Joanna Cosgrove08.02.10
Tart cherries fall squarely into the superfruit category but are decidedly lower profile than sweeter-fleshed cherries. In an effort to determine how to increase the appeal and reach of tart cherries, the Lansing, MI-based Cherry Marketing Institute (CMI) recently polled senior food industry executives to get to the bottom of the factors that most influence their purchasing decisions. As a result, they came away with a deeper understanding of why certain ingredients make it into products that appear on grocery shelves and restaurant menus.
“The ingredient decision is absolutely critical for food and specifically fruit marketers,” said Jeff Manning, chief marketing officer for CMI. “Fruits like tart cherries, blueberries, cranberries and dried plums depend heavily on ingredient use by food manufacturers and food service operators. Yet few study the buyers who make the all important ingredient selections.”
The study, managed by Nina Diamond, PhD of the B/R/S Group, involved in-depth phone interviews with senior research and development executives at 17 major food manufacturers and food service operators. In the end, specifics varied however several common themes emerged.
The first theme confirmed that the “Stage-Gate” process continues to be a powerful influence. According to CMI, the Stage-Gate process was conceived by new product development researchers decades ago. The approach involves five stages, each associated with a set of activities and deliverables executed by a multifunctional team. Every stage is followed by a review that involves senior management (the “Gates”). The process is designed to maximize the productivity of company resources and minimize the risk of marketplace failure.
The second theme uncovered by CMI was that R&D drives most ingredient decisions. While the marketing function provides broad direction and support, and may lead the multifunctional new product management team, R&D remains the key to determining which ingredients are used and in what proportions and combinations. It is R&D’s job to deliver products that fulfill the promise made in the product concept statement.
The growing appeal of the superfruit phenomenon was another theme. “Because health and wellness are key consumer concerns, food innovators are aggressively developing new products containing fruit—always on the lookout for emerging ‘superfruits,’” CMI found. “The appeal of many fruits that have been in favor during the past few years has faded and new, on-trend fruits are being sought.”
Interestingly, CMI also discovered that while the science supporting an ingredient is important, it’s seldom a determining factor.“One reason for this attitude is that hard nutrition claims are under immense scrutiny,” CMI reported. “More critical is that an ingredient is perceived to be healthy—as well as flavorful—by consumers.”
In terms of pricing, CMI found that a premium price can be justified if an ingredient helps deliver the concept. “This reflects the industry’s consumer focus and the fact that most juices and snacks are blends, containing multiple fruits,” the group said. “The key is to get the taste, color and texture right for the new product concept and the consumer.”
The views on pricing were particularly surprising to Mr. Manning. “Broad consumer awareness and preference trumped all, but, flavor, supply, consistency and physical properties were all named as important,” he said. “Price was a factor, of course, but is considered much further down in the product development process than we first assumed.”
And when queried about cherries, study participants viewed tart cherries as “great tasting, high in quality, nutritious, and an ‘emerging’ food ingredient.” Many considered cherries to be underutilized in comparison other fruit ingredients, but on a clear upward trajectory.
“While successful food companies and brands spend substantial time and energy researching who ultimately buys and consumes their products, far fewer study the industrial buyers who make the ingredient decision, despite the fact that for many category marketers (beef, eggs, dairy, produce) the ingredient decision is absolutely crucial,” commented Mr. Manning. “Many rush into product development, spending hundreds of thousands of dollars on concepts, nomenclature and packaging without a clear understanding of what the ingredient decisionmaker truly wants. By understanding the factors that underly ingredient decisions, we have a better understanding of how to ultimately bring more tart cherry products to market. Overall, the results have far reaching implications for any food ingredient marketer.”
Overall, Mr. Manning said he hoped that this research might facilitate a product innovation program that could help bring more cherry products to market by understanding what influences fruit ingredient decisions for new product development. “Specifically, this means tailoring our marketing and communications efforts to better impact ingredient decisionmakers—from messaging (availability) to showcasing broad consumer appeal and what’s trending to forging strategic partnerships that highlight unique opportunities for cherries,” he said.
CMI’s study was funded in part by a grant from the State of Utah.
