IRI: CPG Costs Changed Consumer Shopping Habits in 2007

CHICAGO — Elevated input prices and energy costs drove CPG prices an average of 4.2% in 2007, with double-digit increases experienced by some categories, according to Information Resources Inc.’s “2007 CPG Year in Review.” Shoppers turned to supercenters — which advanced their overall household penetration by 3.5 points last year—as a result. They also more readily reached for private label products. “The economy definitely had its say in CPG during 2007,” said Thom Blischok, president of retail solutions for IRI, in a statement. “With the acceleration of prices across the board, consumers responded by refocusing on supercenters and seeking out lower-cost private label alternatives to name brand items. While at the same time, product innovation in several CPG categories played a healthy role in spurring growth that we predict will be a key factor in 2008.” IRI forecasts that the healthy food trend will continue to thrive, sustainability will grow as a differentiator and products touting unique flavors, ingredients, and aromas, will incite trial.

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