r&d manufacturing insights
IFMA Helps Processors Boost
New Product Success
T
he International Foodservice Manufacturers
Association (IFMA) represents the world’s most
prestigious food, equipment and supply manufacturers in the $588 billion foodservice industry. This sector
accounts for about half of consumers’ food dollars.
IFMA’s mission is to “enable its member community to
focus on critical issues affecting their businesses and the
industry” by bringing the scope and scale of its membership
to these issues. All of our activity is member-driven, with
60% of our member companies engaged in one or more of
our 20 committees.
Our members drive across each of five focus areas:
n Customer Connectivity:
Customer Connection with a Business Purpose
n Best Practices:
Combining Knowledge/Proven Experience
n Market Insight:
Relevant Input for Making Business Decisions
n Human Resource Development:
Right Skills to Meet Future Market Needs
n Washington Insight:
Navigating Governmental Requirements
on “Benchmarking.” Phase Three, slated for completion in
mid-2013, focuses on “Best Practices.”
Our foodservice industry has always required close collaboration between trading partners, and these integral relationships have been accounted for in Phases One and Two.
Phase Three (Best Practices) will highlight how successful
companies succeed in this market. To this end, we encourage you to become involved. To learn more about IFMA, the
CIE and the many other committees led by our membership,
please visit www.ifmaworld.com.
Lastly, 2012 marks IFMA’s 60th anniversary. We are
proud of the way the association has evolved alongside the foodservice industry as a whole. Today IFMA
enables members …
… to connect with industry peers and trading partners
through structured events and high-impact industry forums
where issues are brought forward and solutions are created.
… to learn strategic insights from the best in the business;
access proprietary IFMA research on key issues and opportunities; and dialog on mission-critical topics with peers.
… to apply best practices for tools specific to the needs of
the foodservice industry; education; and training.
Much success in the coming year!
Sincerely,
Larry Oberkfell
President and CEO
IFMA
One of our committee-driven initiatives involves the
Center of Innovation Excellence (CIE). Strategic analysis
of our membership and channel partners revealed that there
were no foodservice innovation standards. Since innovation
has often been called “the life-blood of foodservice,” IFMA’s
founding committee decided to focus on one area of innovation: “Ideas to Launch.”
The committee, involving top innovation managers from
35 leading food companies, created a three-phase approach
to the effort. Phase One, completed earlier this year, specified
an “Innovation Framework.” Phase Two, recently completed
and the topic of the article you are about to read, focuses
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r&d manufacturing insights
Foodservice
New Product
Benchmarks
Top Four Metrics Used to Measure
Innovation Program Performance
Net sales of
new products
Overall profits (annual)
generated by new products
Net incremental sales
Dr. Scott Edgett and Devon Gerchar,
Contributing Editors
T
67%
Percentage of business’
net sales generated
by new products
46%
30%
28%
he foodservice industry’s best perform0%
20%
40%
60%
80%
ers achieve 22% more sales and 20%
Percentage of Respondents
more profits from their new products
than their average performing counterparts.
Source: Stage-Gate International, International Foodservice Manufacturers Assn.
They also are seven times more likely to launch
commercial successes than poor performers.
These aren’t just pie-in-the-sky numbers; these
The benchmarking research, which is the second phase
are real performance results realized by real companies. These,
of work launched through CIE, uncovers a great deal about
plus many other innovation performance realities, are revealed
foodservice new product innovation and provides underin IFMA’s newest research publication, “Foodservice New
standing of what separates high performers from low
Product Development Process: Performance Benchmarks,” a
performers. Researchers learned that a purpose-built process
ground-breaking research initiative.
is key to successful innovation, especially a process that
The Center of Innovation Excellence for Foodservice
includes the “voice of the customer.”
(CIE) is a collaboration involving the International
Refer to Success Metrics, a “Playbook”
Foodservice Manufacturers Association; product innovation
To be successful in product innovation, processors need to
experts Stage-Gate International; and numerous founding
understand what success looks like. Most businesses use
member companies that are providing funds, time and talent
multiple metrics (the average company uses 2.5 different ones).
(see founding members list).
