G2, Zyrtec Top New Product Sales in '08

Consumers crave brands with health and affordability claims, according to Information Resources Inc.’s annual New Product Pacesetters report. PepsiCo’s G2 and over-the-counter allergy relief medication Zyrtec topped the list of most successful product introductions last year, per the research firm, which is releasing its findings at the CPG Summit in Las Vegas this week. The report encompasses both food and nonfood brands that have completed one full year of sales, have gained at least 30 percent national distribution and generated at least $7.5 million in sales in the food, drug and mass channels. Here’s a look at the top winners:G2 Outruns the Competition Early last year, curious ads showed Derek Jeter walking the city streets while baseball stadium grass magically grew under his feet. It caused people to ask: “What is G2?” Well, $159 million in sales later, it seems plenty of consumers figured it out pretty quickly. G2, the low-calorie version of Gatorade, proved to be (forgive us) a home run for the brand. Why? Experts said it was all about the timing. “It tapped into the burgeoning awareness among consumers of the high-calorie count even among healthy-positioned beverages like Gatorade and Vitaminwater—PepsiCo itself having stoked that awareness with Gatorade sibling Propel’s attacks on Vitminwater,” said Gerry Khermouch, editor of Beverage Business Insights. (Vitaminwater, last week, launched its own 10-calorie per serving line extension.)Of course, it doesn’t hurt to be part of the Gatorade family, said John Sicher, editor, Beverage Digest. “Over the years, Gatorade has done very well with line extensions like Fierce and Frost. [It’s one of the few brands that has.] . . . Beyond Coke and Pepsi, there is a small number of power brands in the U.S. beverage system and Gatorade is one of them. You can see how difficult a time the others have had, including Powerade, against Gatorade’s dominance.”Last week, G2 continued its attack by debuting the first of three new TV spots tucked under its new “Everyday Athlete” tagline. It also added Eli Manning as brand spokesperson. “We’re broadening who we call an athlete and meeting their needs with low-calorie offerings,” said Carla Hassan, Gatorade’s director of marketing. “We feel that we have a bigger opportunity to talk about G2’s low calories. It will be emphasized even more.”Zyrtec Keeps Sales HealthyBecoming an over-the-counter drug has done wonders for the health of the Zyrtec brand. The Johnson & Johnson-owned allergy reliever notched $316 million in first-year sales since its January 2008 switchover from being a prescription-only medication. The FDA approved OTC use of the drug in November 2007.Zyrtec has also benefited from its reputation as “fast-acting” relief to common allergy symptoms as well as a steep drop in price. Anne Berlack, evp of consumer and shopper insights at IRI, said the huge drop in pricing which typically accompanies prescription to OTC switches is a critical driver of first-year sales. Zyrtec’s primary competitor, Claritin (from Schering-Plough), went OTC in December 2002, but there’s room enough for the two brands to duke it out as they’ve distinguished themselves on separate claims, said Mintel senior analyst Krista Faron. Claritin prides itself on delivering nondrowsy relief.Generic versions of the drug do exist—including one sold by Ohm Laboratories of New Brunswick, N.J—but this is usually not enough to detract from branded sales in the short run, Berlack said.Still, private label remains a long-term competitive threat. Generic brands accounted for 21.8 percent of U.S. cold, allergy and sinus remedy sales in 2008, per Mintel. Sales in this sector jumped 22.7 percent in two years. And, Faron said, until the economy turns around, consumers may very well “pick based on price.”

Brand Marketing

G2, Zyrtec Top New Product Sales in '08

Kenneth Hein

Elaine Wong

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Kenneth Hein

Elaine Wong