Food Product Introductions Continue To Set Records
Steve Martinez
A record 20,031 food and beverage products
were introduced in 2006, according to Datamonitor,
a leading international supplier of information
on new packaged products. Food categories with the
largest share of new products included candy, gum,
and snacks (28 percent), beverages (26 percent),
condiments (9 percent), and dairy (7 percent). Ten
years ago, beverages accounted for 19 percent of
new food and beverage products, and condiments made
up 18 percent.
Datamonitor typically classifies
over 90 percent of new food and beverage product
introductions as “not innovative.” Instead,
these products may involve variations of existing
products, such as new flavors, package sizes, or
brand names. This practice suggests that food firms
use new-product introductions as a differentiation
strategy to present a fresh image to consumers,
rather than providing truly novel products. In addition,
failure rates for new products are exceptionally
high, exceeding 90 percent for some categories.
From 2003 to 2006, “upscale”
was the leading new product tag or claim, accounting
for 9-13 percent of all new product claims, or 2,665
products in 2006. Datamonitor defines “upscale”
as products such as premium ice cream, uniquely
processed coffee, gourmet jam and dessert topping,
and Certified Angus Beef. As incomes rise and consumers
continually seek new experiences and tastes, the
market for novel, luxury products grows.
“Natural” and “single
serving” were the next two most common claims
in 2006. “Organic,” “quick,”
“fresh,” “low or no fat,”
“no preservatives,” “kids,”
and “high-vitamin” made up the remainder
of the top 10 claims in 2006.
Cobranding has become an increasingly
popular strategy for differentiating food products.
Food processors typically pay a fee or royalty to
place the logo of a popular food ingredient, container
type, or media character—especially those
that appeal to children—on a brand-name package.
The logos represent a strong image that consumers
easily recognize. In 2006, 279 cobranded products
were introduced, compared with 16 in 1995. Recent
examples include Breyers ice cream containing Splenda®
brand sweetener and carrying Splenda’s logo,
Hillshire Farm deli products packaged in Glad Ware®
containers, and SpongeBob SquarePants™ characters
on packages of Kraft Macaroni and Cheese.
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