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  • dave6093

Transforming Commodity Food Products into Value-Added Gold Mines

Recently, I had the privilege of assisting a commodity food manufacturer, specializing in puffed rice, to unlock the doors to a whole new revenue stream. 

The challenge for any company launching a new product, lies in transforming a commodity into a marketable, value-added product that aligns with current trends and consumer demands.

In the case of our puffed rice manufacturer, they approached me seeking assistance in creating a new product in order to make the most of the available partnership with a retail giant like Costco.

Lacking the creativity and market knowledge needed to develop a compelling product, they were at risk of missing out on a significant opportunity. 

To address this, I implemented a comprehensive 5-step process that serves as a roadmap for food manufacturers looking to turn opportunities into successful product launches:

  • Market Research and Product Development: We creatively analyzed the existing market and identified opportunities to add value to their existing line of products. Understanding the latest trends and consumer preferences meant they could tailor their offering accordingly.

  • Food Safety and Quality: We then ensured their product met all the regulatory standards and safety guidelines. In our case, the syrup application involved a careful process of heating to eliminate bacteria, guaranteeing the safety and quality of the final product.

  • Food Processing and Packaging:  We streamlined the production process by finding the right partners. In our scenario, we engaged with a co-packer to handle various stages, from puffing the rice to applying syrup and packaging the final product.

  • Regulatory Agencies and Food Regulations: We developed a nutritional statement and ingredients panel that complies with all regulatory requirements. It's crucial to ensure that your ingredients are legally permissible for use in food products.

  • Commercialization: We found the right partners to launch the product into the market. This product required a collaboration with co-packers, distributors, and retailers to ensure a smooth entry and widespread distribution.

By following these steps, the puffed rice manufacturer successfully transformed their product into a unique, marketable offering. 

Costco, with its stringent requirements, approved our Brown Sugar Boba Puffed Rice cereal flavor, showcasing the potential for significant market share in a $137M crispy rice cereal category. 

For food manufacturers presented with opportunities to create new products or lines, the key lies in navigating the journey from concept to launch effectively. 

Don't let lack of knowledge hinder your potential growth. If you are a food manufacturer that has an opportunity presented to you that you do not know how to capitalize upon, please email me . 

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