The challenges of launching new food and beverage products have intensified in recent years, with manufacturers navigating a landscape marked by rising commodity prices, geopolitical unrest, and an increasingly competitive market. According to Gareth Turner, director of FMCG marketing firm Big Black Door, “Cutting through is harder than ever.”

The food and beverage industry faces formidable obstacles as it attempts to innovate and introduce new offerings. Factors such as climate change have led to increased costs for raw materials, while geopolitical tensions have driven up energy prices. Additionally, regulations like the European Union’s Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CSDDD) have forced companies to reformulate products and adapt their supply chains.

In such a crowded marketplace, particularly in categories such as snacks, drinks, and plant-based products, securing and maintaining shelf space in retail environments is increasingly challenging. As Turner highlights, “There’s simply too much noise...”

Mistakes in New Product Development

The complexity of new product development (NPD) means financial risks are high for brands, making it critical for them to avoid common missteps.

One prevalent error is innovating for the sake of innovation itself. “Designing a new product is a balancing act between creativity and commerciality,” Turner explained. Brands often become enamoured with trends, neglecting consumer needs and failing to create products that offer real solutions or add value to their respective categories.

Another significant barrier to successful NPD is the lack of cohesive teamwork across departments. Turner notes that in larger organisations, aligning research and development, supply chain, marketing, and finance teams can be a challenging endeavour.

Moreover, brands sometimes fail to develop products that resonate with their intended consumers. “One of the most common mistakes is designing for the boardroom, not the retailer, shopper or consumer,” Turner said. He added that complicated propositions or jargon-heavy claims can alienate shoppers and undermine product success.

The necessity for products to fit seamlessly into consumers' lives is paramount. Turner cites the example of Arla’s Lurpak Cook’s Range, which required significant consumer education and ultimately struggled to gain traction on shelves despite heavy investment.

On a more positive note, certain brands have successfully navigated these challenges. Lonkero’s Finnish Long Drink, a grapefruit-flavoured alcoholic beverage, has made a notable entrance into the drinks market, generating interest at trade shows across Europe. Non-alcoholic option Lucky Saint is also highlighted as a brand redefining innovation by creating an aspirational image around its product, transforming a previously overlooked category.

Investment in a product’s ongoing success is another crucial area where brands often falter. Turner remarks that many underestimate the financial commitment and duration required to build brand reputation and ensure longevity. “You need a strong launch, but you also need to keep the momentum to ensure that the brand is secure in its place in the first quarter,” he says.

Turner’s advice to aspiring brands emphasises the importance of meticulous attention to detail, stating, “Be obsessed with the details because nobody else is going to do that for you.” Achieving a successful product launch involves careful consideration of factors that contribute to a product's long-term viability and success in an ever-evolving marketplace.