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N E W P R O D U C T PA C E S E T T E R SProduct Innovation and the Pace of ChangeM AY 2 0 1 9
SPECIAL REPORTProduct Innovation and the Pace of Change“Change has never happenedthis fast before, and it willnever be this slow again.”–Graeme Wood, journalistConsumer behavior is an apt barometer forgauging the pace of change, particularlyinteraction with the CPG retail industry. Witnessthe rapid adoption of e-commerce purchases — upmore than 35% in 2018 from 2017, according toIRI data — mobile payments, delivery and pickupadoption, and increasing usage of mobile devicesfor managing all aspects of daily life, be it personalwell-being, work, home or social.A mantra for 2018 might well be “time energy.”New Product Pacesetter trends support this, withmany products working overtime so consumersdon’t have to, and making them feel they’ve madesmart choices for a well-lived life. Multi-benefit foodproducts span dayparts and aim to pack variousnutritional elements — including high-protein,vitamins and naturalingredients — with easeof use (Birds Eye VeggieMade Mashed, EatingWell Dinners, QuakerOvernight Oats).Perhaps overrepresented —accounting for nearly 800 million in sales — inNew Product Pacesettersare indulgent items (topfood Pacesetter KinderJoy, M&M’s Caramel,Duncan Hines Perfect Size for 1, Hershey’s Gold,Ben & Jerry’s Pint Slices, Blue Bunny Frozen BunnySnacks, Hostess Bakery Petites, among manyothers), which consumers turn to as a reward forkeeping up with their own fast-paced lives andcontinuing a trend of the last couple of years —consumers allow for indulgence as part of theiroverall eating mindset.Non-food items also bundle benefits,notably layering appealing scents on top offunction, such as withcleaning (Clorox Scentiva,Tide Pods Plus Downy) andpersonal care products(Dove Go Fresh Rejuvenate,Softsoap Pure Zen), orremoving unwanted odorsfrom laundry products (LysolLaundry Sanitizer) to storagecontainers (Sterilite FreshScent Storage).NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeWhile the products in this report are new, theoverarching themes they address have beenbubbling for years: The focus of 2018 productinnovation is on delivering against consumerexperience and expectations, with the simplicity ofingredients and usage.Consumers want to own their health, but look toproducts, retailers and others to make them feelempowered. Similarly, they want to support theirloved ones by providing a safe, clean space andhealthy food and drink options. But consumersacross generations are time-crunched and oftenskill-challenged. Continuing a trend of recent yearsis the popularity of small indulgences to rewardthose efforts. From candy and frozen noveltiesto bite-sized baked goods and healthy snacks,marketers are demonstrating that treats have a rolein overall wellness.The 23rd annual IRI New Product Pacesetters reportprovides insights into 2018’s top new productlaunches and the marketing stories behind them.It also offers a glimpse into how big data andadvanced analytics will help to raise the bar on newproduct development going forward. Indulge yourmind to learn how savvy marketers have answeredthe consumer call for convenience, value and smallrewards across food and beverage, non-food, andconvenience store sectors to become enshrined inIRI’s 2018 New Products Pacesetters.IRIworldwide.com2
SPECIAL REPORTOn TargetIn his opening remarks at IRI’s 2019 Growth Summit,IRI CEO Andrew Appel stated that the CPG industryused to be about the big eating the small. Now, it’sthe fast eating the slow. 2018 Pacesetters indicatethat small companies are acting fast, but they’realso acting with purpose. Rather than trying to beall things to all consumers, companies big andsmall are succeeding by understanding evolvingconsumer behavior and investing in innovation andnew business practices to deliver the right productsefficiently to receptive audiences.since tracking the size of the companies launchingNew Product Pacesetters (NPP), IRI reports thatmore than half of Pacesetter companies have salesof less than 1 billion.The biggest decline in NPP launches has comefrom the middle, companies with sales between 1 billion and 5 billion, with both the number ofPacesetter launches and dollar sales declining forthe past several years.51%Findings from the seventh annual Growth Leadersreport from IRI and Boston Consulting Group (BCG)are culled from more than 425 public and privateCPG companies with annual sales of more than 100 million in measured retail channels and closelymirror analysis of Pacesetter data. According to IRIBCG data, approximately 20 billion in industry saleshave shifted away from large and medium to smallerand private label manufacturers since 2013.