Case studies: product development in the food system The four basic stages in the PD Process are the same for all food product development, but there are significant differences in the activities, techniques and timings for new product development in the primary production, industrial food processing, and food manufacturing industries Primary productions product development is based on either a breeding process from cultivated varieties or capturing a new species from the wild. The development of new plants, animals and fish takes a great deal of time and depends on times of growing and harvesting. There can be a general product concept based on perceived consumer or industrial wants and needs, and on echnical knowledge to identify the possible parents for the new varieties. But it takes generations to develop the suitable variants. This is described in the first Case Study on starting a new apple variety. The industrial ambience is of a farmers'cooperative fruit processing and exporting enterprise with a national horticultural research institution. The second Case Study looks at another fresh fruit project, on mangoes. This time the emphasis is strongly on the consumer,using statistical and other quantitative techniques to build up the consumers preference image, and then to use this consumer image and information in assessing current varieties, and moving towards improvements This is in the framework of government/university research, a national growers organisation and private exporters and marketers Industrial food processings product development is very strongly processing based, both in the ingredient supplying and the buying companies. Food manufacture is usually directed towards providing a wide variety of products for consumers, which is continually changing. There are major differences between the activities in the PD Process for industrial and consumer products, as shown Fg.7.1
The four basic stages in the PD Process are the same for all food product development, but there are significant differences in the activities, techniques and timings for new product development in the primary production, industrial food processing, and food manufacturing industries. Primary production’s product development is based on either a breeding process from cultivated varieties or capturing a new species from the wild. The development of new plants, animals and fish takes a great deal of time and depends on times of growing and harvesting. There can be a general product concept based on perceived consumer or industrial wants and needs, and on technical knowledge to identify the possible parents for the new varieties. But it takes generations to develop the suitable variants. This is described in the first Case Study on starting a new apple variety. The industrial ambience is of a farmers’ cooperative fruit processing and exporting enterprise working with a national horticultural research institution. The second Case Study looks at another fresh fruit project, on mangoes. This time the emphasis is strongly on the consumer, using statistical and other quantitative techniques to build up the consumers’ preference image, and then to use this consumer image and information in assessing current varieties, and moving towards improvements. This is in the framework of government/university research, a national growers’ organisation and private exporters and marketers. Industrial food processing’s product development is very strongly processingbased, both in the ingredient supplying and the buying companies. Food manufacture is usually directed towards providing a wide variety of products for consumers, which is continually changing. There are major differences between the activities in the PD Process for industrial and consumer products, as shown in Fig. 7.1. 7 Case studies: product development in the food system
318 Food product development Project sta Consumer product Consumer uniqueness, excitement Project aim Objectives and constraints specifications Product strategy Product concept Consumer testing Product design Process development Equipment design Plant modifications Protective packaging Aesthetic packaging commercialisation Precise specifications Product launch and post-launch evaluation industrial for market segment Fig. 7.1 PD activities for consumer and industrial products( From Earle and Earle, Building the Future on New ProductS, C LFRA Ltd, 2000, by permission of Leatherhead The industrial product, a food ingredient, is usually developed in collaboration with the processors or manufacturers who are going to use the ingredient in the production of their product. These companies may provide the product design specifications or may indicate some of the qualities they need therefore the PD Process is highly concentrated on process development and the customer does the field-testing. This is illustrated in the third Case Study in which development of an ingredient, a whey protein isolate, sophisticated both in its processing and in its market, is described. Research is carried out by an industry-wide research institute working with a university and a large farmers cooperative dairy company and dairy marketing organisation. The fourth Case Study is the development of a consumer product, a new variety of sauces. The development was to establish a new product platform with a number of individual lines, in a large factory unit of a multinational food manufacturing company, and to sell these sauces initially locally, and then for export to major international markets. This product development was totally private enterprise In studying these case studies, differences in activities in the four stages of the PD Process can be seen, caused by
