CHICAGO – IRI announced the most successful consumer packaged goods of 2017 in its latest New Product Pacesetters report. Thousands of new brands hit retail shelves during 2017, with 49% of the top-ranking brands hailing from small manufacturers, defined as those earning less than $1 billion annually, and accounting for 26% of Pacesetter dollars. Overall, the top-selling 200 new brands captured cumulative year-one sales of more than $4.6 billion across IRI’s multi-outlet geography.

“Consumers are demanding products that are customized to their needs, and this type of targeted innovation continues to put small and niche companies on the New Product Pacesetter map,” said Susan Viamari, vice president of thought leadership for IRI. “Just five years ago, an estimated nine out of every 10 Pacesetters launched were extensions of existing brand lines. In 2017, 40% of food and beverage and 25% of non-food Pacesetters were brands entirely new to the CPG marketplace. This clearly demonstrates consumers’ willingness to try ‘unknown’ brands. Millennials, in particular, are more moved by experiences and solutions to their needs and less likely to purchase based solely on brand name.”

Larry Levin, executive vice president of consumer and shopper marketing for IRI, added that smaller, more targeted product launches have become the new norm in CPG aisles, as manufacturers look to enhance impact with launches that align more closely with key consumer needs and wants. “In a testament to the power of this shift, 20% of this year’s top-selling launches earned less than $10 million during their first year on the shelves, continuing a trend we found in last year’s analysis,” he said.

For the top 100 food and beverage champions, median year-one sales were $14.5 million, excluding outlier Halo Top, which earned year-one sales of $342.2 million. It’s no surprise that millennials are eager adopters of new CPG products, per IRI, noting that this group is continuously on the lookout for new, exciting and unique experiences. Millennials are also embracing wellness and self-care to ward off ailments. 

2017 New Product Pacesetters: Top 10 Food and Beverage Brands
($ millions; total year-one dollar sales, multi-outlet)

1. Halo Top    $324.2 million
2. GOOD THiNS    $87.0
3. Dunkin' Donuts Iced Coffee  $67.1
4. Nestlé Splash    $55.2
5. LIFEWTR    $50.4
6. SMARTMADE by Smart Ones  $49.3
7. Hershey's Cookie Layer Crunch $47.7
8. Hillshire Snacking   $47.5
9. Well Yes!    $47.3
10. Cracker Barrel® Macaroni & Cheese $46.6

In the convenience store channel, median year-one sales across the top 10 IRI New Product Pacesetters were $31.7 million, demonstrating the power behind consumers’ ongoing quests for indulgent, on-the-go experiences.

2017 New Product Pacesetters: Top 10 Convenience Store Brands
($ millions; total year-one dollar sales, convenience store channel)

1. Red Bull Green Edition  $110.7 million
2. LIFEWTR    $107.6
3. Monster Mutant Super Soda  $42.3
4. Hershey's Cookie Layer Crunch $41.0
5. MTN DEW PITCH BLACK  $38.6
6. Four Loko Gold   $34.7
7. MTN DEW BLACK LABEL  $32.8
8. Sprite Tropical Mix   $32.5
9. Kit Kat Big Kat   $30.9
10. Pepsi Cherry Vanilla   $23.4

IRI notes that most of top 10 products in the convenience channel in 2017 were beverages. And as seen among food and beverage and non-food Pacesetters, categories are starting to blend and blur more. For instance, Monster, known as an energy drink brand, launched Monster Mutant Super Soda, a carbonated soft drink. And carbonated beverage Mountain Dew Black Label developed packaging similar to energy drink cans.

“Innovating to meet core needs and wants is crucial to ensuring new product success, but the challenge doesn’t end there. For a new product to be truly successful, it is up to marketers to ensure that the product—and messaging—are where the shopper is, when the shopper is ready to buy,” said Viamari. “Through big data and advanced analytics, CPG marketers do have visibility into where shoppers go to learn about new products, as well as into what the highest-potential retail banners are, and even where the highest potential locations exist within each of these banners. By understanding key shoppers, what they want, where they go to learn about products and where they go to try new brands, marketers can influence purchase decisions with messaging and assortment that drive sales.”

In the dinner sector, the largest launch was SmartMade by Smart Ones a frozen meals. Meanwhile, 18 of the 76 food Pacesetters are breakfast solutions, which cater to consumers at both ends of the wellness spectrum by offering both indulgent flavor experiences, such as Kellogg’s Cinnamon Frosted Flakes (ranked 19th) and healthier, on-the-go options, like Jimmy Dean Delights Frittatas (ranked 23rd).

On the non-food side, median year-one sales inched up just slightly, to $17.8 million from $17.6 million, bolstered by the slight uptick in the number of brands earning $40-$59 million. Brands in this range are primarily higher-ticket general merchandise items, such as cookware and hair-styling tools.