Developing Innovative Products

When you’re developing a new snack food, it’s best to start by getting to know your market. Most manufacturers agree that identifying a target demographic is best achieved by researching, talking and listening to consumers and suppliers. The Masterfoods Pods range was developed after extensive consumer research which showed a market opening for a bite-sized indulgent biscuit, explains brand manager Troy McKinna. “One opportunity that shone for us was in-home consumption—those people just sitting on the couch, watching TV, the informal family and friends gathering. People wanted a lighter treat they could eat on and on and not feel overindulged,”he says.

Sunbeam Foods senior brand manager Sally Burden agrees. She describes the company’s decision to produce a product in the dried fruit-and-nut market that was skewed towards adults. “We talked to different people about what was and wasn’t possible, researched a cross section of consumers about healthy snacking options, and provided a range of potential product combinations for discussion.Fruit-and-nut came up favorably.”

Suppliers can also offer a wealth of knowledge and may be able to help you set your boundaries to decide what is achievable for your business. Vitality Brands Worldwide is a protein-bar producer looking for something that stood out from the competition. Extensive research led the company to an ingredient supplier which provided a solution that was ultimately integral to the company’s success. Vitality Brands operations and quality director Wladimir Budnik explains how the company came across the vegetable extract used in the Freggie Nutri-Bar. “We were talking to an ingredient supplier who said he had a fantastic new product, but no one had taken up the challenge to use yet. When I looked at the technical aspects I wasquite impressed.”

Also don’t be afraid to broaden your perspective by looking to other industries for inspiration. Budnik says that an German engineer working on water desalination inspired the equipment designer to produce the fruit-and-vegetable extracts used in the FreggieNutri-Bars.

Consumer issues are also important considerations for developing a new food product, and in the current climate of health concerns,remember that snack-food design is being fundamentally altered.

Good design It goes without saying, that a snack food should be developed with convenience in mind, and taste should be high on the agenda. Buderim Ginger has been developing ginger products for the 40 yearsand- older/baby-boomer market, and consumer research identifi edthe need for a more health-conscious product.

According to Buderim Ginger retail marketing manager Mark Stanley, the design of the company’s uncrystallized ‘NakedGinger’ was affected by consumer-health issues.

“It’s in bite-sized format and packed in a take-anywhere bag to be eaten in the car or offi ce, so the product needed to be dry to touch; and having no sugar on the outside appeals far better to that target market.”

According to Sunbeam’s Burden, design considerations also infl uence sales. “We wanted to be fairly mainstream to be a reasonably highvolume turn-over product, so we briefed the agency for a design that would appeal to a wide cross-section. It was important to deliver our retailers with a high-volume range that would provide incremental sales to our existing snacking range, and we wanted to target an older market,” she says. Sunbeam Foods’ other products targeted children with cartoon characters on the packaging, so these were replaced with ‘fl ying nuts’ for the new range.

Ingredient creativity
Stick to what your company does best, and keep the process simple to achieve maximum success. For example, Masterfoods used their experience in chocolate and caramel processing, but invested in R&D to develop a unique wafer. “We were trying to get something that was quite light to eat, and also something that prolonged the eating experience,” McKenna reports. “The crunchy wafer was created after much testing andmodification.”

Sunbeam Foods tapped into their experience of dried fruit-and-nut ingredients, explains Burden. “We already knew most of the nuts and fruits we can procure, so it was a matter of our development team coming up with whole range of different options and testing them.” On the other hand, innovation is attractive, and enhanced andhealthy ingredients are all the rage.

Vitality Foods’ Budnik explains how the demand for fresh fruits and vegetables was capturing the company’s attention. “Australian consumers are eating as many as fi ve fruits and veggies per day, while Americans are encouraged to eat up to nine per day. We can take the goodness of berries, carrots, pumpkin and tomatoes and put them into a bar. Most people wouldn’t normally eat all theseingredients each day.”

Correct packaging
At the risk of stating the obvious, packaging needs to be shelfeffi cient in order to attract consumer attention. It also needs to be functional to maintain integrity and protect the product from contaminants. Vitality Brands chose a triple laminate with very low water- and oxygen-permeability for the Freggie bar; this signifi cantly increased the product’s retail price, but was vital to prevent degradation of the natural fruit-and-vegetable bioactives in the bar. Sunbeam’s Burden explains that the dried-fruit industry has traditionally used a window to reveal the product. This was introduced in response to waning consumer trust caused by lowquality imports. Whether the company’s daring removal of the window is successful will depend on consumer trust in the Sunbeambrand name.

