With the highest number of new CPG product introductions (at thebrand level) in the past eight years, 2003-2004 was marked by strong new product activity. Manufacturers placed a heavy focus on innovation this past year --primarily in the form of brand extensions --to capture growth in an otherwise slow growth environment: U.S. CPG sales across food, drug and mass channelsexcluding Wal-Mart (FDMx) were flat (+0.5%) in 2004.
Few “made it big.”Less than 1% achieved over $100 million in year-one sales across FDMx channels. However, consistent with prior years, just under one-quarter achieved New Product Pacesetter status by reaching FDMx sales of $7.5 million or greater in their first year.
The most successful new food and beverage products delivered against consumers’desire to experience new tastes and varieties, manage weight, improve overall health,and simplify life through added convenience. Leading products in non-food categories offered significantly improved performance, new varieties in scents and formats, convenient, disposable cleaning solutions and do-it-yourself healthcare and “spa-quality”beauty treatments.
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