REVENUE GROWTH IN AN INFLATIONARY ENVIRONMENT
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Part May
Discovering Pockets of Demand 7
2021
REVENUE GROWTH
IN AN INFLATIONARY
ENVIRONMENT
EXECUTIVE SUMMARY
The post-pandemic CPG industry has seen significant price inflation, driven by increased demand, out-of-stocks, reduction in promotion,
and premiumization. As the economy rebounds, significant input price inflation and increased logistics costs are pressuring manufacturers to
raise prices even as increased mobility is likely to moderate demand for in-home consumption categories. To win the market share battle in
this unchartered environment, traditional pricing practices alone will not be sufficient. Managers will need to be agile and leverage
technology, advanced analytics and newer, granular near real-time datasets to discover and capture profitable revenue growth opportunities.
PRICING CHALLENGES
• Vaccination-enabled increased mobility, including return to schools, restaurants, entertainment, travel, etc., is expected to
decrease in-home consumption for several categories, but the rate of decline is uncertain and uneven across categories.
• In step with easing demand is an increase in consumer price sensitivity and grocery shoppers will be more mindful of the
prices even as many other goods and services begin to compete for their wallet.
• Manufacturers and retailers are fighting to retain new buyers acquired during the pandemic surge and will be eager to
improve their share position as supply and demand reverts to a new equilibrium.
• Managing pricing in this challenging environment calls for innovative, agile growth strategies, leveraging the full spectrum
of revenue growth levers to spot and execute on profitable revenue opportunities.
BEST PRACTICES IN REVENUE GROWTH MANAGEMENT
• Growth leaders typically capture 3-5 points of topline growth and 5-10 points in ROI improvement from pricing & trade investments.
• Leaders in revenue growth have a strong understanding of which brands and categories are less price sensitive and take
pricing action accordingly.
• Successful companies measure and monitor price elasticity changes closely and benchmark vs. category to understand
other levers they need to pull besides pricing and promotion.
• Innovators leverage machine learning to quickly identify pricing opportunities and to ensure planned pricing moves are executed.
• Leading companies also monitor promotion execution to weed out underperforming promotions, e.g., feature and display
conversion, deviations in promo event lift, and spotting and acting on unusual competitor promotions.
• Leaders leverage a full range of price-pack architecture moves by understanding which consumers will pay what in which
channels (e.g., convenience, club, dollar, grocery); they also consider differentiated pricing and promotions online vs. in-store.
• They strengthen their brand value proposition by precisely delivering what consumers value and premiumize smartly.
• Winning brands match their products to unique occasions and price innovations to realize value.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 2
CONTEXT
CPG Demand Surged in 2020 As In-Home Consumption Gained
Share Due to Dramatic Drop in Out-of-Home Consumption
Omnichannel Food-at-Home, Food Away-from-Home
Estimated Volume & $ Sales % Change Share of $ Spend
Food-at-home Food Away-from-home (incl. takeout & delivery)
Edible (Including Perishables)
+9.2 70 66
20 10.3% 60 61
60 55 56 57
1.1% 55 53 53 53
52
0 49 48
2016-2018 CAGR 2020 vs. YA 50 45 47 47 47
45 44 43
$ Sales % Change 1.9% 13.9% 39
40 40
34
Nonedible
+5.1 30
20
7.5%
2.4%
0
2016-2018 CAGR 2020 vs. YA 0
$ Sales % Jan Feb Mar April May June July Aug Sep Oct Nov Dec
Change 3.9% 12.2%
Total Food 132 131 133 104 123 129 135 136 131 137 131 138
($B) 4% 7% -4% -23% -15% -8% -4% -6% -2% -1% -5% -5%
Source: USDA Monthly Sales of Food with taxes & tips; Includes food sales across store types. IRI Omnichannel Model, data ending 12/27/20,
Omnichannel is MULOC+Costco+ eCommerce, Volume is estimated based on MULOC weighted price/mix growth. IRI analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 3
CONTEXT
Demand Outpaced Supply in Many Categories and Consumers Were COVID-19 demand
drove high growth
Willing to Pay for Convenience, Trusted Brands and Premium Products of leading brands
in cleaning, OTC,
Momentum Growth / Aisle % Volume CAGR (‘16-’19) vs. Volume Acceleration in 2020 paper products,
self-care,
2020 CPG Average
6% at-home food,
Volume CAGR (’16-’19)
Alcohol Fresh General Food comfort and
5%
Water Rfg. Meals Beverages Frozen Refrigerated indulgence. Price
4%
Household Plastics/Storage
Beauty Home Care Tobacco
sensitivity and
Health General Merchandise promotions
3% dropped in these
2%
Sports/Energy Drinks categories.
