What's Next at Wirtz

Jan. 29, 2015

 Whether on your menu or on your shelf, new products can be key to driving incremental sales for many businesses.  While at times your business might feel like a revolving door of new items, understanding the potential impact of these new varietals, flavors, and products is important.  Below are a few key statistics to remember. 

The Customer

• According to IRI, 20% of consumers are "always" looking for new products to try.
  
  
• This percentage increases to over 50% with the millennial consumer as they have a well documented, insatiable appetite for new varietals, flavors and brands, especially in the high-quality category.
  
  

Revenue

• According to a recent study by Accenture, 25% of revenue is generated by products introduced in the last three years.
  
  
• Retailers that adopt new products, grow faster - up 16% faster - than companies that are not ready to adopt new products into their business, as found by a PWC retail study.
  
  

Keep Pace with the Spirits Category

• With 493 new products added to the spirits category in H1 2014, the new product trend is well imbedded in driving growth for this category. Flavors that are on the rise in this category include mango, peach and grapefruit as identified at the Nielsen 2014 Wine and Spirits Summit.
  
  
• Driven by the close to 2,500 Craft Brewers open today the Craft Beer industry is keeping pace with spirits, bringing even more new flavors and seasonals to market every year.
  
  

How to Cut Through the Clutter

• Managing Innovations can be a full time job. Have a plan and be prepared to carve out a space for the innovations that you think will drive your customer to purchase.
  
  
• Use your Sales Consultant's insider knowledge of the product pipeline. Know what's coming in the future so you can prepare inventory or menu space for the items you think will be most successful.
  
  

The consumer has the appetite and adventurous spirit to drive continued demand for new product innovations. Be ready to take advantage of the best executed line extensions in order to carve out incremental growth for your business.