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News Desk

News Desk

11 December 2024

Managing short product lifecycles: Adapting to demand in a rapidly evolving market

Managing short product lifecycles: Adapting to demand in a rapidly evolving market

The food and beverage industry is no stranger to the intense pressures of short product lifecycles, but the festive season amplifies these challenges to a whole new level.


As a period of both extraordinary opportunity and heightened risk, it demands more from manufacturers than any other time of year. Consumers eagerly seek novelty, nostalgia and indulgence, fuelling the demand for limited-edition products, themed packaging and seasonal launches.


To succeed, brands must navigate compressed timelines, manage agile supply chains and forecast demand with precision – all while maintaining sustainability and avoiding costly overproduction.


Why the holidays amplify lifecycle challenges


The holidays bring a unique set of challenges. Consumer expectations for exclusive and seasonal items are higher, but the timeframe to capitalise is short. Research indicates that nearly half of all holiday-themed products see peak demand between mid-November and Christmas, leaving little room for error.


For example, Starbucks’ annual holiday drinks, such as the Peppermint Mocha or Gingerbread Latte, create a buzz that drives significant footfall. However, managing the supply of specialised ingredients like flavoured syrups requires careful forecasting to avoid shortages – or worse, post-season waste.


Similarly, Cadbury’s advent calendars and festive chocolates illustrate the balance needed between seasonal demand and managing leftover stock, as these items lose relevance by New Year’s Day.


Identifying pressure points


Compressed timelines: Holiday products often have less than eight weeks to generate their sales, requiring manufacturers to balance production efficiency with rapid responsiveness.


Unpredictable trends: Consumer tastes can shift rapidly during the festive season. In recent years, the rise of plant-based and low-sugar treats has intersected with traditional indulgence, creating a complex mix of demands for manufacturers.


Logistical bottlenecks: Increased transportation demand during the holidays makes it harder to distribute seasonal products promptly. Delays can mean missing the critical sales window.


Strategies for festive lifecycle success


1. Forecasting with precision


AI-driven planning tools are becoming indispensable during the festive period. Coca-Cola has utilised predictive analytics to optimise production for its limited-edition Christmas cans, minimising surplus while meeting demand spikes. Brands like Ferrero, known for its iconic golden-wrapped chocolates, have embraced detailed consumer insights to determine which SKUs to prioritise for festive campaigns.


2. Creating flexible production capabilities


Holiday launches often require smaller production runs with quick turnaround times. Nestlé’s manufacturing overhaul, which incorporates modular production lines, has enabled it to switch rapidly between seasonal favourites like Quality Street and everyday products. This agility is essential for tackling the ebb and flow of holiday demand.


3. Reducing festive waste


To counteract the environmental concerns of short cycles, brands are adopting more sustainable practices. Tesco, for example, has partnered with food waste organisations to redistribute unsold holiday items. Meanwhile, Waitrose has experimented with zero-waste packaging for its seasonal ranges, helping mitigate the environmental impact of products with short shelf lives.


4. Thinking outside the box: launching unique items


In a crowded festive market, the most successful brands often differentiate themselves by introducing bold, unique products. Pringles has released holiday-themed flavours such as 'Pigs in Blankets' and 'Roast Turkey,' sparking conversations and driving trial purchases. Pasta brand Barilla launched new limited-edition pasta shape, Barilla Snowfall, ahead of the holiday season. And Kavli’s squeezy cheese brand Primula introduced a new seasonal flavour – Primula Pigs in Blankets.


Lessons from successful holiday campaigns


The festive season often sees brands launching innovative collaborations to stand out. In 2021, Heinz released a novelty limited-edition 'Christmas Dinner in a Can,' which sold out within hours online. While highly seasonal, the campaign demonstrated the power of novelty to drive buzz and sales.


In contrast, McVitie’s balanced nostalgia with innovation by introducing holiday versions of classic biscuits, such as Jaffa Cakes with festive flavours. This approach appealed to both traditionalists and novelty seekers, ensuring relevance across diverse customer segments.


Navigating the post-festive slump


One of the most significant challenges for manufacturers is managing the aftermath of the festive season. Unsold stock, excess packaging, and waning demand can lead to losses if not carefully planned. Circular solutions, such as repurposing ingredients into new product lines, can help extend the lifecycle of holiday-specific goods.