Snacks
Skin Care Nutrition/Weight Loss Personal Cleansing
FZ Fruit & Veg
Floral
1% Cookies & Crackers FZ Meals
Ethnic
Shoppers were
Health Remedies Liquor
Dairy Condiments & Sauces
SS Meals
FZ Meat willing to pay
0% Laundry Deli Meat
Candy
Pet Care Coffee & Tea
Produce Baking premium prices,
Household Cleaning
-1% Baby Care
Baby Food Meat Paper Products delivery fees, and
Mouth Care Disposable Tableware Rfg. Beverages Ss Vegetables
Bakery
FZ Desserts
Seafood membership fees
CSD
-2%
Cosmetics Hair Care
Breakfast
Foils, Wraps, & Bags
Ss Fruit
for added
convenience and to
-3% Tobacco Juices
consolidate trips
-4% on platforms like
-15% 0% 5% 10% 15% 20% 25%
Instacart and
Negative
2020 Volume Growth Acceleration (Ppt. Difference 2020 Growth Rate - 2016-2019 CAGR) DoorDash.
Positive
Note: Includes top 50 aisles by size. Source: IRI data for MULO+C (multi-outlet and convenience) / IRI analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 4
CONTEXT
Price Inflation Occurred Through Reduction in
Promotions and Increased Premiumization
Decomposition of Price per Volume % Change vs. YA / Grocery Channel / 12 WE 3/21/21 – Example Categories
Δ vs. 16 WE 12/27/20
Edible Increased Reduction in Mix Shift / Tot Price /
Everyday Price Promotion Premiumization Volume Change Mix Shift/
Nonedible
Premiumization
Spices / Seasonings 0.3% 1.5% 12.7% 14.4% +8.2
Dish Detergent -1.3% 4.8% 8.2% 11.8% +1.3
Sugar 1.9% 4.2% 2.7% 8.8% +2.0
Cups & Plates 0.2% 5.1% 2.9% 8.3% +2.9
CSD 1.5% 3.5% 2.0% 7.0% +0.4
Fz Novelties -1.0% 3.5% 4.3% 6.8% +2.4
Pet Food -0.4% 1.5% 5.7% 6.8% +1.0
Bread -0.7% 2.8% 4.3% 6.4% +1.2
Soap -2.4% 4.3% 4.0% 5.9% -0.8
Bottled Water 0.9% 0.6% 4.3% 5.8% +2.5
Salty Snacks -1.4% 4.7% 1.5% 4.8% +0.8
Energy Drinks -0.2% -0.1% 5.1% 4.8% +3.6
Laundry Detergent 0.3% 1.1% 3.1% 4.4% +0.1
Beer 0.8% 1.0% 2.3% 4.1% +0.9
Ice Cream 0.0% 1.0% 2.8% 3.9% -0.4
Pasta -0.4% 1.3% 2.4% 3.3% +0.5
Frozen Pizza -0.7% 2.1% 1.7% 3.0% +0.4
Chocolate Candy -0.5% 2.0% 1.2% 2.8% -0.5
To learn more about premiumization , read The Premium Opportunity report. Note: Everyday price at item level. Promotions includes promotion frequency and depth (driven by frequency). Mix shift refers to difference in product
mix vs. YA, driven by shifts to more premium brands (positive effect) countering shift to larger pack sizes (negative effect).
Source: IRI POS 12 WE 3/21/21, 16 WE 12/27/20, Grocery channel. IRI Strategic Analytics..
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 5
CONTEXT
Premium Brands Grew in Many
Categories as Shoppers Traded Up
Category Price Tiers and Brands – Representative Categories
Chocolate Candy Frozen Entrées
Private Label Value Mainstream Premium Private Label Value Mainstream Premium
1.7% 4.0%
Pre- Pre-
13.8% 65.1% 19.4% $14.6B 12.5% 55.7% 27.7% $9.4B
COV COV
L52 13.3% 64.0% 20.8% $15.5B L52 12.1% 54.2% 29.6% $10.6B
1.9% 4.1%
+0.2 -0.5 -1.1 +1.4 +0.1 -0.5 -1.5 +1.9
Premium small Health and comfort
indulgences grow brands contribute most
to premium growth
Baking Mixes Soap
Private Label Value Mainstream Premium Private Label Value Mainstream Premium
3.6% 8.9%
Pre- Pre-
8.6% 62.0% 25.8% $1.3B 9.9% 60.4% 20.9% $5.3B
COV COV
L52 8.8% 60.6% 27.5% $1.6B L52 11.5% 54.5% 27.7% $7.5B
3.1% 6.2%
-0.5 +0.2 -1.4 +1.7 -2.6 +1.6 -5.8 +6.8
Premium brands with
alternatives for allergies and Smaller premium
dietary restrictions gain share brands grew share
Note: Price Tiers calculated at Major Brand Level from Subcategory Price/Vol as Premium > 1.25*Avg, Value < .75*Avg Source: IRI POS; Pre-COVID-19 52 WE 2/23/20, L52 WE 3/21/21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 6
PRICING CHALLENGES
Demand for In-Home Consumption Is Expected to Decline vs. Last
Year as Consumers Begin to Resume Pre-Pandemic Behaviors
U.S. Consumer Mobility vs. F&B At-Home Volume
% chg. from pre-COVID-19 (Jan mid-Feb ’20) base, 4 wk rolling avg – est. total Omnichannel Full-Service Restaurants Performance
All Restaurants (including closed)
40 $ sales % chg. vs. pre-COVID-19
2020 F&B volume For restaurants that remain open,
30 ~+8%
~+10-12% vs. vs. Jan- +6% sales are near pre-COVID-19 levels
Jan-Feb 2020 Feb 2020
vs. Jan-
20 Feb 2020
+3% March -55
+3%
vs. Jan- vs. Jan- April -83
Median
10 Feb 2020 Feb 2020
Forecast May -69
F&B
Volume June -53
0
July -50
10/1/2020
10/1/2021
1/1/2020
4/1/2020
7/1/2020
1/1/2021
4/1/2021
7/1/2021
1/1/2022
Mobility 2020 vs.
2019 August -48
-10
September -42
-20 October -42
November -55
Forecast
-30 December -61
based on assumption of full COVID-
19 vaccine distribution by June 2021
January -53
-40
Q2 ‘21
Q1 ‘21
Q3 ‘21
Q4 ‘21
February -50
2021 vs.
2019 March -47
-50
Demand for categories will continue to be idiosyncratic April -32
Omnichannel = MULO+C + Costco + eCom – Overlap. Source: Google Mobility – Workplace. IRI POS data. IRI Strategic Analytics models. IRI analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 7
PRICING CHALLENGES
More Pricing Is Expected for 2021: CPGs Need to Leverage the Full
Spectrum of Revenue Growth Levers as Price / Mix Growth Accelerates
CPG Price / Mix Growth Andre Schulten, P&G CFO
"As opportunities allow, we’ll close a couple of price increases
% chg vs. YA % chg vs. 2YA
with new product innovations, adding value for consumers.”
Price / mix
James Quincey, Coca-Cola CEO
6.7% has grown “There will have to be some price increases… We intend to
5.6%
5.3%
4.4% on average manage those intelligently, thinking through the way we use
package sizes and really optimize the price points for consumers."
4.0%
1.9%
3.3% 3.3%
2.5% Dave Marberger, Conagra CFO
“History shows us that price adjustments are more likely to be
over last accepted in the market when industrywide and broad-based
EDIBLE 10 years input cost inflation occurs…”
Q1 L4
2019 2020 12 WE 3-21-21 4 WE 4-18-21 Vivek Sankaran, Albertsons CEO
“Inflation of 3% to 4% can be passed on to the consumer,
8.8% Price / mix but if inflation goes higher there will be difficult conversations
7.9% throughout the supply chain.”
