Low-calorie ice cream and sherbet maker Halo Top sold $324.2 million in new products in 2017, giving it the top spot on IRI’s 2017 New Product Pacesetter list by a long shot.
IRI’s New Product Pacesetters: Food & Beverage
Year 1 sales (in millions)
|Halo Top||Ice cream/sherbet||$324.2|
|Good Thins||Crackers, salty snacks||$87.0|
|Dunkin’ Donuts Iced Coffee||RTD tea/coffee||$67.1|
|Nestle Splash||Bottled water||$55.2|
|SmartMade by Smart Ones||Frozen dinners/entrees||$49.3|
|Hershey’s Cookie Layer Crunch||Chocolate candy||$47.7|
|Hillshire Snacking||Refrigerated lunches||$47.5|
|Cracker Barrel Macaroni & Cheese||Dry packaged dinners||$46.6|
The list confirms the impact of the consumer trends that have emerged over the past few years — namely that Millennials, who command one-third of CPG spending power, want something different from the generations before.
Here are a few emerging trends confirmed in the IRI report:
- Small companies and new brands continue to take market share from large companies and existing brands. More than one-quarter of New Product Pacesetter sales were from small companies, compared to just 12% in 2013. In addition, 40% of food and beverage Pacesetters were new brands, as opposed to brand extensions (in 2013, only 11% were new).
- Millennials want premium products, and they’re willing to pay more for them. A full 85% of the 20 largest Pacesetter brands are priced higher than their category averages.
- Millennials want healthy, but also tasty foods. More than 40% say they eat healthy about half of the time. But they also like to splurge — 23% of the new food product launches (the largest category) were desserts. The desire for healthy-but-indulgent products is apparent in beverages as well with the popularity of sparkling and fruit-flavored bottled waters.
For more insights, and to see the Top 10 Pacesetters for Convenience Store Brands as well as the Top 10 Rising Stars in Food & Beverage, see the IRI report.
Related: Millennials’ Food Choices Reflect Their Values and Lifestyle