Industry poised for ‘innovation heyday’

The food and beverage industry may be heading for an ‘age of innovation’, according to qualitative research undertaken by Science Group companies Leatherhead Food Research and Oakland Innovation.

In-depth interviews with global brands revealed a trend for more creative, open minded and collaborative activity to overcome sector challenges. Interviewees talked extensively about a rise in democratic approaches to innovation as well as out of sector inspiration and consumer centricity. There was widespread acknowledgement that brands need to foster big ideas, not just incremental product development.

Leatherhead’s MD Chris Wells presented a first view of the findings at the NLS Food Evolution Summit in California on 13 and 14 September.

“Leading food and beverage brands are taking a long hard look at their approach to innovation,” Wells explains. “Product development alone is not enough in today’s always on world, where consumers have greater choice and power than ever before. Clever, customer focused start-ups can quickly disrupt and colonise market segments that have been unchanged for decades.

“In this dynamic new environment, doing things as they have always been done is inherently risky. Getting the right balance of investment between incremental innovation and longer term, open innovation is vital to ensure food and beverage companies remain relevant with consumers.”

The research involved 27 in-depth interviews with senior innovation and new product development professionals from food and beverage companies in Europe and North America.

More detailed findings will be released at Leatherhead’s members’ conference on 4 October.