Top Editors ... New food products from around the world

Title: New food products from around the world
Date: 02/07/2007
Autor: By David Jago

Health & wellness coupled with convenience and novel flavours underpinned new product launches last year, with beverages in particular enjoying the greatest launch activity

The number of worldwide introductions of food and drink products grew by nearly 20% in 2006, to reach just over 105,000. This represents almost 300 new food and drink
products every day, or 12 launches an hour, every hour, somewhere in the world.

Europe as a region still accounts for the highest number of launches, nearly 40% of the total, although the region saw the lowest rate of growth in 2006, with introductions up by just 14% compared to the previous year.
Asia Pacific saw the greatest increase in new product launches, up by about 30%, and forcing North America into third position by accounting for a quarter of all introductions worldwide.
Beverages of various kinds made up about 16% of all introductions last year, representing the largest single category for new product development (NPD) activity, which reflects the extremely diverse nature of the market.
The other most active categories were those driven mainly by impulse purchase and indulgence, namely bakery, confectionery, and snacks, with dairy and sauces also continuing to see high numbers of new products being introduced.

Where is all the effort on NPD directed?
Given the importance of health and wellness as a key driver for NPD, it is not surprising
that some of the areas that have shown the strongest increases in new product activity are those that tend towards ‘better-for-you’ positioning in one way or another. Introductions of waters, for example, were up 38% globally in 2006, with strong growth being witnessed especially in Asia Pacific and North America, often in waters promoting fortification for health benefits.
Introductions of fruit snacks grew by an astonishing 61%, with double the number of launches appearing in Europe versus the previous year. New fruit snacks include many adult-oriented ‘superfood’ snacks, like Sun-Dried Goji Berries from Linwood in the UK. These are claimed to be one of the most nutritionally dense foods on earth, with 21
trace minerals, 19 amino acids, and vitamins B1, B2, B6 and E. Products for children’s lunchboxes are also important for the fruit snacks category. One of the latest introductions in the USA is Kellogg’s Lego Fun Snacks, fruit snacks that deliver 100% of the RDA of vitamin C, and are shaped just like Lego building blocks.
Convenience food categories saw significant growth in new product numbers. Introductions of cooking sauces were up 23%, but there is evidence that consumers are opting to cook at home from prepared or part-prepared products. Introductions of seasonings, for example, grew by 48% in 2006. All snack categories saw growth, but
especially nuts and meat snacks.

In the dairy category, launches of spoonable yoghurt grew by just 2%, compared with highly convenient and healthorientated drinking yoghurts and cultured dairy drinks, which enjoyed an 18% increase in new product activity. Much of that growth was in Asian markets and in the relatively underdeveloped US market, while launches in the highly competitive European market remained at the same level as the previous year. In the USA, Danone is just beginning to make an impact in the probiotic dairy drinks market with its DanActive brand (Actimel elsewhere), which is sold nationally in multipacks of 100ml bottles in several flavours. It is promoted as being clinically proven to help strengthen the body’s defences and features a large ‘Immunity’ flash on the pack.
Many categories featured developments based on novelty of flavour, with the majority of introductions representing range extensions and new flavours rather than new brands. Flavoured milks saw a massive 36% increase in NPD globally, for example, with the number of introductions up in allmregions.
One particular flavour that is likely to become increasingly interesting in the coming months is açaí.
This fruit is often described as a Brazilian rainforest superberry, being very high in antioxidants, and represents the perfect fusion of natural functionality and exotic provenance. It has recently started to appear outside Latin America, especially in beverages with health positioning, and often in combination with other fruits. Sparky’s line of Super Juices in the UK, for example, includes a variety with açaí that is marketed as naturally antioxidant-rich; in the USA, Caffe Classico has introduced Belizza brand sorbet with açaí & banana, described as ‘the healthiest pleasure in the universe’.