The industrial product, a food ingredient, is usually developed in collaboration with the processors or manufacturers who are going to use the ingredient in the production of their product. These companies may provide the product design specifications or may indicate some of the qualities they need; therefore the PD Process is highly concentrated on process development and the customer does the field-testing. This is illustrated in the third Case Study in which development of an ingredient, a whey protein isolate, sophisticated both in its processing and in its market, is described. Research is carried out by an industry-wide research institute working with a university and a large farmers’ cooperative dairy company and dairy marketing organisation. The fourth Case Study is the development of a consumer product, a new variety of sauces. The development was to establish a new product platform with a number of individual lines, in a large factory unit of a multinational food manufacturing company, and to sell these sauces initially locally, and then for export to major international markets. This product development was totally private enterprise. In studying these case studies, differences in activities in the four stages of the PD Process can be seen, caused by: Fig. 7.1 PD activities for consumer and industrial products (From Earle and Earle, Building the Future on New Products, LFRA Ltd, 2000, by permission of Leatherhead Food RA, Leatherhead, UK). 318 Food product development
Case studies: product development in the food system 319 markets for which the products are designed technology available and used time taken for product development; costs of product develop priorities set by the various parts of the food system The Case Studies cannot be taken as typical of PD Processes because each has its own special features, but they do illustrate generic features 7.1 Primary production: creating a new apple variety Why does a consumer choose a particular apple and buy it, or indeed choose an apple at all rather than a pear or a plum? Maybe because it looks bright and attractive, maybe because it looks fresh and crisp, it is available or cheap, or it looks much the same as it always has and earlier experience was favourable. Or maybe because, over and above lots of positive attributes, it is novel and cries out to be tried. And then having bought it, if eating impressions are favourable and it is indeed appealing in taste, flavour and crispness, then the favourable image is retained and it is the variety that goes on being bought especially if the apple is distinctive. So in the striving and seeking to secure and gain market share there is a great potential premium from a desirable new variety 7.1.1 Product development for a new apple The area for product development was first identified and then the possible parents chosen. In the next generation, there were many variations, screened on technical analysis of product qualities such as sensory characteristics, nutritional value, composi- tion, use, safety production qualities such as production difficulties/ease, disease resistance handling qualities such as deterioration after harvesting and on storage The cultivars in the first generation were screened, and the most suitable for further development chosen for growing in the next season. This further generation grown in the next season was again screened. This time, not only was there technical screening but also the production and marketing experts selected for suitability for production and marketing. This growing and screening took several generations and significant time, in the order of years. On reduction to a few selections, the qualities were related to the market conditions at that time While senior people in the company made the final selections, they were assisted and guided by consumers and distribution/retail customers who evaluated the growers/farmers and then the first crop test marketed on a small scalp ? mercial hew fresh products. Production was started, multiplied with con
• markets for which the products are designed; • technology available and used; • time taken for product development; • costs of product development; • priorities set by the various parts of the food system. The Case Studies cannot be taken as typical of PD Processes because each has its own special features, but they do illustrate generic features. 7.1 Primary production: creating a new apple variety Why does a consumer choose a particular apple and buy it, or indeed choose an apple at all rather than a pear or a plum? Maybe because it looks bright and attractive, maybe because it looks fresh and crisp, it is available or cheap, or it looks much the same as it always has and earlier experience was favourable. Or maybe because, over and above lots of positive attributes, it is novel and cries out to be tried. And then having bought it, if eating impressions are favourable and it is indeed appealing in taste, flavour and crispness, then the favourable image is retained and it is the variety that goes on being bought especially if the apple is distinctive. So in the striving and seeking to secure and gain market share there is a great potential premium from a desirable new variety. 7.1.1 Product development for a new apple The area for product development was first identified and then the possible parents chosen. In the next generation, there were many variations, screened on technical analysis of: • product qualities such as sensory characteristics, nutritional value, composition, use, safety; • production qualities such as production difficulties/ease, disease resistance, yields; • handling qualities such as deterioration after harvesting and on storage. The cultivars in the first generation were screened, and the most suitable for further development chosen for growing in the next season. This further generation grown in the next season was again screened. This time, not only was there technical screening but also the production and marketing experts selected for suitability for production and marketing. This growing and screening took several generations and significant time, in the order of years. On reduction to a few selections, the qualities were related to the market conditions at that time. While senior people in the company made the final selections, they were assisted and guided by consumers and distribution/retail customers who evaluated the new fresh products. Production was started, multiplied with commercial growers/farmers and then the first crop test marketed on a small scale. Case studies: product development in the food system 319
