Progressive Grocer Product

Summer 2016

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8 Progressive Grocer Products Showcase / Summer 2016 In addition, normally less than 10 new launches a year capture more than $100 million in year- one sales. In 2015, nine brands accomplished this feat, IRI reports. "CPGs need to manage expectations for launch-year sales," Viamari says. "We have consistently seen that more than half of even the most successful product launches do not hit $20 million in year-one sales." While this is partly due to a targeted approach to innovation, it is also because many products do not reach their full potential in the frst year on the market. CPGs need to continue to support their brands beyond year one driving trial and encouraging repeat behavior, Viamari says. Strong Brands Strengthen Categories An important beneft of new products, particularly New Product Pacesetters, is that they generate trial and drive excitement. New products that consumers have a good experience with generate repeat purchases and ultimately drive sales for their categories. NPP ofer an excellent example of new launches that work hard in the marketplace, and, in turn, capture signifcant sales for their categories across CPG. For example, large gains in the healthcare segment were supported by 12 new healthcare launches that reached NPP level in 2015. In addition, fve healthcare launches reached the top 25 NPP ranking in 2015. These products ofered consumers convenient and efcacious home-based remedies for problems ranging from headaches to foot troubles, IRI reports. Nexium 24HR (No. 1 non-food NPP), which switched from prescription to over-the- counter heartburn medication, was the largest contributor in the healthcare category, reaching frst-year sales of more than $270.1 million, IRI reports. In comparison, 2014's top-selling prescription to over-the-counter medication launch, Nasacort Allergy 24HR, generated $100 million less in sales. Nexium 24HR's crossover also helped to drive median year-one sales for non-food 2015 Pacesetters overall. For food and beverage categories, the meal makers and appetizers segment saw 11 launches achieve 2015 NPP status, generating growth of 2.7 percent from 2014 to 2015. The most successful launch in this sector was Oscar Mayer Deli Fresh Bold (No. 2 food and beverage NPP). Consumers enjoyed the packaged meat's favor variety and excitement, IRI fnds. 2015 NPP also didn't need to be blockbusters to grow share, particularly when share growth occured in a category that is already growing. The topline growth can be substantial, IRI reports. For example, Breyers Gelato Indulgences contributed slightly less than $217 million to Unilever 's topline revenue in its frst year. The product, though, captured more than three share points in a category that grew fve points in 2015. Overall, 12 of the top 20 NPP captured increased segment dollar share. For example, Nexium 24HR captured 14 points dollar share gain in a category that saw growth of 11 percent and vendor revenue gains of $302 million between 2013 and 2015. On a smaller scale, Cobblestone Bread Co.'s fresh bread and rolls captured 1 dollar-share point in a category that saw 1 percent growth and generated $142 million in revenue gains for its vendor. Another example, Always Discreet helped cover feature "Indulgence and excitement are long- standing food and beverage trends, but technology and new ingredients continue to make both more pronounced." — Susan Viamari, IRI Coffee $ 172.7M $ 78.9 M Frozen Dinner/Entrees Luncheon Meats $ 146.2 M Rfg. Juices/Drinks $ 70.5 M Yogurt $ 108.0M Ice Cream/Sherbet $ 66.9 M Milk $ 87.1M Yogurt $ 83.6 M Cheerios Protein Yoplait Greek 100 Whips! McCafé 1 Oscar Mayer Deli Fresh BOLD Dannon Oikos Triple Zero 3 fairlife 4 5 2 Simply Juice Drinks Chili's at Home 6 Breyers Gelato Indulgences 8 Cobblestone Bread Co. 9 10 7 $ 60.2 M Cold Cereal $ 49.8 M Source: IRI Market Advantage™ Top 10 Food & Beverage New producT paceseTTers

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