1. What is Product Innovation?
Perennia Innovation Center
Presented by Dr. Eric Albert, Chief Science Director
Perennia, NS

2. Goals Learn how to make the transition to commercial production
Gain understanding of how Innovation and Incubation pertain to your business
Learn what options are available to you and your business at Perennia for creating and packaging your products.

3. Goal 1
Learn how to make the transition to commercial production

4. Scaling up your current process
Scaling up your current process is never easy.
Taking the next step towards large scale production can be overwhelming and challenging.
Not a linear process
Opportunity to learn about your product and to perfect it.

5. Step #1: Know your Product
What the product is
Scale up may change the characteristics
What is your target market?
Who is the consumer?
What does the consumer want? Current consumers may be content with products available. In national and global markets competition is fierce.
Likely started in local markets, with friends and others nearby.
Move to large scale production and consumers could be across the Country or in other Countries
Always know your customer demographics:
Age group
Income level
Role and expectations of target consumers
What the product is:
Your product may have a homemade kind of image because it is produced in small scale in your home kitchen. When you produce in large scale, the quality characteristics of the product may alter. Changes in sensory characteristics such as flavour and texture are commonly observed as production is moved from small scale to large scale.
The quality characteristics of your product play a vital role in its market. They include appearance, flavour, texture, nutritional qualities, serving size, and package material, colour, and graphics. Flavour, texture, and appearance are the product characteristics that determine sensory quality of your product. Serving sizes become important when nutritional labels are used on the products, as weight and percent composition of nutritional elements would have to be listed in the labels. Another important aspect is product packaging. The material used for packaging can affect the shelf‐life of the product content whereas the colour and graphics on the package are critical to attracting consumers’ attention.
Who the consumers are:
Your consumers may have been residents of your friendly neighbourhood or nearby villages who buy your product in small stores or farmer’s markets. But when you move to large scale production, your consumers may be located across the country or even in another country. As your production scale changes, you need to be aware of the characteristics of consumers that are likely to appreciate your product. You should specify the age group, income level, and role of target consumers who are likely to purchase your product. These specifications will later affect your decisions on product pricing and where you will sell your product.
These specifications will later affect your decisions on product pricing and where you will sell your product.
What the consumers want:
Your current consumers may be content with the products available in the local market. When you are in the national or global market, the typical consumer is exposed to wider variety of products in the market, and their expectations are different; they will compare your product against others. You will have to identify the consumers’ acceptance and preference levels to increase the chances of your product’s success.
Affect product pricing and
where you sell

6. Step #2: Determine where your product stands
Product positioning
Where will it be placed in retail?
Will consumers differentiate it from the competition?
Changes to processing and packaging could move you from freezer or refrigerated to shelf stable
Know your competition
Competitors may use marketing strategies, extensive advertising, couponing, two for one sales etc.
Timing example: Launch of surimi when world crab supply were low. Opportunity presented itself for introduction of a replacement crab product. Worked and caught on
Potential Competitors:
You should not overlook the potential competition. Your potential competitors may use marketing strategies such as price cuts, extensive advertising, couponing, two‐for‐one sales, and even pressure on the retailers. You must ask yourself: are your marketing strategies and product attributes strong enough to withstand the competition? 7

7. Step #3: Know your Price Point
Must know your cost to Produce to know where your product will be priced
Could be based on return on investment, profit margins, other economic and accounting parameters
Most popular cost estimators:
Ingredients
Packaging
Labour
Distribution/shipping
Equipment costs / maintenance
Advertising and promotions
R & D support costs
Pricing of your product could be determined based on the financial evaluation of projected production cost, return on invested capital, profit margins, and other economic and accounting parameters. Most of the product cost is estimated from the following expenses:
‐ ingredients;
‐ packaging;
‐ plant labour;
‐ manufacturing;
‐ distribution;
‐ equipment;
‐ capital depreciation;
‐ advertising and promotion;
‐ supermarket slotting allowances;
‐ R & D support;
‐ organisational overhead, such as accounting, consumer services, and other managerial functions. t

8. Know your Price Point
The price cannot be separated from the concept of Value delivered by the product.
One way to view product value is the overall impact of the product on a consumer’s quality of life.

10. Step #4: Standardize your formulation
Product Quality and Consistency
Costs
Processibility
Shelf life
Safety
Availability
Quality: The quality of product ingredient that is most appropriate to the product should be specified. As part of process control records, Ingredient specifications are required to comply with good manufacturing practices and quality standards.
Variability: The variability of ingredient could affect the product characteristics such as colour, flavour, or moisture content. A set of performance specifications should be in place for large scale production.
Cost: Product ingredients with similar attributes could vary in cost. You must find the least expensive substitute that meets all the quality, performance, as well as shelf‐life criteria specified in the initial recipe.
Consolidation of ingredients by reducing total number of ingredients and suppliers could result in large cost savings due to increased manufacturing efficiency, improved supplier support, and better inventory control as well as decreased paperwork and coordination cost.
Processibility: Ingredients that you use in the production must tolerate the process.
Shelf‐life: The ingredients must have enough storage stability to allow adequate warehousing and distribution. Another thing to consider is storage time at consumer’s end as the consumer may store the food product further before it is prepared and consumed . Ingredients become important here
Safety: Each ingredient must meet strict specifications concerning its chemical, physical, and microbiological safety. Furthermore, safe handling practices must be assured for each ingredient.
Availability: Large quantities of ingredients must be in continuous supply. This may require some ingredient substitution in the initial recipe.

