Launch more innovations, but hardly succeed in the supermarket – Investing.com Spain

MADRID (Reuters) – Manufacturers of branded foods, drinks and drugstore broke in 2015, a five-year trend downward in the number of innovative products brought to market, but just they got they triumphed among consumers through a difficult access to distribution, according to a study of the association that groups them.

the sector complains that many of the developments just have a presence on the shelves supermarkets and therefore are doomed to failure, in a market dominated largely by distributors as Mercadona or Lidl basing its strategy on a strong own white label and a few brands of leading manufacturer market, according to the manufacturers association Promarca.

Faced with the prospect of stagnating population, manufacturers warn that the market will only grow in the medium term if products that provide significant developments, that encourage consumers to pay more for them, instead of introducing trust in white marks or distributor

the number of innovations. – products that provide for the first time a significant new feature as the first lactose-free milk – rose 9 percent to 118 products in 2015, although still accumulates a decline of 25 percent in five years, according to the “Innovation Radar” study by the consulting firm Kantar Worldpanel for Promarca.

But despite being in a more favorable environment for innovation in a market that grew and with a more optimistic and more willing to spend consumer environment, the failure rate in the launch of innovative products soared from about 55 percent in 2014 to almost 70 percent in 2015.

“The consumer can only buy what is available. If only in one of every 5 shops, not can buy, “said Ignacio Larracoechea, Promarca president, in a press conference in Madrid.

For Mercadona, the market leader with a share of 22 percent, and Lidl, one of the operators that grew last year and has a 3.7 percent market share, just referenced 1 in 10 innovations.

At the opposite end, the French Carrefour (PA is the most favorable for innovation, as it includes in its stores 7 out of 10 innovative new products, while other chains such as Day (MC or are in a Consum average in 3 out of 10 innovations.

” Two out of three chains who have not bought innovations, yes working with these brands, “said Larracoechea on a study that provides access to new products is almost 25 percent lower than in 2010.

the agreements between distributors with large purchase agreements at more competitive prices partly explain the low penetration of developments in some large areas and the trend to new agreements to improve margins is an element of prime concern for big brands.

“just like in Spain we find only 3 or 4 buyers in a year,” said the president of Promarca regarding purchase agreements between distributors.

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