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food processing Lecture 09

Product development involves creating, processing, and commercializing new products, requiring a balance between quality, cost, sustainability, and consumer appeal. The process includes stages such as ideation, formulation, processing, and commercialization, with key team members from various backgrounds contributing to the development. Challenges include product failures, ingredient costs, and regulatory requirements, with timelines varying from 3 months for line extensions to 1-3 years for entirely new products.

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4 views

food processing Lecture 09

Product development involves creating, processing, and commercializing new products, requiring a balance between quality, cost, sustainability, and consumer appeal. The process includes stages such as ideation, formulation, processing, and commercialization, with key team members from various backgrounds contributing to the development. Challenges include product failures, ingredient costs, and regulatory requirements, with timelines varying from 3 months for line extensions to 1-3 years for entirely new products.

Uploaded by

mds
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Product Development and

Commercialization
Introduction to Product Development

• Product Development is the process of creating, processing, and


commercializing a new product.

• New products need to be of interest to a target market.

• Product development teams are made up of members with a variety


of backgrounds.
• It’s a repetitive process in which food brands search for a balance between
product quality, cost-effectiveness, sustainability and consumer appeal to
bring a successful product to the market.
The stages of food product development

• Ideation
• Formulation
• Processing
• Commercialization
1. Food Product Ideation
• Ideas can come from anywhere.

• Sometimes you pick something up from the market, or a consumer or


employee has a great suggestion.

• Some ideas are for a brand-new product and some are for a line extension of
an existing product.

• Once ideas have been generated, it is important to identify the target


customer.

• Trends are followed closely to determine what is new and upcoming.


• Market research and validating your product concept

• You can use different types of market research to check you’re on the
right track and to make your new food product your best yet. These
are the ones we don’t recommend skipping.

✓Research competitor products

✓Consumer research

✓Test your (creative) concepts

✓Measure the effects on your brand recognition


2. Formulation

• Time to put your culinary skills to the test. In this step, you’ll be creating the
perfect recipe to make a new product.

• Procure ingredients and make them into a product on a small laboratory scale.

• Possible issues
✓Sourcing ingredients and ingredient costs

✓Product shelf life (often not tested in formulation, but needs to be considered early in the
process)

✓Can the product really be made on a large scale?


3. Processing
• The formulated product process is “scaled up” to produce greater volumes

• Often the process is “scaled up” more than once (Pilot plant testing).

• There are always product changes with scale-up.

• Quality & Proximate Analysis testing done to set specifications, determine


food safety concerns, and estimate shelf life

• Processing experiments and runs allow a more accurate product cost to be


determined (include processing efficiency, rework used, etc.)
• Process attributes

✓Sensory Attributes

✓Nutritional Profile

✓Product Specifications

✓Shelf Life

✓Overall Functionality
4. Commercialization

• Once the new product has been made successfully, it is sent to


commercialization to launch the new product into the store for sale.

• Steps include:
✓determining packaging
✓creating a label (logo, nutrition facts, etc.)
✓finalizing costs
✓developing advertising and/or literature for the product
Commercialization Key Questions:

• How should the product be positioned for the best sales?

• What attributes do you highlight?

• Where does it go in the grocery store (should consider


this throughout the development process)?

• What effect will the distribution system have on product


quality?
After the launch of a new product:

• Determine if the new product was successful.

• Success can be measured by:


• Growing interest, increase in sales
• Market share

• Company sales revenue


Stage and Gate system

• At each stage, or even within the stages, there are checkpoints to


decide to continue or stop the project.

• This can be done through a Stage and Gate System like the example
shown here or it can be done in a modified system.

• The principle is the same, though, to develop new products


strategically and use time and resources wisely.
Assigning product development team

• A product development team can be very successful with all members


contributing an expertise.

• Key team members include product development, engineering,


production, purchasing, quality, regulatory, marketing, sales, and
upper management.
Product Developers

• In charge of developing new products, especially in terms of the hands-on testing and
managing the development process. The duties of the product developers are as follows.

• Formulate Product

• Determine Sensory and nutritional attributes

• Food Safety Concerns

• Test the Process

• Shelf Life Testing

• Calculate Costs (may need input from others)


Engineering and Production

• Engineers and production Managers help determine Process Design:

• Equipment Design and Maintenance

• Process Controls

• Production Costs (line speeds, overhead cost)

• Employee Training

• Sanitation

• Package Design and Cost of Production

• Consumer Safety and Handling


Quality
Quality controllers and food analyzers help to determine :

• Ensures consumer expectations are met

• Sensory and Quality attributes are tested to make sure the product meets the
specifications

• Food Safety

• HACCP and Preventative Controls plus Prerequisite Programs

• Microbiology Testing, Foreign Material Testing, Incoming ingredient and packaging


safety checks

• Process Checks and documentation inspection


Regulatory

• Makes sure the new product is legal and safe

• Coordinates a Generally Recognized As Safe (GRAS) dossier if necessary


(typically for ingredient development)

• Regulations
• Product Name
• Standard of Identity
• Nutrition Labeling
• Product Codes
Marketing & Sales
• Defines product market and positioning
• Confirms consumer need for a new product through surveys and consumer
data
• Develops advertising strategy
• Monitors competitor’s sales and new product introductions
• Helps design product packaging, especially tied to attracting the target
audience
• Has input on the product name
Challenges of Product Development
• Product failures (scale-up changes product characteristics, shelf life is not long

enough, low consumer acceptance, etc.)

• Ingredient costs and availability

• High process cost

• Processing and equipment limitations

• Sustainability and regulatory requirements


Timeline for new product development
• Quick: 3-6 months
• A line extension for an already existing product
• Example: A new flavor of a popular soda
• Average: 6 months-1 year
• A new product, that still can be made on existing equipment
• Example: A new type of cereal
• Long: 1-3 years
• A brand new product – could be hard to make or new equipment may need to be
designed/purchased. Examples: co-extruded snacks and plant-based meat
alternatives
• Developing a new ingredient often takes longer than developing a finished food
product because there are more regulatory and sales hurdles involved.

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