20th November 2023 By Bridget O'Connell | email@example.com | @foodtickernz
Innovation is working harder for manufacturers, according to Circana, which says that while new product development continues to fall, it is outperforming in terms of value growth.
Speaking at the firm’s annual State of the Industry presentation last week, Circana’s head of retail, solutions, and innovation, Debbie Simpson-Pudney, said there had been a 25% drop in NPD in “the recent market”.
“However, on the flip side, we have seen value growth of 30%. So this is a real positive story as it means it’s working harder,” she said.
The fall in NPD continued a decline that started in 2019 – according to last year’s presentation by the firm, then called IRI.
It found that in the year to the third quarter of 2022, just over 5,851 products were launched, down from 7,192 in the previous comparable year, and a drop from more than 10,000 in 2018.
The firm also ranked some of the best performing NPD of the period to 10 September 2023, looking at dollars sold by active week, noting it was new flavours, pack formats and convenience that helped to drive performance at the top eight brands.
Its list was topped by poultry brand Tegel on $13.3m, followed by chocolate brand Whittaker’s, which was also a 2022 shortlister.
“A regular participant on our slide, Whittaker’s has once again come out with some exciting and desirable new flavours that have resonated with consumers, and their bold and enduring approach to innovation has been one of the key components behind their success,” Simpson-Pudney said.
“And the launch of Tegel’s new Quick Cook range has helped reinvigorate the fakeaway occasion, providing time-poor parents a quick meal solution for kids in the family.”
She added that Kiwis were also “getting on the health train” helping to grow sales of healthier products.
“Low-carb beers are on the rise and this Export Ultra Low Carb Lager has driven great sales.
“Flavour category extension options always remain popular, so Nutella biscuits and Pascal Hokey Pokey lumps have also performed really well.”
14 Nov 2022 NPD revenue plummets – IRI