Failures in Functional Foods: 10 Key Case Studies & 10 Key Lessons

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56 pages, 13 colour illustrations, 6 charts and tables

The functional foods market is a highly complex one.  Success with a new product or ingredient in this harsh and demanding market is very rare.  In fact, failure is far more common than success and most products sell on a niche basis with very, very select few ever graduating into the mass market.

This one-of-a-kind report draws on the lessons that can be gleaned from functional food failures.  It is a unique study which examines brands that have either been withdrawn from market or have not performed as well as parent companies would have expected.  As well, it scrutinises ingredients that have fallen foul of the market or have appealed to such a small niche that they have not contributed to any increase in functional food sales.

The demise of brands such as Novartis’ Aviva; Unilever’s blood pressure-lowering drink; Delamere Dairy’s Top Life Prime Time: Danone’s Activ; Pfizer’s Body Smarts; and Marks & Spencer’s & More become the bases for five valuable lessons about branding, marketing, health claims and product differentiation.  The stories behind the languishing US sterols market, lactoferrin and lutein provide five lessons about the dos and don’ts of nutrition science commercialisation.

Each of the brands and ingredients covered in this case study are based on interviews with executives at the companies concerned.  They speak with considerable frankness as they describe the challenges they have encountered and overcome.  We have set their opinions in the context of our own analysis – which means that we do not always agree with some companies’ self-analysis – to create a template that is intended to be of use to anyone trying to develop a new product with health benefits or devise a strategy in health.

The categories that we cover in this report are:

  • Breakfast cereals and cereal bars
  • Dairy drinks
  • Confectionery
  • Water
  • Juice drinks
  • Ready meals

This 61-page report is authored by Julian Mellentin – an acknowledged international expert on the business of food, nutrition and health – the insights have been derived from over ten years of dedicated research in the area. Much of the research originates from work on our journal, New Nutrition Business – one of a very few industry publications dedicated to this important area – other examples have been gained from work with clients around the world.

About the author: Julian Mellentin is one of the world’s very few global specialists in the business of food, nutrition and health.

He is editor of New Nutrition Business, the long-established international journal on the global nutrition business (www.new-nutrition.com), which his company publishes, and Kids Nutrition Report (www.kidsnutritionreport.com), the only industry journal in the world focused on this rapidly developing business area.

Julian is co-author of Functional Foods Revolution, Healthy People, Healthy Profits?, the first-ever book on the business of functional foods, now translated into Japanese.  He is co-author with Peter Wennström of Commercialising Innovation: The Food & Health Marketing Handbook

Available in PDF only
39 pages
Publication Date: 28th May 2007


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