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On the Upside

August 4, 2008

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Nasal Products



Though sales of drug-free nasal strips expanded another 4 percent over the past year, the primary driver behind a 10.9 percent gain in the nasal products segment was strong growth in the nasal sprays/drops/inhalers subcategory, where dollar sales surged 12.3 percent to almost $493 million across channels. Although the category’s been on the rise since late 2006 when products containing the nasal decongestant pseudoephedrine were banned from the shelves, the most recent increase stems from an announcement by the U.S. Food and Drug Administration last October that children ages two to six should not use cough and cold medicines. As a result, products designed especially for kids, as well as those offering a new no-drip delivery system, posted some of the biggest gains. <br><br>




Refrigerated Uncooked Meats



Although rising commodity costs help explain some of the 6.7 percent increase in sales of refrigerated uncooked meats (to more than $1 billion), a 5 percent jump in unit sales suggests there’s more to it than higher prices. Industry watchers say consumers watching their pennies are preparing more meals at home rather than eating or taking out. And manufacturers are making it easier for them with a whole host of value-added features designed to take some of the mystery out of meat preparation. The segment also got a boost from the introduction of several better-for-you options, particularly on the organic and all-natural side. Private label tops the list of best-selling refrigerated uncooked meat “brands,” but despite a 5 percent increase in sales, it lost almost half a share point over the past year – more than any other category player – highlighting growing consumer demand for branded fresh meats. <br><br>




Shelf-Stable Dip



Although it traces its roots to casual dining establishments like Friday’s and Houlihan’s, the trend toward dipping has taken hold at retail, where shelf-stable dip sales shot up 18 percent over the past year to almost $280 million. Industry insiders attribute the gain primarily to two things: First, cash-strapped consumers are entertaining more at home rather than going out, and dips are both convenient and relatively inexpensive to serve. Second, the category has welcomed an array of new varieties recently, broadening the product’s appeal beyond the salsa and queso crowd. While PepsiCo’s Frito-Lay owns the lion’s share of category sales, every brand in the top ten, including private label, posted gains, suggesting consumers are open to other products, especially those that offer better-for-you benefits, a need that’s gone largely unmet so far. <br><br>





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