“The CPG companies winning in today’s marketplaceare doing so because they drive volume, maintain atargeted approach to mergers and acquisitions, andact on the consumer trends influencing purchasebehavior,” Krishnakumar (KK) Davey, president of IRIStrategic Analytics, said in a release announcing theIRI-BCG Growth Leaders research.BUTof NPP CompaniesAre Small Companies54%of Dollar SalesAre Big CompaniesCompany Size as % of Total New Product %34%49%Big Companies 5BMedium Companies 1B to 5BSmall Companies 1B40%54%IRI has observed that over the past several years,smaller companies account for an increasingpercentage of Pacesetter products. For the first timeBig companies (sales of more than 5 billion)account for just 22% of Pacesetters by count, butmore than half — 54% — of Pacesettersales. Such blockbusters as MarsInc.’s M&M’s Caramel, GeneralMills’ Oui by Yoplait and PepsiCo/Quaker’s Gatorade Flow are addingmillions to the bottom lines of theirparent companies.41%20%49%60%62% NPP14 NPP1352%36%Source: IRI Market Advantage 0%NEW PRODUCT PACESETTERS: Product Innovation and the Pace of Change NPP18 NPP17 NPP16 NPP15 NPP12IRIworldwide.com3
SPECIAL REPORTThe decline in average Pacesetter dollar sales isn’tcorrelated to company size. Rather, it’s a reflectionof increasingly targeted product development andmarketing — and acknowledgement of changingdemographics of the United States and the waysconsumers learn about and engage with brandsand companies. Mass market is declining, butsmartly targeted markets are growing. Winningcompanies grow by staying true to their missionand growing dollar sales along with their increasingunderstanding of consumer wants and behaviors,capturing adjacent white space or acquiringcompanies that have already demonstrated strengthin an emerging area.A miss that IRI has witnessed repeatedly is thatcompanies continually forecast product sales basedon outmoded market models. Rather than basing aforecast off a previous successful launch, marketersshould start with measuring the opportunity — thesize of the target audience for the new product. Aproduct’s opportunity for building a loyal base isonly as big as the potential buyer base. Starting withthe right forecast is one way the big can becomethe fast. Several of these smart launches add up.Just ask PepsiCo, which has seven products totalingmore than 246 million in Pacesetter sales in 2018.Or General Mills, also with seven products in thePacesetters list for 2018, totaling 177 million.Total New Product Pacesetter Sales(Food & Beverage and Non-Food)Total Pacesetter contributions tell a similar story.The difference in total Pacesetter sales dollars from2012 to 2018 declined by nearly 3.4 billion, butit’s not detracting from overall CPG industry sales.Total IRI-measured multi-outlet channels (outsideC-store) sales growth was up 1.7% in 2018, beyondthe increase of 1.2% in both 2017 and 2016. Whiletotal Pacesetter dollar contributions are down, theupside of these strategic launches is the momentummany brands maintain into year two and beyond.Seventy percent of 2017 Top 10 New Product foodPacesetters grew or maintained sales in year two.Annual Pacesetter Product Sales AveragesNon-FoodFood & Beverage 8.0B 45M 7.0B 40M 35M 6.0B 30M 5.0B 25M 4.0B 20M 3.0B 15M 2.0B 10M 1.0B 5M 0 0.0B2018201720162015201420132012Source: IRI Market Advantage NEW PRODUCT PACESETTERS: Product Innovation and the Pace of Change2018201720162015201420132012Source: IRI Market Advantage IRIworldwide.com4
