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From outsourcing to supplier collaboration, food manufacturers are taking various different approaches to new product development (NPD)
In a retail climate where competition is cutthroat, loyalty is transient and supply agreements can be terminated before the ink has even dried, aggressive NPD is vital for survival.
How food manufacturers ensure they have a healthy supply of this metaphorical lifeblood pumping through their veins varies. At one end of the spectrum are companies that are ardent about carrying out all their recipe development work in-house, while at the other end are companies who entrust third party organisations with their entire NPD activity. Between these polar opposites are those firms who have their own in-house R&D departments but are not averse to picking the brains of academics, consultants, research institutes and ingredient suppliers occasionally.
Do it yourself
UK beverage manufacturer Radnor Hills is one manufacturer that takes the view that NPD is best carried out in-house.
“We try to do everything ourselves,” said company secretary, Penny Butler. “At the end of the day it’s our sales force that has to sell the product and our production people who have to manufacture it so they all need to believe in it. If we rely on someone else to create our products the enthusiasm isn’t there in the same way. With 52 staff we’re quite a small company - we don’t have huge budgets for each process so we work as a close-knit team.”
Radnor doesn’t have a dedicated NPD team, so it approaches NPD as a companywide effort. “People from sales, QA, senior management and production all put their heads together - it’s very organic,” said Ms Butler.
Inspiration comes from trade shows like SIAL, Anuga and Alimentaria, or from marketplace trends, and recipe development is carried out in-house. External assistance is only sought when dealing with unfamiliar or difficult flavours - then the flavour house assists with blending.
The IGW is a one-of-a-kind international exhibition for the food, agricultural, and horticultural industries. Established in 1926 it will take place for the 73 rd time in 2008. Producers from all over the world use the IGW to test-market food and luxury items and establish a brand image. Exhibitors often organize around national, regional, or product themes. Presentations feature fresh produce, fish, meats, and dairy products. These combine with a vast selection of international wine, beer, and spirits specialties, to satisfy every culinary palate. Right in line with consumer trends, the IGW also includes direct agricultural sales and the BIO MARKT organic products section.
The IGW also features commercial and non-commercial agricultural, forestry, and landscaping exhibits. Changing annual themes typically include such topics as renewable resources or scientific livestock breeding and production. These trade show elements are of particular interest to those involved in the developing markets of central and eastern Europe.
Packaging is the focus of extensive activity throughout the industry as food and drink manufacturers strive to reduce their impact on the environment
‘Sustainable’, ‘environmentally friendly’, and ‘energy efficient’ are key objectives in the industry today as consumer and retailer demand for such credentials increases. To this end, packaging has come under growing scrutiny and initiatives to reduce packaging and find alternative materials proliferate.
Retailers such as Walmart/Asda and Marks & Spencer have pledged a double-digit reduction of the packaging used for their own label products, while manufacturers in the UK such as Britvic, Cadbury Schweppes, Dairy Crest, Nestlé and Coca-Cola have signed a voluntary agreement to reduce packaging waste. Yet the issue is more complex than pure reduction.
“Often forgotten is the amount of food and other contents wasted. Here, smart packaging design (as opposed to ‘less’ packaging) can do a lot to ensure food quality, deliver the product in optimal quantity, and reduce the residual product that remains in the package once emptied,” said Pre-Stefan Gersbro, head of business development for the International Packaging Institute. He highlighted that in most cases, a residue of as little as 5% of product left in a pack results in a greater loss of energy due to product wastage than would be used to create the whole pack. “Optimising packaging, rather than minimising it, would contribute to less total waste over a product’s total life cycle,” he said.
Health and wellness is a key driver of activity for many at the top of this year’s Top 100 listing and together with activities in emerging markets represents a dynamic growth area for the industry in the future
Consumer health and nutrition; sustainability, CSR (corporate and social responsibility) & ethical trading; and developments in emerging markets have been the key issues for the industry during the past year. The leading players have also continued to consolidate and focus on their core activities while seeking new partnerships throughout the world in their bid to retain their top slots.
For the first time in the CIES – The Food Business Forum’s Top of Mind Survey, consumer health and nutrition took the top position in 2007, which reflects how this issue has become a long-term priority for leading retailers and manufacturers alike. Of all the respondents questioned in this year’s survey, over a third ranked it as their greatest concern for the future of the food sector. Critically, the health and nutrition debate is no longer just about obesity, but extends into product content and healthcare.
Reflecting this in its number one position, Nestlé has adopted a strategic focus on nutrition, health and wellness, which, according to Peter Brabeck, chairman and CEO, has provided the company with the impetus necessary to create further new growth platforms for the company in all product categories.
