2011 New Product Pacesetters - The Food Institute · Targeted Innovation Rules the Day in 2011 Larry Levin Executive Vice President/General Manager, Consumer Insights SymphonyIRI

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2011 New Product Pacesetters An Eye into the Future of CPG

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Executive Summary

Introduction

Overview

Growth Opportunities

Food & Beverage

Non-Foods

Convenience Stores

Conclusions

Resources

APRIL 2012

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© Copyright 2012 SymphonyIRI Group, Inc. All rights reserved.

Targeted Innovation Rules the Day in 2011

Larry Levin

Executive Vice President/General Manager, Consumer Insights

SymphonyIRI Group

New Product Pacesetters: An Eye into the Future of CPG

But, these numbers tell just part of the story. Our New Product Pacesetters analysis really digs deep and underscores

the success that CPG marketers are finding in bringing to market products that raise the bar on consumer expectations

around everyday CPG solutions.

There is an increasing trend toward highly-targeted new products, whether line extensions or net new brands. Udi‘s

Gluten Free Foods, for example, launched a new, extensive line of gluten-free products including appetizers, breakfast

foods, breads and desserts. These are not lining up to be $100 million blockbuster success stories, frankly, they don‘t

need to because they fill a compelling need and should attract a loyal following.

With more than half of all shoppers eating at home today—more than prior to the recession—another important trend is

the skewing of new product innovation to complete dinner solutions, which accounted for 23 percent of total sales,

versus 18 percent on average in the 2002-2011 timeframe.

In the non-food sector, beauty care showed significant growth, with 40 new products introduced in 2011, well outstripping

the average in recent history. This growth underscores manufacturer reaction to shoppers‘ continued efforts to save

money by giving themselves pro-quality salon and beauty treatments at home.

CPG marketers are really doing a phenomenal job listening and responding to consumers. They are capitalizing on

opportunities and they are deftly navigating economy-driven hurdles. As our dynamic industry continues to shift based

on shoppers‘ changing needs and the technology at our disposal, I look forward to your comments, thoughts and

observations.

By the end of 2011, the U.S. economy finally showed sustained signs of life. While a

sizeable segment of the population is struggling to make ends meet, others are feeling

optimistic and are beginning to open their wallets. This complex and difficult environment is

actually an excellent opportunity for CPG manufacturers to provide new products that offer

affordable luxury and variety to cash-strapped consumers.

SymphonyIRI recently analyzed the new CPG product launches that hit the mark with

consumers last year, and we are thrilled to share the most successful food and beverage

and non-foods CPG brands with our 2011 New Product Pacesetters report.

Our research reveals that new food and beverage new product introductions increased

slightly in 2011, while total non-food introductions actually decreased. And, at the industry

level, average year-one sales declined from $35 million in 2002 to less than $25 million last

year.

https://iq.infores.com/sites/marketing/Headshots/Larry Levin/0008.jpg

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While the overall pace of innovation slowed in 2011,

manufacturer efforts to cater to home-based eating rituals

and an increasing focus on targeted/niche market

innovation helped support growth within the food and

beverage arena

Be on the lookout across and outside of the

CPG industry for emerging consumer trends

and associated opportunities to develop

products that meet consumers‘ needs/wants

Leverage consumer-centric brand extensions as

a tool to maintain brand vitality and consumer

engagement, while stepping up efforts to bring

truly new innovations to market, where feasible

Set realistic and achievable forecasts for new

product launches based upon detailed market

assessments and modeling for all new launches

Non-foods innovation is raising the bar on performance

across CPG aisles, often while simultaneously indulging

consumers‘ bodies, senses and pets

Consumers‘ quest for experiential eating is driving

significant growth in food and beverage variety, with new

products bringing excitement to both healthier-for-you and

indulgent food and beverage categories

Constantly evaluate emerging technologies,

processes and ingredients for opportunities to

raise the bar on performance and experiential

living

The best-selling launches in the convenience store arena

support the indulgent, often immediate-consumption

mindset of consumers within that channel

Support c-store efforts with value-oriented

programs touting cost-effective ways to splurge

smartly

The vast majority of new products fail to garner more than

$7.5 million in year one; only a select few of 2011

Pacesetters achieved $50 million or more

INSIGHT ACTION

Executive Summary: Turning Insights Into Action


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Introduction

Even in difficult economic times,

consumer-driven innovation fuels growth in

the packaged goods industry. In 2011,

innovation brought luxury and variety into

the homes of U.S. consumers.

It is a complex time for CPG

manufacturers. While a sizable segment of

the population is struggling to make ends

meet, others are feeling optimistic and are

beginning to open their wallets anew.

Among both of these segments, and

across populations in between, there is

opportunity for CPG manufacturers.

Capitalizing on that opportunity requires

maintaining a keen understanding of

consumer needs and wants, and being

poised to act swiftly to address those

needs in a way that meets or exceeds

performance expectations while providing

value.

The best selling food and beverage

launches really brought pizzazz to the daily

diet. They brought restaurant and gourmet

quality into the home kitchen, and they

made snacking more fun with new textures

and exciting flavor combinations.

In non-foods, the 2011 innovation story is

all about product performance. Powerful

beauty and personal care launches made

consumers look and feel great based on

amazing results, made easy. Healthcare

banners are drawing more on unique and

patentable advances to upgrade solutions

and upstage the competition. And, new

household products make housekeeping

for instance, is Udi‘s Gluten Free Foods, of

Denver, Colorado, with a line of gluten-free

products that is selling quite well. Smaller

players, such as Talking Rain Beverage

Company, are shining among this year‘s

Rising Stars, too.

New product innovation is inspired by

consumers‘ views and ideas and delivered

by manufacturer know-how. The process‘s

success is a story that is defined by the

consumer and embraced by the CPG

industry. True innovation is a tough nut to

crack, but it is happening today, sometimes

by big manufacturers and sometimes by

newcomers to the game. Either way, it is

innovation that is setting the stage for the

CPG world of tomorrow.

This report reveals the most successful

CPG product launches of 2011, and

provides insights into the secrets of their

success. These products provide best-in-

class examples of how to beat the new

product odds.

easier, but with tie-breaker plusses—

fragrances, extended effectiveness and

―going green‖ reassurances. Pet care

products enhanced the quality and

longevity of the lives of treasured friends—

nothing is too gourmet for Fido!

The Pacesetters of today, having beaten

the new product odds despite a difficult

and complex environment, are truly

remarkable. They help to raise the bar to

which packaged goods manufacturers

aspire, and they set the stage for the

marketplace of tomorrow.

Many of today‘s most powerful launches

hail from the research laboratories of the

industry‘s largest and well-rooted

manufacturers. Illustrated in

SymphonyIRI‘s 15 Years of New Product

Pacesetters, for instance, Procter &

Gamble and PepsiCo are well-positioned

among the ranks of the industry‘s biggest,

and most consistent, producers of New

Product Pacesetters.

But, in more recent years, small

companies, too, have made quite a splash

in the new products pool. Indeed, 2010‘s

top-selling food launch was Chobani

yogurt. With a purse-string advertising

budget, this relative ―unknown‖ brand took

the country by storm, garnering nearly

$150 million in year-one sales.

Smaller manufacturers continue to make

their marks on the CPG industry. Among

this year‘s New Product Pacesetter ranks,

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)


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SymphonyIRI‘s 15 Years of New Product

Pacesetters report. New product average

year-one sales declined from $35 million in

2002 to less than $25 million in 2011.

