• by Karlene Lukovitz  @KLmarketdaily, April 1, 2011

2010's most successful new food/ beverage product launches served consumers' heightened emphases on in-home consumption and health and wellness, while also delivering on taste and convenience, according to Symphony IRI's "New Products Pacesetters" 2011 report.

The Pacesetters, unveiled during SymphonyIRI's Group Summit 2011, include food/beverage and nonfood CPG products that reached at least $7.5 million in first-year sales across U.S. food, drug and mass (excluding Walmart) retail channels.

Within the food/beverage CPG arena, the 10 top-performing new products were Powerade ION4 ($190.5 million), Chobani ($149.4 million), Wonderful Pistachios ($114.1 million), Glacéau Vitaminwater Zero ($110.3 million), Nature's Pride ($80.8 million), Trop50 ($74.4 million), Thomas' Better Start ($74.2 million), Green Mountain Coffee K-Cups ($62.1 million), Budweiser Select 55 ($59.5 million) and Trident Layers ($53.9 million).

Just 26% of total food/beverage launches (and 17% of nonfoods launches) achieved $7.5 million or greater first-year sales in 2010. Total food/beverage CPG launches have slowed in the past two years, declining from 859 in 2008 to 659 in 2009 and 647 last year, while nonfoods launch numbers have continued to grow (rising from 936 to 957 between 2008 and 2010).

However, among launches making the Pacesetters sales threshold, food/beverage outperformed nonfoods in total dollar sales ($68.8 billion versus $60.6 billion). For example, 2% of food/beverage launches versus 1% of nonfoods launches realized sales in the $50- to $100-million range, and 11% of food/beverages versus 7% of nonfoods realized sales in the $10- to $20-million range.

Brand extensions represented 88% of food/ beverage launches (and 92% of nonfoods launches). But new food/ beverage brands, while riskier propositions, outperformed extensions' average sales by 61%, largely due to a handful of blockbuster new brands. New food/beverage Pacesetters brands realized total sales of $42.4 billion, versus extensions' $26.4 billion.

While there is a substantial advantage in coming to market with established brand equity, particularly in difficult economic times, new food/beverage brands have historically outperformed extensions, and this remains true even in the current unstable economy, points out the report -- which this year is themed "Innovating Growth in a Down Economy."

In terms of benefits, taste and variety were clearly dominant factors in driving launch success --although, importantly, large percentages of Pacesetters also offer health/wellness and/or convenience factors. Fully 75% of Pacesetter food/beverage launches offer flavor/recipe variety, 73% offer "new/unique" recipes, 39% offer "distinctive/new" flavors, 22% "different texture" and 17% "improved" flavor or taste.

In addition, one-third offer convenience/ready-to-serve benefits, and 25% offer bite-size/hand-held formats.

Growing Health/Wellness Impact

Fully 30% of Pacesetters food/beverage launches (including top-10 products Chobani, Wonderful Pistachios and Nature's Pride bread) offer natural and/or organic ingredients -- up from an average of 16% offering such ingredients between 1997 and 2009. Added vitamins/ nutrients and high fiber/whole-grain benefits are each offered by 27% of Pacesetters, up respectively from 19% and 10% averages in prior years.

Reduced calorie and lower fat/fat-free launches each represented 25% of Pacesetters (each up from 17% prior years' averages). Products offering energy/protein benefits represented 12%, versus 6% historically; those with antioxidants represented 11% (up from 4%); those with no trans fat represented 10% (up from 4%); and those with low salt/sodium accounted for 6% (up from 1%).

Not surprisingly, many 2010 Pacesetters offer two or more of these benefits.

Looking specifically at beverages, juice/milk/water launches jumped up to 41% of Pacesetter beverage dollars, versus 26% in 2002-2009, while carbonated sodas and sports/energy drinks dropped to 32%, from 45% historically. Beer/wine/spirits' share of beverage launch sales declined to 13% from a 22% historical average. But Americans' demand for new coffee and tea products continues to grow: These launches accounted for 14% of 2010 Pacesetters beverage sales, versus 8% in prior years.

Home Focus Drives Breakfast, Snacks

CPG makers' stress on addressing the demand for at-home/from-home meal solutions and snacks was particularly evident in two food/ beverage product usage groups. Breakfast solutions represented 34% of Pacesetter food/beverage dollars in 2010, up substantially versus an average of 23% between 2002 and 2009. (Health/wellness benefits clearly contributed to yogurts accounting for seven of the 32 Pacesetters breakfast solutions.)

Similarly, salty snacks innovation accounted for 22% of food/beverage Pacesetter dollars, more than double the historical trend of 9%.

Perhaps reflecting somewhat more fresh/from-scratch at-home cooking and/or healthier takeout/out-of-home prepared offerings from food retailers and restaurants, dinner solutions' share of sales was down slightly (15% versus 17% historically). Also, meal makers/light meals/appetizers declined to 11% versus the 16% prior years' average.

Also harking back to the health/wellness theme, "other" food usage categories -- largely higher-calorie items such as sweet snacks, desserts and sauces/spreads/dips -- dropped to representing just 10% of Pacesetter sales versus a 27% historical average.

Still, consumers clearly aren't about to give up small indulgences: candy and gum launches represented 11% of Pacesetter dollars, versus prior years' 6% average.