As waste legislation bites into the bottom line, companies are turning to technology to reduce their waste output and in some cases capitalise on the marketability of their production waste
Food and beverage manufacturers have never been under so much pressure to find environmentally sound ways of dealing with production waste, be that waste water, byproducts or goods that are unfit for sale because of inconsistencies, labelling errors or contamination.
“It’s due to changes in waste regulations,” explained Lesley Eaton, technology translator with Food Processing Faraday Partnership, a company that looks to improve food processing efficiency by giving UK food processors access to new technologies. “If you go back six or seven years, food waste was fed to pigs, but after the BSE and foot and mouth crises European legislation was changed to restrict disposal routes for food waste. In addition, both UK and EU landfill legislation is making it more difficult and more costly for manufacturers across Europe to deposit waste in landfill.”
Revealed at Fi Europe 2007
Maarssen, 7 November 2007 – The winners of the prestigious ‘Best Innovation in Food Ingredients 2007’ awards were announced last week at Fi Europe 2007 in London, UK. The awards, which honour the industry’s most innovative ingredients, leading-edge technology and prized research, have been running since 1994 and are one of the most eagerly anticipated fixtures in the food industry calendar.
Dutch firm EBI Food Safety fended off competition from eight other finalists to scoop the coveted Gold award for its Listex product, a commercial bacteriophage that eliminates the deadly food pathogens Listeria monocytogenes without affecting the other properties of the food. Listex is effective in a range of Listeria-susceptible products, such as hams, hot dogs, cheese, fish and many RTE (Ready To Eat) products.
“Listex is a true innovation; a new approach to an urgent and growing problem that affects both consumers and manufacturers,” said Henry Dixon, [non-voting] chairman of the judging committee, explaining the judges’ reasons for choosing EBI Food Safety as this year’s Gold trophy winner.
Operating the supply chain efficiently can make the difference between success and failure for food and drink products, and fulfilling on the ‘just in time’ needs of the retailer is increasing the pressure on manufacturers to perform
Ensuring the supply of top quality, safe product to retailers – just in time – is a challenge for every manufacturer, and the majority turn to third party logistics companies to handle this specialist area of the business for them.
Dr Oetker has entered into a three year contract with Wincanton for the management of its chilled national warehousing and distribution operations. The contract will involve the handling of more than 12 million cases of chilled convenience products per year and provide a flexible solution that is able to satisfy Dr Oetker’s reworking and repacking requirements.
“The added value rework services Wincanton offers demonstrated to us that it has formed intimate relationships with both retailers and manufacturers, which is crucial to delivering a total supply chain,” said Rachael Lorman, head of supply chain, Dr Oetker. “The fact that Wincanton is able to provide such a service will allow us to focus
on the manufacturing process.”
World Food Market 2007 opening up a whole new world of business opportunities
World Food Market 2006 was an unrivalled success with twice as many exhibitors than at its 2005 debut and a gross audience attendance up by an impressive 36% to almost 3,200 visitors. World Food Market 2006 proved that the UK is becoming a global hub for international cuisine.
World Food Market 2007 (WFM) returns to London ExCeL on November 21st and 22nd and covers the entire scope of ethnic and world speciality foods, from Oriental, Eastern European, African and Caribbean to Mediterranean and Middle Eastern foods. WFM - the UK's only trade fair with a dedicated focus on community foods - incorporates the Halal and Kosher exhibitions.
IBERWINE, 13th-15th November IFEMA-Madrid
• The most important event of the year for Latin
American wine will be held in Madrid in November
• IBERWINE’s philosophy is its international character. In
2008 it will be held in Miami
• For the very first time, the general public can visit the
fair and take part in the different activities that are
organised, thus enjoying the wine experience
A new concept
IBERWINE 2007 arrives with an international philosophy, and the aim of taking the wine culture to the general public. On 13th-15th November, pavilion 8 at Ifema will be a meeting point for professionals and wine
enthusiasts, who will come together at a fair covering 12,000 square metres, full of new ideas to help business along amongst professionals and to whet the senses of all the fair’s visitors.
WALK THE WORLD
IFE Foodapest is the region’s only international trade exhibition. With companies
from 16 countries represented in 2006 visitors will be drawn by an even greater international presence at IFE Foodapest 2007.
‘Walk The World’ will attract even more food, drink and hospitality buyers in 2007.
MEAT & POULTRY
Meat and poultry are a staple part of the diet across the whole Balkan region,
consumers love their protein!
This sector showcases what is available nationally and also brings new textures and flavours from overseas markets to local connoisseurs.
CHEESE & DAIRY
This new dedicated area with its vast array of products on display spanning
traditional cheeses, yoghurts, milkshakes, is a cheese and dairy buyers delight. As Hungary's second largest food sector (after meat), visitors can't get enough!