The launch of new ingredient products, targeted at food manufacturers and food service channels, increased significantly in the first quarter of 2010, as ingredient producers began to see the economic recovery stimulate more activity in their markets. More and more new ingredient products are using trade brand names as part of their launch in an effort to attract customer attention. A well-defined and communicated brand name helps differentiate an ingredient product and supports a premium price.
Trade brand names function like consumer brand names—providing an identity and offering value-added positioning. One of the best examples of trade branding in recent years was ConAgra Mills’ launch of Ultragrain® whole wheat flour. A niche product originally called Microfine by the manufacturing techs, Ultragrain now has major market share in baking, manufacturing and food service channels, and even has its own branded line of consumer products. You can see a case history on Ultragrain here.
One of the better articles on ingredient brand names was published in Functional Ingredients Magazine. The article “Banking on Brands” by Joysa Winter contains some good tips and tricks on developing ingredient brand names.