320 Food product development Creating a new and successful horticultural variety is a long search through genetic possibility, inheritance, disease resistance, keeping quality, followed by the trade-offs of one attribute with another; and so all of these aspects had to be gone through. This went on over many generations of seedlings which, after the final selection was narrowed right down, has then to grow to trees and bear and proliferate. So the exercise was very much one of seeking to establish just what it is that the target consumers ask from their ideal apple, and then trying to match this against what nature, aided by the skill of the plant breeder, will allow All this took 15 years or so, making it an especially long-term undertaking. It is also an expensive one in that beyond the visible costs is the inevitability that money risked and spent now can receive no return for all those years. As a project this injects its own special features, while at the same time all the standard routines are still just as necessary as in any other development of a new New Zealand for many years had a 'single desk exporter and marketer of bulk apples working cooperatively for all of the apple growers. The Horticulture and Food Research Institute of New Zealand Ltd(Box 7. 1)carried out its variet development and licensed ENZA as a company to market its varieties Box 7.1 Horticulture and Food Research Institute (HortResearch) HortResearch is extensively involved in developing new plant varieties. We have expert breeding capability in a range of fruiting, ornamental, and agro. forestry crops. Our plant breeders work with industry in order to develop new varieties and rootstocks to provide cultural or market advantages for growers These activities are backed by extensive in-house scientific capability in sensory science, genetics and plant physiology to assist in making selections to suit the environments, end uses and tastes of different cultural groups both within New Zealand and around the world The fruit breeding programmes aim for variety, flavour, texture, storage life, appearance, productivity, pest and disease resistance and climatic adaptation HortResearch is a world leader in apple cultivar development. Examples of our success are the Pacific apple series (Pacific Rose, "Pacific Beauty,,and Pacific Queen)marketed by ENZAFRUIT This new variety development is also well supported by technical back up in orchard production, integrated pest management, postharvest handling and associated capabilities within Hort Research Source: Adapted from a publicity letter from Dr lan Warrington, CEO, HortResearch
Creating a new and successful horticultural variety is a long search through genetic possibility, inheritance, disease resistance, keeping quality, followed by the trade-offs of one attribute with another; and so all of these aspects had to be gone through. This went on over many generations of seedlings which, after the final selection was narrowed right down, has then to grow to trees and bear and proliferate. So the exercise was very much one of seeking to establish just what it is that the target consumers ask from their ideal apple, and then trying to match this against what nature, aided by the skill of the plant breeder, will allow. All this took 15 years or so, making it an especially long-term undertaking. It is also an expensive one in that beyond the visible costs is the inevitability that money risked and spent now can receive no return for all those years. As a project this injects its own special features, while at the same time all the standard routines are still just as necessary as in any other development of a new product. New Zealand for many years had a ‘single desk’ exporter and marketer of bulk apples working cooperatively for all of the apple growers. The Horticulture and Food Research Institute of New Zealand Ltd (Box 7.1) carried out its variety development and licensed ENZA as a company to market its varieties. Box 7.1 Horticulture and Food Research Institute (HortResearch) HortResearch is extensively involved in developing new plant varieties. We have expert breeding capability in a range of fruiting, ornamental, and agroforestry crops. Our plant breeders work with industry in order to develop new varieties and rootstocks to provide cultural or market advantages for growers. These activities are backed by extensive in-house scientific capability in sensory science, genetics and plant physiology to assist in making selections to suit the environments, end uses and tastes of different cultural groups both within New Zealand and around the world. The fruit breeding programmes aim for variety, flavour, texture, storage life, appearance, productivity, pest and disease resistance and climatic adaptation. HortResearch is a world leader in apple cultivar development. Examples of our success are the Pacific apple series (‘Pacific Rose’, ‘Pacific Beauty’, and ‘Pacific Queen’) marketed by ENZAFRUIT. This new variety development is also well supported by technical back up in orchard production, integrated pest management, postharvest handling and associated capabilities within HortResearch. Source: Adapted from a publicity letter from Dr Ian Warrington, CEO, HortResearch. 320 Food product development
