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Many new food and beverage products fail to succeed in the market. According to Nielsen, approximately 85% of new consumer packaged goods in the US do not last beyond two years of their launch. While it may be easy to attribute underperformance to the product concept, a significant number of failures stem from the way the product was developed, validated, and introduced to the market.
It’s Not Just About the Idea
While some products fail due to concept issues like the wrong flavor or price, many good ideas fail during execution. Factors such as delayed market entry, launch errors, and compliance issues that surface late in the process can lead to the downfall of a product. These failures are preventable and typically share common root causes.
Common Execution Pitfalls
- Delayed Time to Market: When product development relies on manual hand-offs and disjointed tools, crucial time is lost, missing launch opportunities and giving competitors an edge.
- Data Disorganization: Having product information scattered across different platforms leads to version mismatches, rework, and delays in the production process.
- Last-Minute Compliance Issues: Discovering regulatory non-compliance near launch can result in costly relabeling or even product withdrawal.
- Supplier and Ingredient Challenges: Unforeseen issues with suppliers or ingredients can disrupt the launch phase, causing setbacks.
- Lack of Unified Information: When different departments work with conflicting product data, inconsistencies arise and impact the final product.
The Key to Success
Effective product development hinges on having a shared, accurate view of the product throughout its journey from conception to market. Manufacturers who utilize connected infrastructure and maintain a single source of truth for formulation management and product lifecycle management experience smoother and quicker product launches.
Pre-Launch Checklist
Prior to launching a new product, ensure that your process aligns with the following criteria:
- Centralized Product Information: Is there a unified record that all teams reference?
- Early Compliance Checks: Can regulatory issues be identified and addressed during development?
- Validated Supplier Data: Are ingredient details confirmed before finalizing the product concept?
- Team Collaboration: Are all departments working from the same data?
- Efficient Time-to-Market: Can you expedite the product launch process to meet market demands?
A negative response to any of these questions could indicate potential pitfalls that may hinder the success of a product.
Conclusion
New product failures are not solely attributed to taste preferences, timing, or luck. A significant portion of failures stem from avoidable issues related to product data and processes. Manufacturers who prioritize connected infrastructure over disjointed tools experience fewer failures, minimize waste, and successfully bring their innovative products to market.
| Erika Redaelli
Global Head — Solution Management, Regulatory and Scientific Trace One Erika Redaelli leads the regulatory and product teams at Trace One, whose AI-native PLM platform is tailored for formula-based product development in food and beverage and consumer goods, serving both manufacturers and retailers. |
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