Center of Innovation Excellence: Founding Members*
Aryzta (Otis Spunkmeyer)
Barilla
Basic American Foods
The Bama Companies Inc.
Bunge Oils
CH Guenther
Coca-Cola Foodservice & On Premise
ConAgra / Lamb Weston
CSM Bakery Products
Dannon
FoodHandler (BarrierSafe Solutions Intl.)
General Mills Foodservice
Hobart (ITW)
Insight Beverages
International Paper
JM Smucker Company
JR Simplot
Kellogg’s Food Away From Home
Kerry Foodservice
Kraft Foodservice
Land O’Lakes Inc.
Lyons Magnus
McCain Foods
Nestlé Professional
PepsiCo Foodservice
Proctor & Gamble Co.
Rich Products Corp.
Sara Lee Foodservice
Sargento
SCA Tissue
Schwan’s Foodservice Inc.
Starbucks
Surlean Foods
Sweet Street Desserts
Unilever Food Solutions
*Companies contributing funding,
committee personnel
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39
r&d manufacturing insights
However, a purpose-built
process–one containing
certain practices—indeed
separates the best from the
3.3
worst performers. These
3.7
Use formal NPD process
3.8
companies employ …
2.9
3.6
Clearly defined stages
… C l e a r l y d e fi n e d
3.8
2.9
stages:
a set of predefined
3.3
With identified activities
3.5
activities that are per3.0
3.4
Defined “Go/No Go” decision points
formed in each stage;
3.6
2.6
…Clearly defined “go”
3.1
“Go/No Go” criteria defined
3.1
and
“no go” decisions: Gates
3.0
3.2
Flexible, scalable process
where decisions are made
3.7
3.0
whether or not to continue.
3.5
Process used and understood
3.4
This requires management
2.8
3.4
Enabling process for teams
to meet with the project
3.2
team to review the project
Very
Not at
2
3
4
and evaluate it on its merits;
much so
all
To what extent each NPD process element exists
…A process that is flexible
and scalable: An innoWorst performers
Middle performers
Best performers
vation process must be able
Significant differences between worst and best performers
to change based on the size,
Source: Stage-Gate International, International Foodservice Manufacturers Assn.
type, complexity and risk of
the project.
Sales-related metrics are the most popular, combined with a
It’s here that readers might say, “English please!” This
profit metric, as seen in the chart, “Top Four Metrics Used
translates to a process that is documented with clear metto Measure Innovation Program Performance.”
rics; is used and modified over time; and is best for the
So, a “commercial success” is defined as meeting or
entire organization.
exceeding the sales/profit objectives during a three-year
Stages, Gates and Flexibility
period. As mentioned earlier in this article, the best-performMost foodservice organizations employ a more rigorous pro­­
ing companies had seven-times-higher success rates comcess for high-risk products than for low-risk items. These
pared to their lower-performing counterparts. This means
processes include stages and gates; stages are where specific
more profit and sales, and fewer wasted resources.
information is collected and tested, and gates are where the execNow that the basic metrics are understood, it’s important
utive team makes decisions whether to “go,” “hold,” “recycle”
to talk about the practices top performers employ to drive
or “kill.” (See chart “Typical Five-stage Innovation Process.”)
better success rates.
This often is employed for top-line innovations that are “new
Of specific importance is the process used to take intanto the world” or “new to the company.” The rigors and resources
gible, creative ideas and develop successful and profitable
used in this process yield a more thoughtful output and also will
new products. (See chart “Impact of Having a Systematic
provide the largest return of investment over time.
Product Innovation Process in Place.”)
Foodservice organizations also employ a three- or twoHaving an innovation process in place is a good start,
stage process with some projects, where stages and gates are
but not significant enough to truly impact performance.
Impact of Having a Systematic
Product Innovation Process in Place
Typical Five-stage Innovation Process
Exploration
Business Feasibility
Generation and
assessment
of an idea
Detailed design and
feasibility of the
product concept
Development
Development of the
product, imaging
and packaging
“Decision Points” or “Gates”
Source: Stage-Gate International, International Foodservice Manufacturers Assn.