Indeed, new products are becoming

increasingly targeted to the needs and

wants of smaller, more discrete consumer

segments.

As competition for share of wallet

continues to intensify, the importance of

successful innovation will grow. Through

consumer-centric innovation,

manufacturers will grab the attention of

consumers, add differentiation, and protect

and grow customer loyalty.

of consumers are actively looking for new

products to try1, reinforcing the notion that

new products are the lifeblood of the CPG

industry.

Despite consumers‘ enthusiasm for new

products, a vast majority of new products

garner less than $7.5 million in year one

sales. And, less than 3% achieve year-one

sales of more than $50 million.

During the past several years, average

year-one sales has actually declined. This

does not, however, indicate that new

products are less successful than they

have been in the past Rather, it is

indicative of a very different trend, which is

evidenced in data presented in

Number of CPG New Product Introductions*

Brand Level

With the country now entering the fourth

year of economic downturn, it is not a

shock to see that the pace of new product

innovation within the CPG industry is on a

downward trend. Indeed, in 2011, brand

introductions numbered 13% less versus

2008 levels and off 3% from last year.

In contrast to declining non-foods

innovation, food and beverage innovation

escalated slightly during 2011, to 665 new

products and brands. However, the rate of

food and beverage innovation remains well

below that seen in the non-foods arena.

Despite prolonged economic difficulties,

innovation remains the lifeblood of the

CPG industry. Twenty-two percent

Overview

77.0%

3.0% 10.0% 8.0%

2.1% 0.3%

84.0%

4.0% 7.0%

4.0% 0.2% 0.3%

<$7.5 $7.5-$10 $10-$20 $20-$50 $50-$100 $100+

Total Food & Beverage Total Non-Foods

916 859

659 647 665

833 936 949 957

896

2007 2008 2009 2010 2011

Total Food & Beverage Total Non-Foods

Source: SymphonyIRI New Product Profiler™ *Across Food, Drug & Mass Channels (excluding Walmart)

2011 Proportion of CPG New Products

by Year-One Sales* ($ Millions)


1Source: SymphonyIRI 2012 New Products Survey

While the total number of new product introductions declined in 2011, food and beverage

innovation actually gained momentum; still, a vast majority of new products fail to meet the

$7.5 million in year-one sales threshold.


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products, including appetizers, breakfast

foods, breads and desserts. In non-foods,

Nature‘s Way Products, Inc. answered

consumers‘ call for healthier living with

Nature‘s Way Alive!, a line of multivitamins

made with ―26+ fruits and vegetables.‖

The David and Goliath story is not new, but

it is becoming more pervasive. With the

growing presence and power of social

media, as well as the potential to innovate

freely and creatively, the ―go to market‖

playing field is a bit more level. And,

mentioned earlier, innovation is becoming

more targeted, ultimately changing the

definition of successful innovation. Big or

little, CPG manufacturers with a laser focus

on true marketplace needs, at an

increasingly granular level, will be the ones

to enjoy new product success in years to

come.

In the non-foods arena, net-new brands

earn an historical average $37 million in

year-one sales–a whopping 70% more

versus line extensions. The gap is

enormous, often bolstered by prescription

products capturing huge year-one sales

when making the switch to over-the-

counter status. In 2011, in the absence of

$100 million-plus Rx-to-OTC switches, net-

new brands actually earned 39% less on

average, versus line extensions.

The ranks of manufacturers making a big

splash with net new innovation in 2011 tells

an amazing story. The theme of the story:

―You don‘t have to be big to make a big

splash!‖ This continues last year‘s story of

David and Goliath!

For example, Udi‘s Gluten Free Foods took

the food and beverage aisles by storm with

a rather extensive line of gluten-free

Consistent with patterns illustrated

throughout the history of CPG innovation,

product line extensions accounted for the

vast majority of new products brought to

market in 2011. This road is shorter, and it

is easier, for having an established brand

equity goes a long way to supporting the

success of new, related products, thus

adding excitement and longevity to the life

of the core brand in a relatively

inexpensive and less risky manner.

But, the ―easier‖ road comes at a price:

year-one sales of product line extensions

are generally much lower versus sales

achieved by net new brands. During the

past 10 years, food and beverage line

extensions averaged year one sales of

$27.7 million, about 9% less versus net-

new brands introduced during the same

timeframe. In 2011, this gap was much

more substantial, at more than 64%.

.

Growth Opportunities: New Brands v Brand Extensions



92% 91%

Food & Beverage Non-Foods

2011% of New Product Pacesetters*

That Are Brand Extensions

$30.2

$37.0 $35.4

$14.0

$27.7 $21.8 $21.6 $22.9

Food & Beverage

Non-Foods Food & Beverage

Non-Foods

New Brands

Brand Extensions

New Brands v Brand Extensions

Average Year-One Sales ($ Millions)

2011 2002-2011

Despite the fact that net new brands historically out-perform line extensions in average year-

one sales, the vast majority of 2011’s most successful new products were brand extensions.


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Fz Dinners/Entrees

Fresh Bread & Rolls

Frankfurters

Coffee

Chocolate Candy

Carbonated Beverages

Crackers

Fz Dinners/Entrees

Rfg Teas/Coffee

Creams/Creamers $44.2

$44.3

$48.6

$50.6

$55.8

$58.4

$58.4

$69.2

$73.6

$101.6

Source: SymphonyIRI New Product Profiler™, New Products that completed their first year in calendar year 2011

1. P.F. Chang‘s Home Menu

2. Thomas‘ Bagel Thins

3. Oscar Mayer Selects

4. Folgers Gourmet Selections K-Cups

5. M&M‘S Pretzel

6. Sun Drop

7. Kellogg‘s Special K Cracker Chips

8. LEAN CUISINE Market Creations

9. Gold Peak Chilled Tea

10. BAILEYS Coffee Creamer

Consumers looking to eat well without

derailing their dietary efforts are in luck this

year, too. You can create mornings that

shine with Thomas‘ Bagel Thins. And, with

Kellogg‘s Special K Cracker Chips, you

CAN have your chips and eat them too!

It‘s a perfectly seasoned way to satisfy

your salty snack craving. Each offer

calorie-controlled indulgence without the

guilt.

Food & Beverage: Top 10 Pacesetters

2011 New Product Pacesetters: Top 10 Food & Beverage Brands

Year-One Dollar Sales ($ Mil) Across Food, Drug and Mass

(Excluding Walmart)

The ranks of the best-selling food and

beverage launches of 2011 illustrate the

fervor with which consumers are seeking

pizzazz in their daily diet. This pizzazz is

coming to market in many forms, from

restaurant quality ingredients and recipes

to unexpected textures and flavor

combinations.

The largest food and beverage brand

introduction in 2011 is P.F. Chang‘s Home

Menu line of frozen entrees, which tout

signature bold flavors of their famous Asian

cuisine. From meals that can be ready in

less than 13 minutes to appetizers that

The ranks of top-selling new food and beverage products in 2011 underscore

consumers’ desire for home-based, yet, experiential eating and drinking.

are too good to have just one, P.F.

Chang‘s new line promises to ignite the

night.

