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Issue 4

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Spencer Green
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Forward-Thinking Food

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The times really are a changin’ in the food world what with the shift towards healthy foods and even healthier interest in the traceability of ingredients. Which is why Innovation in the European food industry should now be integral to success. But JP Morgan estimates that in 2004 the four largest European food companies only spent about 1.8 percent of their sales on R&D, representing a 0.2 percent increase in five years. Spending on food R&D in Europe is low compared to other industries, according to a study published last year by the European Commission. And in an industry that grew only 1.9 percent between 2002–3 it’s clear that manufacturers must innovate or find their food increasingly difficult for consumers to digest.

As healthy eating and a shift away from processed and convenience foods continues, it is essential that manufacturers move with the times and meet the changing demands of consumers. A recent survey by Marks and Spencer revealed that 70 percent of Britons are making an effort to eat healthy, whilst JP Morgan have revealed that 18 of the 24 fastest growing food categories worldwide are in those perceived to be healthier.

Responding to this, one of the main drivers in the R&D process is to produce healthy, nutritious and most importantly tasty food. “Innovation and therefore R&D are crucial and at the heart of what we do,” says Herman Van Herterijck, Chief Operating Officer at Unilever Food solutions Europe. “The consumers’ habits – and as a consequence our customers’ needs – change continuously. Therefore, standing still is not an option for us. We must pro-actively spot these new needs and trends and immediately develop new ‘solutions’. Consumers want more choice and they want more guarantees on the healthy aspects.”


Ask the experts

One of the chief reasons for R&D is to ensure that the public gets what it wants. And what better way to do this than to ask customers. McCain is one manufacturer who has realised the benefits this form of research can bring. Over the last 18 months the company has made a conscious effort to make its food healthier – particularly its offerings for children. Thus a recent project has involved working with local schoolchildren. The company approached a primary school in Scalby and asked them to design a healthy, nutritionally-balanced product. “We decided to ask the children to come up with ideas as normally it is adults developing products for children,” says Pam Hume, Head of New Product Development at McCain. “We tend to think we know what children like, but you can never be 100 percent sure about that.”

All the ideas had to follow a number of ideas; it had to contain vegetables along with a certain level of protein, any fat should be kept below five percent or three percent, saturated fat had to be below one percent (following guidelines set by the FDA), and salt needed to be kept as low as possible.

Popular ideas designed by the children included a curried potato ball with rice and a Thai vegetable cake. McCain were surprised by the amount of ethnical ideas that came from the children. The results contradicted McCain preconceived idea that children hate spicy food. “The learning for us from this project is that children are much more discerning than most adults give them credit for,” stresses Hume. “They know what they like, and it isn’t necessarily what we think they like either. I think one of the biggest learning curves for us is that adults can’t always develop products for children and get it right.”

Listen and learn

Liaising with customers for inspiration is also an approach employed by Unilever, which confers on a regular basis. “Our ambition is to be a real ‘partner’ to our customers (i.e. the chefs of the restaurants, hotels, canteens),” says Van Herterijck. “Therefore we must first understand their needs and problems. This explains why we have an extensive culinary trained sales force in this field who carry out about 10,000 customer visits each day all over Europe. They have one major objective i.e. to listen actively to our customers, understand their problems and then find adequate solutions for them. The briefings resulting from this go straight to our multi-functional innovation teams (i.e. Marketing, R&D, Chefs, Supply Chain) who have the task of analyzing the customer needs and combining these with the consumer trends and behaviours.”

One of the innovations that has materialised from this process has been a range of fruit and vegetable based sauces know as Coulis. In response to the rise of healthy eating, the product is not cream-based therefore is less heavy. “Only a few vegetables and fruit are used as ingredients,” says Van Herterjick. “Nothing is added artificially, it is pure and 100 percent natural. Given this innovation is completely based on a well-defined consumer and customer needs, it looks like a big breakthrough success.”

Similarly, the company has been focusing its attention on the burgeoning sandwich industry. As interest in fast-food chains and junk food dwindles, customers are increasingly demanding healthier lunchtime options. After careful research the company discovered that sandwich producers have difficulties keeping them fresh. “Consumers are not satisfied anymore with the classic cheese and ham, but want more tasty alternatives,” highlights Van Herterijck. “At the same time the customers are struggling with keeping their sandwiches fresh, crispy (not soggy) and attractive. We have been analysing the problems and shortcomings of the present dressings and spreads used, and have developed a complete new breakthrough, called ‘Sandwich Delight’ which is a very tasty and foolproof sandwich filler, made of healthy natural ingredients.”

