The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
Martin Hawkins, Executive Director, Sun Brand Technologies*
Credit crisis, slump, downturn – no matter what you call it, everyone is talking about it. As fears of a global recession grow, companies in all sectors are tightening their belts.
But in the beverage sector, it seems quite the opposite is happening. The purveyors of new product development (NPD) are planning to accelerate innovation to keep consumers spending, a survey by Sun Brand Technologies has found. Could it be that the credit crunch is actually helping to accelerate business in this competitive industry?
As the 21st century consumer becomes increasingly demanding, companies must create products that meet the requirements for health, convenience, a wider choice of flavours and the rise of ‘greener’ packaging.
As consumer awareness of health and well-being grows, brand owners are responding with ‘guilt-free’ options and ranges with a healthier twist. Diet Coke’s Plus range gives the low-calorie drink added vitamins and antioxidants, while Mars is rolling out a low-fat Galaxy drink aimed at women wanting to increase their calcium intake.
Not surprisingly, the children’s drinks market is making particularly big strides in the number of healthier choices available. Launched in April 2008, Ribena’s 100% Pure Juices range is the biggest development in the brand’s 70-year history.
Packaging is also key to success and must reflect the trends of the time. Juice in pouches, wine in boxes and coffee in cans show how the industry has responded to publicly driven trends. However, packaging that meets environmental requirements without compromising product quality is also essential.
But what's behind the strategy that so vehemently bucks the national trend? In tough times, even the top brands will cut back on costs in some areas, while at the same time developing other aspects of their business. For retailers, this means attracting new customers as well as keeping existing ones. A constant flow of innovation is essential to capture attention and retain custom.
Therefore, the pressure is on suppliers to rise to the challenge. Creativity, cost, speed-to-market and environmental issues are all important factors and only organisations that excel in these areas will succeed – and in these uncertain times, it's more important than ever to get it right.