Natural is the norm
In many countries it is now accepted almost as the norm to see packages flashed with the words ‘additive-free’, yet we continue to see increasing numbers of new products that use that claim as a selling point. In 2006, the number of food and drink introductions labelled as having no additives virtually doubled, in line with an increased
consumer focus on ‘more natural’ formulations, fresher foods, and less processed foods. Products labelled as ‘all natural’ grew, and although North America leads in this area, Europe and Asia also saw faster growth. However, as with many other issues around labelling, ‘all natural’ has proven to be controversial. For example, Cadbury Schweppes introduced in the USA a ‘100% natural’ reformulation of its 7UP carbonated soft drink, but the product ran into criticism over its use of high fructose corn syrup.
The organic food market has slowed to some extent in much of Europe, but high levels of activity in North America contributed towards an overall growth in organic introductions of 36%. Particularly of note have been organic launches from major players in the USA. Kellogg’s, for example, has introduced organic versions of its mainstream cereal brands including Raisin Bran and Rice Krispies, while Kraft has launched organic macaroni & cheese dinner, salad dressings, and DiGiorno brand frozen pizza.
It is worth noting that many major food suppliers introduced organic versions of their brands in Europe a few years ago, when the organic market really began to take off. Many of those products have since been withdrawn, however, and it remains to be seen whether mass consumer brands in the USA can build a significant customer base for organics through supermarket distribution.

Shifts in healthy eating
Low fat remains the most common of health-related claims on new food products, yet still accounts for only 7% of all food and drink introductions globally. Low fat claims grew by about 20% in 2006, following a slight dip the previous year. The number of products with low sugar or sugar-free claims saw a big increase in 2006 (up by 25%),
significantly higher than low calorie as more companies shift their focus away from calorie counting on to sugar removal.
Claims related to low or no trans-fats continued to grow in 2006, but this remains largely a North American issue – the region still accounts for 80% of all introductions flagged as having low or no trans-fats. Low carb is officially a thing of the past, with just 500 introductions globally in 2006, less than half the level reached in 2005.
Gluten-free and other ‘free from’ foods saw significant activity in 2006, with strong progress being made in North America, Europe and Latin America. Companies both large and small, specialist and mainstream, are increasingly offering ‘free from’ options for consumers who suffer from food allergies or intolerances, or who simply prefer to
avoid certain foodstuffs for lifestyle reasons.
Food products low in or free from allergens are now moving into mainstream retail outlets and, interestingly, the positioning of such products is often focused on wellness rather than clinical recommendation or necessity. Spanish company Gallo, for example, markets gluten-free pasta alongside its regular range; and many lactose-free milks are promoted as being ‘suitable for the whole family’ as well as ‘easier to digest’.

Mental function
Fortified and functional foods remained strong in 2006 in most regions of the world and in diverse categories. One sector that has really made an impact is foods linked to enhanced mental function, often through the incorporation of omega 3 or specifically the DHA component of it. Introductions in many countries and categories made 2006
arguably the year of omega 3, and there is little evidence that the trend is slowing down in 2007.
In Canada, the Tropicana Essentials juices range from PepsiCo has been extended with a variant containing omega 3, said to support the normal development of the brain, eyes and nervous system. One of the highest profile launches was from Unilever, which has used its leading margarine brands (Rama, Blue Band, Flora, etc.) to launch Idee. This spread contains DHA, ALA and B vitamins to aid mental development, a positioning that is reinforced in the product’s graphics featuring a boy with ‘thought bubbles’ coming from his head. Indeed, the majority of DHA or omega 3-enriched foods is targeted at children, or to families with young children.
Foods for enhanced mental function do appear with other active ingredients, however. In Japan, Circle K Sunkus introduced Brain Buns, bite size bread pieces baked with a blend of wheat flour rich in vitamin B1, and Sunkist powdered lemonade drink was relaunched in the Philippines with choline, billed as ‘the brain vitamin’, as well as eight other vitamins and minerals.