As the popularity of sandwiches increase, particularly in the UK where the market is worth £3.6 billion (a 28 percent increase on sales in 2000) the company could very well be onto a winner with their new development.

Convenience cooking

Along with healthier eating other factors are also driving the innovation process. At East End Foods, a manufacturer of Indian foods, the emphasis is very much on providing the customer with convenience whilst not skimming on taste, quality or authenticity. One of its new products, ‘Design your own Curry’, enables people to cook a curry to their taste in 20 minutes. “Consumers will be able to do their own slight variations if they so with,” enthuses Tony Deep MBE, Chairman and Founder of East End Foods. “The product consists of fried onion curry base, ginger-garlic, in jars and a spice blend of their liking in an attractive packaging. It is intended for those who wish to cook curries at home, but do not always have the time.”

The company is also focused on introducing customers to new and interesting tastes in an effort to dispel the myth that Indian food consists only of Korma, Balti, Jalfrezi, Tikka and nothing else. “When you go to countries such as India – as a consumer, you find so many new things being produced. I meet the hotel chefs and discover what is new on the menu and bring that knowledge here,” explains Deep. “There is a huge amount of dishes to be offered. It is such a big country with mouth watering regional delights. The major multiples haven’t really made any effort to help explore Indian food further. They have just created some sauces for people to dump on meat and there is your curry. This kind of cooking does not permit you to go and create your own taste. The beauty of cooking Indian food at home is that the taste of your dish is different every time you cook. It is not standardised like a factory product. You design your favourite taste yourself.”|

As with Unilever and McCain, East End Foods places a great deal of emphasis on its R&D process particularly when it comes to transparency in the food chain. Diligence when sourcing ingredients has become a trademark practice for the firm. “R&D is an integral part of our company,” says Deep. “Day by day, the ingredients coming from abroad are being looked at with much suspicion. This is mainly due to incidents such as Sudan 1, which isn’t a natural thing but an adulteration to the food. At East End we have been taking care of how we source our ingredients and indeed monitor the product during its total journey while it is being processed before it is shipped out from the country of origin. No chances are taken where adulteration could take place. It was due to a lack of due diligence by the importers in this country that the Sudan problem arose.”

The company is particularly strict about who it trades with in an effort to reduce the possibility of contamination, especially when considering a risk such as a nut allergen. What has surprised East End Foods is the lack of action taken by other companies to ensure no contamination in their food products. “Surprisingly, even the largest companies have not taken the trouble to do this kind of separation to ensure that their product doesn’t have the allergen in them,” warns Deep. Despite considerable cost, food sourced abroad has to pass high standards, as do all ingredients that arrive in this country. “The raw ingredients arrive in this country and then they must go through the whole paraphernalia all over again in case they have any problems that might affect the final product quality.”

The company also avoids trading with any farmers that use excessive levels of pesticide. If traces of high pesticide revenue are found on any ingredients then the responsible farm’s name is struck off and the company will not work with them. Following these working methods guarantees that the company’s food is safe and of a high quality, and is therefore a considerable attraction for consumers and potential trading partners.

Futuristic food

Healthy eating is one trend unlikely to be simply a flash in the pan, and therefore manufacturers will almost certainly be influenced very much by this in the future. “Food must have taste, flavour and nutritional value,” emphasises Deep. “Food with the right energies and vitamins is important.”

The same philosophy is also shared by Unilever although it also believes that the consumers plays an important part in ensuring they also lead an all-round healthy lifestyle and eat a balanced diet. “When I look into the future, I think we will move more and more towards more ‘naturalness’ and better balanced food,” predicts Herman Van Herterijck. “Obesity, cardiovascular diseases are an increasing problem all over the world. The food industry can do a lot to help by launching products with less fat and salt. In our case we are helping our customers (Restaurants, Hotels, Canteens) with more healthy cooking, healthy menu creations. However, last but not least it is up to the consumer himself to eat more healthily.”

McCain is also committed to introducing healthier alternatives. These include a new pizza, which has a ‘best of both’ base so it has added fibre and wheat germ, but will taste similar to the original less healthy version. They are also introducing a range of products made with sunflower oil and with reduced salt and fat levels called Alternatives.

European consumers are hungry for new products, so it is essential that food manufacturers continue to innovate and bring exiting, creative and healthy dishes to our dinner tables. Hopefully, the healthy eating trend will also act as a much-needed catalyst for more R&D investment throughout the whole industry.


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