New Product Development: What you need to know

With the country trying to stay strong against a recession caused by falling energy prices, food and beverage entrepreneurs are heeding the call for innovation and diversification by investing in the development of new food products which can attract not only local sales but also interest from international markets.

Consequently, the Caribbean Industrial Research Institute (CARIRI) has been assisting such persons with product development technical support to ensure that they secure the best opportunity for success. Unfortunately, enough food and beverage entrepreneurs do not seek expert assistance when embarking on product development activities and are therefore at risk of becoming a part of product failure statistics. Research conducted in the USA by Linton Matysiak & Wilkes (1995) showed the following:

• Approximately 5,000 new products are introduced into a supermarket annually

• The failure rate for new product introduction in the retail grocery industry is 70-80%

It is therefore prudent that food and beverage stakeholders, who wish to develop new products, understand the key activities in new product development. In addition to this, product development must be an economical process and the return on investment must be computed as your product is not just going on the supermarket shelves, but it is also competing with similar products that are already housed there. Some of the things to keep in mind are listed below:

1. Define the Product - be absolutely clear about the type of product you wish to develop. Gather information on the options regarding sensory characteristics, legal regulations, consumer preferences, competing or similar products, raw materials availability, equipment availability and technical support availability.

2. Develop the Product Formulation and Process Description - If you are unable to conduct these activities on your own, contract expert help in developing the product formulation and processing description. This will ensure that you not only develop an appetizing product but you also create an economically feasible product, conform to product and ingredient regulations and develop an efficient production process. Note that the production process has to be tested for both bench-top/laboratory scale level and bulk production level since product and processing parameters may change when the production volume of the product increases thereby requiring formulation or process control adjustments.

3. Conduct Sensory Evaluations – The Food and Agriculture Organization (FAO) defines a quality product as one that meets the expectations of the consumer. Therefore, sensory testing of the product, using scientific sensory evaluation techniques, is very important since these tests will provide insight into consumer acceptance of the product. It is not enough for the food entrepreneur to ‘like’ the product, since it is the consumer who determines that the product is one of quality.

4. Conduct Chemical and Microbiological Evaluations – markets generally have specifications for food products that must be met in order for the food item to be sold publicly. It is therefore critical that all legal specifications are met by the newly developed food item.

5. Finalize Product Packaging and Labeling – again markets are likely to have packaging and labeling regulations that the new product must meet. Additionally, during this phase of product development, the expert should ensure that the selected packaging and label are able to maintain the integrity of the product, stand up to transportation variations, remain stable during storage and be visually appealing to consumers.

6. Prepare for Market Distribution – ensure that the following activities are performed in anticipation of the product’s introduction to the market:

a. Obtain all relevant permits

and approvals

b. Confirm product distributors

and distribution strategy

c. Confirm marketing strategy

Product development can take weeks, months or even years to complete – it is not something to be hurried. The time needed will depend upon the complexity of the food item and the resources available to perform the activities required. Having an understanding of the actions involved is a good first step.

For more information on the services offered on product development, please contact our Biotechnology Unit at 299-0210 ext 5053 or email us biotech@cariri.