SPECIAL REPORTWhat We’re Buying, and WhyIRI’s annual New Products Survey shows that morethan a quarter of U.S. consumers boast with pridethat they are “early adopters.” These influencers canplay a vital role in driving product adoption of newproduct launches. On the other hand, more thantwice as many consumers take a “wait andsee” approach to new products, perhaps waitingfor those early adopters to endorse products.Those at the highest end of the household incomespectrum are most likely to claim early adopterstatus, likely because these consumers can riska miss with a new product. It also affords thembragging rights for discovery among their peers.Households with kids also over-index as earlyadopters, evidence that parents’ quest to find foodsthat keep the entire family happy is ongoing.Just as consumer confidence ebbs and flows, sotoo does the percentage of consumers identifyingthemselves as early adopters. IRI’s ConsumerConnect Survey of late 2018 indicates thatconfidence was high, which is mirrored in IRI’s2019 New Products Survey. Slightly more consumersare eager to gamble on new products in 2019 thanthere were in 2018. Two-thirds (65%) of respondentsto IRI’s 2019 New Products Survey indicateconvenience is a key driver for trying new food andbeverage products. That number jumps to 73% forhealth care products and 75% for beauty/personalcare products; and 56% of respondents buy newhome care products because it “makes it easier forme to get my housework done.”What is your approach to new food and beverage products?I am an early adopter; I like tohave the latest and greatest13%26%I tend to take a wait and seeapproach with new productsI generally don't purchase newproducts in this category61%Source: IRI 2019 New Products SurveyEarly adopters might benefit from “discoverer” braggingrights, but most consumers prefer more informationbefore trying new products.NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeIRIworldwide.com5
SPECIAL REPORTThe continual enhancementand bundling of benefits forlaundry products — see topnon-food Pacesetter TideUltra Oxi, and Tide PodsPlus Downy — leads us tomarvel that these productsdon’t wash, dry and fold our laundry. Turns out, theTide brand does. Tide’s national expansion of itswash-dry-fold laundry service leaves the laundryaverse or time-crunched to focus on other pursuits.While 2018 Pacesetter products don’t quite answerthe convenience call the way Tide Cleaners do,they do demonstrate multi-benefit or very specifictime-benefit innovation,including SchickIntuition f.a.b. (forwardand backward) razor;Arm & Hammer Slidenon-stick cat litter; orFlonase Sensimist multisymptom nasal spray.Beauty care is the perennial leader inPacesetter non-food sales, and 2018 wasno exception, with the category holding28 Pacesetters. Eye makeup items aloneinclude L’Oréal Voluminous Lash Paradise,Maybelline Total Temptation, MaybellineTattooStudio, L’Oréal Voluminous X Fiber,L’Oréal Infallible Pro-Last, Maybelline The City Mini,CoverGirl Peacock Flare, CoverGirl Total Tease,Kiss Lash Couture, Maybelline Curvitude, L’OréalBrow Stylist Shape and Fill, and Maybelline MasterPrecise Ink. However, it is notable that there were 40Pacesetters in the beauty category in 2017. Othercategories bubble up in a number of new offeringsbut haven’t been able to best the beauty category.Number of NPPsNPP Salesin Millions*% Dollar Share ofNon-Food NPPBeauty Care28 511.922%Personal/Hygiene Care22 314.714%Pet Care18 474.820%Health Care12 437.219%Home Care9 357.515%General Merchandise6 144.46%Air Fresheners & Candles3 30.81%Baby Care1 34.11%Non-Food Product Usage Groups, 2018Paper, Plastic & FoilsTotal Non-Food1 12.71%100 2.3B100%*Numbers are roundedSource: IRI Market Advantage , new products that completed their first year in calendar year 2018NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeIRIworldwide.com6
SPECIAL REPORTOn the food and beverage side, protein-rich JimmyDean Simple Scrambles and Healthy Choice PowerBowls, as well as ultra-convenient Keebler Pita/Flatbread and Hummus,and Barilla Ready Pastameals all deliver byleveraging theall-importantconvenience factor.Barilla not only offers pouches of cooked pasta, italso offers full meals. No need to boil pasta or opena jar of sauce. Kellogg’s Keebler brand has takenthe extra step of pairing its pita crisps and flatbreadwith hummus for an on-the-go snack. IRI’s 2019State of the Snack Industry webinar states that 47%of consumers eat snacks more than three times aday, up 4 percentage points over 2015.Dinner Solutions and Breakfast Solutions