Eight new coffee and tea products are among the most successful consumer packaged goods introduced last year, according to Information Resources, Inc. which annually publishes a list of New Product Pacesetters. Both Starbucks and Lipton are excelling in beverage sales due to their innovations.
“Innovations in the coffee and teas segment of the beverage aisles were quite strong in 2012, accounting for 33 percent of beverage Pacesetter sales,” according to IRI.
In 2012, the majority (58 percent) of new food and beverage introductions achieved less than $7.5 million in sales. The Pacesetters averaged $39.5 million. A total of 50 brands captured more than $50 million in the food and beverage category and 16 percent of food and beverage introductions surpassed $20 million in first-year sales. Fewer than half a percent topped $100 million.
The majority of new food and beverage products (82 percent) were brand extensions but net new brands averaged $81.2 million in sales, versus brand extensions which averaged $31.1 million in sales.
Most sales (53 percent) of new food and beverage lines occur in traditional food, drug and mass merchandise outlets ($43 million), according to the report.
Beverages account for 31 percent of 2012’s Food & Beverage Pacesetters, including six of the 10 largest launches. Starbucks K-Cups led the group at $198.9 million in sales with Bud Light Premium earning $162.2 million in traditional food followed by TruMoo milk at %158.3 million; MiO drinks with $127.6 million and Sparkling ICE Bottled Water at $122.7 million.
Fourth quarter 2012 Market Pulse survey results indicate that home based treats, such as “coffeehouse” coffee, are still very much a part of consumers‟ smart indulgent behaviors, according to the study.
“This trend is helping to build the single-cup coffee wave that has been swelling for several years now. Starbucks K-Cups delivered the highest first-year sales of a k-cup launch in 2012, proof that there is still life left in this trend,” according to the report.
IRI tracked sales of nearly 1,900 new CPG brands in 2011-2012 sold nationally at traditional grocery, drug and mass market retailers, as well as sales from dollar and club channels, Walmart and military commissaries. Only 11 met the first-year sales benchmarks to achieve 2012 New Product Pacesetter status.
Source: Information Resources, Inc.