Limited-time offerings drive festive beverage innovation, Kerry analysis flags

21 Dec 2022 --- Smart innovation will rescue beverage producers this festive season, helping operators to stand out from the competition and meet the top three limited-time offerings (LTOs) of the moment, according to an analysis published by Kerry. 

“The consumer of today’s state of mind sees them consistently expecting more from what they eat and drink out-of-home. With economic pressures meaning they are more concerned with what they purchase but are willing to spend more for a real experience,” Daniel Sjogren, vice president of Europe food service at Kerry, tells NutritionInsight. 

Examining more than 250 LTOs across 13 countries in Europe, the new Art of Taste and Nutrition 2022 festive analysis categorizes the top beverage platforms and flavors while looking at global future trends and influences.

The top three LTO trends are “added value,” “indulgence versus health,” and “format innovation.” 

“Therefore, in 2023, we will see more classics with a twist instead of completely new creative solutions dominating LTO programs,” Sjogren explains.

“For limited-time beverages, this means that they want great taste firstly, but also novel offerings that meet multiple need states and are made in a socially responsible and sustainable way. They also want more variety, and they want all of this to be convenient to them – while adding value to their lifestyles,” says Sjogren. 

Flavors for multiple formats
A key finding shows that operators are finding ways to do more with less, focusing on flavors they can launch across multiple new formats.

According to the Kerry analysis, consumers are craving festive beverages that meet multiple needs. Traditional Christmas flavors such as chocolate, gingerbread, caramel, hazelnut and cinnamon have persevered as consumer favorites, according to Kerry’s research into food service beverages.Chocolate, gingerbread, caramel, hazelnut and cinnamon are 2022 favorites in beverage launches this festive season. 

“In terms of festive beverages, a great start for food service operators is to take one of their more indulgent drinks, such as a flavored hot chocolate and use that sweet chocolate powder base to reduce sugar in other ingredients,” says Sjogren.

This will offset any sensitivity to sweeteners that consumers may have and give back that mouthfeel and sweetness of real sugar.

“In our report, we have an example of a “candied ginger hot chocolate” recipe created by our beverage specialists. This is crafted with a DaVinci Gourmet sugar-free caramel syrup to reduce sugar and calories while still giving that full flavor, mouthfeel and indulgence for the Christmas season.

In a rapidly changing market with inflation impacting consumers’ spending power, LTOs need to drive menu exploration based on the latest consumer drivers while also being conscious of cost. 

LTOs are being used to differentiate and stand out from the competition as consumers are more discerning when choosing where and when they purchase beverages that need “added value.” 

While indulgence is a key part of festive options, there is a growing trend of healthier “better-for-you” beverages as consumers look for treats that are also nutritious (indulgence versus health).

Beverages associated with health benefits, sustainability and better nutrition are in high demand. 

The company’s research into food service beverages shows consumers are seeking flavors that they link with health and nutrition benefits, such as strawberry, lemon and mango, but are also seeking excitement and a sensory experience through newer formats like Frappuccino and bubble tea.

In the format innovation movement, food service outlets try to keep costs to a minimum by launching one or two flavors across multiple formats.Consumers find beverages with reduced sugar content equally important as indulgent ones. 

Balancing sugar content
Operators offering solutions that balance better nutrition with great-tasting beverages will win consumers over. Sugar content overtakes fat and salt as a critical concern in the food service channel across Europe.

To support food service brands with this challenge, Kerry developed a proprietary technology called TasteSense Sweet. This flavor modulation technology allows manufacturers to achieve up to 30% sugar reduction while delivering balanced flavor, sweetness, and overall mouthfeel. 

“For operators to stand out next year, there is an opportunity to innovate from the core menu by optimizing nutrition and lowering sugar,” Sjogren outlines.

One of the main obstacles when reformulating a product with less sugar is preserving the taste and mouthfeel of the beverage, on which consumers will not compromise, highlights Sjogren.

“When sugar is reduced, sweetness is compromised, sourness increases, mouthfeel and viscosity is challenged, and off-notes may emerge. A poor sugar reduction can disrupt the entire profile of a product and can result in lower consumer preference due to less flavor, complexity, fullness and balance,” Sjogren explains. 

“We will also see more work around menu designs to include communication around sustainability efforts, which we know increase consumers’ propensity to purchase.” 

By Inga de Jong