categorieshad the most Pacesetters in 2018, 17 and 15,respectively, accounting for nearly 40% of totalPacesetter food dollar sales.All beverage categories combined included 18Pacesetters products, with energy drinks and sportsdrinks out-muscling traditional soft drinks andbeverage alcohol products.Number ofNPPsNPP Salesin Millions*% Dollar Shareof NPPDinner Solutions17 433.319%Breakfast Solutions15 429.719%Candy & Gum13 418.919%Salty Snacks10 210.09%Carbonated, Sports & Energy Drinks6 194.39%Desserts7 137.56%Meal Makers/Light Meals/Appetizers6 98.54%Sauces, Spreads, Dressings, Dips & Condiments7 83.24%Juice, Milk & Waters6 66.53%Sweet Snacks3 57.33%Coffee & Teas4 43.22%Baby Food Products4 39.42%Food Product Usage Groups, 2018Beer, Wine & SpiritsTotal Food & Beverages2 23.31%100 2.2B100%18 beverageproductscontributed 327.3 millionin Pacesettersales.*Numbers are roundedSource: IRI Market Advantage , new products that completed their first year in calendar year 2018NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeIRIworldwide.com7
SPECIAL REPORTModeration Gains MomentumNearly 75% of respondents to IRI’s consumer surveybalance health and wellness with indulgence,albeit to varying degrees. Edging out the 80%healthy/20% indulgent group (35% of respondents)are the 38% who “eat healthy about half the timeand eat whatever I want the other half of the time,”which is up from 36% who reported this approachin 2018. Households with kids are most likely totake this 50/50 approach as they strive to feedchildren healthy foods, but often cave to their kids’demands and use treats as a reward or bribe just being honest, here, folks. Consumers age 55 ,those with high household incomes and Asians aremore likely to put themselves in the mostly healthy80/20 cohort.While Rx to OTC products stick to the clinicalapproach of their prescription precursors, mostproducts promote the ease of adopting healthyhabits. Olly’s mission is to “make nutritiondelightfully easy.” And Activia Dailies promotethe ease of working probiotics into a healthyroutine. Oui by Yoplait worksfrom the base of healthfulprobiotics, but changesthe yogurt experience witha simple, crafted, Frenchapproach to pleasure and food.Snacks with a healthy halo are also hitting the markwith consumers. Portion control (Duncan HinesPerfect Size for 1), more nutritious ingredients(RXBAR) and even healthier manufacturing methods(think baking vs. frying) (Lay’s Poppables and RitzCrisp & Thins) deliver indulgence with a smallerslice of guilt.Which of the following best describes your attitude toward eating?I eat healthy abouthalf the time, and eatwhatever I want theother half of the time38%36%I eat healthy about 80%of the time, and allowfor indulgence the other20% of the time35%36%I pretty much eatwhat I want, with littleconsideration for nutritionalintake and calorie countI follow a strict diet,monitoring the typesof food I eat andportion sizes22%23%5%5%Total Respondents 2019Base: 2,468Total Respondents 2018Base: 11,485Source: IRI 2019 New Products SurveyNEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeIRIworldwide.com8
SPECIAL REPORTWhen asked about attitudes toward food andbeverages, more than 6 in 10 (62%) agree“the food and beverages I consume play animportant role in supporting my health.”Those who consider themselves Avid EarlyAdopters dramatically over index in agreeingwith this statement, as well as, “eating well willimprove my quality of life,” among other nutritionalstatements. Avid Early Adopters, just more than25% of U.S. consumers, dramatically over indexin their response to a number of attributes newproducts promote, including sustainability,healthfulness, convenience, simple ingredientsand compliance with a special diet. These arethe “super consumers” marketers should betargeting. They demonstrate they’re looking forhealthier, convenient offerings and they’re willingto buy. If the experience matches or exceeds theirexpectation, they’ll not only come back, but they’llshare their “find” with others. Consider them yourcoveted brand ambassadors.26%of U.S. consumers areAvid Early AdoptersHow much of an impact do the following have in your interestin new food and beverage products?TotalAvid EarlyAdopterNew ProductEnthusiastLaggardBase: 197Base: 427Base: ss67%81%68%65%Convenience65%80%70%62%Simple omplies with a special diet31%51%39%28%Source: IRI 2019 New Products SurveyNEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeIRIworldwide.com9
