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Updated on 06/06/2003
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WELCOME    HEADLINE NEWS 20 May 2003
Research shows that  90 percent of new products launched in  supermarkets do not survive more than two years. The cost of failure runs into billions.

We believe we can show you some ways to improve your success rate, so subscribe now. It's free for 12 issues.

Anyone who develops new products for a living must be aware of a multitude of influences. Acknowledging this, we cover

scientific discoveries

consumer trends

product design and formulation

engineering technology

process engineering

manufacturing

filling and packaging

logistics and distribution

retail merchandising

end of life disposal

Then there are the legal and regulatory issues, such as safety and labelling, as well as intellectual property rights, brand management, competition and international trade that we have to take into account.

But it all means nothing without the creativity and insights of men and women who can put things together in new ways to create new products that improve our lives.

We celebrate those people.

Ian Grant

Publisher

Pushing water uphill
Snack attack depends on taste
Holland & Barrett to get Ahold’s De Tuinen chain
ConAgra sells Bumble Bee Seafoods to managers
Stop eating and start sweating
Brain food?
US kicks tobacco habit
UK government may ignore public on GM
Local is lovely
People

NPD/Innovation

Pushing water uphill

Reports that consumers return to old favourites once their curiosity is satisfied suggest that soft drink makers face a tough job creating new brand leaders.

Vanilla Coke and Mountain Dew Code Red, the industry's biggest new products of recent times, have seen their sales slide after brilliant debuts. Industry journal Beverage Digest reports that sales of Mountain Dew Code Red are off 40% for the first quarter of 2003, and that Vanilla Coke’s share of the supermarkets and convenience stores channels is down by 30%.

The truth seems to be that consumers have gone off carbonated soft drinks in the long term, preferring still drinks and waters. CSD makers also face rising resistance to their sugary fluids in schools and other markets as a result of the obesity issue.

Most big new launches have been brand extensions. But this appears only to have slowed the decline in CSDs, not reversed it. "For years, there has been little change in which carbonated brands comprise the top 10," said John Sicher, editor and publisher of Beverage Digest. "The creation of new mega-brands, or even big brands, with staying power has been a huge challenge."

As a result, CSD makers are spraying the market with new brands, tastes, packaging and features. And praying.

Snack attack depends on taste

Even health-oriented consumers are more likely to purchase a snack high in fat if they think it tastes good, according to a study by US marketing academics.

The study, published in the winter issue of Journal of the Academy of Marketing Science, focused on consumer perceptions of low-fat variations of existing snack products. The researchers examined the joint effects on consumers of three factors: brand familiarity, retail shelf display and consumer goal orientation.

"Most consumers don't associate potato chips, cheese puffs and cookies with the phrase 'low fat,'" say the authors. "So when a firm launches a low-fat version of its existing snacks it is marketing it based on an 'atypical' attribute. This is good news for major brands that dominate the market. They should be able to launch line extensions based on atypical attributes without worrying about pre-existing brand associations."

M&A

Holland & Barrett to get Ahold’s De Tuinen chain

Holland & Barrett, the UK subsidiary of US-based diet supplement retailer NBTY, is to take over Dutch retailer Ahold’s natural products retail unit De Tuinen for around 16 million euros in cash.

De Tuinen’s 41 stores and 25 franchise stores will transfer to Holland & Barrett Europe, but operate under it own name for the time being. NBTY controls about 1,000 stores in the US, UK and Ireland.

ConAgra sells Bumble Bee Seafoods to managers

The hard times faced by the fishing industry came into sharp focus again as US food group ConAgra yesterday sold its $500 million Bumble Bee Seafoods tuna subsidiary to its managers and private equity firm Centre Partners Management.

They take over all assets of the US’s number two tuna processor, including 3,000 staff and the Bumble Bee, Orleans,

Health

Stop eating and start sweating

That’s the advice from the International Food Information Centre, which has come up with diet and exercise advice for all of those of us who are overweight or obese, and that’s two out of three.

IFIC’s journal, Food Insight, says this month that overweight is caused by just one thing – eating more calories than you burn. To lose a kilogram you need to burn around 7,500 calories. Or eat less. Here are some tips to use or lose 100 calories.

Food Swap 250 ml regular soft drink for a diet soft drink. Drink two cups of fat-free milk instead of two cups of whole milk. Use ne teaspoon of mustard or ketchup or one tablespoon of fat-free mayonnaise in place of a tablespoon of regular mayonnaise. Split a small bag of crisps with a friend. Slice a typical piece of apple pie about one-third smaller.

Exercise (based on a 82.5 kg person) Pedal an exercise bike for 13 minutes. Practice some fast dance steps for 16 minutes. Work in the garden for 18 minutes. Walk briskly for 22 minutes (5.6 kph). Clean the house for 25 minutes.

Food and foot combos Eat five fewer potato crisps and walk for six minutes. Eat one-quarter cup less spaghetti with tomato sauce and walk for 11 minutes. Top toast with two teaspoons of apple butter instead of 2 teaspoons of butter and walk for 11 minutes. Serve three tablespoons less of mashed potatoes and walk for 13 minutes. Skip two half & half coffee creamers in coffee and walk for 15 minutes.

Easy, isn’t it?

Brain food?

For those who find it all too much, another source of enquiry may offer hope. Nature Medicine’s June issue reports that researchers may have found a brain mechanism that reduces food intake and affects the availability of blood glucose. This opens the door to new ways of thinking about obesity and type II diabetes.