With 2011‘s most successful new products,

gourmet eating goes well beyond

mealtime. Folgers Gourmet Selections K-

Cups and Gold Peak Chilled Tea make

enjoying a fancy beverage quick, easy and

portable. And, with a crunchy pretzel

inside milk chocolate inside a colorful

candy shell, M&M‘S Pretzel makes snack

time an experience with a salty-sweet

crunch that is just right for on-the-go

snacking.


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Creations, STOUFFER‘S Farmers‘

Harvest, and BUITONI Riserva exemplify

consumers‘ quest for quick and easy meal

solutions that offer variety, comfort and/or

restaurant quality at a solid value.

In 2011, two consumption groups saw

their pace of innovation fall: breakfast

solutions and sweet snacks (charted under

―other‖), driven specifically by

snacks/granola bars and ice

cream/sherbet. SymphonyIRI will be

closely monitoring trends in these typically

high-innovation categories.

four brands in the ranks of the top 20 food

and beverage New Product Pacesetters,

including two chocolate products,

SNICKERS Peanut Butter Squared and

M&M‘S Pretzel, and two gum products,

Wrigley‘s 5 React and Wrigley‘s Extra

Dessert Delights. Together, these

products play to a range of key snacking

trends, including satiation, healthy eating,

indulgence, and on-the-go consumption.

Successful dinner solution launches also

became more numerous versus historical

averages in 2011. Discussed throughout

this report, dinner solution products such

as P.F. Chang‘s, LEAN CUISINE Market

Food & Beverage: Category Trends

According to SymphonyIRI‘s 2011 State of

the Snack Industry report, snack frequency

is on the rise, with increases occurring

across dayparts. Analysis of 2011‘s most

successful new products clearly illustrates

that CPG marketers are aware of and

playing to this trend.

For instance, in 2011, successful candy

and gum launches represented 19% of

food New Product Pacesetter dollars. This

is more than double the share seen, on

average, in the 2002-2011 timeframe. Mars

is a key driver of strong candy and gum

innovation trends. In 2011, Mars boasted

Most Active Food New Product Pacesetters

Product Usage Group as % Total Food Pacesetter Dollars

23% 16%

11%

12%

18% 23%

16% 18%

7%

19%

24%

12% Other Foods

Candy & Gum

Meal Makers / Light Meals / Appetizers

Dinner Solutions

Salty Snacks

Breakfast Solutions

Average

2002-2011 2011

Other :

Sweet Snacks

Desserts

Sauces/Spreads/ Dressings/

Dips/Condiments

Avg.

2002-2011 2011

12%

10%

3%

6%

6%

0%

*

*


The candy and gum sector experienced high levels of innovation in 2011, with

successful launches accounting for 19% of total food Pacesetter dollars.


Note: Numbers may not add to 100% due to rounding.

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For instance, PepsiCo brought to market

two targeted, specific-use Gatorade

products in its G Series line, both of which

achieved Pacesetter status. Gatorade

Prime is a pouch filled with pre-game fuel

designed to give your body the energy it

needs to own the first move, and Gatorade

Recover is an after-workout beverage with

protein that helps to rebuild muscles.

Mentioned earlier in this report, niche

innovation is likely to continue to gain

momentum in the future. As this evolution

takes place, it will be critical for CPG

manufacturers to base these efforts on an

intimate understanding of the needs and

wants of their target audiences.

The other was Millstone. Green Mountain

also launched multiple Pacesetter K-Cup

coffee brands for the year, including

Caribou Coffee, Tully‘s and Donut House

Collection.

On first glance, it appears that innovation

in the carbonated beverage, sports and

energy drink arena was down in 2011.

Actually, the number of new brands

achieving Pacesetter status in this area

was on par with historical trends, at five.

For the year, Pacesetters in this usage

group represented about $27 million in

year-one sales, or 23% of total beverage

Pacesetter dollars. This is well below

historical average of more than $58 million

in year-one, a shift caused by the adoption

of a focus on more targeted beverage

innovation.

Food & Beverage: Category Trends

Across most beverage ―usage groups,‖ the

pace of successful innovation remains on

par with historic norms. But, innovation

activity in the coffee and tea sector was

quite high in 2011, driven heavily by the

proliferation of single-cup coffee brands,

designed for the new Keurig coffee

machines. For the year, nine coffee and

tea innovations achieved New Product

Pacesetter status, versus an historic

average of four per year between 2002 and

2011. In 2011, five of those nine coffee

and tea brand line launches included

single-cup, K-Cup coffees.

Mentioned earlier in this report, Folger‘s

Gourmet Selections K-Cups was the top-

selling single-cup coffee launch in 2011,

and one of two J.M. Smucker brands to

achieve New Product Pacesetter status.

23% 16%

45%

23%

10%

49%

22% 12%

Beer, Wine & Spirits

Coffee & Teas

Carbonated, Sports, & Energy Drinks

Juices, Milks & Waters

Average

2002-2011 2011

Most Active Beverage New Product Pacesetters

Product Usage Group as % Total Beverage Pacesetter Dollars


Coffee & tea manufacturers found great new product success in 2011, driven quite

heavily by the proliferation of single-cup coffee.



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This ritual shift opens the door to

substantial opportunities for food and

beverage manufacturers. Innovation

clearly shows that manufacturers are

understanding and responding to this

opportunity.

Key benefits addressing these

opportunities and others are explored in

greater detail on the pages that follow.

Given this powerful trend, it is logical that

food and beverage manufacturers are

embracing new ingredients and new

technologies to raise the bar on the taste

and texture of healthier-for-you food and

beverage options.

Another key economy-influenced trend is

the increased prevalence of home-based

eating. According to SymphonyIRI‘s

Q12012 MarketPulse survey, 55% of

consumers are eating out less frequently

today versus before the downturn began.

Food & Beverage: Consumer Benefit Trends

Food and beverage innovation is

harnessing technologies and ingredients to

address a number of powerful economy-

driven opportunities.

For example, the ranks of consumers that

are trying to eat healthier are swelling,

rising from 76% to 87% in just three years,

according to SymphonyIRI‘s annual

Consumer Snacking Survey. Indeed,

during the course of the economic

downturn, healthier living has become a

key means of managing medical expenses.

2011 Food & Beverage New Product Pacesetters: Top Benefits

% of Total Pacesetters Offering Benefit

15%

19%

19%

19%

20%

20%

23%

27%

37%

62%

64%

84%

Less, Reduced Fat or Fat-Free

Added Vitamins, Nutrition

Different Texture

Added/High Fiber or Whole Grain

Less, Reduced Calories, Lo-cal

Bite-size, Hand Held

More Natural, Organic

Improved Flavor, Taste

Convenience, Ready-to-Serve

Distinctive/New Flavor

New or Unique Recipe

Variety--Flavors or Recipes

Taste & Variety

Health & Wellness

Convenience


Food and beverage manufacturers are finding great success bringing variety into the marketplace,

driven by consumers’ quest for experiential dining and food and beverages that make healthy eating

easier and more enjoyable.


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For instance, Kellogg‘s launched seven

brands with distinctive/new flavors in 2011,

and General Mills launched six.

But, one manufacturer made a particularly

big splash in 2011. Mars launched four of

the 10 largest brands boasting distinctive

flavors, new flavors or new flavor

combinations during the past year.

Wrigley 5 React gum stimulates the

senses, while Wrigley Extra Dessert

Delights is a sugarless gum inspired by

real desserts. M&M‘S Pretzel is a crunchy

pretzel inside a colorful candy shell. And,

with SNICKERS Peanut Butter Squared,

peanut butter and chocolate just got better!

