Case studies: product development in the food system The four basic stages in the PD Process are the same for all food product development, but there are significant differences in the activities, techniques and timings for new product development in the primary production, industrial food processing, and food manufacturing industries Primary productions product development is based on either a breeding process from cultivated varieties or capturing a new species from the wild. The development of new plants, animals and fish takes a great deal of time and depends on times of growing and harvesting. There can be a general product concept based on perceived consumer or industrial wants and needs, and on echnical knowledge to identify the possible parents for the new varieties. But it takes generations to develop the suitable variants. This is described in the first Case Study on starting a new apple variety. The industrial ambience is of a farmers'cooperative fruit processing and exporting enterprise with a national horticultural research institution. The second Case Study looks at another fresh fruit project, on mangoes. This time the emphasis is strongly on the consumer,using statistical and other quantitative techniques to build up the consumers preference image, and then to use this consumer image and information in assessing current varieties, and moving towards improvements This is in the framework of government/university research, a national growers organisation and private exporters and marketers Industrial food processings product development is very strongly processing based, both in the ingredient supplying and the buying companies. Food manufacture is usually directed towards providing a wide variety of products for consumers, which is continually changing. There are major differences between the activities in the PD Process for industrial and consumer products, as shown Fg.7.1
The four basic stages in the PD Process are the same for all food product development, but there are significant differences in the activities, techniques and timings for new product development in the primary production, industrial food processing, and food manufacturing industries. Primary production’s product development is based on either a breeding process from cultivated varieties or capturing a new species from the wild. The development of new plants, animals and fish takes a great deal of time and depends on times of growing and harvesting. There can be a general product concept based on perceived consumer or industrial wants and needs, and on technical knowledge to identify the possible parents for the new varieties. But it takes generations to develop the suitable variants. This is described in the first Case Study on starting a new apple variety. The industrial ambience is of a farmers’ cooperative fruit processing and exporting enterprise working with a national horticultural research institution. The second Case Study looks at another fresh fruit project, on mangoes. This time the emphasis is strongly on the consumer, using statistical and other quantitative techniques to build up the consumers’ preference image, and then to use this consumer image and information in assessing current varieties, and moving towards improvements. This is in the framework of government/university research, a national growers’ organisation and private exporters and marketers. Industrial food processing’s product development is very strongly processingbased, both in the ingredient supplying and the buying companies. Food manufacture is usually directed towards providing a wide variety of products for consumers, which is continually changing. There are major differences between the activities in the PD Process for industrial and consumer products, as shown in Fig. 7.1. 7 Case studies: product development in the food system
318 Food product development Project sta Consumer product Consumer uniqueness, excitement Project aim Objectives and constraints specifications Product strategy Product concept Consumer testing Product design Process development Equipment design Plant modifications Protective packaging Aesthetic packaging commercialisation Precise specifications Product launch and post-launch evaluation industrial for market segment Fig. 7.1 PD activities for consumer and industrial products( From Earle and Earle, Building the Future on New ProductS, C LFRA Ltd, 2000, by permission of Leatherhead The industrial product, a food ingredient, is usually developed in collaboration with the processors or manufacturers who are going to use the ingredient in the production of their product. These companies may provide the product design specifications or may indicate some of the qualities they need therefore the PD Process is highly concentrated on process development and the customer does the field-testing. This is illustrated in the third Case Study in which development of an ingredient, a whey protein isolate, sophisticated both in its processing and in its market, is described. Research is carried out by an industry-wide research institute working with a university and a large farmers cooperative dairy company and dairy marketing organisation. The fourth Case Study is the development of a consumer product, a new variety of sauces. The development was to establish a new product platform with a number of individual lines, in a large factory unit of a multinational food manufacturing company, and to sell these sauces initially locally, and then for export to major international markets. This product development was totally private enterprise In studying these case studies, differences in activities in the four stages of the PD Process can be seen, caused by
