Apr 17

Written by: IRI Blog
4/17/2009 10:18 AM

Even in the best of times, approximately 75 percent of new products introduced fail to earn more than $7.5 million during their first year of availability. 2008 was less kind, with more than 78 percent failing to reach the $7.5 million threshold.

Our New Product Pacesetters Report, released today and now in its 14th year, finds that despite today’s financial pressures, consumers are still focused on good nutrition, convenience and the occasional indulgence. Gatorade’s G2 low-calorie Gatorade topped new food products with $159 million in first year revenues. Consumers are seeking comfort and stability in small ways, and home dining continues to be an important area of opportunity as people “turn the lights back on in the dining room.”

Non-food products outpaced food product introductions for the first time by roughly 80 products, or more than 10 percent, reflecting shoppers' increased focus on self-reliance. McNeil Consumer Healthcare’s Zyrtec allergy relief medication led non-food new product sales, earning $316 million in first year sales.

Results from this report indicate a a major opportunity for CPG manufacturers and retailers to focus on brand extensions as shoppers are turning inward to brands they know and trust.

Read more here.

Anne Berlack
Executive Vice President Business & Consumer Insights at IRI

Tags: