The classics have always held their ground: chocolate, strawberry, and vanilla. These flavors are the pillars in categories like ice cream, flavored milk, and ready-to-eat desserts. They’re the comforting tastes we all turn to, time and time again. But as much as we love these familiar favorites, there’s a craving that’s hard to ignore – consumer desire for something new, something different, something adventurous.
However, F&B manufacturers often find themselves in a dilemma. The drive to innovate and introduce novel flavors is tempered by concerns over volume, shelf space, retailer adoption and consumer takeoff. It’s true, innovations may start small, and they do require more effort, but is sticking to the classics a sustainable strategy in the long term?
The Demand for Taste Adventures
Consumers’ palates are becoming increasingly adventurous. We have seen salted caramel make a big splash, pumpkin spice representing LTO’s, matcha bringing vibrancy, coffee bridging the gap to young adults etc. As much as consumers love comfort, they also want to break the monotony of their usual choices. This quest for novelty is more than a passing trend; it’s a real opportunity for differentiation tackled correctly.
The Innovation Dilemma
The hesitation to innovate stems from legitimate concerns. New flavors mean new recipes, means more complexity in production, dealing with smaller initial volumes and sharing of valuable shelf space with the classics. Moreover, convincing retailers to stock new, untested products can be a significant hurdle. But here’s the catch: innovation is the lifeblood of growth in the F&B industry. Without it, brands risk stagnation.
Balancing Turnover with Profitability
The key is to find a balance. Yes, your classics provide the volume, but innovative products offer something just as valuable: increased profitability and bringing excitement to well established categories. New offerings can command higher price points due to their novelty and appeal to consumers looking for premium experiences. Indeed, more scarcity you as a brand can build into the value proposition, the more demand you will generate.
Keeping Newness Top of Mind
Innovation should be a constant endeavor, not an afterthought. It’s about keeping your brand relevant and top of mind for consumers. By regularly introducing new innovations, you create buzz and give people a reason to choose your brand over competitors. With “new” changing so fast, thanks to TikTok and Instagram, there are always new opportunities to explore. Key is to remain focused on your overall brand objective.
A Sustainable Strategy for Growth
In the long term, a portfolio that balances classic comfort with innovation and novelty is more sustainable. It allows your brand to cater to a broader audience – satisfying cravings of traditionalists while attracting adventurous consumers. This strategy ensures that your brand remains dynamic, responsive, and poised for growth.
Innovate with Purpose
Innovation for the sake of novelty alone is not the goal. It’s about thoughtful, consumer-driven innovation that meets emerging tastes and preferences. Understand your category, listen to your consumers, and let their desires fuel your innovation strategy.
It’s time to look at your portfolio with a long-term lens, balancing the reliability of volume with the excitement and profitability of innovation. Remember, the greatest risk lies not in innovation but in complacency.