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Rate of success of new dairy products in the UK: how important are health and sustainable claims?

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  • Costa Font, M.
  • Revoredo-Giha, C.

Abstract

This paper estimates the rate of success of new dairy products in the UK. They are an important strategy applied by manufacturers and retailers when competing. In the current context of decreasing demand for dairy products, the strategy is seen as a way to recapture lost market. The purpose of this study is to measure the degree of uptake of new dairy products in the UK market and the effect that different attributes (e.g., health and sustainability) may have on their acceptance by consumers. We focus on products introduced in 2011 using Mintel s GNPD and their sales were followed up to 2015 using Kantar World panel data. The impact of attributes on the presence of a product in the market was assessed using the Cox s proportional hazards regression. Results indicated that new packaged products have more probability of being successful compared to other launched types. New developed yogurts is the category introducing more new products but with more risk to fail. The presence of convenience (ease of use) and sustainable (ethical) claims decreases the products rate of failure. However, the hazard rates are very small. The opposite was found for products with demographic or health claims. Acknowledgement : The work presented here derives from the Scottish Government Strategic Research Programme 2016-21 on improving primary produce and food and drink production (WP 3.1.1 and 3.1.2) and from the ERANET-SUSDIET project funded by Defra. We are also grateful to AES for funding our participation in this congress and to the SUSDIET partners for their comments. All opinions are solely from the authors.

Suggested Citation

  • Costa Font, M. & Revoredo-Giha, C., 2018. "Rate of success of new dairy products in the UK: how important are health and sustainable claims?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277087, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277087
    DOI: 10.22004/ag.econ.277087
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    1. Hubert Gatignon & David Gotteland & Christophe Haon, 2016. "Making Innovation Last: Volume 2," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-57264-6, December.
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    3. John M. Connor, 1981. "Food Product Proliferation: A Market Structure Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 607-617.
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