BEAUTY CARE

IRI 2014 Pacesetters generate brand equity, excitement

BY Michael Johnsen

CHICAGO  — IRI announced Tuesday the most successful consumer packaged goods launches of 2014 in its 2014 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 2014, yet only 200 achieved best-of-the-best IRI New Product Pacesetter status. These products captured cumulative year-one sales of more than $7 billion.
 
“The innovators behind this year’s New Product Pacesetters are truly remarkable for the ways they effectively embraced the ‘4 Ps’ of marketing to capture significant sales dollars in a very conservative marketplace,” said Larry Levin, EVP, mid-market, IRI. “The most successful CPG launches of 2014 brought in big dollar sales, but revenue is just one piece of the pie. These marketers also did a phenomenal job in building brand equity and excitement in the marketplace, catalyzing growth that stations them ahead of the competition.”
 
“During the past year, successful innovation has relied heavily on the clear communication of benefits,” noted Susan Viamari, editor, Thought Leadership, IRI. “Today’s consumers expect more from their favorite CPG brands. They want products that save time and energy; products that offer better and longer-lasting results. CPG manufacturers that highlighted and delivered on the expectations for bold and authentic taste and top-notch power and performance were rewarded with sizable launch-year returns.”
 
In the non-food arena, average year-one dollar sales for the top 100 new brands were $34 million. The marketers behind these launches of 2014 are capturing consumers’ attention and affections with solutions that simplify mundane daily tasks and put the power of professionals into the hands of ordinary folks. Procter & Gamble transformed routine personal care into an opportunity to stand out from the crowd with two new Old Spice lines: Old Spice Wild Collection, which landed a top-10 spot, and Old Spice Re-Fresh. Sensory stimulation brings new excitement to home care, proven by the average $46 million in year-one sales earned by 2014’s air freshener and candle Pacesetters.
 
With nine new launches offering professional quality solutions for beloved furry friends, 2014 was also a big year for pets. Three new dog and cat litter brands achieved top-10 status, capitalizing on opportunities around bringing convenience, power and simplicity to one of life’s less pleasant household chores.
 
2014 New Product Pacesetters: Top 10 Non-Food Brands:
 
  1. Cottonelle Ultra Comfort Care ($269.6 million in year-one sales across multi-outlet);
  2. Gain Flings! ($169.9 million);
  3. Nasacort Allergy 24HR ($139.2 million);
  4. Arm & Hammer Clump & Seal ($103.5 million);
  5. DayQuil/NyQuil SEVERE ($91.9 million);
  6. Tidy Cats with Glade ($81.4 million);
  7. Old Spice Wild Collection ($72.4 million);
  8. Duracell Quantum ($72 million);
  9. Cascade Platinum ($64.4 million); and
  10. Tidy Cats LightWeight ($62.5 million).
Source: IRI Market Advantage
 
For the top 100 food and beverage champions, average year-one dollar sales were $35 million. Not surprisingly, products catered to consumers’ need to meet nutritional goals, while satisfying their desire to indulge. The strongest food and beverage launches of the year really underscore consumers’ passions for bold and authentic flavors, homemade or hand-crafted quality and, of course, solutions that are quick, easy and portable.
 
2014 New Product Pacesetters: Top 10 Food and Beverage Brands:
 
  1. Lunchables Uploaded ($143.2 million in year-one sales across multi-outlet);
  2. Bud Light Lime Straw-Ber-Rita ($128.6 million);
  3. Chobani Simply 100 ($120.9 million);
  4. DiGiorno pizzeria! ($90.2 million);
  5. Activia Greek ($86.5 million);
  6. Chobani Flip($83.2 million);
  7. Red Bull Editions ($83 million);
  8. SkinnyPop ($76.4 million);
  9. Redd's Apple Ale ($75.1 million); and
  10. Yoplait Greek Blended ($69.4 million). 
Source: IRI Market Advantage
 
Greek yogurt launches continue to reap sizable year-one sales, capturing four top-10 spots. Top performers also demonstrated an ongoing appetite for restaurant brands crossing over to the CPG aisles, empowering the untrained to serve restaurant-quality cuisine in the comfort of their homes without the restaurant price tag. In 2014, five restaurant crossovers achieved New Product Pacesetter status, including Starbucks Discoveries and Starbucks Iced Coffee, Olive Garden Signature Salad Dressing, Red Lobster Cheddar Bay Biscuit Mix and Dunkin’ Donuts coffee creamer.
 

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P&G’s Q3 segment results prove to be mixed bag

BY Antoinette Alexander

CINCINNATI — Procter & Gamble posted on Thursday third-quarter earnings that were largely in-line with expectations as segment results proved to be a mixed bag.