7.4% growth last
5.7% 5.7% exceeded Michael Hsu, Kimberly-Clark CEO
5.1% "We expect some of the net benefit from COVID-19 dynamics,
4.4%
3.5% 5% in including higher consumer demand, to reverse. In addition,
2008
commodity costs are rising globally…"
Linda Rendle, Clorox CEO
“We’re looking at price increases…in a category-by-category
approach… We’ll focus on… margin-accretive innovation.”
NONEDIBLE
Note: Price / Mix is dollar-weighted price per volume % change across categories. Source: IRI POS Data, MULO+C; Earnings Call Transcripts.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 8
PRICING CHALLENGES
Price Sensitivity Is Rising Again After
Dropping During the COVID-19 Pandemic
CPG Average Promoted Price Group (PPG) Price Elasticity / Grocery Channel
39 w/e 3/1/20 26 w/e 10/26/20 39 w/e 2/28/21
Edible Nonedible
% reduction
in volume
from 10% -8.5 -10
increase
in price
-12.9
-14.8
-16.3
-17.1
-18.9 +4.4
-6.3
+0.8
-2.6
Revenue Growth Management Opportunities | Reshape elasticity curves leveraging
behavioral economics (e.g., attribute priming, anchoring, assortment curation, bundling).1
1
Psychology of Pricing: Reshaping Your Elasticity Curve Note: Avg PPG price elasticity measured across PPGs (top 80% by volume) in representative categories. Source: IRI Revenue Growth Management proprietary models.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 9
PRICING CHALLENGES
Retailers and Manufacturers Will Fight to Improve Market Share
and Retain Buyers Acquired During the Pandemic Surge
Retailers Will Be Fighting for Market Share Even as Manufacturers Will Work to Retain the New
Some In-Home Consumption Switches to Out-of-Home Consumers They Acquired During Pandemic
Comparable Sales Growth Top Growing Brands by New Buyers Gained
Edible No. of HH Buying 2020 HH
Latest Fiscal Year Latest Quarter Quarter Ending Chg. vs. YA Penetration
Nonedible
19.3% 20.5% Jan 30, 2021 1 Angel Soft 13.2 M 34%
Large Brands gained
16.9% 11.8% Feb 27, 2021 an average of 1.9 M 2 Lysol 12.1 M 56%
new buyers
16.3% 21.6% Jan 29, 2021 3 Charmin 11.2 M 47%
14.4% 11.2% Dec 31, 2020 1 Hunt’s 8.4 M 57%
Medium Brands 2 Bimbo 7.8 M 34%
14.1% 10.6% Jan 30, 2021
gained 1.3 M
12.8% 12.6% Feb 14,2021 3 Northern 6.9 M 22%
11.8% 10.8% Jan 29, 2021 1 Germ X 20.2 M 19%
Small Brands gained
8.6% 8.6% Jan 29, 2021
0.7 M new buyers 2 Microban 8.9 M 7%
3 Kinder 8.7 M 20%
Source: Earnings Reports. IRI 2020 Trends and 2021 Emerging Growth Pockets. / Note: Costco is average of latest 4 quarters ending Feb 14, 2021. Comparable Sales Growth excludes Fuel for most Retailers
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 10PRICING CHALLENGES
Promotions Will Revert to “Normal” Levels as Retailers and Expectations
Manufacturers Fight to Retain Buyers and Grow Market Share Expect promotions to revert to
normal levels later in the year as
consumer mobility starts to
CPG Promotional Index / MULO increase and away-from-home
vs. YA vs. 2 YA spending recovers.
Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ’21 4 WE Some manufacturers have
12 WE 03-22-20 12 WE 06-14-20 12 WE 09-06-20 12 WE 12-27-20 12 WE 03-21-21 04-18-21 invested to expand their
146.7
capacity and will be pressured
to drive volume.
93.6 90.9 88.1 88.0 93.8 87.8 87.5
79.3 79.5
57.9 57.3
EDIBLE Revenue Growth
130.5
Management
99.3 95.5
Opportunities
79.1 79.5 83.2 82.6 88.0
73.4 73.1 Winners will rethink and
60.9 58.1
innovate on promotions –
in-store and online – that drive
truly incremental volume and
NONEDIBLE reduce unproductive spend.
Promotional index defined as % of dollar sales sold with any merchandising condition, indexed to YA value. Source: IRI POS data ending 3/21/21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 11CATEGORIES
Winners Will Leverage All COMPETITION
Revenue Growth Levers
New Skillsets that Leverage Technology, Real-Time
EVERYDAY PRICES
POS, Consumer and Shopper Data, Advanced
Analytics, Machine Learning, and Artificial Intelligence
PROMOTIONS
INNOVATION
SHOPPERS
OCCASIONS
BRAND VALUE CHANNELS
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 12CATEGORIES
Investments in Machine Learning Enable Quick Identification
of Pricing Opportunities and “Size of the Prize”
Machine Learning Provides Real-Time Insights, Enabling Quick Action
Prioritize Pricing Decisions
Identify Pricing Opportunities Based on the Size of the Prize
Which Retailers have NOT Reflected 15% SRP Increases on Product A?
Brand A – Unify Predictive Recommendations May/June ’20
Category in Channel, Price & Promo Opportunities
Automated Insights
Retailer A Retailer B Retailer D Retailer F Brand
Retailer C Retailer E
A
Brand A Retailer A, Retailer B,
Brand A Retailer A, Retailer B,
Retailer G Retailer H Retailer I Retailer J Geo A Retailer K
Brand A Product A
Retailer L Retailer M Geo B Retailer N Retailer O Retailer C Brand A Brand B Retailer
Product Product
A
A A
Brand A Brand B
Product Retailer
Retailer L Retailer F Retailer K Retailer H Retailer M Retailer C Product B
A A
Brand A Brand C
Product Retailer
Product C
B A
Retailer A Retailer K Retailer G Retailer I Retailer N Retailer E Brand A Brand D
Product Product Retailer
D
A A
Brand A Brand E
Retailer L Retailer H Retailer J Geo B Geo A Retailer I Product Product Retailer
C
B A
Brand A Brand F
Retailer G Retailer M Retailer E Geo B Geo A Retailer O Product Product Retailer
C
B A
Brand A Retailer A, Retailer B,
Brand A Retailer A, Retailer B,
Brand A Retailer A, Retailer B,
Brand
Brand C
Manual and inconsistent revenue management processes used to search for price and
promotion execution gaps and opportunities will be replaced with on-demand, proactive, real-time
push of alerts and predictors so that managers can quickly capture revenue growth opportunities.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 13CATEGORIES
Winners Leverage Quick Pricing Diagnostics to Quantify
the Risk / Reward Continuum for Pricing Actions
Select Examples – Pricing Risk / Reward Evaluation – Volume Sales Rate Index by Price Point
Inelastic Example: Low Pricing Risk Elastic Example: High Pricing Risk
Sales Rates Are Relatively Unchanged as Prices Increase Sales Rates React Strongly to Changes in Price
Pricing diagnostics often help quantify price leverage for a brand in the context of its competitive value position
and save companies from unnecessary price moves when opportunities lie elsewhere.