11. Step #5 Adapt and Innovate
Be ready to modify your processing methods
Cook times will vary when you increase batch sizes
Finished product yields will vary
Affects flavor, texture and other characteristics
Product may act differently when frozen and thawed
Very difficult to predict. This is why you test in small batch sizes and scale up.
Do this step by step in your process and not the entire process at once. Too many variables!
There are several factors that affect the final product quality during the scale‐up production. When you compare the production of 100 litres of frozen sauce with one pot of sauce made in the kitchen for immediate consumption, the following scenario can happen:
‐ The cooking time to soften vegetables may vary;
‐ The final product yield may vary which will affect flavour, texture, and moisture content of the sauce;
‐ Freezing step may break down the texture of the solid particles;
‐ The sauce may separate when frozen and thawed.
The efficient way to proceed is step by step or stage by stage, rather than by attempting to integrate all the possible operations at once. In most cases, adjustments have to be made in the scale‐up processing.

12. Step #6: Spend time on Packaging and get it right
Packaging is more than just a box or jar. Main goal is still to protect the product.
Primary packaging Vs. Secondary packaging
There are two types of packaging for processed foods: primary packaging and secondary packaging.

13. Step #7: Determine Product Shelf Life
Shelf life is defined as “the maximum amount of time a product retains customer quality expectations”.
To increase shelf life:
Lower water activity
Lower pH
Modify headspace gas composition
Thermal treatment
Use an additive
Ask a Food Scientist!!
Accelerated Shelf Life Incubator
Shelf‐life is defined as the maximum amount of time a product retains customer quality expectations. In most cases, before safety becomes an issue, the quality of the product has become unacceptable. The shelf‐life of a food product is vital to its success in the marketplace, and is an extremely important attribute for any product.
There are several ways to increase shelf‐life of your product. Lowering water activity and pH, modification of headspace gas composition, thermal treatment, and use of additives in the formula are common ways to overcome some of the microbial problems.
Emmanuel
Anom

14. Step #8: Pilot production to test the Marketplace
Make a larger volume or batch than you normally would and test the market……..get some feedback
Perennia can assist you with this.
Why use a resource like Perennia?
Investment in equipment and infrastructure changes can be extremely costly, especially when you are a start up.
Take advantage of renting equipment, facilities and the expertise to;
get your troubleshooting done
test the market
earn some revenue
perfect your product and process
REDUCE your RISK

15. Step #9 : Quality Assurance and Food Safety
Understanding good the acceptable practices and regulatory regarding food quality and safety is critical to your success.
Good Manufacturing Practice (GMP) guidelines
Hazard Analysis Critical Control Point (HACCP)
ISO 9000
Perennia’s team of specialists can help you navigate this landscape

16. Step #10: Regulatory Compliance
Provincial inspection and licensing
Federal registration and inspection
Products usually need to include the following:
ingredient statement
net weights / volume
expiration date / storage information
nutritional labelling
licenses or registration
Health claims
Safety instructions

17. Process and Equipment Scale up
Equipment choices become very critical
Evaluate costs associated with each type of equipment
Power costs
Certification costs (CSA approved)
Footprint in your facility

18. What not to do Do not become a victim of scope creep!!
People will become interested in what you do and will come to you with opportunities to collaborate or to make new products.
Choose new projects wisely
Should not be at the expense of your “flagship” product line. You need sales, not multiple R&D projects without sales.
A good balance of sales while always looking to the future and the new opportunities.

19. Learn what options are available to you and your business at Perennia for creating and packaging your products. and Gain understanding of how Innovation and Incubation pertain to your business

20. What is Innovation A new idea A new device or product
A new process or method
The act or process of introducing a new product, idea, device or process

21. Give them the tools…..they will build
Innovation does not just happen! Entrepreneurs need a Launchpad

22. Perennia Innovation Centre
Designed as a multi-functional facility opened for 3 years
20,000 sq ft building
6 tenants
Analytical Services and Innovative Method Development
Product Development Lab
Pilot Plant: Process development

23. Specialized equipment-Pilot Plant
Freeze drying
Shelf life studies
Packaging
Super critical CO2 extraction
Shelf-life extension

24. Specialized Packaging equipment

25. Semi-automated bottling line

26. Benefits of working in a business Incubator
Close proximity to mentors and other entrepreneurs = creation of new ideas.
Start up culture
Perennia Innovation Centre
TruLeaf
Sustainable Agriculture Ltd.
Martime BioExtracts Inc.
AgSeed
Technologies Inc.
Fundy Paint
Ltd.
Oceland Biologicals Ltd.
Cannahort

28. What Perennia can do for you
Need to know what Pam wants here

29. What is Product Innovation?
Perennia Innovation Center
Presented by Dr. Eric Albert, Chief Science Director
Perennia, NS