Meanwhile, Masterfoods’ Pods packaging is designed for easy access to the product, and McKinna says the scored box, which opens to fi t a whole hand, has great shelf-appeal when the range is stacked sideby-side.

Retail readiness
Whether you plan to sell in big supermarket chains, pharmacies, or smaller health-food stores and convenience stores, price is still a big issue. The cost involved in producing a new snack food can be quite high, with ingredients costing up to $42 per kilogram. Consequently, Vitality Brands’ Budnik comments that it is hard to get a product thatwill make margins when a low recommended retail-price is set by big supermarkets.

“We’re selling to a broad spectrum, in as many outlets as we can, but it’s also important to get it in the big retailers just to drive the volume,” he explains.

According to Buderim Ginger’s Stanley, size really does matter. He explains that the 200-gram bag of ginger pieces was ideal for consumers wanting to taste the product for the fi rst time. “If you do a 500-gram pack, the price goes up and the trial diminishes,” he reports.

Export friendliness
The ideal product is one that will sell locally and internationally, and export considerations may be intrinsic to the development process or an afterthought. Either way, ‘Australianmade’ sells well, according to Vitality Brand’s Budnik, who says the local market—secure from many contaminants—is appealing to European, UK and US buyers. Another important consideration for export is a product’s durability. “All barriers must stand up to international trade and be resilient to transport, particularly when exporting in large quantities,” comments Buderim’s Stanley.

The Pods range is currently being exported to New Zealand, and Masterfood’s McKinna says both Australia and New Zeland are important test markets for the product. “If we can get long-term growth and sales and profi t from these markets, we will roll it out internationally,” he says.

International expos are a good way to get noticed and Vitality Brands have had several enquiries about Freggie bars, which were showcased at a European expo. “Overseas markets have the potential to drive the necessary scale to ensure the long-term success of a product,” states Budnik. He adds this is true especially in terms of researching joint ventures and contract manufacturing.

Marketing know-how
Smaller companies cannot compete with bigger manufacturers in advertising dollars, but they can opt for alternatives to television and radio. You don’t need the budget of Cadbury Schweppes or Nestle to get noticed, says Budnik. Posters, handouts, leafl ets, wobblers, and wellplaced newspaper and magazine ads are suffi cient; however, most manufacturers agree in-store sampling is the best way to be recognized.

When Masterfoods wanted to open a new market in the biscuit category, which traditionally targeted the older consumer, it was important to attract younger adults into the biscuit aisle. “There was a fair bit of consideration around how to tap into that in-store, and fl oor stickers and trolley ads workwell,” explains McKinna.

Mechanical efficiency
Whether you employ an existing machine, modify equipment or opt for a whole new system, research will be sure to make the choice simpler. Automation is the way of the future; and minimizing handling lowers production costs that can be a large fi nancial burden. Visiting local and international operations may demonstrate a means to greater effi ciency. For example, Masterfoods’ European pilot plant provided an opportunity to work through different designs. The company developed a patented Wakrone oven, which processes the wafer on a continuous process machine, where caramel and chocolate are deposited in each biscuit.

Consumer requirements
Health concerns are fundamentally altering the way foods are developed, manufactured and marketed; and the industry has shifted towards healthier formulations in recent years, with a greater focus on eating fresh fruits and vegetables.

Snack foods have never been more prominent, and they are becoming replacements for more nutritious foods—a move which is of great concern for members of The Parent’s Jury, an initiative of the Cancer Council and Diabetes Australia. Cancer Council nutritionist, and spokesperson for The Parents Jury, Kathy Chapman explains she would like to see manufacturers using more fresh fruits, vegetables and whole grains in their products. “My biggest concern with the snack-food industry is some of the misleading marketing practices and ingredient content. Snack foods are often marketed to children with a lot of promotions, it’s about making kids feel cool.”

Pre-portioned foods are popular and Chapman has expressed concern that many packaged foods contain more than a single serving—a fact that is often poorly indicated.

However, Chapman is impressed by some manufacturers’ move towards higher-fi ber products, but comments an overwhelming majority still tend to be high in sugar, energy and salt. “I think healthy foods can be made appealing; but I think the big barrier for parents is that all these foods—which should be regarded as treats and indulgences—are heavilypromoted, making it hard for the good-old piece of fruit and vegetable to get a look.”

Our thanks to our sister publicationFood Magazine for this article.

More Information:

Masterfoods
www.masterfoods.com.au

Sunbeam Foods
www.sunbeamfoods.com.au

Buderim Ginger
www.buderimginger.com

Vitality Brands
www.vitalitybrands.com

The Parents Jury
www.parentsjury.org.au