Case studies: product development in the food system 321 Table 7.1 Timetable for the development of Pacific Rose apples Ist cycle(product strategy) from 'Pacific' markets of ne blush apples 6 months Grown in glasshouses 20,000 seedlings oDen 8000 seedlings Selected on resistance toblackspot'and 2nd cycle (product design and process development) Grown in fruit selection orchards 5000 seedlings 4 years Selected on fruit characteristics Grown on two sites 100-200 seedlings Selected by plant breeders, pomologists, 2 years on fruit and growing characteristics Judged for market suitability 10 seedlings 3rd cycle(product commercialisation and product launch) I variety selected 2 Growing expanded Seedlings distributed to growers 1000 cartons 1994 Pomology developed, storage trials 5000 cartons 1995 Multiplied by commercial breeders/growers 22 000 cartons 1996 Commercial production 104. 000 cartons The stages and approximate timing of the development of Pacific Rose are shown in Table 7. 1. This indicates the very extended time scale, arising from the intervals necessary for the seedlings of each successive generation to grow so that their fruit can be evaluated Plant breeders normally talk about development cycles and these have been arbitrarily related to the PD Process. Because of the nature of developing apples there is not an exact date for launch, but the market is expanded in a rolling launch as the fruit becomes available 7.1.2 Stage 1: Product strategy Management decided that the existing varieties had been on the market for long nough, and to provide an edge and a stimulus a new variety was needed. To some extent this is a continuing search. But it gained added stimulus as the older varieties were a bit stale, and market share would surely dwindle as the ompetition sought to kindle its own novelties. Apart from the very broad oncept, a new apple, plant breeders thought back over the whole gamut of experience with apple varieties. They tried to single out characteristics that
The stages and approximate timing of the development of Pacific Rose are shown in Table 7.1. This indicates the very extended time scale, arising from the intervals necessary for the seedlings of each successive generation to grow so that their fruit can be evaluated. Plant breeders normally talk about development cycles and these have been arbitrarily related to the PD Process. Because of the nature of developing apples there is not an exact date for launch, but the market is expanded in a rolling launch as the fruit becomes available. 7.1.2 Stage 1: Product strategy Management decided that the existing varieties had been on the market for long enough, and to provide an edge and a stimulus a new variety was needed. To some extent this is a continuing search. But it gained added stimulus as the older varieties were a bit stale, and market share would surely dwindle as the competition sought to kindle its own novelties. Apart from the very broad concept, a new apple, plant breeders thought back over the whole gamut of experience with apple varieties. They tried to single out characteristics that Table 7.1 Timetable for the development of Pacific Rose apples 1st cycle (product strategy) Discussion from ‘Pacific’ markets of need for blush apples 6 months Grown in glasshouses 20,000 seedlings Expert selection 18 months Grown in open ground 8000 seedlings Selected on resistance to ‘blackspot’ and ‘powdery mildew’ 2nd cycle (product design and process development) Grown in fruit selection orchards 5000 seedlings 4 years Selected on fruit characteristics Grown on two sites 100–200 seedlings Selected by plant breeders, pomologists, 2 years on fruit and growing characteristics Judged for market suitability 10 seedlings 3rd cycle (product commercialisation and product launch) 1 variety selected 2 years Growing expanded 1993 Seedlings distributed to growers 1000 cartons 1994 Pomology developed, storage trials 5000 cartons 1995 Multiplied by commercial breeders/growers 22,000 cartons 1996 Commercial production 104,000 cartons Case studies: product development in the food system 321
322 Food product development might be applied usefully to build a new creation. This was reinforced by market sights such as possible gaps in present offerings, fashions as revealed by sales trends, problems exhibited by present varieties, competitors activities, and so on. They did not know exactly what was wanted but formulated a group of attributes, built on a range of good qualities, and sought to assess these and maximise them by selection from trial seedlings of defined types(cultivars) For example appearance is a major purchase determinant, and so a target colour and configuration were selected. In this case it was decided that the new apple should be a"blush'apple, one in which red and yellow colorations shade into one another rather than uniform colour or stripes. Decisions were taken of targets for sweetness, acidity, and acid/sugar ratio, flavour, fruit shape, texture and crispness. Added are those properties that are central concerns to the growers and handlers such as: disease resistance, yield and size consistency, and keeping and storage qualities, and these must be optimised for all A major consideration was the time scale, commitment to perhaps 10-15 years of work overall to build a new variety to commercial market success 7.1.3 Stage 2: Product design and process development The first cycle of selection was rapid screening of seedlings, from about 20,000 in glasshouses(six months)reduced to 8000 in the open ground nursery through selection for resistance to blackspot disease(18 months In the second cycle, about 5000 per year, after selection for resistance to powdery mildew, were planted out in the fruit selection orchards (4 years about 2% were selected for fruit characteristics and these were then carried forward to the next cycle. A selection index was set up, and made into a scoring regime. The various desirable attributes were first established and then scored by members of the team as illustrated in Table 7.2, generally on a scale of one to ten, with ten being most desirable. Table 7.2 shows the scores for one apple cultivar. All those cultivars with an overall quality rating"less than seven, when aggregated and averaged, were discarded In this particular case, the designation moved from a concept, to a tree number, to the final name Pacific Rose(technically the variety name was Sciros marketed as Pacific Rose). The particular chosen characteristic factors, plus the desirable and more general factors, were pursued through all the generations and the selections. Some of these factors had sometimes, and regrettably, to be traded off to a degree as the selections evolved. To cope with such problems alue hierarchies were established. and used to guide selection and reviewed from time to time 7.1.4 Stage 3: Product commercialisation As well as consumer and grower characteristics, consideration had also to be iven to vital genetic aspects. These included factors such as the heritability of selected attributes such as mildew resistance. because at some stage large