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Validation
Launch
Customer acceptance
testing; final product
validation; supply chain
and forecast accuracy
Launch of the product
r&d manufacturing insights
High Degree of Collaboration
Achieved Higher Success Levels
60%
50.6%
Percentage of Respondents
50%
40%
36.0%
28.7%
30%
28.0%
24.0%
20%
14.9%
10%
4.0%
8.0%
5.8%
0.0%
0%
Innovation is a big buzz word. In
a mature or struggling environment, it is the difference between
product life or death, and possibly
company sustainability. The quality of execution—from start to finish—matters. Moreover, those
companies that are flexible and
diligent in the new product process
will reap huge benefits, not only for
their organizations, but also for
customers and end-user consumers. Visit ifmaworld.com for more
CIE information and details about
upcoming work that will engage
IFMA’s members, industry suppliers and customers.
Dr. Scott J. Edgett is internationally recognized as one of the
Projects with a high degree of collaboration with customers achieved
world’s top experts in product
higher success levels than projects without collaboration (past two years).
innovation and is the pioneer of
portfolio management for prodManufacturer
Operator
uct innovation. Edgett is chief
Source: Stage-Gate International, International Foodservice Manufacturers Assn.
executive officer and co-founder
of Product Development Institute
Inc. and Stage-Gate International.
consolidated for low-risk projects, such as product enhanceHe is a former professor of the Michael G. DeGroote School
ments, modifications and line extensions.
of Business, McMaster University in Ontario, and is a facThis flexible approach enables the organization to more
ulty scholar at the Institute for the Study of Business Markets
effectively adapt to the needs of their various types of proj(ISBM) at Penn State University.
ects. Close to half of the manufacturers in the benchmarking
study (46%) said they flexibly tailored their processes to
Devon Gerchar is a foodservice professional with more
manage project risk and complexity.
than 20 years of industry experience in market research,
marketing, strategy and database analysis. She has worked
Collaboration as a Success Component
for branded foodservice companies such as Unilever Food
Foodservice innovation is different from retail models. Not
Solutions and Reynolds Packaging Group. In 2010, Gerchar
only does foodservice often drive new flavor trends and
joined IFMA as director, Member Value.
preparation techniques, it also has a level of complexity
regarding the customer.
In foodservice, the manufacturer makes a product that is
Research Methodology
distributed to the operator—then prepared, presented and eaten
IFMA sent an electronic, 60-question quantitative research survey
by the consumer. Thus, there is a whole other element to creatto U.S. foodservice manufacturers. A total of 128 businesses
ing a successful product in foodservice, one which has its own
responded. However, further refinement of the data led to a useable
brand identify, limitations and ideas regarding menu offerings.
sample of 106 respondents. Although these companies represented
Forward-thinking innovators realize effective collaboraa variety of categories (including foods, beverages, disposables,
tion is important in new product development. As seen in the
sanitation, equipment and other), 70% were in the food sector.
chart, “High Degree of Collaboration Achieved Higher Success
A majority of respondents (63%) reported sales in excess of $500
Levels,” top-performing manufacturers not only are more sucmillion, and 70% had 100 or more employees. In terms of title, 78%
cessful at collaborating with operators, but their innovation
of respondents were director-level, vice-president or higher. Another
projects are more successful as a result. Collaboration in this
quantitative survey of operator respondents also was sent during the
study concentrated on operators. But overall, communication,
same time period. These results are not highlighted in this article.
ideation, and collaboration with suppliers and trading partners are
beneficial for all parties, as long as good governance is employed.
42
November 2012
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2
3
4
Very much so
r&d manufacturing insights
PepsiCo “Loco”
for New Products,
Foodservice
Partners
Bob Garrison, Chief Editor
Q
uaker Oats. Frito-Lay. Pepsi. Tropicana. With
Doritos Locos: the biggest, best-selling new product launch for
brands such as these, it’s no secret PepsiCo Inc. is
Taco Bell.
a powerful player at retail. Then again, officials say
Photo courtesy of Taco Bell Corp.
PepsiCo is an equally powerful partner for restaurants.