The industrial product, a food ingredient, is usually developed in collaboration with the processors or manufacturers who are going to use the ingredient in the production of their product. These companies may provide the product design specifications or may indicate some of the qualities they need; therefore the PD Process is highly concentrated on process development and the customer does the field-testing. This is illustrated in the third Case Study in which development of an ingredient, a whey protein isolate, sophisticated both in its processing and in its market, is described. Research is carried out by an industry-wide research institute working with a university and a large farmers’ cooperative dairy company and dairy marketing organisation. The fourth Case Study is the development of a consumer product, a new variety of sauces. The development was to establish a new product platform with a number of individual lines, in a large factory unit of a multinational food manufacturing company, and to sell these sauces initially locally, and then for export to major international markets. This product development was totally private enterprise. In studying these case studies, differences in activities in the four stages of the PD Process can be seen, caused by: Fig. 7.1 PD activities for consumer and industrial products (From Earle and Earle, Building the Future on New Products, LFRA Ltd, 2000, by permission of Leatherhead Food RA, Leatherhead, UK). 318 Food product development
Case studies: product development in the food system 319 markets for which the products are designed technology available and used time taken for product development; costs of product develop priorities set by the various parts of the food system The Case Studies cannot be taken as typical of PD Processes because each has its own special features, but they do illustrate generic features 7.1 Primary production: creating a new apple variety Why does a consumer choose a particular apple and buy it, or indeed choose an apple at all rather than a pear or a plum? Maybe because it looks bright and attractive, maybe because it looks fresh and crisp, it is available or cheap, or it looks much the same as it always has and earlier experience was favourable. Or maybe because, over and above lots of positive attributes, it is novel and cries out to be tried. And then having bought it, if eating impressions are favourable and it is indeed appealing in taste, flavour and crispness, then the favourable image is retained and it is the variety that goes on being bought especially if the apple is distinctive. So in the striving and seeking to secure and gain market share there is a great potential premium from a desirable new variety 7.1.1 Product development for a new apple The area for product development was first identified and then the possible parents chosen. In the next generation, there were many variations, screened on technical analysis of product qualities such as sensory characteristics, nutritional value, composi- tion, use, safety production qualities such as production difficulties/ease, disease resistance handling qualities such as deterioration after harvesting and on storage The cultivars in the first generation were screened, and the most suitable for further development chosen for growing in the next season. This further generation grown in the next season was again screened. This time, not only was there technical screening but also the production and marketing experts selected for suitability for production and marketing. This growing and screening took several generations and significant time, in the order of years. On reduction to a few selections, the qualities were related to the market conditions at that time While senior people in the company made the final selections, they were assisted and guided by consumers and distribution/retail customers who evaluated the growers/farmers and then the first crop test marketed on a small scalp ? mercial hew fresh products. Production was started, multiplied with con
• markets for which the products are designed; • technology available and used; • time taken for product development; • costs of product development; • priorities set by the various parts of the food system. The Case Studies cannot be taken as typical of PD Processes because each has its own special features, but they do illustrate generic features. 7.1 Primary production: creating a new apple variety Why does a consumer choose a particular apple and buy it, or indeed choose an apple at all rather than a pear or a plum? Maybe because it looks bright and attractive, maybe because it looks fresh and crisp, it is available or cheap, or it looks much the same as it always has and earlier experience was favourable. Or maybe because, over and above lots of positive attributes, it is novel and cries out to be tried. And then having bought it, if eating impressions are favourable and it is indeed appealing in taste, flavour and crispness, then the favourable image is retained and it is the variety that goes on being bought especially if the apple is distinctive. So in the striving and seeking to secure and gain market share there is a great potential premium from a desirable new variety. 