might be applied usefully to build a new creation. This was reinforced by market insights such as possible gaps in present offerings, fashions as revealed by sales trends, problems exhibited by present varieties, competitors’ activities, and so on. They did not know exactly what was wanted but formulated a group of attributes, built on a range of good qualities, and sought to assess these and maximise them by selection from trial seedlings of defined types (cultivars). For example appearance is a major purchase determinant, and so a target colour and configuration were selected. In this case it was decided that the new apple should be a ‘blush’ apple, one in which red and yellow colorations shade into one another rather than uniform colour or stripes. Decisions were taken of targets for sweetness, acidity, and acid/sugar ratio, flavour, fruit shape, texture and crispness. Added are those properties that are central concerns to the growers and handlers such as: disease resistance, yield and size consistency, and keeping and storage qualities, and these must be optimised for all apples. A major consideration was the time scale, commitment to perhaps 10–15 years of work overall to build a new variety to commercial market success. 7.1.3 Stage 2: Product design and process development The first cycle of selection was rapid screening of seedlings, from about 20,000 in glasshouses (six months) reduced to 8000 in the open ground nursery through selection for resistance to blackspot disease (18 months). In the second cycle, about 5000 per year, after selection for resistance to powdery mildew, were planted out in the fruit selection orchards (4 years). About 2% were selected for fruit characteristics and these were then carried forward to the next cycle. A selection index was set up, and made into a scoring regime. The various desirable attributes were first established and then scored by members of the team as illustrated in Table 7.2, generally on a scale of one to ten, with ten being most desirable. Table 7.2 shows the scores for one apple cultivar. All those cultivars with an ‘overall quality rating’ less than seven, when aggregated and averaged, were discarded. In this particular case, the designation moved from a concept, to a tree number, to the final name Pacific Rose (technically the variety name was Sciros, marketed as Pacific Rose). The particular chosen characteristic factors, plus the desirable and more general factors, were pursued through all the generations and the selections. Some of these factors had sometimes, and regrettably, to be traded off to a degree as the selections evolved. To cope with such problems value hierarchies were established, and used to guide selection, and reviewed from time to time. 7.1.4 Stage 3: Product commercialisation As well as consumer and grower characteristics, consideration had also to be given to vital genetic aspects. These included factors such as the heritability of selected attributes such as mildew resistance, because at some stage large 322 Food product development
Case studies: product development in the food system 323 Table 7.2 BreedBase Report Seedling ro4T119 Crop type Apple uit sh Background colour Yellow Overcolor Colour pattern Colour intensity Light L Lenticel ICUoUs Flesh ream Flesh firmness Soft 」Hard None Flesh grittiness Flesh flavour 8 Very juicy Sourness High Aroma Delicate Rich Astringent High Skin thickness Thin Thick Skin greasiness Dry L 2 Greasy Skin texture Non-chewy Skin flavour Harvest Date 12/3/96 Storage Day 76g Maturity Eating Quality Very go Attractiveness Overall quality Very good Comments Note: The numbers and comments inserted represent assessment of a particular seedling Source: From HortResearch, Goddard Lane, Havelock North, New Zealand
Table 7.2 BreedBase Report Family A040 Seedling R04T119 Crop type Apple Fruit shape Flat Colour Background colour Yellow Overcolour Red % Overcolour 0% |_________3____________________| 100% Colour pattern Stripe Colour intensity Light |______2_______________________| Heavy Lenticel: Inconspicuous |_________3____________________| Very Conspicuous Flesh Flesh colour Cream Flesh firmness Soft |_____________________7________| Hard Flesh crispness None |_____________________7________| Very Flesh grittiness Soft |0_____________________________| Hard Flesh flavour Juicy Dry |________________________8_____| Very juicy Sweetness Nil |_______________5______________| High Sourness Nil |_______________5______________| High Aroma Delicate |_______________5______________| Rich Astringency Nil |0_____________________________| High Bitterness Nil |0_____________________________| High Skin Skin thickness Thin |_______________5______________| Thick Skin greasiness Dry |______2_______________________| Greasy Skin texture Non-chewy |____________4_________________| Chewy Skin flavour Not significant Harvest Date 12/3/96 Storage Days 107 Weight 176 g Maturity OK Eating Quality Very good Attractiveness Poor |_____________________7________| Very good Overall quality Very good Comments Note: The numbers and comments inserted represent assessment of a particular seedling. Source: From HortResearch, Goddard Lane, Havelock North, New Zealand. Case studies: product development in the food system 323
