The beverage market is shifting. Traditional beverage groups are seeing very little growth, as consumers are seeking new solutions. Health, naturalness and lightness are in. Hartwall is now about to redefine the beverage market with two innovations: 100% natural Hartwall Jaffa Smoothies and the carbonated Hartwall Novelle Calcium waters.
An innovation is a commercial product or service solution with a substantial novelty value that provides clear new benefits or advantages to consumers. It satisfies a consumer’s needs in a novel way or through a new usage context, for instance.
Hartwall is the innovative leader in the beverage industry. Every year, the company rolls out 3-5 true innovations and a total of about 100 new product items. The company invests about EUR 1.5 million in innovation R&D annually.
“As consumer needs change, innovations are playing a greater role in all our operations. We estimate that innovations will generate 10-15% of our revenue this year. In the long term, they’ll account for an even higher share of the sales margin,” says Hartwall’s Managing Director Yrjö Närhinen.
“Now is an important time to invest in innovations. That said, Hartwall has changed the face of the beverage market throughout its history. Hartwall was the first producer of mineral waters in the Nordic countries, rolled out Hartwall Jaffa in 1949 and developed long drinks. Our latest innovations are flavoured mineral waters, Upcider Natural ciders, Hartwall Fenix health drinks as well as Hartwall Novelle Friss and Fruity,” says Närhinen.
Innovation springs from a focus on consumers
A focus on consumers is at the heart of all innovation. Consumers are involved in all phases of the innovation process.
“At the strategic level, we study consumer motives and usage contexts, purchasing behaviour, trends in consumption and purchasing both in Finland and elsewhere, and interpret silent signals of future trends. Consumers are closely involved in coming up with ideas and participating in development efforts, both in the concept research process and during actual product and packaging research,” says Närhinen.
In order to come up with innovations, you need to consider a huge number of ideas. Out of all the ideas that are either generated in-house or submitted to Hartwall, about 300 are tested out among consumers every year. Around 100 lead to the development of product solutions – these concepts then undergo further research.
“Even as we speak, 70 product development projects are in progress at Hartwall. Several of these will probably be launched in the years ahead, while some will never see the light of day,” says Närhinen.
On average, Hartwall launches 30 new products a year and a total of approximately 100 new product items. Annually, 3-5 of these are true innovations.
Hartwall has also developed new solutions for collecting ideas. Anyone can send an idea for consideration through the Ideafoorumi on Hartwall’s Internet site. This idea may concern a new product or service, way of working, packaging, marketing or anything else. The best ideas are implemented and the persons who came up with them are rewarded.
Health and naturalness are the megatrends driving innovations
Today’s major global consumer trends are naturalness, health and lightness. Consumers expect new solutions – including new beverages – to cater to these needs.
“About a quarter of all beverage consumption by Finnish consumers is motivated by naturalness and health. These characteristics are sought after in a growing number of beverage groups,” says Närhinen.
Naturalness and health are key words for Hartwall’s innovations this summer, too. The Hartwall Jaffa product family will expand to an entirely new beverage group with the introduction of the Hartwall Jaffa Smoothie line.
Smoothies are beverages made from fruits and berries that have a thick, milkshake-like consistency. They are made only from fruit and contain no additives or preservatives. Hartwall Jaffa Smoothies come in two flavours: Peach-Orange and Strawberry-Banana. They are sold in 0.33 litre packages.
Hartwall Jaffa Smoothies will also be stocked in freezer display cases in the summer, as Hartwall will launch two sorbets in co-operation with Ingmann. The same flavours will be available, Peach-Orange and Strawberry-Banana.
Fresh calcium for strong bones
The Hartwall Novelle product family will also be expanded with new kinds of products. Our latest innovative water is the delicious, zero-calorie and lactose-free Hartwall Novelle Calcium. It is a good source of the calcium required to keep your bones and teeth strong. One 1.5 litre bottle provides the daily amount required by adults, 800 mg of calcium. One 0.5 litre bottle in turn contains one third of the daily calcium requirement. The new beverage comes in two flavours: Hartwall Novelle Calcium Citrus and the mango-peach flavoured Hartwall Novelle Calcium Hedelmäinen.
Light drinks still growing
Sales of light soft drinks have grown during all of the 2000s. Light soft drinks already accounted for 41% of soft drink sales by the grocery trade in 2007. As many as 52% of the soft drinks sold by Hartwall were light (ACNielsen).
Flavoured waters are also delicious, yet light. Hartwall Novelle Friss is a line of fructose-sweetened waters with natural flavourings. The light and natural Friss only contains 10 kcal per 100 ml. In the summer, the Hartwall Novelle Friss line will be rounded out with a tasty raspberry flavour.
PepsiCo’s H2Oh! waters are newcomers to Hartwall’s range. H2Oh! is a flavoured and lightly carbonated drink that comes in two flavours: H2Oh! Apple and H2Oh! Lemon-Lime.
Finland’s leading sugar-free cola, Pepsi Max, will launch a new sugar-free cola flavour. The fresh Pepsi Max Mojo, inspired by hot salsa rhythms, is flavoured with lime and mint.
Hartwall’s innovations change the face of the cider market
Hartwall is also driving the evolution of the cider market. Upcider Natural, launched in 2005, was the first line of natural domestic ciders. Among other accolades, it was awarded a gold medal by a jury of experts at the Helsinki Beer Festival.
At the beginning of 2008, Upcider revamped its packaging and look. The new green longneck bottle – which is recyclable plastic – has been extremely well received by the market.
Upcider will expand its popular range of light ciders for the summer – as many as half of the ciders sold by stores in the summertime are light. The new light Upciders are Strawberry and Blueberry, combining the delicious fresh taste of berries with the lightness people crave in the summer. Both ciders only contain 30 calories per 100 ml. The new flavours are packaged in half litre cans. Upcider Light Strawberry also comes in 0.33 litre glass bottles.
For additional information, contact:
Hartwall Ltd, Managing Director Yrjö Närhinen, tel. +358 20 717 2328;
Pasi Kuosmanen, Business Team Director, Beverages, tel. +358 20 717 2404;
Pekka Tola, Marketing Manager, LADs, tel. +358 20 717 2042;
External Communications Manager Tuija Kleimola, tel. +358 20 717 2595, tuija.kleimola@hartwall.fi
Photos: http://kuvapankki.hartwall.fi