Tag Archives: Brand Relations

The dinosaur holding back innovation in F&B

By Richard Horwell, owner of Brand Relations

It is my opinion that innovation and growth in the UK’s food and beverage sector is being held back by our Novel Foods legislation and a dinosaur in the form of the Food Standards Agency (FSA), which regulates the use of novel foods in this country.  Let’s review at the issues that could be affecting your F&B business.

What makes an ingredient a Novel Foods?

This is food that hasn’t had a significant history of human consumption or has been produced by a previously unknown method in the EU before May 15, 1997 when the first regulations for novel foods came into force. We inherited the regulations from the EU and it was meant to protect consumers from using ingredients in food and drink that could potentially cause harm if its safety is not proven.

Recent trends for hemp, CBD and cannabinoids, baobab, chia seeds, Krill oil, noni-fruit juice and dried mushroom including Turkey Tails and Lion’s Mane mean there’s an insatiable demand for these perceived healthy plant-based foods. But currently, they’re all waiting (and waiting) for the green light from the FSA which requires that they have to be tested as safe, and properly labelled and cannot be legally sold until authorised. This might make sense if millions of people in the UK weren’t already consuming these products freely in the form of supplements.

When the UK left the EU we hoped that this nonsense would come to an end. But sadly, we are still in the hands of bureaucrats who are making a mockery of the situation.

Why add novel ingredients?

Convenience is part of it and since the pandemic there’s been a significant increase in demand for healthy food and plant-based products. Many people come through my door wanting to use natural health foods in their products. But I have to tell them it’s not allowed until they have gathered and submitted extensive evidence to the FSA which is a very expensive and lengthy process. For example, in March 2021 only 210 applications from several thousand products were considered viable for further consideration.

Of course, we should be cautious about what goes into our food. But I have known cases where producers have gone somewhere else with their idea and a more unethical company has agreed to take the product on with a disclaimer for responsibility. They will find a way, but it just pushes the problem down to the FSA.

In most cases these health products have already been tested. For example, Canada has approved more than 90 Novel Foods including canola, corn, cotton seed and flax. Our laws say everything new has to be tested but if it is already tested (elsewhere or in different products, say supplements) and it’s not making anyone sick, what’s the problem? We need to free ourselves from the bureaucrats.

Which Novel Foods are currently available on the market?
Chia seeds, when first introduced, were only allowed to be sold as single ingredients but due to the increase in dietary intake in recent years and an extensive literature search by the European Food Standards Agency the product is now widely added to chocolate, fruit spreads, yoghurts and non-alcoholic beverages.

Cholesterol reducing spreads have also been approved with the addition of phytosterols and phytostanols and are gathering huge commercial success. The appetite for CBD in food and drink is currently booming although consumers might be surprised to learn this hasn’t yet been approved by the FSA.  Major retailers Boots and Holland & Barrrett reported an increase of 65 % in revenue in November 2021 from CBD products and they are set to pull in £690 million in 2021 – an increase of £314 million since 2019. Big names like heavyweight boxer Anthony Joshua are behind the CBD brand Love Hemp and many CBD companies have joined forces to push CBD on to the market. But nothing’s certain for them yet and this hugely successful product which has already gone through rigorous testing in other parts of the world could still have the rug pulled from underneath it.

What’s the cost of launching a Novel Food?

It’s huge. You can expect to spend at least five or six figures for the research and testing. What small business can afford that?  Currently we’re in a position where some products are on the market without approval because there’s financial clout behind them. For the time being some producers are getting away with it. We need a fairer and a streamlined system to support innovation in F&B.

ABOUT THE AUTHOR

Richard Horwell is the owner of Brand Relations, a specialist food and drink marketing and branding company based in London. Over the last 13 years, Brand Relations has been behind the launch and development of over 100 brands in the UK. Richard has also built up and sold companies of his own in the Food and Beverage sector. He has over 30 years’ experience in marketing FMCG brands around the world, having lived and worked in the UK, USA, Australia and the Middle East.

New Book – ‘How to develop and launch a drink brand’

‘How to develop and launch a drink brand’, the new book by Food and Beverage expert Richard Horwell is published on 21st March.

The book is a definitive guide to launching a drink in the UK.

Since the pandemic there has been a huge increase in interest in food and drink, even the most unlikely brands have received considerable inward investment! Employees working from home and lining up at the supermarket have realised this is the industry they want to be in. Our awareness and interest in health and wellness has grown and so has the Wellness and Functional Drinks sector. All this has led to a flood of new drink brands hoping to launch into this market, and swathe of entrepreneurs deciding this is the business they want to focus on. In short, it seems everyone wants to know how to create and launch a drink brand.

‘How to develop and launch a drink brand’, the new book by Richard Horwell, is there to answer the most common questions and help budding drink entrepreneurs get off on the right foot.