Note: Reported Base Price Point is the point’s range ending point and includes a full dime’s worth of prices. Points start at this value, i.e., $0.99 is a Base Price Point of $0.90 thru $0.99. Source: IRI MULOC
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 14CATEGORIES
Take Price in Categories That Revenue Growth
Management
Have a Lower Volume Impact Opportunities
Managers who invest
Representative Categories – Category Volume Change from 5% Price Increase
to understand price
elasticity for their
Batteries brands and
-6.0% categories, as well as
Bottled Juices - SS
Laundry competitive and
Detergent -7.2%
substitute solutions
-7.5%
Chocolate Salty Bottled across key purchase
Candy Snacks Water scenarios, can
Greatest -8.3% -7.4% -6.9% Least increase topline sales
Volume Volume by more than 2%.
Decrease Decrease
Leaders take price
early in select
categories and
Baking brands to increase
Crackers Cookies Vitamins
Needs their optionality and
-8.3% -7.1% -3.3%
-7.4% retain promotional
Frozen flexibility as needed.
Ice Cream/ Toothpaste
Pizza Sherbet -6.4%
-8.2% -7.2%
Source: IRI Revenue Management Database. 39WE 2/28/21.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 15COMPETITION
Monitor Competitive Price Gaps at
Market-Account Level in Real Time
and Take Quick Corrective Action
Client Example – Aggressively and Granularly
Monitor Competitor Price Gaps
“Instead of having a team dedicated to
pulling data and searching for price and
promo execution gaps, technology does
that work for us and delivers us exactly
the insights we need as soon as data is
released, saving our finance team hours
of work every week.”
— Director of Revenue Management
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 16COMPETITION
Monitor Competitive Promotions and Their Impact to Identify
and Quickly React to Promotion Opportunities and Risks
Benchmarking Promotional Execution
Convenience Channel, Latest 52 weeks vs. Latest 12 Weeks on Promotion
Last 52 Weeks Last 12 Weeks
36
34
Competitor is now
getting more than its
fair share of quality
20
18 merchandising.
8 8
6
2
Brand A Competitor Brand A Competitor Brand A Competitor Brand A Competitor
Any Merch Quality Merch Any Merch Quality Merch
Source: IRI disguised client example.
Note: Weeks of promotion support less frequent than comparison products. Brand A had fewer weeks of support than 1 comparison product for Latest 52 WE 02-21-21. Minimum promo weeks of support difference is 1.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 17COMPETITION
Leaders Track Changes of Own Brand and Competitive
Brand Price Sensitivity to Determine Appropriate Action
Examples – Brand Base Price Elasticity
2020
2021
Mainstream wafer Premium breakfast
with no claims cookie with claims: Indulgent pizza with a wide Premium, exotic flavors
-1.0 • Whole Grains variety of forms and crust with claims including:
-1.0 options with claims: • 100% Real Cheese
-1.1 • 4 Hours of Nutritious
+39.5% Steady Energy • 100% Real Cheese • Preservative-free crust
-1.2 More price • Natural Flavors • Preservative-free crust • No Artificial Flavors
-1.3 • No Artificial Flavors
Price Elasticity
sensitive
-1.4 -1.4
-1.5 -21.2% -1.5
-5.9%
-1.6 Less price -1.6 Less price -1.7 -1.8%
-1.7 sensitive sensitive
-1.7
-1.8 Minimal
-1.7
• Avoid everyday price • Monitor promos to cut Change
-1.9 -1.9
erosion unproductive events • Seek any remaining pockets
-2.0
• Use targeted promotions • Leverage differentiating product claims on packaging of leverage across the category
to drive volume to take price to be able to take price
• Strengthen brand value • Use brand equity to secure quality support for events, • Ensure a strong, compelling
proposition improving lift for the remaining weeks on promo price-value curve vs. competitors
Source: IRI Revenue Management Database. Pre-Period = 39WE 3/1/20; Post-Period = 39WE 2/28/21.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 18EVERYDAY PRICING
A Key Lever of Revenue Growth Is Identification and Correction
of Misaligned Price-Volume Curves in a Competitive Context
Client Example – Brand 1 vs. Brand 2 Price / Volume Curve – Retailer 1
Non-Promoted Avg. Price per Unit, 52 WE February 23, 2020 – Retailer 1
Brand 1 Product 1 Product 4 Brand 2 Product 1 Product 4
4oz Product 2 Product 5 8oz Product 2 Product 5
8oz Product 3 Product 6 Product 3 Product 6
Non- Promo Price per Count / Ounce
Non-Promo Price per Count / Ounce
12oz
7oz
12oz
24oz
24oz
14ct 28ct
14ct
20ct 16ct 24ct
24ct 28ct
20ct 24ct
40ct 24ct
20ct 80ct 48ct
30ct 40ct
60ct
Non-Promo Price Per Unit Non-Promo Price Per Unit
Incentive curve analysis across retailers, triangulated with elasticity modeling, identifies new price-pack opportunities.
Source: Disguised Client Example. IRI Consulting analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 19“
EVERYDAY PRICING
It’s Critical to Quickly Determine Optimal Everyday Prices at Account
and Pack Level, Especially in an Uncertain and Uneven Environment
Client Example – Impact of Everyday Price Changes
“Our team
Retail
Price Recommendation Unit Sales Revenue Contribution focuses now on
Product (Allowable Range, Current, Change Change Change
Account
Recommended) % % % forward-looking
$4.12 $5.04
Brand A, actions instead
Account X 2.2% 1.7% -0.4%
Pack 1 $4.12 4.35
-5.3% of working with
$1.69 $2.06
Brand A,
backward data.”
