How to Avoid the Failure of Innovation: Learning from Flavor Flops

by Phil a'Becket | Aug 22, 2024

The innovation journey for new foods and beverages often includes failure. According to Harvard Business School professor Clayton Christensen, more than 300,000 consumer products are launched every year—and 95% of them fail.

How do food and beverage brands avoid the failure of innovation? One strategy is to learn from the past. Warren Buffet, the 92-year-old “sage of Omaha” and the world’s fourth richest man, makes this a habit, “I like to study failure. Examining the most common mistakes that companies make helps you to avoid them.”

Whether an ingredients supplier or manufacturer of a branded food or beverage, understanding the most common causes of failure can help you avoid striking out and increase your chances of success.

What Are The Common Causes of Failure of Innovation??

Innovators definitely face some headwinds under the current economic conditions. Deloitte predicts that the U.S. economy will grow 2.4% in 2024, then slow to 1.1% in 2025, before picking up again between 2026 and 2028. The Conference Board anticipates consumer spending will cool in 2024, but that GDP growth will pick up later in the year and in 2025 as inflation subsides. Economic challenges will likely bite deeper and uncertainties remain about the ingredient supply chain in the near-term.

The willingness to understand and learn from failures will become a super-power for food and beverage developers. Let’s explore the top five causes of failure (according to a study from NewNutrition Business) alongside some examples and recent trends.

CAUSE #1: DOES NOT DELIVER ON TASTE & TEXTURE

Ben & Jerry’s doesn’t shy away from talking about their flavor failures. They maintain a “flavor graveyard” where they remember flavor flops like mocha walnut, piña colada, and pear. Their #1 top flop is a Nutcracker-inspired holiday flavor called sugar plum. Flavor Guru Peter Lind called it “the worst flavor [they] ever had.”

The brand is upfront about missteps and lessons learned from lackluster launches. They acknowledge that nut-flavored ice creams are a hard sell for fans and that some concepts taste better in your imagination than in real life. But without pushing flavor boundaries, fan favorites like “Everything But The…” and “Half Baked” would have never seen the freezer section.

CAUSE #2: INGREDIENT MISALIGNED WITH PRODUCT FORMAT

In 2021, Pepsi launched a limited-time Peeps flavored soda. Although shopper sentiment surveys showed only 26% of people would consider buying the flavor, Pepsi brought it back in 2023.

The flavor plays into concepts of nostalgia and originality, but time will tell if this flavor collaboration will stay on the shelves. Online reviewers talked about the soda’s overwhelming sweetness and how the two flavors come together in a slightly baffling way. Most said they finished the can of soda but wouldn’t buy it again.

CAUSE #3: RELIES TOO HEAVILY ON THE HEALTH BENEFIT

Chasing the latest health trends online may have mixed results. Sometimes, a trend made popular on TikTok is a natural extension of an already established brand, like Hood’s cottage cheese mix-ins that satisfy cravings for protein-packed snacks. Other trends require much more nuance to adapt.

#WaterTok is a trend with over 1 billion views on TikTok. It features people sharing water “recipes” and adding flavor packets or sugar-free syrups to water. Recipes have fun names like “orange mermaid water,” but health experts have concerns about the effects of adding artificial sweeteners to your water on a daily basis. Others worry that WaterTok could promote unhealthy eating habits that could lead to an eating disorder. Brands who lean into the WaterTok trend should be careful not to overpromise on benefits and clearly explain what contributes to a healthier water-based drink.

CAUSE #4: DOES NOT CONNECT WITH THE RIGHT SHOPPER

Food and beverage innovation should be tailored toward a specific audience. According to John Stanton, Ph.D., a professor of food marketing at Saint Joseph’s University in Philadelphia, “As supermarkets and food manufacturers become more targeted, one might expect it to be more difficult to ‘hit a smaller target’. The reverse appears to be true. It may be that when everyone was aiming at the average shopper they weren’t focused enough. But when they realized there really is no average American, then they were forced to aim their new products more carefully.”

In 2007, Pepsico launched Flat Earth chips that contained a half-serving of fruits or veggies per ounce. Although the launch originally targeted mainstream shoppers, female shoppers purchased most often, usually for themselves. About 25% of shoppers are “wellness seekers” and like options with new benefits and quirky brands with a story. Flat Earth chips might well have found a secure footing with a more niche market, but Pepsico decided to discontinue them when they fell short of mainstream sales targets.

CAUSE #5: FAILS TO MAKE TREND CONNECTIONS

While the demand for functional foods is on the rise, people like to get their health benefits from foods they can easily understand and accept. Ingredients that are naturally functional, like caffeine in green tea or vitamin C in citrus, usually have a faster path to success.

For example, the technology-forward, sterol-based Benecol bars directly compete with naturally functional foods like breakfast cereals based on oats (Cheerios or Quaker Oats). Oats are a natural source for lowering cholesterol and significantly more price-competitive. While awareness and knowledge of plant sterols remain low, Benecol products are still in distribution in Europe. As more people learn about functional ingredients to support heart health, it’s possible adoption will improve over time.

Craft Your Next Successful Innovation With Help From the Experts

As you start envisioning your next food or beverage innovation, essential elements of your plan include a careful strategy that acknowledges food culture and a strong value proposition for why shoppers should engage with your product.

Whether you’re innovating with popular flavors or creating a one-of-a-kind flavor combination, FlavorSum can help you explore your opportunities. When you develop a food or beverage that connects with shoppers and delivers the great tastes they desire, the ‘failure of innovation’ risk retreats. Our team can support your journey to success with insights, custom liquid flavor creation, and application expertise. Let’s connect to discuss how we can collaborate and make your next food or beverage idea remarkable!

Author

Phil a’Becket

Phil a’Becket is the Senior Consumer Insights Manager for FlavorSum. He has eight years of experience in food ingredient market research, focusing on both primary research and secondary data analysis. He earned his MBA from Clemson University, and joined FlavorSum in 2022.