7.1.1 Product development for a new apple The area for product development was first identified and then the possible parents chosen. In the next generation, there were many variations, screened on technical analysis of: • product qualities such as sensory characteristics, nutritional value, composition, use, safety; • production qualities such as production difficulties/ease, disease resistance, yields; • handling qualities such as deterioration after harvesting and on storage. The cultivars in the first generation were screened, and the most suitable for further development chosen for growing in the next season. This further generation grown in the next season was again screened. This time, not only was there technical screening but also the production and marketing experts selected for suitability for production and marketing. This growing and screening took several generations and significant time, in the order of years. On reduction to a few selections, the qualities were related to the market conditions at that time. While senior people in the company made the final selections, they were assisted and guided by consumers and distribution/retail customers who evaluated the new fresh products. Production was started, multiplied with commercial growers/farmers and then the first crop test marketed on a small scale. Case studies: product development in the food system 319
320 Food product development Creating a new and successful horticultural variety is a long search through genetic possibility, inheritance, disease resistance, keeping quality, followed by the trade-offs of one attribute with another; and so all of these aspects had to be gone through. This went on over many generations of seedlings which, after the final selection was narrowed right down, has then to grow to trees and bear and proliferate. So the exercise was very much one of seeking to establish just what it is that the target consumers ask from their ideal apple, and then trying to match this against what nature, aided by the skill of the plant breeder, will allow All this took 15 years or so, making it an especially long-term undertaking. It is also an expensive one in that beyond the visible costs is the inevitability that money risked and spent now can receive no return for all those years. As a project this injects its own special features, while at the same time all the standard routines are still just as necessary as in any other development of a new New Zealand for many years had a 'single desk exporter and marketer of bulk apples working cooperatively for all of the apple growers. The Horticulture and Food Research Institute of New Zealand Ltd(Box 7. 1)carried out its variet development and licensed ENZA as a company to market its varieties Box 7.1 Horticulture and Food Research Institute (HortResearch) HortResearch is extensively involved in developing new plant varieties. We have expert breeding capability in a range of fruiting, ornamental, and agro. forestry crops. Our plant breeders work with industry in order to develop new varieties and rootstocks to provide cultural or market advantages for growers These activities are backed by extensive in-house scientific capability in sensory science, genetics and plant physiology to assist in making selections to suit the environments, end uses and tastes of different cultural groups both within New Zealand and around the world The fruit breeding programmes aim for variety, flavour, texture, storage life, appearance, productivity, pest and disease resistance and climatic adaptation HortResearch is a world leader in apple cultivar development. Examples of our success are the Pacific apple series (Pacific Rose, "Pacific Beauty,,and Pacific Queen)marketed by ENZAFRUIT This new variety development is also well supported by technical back up in orchard production, integrated pest management, postharvest handling and associated capabilities within Hort Research Source: Adapted from a publicity letter from Dr lan Warrington, CEO, HortResearch
Creating a new and successful horticultural variety is a long search through genetic possibility, inheritance, disease resistance, keeping quality, followed by the trade-offs of one attribute with another; and so all of these aspects had to be gone through. This went on over many generations of seedlings which, after the final selection was narrowed right down, has then to grow to trees and bear and proliferate. So the exercise was very much one of seeking to establish just what it is that the target consumers ask from their ideal apple, and then trying to match this against what nature, aided by the skill of the plant breeder, will allow. All this took 15 years or so, making it an especially long-term undertaking. It is also an expensive one in that beyond the visible costs is the inevitability that money risked and spent now can receive no return for all those years. As a project this injects its own special features, while at the same time all the standard routines are still just as necessary as in any other development of a new product. New Zealand for many years had a ‘single desk’ exporter and marketer of bulk apples working cooperatively for all of the apple growers. The Horticulture and Food Research Institute of New Zealand Ltd (Box 7.1) carried out its variety development and licensed ENZA as a