Account Y 22.7% 11.6% 9.3%
Pack 2 $1.69 $1.92
-12.0% VP of Revenue
”
$1.83 $1.99 Management
Brand A,
Account Z 0.1% 0.0% 0.0%
Pack 2 $1.79 $1.91
+6.7%
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 20PROMOTIONS
Leaders Leverage Technology to Proactively Identify
and Correct Violations of Pricing Guidelines
Client Example – IRI Opportunity Alerts
Capturing Such Granular Opportunities Can Collectively Lead to a 1% Increase in Revenues
Brand A
Retailer 1 is the only
Brand A retailer that is in violation
of the established
lowest promoted price
point of $0.79
Brand A
Brand A
Retailers can use promotions strategically to drive growth where
there is greater price reaction and return on investment.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 21PROMOTIONS
Optimize Trade Calendars at Brand-Pack-
Account Level by Testing Different Options
Client Example
Giving access to promo effectiveness, scenario capabilities enabled sales growth up to 5% for same level of trade spend
Simulate Runs & Measure Impact of Different Promo Calendars Evaluate Scenarios at the Account and Across Accounts
(including changes to everyday price)
Key inputs and assumptions Summary of expected Summary of metrics for Recommendation
(COGS, list price, etc.) outcome for each scenario each potential scenario rationale
Simulate
different #
of wks of
different
promos
Source: IRI disguised client example. IRI POS Data, Pricing Study, Trade Simulator, and Consulting Analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 22PROMOTIONS
Leverage Machine Learning to
Drive Profitable Trade Decisions
Client Example – Trade Event Optimization
IMPACT: 10 ppts ROI Improvement Drove Operating Profit Improvement of 15% and 5% Increase in Sales
Looking across investment opportunities for each …and used this to optimize the mix of Hi/Lo and EDLP promos
brand we found significant variation in effectiveness at an account level to drive top- and bottom-line growth.
of existing investment being made…
Original Scenario $4.49 Base Price
Promotions
$3.78 Base Price $3.49/$2.99 Scan Promos
$4.50 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
16 PPG A $2.99 14
$4.00
Incremental Profit per Dollar Invested
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
$3.50
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
8 PPG A MEGA $3.49/$2.99 0
PPG A Must
$3.49 Buy 3 12
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
$3.00 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
9 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
$2.50 8
7
9
8
1 0
9
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
1 0
16 BOO50
PPG B $3.49 16
$2.00 16 PPG C B1G1
$7.99 16
6 7 8 9 1 0 1 0 1 0 1 0 1 0 1 0
5 6 7 8 9 1 0 1 0 1 0 1 0 1 0
$1.50
5 5 6 7 8 9 1 0 1 0 1 0 1 0
4 5 5 6 7 8 9 9 9 9
$3.78 EDLP PPG A $4.49
$1.00
3 4 5 5 6 6 8 8 8 8
2 3 4 5 5 5 6 6 7 7
$0.50 Expected Improvement vs. Original Scenario
0 2 3 4 5 5 5 5 5 5
0 0 2 2 4 4 5 5 5 5
0 0 1 1 2 2 4 4 5 5
$0.00 0 0 0 0 1 1 2 2 4 4
0 0 0 0 0 0 0 0 0 0
Manufacturer Metrics Retailer Metrics
-$0.50 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
-$1.00 0 0 0 0 0 0 0 0 0 0
Volume +8% Retail Sales +9%
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Net Sales +8% Retail Profit +10%
Mfg Profit +8% Retail Mgn +1 ppts
Price Investment ($ per week) Trade ROI +28 ppts
Evaluating against the total system profit pool ensured trade In addition to driving the manufacturer / retailer win-wins,
plans that benefitted both the client and its retail partners. these new trade plans significantly increased ROI.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 23PROMOTIONS
When a Category Grows More Sensitive, Brands Need to Guard Equity
and Ensure Their Fair Share of Quality Merchandising to Drive Productivity
Client Example – Promo Weeks of Support vs. Competitor Products: Selected Outputs
Promoted Recommended Quality Recommended Total Unit Sales Retail Sales Mfr. Profit
Price Account Merchandising Weeks Weeks Change Change Change
Group Change Result Change Result % % %
Pack 1 Account X -2 31 +2 41 6.8% 8.6% 6.7%
Pack 1 Account Y +2 38 -1 41 5.1% 6.1% 5.1%
Pack 2 Account Z +3 21 -- 32 4.4% 6.5% 4.3%
Pack 2 Account K +4 26 +5 32 18.5% 22.3% 18.3%
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 24PROMOTIONS
Monitor Promos to Ensure They Drive Planned Results, But Allow for
Ongoing Refinements in the Trade Calendar and Avoid Oversaturation
Promo Execution and Competitive Promotions
Brand A Pack 2 at Retailer X
Typical Promotional Lifts Alerts trigger when promo event yields
Illustrative Example greater or less than expected/threshold lift
TPR Feature Display F&D
Action:
> 50% TPR 200% 250% 300% 400%
Identify incremental execution opportunities
Promoted Price
BOGO 100% 150% 200% 300%
at that and at other accounts
Buy 2, get 1 75% 100% 150% 200%
20-25% TPR 50% 100% 125% 175%
10-19% TPR 25% 50% 75% 150% Alerts trigger when competitive promo
< 10% TPR 10% 30% 50% 75% event yields greater than typical lift
Everyday Price 20% 35% 35%
Action:
Process done for all packs Work with account teams to assess why
and geographies selected for analysis. event yielded unexpected lift and act
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 25SHOPPERS
Revenue Growth Innovators Leverage Frequent Shopper Data to Revenue
Understand Which Promotions & Packs Drive Truly Incremental Sales Growth
Management
Client Example – Responsiveness of Promotions by Shopper Segment / Segment Index to Average Opportunities
Pack A: Deeper Must Pack A: BOGO with Pack B: Shallower Pack B: Buy 2 Get 1 Retailers can
Buy 3 Promo Display Support BOGO50 with Display Support understand the
Strong Response Skewed More Toward More Evenly Distributed; Strong Response
from Loyal Buyers Light Buyers & Switchers Higher Focus on Switchers From Switchers effect of their
pricing and
Loyal to Heavy 117 130
Other Brand
100 103 promotion on
Medium 102 107 87 94 specific shopper
segments in
CATEGORY USAGE
Light 146 167 112 101
Switcher Heavy 107 125 122 134 order to drive
Medium 102 110 107 115 penetration and
115 194
incremental
Light 146 145
revenue.