Drawing on over 30 years’ experience in the industry and having been behind the launch of over 130 brands, Richard Horwell shares his insights into the industry and what aspiring entrepreneurs need to know before they start spending any money on creating a new drink brand.

The book covers Market Research; Recipe Development; Branding; Packaging and Production; Marketing to Buyers; and Export.

‘How to develop and launch a drink brand’ will be launched at the International Food & Drink Event (Excel, London) on Monday 21st March.

The book will be available from Amazon and all good bookshops, plus direct from the Brand Relations website www.brandrelations.co.uk

Richard Horwell is the owner of Brand Relations, a specialist food and drink marketing and branding company based in London. Over the last 14 years, Brand Relations has been behind the launch and development of over 130 brands in the UK. Richard has also built up and sold companies of his own in the Food and Beverage sector. He has over 30 years’ experience in marketing FMCG brands around the world, having lived and worked in the UK, USA, Australia and the Middle East. www.brandrelations.co.uk

What costs will you incur when developing your food or drink brand?

Written by Richard Horwell, Brand Relations

We often meet entrepreneurs who believe that a new food or drink (F&B) brand can be started on a shoestring. Every business needs money to start and, believe me, the Food & Drink industry is no different. In fact, it can suck up a lot more cash than many other sectors.

Let’s review what it takes to develop a F&B brand, the professional expertise required, and the costs so you can bring your amazing idea to market.

The Recipe

A recipe made in a kitchen is unlikely to transfer to the factory. So, you’ll need a recipe developer to translate your mix into a simple recipe for mass production.

You also need to take into consideration, for example, the nutritional information required on the packaging, and the legality of the ingredients. Not all ingredients are allowed so you need to digest the Novel Foods regulations. You also need to know the health and taxation issues surrounding sugar levels. Your recipe developer can help with all of this.

Remember customers buy for health and return for taste, so it’s very important you get the best taste possible.

Packaging

Decisions on packaging are crucial. Let’s look at the options for drinks: Glass, PET (plastic), Cans or Tetra Pak.

Glass is cheap to produce as it can be filled in small runs because the material can cope with high temperatures of pasteurisation. Glass is great until a wholesaler turns you down due to the weight of cases, or the unfortunate fact that glass often breaks in transit or in store, and isn’t ideal for mail order.

There are three types of PET (plastic) packaging, Hot fill, Aseptic and HPP (High Pressure Processing) which have different characteristics and costs.  However, PET has lost popularity. Many buyers will only stock recyclable packaging.

Tetra Pak. The advantage of this packaging is that it comes in a variety of shapes and sizes, but the downside is that it is VERY expensive with the minimum run being 100,000 units per flavour.

Cans. With 75% of the world’s aluminium now being recyclable, cans are the most popular format of packaging. They are available in a variety of sizes and with can be filled in runs as low as 1000ltrs. Filling blank cans keeps the overall cost down with labels added later on. Easier to transport and with a two-year shelf-life cans are the least wasteful packaging option.

Branding

Your branding must educate your target market quickly, simply, and clearly. A beautiful eye-catching design is pointless if it doesn’t tell your consumer what s/he needs to know.  That’s why you need a brand consultant with the requisite knowledge rather than a designer with technical skills.

Your product must clearly and simply showcase its point of difference and advantages over the competition. This is much more important than your logo. Focus on what you want to tell your target consumer, not on the design you think is attractive.

Remember that 90% of a first sale is the branding. You can have the best tasting product in the World, but no one will pick it up from the shelf, so no one will ever know.

Website and Marketing Material

Getting your website right is important as it is your shop window to the world. In your product’s early days, it’s used mainly as a showcase to trade buyers looking into your brand. Once you launch to consumers it will also need to be your online shop. It is an important tool that will help generate online sales and explain to customers why they should buy into your brand.

In addition, you’ll need to budget for sample boxes and other marketing material, then PR, Social Media and possibly online advertising. Everything adds up so allow a little more to cover the unexpected.

Overall Cost

Recipe development, packaging, branding, website and marketing to take you to the launch will easily cost you in excess of £35,000. Once you launch then there will be additional costs to consider and don’t be fooled into thinking sales will fund these – in the short-term that is very unlikely.  The successful brands you see will have used up a lot more than their initial investment before they came onto anyone’s radar.

With my own brand, which sold all over the world, the first five years saw any profit being immediately reinvested into marketing.  But I made it all back plus a lot more when I sold it. Launching a new F&B brand can be a slow process but the long-term rewards can be great.

ABOUT THE AUTHOR

Richard Horwell is the owner of Brand Relations, a specialist food and drink marketing and branding company based in London. Over the last 13 years, Brand Relations has been behind the launch and development of over 100 brands in the UK. Richard has also built up and sold companies of his own in the Food and Beverage sector. He has over 30 years’ experience in marketing FMCG brands around the world, having lived and worked in the UK, USA, Australia and the Middle East.

www.brandrelations.co.uk