Here’s a win-win example: PepsiCo Foodservice and
includes brands such as Pepsi, Frito-Lay, Quaker,
Taco Bell jointly invested capital and years of research
Tropicana and Gatorade. The group leverages the comand development in support of Taco Bell’s new Doritos
pany’s diverse product offerings for use in all operating
Locos Tacos. Although the product officially debuted just
channels, including vending, throughout the U.S. and
last May, it already has become Taco Bell’s best-selling
Canada. Allison says PepsiCo Foodservice taps a broad
new product. Or, consider a more recent
corporate network of facilities, food
new product debut from International
scientists and culinary personnel,
House of Pancakes LLC. This September
such as Stephen Kalil, CEC, CRC, a
saw IHOP expand its Simple & Fit menu
director of research and development
(items with fewer than 600 calories) with
and corporate executive research chef
three new oatmeal varieties made with
at Frito-Lay North America.
Quaker Oats.
“When it came to Taco Bell,
“We recognize that product innovation
PepsiCo’s culinary team worked hand
isn’t the same as it is in retail, and clearly,
in hand with Taco Bell to creatively
it is not a one-size-fits-all scenario for
take us beyond chips,” says Allison.
everyone,” says Doug Allison, PepsiCo
“It’s about figuring ways to integrate
Foodservice vice president of industry
our thinking and product capabilirelations and communications. “In foodties into our customers’ menus, and
service, we feel we have the responsibility
I think you are starting to see that in
to try to grow our customer’s business.
a numbers of ways, with a number
That’s the underlying theme. Throughout
of our customers. We’re willing to
Helping guide the Doritos Locos Taco
PepsiCo, we work to learn how to excite
explore new seasonings, flavors and
project was PepsiCo’s Stephen Kalil,
consumers. Next, we translate that into
product categories, and apply a culiopportunities to build our customer-partnary perspective with all the market
corporate executive research chef for
ner’s business.”
intelligence we have with our customFrito-Lay North America.
For the record, PepsiCo Foodservice
ers that [are] willing to partner in all
Photo courtesy PepsiCo Foodservice
spans PepsiCo’s broad portfolio, which
aspects of [the] innovation process.”
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r&d manufacturing insights
eties to come). To gauge consumer
acceptance, both companies tested
Doritos Locos Tacos for a full year in
three cities (Bakersfield and Fresno,
Calif.; Toledo, Ohio), where one out
of every three purchases included the
Doritos Locos Tacos.
In late May, Taco Bell told newspapers the chain already had sold more
than 100 million Doritos Locos Tacos
during in the product’s first 10 weeks
on the national market. Spokesman
Rob Poetsch told the Orange County
Register that the company’s previous
Retail to restaurant: PepsiCo Foodservice spans
PepsiCo’s broad retail portfolio, which includes
billion dollar brands, such as Pepsi, Frito-Lay,
Quaker, Tropicana and Gatorade. The group
leverages PepsiCo’s diverse product offerings for
use in all operating channels, including vending,
throughout the U.S. and Canada.
What does the innovation process look
like behind the scene? Taco Bell shared
a few insights regarding this summer’s
official launch of Doritos Locos Tacos.
According to a company press release,
Taco Bell CEO Greg Creed said he tasked
his team and supplier-partners with
developing the foodservice industry’s
“next big thing.” Through deliberate and
collaborative efforts, Taco Bell and FritoLay developed the Doritos Locos Tacos.
It is an idea so simple and brilliant, said
Creed, “it was a flavor pairing just waiting to happen.”
Taco Bell said Frito-Lay purchased and
installed four additional production lines
to produce the proprietary shell made from
Nacho Cheese Doritos chips (more vari-
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47
Photo courtesy International House of Pancakes
r&d manufacturing
IHOP offers three new Quaker Oats oatmeal varieties.
big hit, the Crunch Wrap Supreme of 2005, “has been dethroned”
by the Doritos Locos Tacos. In late August, Taco Bell announced
that it had crossed a mark of more than 200 million items sold.
“This innovation [story] is as much theirs as it is ours,” says
Allison. “It’s a great example of serving as a sounding board to our
customers, so we can help both companies increase brand awareness and drive incremental business.”
