IRI Announces Most Successful Consumer Packaged Goods Brands of 2016

Small and Midsize CPG Companies Increasing Number of Successful New
Product Launches; Personalized Products Finding Their Niche with

CHICAGO–(BUSINESS WIRE)–IRI® has announced last year’s most successful consumer
packaged goods launches in its 2016 New Product Pacesetters report,
an industry-recognized benchmark analysis of exceptional first-year CPG
sales success for newly launched products. Thousands of new brands hit
retail shelves during 2016, with 80 percent of the top-ranking brands
hailing from small and midsized manufacturers and accounting for 64
percent of Pacesetter dollars. Overall, the top-selling 200 new brands
captured cumulative year-one sales of more than $5.8 billion across
IRI’s multi-outlet geography.

“The top product launches of 2016 highlight the three P’s of successful
innovation — prevention, personalization and pizzazz,” said Susan
Viamari, vice president of Thought Leadership for IRI. “Each plays an
essential role in driving awareness and engagement in today’s
marketplace. Personalization is perhaps the most talked about, and
desired, phenomenon in marketing today. Keying in on consumer
preferences is critical because of the sheer volume of information in
front of people at any given time. Products that are delivering small
and powerfully targeted solutions that grab consumers’ attention and
make them feel and look great are resonating and are making a huge

“Technology and know-how are allowing CPG marketers to not only
understand consumer needs and wants, but also to respond to them more
effectively than ever before,” added Larry Levin, executive vice
president of Consumer and Shopper Marketing for IRI. “As a result,
average year-one dollar sales from even the most impactful new product
launches are continuing to decline, a trend we noted in Pacesetters
during the last couple years. Certainly, mega launches surpassing $100
million are still occurring, but the brands in the middle of the pack
are getting the squeeze as smaller, more targeted brands are capturing a
growing share of Pacesetter sales.”

Food and Beverage Launches Capture $11.4 Million in Median Year-One

For the top 100 food and beverage champions, median year-one dollar
sales were $11.4 million, down from $19.6 million in 2015. Prevention
played a key role in driving the success of these top-performing
products as consumers turn to CPGs for help in meeting their nutritional

2016 New Product Pacesetters: Top 10 Food and Beverage Brands
($ Millions)

(Total Year-One Dollar Sales, Multi-Outlet)

1. DairyPure®     $1,163.1
2. Dunkin’ Donuts® K-Cups® $204.1
3. Not Your Father’s Root Beer® $114.6
4. OREO Thins® $110.2
5. Artesano™ $102.4
6. Screamin’ Sicilian™ $73.2
7. Oscar Mayer™ Natural $61.7
8. DairyPure® Creamers $54.9
9. Sargento® Balanced Breaks® $54.2
10. Henry’s Hard Soda® $50.3

Source: IRI Market Advantage

Consumers want fresh, unprocessed, simple foods that are made with
ingredients that they can understand, because nutrition has become a
first line of defense for living well. And since 40 percent of consumers
recognize that being healthy starts with lifestyle, they are reading
labels, looking for products with fewer ingredients, and turning to
natural, organic and superfoods that can boost nutritional impact.

Antibiotic-free foods (ABF) are becoming increasingly more popular,
particularly in meat, poultry and dairy products. DairyPure, the
top-selling beverage launch of the year, is an example of an ABF
solution that is hitting the mark. Consumed by 42 percent of U.S.
households, DairyPure is the result of a consolidation of a number of
regional brands. To ensure consistency and purity, regional dairies are
required to meet stringent sourcing, processing and testing processes,
which are consistent with DairyPure’s Five-Point Purity Promise.

The sweet snacks sector is offering powerful new options in indulgence.
While there were only four sweet snack Pacesetter brands this year, down
from seven in 2015, some of these brands made a really big splash in the
market by providing indulgence with a healthier-for-you twist. Nabisco,
for instance, introduced OREO Thins. Even though it is indulgent, this
launch is a light, new twist on a classic favorite, packing traditional
OREO flavors into a delicate new cookie with a crispier texture, less
crumbs and fewer calories.