Excitement isn‘t reserved for mealtime,

though. Starbucks VIA Instant Coffee

allows consumers to enjoy delicious coffee

wherever they go, Pop-Tarts Mini Crisps

are a joylicious treat for pastry-lovers and

Breyers has brought the ice cream shop

into the home with Breyers Smooth &

Dreamy, a healthier-for-you line of frozen

novelties that are double-churned and oh-

so-deliciously creamy.

Two-thirds of 2011 food and beverage New

Product Pacesetters bring distinctive

flavors, new flavors or new flavor

combinations into the marketplace.

Detailed in the chart on this page, focus in

this area was substantially higher in 2011

than it has been in recent history. It is

occurring across aisles, categories and

manufacturers.

Despite the fact that the average

household pantry has been shrinking for

years now, bringing new variety into the

CPG marketplace remains a major focus of

CPG markets‘ innovation efforts. In 2011,

84% of successful new food and beverage

brands added to variety in the marketplace.

Nearly 55% of consumers are eating at

home more today than before the

economic downturn began1, but the ranks

of the most successful food and beverage

products clearly indicate that the need for

exciting, restaurant-quality meals and

snacks has not waned.

P.F. Chang‘s Home Menu line, for

instance, beckons for consumers to ―ignite

the night‖ with appetizers that turn every

gathering into a party and meals that are

ready in 13 minutes or less.

Food & Beverage: Consumer Benefits - Taste & Variety

Percent of Food & Beverage New Product Pacesetters

Offering Taste & Variety Benefits vs Historical Trend 84%

64% 62%

27% 19%

72%

53%

38%

12% 13%

Flavors or Recipes

New/Unique Recipe

Distinctive/New Flavor

Improved Flavor/Taste

Different Texture

2011

2002-2011


Successful food and beverage innovation continues to bring exciting flavors and new varieties into

consumers’ pantries, often in the form of new recipes and flavor combinations.

1Source: SymphonyIRI MarketPulse Survey Q1 2012


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gluten-free foods. In 2011, Udi‘s Gluten

Free Foods released a line of gluten-free

breads that are a perfect start to just about

any sandwich.

The gluten-free diet is followed by those

with celiac disease, as well as by others

who feel that gluten-free eating offers

health benefits. To that end, beyond

manufacturers introducing new gluten-free

products, there are other manufacturers,

including Frito Lay, adding a gluten-free

label to appropriate existing product lines

to raise awareness among consumers

actively seeking gluten-free products.

again in healthy and indulgent products

alike. Dole has two new products in this

arena. Dole Sensation is 100% juice for

the flavor adventure you‘ve been craving.

And, Dole Fruit Crisps are satisfying bowls

of juicy Dole fruit in a fruit sauce, each with

its own crispy, crumbly topping made with

whole grain oats and brown sugar.

Largely a newcomer to this year‘s New

Product Pacesetters rankings is the gluten

free attribute. During the past year, 6% of

food and beverage Pacesetters boasted a

gluten-free claim. As the name implies,

Udi‘s Gluten Free Foods is a Colorado-

based company focused entirely on

Food & Beverage: Consumer Benefits - Health & Wellness

Noted earlier in this report, healthier-for-

you food and beverages are becoming

increasingly prevalent among the ranks of

top-selling new CPG products. This trend

is certainly attributable to growing demand

and by manufacturers‘ continued ability to

successfully leverage new technology and

processes to fold in a broadening array of

healthier-for-you attributes without

negatively impacting taste and/or texture.

The most common wellness-related benefit

among 2011‘s New Product Pacesetters is

natural and/or organic ingredients. For the

year, 23% of the top food and beverage

launches were more natural/organic,

versus an historical average of 19%.

This year‘s top natural/organic launches

span a number of food and beverage

categories, including several products with

an indulgent positioning. For instance,

Yoplait Splitz is a 100% real Yoplait yogurt

with the dessert flavor kids crave. And, for

adults, THE CLASSIC MARGARITA by

mike‘s contains real lime juice and agave

nectar for a traditional margarita available

in lime, raspberry or peach flavor.

Another healthier-spin on an indulgent

product, made possible by adoption of a

more natural approach to manufacturing is

Oscar Mayer Selects, frankfurters which

contain no artificial preservatives and only

naturally-occurring nitrates and nitrites.

Food and beverages made with 100% real

fruit are quickly gaining popularity, once


Offering Health & Wellness Benefits vs Historical Trend

2%

1%

6%

6%

8%

8%

15%

25%

16%

23%

19%

4%

6%

8%

9%

9%

13%

15%

19%

20%

20%

23%

Low Salt/Sodium

Gluten Free

No Trans Fat

Antioxidants

Energy/Protein

100% Real Fruit

Lower Fat/Fat Free

Added Vitamins, Nutrition

High Fiber/Whole Grain

Reduced Calorie

Natural/Organic

2011

2002-2011


New technologies and processes are arming food and beverage

manufacturers with the tools they need to enhance better-for-you attributes

without negatively impacting taste and/or texture.


13 13


vitamins C & E, and a hearty whole grain

texture. Those seeking a bit of indulgence

can also grab breakfast on the go with

Pop-Tarts Mini Crisps, which offer the

joylicious taste of Pop-Tarts toaster

pastries flavor packed into 100-calorie

pouches of flavored baked crispy bites.

Certainly, bite-sized and handheld options

are not limited to the breakfast arena.

From handheld entrees, such as TGI

Friday‘s Anytime! Sliders, to bite-sized

chocolates, including WONKA

Exceptionals, bite-sized and handheld

options that make on-the-go eating more

manageable are hitting the mark with

today‘s busy consumers.

is steamed to perfection in the microwave,

are really hitting the mark with time-starved

consumers.

The prevalence of bite-sized and/or

handheld form is also on the increase.

One in five of 2011‘s Pacesetter food and

beverage products comes in bite-sized or

handheld form. This is a marked increase

versus historical trends.

For instance, Kellogg‘s achieved

Pacesetter status with two on-the-go

breakfast options in 2011. For consumers

seeking a healthier-for-you option, Nutri-

Grain Superfruit Fusion is a line of cereal

bars with strawberry acai or cherry

pomegranate flavored filling, antioxidants,

Food & Beverage: Consumer Benefits - Convenience

The United States is home to a very much

an on-the-go population. SymphonyIRI‘s

2012 Consumer Snacking Survey, for

instance, reveals that more than one-third

of the population often eats snacks instead

of meals when on-the-go. Indeed, this is

one of the factors that is leading to

increased snacking frequency.

But, manufacturers across many food and

beverage categories are catering to

consumers‘ on-the-go eating and drinking

behaviors. In 2011, 37% of successful

new food and beverage launches touted

quicker or more portable attributes, versus

an historical average of 28%.

Thanks to the previously-discussed

escalation of new technologies and new

designs, manufacturers are making it faster

and easier to enjoy a wide array of foods

and beverages at and from home.

With products such as GERBER Yogurt

Blends, even the country‘s youngest

consumers are enjoying more portable

home-based meal and snack options.

Specially prepared and packaged to

require no refrigeration before opening, this

product introduces yogurt to babies, and is

rich in calcium, and vitamins A, D & E.