Meanwhile, the beat goes on. PepsiCo Foodservice says its latest partnership with IHOP represents the first time Quaker Oats
has ever partnered to create branded items specifically for family
dining. Officials say IHOP’s new oatmeal blends three different
types of oats to offer unique flavors and textures. Three new menu
additions are Quaker Oats Super Fruit & Nut Oatmeal, Super
Fruit Oatmeal and Banana & Brown Sugar Oatmeal.
PepsiCo Foodservice’s
partnership with IHOP represents the
first time Quaker Oats has ever partnered to create
branded items specifically for family dining.
“We were delighted to work with Quaker to formulate an oatmeal blend that is hearty, creamy, toasty and uniquely IHOP [and]
that meets both our high standards for breakfast foods,” said David
Shaw, IHOP’s executive chef, in a corporate launch press release.
“These new oatmeals, along with our new, whole-wheat menu
items, demonstrate IHOP’s commitment to continually introducing
new, delicious, low-calorie and smart dining options, and we think
these new additions will become customer favorites.”
IHOP’s press materials included comments from Kristina
Mangelsdorf, chief marketing officer at PepsiCo Foodservice.
“Partnering with IHOP, a brand that gets as excited about breakfast as we do, is a natural fit for Quaker,” she said. “For more than
130 years, Quaker has been nourishing healthy families with delicious, whole-grain foods, and we’re excited to continue to innovate
and expand the ways in which we serve oatmeal lovers.”
November 2012
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r&d manufacturing insights
What’s Brewing
within Starbucks’
Innovation
Division
E
ditor’s note: Starbucks Coffee Company is a
recognized global leader in innovation and one
of the founding members of IFMA’s Center of
Innovation Excellence (CIE). Following is an interview
with Starbucks’ Mary Wagner, Ph.D., senior vice president
for Global Research, Development & Quality. Questions
were prepared by IFMA, Stage-Gate International and
Prepared Foods magazine.
Dr. Wagner began her career in 1984 as an assistant food science professor at the University of Wisconsin (Madison).
Since then, she has held executive R&D/quality and regulatory positions at General Mills, Unilever, YUM, E&J
Gallo Winery and Mars Inc. She joined
Starbucks in April 2010.
Chipotle Chicken Wrap Bistro Box: New items help Starbucks compete
in different dayparts.
and also specializes in global tea botanicals for the entire
company. Since our needs at Starbucks are global as
well as regional, this decentralized structure allows us to
deliver locally relevant products everywhere customers
are enjoying the Starbucks experience.
Q: Please tell us about Starbucks’ R&D
organization.
Mary Wagner: We have a dedicated
R&D group of approximately 70 partners [employees]. That said, Starbucks’
approach to food and beverage development is a truly cross-functional and collaborative process, which draws on hundreds
of partners throughout the company to
guide product innovation.
Q: Where is your group located?
MW: R&D operates out of Starbucks’
headquarters in Seattle. In addition to our
corporate headquarters, we have Centers
of Innovation Excellence around the
world. For example, our facility in China
supports the Asian region of the world
Starbucks’ Mary Wagner, Ph.D., senior
vice president for Global Research,
Development & Quality.
All photos courtesy of Starbucks Coffee Company
Q: Why is innovation important to
Starbucks?
MW: At Starbucks, we do not purposefully set out to be “innovative.” Rather,
we aspire to be a company of people
that share a common passion to create the ultimate coffee experience. Our
customers are the best judge of what
that experience should be, so we are
continually responding to their desires
and ideas.
This naturally compels us to improve
our products, services and technologies.
It also drives us to think on entirely new
levels—“new-to-company” and even
“new-to-world” products, services and
technologies. The most genuine way to
keep our current and future customers
happy is by innovating. That is why
innovation is so important to Starbucks.
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are they so successful? [and] What do
their teams do differently?’
We conducted some internal benchmarking with help from the folks at
Stage-Gate International. Together, we
identified several internal best practices
that made good sense to implement with
all of our business leaders and innovation teams globally. My goal is to help
Starbucks transform its innovation capability to move beyond “pockets of success” occurring periodically—to a global
organization delivering consistent, predictable innovation success.
Popular, growing energy beverage line.
Q: What is your most important strength
when it comes to innovation?