Functional foods
With obesity being a major news story everywhere in 2006, there has also been growth in functional food and beverages that address active weight management. The majority of developments have used beverages as the carrier for functional ingredients as they bring convenience and allow for multiple usage occasions. One of the most important launches in this area is Enviga, the sparkling drink with green tea extract (EGCG), which is the result of a joint venture between Coca-Cola and Nestlé. The product has gone on sale in the USA and is scheduled for a European launch in 2007. Enviga is claimed to burn calories in the body by invigorating the metabolism, a claim that has already run into some controversy. (See News, FBI Feb 07).
Also in the USA, Kellogg’s has recently launched K2O Protein Water, a water-based beverage with whey protein, designed to help consumers lose weight while also keeping fit. In Asia, diverse ingredients appear in weight management products, including mushroom extract, designed to prevent fat absorption, Oacac’s Choco Lady chocolate; and ‘fat burning’ L-carnitine (more commonly seen in dietary supplements) in Kirin’s Post Water beverage, which also contains high levels of dietary fibre. Both products are from Japan.
Fair Trade pushes further mainstream Launches of products with an ethical positioning of some kind grew significantly in 2006, up 92% on the previous year. Fair Trade accounted for much of that, with products appearing in more countries globally than in the past, and in more diverse product categories including juices, snacks and baked goods.
Sustainability is a major consumer issue in terms of food and drink products, but also in the area of packaging. Having been a topic of discussion for some time, PLA (polylactide) has finally made an appearance in commercially available, everyday packs, in a way that is openly communicated to the consumer. Biota water in the USA, Belu water in the UK, and some juice drinks (e.g. Innocent) are now sold in bottles made from PLA, which is positioned as a compostable material derived from a renewable source, corn starch. Belu additionally donates its proceeds to fund clean water projects in the Third World, and uses only local water to reduce ‘food miles’. Newman’s Own, a company long associated with an ethical standpoint, also uses PLA clamshell packaging for its salad leaves in North America.
Packaging reduction, such as the lightweighting of glass, is another approach being taken by some companies. Nature’s Path in Australia uses a package for its breakfast cereal that is clearly described as having the same net weight but 10% less box, and features the Global Sustainability logo. Refill packs have seen some growth in non-food
markets and may offer potential in food and beverages in the future, e.g. with simple refills of coffee that can go into a jar or more permanent package. Sustainability is an extremely complex issue and it will be a long time before consumers are ready to understand the merits of recycling versus composting etc, but their growing interest in environmental issues should point companies towards taking simple, well-communicated steps that help consumers to 'do their bit' for the environment.

Simplicity for the consumar
Recent developments in packaging and in convenience foods in general seem to suggest a conflict between very simple packaging on the one hand, and complex technological packaging on the other. But the ultimate goal is always about simplicity for the consumer.
A perfect example of simple package functionality that marries with offering convenience is Unilever's Wishbone Salad Spritzers. Launched in the USA, these are liquid, ready-to-use salad dressings packaged in a 200ml bottle with a pump spray dispenser. Each spray delivers one calorie's worth of dressing, making this ideal for the target market of health-conscious women. The presentation is convenient but not 'over-engineered', and uses a package that is familiar and intuitive.
Elsewhere, technological features are beginning to appear in retail packaging that deliver simple convenience to the consumer. Diamond Fruit in the USA has introduced its pears in a Ripe Sense package that indicates the fruit's level of ripeness, in order that it can be enjoyed at its best. An indicator on the label changes colour to show whether the fruit is crisp or firm or juicy. Monoprix, the French retailer, is using a Fresh Check indicator on its sliced meats packaging that indicates when the product is getting old and warns if the chilled distribution has been disrupted at any stage.
In the UK, Marks & Spencer is labelling some of its chilled prepared meals with a SmartCode - a printed device similar to a barcode that is read by a Smart Oven (Samsung), which then knows how to cook the product to perfection without the consumer having to worry about timings and settings. Technologies such as these are not brand new, but it has taken some time for them to reach the mainstream and begin to impact consumers' lives.
For many years it has been fair to say that older consumers have been ignored, at least in western markets, when it comes to food and beverage packaging. Despite ageing populations in just about every developed country, suppliers have been deterred i from developing packaging for seniors, simply because it is so difficult to target them: typically, older consumers don't want to be reminded that they are old or have special needs. That is perhaps beginning to change, with a couple of recent developments of note in the USA.
Kraft Foods has introduced its Maxwell House instant coffee in a jar with an EZ Grip lid, comprising a soft (elastomeric) surround that makes it easier to hold and turn. The jar is prominently labelled 'easy to open, closes tight for freshness', an inclusive claim that doesn't draw undue attention to the fact that it is designed for the needs of older consumers. Nevertheless, the package is endorsed by the Arthritis Foundation. Procter & Gamble, for its Folgers ground coffee, is using an easy-grip plastic canister with a foil seal. Again the product is endorsed by the American Arthritis Foundation, but it uses a subtle approach in that the endorsement is not obvious until the easy-open outer cap has been removed.

David Jago is editorial director of Mintel International Group, which produces a Global New Products Database. For more Information call +44 (0) 20 7606 4533