The product’s been refined and tested. It looks and tastes great. But how do you get your emerging food brand on the supermarket shelf? The consumer-packaged goods (CPG) industry is more competitive than ever, meaning new brands must get ‘category savvy’ to ensure they can compete against the food giants and growing private label sales.
Outside of securing funding and access to capital – a significant hurdle to reach the production stage – most of the key considerations for emerging food brands come down to a thorough understanding of the competing category and optimising the product to stand out with a point of difference.
Innovation and creativity are in no short supply, but knowing where to direct efforts and gather intel can make or break a launch. Here are five areas to get up to speed:
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Get clear on your proposition and competition
Study the products in your category, including private label options, so you know what you’re competing against and can fine-tune where your product fits.
Consider whether there is a gap your product can fill in the market and pay close attention to the price point for each competitor’s item.
Ensure you learn the language to use when pitching your product to retailers and find out what matters to them.
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Diversification
Look for opportunities to enter diverse categories or shelf displays in stores. For example, does your product have the option to be packaged in bulk and single serve sizes to be placed in both the shelf-stable grocery aisles and the chilled ‘grab and go’ displays?
Multiple pack formats and flavour varieties may not be viable upfront, but it’s important to consider the potential for scaling up and expansion down the track.
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Value and premiumisation
The rising cost-of-living is forcing many consumers to tighten their belts and place even greater focus on value in their shopping baskets.
However, this trend varies significantly based on demographics, store location and type. Plenty of customers are still willing to spend more on a premium product, or convenience factor, if they understand – and believe – it represents good value.
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Develop and nurture relationships for deeper insights
Sales data drives our industry and is an important tool to support decision making. However, nothing compares to the intel on offer from a retailer or category manager who knows what items are missing from their shelves.
Build your network across the retail industry to tap into a goldmine of information to inform your product development.
There continues to be a real buzz around Australian-made products and a desire from retailers and consumers to support homegrown Aussie businesses.
Retailers and industry experts are best placed to share insights on what is likely to work – and what hasn’t worked so well in the past – based on their deep knowledge of customer demands and shopping habits.
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Understand the launch pathway
A key point of difference in independent supermarkets is the broader range of specialty products on offer and the opportunities for emerging brands to break their way onto supermarket shelves.
Independents are home to a much greater diversity in product range than shoppers can get in the majors, making it the place where up-and-coming food brands get their start.
Historically we’ve seen the majors start to take interest in products already selling well across the independent store networks, and often Australian suppliers continue to have a broader range of products in our stores while expanding with limited lines into major supermarkets.
There’s support out there Australia’s independent retailers are passionate about finding fresh and exciting products for their customers.
There is an appetite for expansion and growth, so we want emerging food brands to know the industry is here to collaborate and support them to help their new ventures succeed.
Sonia Martinez is a Fresh Specialist at Australian United Retailers.
Australian United Retailers Ltd. (AUR) is a support office for independently owned supermarkets, convenience and liquor retailers. Today, Australian United Retailers has more than 580 supermarkets, food and convenience stores across Australia and trading under well-known retail brands such as FoodWorks, Go Grocer, Farmer Jack’s, Happy Apple, Grocery Liquor and Co, Goods Grocer, Foodstore and LiquorWorks as well as supporting many other retail brands owned and operated by our retailer associates.
