Table 1: Rice/Popcorn Cakes

Thanks mostly to innovations from the Quaker Co., a unit of PepsiCo that controls 85 percent of the category, dollar sales of rice and popcorn cakes jumped 14.1 percent over a 52-week period in 2007 to almost $220 million across formats. The company’s snack-friendly Quaker Quakes mini rice cakes come in a wide variety of both sweet and savory flavors designed to appeal to a broad audience, and its new Mini Delights, which have already grabbed an 8 percent share, satisfy consumers’ growing demand for portion control. Private label rice and popcorn cakes also had a good year (+15.9 percent), suggesting that shoppers are open to other brands as long as they offer something Quaker doesn’t. Store brands have the value angle covered, but other category players can carve out a niche with unique flavors or ingredients, especially those that offer functional benefits.

Table 2: Suntan Products

Enlarge this picture Source: Information Resources Inc. Total supermarket, drug and mass merchandise sales for the 52 weeks ending Oct. 7, 2007, excluding Wal-Mart.

Rising demand at both ends of the age spectrum drove dollar sales of suntan products up 10.0 percent over the past year to $575.1 million across formats. Also aided by the increasing availability of more convenient spray-on delivery systems, the category got its biggest boost from baby boomers hoping to avoid wrinkles associated with excessive sunbathing and moms trying to protect their children from skin cancer linked to early sun exposure. Although the number-one brand, private label, posted a 35.5 percent gain (probably because it offers a 33 percent savings in a category in which the average price tops $7.50), niche products with specific functions also performed well.

Table 3: Frozen/Refrigerated Pet Foods

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Thanks in part to an appearance by raw pet food advocate Dr. Marty Goldstein on the Oprah Winfrey show last April, dollar sales in this small-but-mighty category climbed 10.2 percent over the past year to $24.2 million, finally giving it legitimacy in the eyes of retailers and manufacturers alike. Like other pet-related categories, frozen and refrigerated pet food sales are likely to see continued growth as a growing number of empty-nesters lavish attention on pets that have replaced children at home. Although category leader Frosty Paws owns more than 78 percent of all dollar sales, it’s hardly a household name, leaving the door wide open for brand owners and manufacturers looking for a new market for their products.

Table 4: Household Plastics

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Although this $184-million category includes both trash receptacles/waste baskets and household cleaning supply containers, it’s the latter whose 16.4 percent gain pushed dollar sales for the segment as a whole to $184.2 million, a 7.6 percent increase over the previous 52 weeks. Nobody likes to clean, so any product that makes the process a little easier is bound to take off. But a particularly strong performance by the category’s number-one brand, private label (+37.7 percent), underscores a growing trend among retailers to take control of categories with limited opportunities for differentiation.

Table 5: Ready-to-Drink Tea & Coffee

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Dollar sales in this $1.4-billion category surged 24.4 percent over the past year, due primarily to continued demand for foods and beverages that are convenient and deliver health or other benefits. The $1.2-billion canned and bottled tea subcategory posted the biggest increase – up 27.4 percent – thanks in part to the stellar performance of number-two player Lipton, whose flagship brand added more than 7 share points. Nestea also had a big year: Its two existing brands enjoyed triple-digit gains, while its new Enviga brand, billed as the category’s first calorie-burning green tea, racked up more than $23.4 million in sales.  The much smaller cappuccino/iced coffee segment was up 12.4 percent. Starbucks’ Frappuccino owns more than 70 percent of all category sales, but premium brands that are making their way into mainstream supermarkets are fueling growth and driving prices.