company to market its varieties. Box 7.1 Horticulture and Food Research Institute (HortResearch) HortResearch is extensively involved in developing new plant varieties. We have expert breeding capability in a range of fruiting, ornamental, and agroforestry crops. Our plant breeders work with industry in order to develop new varieties and rootstocks to provide cultural or market advantages for growers. These activities are backed by extensive in-house scientific capability in sensory science, genetics and plant physiology to assist in making selections to suit the environments, end uses and tastes of different cultural groups both within New Zealand and around the world. The fruit breeding programmes aim for variety, flavour, texture, storage life, appearance, productivity, pest and disease resistance and climatic adaptation. HortResearch is a world leader in apple cultivar development. Examples of our success are the Pacific apple series (‘Pacific Rose’, ‘Pacific Beauty’, and ‘Pacific Queen’) marketed by ENZAFRUIT. This new variety development is also well supported by technical back up in orchard production, integrated pest management, postharvest handling and associated capabilities within HortResearch. Source: Adapted from a publicity letter from Dr Ian Warrington, CEO, HortResearch. 320 Food product development
Case studies: product development in the food system 321 Table 7.1 Timetable for the development of Pacific Rose apples Ist cycle(product strategy) from 'Pacific' markets of ne blush apples 6 months Grown in glasshouses 20,000 seedlings oDen 8000 seedlings Selected on resistance toblackspot'and 2nd cycle (product design and process development) Grown in fruit selection orchards 5000 seedlings 4 years Selected on fruit characteristics Grown on two sites 100-200 seedlings Selected by plant breeders, pomologists, 2 years on fruit and growing characteristics Judged for market suitability 10 seedlings 3rd cycle(product commercialisation and product launch) I variety selected 2 Growing expanded Seedlings distributed to growers 1000 cartons 1994 Pomology developed, storage trials 5000 cartons 1995 Multiplied by commercial breeders/growers 22 000 cartons 1996 Commercial production 104. 000 cartons The stages and approximate timing of the development of Pacific Rose are shown in Table 7. 1. This indicates the very extended time scale, arising from the intervals necessary for the seedlings of each successive generation to grow so that their fruit can be evaluated Plant breeders normally talk about development cycles and these have been arbitrarily related to the PD Process. Because of the nature of developing apples there is not an exact date for launch, but the market is expanded in a rolling launch as the fruit becomes available 7.1.2 Stage 1: Product strategy Management decided that the existing varieties had been on the market for long nough, and to provide an edge and a stimulus a new variety was needed. To some extent this is a continuing search. But it gained added stimulus as the older varieties were a bit stale, and market share would surely dwindle as the ompetition sought to kindle its own novelties. Apart from the very broad oncept, a new apple, plant breeders thought back over the whole gamut of experience with apple varieties. They tried to single out characteristics that
The stages and approximate timing of the development of Pacific Rose are shown in Table 7.1. This indicates the very extended time scale, arising from the intervals necessary for the seedlings of each successive generation to grow so that their fruit can be evaluated. Plant breeders normally talk about development cycles and these have been arbitrarily related to the PD Process. Because of the nature of developing apples there is not an exact date for launch, but the market is expanded in a rolling launch as the fruit becomes available. 7.1.2 Stage 1: Product strategy Management decided that the existing varieties had been on the market for long enough, and to provide an edge and a stimulus a new variety was needed. To some extent this is a continuing search. But it gained added stimulus as the older varieties were a bit stale, and market share would surely dwindle as the competition sought to kindle its own novelties. Apart from the very broad concept, a new apple, plant breeders thought back over the whole gamut of experience with apple varieties. They tried to single out characteristics that Table 7.1 Timetable for the development of Pacific Rose apples 1st cycle (product strategy) Discussion from ‘Pacific’ markets of need for blush apples 6 months Grown in glasshouses 20,000 seedlings Expert selection 18 months Grown in open ground 8000 seedlings Selected on resistance to ‘blackspot’ and ‘powdery mildew’ 2nd cycle (product design and process development) Grown in fruit selection orchards 5000 seedlings 4 years Selected on fruit characteristics Grown on two sites 100–200 seedlings Selected by plant breeders, pomologists, 2 years on fruit and growing characteristics Judged for market suitability 10 seedlings 3rd cycle (product commercialisation and product launch) 1 variety selected 2 years Growing expanded 1993 Seedlings distributed to growers 1000 cartons 1994 Pomology developed, storage trials 5000 cartons 1995 Multiplied by commercial breeders/growers 22,000 cartons 1996 Commercial production 104,000 cartons Case studies: product development in the food system 321