5 Top Tips For Launching a New Food and Beverage Product

Launching a new food and beverage product comes with many challenges. And the truth is 7 out of 10 new products fail. So how what are the best strategies to adopt in order to establish a successful entry into the highly competitive food and beverage market?

1.     Focus on Forecasting

When launching a new product, scenario forecasting is a useful tactic. This is a forecasting method based on the likely minimum and maximum sales volume your product will generate. Of course higher sales volumes will typically lower the cost per unit and thus have a positive impact on your profits. Once your product has launched, forecasting software can create optimized schedules, balancing production efficiency and delivery performance for your product lines.  

2.     Remove Poor Performing Products

If you’re launching a line of products and one is failing, don’t be afraid to drop it. You should always be focused on the broader picture, and failing products can be a weight around the neck of the business – negatively impacting the long term efficiency of your production, warehousing, and shipping.

3.     Marketing

When launching a new product marketing is vitally important. You should study your competition and see where they’ve been successful. Organizing a pre-launch giveaway is a strong tactic. As is having a Tik Tok challenge based on your product. It may go viral and increase the product’s visibility. You should also be willing to modify your marketing tactics over time. During slower periods, and perhaps at your launch, you can opt for a cost-effective marketing strategy. And when sales are high, you can implement more a targeted, but expensive approach.

4.     Focus on Your Supply Chain

Food and beverage manufacturers who are new to the market certainly focus on their product design, and its marketing, but many fail to focus on their supply chain. And this blind spot often explains why so many new products fail. Food Manufacturing Software and Food Production Software is of real importance in this regard. It serves to optimize your supply chain, and control costs, but it also determines customer satisfaction by anticipating demand and executing a strategy to fulfil that demand.

5.     Consider the FDA and Food Traceability Rules

In September 2020, the FDA unveiled the FSMA Proposed Rule for Food Traceability. This document serves to standardize traceability practices for high risk products in the food and beverage industry. The FDA’s proposed traceability requirements can be met by the use of traceability software, which provides a ‘farm to fork’, or ‘farm to table’ traceability solution. This is the means by which food and beverage manufacturers can manage their traceability responsibilities in a bullet proof way. Software is a true helping hand; guiding staff through the FDA processes and standards and ensuring full compliance at all times. 

Adequate traceability and food withdrawal/recall systems should be in place, so you meet your FDA compliance demands and avoid a complicated and costly recall process, which may sink your business before it has begun.

Are you launching a new food and beverage product line? Get in touch with Cashmere today to try a free demo of our software solutions. Let us help you find success.