MW: This is an easy one. Our partners are
our most important strength (at Starbucks,
we call our employees “partners”). We are
very fortunate to attract and keep good
talent at Starbucks. Over the years, we
can cite specific examples of partners
that have led successful new product and
technology innovations, even “breakthroughs!” In addition to strong leadership, we are good collaborators—across
functions and businesses—we foster a
real team approach to innovation.
Q: What is Starbucks’ biggest innovation
challenge?
MW: We have two big innovation opportunities, and both initiatives are underway
right now.
Q: Let’s start with the first opportunity.
MW: We set out on a journey to closely
examine the “pockets of innovation excellence” occurring throughout Starbucks
in order to learn and understand why we
were enjoying success in specific areas.
We sought answers to questions like:
‘What leadership characteristics do our
most successful innovators have? Why
Q: What about the second opportunity?
MW: I can’t help but chuckle when I
explain that our second initiative is the
reward we get for becoming really good
at thinking innovatively. But, it’s true! We
have no shortage of really, really good
ideas. We receive thousands of ideas for
new products, services and technologies
from our customers, partners and our suppliers. It’s exciting and energizing.
However, our ability to generate so many
good ideas has created a need for us to be
even better at something else—prioritization. So, the second initiative is establishing
a way to prioritize and select projects that
will contribute most to our business strategies. Making tough go/kill decisions is very
difficult to do, so we looked to the folks
at Stage-Gate International for advice on
key external benchmarks and practices.
And, given the importance of preserving
Starbucks’ entrepreneurial culture, we
worked together to customize gate scorecards, prioritization criteria and portfolio
charts, so they worked well for our needs.
Q: What has Starbucks gained by participating in IFMA’s foodservice new
product development process benchmarking initiative?
MW: At Starbucks, we have an insatiable
appetite for new knowledge, especially
when it comes to improving our ability to
innovate new products. If there is a way
we can improve our results, we want to
know about it. As a key leader responsible
for much of the product innovation, being
on top of industry benchmarks helps me
to stay ahead of the innovation performance curve.
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November 2012
r&d manufacturing insights
Q: What is your favorite new product?
MW: A tough question, as I like so many! I would have to say
my favorite is probably always the most recent one to launch…
in this case Refreshers. This new beverage offers a unique innovation for a cold beverage made from green coffee extract. [It’s]
very refreshing and craveable. I must drink at least two Grande
refreshers a day from our internal Starbucks store.
Q: This must be a fun time to start exploring the broader
beverage category.
MW: We saw high customer and partner [employee] demand for
a natural energy solution. Starbucks Refreshers beverages are a
breakthrough beverage innovation that deliver thirst-quenching
enjoyment from green coffee extract, a natural source of caffeine,
and real fruit juice to create an energizing, low-calorie beverage.
Starbucks Refreshers beverages are the perfect solution for customers looking for a boost of natural energy and thirst-quenching,
delicious refreshment.
Q: What are a few of Starbucks’ top-selling foods? Why?
MW: It really depends on the area and potentially down to a
specific store. In some places, it could be oatmeal for breakfast,
and somewhere else it could be the Protein Plate Bistro Box.
It can be a matter of what that store represents in a customer’s
daily routine.
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November 2012
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Q: Describe Starbucks’ approach to food menu development?
MW: Having a balanced portfolio of items—such as smaller
portion-sized sweet treats in our Petites line to lean proteins
and whole grains in a grab-and-go Bistro Box for the afternoon—means we are meeting customers’ needs at different
day parts.
Some of the best feedback we get is through MyStarbucksIdea.
com, hearing directly from our customers on what they would
like to see in our stores. We take that feedback into account when
setting our path forward for 12 to 24 months and beyond.
Q: What would you tell colleagues about the best way to develop
new items for Starbucks?
MW: Since we receive so many inquiries, I always tell people
that before you reach out to us, do your homework. Take the time
to learn about our company, our business strategies, and our current products and services portfolio. Even though we’re a global
corporation, we can move very quickly on ideas that help us to
advance our business strategy.
When you do reach out to us, be prepared to be able to
describe how your idea can benefit our customers. Starbucks
is in a unique position to connect with the consumer like no
other place I have seen. How we do that, and with what, takes
consumer understanding, so your input can help frame up
what success would look like!
