The Evolution of Food Innovation

Except for springtime snow showers, we couldn’t have asked for a better way to bring back the Innovation Breakfast series. Our dynamic panel, spanning marketing, finance, strategy and R&D inspired us with their insights on the evolving landscape of food innovation. 

Here’s what we think stood out:  

• Innovation is back at the forefront, with a focus on new flavors, value engineering, and enhancing existing products, 
  
• A ”start-up mentality” is at least partially integrated into the thinking and processes of larger food companies, 
  
• According to our panelists, consumers are today looking for either premium or value, if you’re in the middle, you’re in trouble. 
  
• Consumer communication is shifting: there is a need for consumer education on labelling. Visuals are changing to attract new generations with different colors and meanings associated with them. 

Innovation, Then and Now 

CFBN Executive Director Alan Reed kicked off the discussion by reminding us of the pre-pandemic times when the when the food and beverage industry thrived with a boom of start-ups (several of which have now been acquired by larger CPG-companies). Fast-forward to today, Emily Daigle Potter, Director of Innovation Marketing at Simple Mills, reflected on Expo West highlights, where innovation has returned to the core, especially seeing the introduction of new flavors, like dates and dill pickle applied in interesting new ways, such as a cauliflower dill pickle pizza. Chomps CFO Tim Bosslet, added that simplification – natural ingredients and clean labels – emerge as a part of modern innovation, as well as improving existing products, taking a frozen waffles example as a recently and subtly reinvented classic. 

Another trend from Expo West highlighted by Potter is new visual identities, more colorful and bright packages. Tapping into this trend, Shannon Murphy CEO of bluedog,  noted this as a way of brands to address new generations, i.e. GenZ. She said to expect more changes in packaging and labelling, with an increasing demand for educating consumers on explaining labels and something where the industry would also have to step in and take responsibility.  

The Start-Up Spirit  

In pre-pandemic times, Murphy reflected on how big CPG-companies were chasing the start-up culture through acquisitions. Today, the start-up mindset is much more incorporated into the thinking and practices of larger food companies. 

Chicago-based start-ups, Simple Mills and Chomps shared their success stories. Potter highlighted Simple Mills’ strategic acquisition by Flower Foods, a partnership that enables the better-for-you brand to grow distribution and amplify brand awareness. Bosslet called Chomps the ’13-year overnight success’, starting as an online brand, moving to Trader Joes as an instore outlet and currently maturating presence and distribution. Key enablers he mentioned were continuing authenticity and brand awareness. 

Tom Koziel, McCain Foods'  VP R&D, reflected on these journeys from a large CPG-perspective, stating that big brands are always looking to launch a product as a start-up. Koziel emphasized that even ‘overnight successes’ take years, reminding us of the long-term nature of innovation and product launches. 

What’s Trending in Innovation

According to Koziel, consumers today fall into two clear camps – those willing to pay a premium for quality, and those focused on value, which reflects continued price pressures. Koziel introduced the DFV-model (Desirability, Viability and Feasibility), emphasizing that not all exciting ideas are easy to execute. He also illustrated this point with the example of Ferrero Rocher – a simple concept that is actually difficult technically to achieve, and therefore both unique and protectible for the company. Shannon Murphy added a fourth point to the DVF-model: Sustainability. If a company can find the right intersection of these three axes, that’s the path to long-term growth. 

Murphy predicted ongoing disruption in quick-service and fast-casual dining. Customers are re-evaluating the value and experience when dining outdoors. Koziel agreed, pointing out that while the number of restaurants has increased post-pandemic, restaurant traffic hasn’t caught up which points to the importance of innovations that will positively contribute to drive engagement.  

Closing Remarks 

The first Innovation Breakfast left us energized and eager for what’s next. We look forward to continuing the conversation on May 1st, when we’ll explore Innovation in Healthy Foods with our next expert panel.