Starting a Food or Drink Business?

Launching a new food or drink product is exciting yet challenging. We hope this short “how to guide” will outline the areas you should consider when developing and launching a food or drink business

Understanding the market and identifying competitor products can assist with finding a gap in the market for a new product. To achieve product success, products must be different than what is currently available and fulfil a consumer demand/issue.

Target Consumer - Think about the type of consumer who will purchase the product, this will highlight important characteristics
Drivers of Purchase - is it cost? Is it convenience? It is more environmentally friendly? It is healthy? It is made with local ingredients? It is an improved flavour or texture profile?
Routes to Market - explore different options for selling the product, ensure this is a staged process as the business grows
Competitor landscape - identify similar products on the market, noting their price, portion size, branding, ingredients, customer reviews, packaging
Market Trends - aligning the product with market trends can assist with growth

It is important the product is feasible, scalable and legal. It will be beneficial to hire a food product developer to take a product concept to a fully scoped formulation, in line with legal requirements and food safety regulations.

Our team are experienced food product developers and we happy to help with any size of project, we work closely with our clients to ensure the products we develop are in line with your goals. Contact us today; HelloSCFDI@qmu.ac.uk

Legal requirements - ensure ingredients are legal in the country the product is intended to be sold in, ensure ingredients are not considered a novel food and ensure additive ingredients are within their permitted levels.

Product analysis - when product development is finalised you will require shelf life testing and nutritional analysis of final product at a UKAS accredited lab. Shelf life is determined by safety and quality, the quality aspect needs to be assessed by the company in-house as the product quality may decrease quicker than the product safety.

Consumer testing - providing prototypes to target consumer group can drive the product development process and ensure products are in line with consumer acceptability. Our team can carry out consumer testing on any type of food and drink product

Food labelling - the FSA in the UK govern what is required on food labelling in the UK, labelling can be straight forward for some products and more complex for others

It is important to consider packaging options for the product, packaging consultants can assist with challenging / innovative products.

Product packaging can play a significant role as it can impact the shelf life of the product, supply chain and the consumer experience of your product.

Considerations for packaging;

Tamper evidence - all packaging needs to include tamper evidence so the consumer can identify if it has been tampered with
Sustainability - legislation was brought in to limit Single Use Plastic Regulations
Weight of packaging - packaging which is heavier can add cost onto supply chain
Stand Out - does it look different from competitor products on shelf? Is this a positive or a negative?
Resealable - does it need to be resealable for the consumer?
Increases Shelf Life - does the packaging need to assist with increasing product shelf life?

The formulation now requires scale-up to production for sale and optimise the production process.

Two routes; co-manufacturing and self-manufacturing

Co-manufacturing is a popular option for start-up companies. Co-manufacturers are already established food or drink businesses that can manufacture products for other businesses. There are many co-manufacturers for specific product categories, it is important to source one which has the correct requirements. Contracts will be put in place to protect the business and co-manufacturer.
Self-manufacturing will involve establishing a manufacturing facility. The premises will need to be food grade and fit for purpose. Once the premise is set up contact the local Environmental Health Officer (EHO) to review and certify the premises before progressing to first production.

All food businesses (regardless of self or co-manufacturing) need to register as a food business in the UK.

Creating a brand identity is important in the competitive market. There are many design consultants in the UK to assist with bringing a brand vision to life.

Brand Name - create a brand name that is easy to pronounce and memorable
Logo - create a logo that is distinguishable and eye catching on a shelf
Brand Messaging - portray business values, beliefs and create talking points

It is important to market the product to target customer. How to get product in front of target customers? Does it require targeted advertising? Each social media platform offers unique features that enable start-ups to tailor their approach and connect with target customer.

We have summarised the support for Scottish businesses below;

Business Gateway
Interface
Scottish Enterprise, South of Scotland Enterprise, Highlands and Islands Enterprise
Scotland Food & Drink
Food & Drink Federation Scotland
Trade Association Memberships for specific product categories
Innovate UK
Small Business UK

Funding Competitions;