324 Food product development numbers of plants will have to be propagated from the successful selection and then established and grown in orchards. Although the key participants were the plant breeders, it was thought to be very important that the scoring be done by a wider-based group. For practical reasons in the initial stages it tended to be a laboratory team but as soon as the earliest stages were completed a wider group was used. The work was monotonous and repetitive so that team numbers are limited but, by their working to a standard scoring system, numbers of selected candidates were reduced to the order of one hundred For the Pacific Rose, these selections were then grown in duplicate on two sites and the product apples held 100 days at 0C in a cool store and for 7 days at ambient temperatures, to observe storage characteristics. Meetings were held bringing in other fruit scientists and ENZA staff to widen the vision, and including fruitgrowers and supermarket operators to seek feedback, but still on a Then the third cycle the best 10 out of 200 were selected for consumer trials and finally characteristic clusters were assembled where 75% or more of the panel opted for a particular attribute, such as acidity combined with Finally, one variety was chosen by senior management for launching. Trials were then run with selected supermarkets, taking about a thousand cases and trying the market (3-5 years). Pomology work was accelerated, assessing the required optimum growing environment and the hazards. Another important consideration at this stage was naming. The final choice, after a good deal of investigating and agonising, was Pacific Rose. This name seemed to have very many positive overtones and manageable problems. ( After its endorsement by the market, it became the forerunner of a ' platform of similar apples as the general name and style were clearly found to be very attractive and distinctive. &e During the last two years or so of the commercialisation phase, as well as ng checked out locally, small parcels of fruit were dispatched on a trial basis to agents overseas. enza has main agents in the uk, belgium for the rest of Europe, the USA, and in Singapore for the Asian market. These were used for distribution, and also for market intelligence and feedback. The message from these people was very positive. In fact from the marketing viewpoint it was somewhat too positive and was too widely disseminated. This generated an enthusiasm among growers in particular, which stimulated plantings. So in time production threatened to flood the local market and in turn to push the overseas market beyond its powers of initial absorption 7. 1. 5 Stage 4: Product launch and evaluation Finally the trees of the selected variety were multiplied to the extent that commercial growers could enter into production of the quantities needed for itially the launch, and then be ready for the full-scale farming, of a successful new variety. Commercial quantities of the new apples were dispatched to the overseas agents. They in turn fed them to wholesalers and retailers, initially
numbers of plants will have to be propagated from the successful selection and then established and grown in orchards. Although the key participants were the plant breeders, it was thought to be very important that the scoring be done by a wider-based group. For practical reasons in the initial stages it tended to be a laboratory team but as soon as the earliest stages were completed a wider group was used. The work was monotonous and repetitive so that team numbers are limited but, by their working to a standard scoring system, numbers of selected candidates were reduced to the order of one hundred. For the Pacific Rose, these selections were then grown in duplicate on two sites and the product apples held 100 days at 0 ºC in a cool store and for 7 days at ambient temperatures, to observe storage characteristics. Meetings were held, bringing in other fruit scientists and ENZA staff to widen the vision, and including fruitgrowers and supermarket operators to seek feedback, but still on a largely local basis. Then in the third cycle the best 10 out of 200 were selected for consumer trials and finally characteristic clusters were assembled where 75% or more of the panel opted for a particular attribute, such as acidity combined with sweetness. Finally, one variety was chosen by senior management for launching. Trials were then run with selected supermarkets, taking about a thousand cases and trying the market (3–5 years). Pomology work was accelerated, assessing the required optimum growing environment and the hazards. Another important consideration at this stage was naming. The final choice, after a good deal of investigating and agonising, was Pacific Rose. This name seemed to have very many positive overtones and manageable problems. (After its endorsement by the market, it became the forerunner of a ‘Pacific’ platform of similar apples as the general name and style were clearly found to be very attractive and distinctive.) During the last two years or so of the commercialisation phase, as well as being checked out locally, small parcels of fruit were dispatched on a trial basis to agents overseas. ENZA has main agents in the UK, Belgium for the rest of Europe, the USA, and in Singapore for the Asian market. These were used for distribution, and also for market intelligence and feedback. The message from these people was very positive. In fact from the marketing viewpoint it was somewhat too positive and was too widely disseminated. This generated an enthusiasm among growers in particular, which stimulated plantings. So in time production threatened to flood the local market and in turn to push the overseas market beyond its powers of initial absorption. 7.1.5 Stage 4: Product launch and evaluation Finally the trees of the selected variety were multiplied to the extent that commercial growers could enter into production of the quantities needed for initially the launch, and then be ready for the full-scale farming, of a successful new variety. Commercial quantities of the new apples were dispatched to the overseas agents. They in turn fed them to wholesalers and retailers, initially 324 Food product development
