Dive Brief:
- IRI’s 2016 New Product Pacesetters report shows a significant uptick in new CPG products that address a finite — even focused — sector of the market, according to Retail Leader.
- The list shows that 80% of the top-ranking brands were from small- and mid-sized- manufacturers, representing 64% of sales on those brands.
- The top 10 2016 New Product Pacesetters food and beverage brands included Dairy Pure, Dunkin' Donuts K-Cups, Not Your Father’s Root Beer, Oreo Thins and Artesano.
Dive Insight:
The companies and brands that dominate IRI’s 2016 New Product Pacesetters report show how much the consumer goods industry has evolved in recent years, with small manufacturers representing a large portion of the top products.
In total, the best-selling 200 new brands captured year-one sales of more than $5.8 billion.
DairyPure, with first-year totals of $1.16 billion, was far and away the champion, bringing in more than five times the sales of the second item on the list. The company also scored No. 8 on the list with its DairyPure creamers. This shows that while dairy alternatives might be scoring big numbers, traditional items can make some noise with the right product launches and marketing campaigns.
Not every leader came from a smaller manufacturer. Mondelez's Oreo Thins was No. 4 on the list. However, products from the bigger players were less prevalent than in recent years. Some of this could be attributed to consumers wanting to try new things and turning toward companies that promote healthier eating or more sustainable practices.
Many smaller companies also take advantage of social media and know how to reach out to millennials with out-of-the-box concepts that can hit big. These brands are targeting specific consumers and doing well with their efforts.