Loyal to Heavy 178 86 113 78
Brand X
Medium 156 96 103 97
Light 91 170 121 101
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 26SHOPPERS
Use Shopper Data to Tailor Promos and Merchandising Types
to Target Specific Shopper Segments Like Brand Switchers
Client Example – Promotional and Merchandising Responsiveness by Shopper Segment
Segment Level Engagement Indices vs. All Promotional Weeks, IRI FSP Data
Feature BOGO 40% off with Display
Heavy 150 200 142 134 130
CATEGORY USAGE
Moderate 130 160
Light 160 170 142
Loyal to Loyal to Loyal to Loyal to
other brands Client Brand other brands Client Brand
BRAND LOYALTY
Deep feature events engage heavy category buyers, in particular brand switchers, while deeper
display events engage moderate and light category buyers, in particular brand switchers.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 27SHOPPERS
Use Shopper Data to Identify Tactics That Attract
Brand Switchers and Adjust Promotional Strategy
Client Example – Brand Switcher Share of Pack Sales
% of Sales Total Category and Client Brand X, IRI FSP Data
Client brand was not getting fair share of brand switchers
due to not offering a competitively priced small pack.
All Other Smaller Packs Larger Packs
Total
Category 11% 52% 37%
Client
2% 20% 78%
Brand
Winners gain additional revenue and share growth by understanding
shopper preferences and purchase behavior at account level.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 28SHOPPERS
Shopper Data Identifies Key Weeks to Run Promotions and for Identified key
category weeks to
Partnerships With Retailers to Win with Specific Shopper Segments win through
promotions when
Client Example – Dollar Sales Index by Week for Millennials
millennials are
with Moderate Category Engagement – IRI FSP Data most engaged in
Segment Level Sales Index by Week the category.
($ index)
Leaders leverage
granular analytics to
identify key weeks
to promote when
valuable shoppers
are in the market.
Winners work
collaboratively with
retailers to engage
with the right
shoppers, right
packs, and right
promotions at the
right time.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 29SHOPPERS / CHANNELS
Leaders Tailor Pack Size Offerings by Channel to Strengthen Winning
the Value Proposition and Better Incent Upsell Opportunities Manufacturers
factor in
Client Example – Refining Price Pack Channel Architecture retailers’ shopper
perspectives and
collaborate with
Competitive, Channel-Specific Packs Developed via a Granular Understanding of Shoppers the retailer to
IMPACT: New assortments grew multi-pack sales 12–15% across all channels; grew mkt share to a 5-year high
bring the right
packs, prices and
Current Architecture Recommended Architecture promotions to the
market.
Retailers fine-
tune assortment;
build both value
and premium
offerings and
manage trade-in
gap between
value and
mainstream and
between
mainstream and
premium brands.
Source: IRI client work.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 30CHANNELS
Online Price Sensitivity Remains Lower Expectations
Leading players consider
Than Grocery Price Sensitivity differentiated assortment and
pricing in-store vs. online to incent
CPG Average PPG Price Elasticity Grocery, e-Commerce traffic to both channels.
39 w/e 3/1/20 26 w/e 10/26/20 39 w/e 2/28/21 Break line-pricing for complex
flavors, special packs and LTOs
in e-commerce where consumers
are willing to pay extra for value.
Promote differently
Grocery E-Commerce –
in-store and online.
Pure Play Delivery
% reduction in
volume from -10
10% increase
in price Revenue Growth
-13.0 Management
-13.8
-14.7
Opportunities
-16.6
-18.5 +0.8 Winning retailers attract
and retain omnichannel
-20.5 shoppers who are less price
+1.9 sensitive and more loyal with
-3.8 -7.5 right targeting, messaging
and assortment.
Note: Average PPG price elasticity measured across PPGs (top 80% by volume) in 30 representative categories. E-commerce based on pure-play ecom
retailer. 26 WE 10/6/19 vs. 26 WE 10/4/20. Source: IRI Revenue Growth Management proprietary models.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 31BRAND VALUE
Brands and Products That Can Make More Targeted
and Aligned Claims Have Price Leverage
Select Examples – While shoppers tend to appreciate sourcing claims, they rarely are willing to pay more for them.
Keebler Club Crackers Blue Bell
Mainstream Cracker
Mainstream Ice Cream
Elasticity
No claim Elasticity Claim:
2020 2021
2020 2021 • Natural & artificial
flavor added 1.72 -1.92
-1.99 -3.16
ICE CREAM / SHERBET
Pepperidge Farm Goldfish Ben & Jerry’s
Mainstream Snack Cracker Theme-flavored Premium Ice Cream
CRACKERS
Claims:
Claims: Elasticity • Non-GMO
• Responsibly Sourced Elasticity
• Baked 2020 2021
• 100% Real Cheese Packaging 2020 2021
-1.67 -1.58 -1.36 -1.30
• Fairtrade
• Cage-free Eggs
Triscuit So Delicious
Mainstream BFY Whole Grain Cracker Specialty Dairy-Free Ice Cream
Claims:
Claims:
• Baked Elasticity
• Certified B Corporation Elasticity
• No artificial colors or flavors 2020 2021 • Gluten Free 2020 2021
• Non-GMO -1.71 -1.20 • Non-GMO -1.16 -0.66
• 100% Whole Grain Wheat
Source: IRI Revenue Management Database. Pre Period = 39WE 3/1/20; Post Period = 39WE 2/28/21.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 32BRAND VALUE
Leveraging Multiple Claims on Packaging Helped
Elevate a Brand to a More Premium Price Position
Client Example – Strengthening Brand Value Proposition
Potential Individual Claims the Brand Could Make …But Shoppers Were Willing to Pay a 25% Premium
Did Not Make a Significant Difference … for a Combination of the Claims
Individual Impact on Price Shopper
Claim Shoppers Would Pay Rationale
Organic +3% “That doesn’t mean it’s Combined Claim:
healthy” “Organic, No Artificial
No Artificial +3% “Yes, but it’s not good Ingredients, 3g of Protein
Ingredients enough to be organic” per Serving”
3 Grams of +5% “That could be due to a
Protein series of bad additives”
Impact: Not only did the brand
strengthen its appeal among core
No single claim could justify enough users, but it also helped trade-up
of a premium to offset the costs of carrying it. mainstream cracker buyers.