Case studies: product development in the food system 325 Table 7.3 Production of Pacific Rose apples (thousands of 10 kg cartons) 19921993 1995 2000 104 353 selected as those, and in those areas, likely to be most receptive. It was commented that little direct consumer testing was carried out. as results from sample trials correlated highly with agents opinions which were quicker and cheaper to obtain. The apples were then sent to the trade buyers in retail markets and supermarkets The first great hurdle was to get them on the supermarket shelves: once on, customer demonstration and tastings intensified their visibility. It was found that the most receptive area was Asia, the next North America, with the Uk a little less enthusiastic. The rest of Europe tailed with comments seeking more consistent fruit quality and more flavour. The customer balance settled to about 40% Asia, 30% North America, and of the remainder most to the UK. The quite dramatic build up of production of Pacific Rose apples is shown in Table 7.3 This also indicates the pressures that arose to move such rapidly increasing quantities through the markets It was important to seek to safeguard, as far as possil aspects of the development. So plant protection rights were sought for the variety. This essentially was so that the considerable costs of the development could be recouped and also reasonable returns made on the investments of resources and time. It became evident that this protection was significant. Even lawsuits and cloak-and-dagger stuff followed, with some overseas competitors seeking to cash in, unauthorised and without paying, on an obvious success It was evident early on that in order to maximise the returns it would be desirable to have overall control of production and marketing. Enthusiasm had brought large early production, with risks of drowning the market and on occasion prices had to be shaded to clear fruit. In hindsight this served to spread and deepen overall consumption, but at the time it looked like expensive advertising if not just losses. Closer matching of production to market would also have allowed more time for the details of growing the variety, with attention to fruit quality and consistency, those prime demands of good supermarket operators. The balance of production and demand is the great intransigent imponderable of all agriculture, and the build-up of supply of Pacific Rose created supply pressures which later variety releases will seek to reduce by closer control of the growing of new varieties Another interesting further extension of the development was to seek out, license and harmonise with selected overseas growers, particularly ones who could produce to complement New Zealand production. For example, by spreading some of the growing to the Northern Hemisphere, year-round production was organised so as to even-out supply to satisfy and sustain customer demand
selected as those, and in those areas, likely to be most receptive. It was commented that little direct consumer testing was carried out, as results from sample trials correlated highly with agents’ opinions which were quicker and cheaper to obtain. The apples were then sent to the trade buyers in retail markets and supermarkets. The first great hurdle was to get them on the supermarket shelves: once on, customer demonstration and tastings intensified their visibility. It was found that the most receptive area was Asia, the next North America, with the UK a little less enthusiastic. The rest of Europe tailed with comments seeking more consistent fruit quality and more flavour. The customer balance settled to about 40% Asia, 30% North America, and of the remainder most to the UK. The quite dramatic build up of production of Pacific Rose apples is shown in Table 7.3. This also indicates the pressures that arose to move such rapidly increasing quantities through the markets. It was important to seek to safeguard, as far as possible, the commercial aspects of the development. So plant protection rights were sought for the variety. This essentially was so that the considerable costs of the development could be recouped and also reasonable returns made on the investments of resources and time. It became evident that this protection was significant. Even lawsuits and cloak-and-dagger stuff followed, with some overseas competitors seeking to cash in, unauthorised and without paying, on an obvious success. It was evident early on that in order to maximise the returns it would be desirable to have overall control of production and marketing. Enthusiasm had brought large early production, with risks of drowning the market and on occasion prices had to be shaded to clear fruit. In hindsight this served to spread and deepen overall consumption, but at the time it looked like expensive advertising if not just losses. Closer matching of production to market would also have allowed more time for the details of growing the variety, with attention to fruit quality and consistency, those prime demands of good supermarket operators. The balance of production and demand is the great intransigent imponderable of all agriculture, and the build-up of supply of Pacific Rose created supply pressures which later variety releases will seek to reduce by closer control of the growing of new varieties. Another interesting further extension of the development was to seek out, license and harmonise with selected overseas growers, particularly ones who could produce to complement New Zealand production. For example, by spreading some of the growing to the Northern Hemisphere, year-round production was organised so as to even-out supply to satisfy and sustain customer demand. Table 7.3 Production of Pacific Rose apples (thousands of 10 kg cartons) 1992 1993 1994 1995 1996 1997 1998 1999 2000 0 1 5 22 104 120 173 353 950 Case studies: product development in the food system 325
