P.F. Chang’s, Kraft, and a variety of K-Cup products led the industry in new product introductions during 2011, according to SymphonyIRI data released Tuesday.
P.F. Chang’s Home Menu, made by Unilever, was the top seller, with $101.6 million, followed by Thomas’ Bagel Thins, at $73.6 million, and Kraft’s Oscar Mayer Selects hot dogs came in third with $69.2 million in sales.
Each year the Chicago-based market research firm tallies the best-selling products on grocery shelves in their first full calendar year. SymphonyIRI Group’s data does not include Wal-Mart and club stores.
“We are out of the recession, but consumers are still very cautious and looking for smart ways to splurge,” Susan Viamari, editor of SymphonyIRI’s Times & Trends Magazine said in an interview. “What we’re seeing is food and beverage manufacturers putting fun twists on products to bring to market a gourmet mindset, product flavor combinations, or restaurant-inspired flavors, because people can’t afford to go out as much as they did.”
For Kraft’s performance in Oscar Mayer Angus beef hot dogs, Viamari suggested that consumers were wooed by an ostensibly healthier “nitrate-free” product, even for an undeniably indulgent meal.
The sales totals fall well short of last year’s when Powerade ION4 and Chobani yogurt led the list with $191 million and $149 million in sales, respectively. Levin noted that 2011 boasts more notable products. He added that lower total sales reflect continued consumer caution in making purchases, and a sign that manufacturers are marketing to niches.
While $100 million in first-year sales has historically been the benchmark for a new product’s success, average totals have been dwindling. These days, said Larry Levin, executive vice president of consumer insights at SymphonyIRI, “the vast majority of pacesetters wind up with less than $20 million in first-year revenue.”
“It’s hard to hit a home run,” he said. “It’s always a big eye opener to our clients about what the first year potential is for a new product.”
In aggregate, he pointed to the rise of K-Cup sales for Keurig single-serve coffee machines. While Folgers Gourmet Selections K-Cups placed fourth on the list with $58.4 million in sales, Levin noted a number of other K-Cup products also making strides, indicating that the products will be important for grocers in the coming years.
Viamari singled out Udi’s Gluten Free Foods, coming in 25th with $28.5 million in first-year sales.
“That to me was the little guy that made a statement in market and lifted another (product) attribute into the limelight,” she said, adding that the performance was “pretty amazing for a very niche type of product.”
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