Food firms dominate list of top FMCG product innovations

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Food and drink brands lead the way in product innovation in today's fast-moving consumer goods sector, according to a new list released by Nielsen.

The Top 25 Breakthrough Innovations list celebrates recent product innovations across various FMCG categories in Europe.

The list included Nestlé for its range of ice lollies launched in Russia, its nitrate-free ham launched in France and its gluten-free pasta unveiled in Italy. Also featured were Cadbury-owner Mondelēz International for its milk chocolate wafer snack, Cadbury Roundie; Dutch coffee maker Jacob Douwe Egberts B.V. for the luxury coffee brand L’OR Classique; General Mills for its Nature Valley granola snack bars; Italian food brand Barilla for its new biscuit for Italian consumers, Buongrano Mulino Bianco; and Heineken for its Heineken 0.0 alcohol-free beer, which entered the French market, and the launch of its first cider brand in Spain.

The qualifications for the list covered requirements for distinctiveness, relevance, endurance, and the broader strategies employed by brands to make them successful.

These brands showcased exceptional abilities to win market share and deliver growth, said Nielsen, by listening to consumer needs and optimising package and product design. This included strategies such as offering new formats of currently existing popular products.

NIELSEN’S TOP 25 BREAKTHROUGH INNOVATIONS IN EUROPE (in alphabetical order)

Some of the most successful innovative products ranged from ‘special-treats’ to products that tap into the increasing consumer trend towards healthier and free-from options. Others aimed at growing an existing core brand, or appealing to different kinds of consumers such as premium shoppers.

Smruti Kulkarni, Europe Leader, Machine Learning & Design Solutions at Nielsen said: “Over time, consumer needs and attitudes have evolved, with the emergence of e-commerce, private labels and exposure to digital platforms providing personalised messaging from brands. This fierce competition for consumer’s attention has made product innovation a challenging feat for FMCG companies.”

He added: “Successful innovation can come in many different forms — some could be disruptive game changers, while others could be launched to fend off competitive pressure, or with the idea of tapping into an emerging consumer trend. Some of these brands have challenged the traditional notion of success. Across Europe we can see some remarkable innovation stories where different approaches have been taken to solve a business problem.”