the focus
categories clearly support these very
results. But, the list goes on. For the year,
remains the same. CPG marketers are
important trends. Innovation across
29% of health, beauty and personal care
working to bring to market products that
health, beauty and personal care
innovation brought professional results
make day-to-day experiences easier and
accounted for three-quarters of non-foods
without the professional price tag.
more effective.
looking and feeling good on a budget.
innovation dollars in 2010, a sharp
increase versus historical trends.
Gourmet pet food innovation gained steam
in 2010. Three Friskies cat food brands
Perhaps the most pervasive trend across
achieved Pacesetter status in 2010, with
these departments is innovation that brings
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
17
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Consumer Benefit Trends
Variety
80%
Expanded/ Improved Effectiveness
76%
New Technology
73%
New Design/Pattern/Look
60%
Improved/Superior Process
52%
New or Unique Formula
31%
Added Convenience/Portability
28%
More Natural, Organic
19%
Enhanced Moisturizing
18%
Added Vitamins/Nutrients
14%
Aroma Therapy, Theraputic
11%
Known Brand/New Category
ULTRA, Concentrated Effectiveness
New Use/Approach/Application
Performance
8%
Health & Wellness
4%
Variety
Convenience
2%
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
2010 Non-Foods New Product Pacesetters: Top 15 Benefits
% of Total Pacesetters Offering Benefit
While 80% of non-foods launches brought
About one in five 2010 launches offered
Gillette’s Venus Tropical Disposable razors
more variety into the marketplace, the big
more natural and/or organic ingredients,
have a no-slip handle that makes smooth
story in non-foods innovation is about
and 14% added vitamins and nutrients. To
shaving easier. And L’Oreal’s Excellence-
effectiveness. It’s a story about completing
be explored later in this report, these
to-Go hair color delivers rich color and
everyday tasks with less effort, and still
product attributes are increasingly being
stronger-feeling hair in just 10 minutes.
achieving better results.
added across a number of non-foods
categories and CPG departments.
From home care to laundry care, and
The benefits that are driving non-foods
success will be explored further on the
beauty care to healthcare, technology is
Convenience remains an important
making it possible and CPG manufacturers
characteristic of successful non-foods
are making it happen. Three-quarters of
products, touted across 28% of successful
2010 non-foods Pacesetters bring new
new brands in 2010. For instance, the
technologies to the non-foods arena.
Bounce Fabric Dryer Bar remembers the
following pages of this report.
freshness so you don’t have to.
Manufacturers of non-foods are also
intently focused on supporting consumers’
wellness goals.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
18
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Consumer Benefits - Variety
80%
2010
1997-2010
60%
50%
New or Unique Varieties
46%
New Design/Pattern/Look
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Percent of Non-Foods New Product Pacesetters
Offering Variety Benefits vs Historical Trend
Variety is exploding across non-foods new
The Febreze Home Collection is a line of
Consumers looking to pamper their pets
product launches. In 2010, 80% of new
air fresheners in inspirational designs and
are turning to new pet food launches to do
non-foods brands brought new variety to
unique scents that bring premium home
so. Purina’s Chef Michael’s lines of dry
consumers, a significant increase versus
fragrance with style.
and wet dog food are chicken, beef, turkey
or pork based meals with real vegetable
historical trends.
The eye of the beholder has more to
garnishes, helping make meal times
This new assortment of products stretch
appreciate these days, thanks to new
unforgettable - at least for the pet owner.
across non-foods departments, and bring
products that simplify and enhance beauty
consumers an array of benefits, from
and personal care processes.
celebrate, Fancy Feast Appetizers will
aroma to more zip, and everything in
between.
And, because anytime is the perfect time to
L’Oreal eye cosmetic lines, including
whet a cat’s appetite without fillers or by-
Extra-Volume Collagen and Telescopic
products.
Purex Complete 3-in-1 laundry sheets, for
Explosion are specially formulated to build
instance, combine detergent, fabric
volume and length and intensity,
softener and anti-static into a single sheet.
respectively.
With 10X concentrated detergents and
heat-activated softeners and static guards:
And, Garnier HerbaShine utilizes bamboo
It’s Laundry. Simplified.
extract to improve the condition of hair by
fortifying the cuticle while wrapping it in
radiant, shiny color.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
19
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Consumer Benefits - Wellness
2010
1997-2010
19%
18%
12%
Enhanced Moisturizing
11%
14%
Aroma Therapy,
Therapeutic
11%
8%
8%
Added Nutrients
More Natural, Organic
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Percent of Non-Foods New Product Pacesetters
Offering Health & Wellness Benefits vs Historical Trend
In non-foods, wellness attributes fall into
Huggies Pure & Natural, for instance, has
Products with added nutrients or improved
several broad categories, each of which
an organic cotton outside, and the inner
moisturizing power also gained steam in
showed an uptick in innovation during the
lining contains renewable materials.
2010. In some instances, the brands
past year.
