CPG Performance on the Upswing

CHICAGOIn its latest report, Times & Trends: CPG 2010 Year in Review: Out of Turmoil Rises Opportunity," SymphonyIRI Group analyzes the CPG industrys performance and identifies new market opportunities. Overall, the news is good. Consumers increased spending in 2010, and unit sales declines slowed markedly.

Although many are breathing a sigh of relief since the Great Recession" officially ended in mid-2010, other consumers are still on the fence and wondering if its a bit premature," says John McIndoe, senior vice president, Marketing, SymphonyIRI. Make no mistake, the CPG industry will continue to serve a very conservative consumer base in 2011. Nonetheless, this is a time of great opportunity for marketers. The key is to act with a clear and precise understanding of the changing attitudes, needs and behaviors of your most important shoppers and target segments."

According to the report, average unit sales grew 1.6 percent across the center store department, which is home to several of the years fastest growing categories: ready-to-drink coffee/tea, energy drinks and sports drinks. Energy drinks led the way across the top 10 CPG categories, with 13.5 percent unit sales growth in 2010. The wine category grew by 5.7 percent, followed by chocolate candy at 4.9 percent, salty snacks at 2.9 percent and bottled water at 2.7 percent. On the other end of the spectrum, milk category unit sales slid by 3 percent in 2010.

More than ever, it is critical for CPG marketers to heighten their understanding of the nuances behind todays trends and then communicate with shoppers on a very intimate level by complementing traditional online and print marketing strategies with new communication mediums, such as social media and smart phones/mobile devices," added McIndoe. In doing so, savvy marketers will achieve new heights in dollar and unit share uplift, while fortifying relationships with an ever-increasing number of shoppers."

Click here to download the free report.