In experiments with mice, they examined how neurons in the hypothalamus respond to increased concentrations of long-chain fatty acids by decreasing glucose production in the liver and relying on fats, rather than carbohydrates, as a source of fuel.

They found that inhibiting a critical enzyme in cells of the hypothalamus diminished markedly food intake and glucose production. The intricate mechanisms involved suggest that a complex interplay between glucose and fatty acids may help regulate body weight. Because type II diabetes results from problems in glucose metabolism, the finding suggest that drugs that target brain circuits could be useful in fighting both obesity and type II diabetes.

Trade

US kicks tobacco habit

US health and human services secretary Tommy Thompson said the Bush administration will support an international treaty to reduce the global health toll from tobacco.

Support for the Framework Convention on Tobacco Control at the World Health Organisation (WHO) assembly today reverses the American stand. The treaty bans cigarette advertising, unless deemed unconstitutional, and it calls for bigger and more visible health warnings on cigarette packs. It also supports higher taxes on tobaccco and contradicts a recent British Medical Journal article that secondhand smoke is not a public health threat. The WHO says smoking kills five million people each year and predicts that this will double by 2025.

Once adopted, 40 countries must ratify the accord before it takes effect.

GM

UK government may ignore public on GM

British environment minister Michael Meacher told a BBC radio programme that it may be illegal to ban genetically modified (GM) crops unless there is incontestable evidence that they harm people or the environment.

Meacher’s comments come in the light of a US request to the World Trade Organisation to overturn a European Union moratorium on the import and cultivation of GM crops and foods that is due to expire this year. It also undermines a month-long public debate on GM in Britain that kicks off on 3 June.

Environmental activist group Friends of the Earth reacted angrily to Meacher’s comments. It’s GM spokesman Pete Riley said "The public has made it perfectly clear that they do not want to eat GM food. Allowing GM crops to be grown commercially would threaten our food, farming and environment with GM pollution, and take away people's right to say no to GMOs."

Meacher’s comments also ignore concerns at the Grocery Manufacturers Association, a US food industry trade body, that GM crops grown for drugs may contaminate crops destined for food products.

This year several English counties have banned GM crops and most recently the National Trust, one of the biggest public landowners in the country, banned tenant farmers from growing GM crops on its land.

Food

Local is lovely

Freshly harvested foods grown by local farmers are becoming increasingly popular. But that doesn’t mean cash rich time poor consumers are giving up their Salad Nicoise and Melanze Parmiggiano.

Recent reports on radio and in the press suggest many consumers are worried about the quality control exercised by farmers who may be thousands of miles from their kitchens. They are also increasingly aware of the environmental cost of transporting exotic foods to local factories and shops.

While consumers like the taste of fresh vegetables and the sense of community that supporting local farmers brings, farmers like the (invariably) higher price and stable market for their produce. Paranoid shoppers perhaps find it more important that they can ask (and check) about production conditions. And buying locally makes cents; research from the New Economics Foundation in London shows that GBP10 spent at a local food business is worth GBP25 to the local community compared to GBP14 if it is spent at a supermarket. In other words, money spent on local produce stays in the community.

A recent report from the US based Leopold Center for Sustainable Agriculture found that "fresh" food in the US travels between 1,500 to 2,500 miles (2,400 to 4,000 km) from farm to fork, 25% farther than in 1980. Romaine lettuce typically travels 2,055 miles from farm to store, celery 1,788 miles, onions 1,675 miles and tomatoes 1,369 miles. Grapes travel farthest, 2,143 miles, says the study.

Time delays, which reduce the nutritional content of food, also encourage the shift to buying locally. It takes a week for food to travel from a field on one US coast to a store on the other. Food imports can take a month or more to reach consumers’ kitchens. And this may take longer under the Food & Drug Administration’s new anti-bioterrorism rules.

According to the US Department of Agriculture, there were 1,755 farmers’ markets in 1994, and this rose to 3,137 by 2002. In Britain the number jumped from one in 1997 to 450 by 2002, according to the National Farmers Union.

Some farmers are supported more directly by consumers. This might take the form of a fixed weekly payment for a weekly delivery of produce. This might be supplemented or discounted by the consumer working on the farm to weed and pick produce a couple of times a year.

Nice little earner

British farmers now earn more than £166 million a year from farmers’ markets - two and a half times that of just two years ago, according to research published by the UK’s National Farmers Union in September 2002.
It shows that farmers’ markets, which started in 1997 with a single market in Bath, are thriving in virtually every part of the country. Key findings include

  • The number of farmers' markets has more than doubled in the last two years from 200 to 450.

  • More than 60% are expanding.

  • There are 15 million individual visitors and at 60% of markets most customers are regulars.

  • 80% of neighbouring businesses saw a growth in trade once a market set up nearby. 

People

Dr Katherine Swanson, director of global product safety at US food firm General Mills, the NFPA Food Safety Award for 2003 in recognition of her dedication and many contributions to improving food safety. She will receive the award at the annual meeting of the International Association for Food Protection in New Orleans, which runs from 10-13 August 10-13.

Swanson, a microbiologist, is credited with the expert application of Hazard Analysis and Critical Control Point (HACCP) and other approaches for managing microbial hazards in food processing.

 
Tuesday, 01 February 2005
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