SPECIAL REPORTBecoming Part of the (Positive) ConversationWhen journalist Graeme Wood penned the quote“Change has never happened this fast before, andit will never be this slow again,” he was referringto social media and its influence on the ways andspeed at which we communicate. Digital InformationWorld estimates that internet users are spending anaverage of 2 hours and 22 minutes per day on socialnetworking and messaging platforms.As Norty Cohen writes in “Join the Brand: BuildingLoyal Communities and the Need for Belonging”(2018, Idea Press), today, everyone is a smartphonecontent creator. People want to connect withothers, and a shared like — or dislike — of a brandis a great way of “acting like a friend.” As muchas brands are part of social media conversation,consumers want to talk to friends, not with brands.And when friends make a recommendation, it’s2.5 times more effective than TV, Facebook andYouTube advertising combined. For brands tobecome “friends,” they have to build genuinecommunities, which starts with a compelling reasonfor people to join, including perceived value orreward for being an engaged member.New Product Consumer Sources of Influence: How does each of the followingsources influence your awareness of new products?(Top Two Box)TotalRespondents2019Avid EarlyAdopterNewProductEnthusiastLaggardTelevision or radio advertising25%51%38%19%In-store flyers33%62%41%28%Signs or displays in the store32%64%45%26%Item price74%85%79%71%Product label/packaging37%67%53%31%Shopper loyalty card discounts56%78%68%51%Previous usage/trust of the brand80%87%87%78%Newspaper circulars from home34%61%36%30%Coupons from home55%77%66%50%Information from website or email31%61%42%25%Information from blogs/social networking sites23%56%34%17%Smartphone apps24%56%35%18%In-store kiosks21%49%29%16%In-store touch screen digital signs14%41%21%10%Mentioned/recommended by store clerk22%48%32%16%Mentioned/recommended by family or friend60%75%73%55%Source: IRI 2019 New Product SurveySocial networking siteshave more influence onconsumers than televisionor radio advertising.NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeRecommendations fromfamily/friends carry nearlythe same weight as loyaltycard discounts and coupons.IRIworldwide.com10
SPECIAL REPORTGaining the Social AdvantageCase Study: Love Beauty and PlanetMany brands have benefitedfrom engaging shoppersvia social media. IRI’sSocial Advantage is asocial listening solutionthat elevates social datathrough the integration ofretail performance data tounderstand consumer behavior, preferences andsentiment, which can greatly inform strategies togrow and protect CPG brands.Unilever’s Love Beauty and Planet encouragedconversation by promoting its “movement” and“tribe” on its website, making it easy for consumersto tap into product attributes and join a communitybased on “daily small acts of love” that help restorethe balance and beauty of the planet, and inspiringaction with involvement in Ashoka Changemakers.Over the course of 2018, chatter about Love Beautyand Planet was immensely upbeat, with 92%positive across nearly 22,000 posts captured byInfegy. Many social posts reflect user experience,with comments on how nice the products smell,and how well the shampoo and conditioner work.Females (77%) are more likely to be commentingon the brand than males (23%); and thosecommenting peak in the 25-34 age range, whichmirrors IRI’s profile of the brand's demographics.Topics also included ingredients, such as argan oil,organic coconut and murumuru butter, and productattributes associated with the brand, including crueltyfree, ethically sourced and recycled packaging.TrendsThemesWeek of 3/28/2018Top Topicsshampoo andgreatproductsCheckButter & RoseUnileverPurchase Intent23%14%ExpectationAcquisitionDemographicsbody lotionbrandrecycled plasticsmells amazing100% recycledMimosaOil & YiangOil & LavenderArgan Oil23%packagingbetterI have triedtodaysmall actsPlanet products77%I thinkCoconut WaterWater & Mimosaethically sourcedscentfavoriteFlowerhair carevegan cruelty freeYiang Yiangbody washshowerbeauty