For those consumers looking for quick-

preparation, yet premium quality meal

options, products such as Marie

Callender‘s Fresh Flavor Steamers, with

fresh flavors, rich textures, and the

comforting taste of a homemade meal that

37%

20%

28%

14%

2011

2002-2011


Offering Convenience Benefits vs Historical Trend

Extra Convenience, Added

Portability, Ready-to-Use

Bite-Size, Hand-Held,

Snack Form


Prevalence of convenience-oriented product launches continues to

grow, as CPG manufacturers seek to deliver against consumers on-

the-go eating and drinking behaviors.


14


2011 New Product Pacesetters Rising Stars

Projected Top 10 Food & Beverage Brands

(Alphabetical Order)

Dannon Oikos

Yogurt

Nabisco Newtons Fruit Thins

Cookies

Food & Beverage: Rising Stars

Source: SymphonyIRI New Product Profiler™

Dr Pepper TEN

Carbonated Beverages

Skinny Cow Chocolate Candy

Chocolate Candy

Healthy Choice Top Chef Café Steamers

Fz Dinners/Entrees

Sparkling ICE

Bottled Water

Kraft MiO

Drink Mixes, Energy Drinks, Sports Drinks

Starbucks K-Cups

Coffee

Magnum

Fz Novelties

TruMoo

Milk

Building excitement is a focus in the food

arena, as well. Unilever‘s Magnum is a

first in handheld premium ice creams

targeted specifically at the adult market.

High-end ingredients, such as vanilla bean

ice cream and Belgian chocolate are

bringing the ice cream parlor right into

consumers‘ freezers.

Really, indulgence is taking place across

dayparts, and even in wellness-positioned

products. From Dannon Oikos to Healthy

Choice Top Chef Café Steamers, eating

well is becoming tastier and more

convenient every day.

Kraft‘s MiO is a water enhancer that allows

consumers to ―create your dream beverage

anywhere, anytime‖ with just a quick squirt

and shake.

Smaller manufacturers, too, are making a

big splash in beverages. Talking Rain

Beverage Company is finding success with

Sparkling ICE, a line of fruit-flavored

calorie, gluten and caffeine-free waters,

fortified with vitamin D, B-vitamins and

antioxidants.

Starbucks Coffee Company is appealing to

consumers looking for convenient coffee-

house coffee without the coffeehouse price

tag with its new line of Starbucks K-Cups.

SymphonyIRI‘s Rising Stars are relative

newcomers to the CPG marketplace. In

the short time they have been in the

market, though, they have shown great

promise. These products provide great

insight into the CPG world of tomorrow.

These products are raising the bar on both

indulgence and wellness. These products

offer experiential eating and drinking,

gourmet ingredients, indulgence and

wellness—often bringing more than one of

these qualities into a single brand.

Beverage manufacturers are adding

excitement throughout the day. For those

looking to consume more water, options

abound.

SymphonyIRI’s 2011 Rising Stars hint at a future of CPG marked by bold flavors and gourmet appeal

offering wellness and indulgence direct from the grocery aisles.


15 15


Food & Beverage: Trends to Watch

In the coming months and years, food and

beverage manufacturers will continue to

enjoy opportunities related to home-based

eating and drinking rituals. Indeed,

convenience will remain an essential

component of successful new food and

beverage launches, largely as a

secondary attribute behind newer benefits.

Other key influencers of food and beverage

innovation include:

a strong following. Nearly 90% of the

population is trying to eat healthier1, yet

indulgence, too, remains quite important.

Manufacturers have an opportunity to help

consumers strike and maintain this

important balance, while keeping in mind

that ease of preparation and ease of

consumption are key to much sought-after

dining convenience.


Home-Based Luxury

Consumers‘ more home-based way of

living is having a profound impact on the

food and beverage marketplace. Detailed

throughout this report, food and beverages

that make home-based meals and snacks

faster, easier, healthier, and more

luxurious are being well-received.

But, additional opportunities remain.

Detailed in SymphonyIRI‘s recent State of

the Snack Industry report, 37% of

consumers are entertaining at home more

frequently today as a result of economic

and personal financial difficulties.

Food and beverages that help to make

these events special and fun, and perhaps

a bit gourmet, while simultaneously offering

value, will also be rewarded with share of

sales and loyalty.

Better-For-You, and Easier, Too!

Targeted Innovation

Marketers today have vast amounts of

information at their disposal. The

technology needed to mine that

information, digest it, and turn it into

actionable knowledge also exists. Today,

CPG marketers have the ability to

understand their shoppers at a very

intimate level.

Increasingly, successful innovators are

using this micro-level understanding of

consumers to create more targeted CPG

brands. This trend is alive and well today,

and it is expected to pick up steam in the

coming months and years.

New technologies, new ingredients and

new communications platforms are working

together to create a more level playing

field. Proven by products such as Chobani

yogurt, a 2010 New Products Pacesetter,

and Udi‘s Gluten Free Foods line, a 2011

New Product Pacesetter, small players are

very much part of the new products game

today.

The demand for more targeted products is

growing. Players big and small will be

competing for share of these more niche

market segments in the CPG world of

tomorrow.

Green Business

CPG manufacturers‘ focus on sustainability

has been intensifying during the past

several years. Trends around sustainable

buildings, streamlined processes, and

more efficient transportation continue to

grow. And, CPG manufacturer continue to

seek new ideas on how to become more

environmentally friendly. For instance, just

recently, Unilever launched an online

platform that will be used to gather ideas

from experts on how to reduce its

environmental footprint while continuing to

grow in size.

Consumers are in tune with and supportive

of these types of efforts. More than one-

third of consumers, for instance, indicate

that their brand decisions are influenced by

biodegradable/reduced packaging, and

one-quarter consider manufacturers‘

business practices. Given that these

figures have remained consistent

throughout the course of the economic

downturn, odds are that they will remain

strong or grow even stronger as the

economy trends toward more stable

ground.

1Source: SymphonyIRI 2012 Consumer Snacking Survey

Similarly, ―smart splurges‖ that offer

indulgence without completely undermining

nutritional efforts will also continue to enjoy

16 16


Diapers

Razors, Blades, Shaving Cream, Shaving Lotion

Sanitary Napkins/Tampons

Razors, Blades, Shaving Cream

Cosmetics - Eye

Anti-Smoking Products

Cosmetics - Nail

Laundry Detergent

Weight Control/Nutrition Liq/Pwd

Cosmetics - Facial

2011 New Product Pacesetters: Top 10 Non-Food Brands


(Excluding Walmart)

$36.2

$37.5

$37.9

$41.8

$45.2

$46.5

$64.9

$74.6

$169.4

$296.0

Non-Foods: Top 10 Pacesetters

Performance is a key and common theme

across the most successful non-food CPG

products of 2011. From health and beauty

care to home and pet care, CPG

manufacturers are embracing technology

and ingredients that are making life easier

and more enjoyable for all.

The product capturing top year-one sales,

by a large margin, is Pampers with Dry

Max. Thanks to a new, innovative

manufacturing products, this line of

Pampers is 2x drier and 20% thinner, so

baby can play on.

Technology helped consumers get ahead

of their wellness goals as well in 2011.

For instance, Ensure with Revigor shows

muscle who‘s boss with amino acid

metabolite HMB, which increases muscle

synthesis while protecting from muscle

loss. And, Nicorette Lozenges

attack nicotine cravings before they attack

you with controlled release nicotine.

