Food innovation needs the right supports to succeed

With careful planning and consideration, there is a world of opportunity at your fingertips if you are interested in food production as a form of farm diversification, or if you want to start a small business.

It’s important to note, though, that when you run your own small business, you aren’t just the CEO – you are also the health and safety officer, social media manager, head of IT, head of operations and, of course, chief financial officer. On top of this, you need to be innovative to make it within the competitive landscape of food production.

This means creating products consumers might not have even realised they needed until they see it on the shelf. Current trends around food innovation include healthy, on-the-go snacks which are high-protein and low in fat, for example, or environmentally sustainable convenience products (like kid-friendly frozen dinners or palm-oil free desserts).

Trends are different from fads – fads will fade, while a trend indicates a direction in which consumer demand is moving. While it is well worth taking them into consideration, let’s also be realistic – it is difficult to be on the cutting edge of food innovation when you are busy with the day-to-day operations of a small business. Sometimes, we need a bit of outside inspiration. Luckily, there are supports out there for food start-ups and existing small businesses, to help pique your creativity.

Teagasc supports

Ciara McDonagh, head of food industry development at Teagasc, says most start-ups are trying to do it all and without the right support, it can be a very frustrating space.

“Building innovation into any business model is important, but smaller food companies are under such pressure – particularly if they get listed in retail; their demands grow as they grow,” she says. “The bottom line is, with increased demand, you’re spreading yourself quite thinly.”

Teagasc regularly offers courses in product development and food innovation at its Ashtown and Moorepark locations. It develops its courses based on trends and food business demand, but its landmark courses are all centred around product development, food quality and safety, and sensory analysis.

“We offer an introductory course on new product development (NPD) for those starting out on their journey,” Ciara explains, “and offer an additional course for more established food businesses and brands focused on managing the NPD processes within their company.

“Innovation is important across all levels of the food industry, from small businesses to large multinational corporations,” she adds.

“In smaller companies innovation might involve more informal processes, like experimenting with new recipes or reacting to customer feedback and purchasing trends. Larger companies may have dedicated product development teams and structured systems for innovation.”

The courses offered by Teagasc range in price, depending on the offering, but many come with Skillnet Ireland subsidies (see teagasc.ie/food/food-industry-development/food-industry-training/ for more information).

The learning on the day is valuable, but equally important are the connections small producers make to help them further their product development journey.

“If you attend a course in Teagasc, the people delivering are the Teagasc scientists and technologists who are experts in that area and work with food businesses every day,” Ciara explains. “This is an important connection for anyone who wants to turn a product idea into a reality.”

Food Matters Live

Making connections; networking – these common themes pop up when discussing small-scale food production and innovation. Being an entrepreneur, especially if you live rurally, can feel lonely at times. Attending courses and events aren’t just for upskilling, they can also lead to valuable business relationships and provide a sense of community.

UK-based industry event Food Matters Live (foodmatterslive.com) is coming to Dublin on 5-6 November and innovation will be the number one topic of discussion. Food Matters Live connects food and drink professionals and brands.

It presents new ideas in food innovation, ingredient sourcing and nutrition, and encourages networking through its diverse infrastructure. It has taken place six times in the UK over the last number of years and now is also taking place in Rotterdam.

Briony Mansell-Lewis is managing director of Food Matters Live. She tells Irish Country Living that the set up is not like your average food conference or trade show, but it works for what they are trying to provide attendees.

“It’s a different format, but it’s a good one and has been well received,” she says. “We put a big emphasis around ingredient innovation, product development, positive nutrition and sustainable sourcing and how that can create opportunities within the food system.”

Briony likens the format to a pyramid, with their ‘Taste of Better’ programme at the pinnacle. There, companies will host suites to showcase solution-focused ingredient innovation for food service providers and food producers.

This includes the latest in food technology, sustainable swaps for traditionally less-sustainable ingredients and ways of injecting added nutrition into convenient food products. Attendees will have the chance to meet and converse with food technologists, product development experts, chefs and industry experts.

Global ingredient companies IFF, AAK and Kerrygroup are the lead partners for Food Matters Live Dublin. Aside from the ‘Taste of Better’ programme, there will also be two main stages running over the two days.

One will focus on positive nutrition (for positive ageing and convenient on-the-go bites, among other things) and the other will be around sustainable ingredient sourcing.

Briony says when it comes to the latter, education is still needed for many producers – but there is also a lot of innovation to celebrate.

“Traceability and transparency in food are more important than ever,” she says. “There is a lot of talk going on about sustainable sourcing, but I think we can sometimes struggle to incorporate it into practise. That’s quite a big focus for some of the elements we’re going to be covering at the event.

"Around the main stages there will also be round table discussions, so we will have the big picture on the main stage, drill it down into specific case studies and then take the conversation to experts around the table.”

So where do you begin? If you have an idea for an innovative food product but have never operated a small business, it can be difficult to know where to start.

According to retail expert John McDonagh, navigating the ins and outs of product development can be tricky; particularly if you aim to sell your product in larger supermarket outlets.

“[The supermarket landscape] is a very ‘people intense’ system,” he explains. “You have your buyers and your suppliers, and some of them operate differently. Many do not understand fully how it operates and it often requires some luck to get in. I know the system, and I don’t see why there can’t be a clear road map that can provide the information needed to do it all yourself.”

After spending 15 years in the supermarket retail space – 10 of which he spent as a buyer for one of Europe’s biggest supermarket chains – John is currently in the beginning stages of developing a software programme to help entrepreneurs on their product development journey.

He believes the process should be a more user-friendly experience.

Breaking it down into manageable stages and allowing yourself ample time to get things right is, in his view, the key to success.

“I see a massive opportunity to develop software for retail,” he says. “Like in any industry, you can make product development a complex conversation, or you can make it straightforward.”

John recommends allowing yourself at least 40 weeks, depending on the product, from the start to finish of this process.

John’s product development roadmap:

1. Develop your product idea and find suitable suppliers of the raw ingredients – for example, if you’re making chutney with your farm’s tomatoes, you’ll also need onions, vinegar, sugar and other ingredients.

2. Create the product specification – map out the recipe, nutritional values, quantity and production price per unit.

3. Contact a branding and packaging company and develop suitable packaging for your product, including logo design and customer appeal.

4. Have the product quality tested and certified by the Food Safety Authority.

5. Review the market, find suitable buyers, begin the tender negotiations, agree on order quantities and a fair price (it is important to ensure this price is fair for both parties, as it could lead to supply problems down the line).

6. Sign a contract – either the buyer gives you a contract to sign, or you find a solicitor who specialises in distribution/supply agreements and have them create a contract on your behalf for both parties to sign.

7. Print the packaging before producing the product. John advises this, as the packaging won’t deteriorate if stored correctly.

8. Begin production and delivery services.

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