In 2011-2012, only about 1 in every 10 new CPG brands – of which there were almost 1,900 – managed to to meet the “stringent, industry-recognized benchmarks of exceptional first-year sales success required to achieve 2012 New Product Pacesetter status,” reveals Information Resources, Inc. (IRI) in a recent study. Those 200 top-selling launches each achieved more than $13 million in first-year sales, with an individual average of $39.5 million. Among food and beverage brands, Dannon Oikos topped the list with almost $284 million in total year-one multi-outlet dollar sales. Starbucks K-Cups ($198.9 million) and Bud Light Platinum ($162.2 million) followed.
Among non-food brands, Allegra topped the list by a wide margin, coming in at $342.6 million in first-year dollar sales, with second-placed Colgate Optic White trailing with $141.1 million in sales.
The study also reveals that 1 in 5 consumers are “always” looking for new products to try, with that tendency higher among Millennials and consumers who feel financially secure.
Looking at the distribution of year-one sales for new products that completed their first year in calendar year in 2012, IRI shows that slightly more than two-thirds generated less than $7.5 million in sales, with that figure was higher among non-food than food & beverage brands (75% and 58%), respectively.
Among this year’s pacesetters, 82% of food and beverage brands and 91% of non-food brands were extensions of existing brands.
- 65% of food and beverage new product pacesetters offered a distinctive/new flavor or flavor combination.
- 39% offered an “indulgent benefit,” with the most popular being better flavor/taste (59%).
- Of the 27% offering healthier benefits (down from 39% in 2011), the top benefit offered was “real/100% real” (41%).