products7.5% NegativebestBeauty and PlanetI loveLove BeautyAlwaysCostI really don'tconditioner Organic coconutCoconut OilConditioner MarketI used92% PositiveMurumuru Butterdry shampoowork3.7%Week of 3/24/201921,824 Total Postsgood8.9%13-1819-24 25-34 35-4445-5455-6465 ChannelsShea ButterrightMicroblogsBlogsImagesSource: IRI Social Advantage “In the universe of social media, the conversationsaround Love Beauty and Planet are focused ontopics that align nicely with what the brand hopespeople will be talking about, not just about users’NEW PRODUCT PACESETTERS: Product Innovation and the Pace of Changepersonal experiences with the products, but thesustainability messages that are such a big part ofthe brand’s positioning,” says Todd McClimans,product manager, IRI’s Media Center of Excellence.IRIworldwide.com11
SPECIAL REPORTCase Study: OllyNewcomer Olly is successfullybuilding a community aroundhealthy lifestyle, with more than8,000 social media posts froma variety of consumers, not justthe millennials the brand originally targeted: 61%of posters were female, with 39% male, and spikesin age of posters include 25-34 and 45-54. Whilethere appears to be a spike in negative reviewstoward the end of the year, a deeper dive revealsthey may not actually all be negative. Statementssuch as “Ran out of my Olly gummies for sleepand ugh I need them” and “These Olly melatoningummies knock me the %*@ outttt” both containnegative words, but in this case, the spin is positive.Topics and hashtags go beyond the Olly brand andformats (gummy vitamin and dietary supplements)to need states: goodbye stress, restful sleep, skin,digestive health — which was co-founder Eric Ryan’soriginal intention. Ryan stated when the brand firstlaunched that rather than focus on the ingredientsin Olly, he focuses on the benefits. So instead ofmarketing melatonin, the brand sells sleep.Interestingly, Ryan was the developer of Methodnatural cleaning products, which he sold to Ecoverin 2012. Similar to the approach taken in thedevelopment of Method, vitamins and supplementswere a category in need of reinvigoration, includingformats, positioning, packaging and marketing.Unilever must have liked the Olly buzz; in April 2019the company announced plans to acquire Olly for anundisclosed sum.TrendsThemesWeek of 3/22/2018Week of 3/17/20198,406 Total PostsTop Topics87% PositiveJapanavailableDietary SupplementsGlobal ProbioticsMarket ResearchworkTargetGoodbye StressGummy VitaminregionsNEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeChinaTopskinbestsleep gummiesApplicationOlly Goodbyeresearch tionVitamins and Supplementsmarket shareEuropePurchase IntentDigestiveOlly VitaminsGummy VitaminhelpCostrightLifetry5.9%DemographicsMarket reportRoomPricefavorite13% Negative12%EnzymesNature’sCountriesplayingmarket growthbodyproductsType and Applicationcare13-18stdRestful Sleep winmarket size19-24 25-34 35-4445-5455-6465 North AmericaChannelsDigestiveMicroblogsGummy SupplementBlogsImagesSource: IRI Social Advantage IRIworldwide.com12
SPECIAL REPORTNew Product Pacesetters2018 Pacesetters Deliver Against Experience, Expectation and Simplicity:Experiential: a memorable and positiveexperience, delivering indulgence, hittingmultiple senses with products that havepleasing or exciting elements.Expectation: meet consumer expectationfor functionality and satisfaction, whetherit’s energy, promised results or support of ahealthy and active lifestyle.NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeSimplicity: deliver against consumer demandfor easy-to-use natural products, with cleanlabel statements, limited ingredients and apositive impact on the environment.IRIworldwide.com13
SPECIAL REPORT201720192Top 10 Pacesetters: Food & BeverageIndulgence — often in moderation — presentsas a trend among the most successful of2018's Pacesetters.3M&M's CaramelMars5120.6 M6Chicago Bar Co./Kellogg's8PepsiCoSalty Snacks 51.69Gatorade Flow M778.1MMtn Dew IcePepsiCoFrozen PotatoesCarbonated Beverages 59.9MRitz Crisp & ThinsMondelēzInternational 49.1NEW PRODUCT PACESETTERS: Product Innovation and the Pace of Change1059.9MDuncan Hines Perfect Size for 1Pinnacle FoodsBaking Mixes, Hot Cereal,Dessert ToppingsSalty SnacksMMSports DrinksGrown In IdahoMLay's Poppables100.5124.4PepsiCoLamb WestonSnack/Granola Bars73.9 YogurtRXBAR Chocolate Candy4Oui by YoplaitKinder JoyFerrero USAGeneral MillsChocolate Candy 1M 47.9MIRIworldwide.com14
