Leatherhead survey on technology investment

When Leatherhead Food Research questioned F&B companies on their priorities when investing in new technology, about 55% said that the main innovations needed still focused on the product – either to deliver better quality or new products. This despite big moves within the industry to improve sustainability and resource efficiency.

The survey showed that ‘product’ centred innovations outweighed ‘greener’ agendas for investment in emerging technology, yet the same population conceded that new technology was more important in achieving the step change required on those issues. Whilst emerging technologies were seen as being key to meeting strategic objectives – often the greener agenda, opinions were generally split as to whether greatest commercial gains would be from new or existing technologies; and with an expectation of product launches and return on investment coming within two to three years, it is easy to see why renovation is seen as the easier option.

Extending beyond the scope of the survey a little and considering the wider context of the questions, it may be fair to suggest that key issues such as fat and salt reduction are at the limit of the capability when considering existing technology. Health and wellness is being seen as a lower priority in terms of new technology, or that legislation has stifled the appetite for innovation in these areas. It is more likely however that salt and fat reduction are actually no longer considered part of the ‘health and wellness’ agenda but more of a more generic continuous improvement activity. Wider objectives such as ‘sustainability’ and energy efficiency may also be considered ‘out of scope’ for many NPD and R&D teams, possibly even unattainable even though the need is recognised to achieve the shift into next generation ‘greener’ technology.

The markets (and marketing investment) are still driven by product innovation and quality which is achievable through incremental improvement and renovation of existing technology. Such investment is much lower risk, and can achieve the required product launch and ROI expectations. With the need for exclusivity also being considered of importance to retain competitive advantage, this allows for progress and its associated knowledge to be retained in-house.