Innovation is vital in today’s increasingly competitive food market, a report by global measurement company Nielsen has found.
Nielsen’s Breakthrough Innovation Report in Australia highlights selected products which are classified as ‘breakthrough innovations’ in the market and outlining critical and actionable lessons for the grocery industry.
The 2016 Breakthrough Innovation Report reviewed 10,770 consumer products that were introduced to the market during 2014. The products were assessed in regards to their distinctiveness, relevance and endurance – whether they delivered a new value proposition, generated a minimum of $4.5 million in annualised first year sales and achieved at least 90% of year-one sales in their second year.
Nielsen’s research indicated that 25% of new products did not stay on the shelf after the first year of launch and today, 53% of products on grocery shelves were launched in the last five years. Throughout 2014, only 48 out of 10,770 product launches in the Australian grocery category were considered ‘breakthrough innovations’.
“The Report details why innovation is vital in today’s increasingly competitive environment. Successful innovation is the key to delivering real incremental dollar growth – it’s critical to get right and it’s astounding how many get it wrong,” said Thais Gill, Innovation Practice Leader at Nielsen.
Some of the Breakthrough Winners for 2016 include Helga’s Lower Carb Bread, Old El Paso Stand ‘N Stuff (pictured), McCain’s Healthy Choice Frozen Ready Meals and, Arnott’s Shapes Light & Crispy.