SPECIAL REPORTExperiential: Kinder Joy,the 2018 top New ProductPacesetter, brings somethingnew to the category: aninteractive experience of bothcandy and a toy. The tag saysit all: “a little surprise goes a long way.” One halfof the egg is candy — a crispy, crunchy cookie ballnestled in layers consisting of smooth cocoa andcream — complete with a little spoon. The other halfis a toy to assemble — the toys are very interactive,with moving parts. Kinder Joy is known the worldover but is new to the U.S. market. The targetmarket for Kinder Joy is millennial moms, and it wassupported in advertising featured in both 2018 and2019 during the Academy Awards. Ferrero bringsadditional excitement to the Kinder Joy communityby partnering with and creating toys inspired byhighly popular movie franchises, including Star Wars,Jurassic Park and Frozen.Expectation: Healthy ChoicePower Bowls serve up a dailydose of fiber and protein.These bowl meals hit differentday parts, starting with eggwhite scrambles for breakfast. In addition to animalprotein, ConAgra also offers vegan and vegetarianvarieties with lots of beans and cauliflower,which — it could be argued — most people aren’tparticularly skilled at cooking. The brand aims todeliver “surprising and inspired dishes that helpyou live a healthy lifestyle.” Healthy Choice is anolder brand — launched in 1989 when fat-freewas the be-all, end-all. Now Healthy Choice ispromoting clean labels, antibiotic-free chicken andhigh protein levels. It participates in the SmartLabelTransparency initiative; it’s in a recyclable bowlmade from plant fibers, and it’s steam cooked.There’s a lot of innovation packed into these meals.Simplicity: Oui by Yoplait is madefrom simple ingredients andpackaged in a simple glass jar,which evokes a handmade craftproduct. And speaking of crafts,there are lots of Pinterest pagesdedicated to reusing the glass pots.Trial and Repeat of Pacesetters: Food and BeverageNPPRankProduct% of HHsTrying% of TriersRepeatingBrand % VolAny Deal1Kinder Joy15.443.639.22M&M's Caramel15.941.446.23Oui by Yoplait12.538.846.14Gatorade Flow7.246.959.05RXBAR6.627.057.86Grown in Idaho6.634.558.57Mtn Dew Ice7.447.435.28Lay's Poppables6.136.826.89Ritz Crisp & Thins7.822.049.110Duncan Hines Perfect Size for 16.227.727.5NEW PRODUCT PACESETTERS: Product Innovation and the Pace of ChangeTrial and RepeatKinder Joy, not a product available in the U.S. until2017, was able to achieve positive trial with littledependency on trade promotions. Gatorade Flow,which has a loyal following of sports drink fans, hadimpressive repeat, although its shoppers are alsoaccustomed to Gatorade products being promoted.Source: IRI Consumer and ShopperInsights Advantage Panel Year 1 DataIRIworldwide.com15
SPECIAL REPORT201720192Nature's RecipeTop 10 Pacesetters: Non-FoodMulti-benefit products and pet products —even multi-benefit pet products — dominatenon-food Pacesetters.3The J. M. SmuckerCompany595.3M6Sanofi890.3 M9Love Beautyand PlanetUnilever69.8 62.3 7M60.5NEW PRODUCT PACESETTERS: Product Innovation and the Pace of Change82.0MFinishing Touch FlawlessIdea Village ML’Oréal USAEye CosmeticsTide Pods PlusDownyGrooming SuppliesL’Oréal VoluminousLash ParadiseHair Care & Skin CareMLaundry DetergentMGlaxoSmithKlineNasal Products139.8Procter & GambleFlonase SensimistCold/Allergy/Sinus76.5 Vitamins XyzalLaundry Detergent4OllyTide Ultra OxiProcter & GambleOlly PBCPet Food 11068.4MArm & Hammer SlideChurch & DwightCat Litter 57.1MMIRIworldwide.com16
SPECIAL REPORTExperiential: Clorox Scentiva inspires the senseswhile it also wipes out dirt and kills germs. Thedeparture for Clorox is that these productspromote “no chemical smell.” Thepackaging and scent names areunique and closer to what’s found inthe air freshener or candle categorythan household cle
New Product Pacesetters (NPP), IRI reports that more than half of Pacesetter companies have sales of less than 1 billion. The biggest decline in NPP launches has come from the middle, companies with sales between 1 billion and 5 billion, with both the number of Pacesetter launches and dollar sales declining for the past several years.