Non-Food Champions Secure $17.6 Million in Median Year-One Sales

Technology-enabled personalization is making a powerful statement by
helping consumers get better results and experience excitement and
relaxation in the ways they prefer. This is abundantly clear across the
wide range of 100 top-performing non-food brands, which had median
year-one dollar sales of $17.6 million.

Consumers want products that nourish from the inside out and contain
exciting or relaxing ingredients. Fun new product forms increase
enjoyment and personalization. Top-launching skin care brand Garnier
SkinActive, for instance, offers a range of skin care products developed
to simplify skin care and actively make skin look fresh and healthy, no
matter the skin type. The brand’s website offers a quick-search feature
that helps consumers pinpoint the right product and also offers guidance
on developing the ideal personalized skin care routine.

2016 New Product Pacesetters: Top 10 Non-Food Brands
($ Millions)

(Total Year-One Dollar Sales, Multi-Outlet)

1. FLONASE®     $316.5
2. Gillette® Fusion®
3. Garnier® SkinActive® $117.5
4. Tide PODS® Plus Febreze $87.3
5. Crest® Pro-Health
6. The Pioneer Woman® Collection $79.1
7. Persil® ProClean® $63.2
9. Tampax® Pocket Pearl™ $41.9
10. Old Spice® Fresher Collection $39.0

Source: IRI Market Advantage™

The health care sector saw a decline in its number of Pacesetter-earning
brands in 2016, but average launch size increased. The jump in average
dollars earned year one was attributable to the powerful
over-the-counter (OTC) transition of FLONASE, with $317 million in its
first OTC year. Excluding FLONASE, average year-one dollar sales for new
health care launches fell by nearly 60 percent, again due to the
presence of several more targeted new product launches.

Top Launches Capture Median $23.4 Million in First-Year Sales in
Convenience Stores

In the convenience store arena, median year-one sales across the top 10
IRI New Product Pacesetters were an astounding $23.4 million,
demonstrating the power behind consumers’ ongoing quests for both
healthy and indulgent personalized experiences.

2016 New Product Pacesetters: Top 10 Convenience Store Brands
($ Millions)

(Total Year-One Dollar Sales, Convenience Store Channel)

1. DairyPure®     $385.9
2. Red Bull® The Summer Edition $149.0
3. Quest Bar® $78.4
4. Nut Harvest® $60.2
5. BODYARMOR $55.0
6. Rockstar® BOOM! $53.3
7. Rockstar® Freeze $51.7
8. Not Your Father’s Root Beer® $44.2
9. Monster Energy® Ultra Black $39.5
10. AMP® Energy Zero $25.0

Source: IRI Market Advantage

Four energy drinks made the top-10 ranking, reinforcing the notion that
Americans want energy-packed solutions that can be consumed on the go.
New energy launches provide an array of flavor experiences, but there
are several new options for those seeking healthier alternatives, such
as Monster Energy Ultra Black, which is light and refreshing, with no
calories and no sugar. AMP Energy Zero is bursting with flavor, but has
no calories.

“A 360-degree approach to health and wellness is yet again expanding the
competitive set for food and beverage and non-food consumer packaged
goods,” concludes Viamari. “Marketers must adopt a solution-oriented
mindset and keep in mind that the consumer is in charge. The key is to
educate and draw interest in a product with a powerful and personal
marketing story, rather than just throwing a product out there and
expecting the shopper to come.”

About the Report

The IRI “2016 New Product Pacesetters” report is
available exclusively from IRI, the global leader in innovative
solutions and services for consumer, retail and over-the-counter health
care companies. The findings of this report were compiled based on
insights from IRI’s New Product Innovation Practice’s powerful suite of
analytical and decision-making tools as well as the 2017 IRI New Product
Survey. To download the full report, visit:

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Shelley Hughes
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