326 Food product development Later, feedback from the markets was used as a base for the breeding of further members of the variety, and so to build the offering and the acceptance and the sales over an extended platform of similar, but distinguishable, apples The platform name, 'Pacific' was retained, moving to "Pacific Queen'and Pacific Beauty' to differentiate newcomers as they appeared Domestic sales were built up simultaneously, but though important they were only part of the overall business of the industry. They could also be used vehicle for sizes, shapes and configurations less attractive to the main line demand which could therefore be selective of premium fruit. So a national and international market was established which became considerable and satisfac This example illustrates how a substantially long-term development of a product with particular problems, those of setting up and evaluating a new horticultural variety, still follows the general principles of product development One of the problems in developing new plant products for the consumer market is the input of the consumers. At one time the marketing people and the breeders decided that they knew what the market wanted and therefore all testing up to the small test market was done by them or other people in the research station and the company. In recent years, great efforts have been made to bring the consumers in earlier. Obviously they cannot test the many hundreds of samples, but they can determine the concept for the new product. Therefore it is to them that the greatest effort is directed, trying to understand as precisely as possible what it is that they might want from a variety which still has to be produced Then there is the slow process of selecting and building up fruit, recalling the time consumed between selecting and actually growing the next generation of Think break 1. Consumers determine market success -reflect on this statement, its accuracy and its implications for fresh fruit product development 2. Consider carefully and weigh the relative advantages and disadvantages of using available local and expert opinion, contrasted with randomised consumer research, in exploring the required eating characteristics, flavour and appearance in the PD Process for fresh fruit 3. This study is of a very long-term exercise for a corporate entity, with increasingly limited product flexibility as the development progresses. What are the implica tions of this for product development management, organisation and operation? 4. How important do you think metrication is as a determinant in decision making in the pd process? Therefore because metrication is often difficult and sometimes very difficult, how much management and technical effort should be devoted to it relative to the exercise of less formal and more qualitative judgement? Short term for a product? Long term for an organisation?
Later, feedback from the markets was used as a base for the breeding of further members of the variety, and so to build the offering and the acceptance and the sales over an extended platform of similar, but distinguishable, apples. The platform name, ‘Pacific’ was retained, moving to ‘Pacific Queen’ and ‘Pacific Beauty’ to differentiate newcomers as they appeared. Domestic sales were built up simultaneously, but though important they were only part of the overall business of the industry. They could also be used as a vehicle for sizes, shapes and configurations less attractive to the main line demand which could therefore be selective of premium fruit. So a national and international market was established which became considerable and satisfactory. This example illustrates how a substantially long-term development of a product with particular problems, those of setting up and evaluating a new horticultural variety, still follows the general principles of product development. One of the problems in developing new plant products for the consumer market is the input of the consumers. At one time the marketing people and the breeders decided that they knew what the market wanted and therefore all testing up to the small test market was done by them or other people in the research station and the company. In recent years, great efforts have been made to bring the consumers in earlier. Obviously they cannot test the many hundreds of samples, but they can determine the concept for the new product. Therefore it is to them that the greatest effort is directed, trying to understand as precisely as possible what it is that they might want from a variety which still has to be produced. Then there is the slow process of selecting and building up fruit, recalling the time consumed between selecting and actually growing the next generation of apple. Think break 1. Consumers determine market success – reflect on this statement, its accuracy and its implications for fresh fruit product development. 2. Consider carefully and weigh the relative advantages and disadvantages of using available local and expert opinion, contrasted with randomised consumer research, in exploring the required eating characteristics, flavour and appearance in the PD Process for fresh fruit. 3. This study is of a very long-term exercise for a corporate entity, with increasingly limited product flexibility as the development progresses. What are the implications of this for product development management, organisation and operation? 4. How important do you think metrication is as a determinant in decision making in the PD Process? Therefore, because metrication is often difficult, and sometimes very difficult, how much management and technical effort should be devoted to it relative to the exercise of less formal and more qualitative judgement? Short term for a product? Long term for an organisation? 326 Food product development
