Better-For-You Food And Beverages Seen Among Top Successes In New IRI Report
Source IRI
Better-for-you foods and beverages were among the top foods and beverages of 2019, according to IRI's new report: 2019 New Product Pacesetters™. IRI will hold a webinar at 1 p.m. CT June 11 regarding the findings and the lessons they bring, which you can register for here.
IRI’s 2019 New Product Pacesetters Highlights Breakout Year for Both Food and Beverage and Nonfood Launches
New Report Features Return of the $100 Million Product Launch; Shows Both David and Goliath Can Win; Addresses Innovation Strategies During a Pandemic
June 01, 2020 09:05 AM EDT / CHICAGO--(BUSINESS WIRE)--IRI®, a global leader in innovative solutions and services for consumer, retail and media companies, announced today the release of its 2019 New Product Pacesetters,™ the 25th annual report highlighting the most successful new product launches across food and beverage, nonfood and convenience store sectors.
Both large and small companies were successful in 2019, thanks to consumers’ willingness to embrace an expanded range of product types and attributes. However, the big story of 2019 was the return of the blockbuster product launch. Six food and beverage New Product Pacesetters earned more than $100 million in multioutlet channels, as did four in the nonfood and beverage category. The last time the food and beverage category had at least six products break the $100 million mark was in 2012.
“It’s not just that these products eclipsed the monumental $100 million plateau, but this year’s 10 $100 million-plus launches account for 33% of all Pacesetter dollars, accentuating that big is back,” said Joan Driggs, vice president of Content and Thought Leadership for IRI.
Both Large and Small Companies Found Success in Their Own Ways
In 2019, 53% of New Product Pacesetters came from small companies (less than $1 billion in sales). Small companies are typically able to innovate quickly, demonstrate flexibility and act faster than their larger counterparts. The challenge for smaller companies is typically distribution power, but thanks to the “Shark Tank” effect, products like Kodiak Cakes® Power Waffles, chickpea-based Banza noodles and biodegradable, flushable Dude® Wipes were able to get noticed and distributed.
Big companies also made a splash in 2019, accounting for 24% of New Product Pacesetter products and half of Pacesetter dollars. While smaller brands have smaller budgets and typically rely on nontraditional media outlets, big brands dedicated 25-30% of sales dollars to advertising. For example, Gatorade G® Zero™ saw $154 million in multioutlet sales in 2019 and spent $39.5 million on advertising, according to Kantar Media reports. In contrast, the number one food and beverage New Product Pacesetter, Bang® Energy drinks, spent $2,200 on traditional media but generated almost $300 million in multioutlet sales.
“If only one thing is true about New Product Pacesetters year in and year out, it’s that the formula for a winning product, no matter the size of the company, is having the right product in the right place at the right time for the right consumer,” said Driggs. “This year’s New Product Pacesetters stand true to that testament, with both small and large brands achieving success thanks to smart distribution strategies and personalized targeted marketing initiatives.”
Food and Beverage Leaders Highlight Better-for-You Attributes
While 2018 New Product Pacesetters’ top 10 primarily featured sweet and indulgent foods and beverages, 2019’s top 10 shifted toward natural, pure and non-GMO ingredients. In 2019, three of the top 10 and 25 of the top 100 food and beverage New Product Pacesetters offered non-GMO benefits, with products including SlimFast® Keto, PERDUE® SIMPLY SMART® Organics and Arnold®, Brownberry® and Oroweat® Sandwich Thins®.
A brand that exemplifies innovation and better-for-you attributes is number two on the food and beverage New Product Pacesetters list, Enfamil® NeuroPro™, a revolutionary baby formula that features milk fat globule membrane, which is found in breast milk and supports cognitive development in brain structure and function. This one-of-a-kind baby formula is the first major scientific enhancement in the baby formula market since DHA fortification became FDA approved more than two decades ago.