The range of products making a splash

with consumers is broad. From analgesics

to weight control and nutrition, the theme is

the same: powerful results made easy.

L‘Oreal has two new brands in the top 10

most successful launches of 2011, and

12 new launches that achieved New

Product Pacesetter status for the year. In

the top 10, Maybelline Fit Me was well-

received as a facial cosmetic that goes

beyond matching to provide fresh,

breathing, natural skin with SFP 18. And,

consumers also responded quite well to

Maybelline Volum‘ Express Falsies,

mascara that offers flash lash glam

instantly, with 300% more visible lashes.

Revlon also introduced numerous powerful

brands that answer consumers‘ call for

high-performing, self-driven, at-home

beauty products.


The most successful non-food brands of 2011 answered consumers’

call for powerful results made easy and fun.

1. Pampers Cruisers/Swaddlers with Dry Max

2. Gillette Fusion ProGlide

3. U by Kotex

4. Schick Hydro

5. Maybelline Volum‘ Express Falsies

6. Nicorette Lozenge

7. Sally Hansen Salon Effects

8. Tide plus Febreze Freshness

9. Ensure with Revigor

10. Maybelline Fit Me


17 17


Spanning a range of categories, including

hair care, cosmetics and fragrances, these

products successfully catered to

consumers‘ do-it-myself efforts to look and

feel beautiful on a budget.

A few examples of innovation in this area

are Sally Hansen‘s Salon Effects which

makes it easy to get a salon-like manicure,

any time, any place. And, Clearasil Daily

Clear is a dermatologist-tested scientifically

formulated acne treatment line to help give

you a gentle, yet, effective way to care for

your skin. Other powerful beauty launches

will be explored throughout this report.

Despite the decline in number of

Pacesetter introductions, baby care

Pacesetters as a percent of total non-foods

Pacesetter dollars actually increased for

the year. The driving brand behind this

increase was Pampers with Dry Max, the

largest non-foods Pacesetter launch for the

year. The other brand is Pampers SoftCare

Baby Wipes, scented baby wipes that

clean gently like a baby‘s washcloth.

In contrast, the number of Pacesetter

beauty care products brought to market

outnumbered historical average by a wide

margin, at 40 in 2011.

Non-Foods: Category Trends

At the usage group level, innovation in the

non-foods arena is largely in line with

trends evidenced during the past several

years. But, nuanced shifts did occur. For

instance, the number of successful new

year-one launches declined in 2011 versus

historical trends within five of the nine

usage groups identified on the chart on this

page.

The largest decline in net number of New

Product Pacesetter launches occurred in

the baby care arena. In 2011, two new

Pacesetter launches hit the shelves,

versus an historical average of six.

30% 29%

20% 24%

16% 14%

6% 5%

11% 7%

17% 21% Other Non-Foods

Home Care – Detergents, Cleaners

Pet Care

Health Care

Beauty Care - Hair, Cosmetics, Fragrances

Personal / Hygiene Care

Average

2002-2011 2011

Other :

Baby Care

Paper, Plastics, Foils

Air Fresheners/Candles

General Merch

Avg.

2002-2011 2011

7%

6%

2%

2%

15%

4%

3%

0%

*

*

Most Active Non-Foods New Product Pacesetters

Product Usage Group as % Total Non-Foods Pacesetter Dollars


In the non-foods arena, innovation trends at the usage-group level remained largely in

line with historical patterns.



18 18


It is a benefit that is largely expected, and

secondary to other, more ―top of mind‖

attributes. From PRECISE, from the

Makers of TYLENOL, which targets pain

relief where the body needs it most, to

Revlon Just Bitten Lip Stain + Balm, with

vitamin C and a translucent balm, new

products that make life easier are a

welcome addition to the household.

The benefits that are driving non-foods

success and products that bring those

benefits to life will be explored further on

the following pages of this report.

The Advil line grew with Advil Congestion

Relief, a decongestant to open the airways,

combined with Advil analgesic to relieve

the pain commonly associated with sinus

pressure. And, the Gillette Fusion line

grew with ProGlide, a razor with thinner,

finer blades and a low-resistance coating

to glide effortlessly through hair for less tug

and pull and incredible comfort.

Technology is also facilitating manufacturer

efforts to bring to market products that

answer the call for products that support

consumers‘ health and wellness efforts.

Still, convenience remains essential today.

Non-Foods: Consumer Benefit Trends

In today‘s non-food world, technology is

breeding variety and effectiveness, often at

the same time. Three-quarters of 2011‘s

most successful non-food launches bring

technology into play to expand variety

and/or to improve product effectiveness.

This is a theme playing out across many

non-foods categories. For instance, the

Pampers with Dry Max line utilizes an

innovative core for diapers that are thinner

than before, yet still the driest Pampers‘

diaper ever.

2011 Non-Foods New Product Pacesetters: Top Benefits

% of Total Pacesetters Offering Benefit

9%

13%

15%

16%

16%

27%

32%

42%

44%

50%

75%

75%

76%

Known Brand/New Category

Aroma Therapy, Theraputic

Doctor, Dermatologist, Dentist Approved

Added Vitamins/Nutrients

More Natural, Organic

Enhanced Moisturizing

Added Convenience/Portability

New or Unique Formula

Improved/Superior Process

New Design/Pattern/Look

Expanded/Improved Effectiveness

Variety

New Technology

Performance

Health & Wellness

Variety

Convenience


In 2011, the story of non-foods innovation success centers on a theme of high performance.


19 19


LYSOL Healthy Touch No-Touch Hand

Soap System. This new product senses

hands and dispenses just the right amount

of soap, so you and your family never have

to touch a germy soap pump again.

Despite a down economy, innovation is

successfully driving purchase behavior. In

fact, according to SymphonyIRI‘s 2012

New Products Survey, nearly one in four

consumers is always looking for new

products to try. And, 71% of consumers

will stick with products when they find a

new product that they like.

For example, the all line of laundry

detergent has expanded to include all Oxi-

Active, with 2-in-1 cleaning power that

makes whites brighter and colors more

vibrant.

In beauty and personal care, line

expansion efforts are supporting a range of

benefits. Garnier Fructis has introduced an

anti-dandruff line formulated with natural

extracts and B-vitamins so that each

shampoo provides a deep clean to purify

the scalp, while hair feels stronger for a

healthy, recharged look, and leaves users

dandruff free for up to 48 hours.

And, LYSOL has embarked on new

territory, with the technology behind the

According to SymphonyIRI‘s Q1 2012

MarketPulse survey, one in four

consumers is buying less variety in order to

save money on groceries. Yet, variety

continues to grow across the non-foods

arena, with 75% of 2011‘s most successful

new non-foods products bringing more

variety into the marketplace and enhancing

the ―fun‖ side for many buyers.

This apparent contradiction clearly

underscores the importance of heightening

the odds of new product success by

continually evaluating the products in the

marketplace against consumers‘ changing

needs and wants, then responding by

honing product lines to remain in lock-step

with the consumer. Successful

manufacturers are clearly understanding

this opportunity.

Non-Foods: Consumer Benefits - Variety

Percent of Non-Foods New Product Pacesetters

Offering Variety Benefits vs Historical Trend

75%

50%

66%

52%

New or Unique Varieties New Design/Pattern/Look

2011

2002-2011


Despite consumers’ conservative approach to shopping, non-foods products that bring benefit-wielding

variety are being met with huge success in the CPG marketplace today.