Less is
More at
Land O’Lakes
All photos courtesy of Land O’Lakes Foodservice
r&d manufacturing insights
Bob Garrison, Chief Editor
H
ere’s proof, indeed, that “less is more.” In fact, one
of the most operator-focused and innovative new
products at Land O’Lakes Foodservice even has the
word “reduced” in the name.
Land O’Lakes says its Reduced Cream Base—an
“unbreakable” replacement for cream in soups and sauces—
Land O’Lakes executive chef Mark Petchenik, right, helps Edie
already appears to be a strong favorite among foodservice
Adams, corporate accounts manager, in an industrial kitchen.
operators since its August 2012 introduction.
As a division of the dairy foods and agricultural
co-op Land O’Lakes Inc., Land O’Lakes Foodservice
boards, groups of either K-12 foodservice managers and/or
develops, manufactures and distributes cheeses (process
restaurant operators, to help flesh out market needs.
and natural), butter, spreads, sauces,
“Typically, we will present product
prepared foods and on-the-go snacks
concepts to them for their review, as
to schools (K-12), restaurants and nonwell as go-to-market tools for their
commercial operations.
assessment and evaluation,” he says.
Behind the scenes, Land O’Lakes
“We also engage in conversations to
Foodservice says its two executive chefs
get their opinions on trends, issues
work directly with restaurants and other
and the on-going problems they may
foodservice customers to enhance their
face, which can help lead to future
menus with creative and flavorful solutions.
innovation. These boards are critical
Land O’Lakes also offers a professional
to gather insights, discover unknown
foodservice test-kitchen and culinary
opportunities and share new product
staff to assist with product application
ideas. We need these forums to share
and recipe development. Foodservice
and receive information, which is critialso draws upon shared resources at this
cal for innovation efforts.”
$13 billion food and ag co-op, which has
John Schmitz, vice president and general
Land O’Lakes says operator insights
more than 100 R&D scientists and an onled
to a new Italian cheese sauce, a
manager-foodservice, says Land
site dairy pilot plant at its Arden Hills,
versatile, shelf-stable product for K-12
O’Lakes relies on operator advisory
Minn., headquarters.
entrees, sides, dips and toppers. Operator
Of course, customers are critical to the
boards—groups of either K-12 foodser- insights also helped in the development
process. John Schmitz, vice president
of new, individually wrapped natural
vice managers and/or restaurant opera- cheese portions and cubes that give
and general manager-foodservice, says
tors—to help flesh out market needs.
Land O’Lakes relies on operator advisory
school foodservice directors more
www.PreparedFoods.com
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November 2012
55
r&d manufacturing insights
Land O’ Lakes Foodservice’s Italian cheese sauce is a versatile,
shelf-stable sauce for K-12 entrees, sides, dips and toppers.
nutritious options for breakfast, lunch and on-the-go snacking, and that appeal to students of all ages.
56
November 2012
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www.PreparedFoods.com
Land O’Lakes officials say they also are excited about the
Reduced Cream Base. The product resists breaking, burning
or scorching; maintains its consistency without separating
(even under long hold times); and withstands multiple heatchill cycles.
“The product is already reduced, using 50% less cream to
deliver the same rich flavor of regular cream, when preparing
high-quality soups and sauces quickly, easily and consistently,”
says Schmitz. “Not only does Reduced Cream Base save time,
but it also allows operators to standardize their menus across
their operations. One operator, in particular, was happy that he
could now serve many of his patrons’ menu favorites across all
his other locations with the same consistency.”
Schmitz says Land O’Lakes appreciates its involvement with the International Foodservice Manufacturers
Association (IFMA) and IFMA’s Center of Innovation
Excellence (CIE) project.
“IFMA’s CIE learnings have helped us benchmark our
efforts against best practices in the industry around areas
such as ‘customer intimacy’ and a disciplined Stage-Gate
[International] process,” he says. “We, along with the entire
industry, have benefited from outside perspectives on how
important new products are to our overall mix and the
industry-leading processes that our peers are putting into
place to win with new products.”
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