The future of festive product cycles


As consumer expectations evolve, the pressure to innovate and deliver during the holidays will only intensify. Manufacturers must balance the excitement of short lifecycles with the need for sustainability and operational efficiency. Investing in digital tools, flexible production and waste mitigation strategies will ensure they can seize the opportunities the festive period brings without falling into its pitfalls.


For food and beverage manufacturers, the festive season is no longer just a time to meet demand – it’s an opportunity to showcase creativity, build brand loyalty, and demonstrate commitment to sustainability in the face of unique challenges.


 

FoodBev's top ten favourite seasonal product launches


Beavertown's mojito lager

K-based craft beer brand Beavertown Brewery has introduced the country's first mojito lager – named Spicy Boi – as part of its festive range.


This brew, along with the return of the brewery's Frozen Neck glitter beer, aims to capture the spirit of the holiday season while appealing to a growing trend for unique flavour profiles in the beverage market.


Read more here.


 
The Gym Kitchen debuts high-protein festive sandwich

UK brand The Gym Kitchen introduced its first high-protein Christmas Sandwich, launching in Tesco stores as part of the retailer’s meal deal range.


The brand’s new seasonal offering aims to add a nutritious twist to the festive favourite sandwich. It features chicken breast, Beechwood smoked bacon, cranberry and traditional stuffing, sandwiched between slices of wholemeal bread.


Read more here.


 
Sauce Shop festive condiments

British craft condiment brand Sauce Shop has launched two limited-edition sauces in time for the festive season.


The new flavours, Brussels Sprout Kimchi Hot Sauce and Spiced Cranberry Hot Honey, were launched in an exclusive partnership with retailer Aldi.


Read more here.


 
Barilla Snowfall pasta

Pasta brand Barilla has announced the US launch of a new limited-edition pasta shape, Barilla Snowfall, ahead of the holiday season.


Barilla’s festive pasta aims to help home chefs ‘capture the essence’ of the season, reimagining the brand’s classic pasta shapes.


Read more here.


 
Flipz holiday pretzels

US snack brand Flipz has introduced two new limited-edition pretzel flavours: Snickerdoodle and Peppermint Hot Cocoa, designed to tap into the increasing consumer demand for innovative snack options that combine sweet and salty flavours.


The new offerings, available at select retailers including Stop & Shop, Albertsons, CVS and Dollar Tree, aim to capture the nostalgic flavours associated with holiday traditions.


Read more here.


 
Primula Pigs in Blankets squeezy cheese

Kavli’s squeezy cheese brand Primula is introducing a new limited-edition seasonal flavour – Primula Pigs in Blankets.


The new product combines the classic flavour of pigs in blankets with Primula’s creamy cheese, and is part of the brand’s efforts to entice new shoppers with unique flavour combinations.


Read more here.


 
Swiss Miss and Hotel Tango's cocoa-infused bourbon

Swiss Miss, a brand under Conagra Brands, has teamed up with Hotel Tango Distillery to unveil Swiss Miss 'Shmallow, a cocoa-infused toasted marshmallow bourbon.


This collaboration marks a novel entry into the flavoured whiskey market, catering to consumers seeking unique seasonal beverages.


Read more here.


 
Red Bull Winter Edition

Red Bull is set to expand its seasonal offerings in the energy drink market with the launch of its second Winter Edition flavour, Iced Vanilla Berry.


The new product, designed to appeal to consumers seeking innovative taste experiences during the cooler months, will begin rolling out in mid-September, with full availability in stores by 1 October.


Read more here.


 
McCormick finishing sugars

McCormick & Company has launched six limited-edition Holiday Finishing Sugars, designed to cater to the growing consumer interest in festive baking and beverage preparation during the holiday season.


Set to hit grocery shelves nationwide this October, these speciality sugars aim to provide both flavour and decorative appeal for seasonal culinary creations.


The new product line includes six flavours: Candy Cane, English Toffee, Salted Caramel, Hot Cocoa, Gingerbread Spice and White Frosting.


Read more here.


 
Polar Ice cinnamon sugar vodka

Polar Ice Vodka has partnered with Canadian pastry specialist BeaverTails to launch a new cinnamon sugar-flavoured vodka product.


The limited-edition seasonal offering combines Polar Ice Vodka’s smooth finish with the warm, sweet and spiced flavour of BeaverTails’ classic cinnamon sugar pastry. It can be served as a shot, mixed with cola or added to an espresso martini cocktail to provide a festive twist.


Read more here.

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