20 20


nutrients. Mars‘ Pedigree line, for

example, provides targeted nutrients

in several recent Pacesetter-status

launches. Pedigree Healthy Joints is

formulated with natural sources of

glucosamine to support healthy joints and

cartilage, and antioxidant vitamins E & C

work with the dog‘s immune system to help

keep his body healthy. Pedigree Healthy

Weight is a low-fat recipe with a special

fiber blend to help dogs feel full. And,

Pedigree Healthy Longevity is formulated

with leading levels of Omega 3s and

antioxidant vitamins E & C to help support

their hearts, minds and immune systems,

so that they can keep right on giving us joy

for many years to come.

contain high levels of glycerin to help

hydrate and moisturize after use.

Meanwhile, Schick‘s Hydro line is designed

to protect skin from irritation with a

hydrating gel reservoir in the razor and a

fast-acting moisturizing complex, including

vitamins E and pro-B5.

Manufacturers are adding other nutrients to

CPG products as well, bringing wellness-

related benefits to all CPG users.

PediaSure SideKicks, for instance, has

added protein, fiber, calcium, and vitamins

C and D to provide nutritional support to

kids who don‘t always choose nutritional

foods.

Pets, too, are getting more nutritional

support with new foods that tout added

CPG manufacturers are harnessing a wide

range of ingredients and technologies to

bring to market new non-foods CPG

products that raise the bar on wellness.

From toilet tissue and deodorant to

vitamin-enhanced shampoos and razor

blades, today‘s top-selling new launches

are finding innovative ways to make

mundane tasks easier, more exciting

and/or more rewarding.

In 2011, 27% of successful new non-food

launches helped chase away itchy, dry skin

with enhanced moisturizing power. The

two largest 2011 launches touting

enhanced moisturizing power were shaving

product lines.

Used in combination, Gillette‘s Fusion

ProGlide series delivers increased levels of

glide to reduce irritation, and the products


Offering Health & Wellness Benefits vs Historical Trend

Non-Foods: Consumer Benefits - Wellness

27%

16% 16% 15% 13% 16%

10% 12%

4% 10%

Enhanced Moisturizing

Added Nutrients More Natural, Organic

Doctor, Dermatologist,

Dentist Approved/Tested

Aroma Therapy, Therapeutic

2011

2002-2011


Successful new non-foods product launches are raising the bar on wellness with a wide variety of

approaches to healthier living.


21 21



Offering Performance Benefits vs Historical Trend

Non-Foods: Consumer Benefits - Performance

75% 76%

44% 42%

72% 67%

36% 33%

Expanded Effectiveness New Technology Improved Process New Formula

2011

2002-2011

In the home, with the Libman Freedom

Spray Mop: You Clean. Your Way. With

a scratch-free, removable and machine-

washable cleaning pad, and a refillable

solution bottle that can be filled with any

cleaner, or even plain water, this new mop

brings freedom from heavy buckets and

batteries, while helping consumers save

money.

Technological advances are the foundation

for the CPG world of tomorrow. To

succeed in that new world, CPG

marketers must continually monitor

advancements inside and outside of the

CPG industry, evaluating feasibility of

adopting these technologies in their own

categories and brands.

recommendations. For example,

Maybelline‘s Volum‘ Express One-by-One

is a waterproof mascara that offers volume

for bold lashes without the bulk. This

product is contact lens safe and

ophthalmologist-tested.

The toilet tissue category is bringing

pampering to a new level with Charmin

Sensitive, a bathroom paper with lotion

with a touch of aloe and vitamin E. It‘s

dermatologist tested to be gentle on

sensitive skin.

Technology is playing an important role in

supporting expanded effectiveness.

Pfizer‘s Advil Congestion Relief, for

instance, targets mucus while

simultaneously re-opening the airways by

constricting the blood vessels in the nose

and sinuses.

The number and types of products that

bring new processes or a new approach to

daily living has increased significantly in

recent years. In 2011, 44% of non-foods

Pacesetters brought improved processes

to the market, versus an historical average

of 36%. In a majority of these products,

new processes were the result of new

technologies, and the new technologies

brought improved performance.

Three-quarters of 2011‘s non-foods

Pacesetters raised the bar on performance

within their category. While these

categories cut across several CPG

departments, beauty and personal care

departments are well-represented in these

ranks.

To underscore the benefits of their

products, several CPG manufacturers are

backing their brands with physician

Non-foods manufacturers are leveraging technology to create new, powerful and efficient processes that

result in increased effectiveness and ease-of-use for today’s consumer.



22


Non-Foods: Rising Stars

Home care and health care, too, are

seeing a rise in performance and

pampering thanks to ongoing technological

advances.

Allegra is lining up to be the latest in a long

line of Rx-to-OTC switches to make a

sizable splash in the CPG world, offering

allergy sufferers non-drowsy 24-hour relief

of indoor and outdoor allergy symptoms.

Indulgence is now available in the laundry

room with Downy UNSTOPABLES, an in-

wash scent booster that keeps fabrics

smelling ―wow‖ right up to the next wash,

for the freshness you crave.

And, for an at-home spa experience, you

can have lavish luxuriously scented body

washes, lotions and massaging bars at half

the price of bath and body shops with the

Olay Body Collections.

Pet‘s too, are enjoying a bit of the

―professional‖ in their own homes. For

example, Kibbles ‗n Bits Bistro Meals, as

the name implies, are bistro-inspired. The

line offers complete balanced nutrition with

oven-roasted beef, spring vegetable and

baked apple flavors. And, for ‖pet parents‖

seeking gourmet home-style options, Milo‘s

Kitchen is a line of treats made from 100%

real jerky, sausage slices and meatballs.

The crystal ball of the future,

SymphonyIRI‘s non-foods Rising Stars,

point to a growing presence of

professional-level performance without the

hefty price tag.

From the top of your head to the tips of

your toes, beauty and personal care

products bring luxury and indulgence into

the home and into financial reach of a

broad range of shoppers.

Clairol Nice ‗N Easy Color Blend Foam and

John Frieda Precision Foam Colour bring

beautiful results using foam technology to

make at-home hair coloring easier and less

messy.

2011 New Product Pacesetters Rising Stars

Projected Top 10 Non-Food Brands

(Alphabetical Order)

Allegra

Cold/Allergy/Sinus Tablets

John Frieda Precision Foam Colour

Hair Coloring

Source: SymphonyIRI New Product Profiler™

Clairol Nice ‘N Easy Color Blend Foam

Hair Coloring

Kibbles ‘n Bits Bistro Meals

Dog Food

Colgate Optic White

Toothpaste, Toothbrush/Dental Accessories

Milo’s Kitchen

Dog Food

Downy UNSTOPABLES

Laundry Care

Olay Body Collections

Soap, Women‘s Fragrances, Hand & Body Lotion

HUGGIES Little Movers Slip-On

Diapers

Sally Hansen Crackle Overcoat

Nail Cosmetics

The Rising Stars of the CPG world harness technology in a way that brings luxury to consumers across

non-foods aisles.


23 23


The power being harnessed by today‘s

most successful new launches is making

everyday tasks easier and/or more

enjoyable, it is bringing better results and,

in many instances, consumers are learning

that by up-spending on CPG products they

are actually saving money versus paying

for outside professional services.

