U.S. Consumer-Packaged-Goods Winners Identified in New Ranking

U.S. Consumer-Packaged-Goods Winners Identified in New Ranking 
Study by The Boston Consulting Group and Information Resources, Inc.
(IRI) Shows That Price Increases and Distribution Gains Drive
Performance of Large Consumer-Packaged-Goods Leaders, While Share
Gains Propel Small and Midsize Stars; Study Is the First of Its Kind
for CPG Companies and the Result of a New Collaboration Between BCG
and IRI to Assess and Report on Ongoing Trends Shaping the Industry 
CHICAGO, IL -- (Marketwired) -- 04/22/13 --  A new study by The
Boston Consulting Group (BCG) and Information Resources, Inc. (IRI)
has identified the top-performing companies in the U.S.
consumer-packaged-goods industry. It is the first study to compare
both public and private CPG companies using a combination of three
metrics -- dollar sales growth, volume sales growth and market share
gains -- based on comprehensive retail- and consumer-market tracking
BCG and IRI analyzed the 2012 performance of more than 400 CPG
manufacturers with annual U.S. revenues of at least $100 million.
Recognizing that players in different size categories face different
opportunities and challenges, the research team generated three
distinct top-ten lists of winning companies: small ($100 million to
$1 billion in retail sales), midsize ($1 billion to $5 billion in
retail sales), and large (more than $5 billion in retail sales).  
Among large companies, the top three performers -- ranked on a
combination of dollar sales growth, volume sales growth, and market
share growth -- were Lorillard, the Hershey Company, and
Anheuser-Busch InBev. The top-performing midsize companies were Green
Mountain Coffee Roasters, Inc., Chobani, and Starbucks. And the
top-ranked small companies were TalkingRain, Idahoan, and Handi-foil. 
The analysis is the first result of a new collaboration between BCG
and IRI to assess and report on ongoing trends shaping today's CPG
"Our research with IRI shows that there is no single formula for
success in the CPG industry," said BCG's Jeff Gell, a Chicago-based
senior partner. "Companies are winning in various ways -- through
superior execution of their base businesses, innovation, and better
management of price-volume tradeoffs. We are excited about working
with IRI to bring distinctive analyses and compelling insights to the
The findings reveal that most winning companies are successfully
growing their base businesses through gains in distribution. Pricing,
however, is a key source of dollar sales growth for many of the
large-company leaders, with growth in dollar sales outpacing volume
sales growth. In contrast, growth in volume sales is a key source of
dollar sales gains for small and midsize stars, suggesting that a
more sustainable rise in consumer demand is powering performance.  
These drivers of growth underscore a significant trend in the CPG
industry: small and midsize companies are increasingly taking market
share from large competitors. All top ten small and midsize companies
gained market share in 2012, with eight of the small-company winners
grabbing at least 1.0 percentage points. Since 2009, large companies
as a group have ceded 1.4 percentage points in market share, a drop
that amounts to more than $10 billion in lost sales.  
"From this joint research, we've uncovered that small and midsize
manufacturers' growth at the expense of large manufacturers is
significant," said Dr. Krishnakumar (KK) Davey, managing director at
IRI Consulting. "Small and midsize manufacturers are in a unique
position to strengthen relationships with their retail customers as
they drive growth in many categories. They are expected to garner
greater attention from retailers through increased shelf space and
merchandising activity." 
"We believe that our collaboration with BCG will continue to deliver
great insight and, most importantly, foresight for our clients and
the industry at large," Davey added. 
Other findings from the research:  

--  Among large-company winners, only three are growing from both their
    base businesses and innovation. Steps such as launching innovations
    that are incremental and do not detract from the existing portfolio
    can help balance growth from both parts of the business.
--  Small- and midsize-company winners are generally concentrating on a
    few product categories in which they have a competitive advantage and
    experience strong consumer demand. They are also driving trends in the
    marketplace and developing first-mover advantage.
--  Small and midsize companies are gaining significant share from larger
    players, suggesting that there are advantages to focused portfolios
    and small-company agility. There is an opportunity for larger
    companies to drive growth through more effective portfolio-mix
    management -- by expanding into categories with high growth potential
    (through acquisition or new product development) or by reevaluating
    existing categories to prioritize focus where opportunity is

To request a copy of the study, "The BCG-IRI Momentum Report," or to
arrange an interview with one of the authors, please contact
Alexandra Corriveau at +1 212 446 3261 or
corriveau.alexandra@bcg.com, or John McIndoe at +1 312 474 3862 or
About The Boston Consulting Group
 The Boston Consulting Group (BCG)
is a global management consulting firm and the world's leading
advisor on business strategy. We partner with clients from the
private, public, and not-for-profit sectors in all regions to
identify their highest-value opportunities, address their most
critical challenges, and transform their enterprises. Our customized
approach combines deep insight into the dynamics of companies and
markets with close collaboration at all levels of the client
organization. This ensures that our clients achieve sustainable
competitive advantage, build more capable organizations, and secure
lasting results. Founded in 1963, BCG is a private company with 78
offices in 43 countries. For more information, please visit bcg.com. 
About IRI
 IRI is a leader in delivering powerful market and shopper
information, predictive analysis and the foresight that leads to
action. We go beyond the data to ignite extraordinary growth for our
clients in the CPG, retail and over-the-counter healthcare industries
by pinpointing what matters and illuminating how it can impact their
businesses across sales and marketing. Move your business forward at
The Boston Consulting Group
Alexandra Corriveau
Media Relations Manager
Tel +1 212 446 3261
Fax +1 617 850 3701
John McIndoe
SVP, Marketing
Tel +1 312 474 3862
Fax +1 312 474 3420
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