ideagenfoodnpdcavan jim mulcahy
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Ideagen- May 10th 2011
New Food Product DevelopmentNew Food Product Development
Jim Mulcahy, Manager, Prepared Consumer Foods Dept
Enterprise Ireland
Agenda
• Setting the Scene- the current economic climate
• Food- our most important industry sector
• The domestic retail market
• The prepared consumer foods market- trends, drivers
• Enterprise Ireland strategy for - competitiveness
- innovation
- management development
• Some strategic options
• Manufacturing Output hits 11 year high
• More staff being hired
• Strong demand from Europe and Asia
• PMI Index (56.7) hits highest level since 2000
• New export orders expanded at second highest rate since 1998
The Good News!
• New export orders expanded at second highest rate since 1998 pushing employment growth to 4 year high
World population in 1999 – 6 Billion
2012 – 7 Billion
2025 - 8 Billion
Economic development in the ‘BRIC’ countries
The Future of Food
Economic development in the ‘BRIC’ countries
Finite, or diminishing arable land resources
Current Challenges
• Rising input costs – wheat, sugar
• Retail concentration and power – price deflation• Retail concentration and power – price deflation
• Economic downturn
• Bank facilities
• Globalisation
• Energy costs
‘Food Harvest 2020’
A vision for the Agri-Food Sector
3 Themes - Act Smart
- Think Green
- Achieve Growth- Achieve Growth
Targets: To increase
Primary output by €1.5 billion
Value added by €3.0 billion, and
Exports by €4.0 billion.
• 9% GDP (Output of €18 billion)
Food Food –– Our most important industry Our most important industry sectorsector
• 8% of total exports to over 170 overseas markets
• 9% total employment (51,000 directly - 60,000 indirectly).
• €8 billion (71%) Irish purchases
• For Ireland, food is the business!
Ireland the Food Island• Temperate climate
• Clean environment
• Traceability – safe food• Traceability – safe food
• High quality product
• Surplus production – exports
• Rigorous safety standards and regulations.
• Strong educational and research infrastructure.
• Strong Government support
Clients
AIBP
The Domestic Retail MarketThe Domestic Retail Market
• Tesco, Dunnes, Musgraves,(70%)
• Discounters Aldi, Lidl (9%)
• Own label V. Branded
Retailer’s Product Criteria:
The product’s commercial performance
The supplier’s food safety systems
The supplier’s service performance.The supplier’s service performance.
PCF Market PCF Market –– Trends, DriversTrends, Drivers
• Health and Well Being Agenda
• Taste, Quality
• Convenience
• Value
Health and Well Being (‘You are what Health and Well Being (‘You are what eat’) youeat’) you
• Nutriceuticals (Omega 3 – brain health)
• Cosmeceuticals – retard aging
• Food Safety - Traceability• Food Safety - Traceability
• Satiety - Weight control
• Natural Foods – no artificial
preservatives, additives, colourings.
Less salt, sugars, fats
Health and Well Being (Contd.)
• Cholesterol lowering products
• Low carbohydrate products
• High fibre
• Gluten and allergen free• Gluten and allergen free
• Superfruits, (Cranberries, Pomegranate, Goji, Acai)
• Calorie – burning products (containing green tea extracts and caffeine)
• There has been no single trend that has had a bigger impact on the food industry and will continue to do so than……..
• Convenience
Richard George, Ph.D Professor , Food Marketing,
St. Joseph’s University, Philadelphia.
Convenience Convenience –– ‘Cash rich, time poor’ ‘Cash rich, time poor’
societysociety
• Changing demographics – single households. The ‘grey market’. Ethnic foods
• Demise of family meals. ‘Grazing’.
• Frozen Foods, the microwave.
• Eating out• Eating out
• On the move – ‘dashboard dining’,
‘eating al desko’
• Cooking now a spectator sport
Taste, QualityTaste, Quality
• Travel – more sophisticated, demanding consumers
• More affluent consumers
• Eating now an adventure or new culinary experience
• Current difficult economic climate
ValueValue
• Current difficult economic climate
• Price deflation due to retail competition
• Travel experience (e.g. wine)
• Discounters v. Multiples – segmenting shopping trip (Necessities + indulgence)
Enterprise Ireland Strategy
Focus on:
• Competitiveness - Lean Business
• Innovation - New Product, • Innovation - New Product, Process Development
• Management Development
• High Potential Start ups
Competitiveness – Lean Business
• Lean Business Principles• Lean Business Principles
• Top management support and involvement
• Across Total Value Chain
• Establish structure for continuous improvement
• Impressive results to date
R&D, InnovationR&D, Innovation
• Research – Using money to create knowledge
• Development (Innovation) – Using knowledge to create money
Current Food Research
• Food for Health Ireland – extraction of milk ingredients.
• Alimentary Pharmabiotic Centre - how intestinal bacteria influences health and disease.
• NutraMara - researching seaweed and algae for functional food development.
• Eldermet – the development of foods for the elderly.
Innovation Milestones• Most Important Inventions of the Twentieth Century?
• Haber-Bosch Process (1913). Ammonia from atmospheric nitrogen oxidised to form nitrate fertiliser that sustains one third of the worlds population.
• Frozen Foods -Charles Birdseye (1920).
Convenient and nutritionally intact products.
Food InnovationFood Innovation
Mostly:
• Packaging
• Line extensions – e.g. new flavour• Line extensions – e.g. new flavour
• Reformulation – Changing recipe
• New brand – New way of branding of existing product
• Process reorganisation – Supply chain innovation
• Innovation essentially a market access and market maintenance issue
Food InnovationFood Innovation
New Products
• Pot Noodles
• Cheese Strings
Process Innovation
• Cornetto• Cornetto
Packaging
• Heinz ‘Snap’ Pots
Developments in Packaging Technology
• Most Food NPD in packaging
• Most packaging developments in active packaging technology
• Active functions beyond passive containment and protection
Developments in Food Packaging Technology
• Biodegradable packaging
• Micro wave packaging• Micro wave packaging
• Self heating packaging
• Nanotechnology in intelligent packaging
• Nano sensors
• DNA biochips
• Biotechnology- Develop health promoting foods
Exploiting Technological ChangeExploiting Technological Change
• Biotechnology- Develop health promoting foods
• ICT – Consumer behaviour (POS)
• RFID - Traceability
• Robotics – Productivity, competitiveness
• Sensor Technology – Information generation
• Nanotechnology – Smart packaging
• Processing – Non thermal processing, freezing technology, etc.
Management Development
• Seafood Processors Strategic Management • Seafood Processors Strategic Management Development Programme
• Retailer Supplier Development Programmes
• Lean Business Programmes
• L4G, Transform CEO Programmes
• Key Personnel Support
Some Suggested Strategic Options
• New products – grapes, wine? (Global warming)
• Organic products
• Agri- tourism, Culinary tourism.
• Food related products – Information Technology, specialised packaging, engineering etc
• Network with other EU regions
Suggested Strategic Options
• Distinctive Brand Development
• Eg. Fuschia brand, West Cork
Food Support Agencies
Thank you for your attentionThank you for your attention
Questions?Questions?Questions?Questions?
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