Supported by advancing technology, new

ingredients, and growing consumer

demand, power-packed CPG products will

continue to enjoy a strong following in the

coming months and years.

Nurtured by Nature

Some of the ingredients and processes

built into today‘s most successful non-

foods launches are natural ingredients:

vitamins that nourish, plants that engage

the senses, antioxidants that ward off

ailments, etc. Nature truly is a powerful

source for CPG innovation. It will continue

to be a go-to source for manufacturers

across many categories—food and

beverage and non-foods alike—in the

years ahead.

Non-Foods: Trends to Watch

Innovation plays a defining role in the

future of the CPG industry. Detailed

throughout this report, manufacturers are

looking far and wide for new ingredients,

technologies and ideas that will help to

raise the bar on tomorrow‘s non-foods

products. In the next several years,

innovation in the non-foods arena will be

influenced by a number of trends, some of

which are evidenced on the food and

beverage aisles, and others that are

unique to non-foods.

As such, it is logical that manufacturing

processes that ―give back‖ to Mother

Nature will continue to be an important

driver of new product success for non-

foods manufacturers.

Sustainability is a trend that was discussed

earlier in this report, as an important trend

across food and beverage innovation. It is

certainly equally as important for non-foods

manufacturers. SymphonyIRI will

continue to monitor and report on

sustainability trends in the months to come. Power in Performance

Highlighted in SymphonyIRI‘s 2010 New

Product Pacesetters analyses, ―going pro‖

is a trend about professional-quality results

without the professional price tag. It is a

trend evidenced again among 2011‘s New

Product Pacesetters across a number of

non-foods categories, including cosmetics,

skin care, cold/allergy/sinus, and oral care.

Today, a variation on ―going pro‖ is

unfolding in the food and beverage arena,

where CPG manufacturers are bringing

gourmet and restaurant quality food into

the homes and into budgetary reach of

many consumers.

Sustainability


24 24


Convenience stores play a vital role in

providing consumers quick and easy

access to CPG solutions. For that reason,

the ranks of the top-selling new brands

within the convenience channel frequently

tout a variety of indulgent, often immediate-

consumption, products. In 2011, this was

certainly the case.

Mentioned earlier in this report, 55% of

consumers are eating out less frequently

today versus before the start of the

economic downturn. Still, the United

States is very much a ―need it now‖ culture.

As such, it is no surprise that many of the

convenience channel‘s top-selling new

brands are quick and easy-consumption

food and beverage products.

Four of the top 10 new launches in 2011

within the convenience channel were

beverage products. Two of these

beverages are positioned as ―recovery‖

products—products that provide what you

need, when you need it.

High-selling Gatorade Recover 03, for

instance, provides protein that helps

muscles recover after a workout or

competition. Meanwhile, Rockstar

Recovery is an herbal blend combined with

B-vitamins, caffeine and electrolytes in a

smooth, powerful easy-to-drink beverage.

The other two beverages at the top of the

convenience store top new products list

are making a splash with digitally-infused

1. Mountain Dew DEWmocracy 2

2. Rockstar Recovery

3. Peace Tea

4. Marlboro Snus

5. Wrigley‘s 5 React

6. SNICKERS Peanut Butter Squared

7. MUNCHIES Crackers

8. Wrigley‘s Extra Dessert Delights

9. DORITOS Burn Notice

10. Gatorade Recover 03

Carbonated Beverage

Energy Drinks

Tea/Coffee Ready-to-Drink

Smokeless Tobacco

Gum

Chocolate Candy

Crackers

Gum

Salty Snacks

Sports Drinks $20.6

$21.2

$21.4

$28.6

$29.8

$32.4

$35.7

$41.9

$60.3

$85.3

Convenience Stores: Top 10 Pacesetters

2011 New Product Pacesetters: Top 10 Convenience Store Brands


(Excluding Walmart)


The ranks of the best-selling launches within the convenience store

arena reflect the power of easy-access indulgence in products well-

suited for immediate consumption.

indulgence in chocolate, too. If you like

peanut butter and chocolate, you‘ll love

Mars‘ new product: SNICKERS Peanut

Butter Squared.

Convenience stores are a destination

channel for spontaneous and often

indulgent purchases. As such, new

products within this channel are measured

against a different bar versus that used in

other CPG channels. Product packaging,

positioning and messaging must carefully

align with the special nature of this

important CPG channel.

grassroots marketing. Marketers of both of

these products are encouraging

consumers to become part of the product

development and marketing process by

voting on product flavors and packaging,

and by actively sharing their experiences

with other avid followers.

Mars boasts three brands amidst the top

10 launches within the c-store channel.

Two of those products, Wrigley‘s 5 React

and Wrigley‘s Extra Dessert Delights, offer

experiential gum chewing that is sugar-

free. Mars successfully notched-up


25 25


Conclusions: CPG Manufacturers

New Product Planning

Continually track market and consumer trends across and outside of the

CPG industry to identify opportunities to develop products that meet

consumers‘ existing and emerging needs/wants

Leverage shopper marketing to achieve a deep understanding of unmet

and emerging needs across niche and high-growth consumer segments

Learn from the leaders: Examine the foundation that makes strong

leaders in the food and beverage and non-food sectors

Leverage detailed market assessments and modeling to set realistic and

achievable forecasts for new product launches

Distribution and Merchandising Strategies

Ensure distribution strategy closely aligns with the new product target

consumer and optimal store mix

Integrate new media into traditional marketing efforts to create excitement

and buzz and early often throughout the decision and purchase process

Build trial and repeat by co-merchandising 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

Measure and monitor actual versus projected sales growth in aggregate,

across consumer segments and by store

Provide ongoing promotional support beyond launch and year-one to

encourage continued momentum into and throughout year two

Ensure metrics provide an intimate understanding of attitudinal feedback

as well as sales tracking and benchmarking

Benchmark and track competitive launches to stay in tune with emerging

opportunities and threats

Manufacturers seeking to benefit from the power of innovation as they develop new

products that bring fun, excitement and performance to daily tasks should consider the

following action items:


26 26


New Product Selection

Continually track market and consumer trends across and outside of the

CPG industry to identify opportunities to bring to market products that

meet consumers‘ existing and emerging needs/wants

Leverage shopper marketing to evaluate new products against the

needs/wants of key shopper segments and trip missions; focus support

heavily against the 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

Build trial and repeat by cross-merchandising or co-merchandising

products that are highly relevant to key and target shopper segments

At the market level, leverage consumer-centric marketing platforms (e.g.

restaurant in the home, professional performance at home) that reflect

core needs and wants of key shopper segments

Benchmarking and Tracking

Benchmark and frequently monitor projected sales across target shopper

segments at the store level

Ensure metrics provide an intimate understanding of attitudinal feedback

as well as sales tracking and benchmarking

Measure brand impact on total category sales

Conclusions: CPG Retailers


Retailers seeking to benefit from the power of innovation as they develop new products that

bring fun, excitement and performance to daily tasks should consider the following action

items:

27 27


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

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 that enable 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™


28


FOR MORE INFORMATION

Please contact Susan Viamari at

[email protected]

with questions or comments about this

report.

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150 North Clinton Street

Chicago, IL 60661

Telephone: +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.


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Documents

2011 New Product Pacesetters - The Food Institute · Targeted Innovation Rules the Day in 2011 Larry Levin Executive Vice President/General Manager, Consumer Insights SymphonyIRI