Hypoallergenic materials and Leak Lock®
brought both. St. Ives Fresh Skin is one
protection add appeal for parents looking
example of this successful combination.
The largest jump is evidenced across
for comfort and reassurance when
natural and organic related attributes.
purchasing diapers for their baby.
Across grocery, drug and mass
Another example is Nivea “Touch of” body
wash line, including Touch of Happiness,
merchandise channels, sales of natural
For adults looking for a fresh, clean face,
and Touch of Honeydew, which hydrates
and organic non-edibles grew 17% and
St. Ives Fresh Skin uses “ingredients you
skin while cleaning with Hydro IQ
7%, respectively.
know,” such as apricots, minerals and
technology, and simultaneously delivers
olives, naturally revealing fresh, glowing
other pampering sensations and scents
skin.
with innovative combinations of natural
Nearly 20% of successful new launches
across non-foods categories, touted
ingredients.
natural and/or organic attributes,
supporting this growth and consumers’
growing demand for these types of
solutions.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
20
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Consumer Benefits - Performance
2010
76%
1997-2010
73%
66%
58%
52%
31%
27%
Expanded Effectiveness
New Technology
Improved Process
25%
New Formula
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
Percent of Non-Foods New Product Pacesetters
Offering Performance Benefits vs Historical Trend
Just over half of new non-foods launches
Sure deodorant now comes specially
example of a completely redesigned
in 2010 take a new approach or bring an
formulated for men, and for women. The
approach to laundry. One sheet handles
improved process to their category, often
men’s products offer the maximum level of
each step in the laundering process, from
with the view of a very targeted user in
active ingredients allowed without a
washing, to softening and preventing static.
mind. Up from one-quarter in 2009, just
prescription, and masculine fragrance.
over half of non-food launches in 2010
The women’s line is formulated to be easy
Technology is evolving at an amazing
offer new and/or enhanced process
on the skin, with vitamins and aloe vera,
pace. It is occurring across all CPG
benefits.
but tough on perspiration and odor.
departments and categories, and outside
the realm of CPG. Marketers must stay on
Several brands are reinventing the oral
From Nexxus comes customized hair care,
top of changing technology, and constantly
care process. In addition to Crest 3D
marketed under the Nexxus Dualiste line
evaluate the feasibility of adapting these
White, mentioned earlier in this report, the
name. These shampoos and conditioners
advances for use in their own categories
Scope Outlast product line includes
will protect hair color while adding volume,
and brands. These advances will be the
toothpaste, mouthwash and floss,
adding hydration or preventing breakage.
foundation of the CPG world of tomorrow.
spanning several steps of the daily mouth
care ritual. Similarly, the Listerine/Reach
Not all new products are highly targeted,
Total Care line combines two separate
though. On a broader scale and
brands into a single line that covers
mentioned earlier in this report, for
multiple steps in the mouth care process.
instance, Purex Complete 3-in-1 is an
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
21
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Rising Stars
Charmin Sensitive
Toilet Tissue
Pampers Dry Max
Diapers
Ensure Immune Balance
Weight Control/Nutrition Liquid/Powder
Purina Dog Chow Healthy Life Nutrition
Dog Food
Gillettte Fusion ProGlide
Razors
Schick Hydro
Razors
Maybelline Volum’ Express the FALSIES
Mascara
Tide plus Febreze Freshness SPORT
Laundry Detergent
Nicorette Anti-Smoking Tablets
Anti-Smoking Products
U by Kotex
Sanitary Napkins/Tampons
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
2010
New Product Pacesetters Rising Stars
Projected Top 10 Non-Food Brands
(Alphabetical Order)
The non-foods arena’s 2010 Rising Stars
of an indulgence and less of a chore. Men
More simply, Charmin Sensitive is toilet
illustrate a continuation of trends
are very receptive of the concept.
tissue with added ingredients to enhance
softness and pamper the skin. And
evidenced across last year’s up-andcoming products. From pet care to
Several of this year’s non-foods Rising
Pampers Dry Max is 20% thinner, yet
personal care, high-end innovation is
Stars aim to make personal situations
provides two times the dryness versus a
making day-to-day experiences easier and
more comfortable.
competing product.
For instance, in addition to new
Easier to use with more effective results -
technologies designed to provide
technology is making it possible. CPG
The push to improve men’s shaving
enhanced product performance, media
manufacturers are bringing the
experience continues with two successful
around the U by Kotex launch has been
technologies to consumers in the form of a
new razors: Gillette’s Fusion ProGlide and
huge. Marketers behind the launch are
wide range of CPG products. It is a trend
Schick’s Hydro. A closer shave, less
using social media aimed at creating buzz
that will continue in the foreseeable future.
pulling and skin irritation, a more
and breaking the cycle of embarrassment
comfortable shaving experience - the
and confusion that is historically
technologies differ, but the end goal is the
associated with menstrual periods.
more effective. In many instances, it is
providing indulgence, too.
same - make the shaving experience more
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
22
New Product Pacesetters: Carving Out Growth in a Down Economy
Non-Foods: Trends to Watch
In the next several years, innovation in the
right. Baby Boomers are aging;
non-food arena will be influenced by a
consumers want to look and feel good
continuation of a number of trends
regardless of their personal financial
illustrated throughout this report. Some of
situation. The future of non-foods CPG will
those factors are the same as those seen
be marked by products that bring the
in the food and beverage arena, and some
power of professional treatments into the
are unique to non-foods.
homes and hands of consumers.
