INNOVATION IN MARGARINE AND SPREADS LAGGED TOTAL DAIRY • Innovation was up vs. last year (2.9% sales contribution valued at $36.8 million in 2018 vs. 0.3% sales contribution valued at $4.2 million in 2017)
The Bottom Line • There were zero new brand launches
• $1 million+ launches were up to 33 points, reaching 50% - driven by Shedd’s Country Crock Spread launches in the 16oz and 67.5oz size ranges
• Margarine and spreads did not resonate with Millennials
Source: IRI, 2019
• Organic and non-GMO claims were found on new items but brand extensions overall were very similar to the existing portfolio
• Pure Blends was a rising star brand, positioned as a plant-based butter
Sales contribution from innovation increased in 2018, but was fully driven by existing brands launching extensions. Zero new brands were introduced, and brand extension innovation was nominal – mostly new size introductions. Manufacturers in this category need to get creative and tap in what consumers are looking for.