News | February 27, 2019

Arthur D. Little Identifies New Approach To Innovation In Food And Beverage Sector


Arthur D. Little (ADL) today released a new Viewpoint exploring the urgent shifts and the need for innovation in the food and beverage market. The paper, “Can food and beverage leaders find their footing?”, looks at how the relationship between large companies and consumers has changed and what is required to adapt to the new dynamic.

According to ADL experts, the root of the challenge comes from the modern consumer’s expectation of personalized, on-demand products. This expectation calls for a complete change in how large companies engage with their buyers and create product lines that are new, relevant, and quick to market.

The Viewpoint notes that while the industry is responding by exploring experimental partnerships and launching or collaborating with start-ups, success has been elusive. A key barrier has been companies’ struggle to bring ideas through to completion. According to an ADL survey, more than 85 percent of companies were unsatisfied with their breakthrough innovation performances.

“Large food and beverage companies have traditionally had a fairly simple approach to innovation based around consumer research and incremental change,” explains Tim Barder, principal at ADL in the U.S. “This method may have generated positive results when these companies dominated the market, but if leaders want to avoid further decline – or even destruction – they now need to become more strategic about innovation. They need to have clear direction in terms of how to grow beyond stagnant core businesses, making the most of the levers available to them.”

In response to the market need, ADL’s Breakthrough Incubator (BI) model helps companies overcome innovation roadblocks. Through the BI model, the end-to-end innovation process is externalized and conducted by a lead delivery partner managing a network of other players, from ideation through to launch and commercialization. This includes strategic, commercial and operational planning, as well as technical development.

To download the Viewpoint, please click here:

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