‘Citrus’ beats ‘berry’ in new product pricing
Insight by Gama Compass™
MANCHESTER – 23rd February 2016: Orange and lemon flavours are associated with premium claims and higher price points, while strawberry flavours are especially common in Latin America and in launches targeted at children, the latest information from Gama Compass™ indicates.
For this month’s study of trends and patterns in new product launches, Gama has pinpointed the five leading fruit flavours in global innovation over 2014 and 2015 – strawberry, apple, orange, lemon and raspberry – and examined how these flavours are distributed according to a range of variables across the food, drinks, health & beauty, household, pet care and tobacco industries. What emerged were, in many cases, clear distinctions – some broadly anticipated, some perhaps less evident – in the use of the five different flavours when each was analysed by factors such as product category, geography, shelving, claims and price.
The fact, for instance, that citrus-flavoured launches appeared to command a higher price point among new food and drinks introductions was one of the more immediate findings of the study: the average price of orange and lemon flavoured food launches per 100g working out at $2.52 and $2.00 respectively, compared to a range of just $1.52 - $1.62 for apple, strawberry and raspberry. The general pattern for a price premium on citrus flavoured launches was echoed in the claims made about new product introductions, with 3.4% of orange flavour launches and 3.1% of lemon flavour launches promoted as ‘premium’ or ‘luxury’, compared to just 1.4% of strawberry flavour launches, 2.1% of raspberry flavour launches and 2.4% of apple flavour launches.
Elsewhere, a further example of a distinction between the leading ‘citrus’ and ‘berry’ flavours occurred in products with specific demographic positioning. In particular, a significant 14.0% of products targeted at children opted for a strawberry flavour, compared to a global average of just 3.5%.
Source: Gama Compass™
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