Alimarket: How has the innovation evolved in recent years among Spanish companies in regard to new products, and do you observe major differences with other countries in the region?
Jaime Martín: Spain is a country with a very strong gastronomic tradition, we are “the richest country in the world”, as the ad campaign says. This is why consumers here are more 'novo-phobic' than in other latitudes, and this makes the introduction of new products more difficult, but by no means impossible. People in other markets where we operate, such as the US and some northern European markets, areless prejudiced than we are towards trying things that are out of the ordinary. On the other hand, the size of our companies clearly makes innovation difficult. In my opinion it is necessary to increase the level of ambition of innovation, it is important to reach retailers with powerful, well put together things, and that understand that we are really going to build incremental business for the category or build new categories.
A: Precisely, a recent trend has been plant-based products, which, however, seem to be on the decline. Do you think there is a certain burnout in this type of products or is it something cyclical?
J.M.: On our The Green Revolution 2023 report we explain that, in the recent years, a first cycle of introduction has been completed with a certain degree of success, from plant-based drinks and yoghurt alternatives, very successful categories, to meat alternatives, which are now easily found on the shelves and in the horeca. Indeed, sales have slowed last year, and in some categories, actually, there is a clear oversupply of brands, and we will see some brands disappear. Plant-based and alternative proteins will grow again one day, but their value proposition and marketing mix will have to evolve significantly. And companies that survive the 'plant-based winter'will have to be patient and funded.
A: By product families, which sectors do you think will be most active in terms of new products?
J.M.: I couldn’t say which sectors will be more or less active. But I do believe that we are entering an innovation super-cycle because the advance of the MDD is going to force brands to opt for contrasting strategic paths. There are some that will give up on innovation, betting on a business model with a high industrial weight. There will be a group that will opt for a consumer-centred vision, where innovation and branding will be the way forward.
A: and in the medium/long term, what major innovations will we find on the shelves in the future?
J.M.: I think the most radical innovation of the future will transcend mere product and try to leap over the supermarket shelves to find new ways to reach the consumer, to build brands and to generate real-time data and insights without intermediates who share only what they want.
A: As experts in supporting companies in the development of new products, what are your top tips for manufacturers who want to innovate?
J.M.: Innovation is a risky activity because nothing is guaranteed. This is why very conservative companies, or short-term oriented companies,find it difficult to innovate. Culturally speaking, courageous and visionary people are needed. Based on this reflection, the first step is to define a strategy to grow in your core business and beyond the core. Organise your teams, processes, and methodologies for each of these objectives. Spot trends before your competitors, leverage technology and break the inbreeding by working with people who challenge your own ideas.
A: Lastly, in your opinion, what is the key to making a product successful?
J.M.: A successful product solves a real problem, and its proposition excites. I always say that if you are launching an innovation and the organisation is not truly excited to present it to 'society', then it all starts with not much throttle. And certainly, make sure your product has a competitive advantage that can be well defended against those who copy.
Published in Alimarket Magazine on March 2024.
