Pulse Report: Study Ranks Top CPGs Based on Growth

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Pulse Report: Study Ranks Top CPGs Based on Growth

03/01/2015

For the third year in a row, Information Resources, Inc. (IRI) and The Boston Consulting Group (BCG) examined more than 400 CPG companies with annual U.S. retail sales of more than $100 million and ranked them based on their growth performance.

Dr. Krishnakumar (KK) Davey,
President, Strategic Analytics, IRI

This unique study includes both public and private CPG companies and measures actual consumer purchases in measured retail channels, as opposed to what factories shipped.

Overall, the industry grew 2.1 percent in 2014, compared to 1.6 percent in 2013. Small to midsize companies have demonstrated multi-year momentum, capturing 0.7 share points from larger competitors in 2014, worth approximately $4.5 billion, and two points, worth a total of $18 billion, since 2009.

One notable large-company performer is PepsiCo, a top growth company that captured $1 billion in growth across measured channels during the past year. Out of 23 large companies studied, only five contributed significantly to industry growth through dollar and volume gains.

Industry growth is occurring at the premium and value ends of the spectrum. Growth leaders demonstrated adeptness across three growth levers: velocity, distribution, and price and product mix. Early movers that exploit digital sales channels are performing well, as are better-for-you products, though consumers are not willing to sacrifice health, taste or convenience.

2014 Growth Leaders Which CPG Companies Are Winning in the U.S. and Why?


1Multi-outlet and convenience (MULOC) retailers are defined as food, drug, mass, Walmart, club (excluding Costco), dollar, military, and convenience.

We Combine Three Important Market Metrics to Create a Composite Growth Index


1Gaining share = gain of 0.5 or more share points; losing share = loss of 0.5 or more share points; holding share = <+0.5 and >-0.5 share point.
Source: IRI and BCG analysis.

Large, Midsize and Small Growth Leaders in U.S. CPG Rankings are Based on 2014 Growth Composite Index within Each Size Group


Note: Extra small: <$100M 2014 sales, small: $100M-$1B 2014 sales, midsize: $1B-$5B 2014 sales, large: >$5B 2014 sales; excludes PL sales.
Source: IRI data for MULOC (multi-outlet and convenience) 2013-2014. IRI and BCG analysis.

TIP

Reevaluate assortment strategies to include small and extra small up-starts that have disproportionately gained market share in key categories.

"PepsiCo, one of the largest CPG companies, grew nearly a billion dollars in measured channels last year, three times more than any other company, and four to five times more than other comparable sized companies."
–Dr. Krishnakumar (KK) Davey, President, Strategic Analytics, IRI

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