Source: IRI client work.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 33BRAND VALUE
Soap Brands With Natural, Beauty Benefitting
Ingredients Gained Share Over Mainstream Brands
Premium Brand Share Growth – Select Examples
Moisturizing, for sensitive skin,
Fair trade, Naturally derived ingredients
plant-derived ingredients
made with organic oils including lavender, eucalyptus, shea
including almond milk, agave,
raw coconut, avocado oil
L52 Share: 1.1% L52 Share: 1.0% L52 Share: 0.1%
+0.5 ppt chg. vs. pre-COVID-19 +0.04 ppt chg. vs. pre-COVID-19 +0.01 ppt chg. vs. pre-COVID-19
Source: IRI POS; Pre-COVID-19 52 WE 2-23-20, L52 WE 3-21-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 34OCCASIONS
Tailor Products to Different Needs
and Occasions for Revenue Growth
Brand Innovation – Select Examples
Base Oreo Thins Mini Snack Packs
Standard Pack (14.3 oz) Standard Pack (10.1 oz) Standard (12 oz)
Original cookie with Thin cookies for a lighter, Snack packs for single-serve
resealable package to crispier take on the original personal consumption;
maintain freshness Oreo, with resealable container convenient travel size that’s
with an easy-pull tab great for on-the-go snacking
$3.23 $3.30 $3.31 $5.07 153 $4.81 $5.54 168
14.3oz 10.1oz PPV Index to
12oz PPV Index to
Standard Pack Standard Pack
Price/Unit Price/Vol (PPV) Price/Unit Price/Vol Price/Unit Price/Vol
Elasticity Elasticity Elasticity
2020 2021 2020 2021 2020 2021
-1.56 -1.60 -1.78 -1.37 -1.22 -1.43
Source: IRI Revenue Mgmt. Database. Pre Period = 39WE 3/1/20; Post Period = 39WE 2/28/21. IRI POS, MULO, 52 WE 4-18-21. Price Index calculated as (Price per Volume/Standard Pack Size Price per Volume)*100.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 35INNOVATION
In a Very Competitive Category, a Manufacturer Needed
to Premiumize to Remain Financially Viable
Client Example – Strengthening Brand Value Proposition Example
A frozen foods manufacturer added a protein Tailored innovation
claim to take credit in the short-term… around the protein concept...
New Claims:
“Good source of protein” • 30g Protein / 13g Net Carbs
• Good Source of Fiber
• No Preservatives
…gaining 0.6 ppts of share with no additional …resulted in a gain of an additional ~4 ppts of share
investment in product COGS through growth in both volume and price / mix
IMPACT: This brand nearly doubled its profit dollars per unit after strengthening its high protein positioning.
Note: Disguised Client Example
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 36INNOVATION
Brands That Differentiate Through Premium Ingredients,
Unique Flavors and Dietary Alternatives Can Price More
Premium Brand Pricing and Share Growth – Select Examples
Premium Ingredients Unique Flavors Dietary Alternatives
Basil, Cherry Tomatoes, BBQ Chicken, Sicilian, Dairy Free, Soy Free
Asiago, Cremini Mushrooms Four Cheese, Margherita Gluten Free, Meatless
$6.15 152 $6.45 159 $7.46 184
Index to Index to Index to
Price/Unit Category Avg Price/Unit Category Avg Price/Unit Category Avg
L52 Share: 1.7% L52 Share: 3.7% L52 Share: 0.8%
+0.3 ppt chg. vs. pre-COVID-19 +0.2 ppt chg. vs. pre-COVID-19 +0.3 ppt chg. vs. pre-COVID-19
Winners home in on granular consumer data to understand emerging trends, articulated
and unarticulated, to capture pricing opportunities (e.g., limited time offers, seasonal products).
Source: IRI POS; MULOC, L52 WE 4-18-21. Pre-COVID-19 52 WE 2-23-20.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 37Revenue • Monitor price elasticity at a granular level with high frequency to capitalize on
Growth pricing opportunities in the supply-constrained environment.
Manufacturer
• Continuously track promotional effectiveness and direct investments to efforts that
Opportunities deliver the highest returns.
• Understand price-pack opportunities across channels and consumers and
To win the market share assess potential evolution, especially with e-commerce vs. in-store.
battle in this inflationary • Ensure adequate opening price points and value products, while driving sales of
environment, it is critical to premium and super premium products.
quickly discover pricing and • Manage the trade-in gap between value and mainstream and between
promotion opportunities and mainstream and premium brands.
enable granular execution by • Drive occasions and innovate to realize value.
providing prescriptive and
intelligent recommendations
to the right decision makers • Attract and retain omnichannel shoppers who are less price sensitive and more
(HQ/Field, HQ/Store). To do loyal with the right targeting, messaging and assortment.
this at scale, CPGs and • Fine-tune assortment; build both value and premium offerings and manage the trade-
retailers need to leverage in gap between value and mainstream and between mainstream and premium brands.
advanced analytics (e.g., • Understand the effect of pricing and promotion on specific shopper segments in
elasticity), new technologies order to drive penetration and incremental revenue.
(e.g., machine learning, • Use promotions strategically to drive growth where there is greater price reaction
Retailer
automation) and datasets (e.g., and return on investment.
shopper, consumer, POS). • Continuously monitor price and promotional elasticity at granular levels and adapt
revenue growth management practices.
