Reformulation on track in the tough times, data indicates
The UK’s Food and Drink Federation (FDF) has been taking on the challenge of making processed foods healthier for a number of years, and a working relationship with the Food Standards Agency over reducing levels of salt, sugar and saturated fats in products.
A new report published today called Recipe for Change showcases the efforts and achievements made by a number of FDF members, representing a broad of the sector. It gives an insight into one aspect of each company’s reformulation activities, to give a flavour of the work underway across the sector as a whole.
Data drawn from Mintel’s Global New Products Database and included in the report indicates that about 250 reformulated food and beverage products launched in the UK in the first part of 2009 – around the same as in the same period of last year. Since January 2008, the total count is over 700 products, more than in any other European country.
But as all businesses take a long, hard look at investments in the current recession, will such momentum continue?
According to Melanie Leech, director of the FDF, large-scale change “requires huge financial commitment by business.”
“The recession is clearly forcing companies to reprioritise their investment decisions and policy-makers and regulators do need to be sympathetic to the immediate economic pressures faced by food and drink companies,” she said.
“They may need to be more realistic about the pace at which our members can be expected to keep delivering new and expensive innovations in what has become a very competitive, value-driven market.”
The FSA has issued voluntary targets for the reduction of salt in certain kinds of products; the initial targets, for 2010, were recently replaced by a new set for 2012.
Long-term projects
The companies whose examples appear in the report have had reformulation strategies in place for a number of years. Kellogg’s, for instance, began its programmes in 1998, and Nestle in 1999. Brtivic started in 2006, and Mars Food UK launched an intensive programme in 2007.
However the precise timeline for launching a reformulated product, from idea through to its appearance on shelves, depends on the precise brief and the complexity. It can take anything from six months to two years.
The indication from large companies is that no slowdown in new projects is occurring at the moment. A Nestle nutritionist told FoodNavigator.com: “Reformulation is very much part of Nestlé UK's long term nutrition, health and wellness strategy, and as far as we are concerned, it is business as usual in terms of the product innovation and renovation we are undertaking."
There, reformulation is fuelled by research both locally and at the research centre in Lausanne, Switzerland.
Another feature of the recession is consumers trading down from branded goods to private label equivalents.
David Jago, director of insight and innovation at Mintel, said: “Reformulation is happening across the range, at every price point. In retail, for example, you are as likely to see basic value lines being reformulated as you are to see premium own label ranges.”