“Our third quarter earnings results were largely in-line with what we had expected,” said chairman, president, and CEO A.G. Lafley. “We delivered double-digit constant currency core EPS growth with significant currency-neutral gross and operating margin expansion from over 400 basis points of productivity savings from programs that continue to gain momentum. This quarter the productivity progress was offset by foreign exchange. As we have done before, we’ll offset foreign exchange over time through a combination of pricing, mix enhancement and cost reduction. We are focused on the significant opportunities in our control, including brand initiatives and product innovation, business and brand portfolio simplification, overhead savings and major supply chain productivity initiatives, to improve results in 2015 and beyond.”

During the quarter, P&G posted core earnings per share of 92 cents. Diluted net earnings, which include all restructuring charges and impacts from discontinued operations, were 75 cents per share.

All-in net sales decreased 8% versus the prior year to $18.1 billion in the January-March quarter, including a negative eight percentage point impact from foreign exchange and a negative one percentage point impact from minor brand divestitures. Organic sales grew 1%.

Beauty, hair, and personal care segment organic sales decreased 3% as a positive impact from pricing was more than offset by lower volume. Innovation-driven organic sales growth in the deodorants, cosmetics and salon hair care categories were more than offset by sales declines mainly from the prestige fragrance and mass skin care categories. Hair care organic sales were down in developed markets due mainly to increased competitive promotional activity in the United Stats and customer inventory reductions in China.

Grooming segment organic sales increased 9% due to higher pricing across all regions on blades and razors, favorable volume and product mix from premium innovation on both the Gillette and Braun businesses.

Healthcare segment organic sales increased 6% behind favorable geographic mix and pricing in oral care and higher pricing in personal health care. Higher volume in personal health care driven by a stronger cough-and-cold season was offset by lower volume in oral care developing markets following price increases.

Baby, feminine and family care segment organic sales increased 2% behind pricing and mix in baby care and feminine care, including the benefits from the Always Discreet entry into the adult incontinence category and continued strong growth of Pampers Swaddlers in North America.

For fiscal year 2015, P&G said it now expects organic sales growth of low single digits for the fiscal year. Net sales growth is expected to be down 5% to 6% versus the prior fiscal year, including a negative 6% to 7% headwind from foreign exchange and a 1% impact from minor brand divestitures.
 

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CVS/pharmacy to promote exclusive brands with ‘Fill Your Bag’ promotion

BY Antoinette Alexander

 

WOONSOCKET, R.I. — CVS/pharmacy has announced that it will be kicking off a "Fill Your Bag" promotional event, helping shoppers save on CVS brand products, as well as on other select exclusive product lines, in all of its 7,800 stores.

This event will run in store and online from April 26 through May 23. To participate, members of the ExtraCare program can scan their cards at the ExtraCare Coupon Center to receive a 30% off coupon each week, with a limit of one coupon per week. Customers who participate in store will receive a reusable shopping bag that is free with purchase. Customers can then choose from more than 3,000 CVS/pharmacy exclusive items and fill their bags or shopping carts to receive 30% off their purchase.

"Our Fill Your Bag event is a great opportunity for customers to try some of our exclusive products," said Cia Tucci, VP of store brands for CVS/pharmacy. "With more than 3,000 products included in the promotion, it's an easy way to save on all kinds of spring essentials or every day health and beauty needs. Plus, all of our exclusive store brand products come with a 100% money-back guarantee."

During the promotion, ExtraCare members will have the opportunity to save on the following CVS/pharmacy exclusive product lines:

  • CVS/pharmacy brand: Products that carry the CVS/pharmacy brand name range from allergy and cold remedies to first aid essentials and personal care items, including CVS/pharmacy 24 Hour Indoor/Outdoor Allergy Relief, and CVS/pharmacy Extra Strength Pain Reliver.
  • Beauty 360: Beauty 360 features a wide range of beauty products including manicure and pedicure kits, brushes, and cosmetic implements.
  • Gold Emblem Abound: Launched in May 2014, this newer line offers customers a range of better-for-you snack and grocery items. Each product is free of artificial flavors and preservatives and contains no trans fats. In addition, the Gold Emblem Abound line includes products that are gluten-free certified, sodium-free, cholesterol-free and contain sources of protein, fiber, omega-3s, probiotic cultures and potassium.
  • Gold Emblem: Includes more than 250 snacks, beverages, and groceries, including nuts, trail mixes, chips, pretzels, dried fruits, candies, cookies, spices, juices, condiments, baking essentials and breakfast bars.
  • Total Home: Among the wide variety of products included in the line are facial and bath tissue, paper towels, garbage liners, food storage necessities, kitchen and bathroom cleaners, gardening aids, and more.
  • Caliber: This line offers classroom and office supplies, including paper, pens, pencils, and notebooks at an affordable price.
  • Just the Basics: Just the Basics offers a selection of practical items from a variety of categories throughout the store including household, beauty, baby, grocery and personal care.
  • Pet Central: The Pet Central line offers items, including snacks, toys, beds, kitty litter and shampoos.
     

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