Part
3, Chapter 7
Case studies: product development in the food system
7.3.4 Stage 4: Product launch and evaluation
From late 1995 sales promotion information was fed to the chosen market. This was essentially beverage manufacturers. It was expedited through the close relations the NZ Dairy Board subsidiaries overseas had built up with leading beverage manufacturers and with major food processors. Shipments of product were started in about October 1995 so that commercial quantities would be available to US customers in 1996. A major promotion was as a featured product at the (US) Institute of Food Technologists' annual meeting at New Orleans in March 1996 where a group from New Zealand, including technical and marketing staff, was available to explain and demonstrate the product. There was extensive advertising in the food trade literature, and in handouts (see Box
7.3).
Box 7.3 New Zealand Milk Products
unveils whey protein isolates
To meet the growing interest in and demand for whey protein isolates, New Zealand Milk Products will be introducing the whey of the future at IFT (Institute of Food Technologists' Annual Meeting): ALACEN Whey Protein Isolates.
ALACEN Whey Protein Isolates are more than 90% high-purity protein, with less than 1% fat. In addition to superb nutrition, they provide excellent functionality - complete solubility plus acid and heat stability with a bland flavour. Clear RTD beverages benefit from ALACEN Whey Protein Isolates' unique transparency in solution, and foods requiring stringent nutritional labelling benefit from the WPI's low fat and low lactose levels. The instant versions of ALACEN Whey Protein Isolates are ideal for applications such as dry-mix beverages.
Source: Adapted from New Zealand Milk Products NEWZ.
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An article on technical features of the product appeared in the American journal, The
Food Technologist, in February 1996, setting out the background to the manufacture, and explaining the functional properties of the product, particularly those that were seen to offer major advantages.
The results of this were seen in the sales of 100 tonnes, all of the available product, in 1996. Confidence from this success led to the stepping up of production facilities and capacity towards 700 tonnes per annum at the first site, and the planning of expansions to 1000 tonnes annually. Financially, the returns were significant in lifting the value of standard whey protein concentrate from around NZ$4000 per tonne to around NZ$15,000 per tonne. Although the production costs were of course higher, and the development costs to this point were over NZ$1 million, the overall returns for the industry were very satisfactory from what, not too many years earlier, had been seen as almost a waste stream.
Development was continued into both product quality and manufacturing improvements.
It came from the technical product and process developments, which continued,
and was augmented by comment and experience from customers. A reliable product
was built up, with a good market. Whey protein isolate has continued to be a
successful major product. As well as being the first of other specialised whey
products for the New Zealand Dairy Board, it has, as an ingredient, itself made
possible new and innovative products for many beverage and food manufacturers..
Think
Break
1. Discuss whether this whey protein isolate product was market-
or
technology-driven. Was this important? Do you consider it made
any
difference to the development pattern? To the launch?
2. Why do you think the promotion was largely directed to food
technologists? Could other promotional targets have been usefully
added? Substituted?
3. List the major criteria you think are essential to success in the health
food market. Taking your local environment, do you think that a product
such as this one would be successful, and why? What developments in
the local culture might make it more successful?
4. What special features can you instance that distinguish food ingredient
development from that of other food products?
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