Winners are enabling their
• Articulate your total value to consumers and shore up your opening price point
organization to make profitable
products as inflation picks up and a segment of shoppers trades down and looks for
decisions via new sets of tools. value products and retailers that offer more value.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 38Join IRI for the
Revenue Growth
Management
Webinar May 20
(click here to register)
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 39IRI’s Revenue Growth Management Enterprise Solutions Are the Nexus of
World Class Predictive Price & Trade Models and Real-Time POS Data
Opportunity Alerts Price & Pricing
& Predictors Trade Advantage Diagnostic
• Delivers a fully automated • Enables price and trade strategy • Manages risk by identifying
personalized decision-making to maximize sales, share, and changes in sales velocity at
platform with alerts and size of profit objectives by war-gaming specific price points and price
the prize multiple scenarios and comparing gaps and identifies root causes
• Harnesses IRI’s advanced store- outcomes. for sales and share change
level price and promo modeling to • Informs price and trade decisions • Achieves planned price
determine granular, retailer- based on full category results realization and avoids key
specific impacts from pricing and promo actions competitive gap violations.
• Leverages machine learning for • Harnesses IRI’s advanced store- • Avoids sales losses at customers
quick identification of level price and promo modeling to that appear threshold- and gap-
opportunities determine granular, retailer- compliant on average.
specific impacts
Action and Impact
3-5% growth in sales Generate 3% to 5% improvement in 10X+ productivity gains in
price realization and determining root cause of
Up to 5% growth in margin trade efficiencies for top- business trajectory and identifying
and bottom-line growth areas of improvement
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 40IRI Offers Solutions and Services to Drive Pricing Discipline in a Downturn,
From End-to-End Consulting to Automated Alerts and Granular Analytics
Assortment Portfolio Profitability Segment-Specific
Planning Strategy Consulting Pricing Optimization
• Delivers a fully automated • Provides end-to-end guidance to • Enables more strategic pricing
personalized decision-making strengthen value proposition based on securing longer-term
platform • Chooses most profitable shopper loyalty
• Harnesses IRI’s advanced store- opportunities among pricing, pack • Targets price and promo
level modeling to determine size, messaging, and innovation opportunities that resonate with
granular, retailer-specific impact • Grows both top and bottom line most valuable shoppers
• Simulates full category results from while also driving market share • Strengthens position as a
assortment and space decisions, • Builds win-win for retailers and strategic advisor to retail
accounting for demand transfer manufacturers to drive engagement • Decomposes price and promo
• Allows contingency and scenario and compliance elasticity across consumer
planning, along with ongoing segments
monitoring and tracking
Action and Impact
>2-5% sales growth 3-10% growth in sales 5-10% growth in sales
2-5% retail category growth 10-20% reduction in COGS 5 ppts gain in trade lifts
>5% margin gains 5-10% increased conversion
Up to 10% gains in basket size
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 41Mark Clouse Stuart Aitken Vivek Sankaran
President and CEO, Campbell Soup Company Chief Merchant & Marketing Officer, The Kroger Co. President & CEO, Albertsons Companies
November 10, 2020 September 3, 2020 August 25, 2020
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 42IRI’s Latest CPG and Retail Insights Reports to Manage
the Impact of COVID-19 (click to see full report)
The Changing Shape of Discovering Pockets COVID-19 Emerging Recession Proof IRI COVID-19 Impact
the CPG Demand Curve of Demand Point of View Your Business Assessment Reports
14. Vitamins, Minerals, Supplements 4. Winning in CPG E-Commerce 5. COVID-19 Vaccine Update: 7. Defending and Recapturing 5. Anticipating Life After
13. America Is Ready for Football 3. Innovation for a Post- Impact on CPG Industry the Shelf COVID-19
12. Revenue Management Pandemic World 4. Anticipated Vaccine Adoption & 6. Innovation Lessons From the 4. Consumers Provide a
Opportunities in a Pandemic 2. Harness Growth in 2021 Impact on the CPG Industry Great Recession to Apply Pessimistic View of Coming
11. Home for the Holidays 3. Potential Impact of Reduced Today Months
1. The Premium Opportunity
10. Powering the Future of Unemployment Benefit 5. Building Brands During 3. Tracking the Dramatic Pivot
Convenience Retail Changes on F&B Spending Recessionary Times of U.S. Consumer and
2. Consumer Stimulus, 4. Recessionary Lessons to Shopper Behavior
9. Reignite In-Store
Merchandising in Grocery Unemployment Benefit Apply to Private Label Today 2. Then and Now: Consumer
8. SNAP Benefits Spending & Shopping Behavior 3. How Big Brands Performed CPG Behavior During
1. The Impact of a Second Round During the Great Recession Economic Downturns
7. U.S. CPG Growth Leaders
of Stimulus on the CPG 2. Maintaining Pricing Discipline 1. COVID-19: Impact on CPG
6. E-Commerce
Demand Curve During a Recession and Retail
5. Boomers
1. How the Great Recession
4. A Global Perspective
Reshaped CPG Demand Curve
3. Tracking Transformation
2. Meat and Millennials
1. Anticipate the Future
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 43CPG Economic Indicators
Access IRI’s industry-standard metrics for consumer product demand and supply
during the pandemic, our CPG inflation tracker and the latest data on category
trends, out-of-stock levels, consumer sentiment and more.
U.S. Demand Channel Shift E-Commerce
Demand Index™
Index™ Forecasts Index™ Demand Index™
Inflation Out-of-Stock Levels U.S. Topics from
Supply Index™
Tracker™ for Subcategories IRI Social Pulse™
The IRI CPG Demand Index™ provides a standard metric for tracking
changes in spending on consumer packaged goods.
U.S. Demand Index™ Forecasts are delivered through a proprietary,
fully automated forecasting solution that anticipates consumer demand.
Channel Shift Index™ provides a standard metric for tracking changes (migration)
in spending on consumer packaged goods across select channels.
The IRI E-Commerce Demand Index™ provides a standard metric for tracking changes
in spending on consumer packaged goods purchased online.
Inflation Tracker™ provides the well-known price per unit metric for tracking changes in pricing of consumer packaged goods.
Supply Index™ provides a standard metric for tracking changes in product availability (i.e., in-stock rates) in stores for consumer packaged goods.
Out-of-Stock Levels for Top-Selling Subcategories by Market Area in the U.S.
Top U.S. Topics from IRI Social Pulse™
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 44Want to Be the First to Know?
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© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 45IRI Global Headquarters
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