Dive Brief:
- Drinks again dominated the top launches in the food and beverage industry last year, with eight of the 10 most successful, according to Circana’s 2022 New Product Pacesetters report. In 2021, beverages also represented eight of the top 10.
- Alani Nu, an energy drink, topped the list with $228 million in sales, followed by Dr Pepper Zero Sugar coming in second with $169 million. The list also included Truly Punch, Truly Margarita, Red Bull Green Edition, Gatorlyte and Topo Chico Hard Seltzer.
- Circana’s findings underscore the fact consumers are looking for more than just sustenance and refreshment in the products they buy. Increasingly, they want ingredients that are functional, natural and recognizable.
Dive Insight:
Innovation is happening broadly across the retail landscape, but it’s especially profound in beverages.
Carbonated beverages, sports and energy drinks showed a large increase in the number of Pacesetter products introduced last year (13 out of the top 100 in 2022, up from five in 2021), leading to a 27% share of all food and beverage Pacesetter dollars.
The beverages on Circana’s list all offered something different to give them an edge in already established categories.
The data analytics firm said energy drinks “are more nuanced than ever.” More than 41% of consumers said they want new beverages to help with hydration, over 25% are looking for basic nutritional benefits and nearly 17% desire an energy boost.
Alani Nu won over energy drink shoppers with active ingredients, including biotin and vitamins B6 and B12, along with what Circana called “unique and whimsical flavors.”
Red Bull Green Edition, No. 8 on the top 10 list, provides energy and “vitalizes body and mind” with its dose of dragon fruit. Among the top 10 food and beverage Pacesetters, it boasts the highest repeat purchase rate at nearly 70%, Circana said.
One spot below Red Bull Green Edition was Gatorlyte, a Gatorade spinoff that provides rapid sports rehydration and recovery through a specialized blend of five electrolytes. It has a lower sugar content than traditional sports drinks.
The top 10 list also included Dr Pepper Zero Sugar. This is the second year the soda brand made the list. (Dr Pepper & Cream Soda topped the ranking in 2021.)
Hard seltzer had a strong showing, which is promising for a sector that has seen sales slow amid a flood of similar offerings and competition from ready-to-drink cocktails. This year’s Pacesetters featured two offerings from Boston Beer’s Truly. Topo Chico Hard Seltzer, a product made under a partnership between Molson Coors and Coca-Cola, also appeared in the ranking.
Two food brands made the ranking. Chick-fil-A Sauces was ranked third, generating more than $140 million in sales. Its product underscored the appeal of re-creating interesting restaurant experiences at home.
Tattooed Chef was at No. 7, with more than $93 million in sales. Its frozen items feature “interesting ingredients” such as tahini, hemp seeds, quinoa and turmeric that many consumers “would be hard-pressed to source and cook with on their own,” Circana noted.
Overall, innovation remains robust in food and beverages. New Product Pacesetters in this category racked up nearly $3.5 billion in sales in 2022, a 19% dollar increase from those in 2021.