Sustainability
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”
Efficacy
Perhaps the most pervasive trend in the
Related to “going pro” trends is the drive to
non-foods arena is innovation around
bring added efficacy to innovation across
products that bring professional quality
non-foods departments. From health and
results into the hands of consumers. It’s a
beauty care to home and pet care,
trend that has been bolstered by
technology is opening the door to
consumers’ self-reliant approach to health
development of products that make it
and beauty care and their quest for the
quicker and easier to complete everyday
fountain of youth. It has been made
tasks and achieve better results along the
possible by the near-constant discovery of
way.
new ingredients/ingredient combinations
and advances in technology.
The benefits of being first to market with
the “next big thing” are huge, but
These products are thriving because their
manufacturers that mimic those
results are real, the processes are
revolutionary products are also finding
convenient and private, and the price is
success.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
23
New Product Pacesetters: Carving Out Growth in a Down Economy
Convenience Stores: Top 10 Pacesetters
The convenience channel stands on its
own when it comes to top-selling new
1. POWERADE ION4
product launches. A destination location
2. Monster Nitrous
for impulse and immediate gratification
Energy Drinks
purchases, the top 10 food and beverage
3. glacéau vitaminwater zero
ranking within this channel is very different
4. Budweiser Select 55
versus the same ranking across the
Beer/Ale/Alcoholic Cider
combined grocery, drug and mass
5. Trident Layers
channels.
6. Mountain Dew Throwback
$253.7
Sports Drinks
Bottled Water
Gum
Carbonated Beverages
$55.6
$54.3
$38.7
$37.6
$31.5
Trends within the convenience channel
7. Orbit Mist
underscore that many consumers have the
8. Bud Light Golden Wheat
need for immediate indulgence and
Beer/Ale/Alcoholic Cider
$29.7
energy, even if trying to eat healthier.
9. Red Bull Energy Shot
Energy Drinks
$29.6
10. MATADOR by Jack Link
$28.8
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
Gum
Dried Meat Snacks
$31.0
Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010
2010 New Product Pacesetters: Top 10 Convenience Store Brands
Year-One Dollar Sales ($ Mil)
ever.” Red Bull energy shots also provide
an energy boost, and are “perfect answer
stick provides “a snappy texture, kick and
Convenience store operators play an
for those times when you need sustained
spicy flavor” in an easy-to-open package
essential role in providing consumers with
energy for hours in a sip.”
well-suited for immediate and/or on-the-go
a wide array of quick and easy CPG
consumption.
solutions - from exciting and indulging, to
Detailed in SymphonyIRI’s 2011 State of
hunger satisfaction and nutritionally
the Snack Industry report, more than one-
Indulgences are also often satiated in the
quarter of consumers view snacks as a
convenience channel. Detailed earlier in
means of satisfying an immediate hunger.
this report, Budweiser Select 55 offers the
As conservative, home-based food rituals
And, 68% of consumers choose meat
flavor of a “full calorie” beer but without the
prevail, convenience marketers need to
snacks when looking for a snack to fill that
caloric impact. Also from Budweiser, is
remain steadfastly focused on bringing fun
need.
top-performer Bud Light Golden Wheat,
and indulgence, while also embracing
offering a slightly sweet first sip, giving way
opportunities to bring value and
to a refreshingly crisp citrus finish.
affordability to the marketplace.
MATADOR snack sticks add excitement to
focused.
that hunger-satisfying mission. The meat
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
24
New Product Pacesetters: Carving Out Growth in a Down Economy
Conclusions: CPG Manufacturers
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 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
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
25
New Product Pacesetters: Carving Out Growth in a Down Economy
Conclusions: CPG Retailers
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:

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 bestaligned 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 solutionsbased 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
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
26
New Product Pacesetters: Carving Out Growth in a Down Economy
Resources
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:
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.
BehaviorScan® New Product
Testing
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.
IntroCast™ Launch Forecasting
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.
Launch Commander™
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.
New Product Profiler™
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.
Newly Updated Through 2010: Groundbreaking Report by SymphonyIRI
Innovation 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.
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
27
New Product Pacesetters: Carving Out Growth in a Down Economy
FOR MORE INFORMATION
Please contact Susan Viamari at
[email protected]
with questions or comments about this
report.
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.
Corporate Headquarters:
150 North Clinton Street
Chicago, IL 60661
Telephone: +1 312 726 1221
www.SymphonyIRI.com
© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.
28