Innovation Day for the fourth time this year

This article is available for reading in Trade magazin 2024/6-7

Zsuzsanna Hermann
CEO-editor-in-chief
Trade magazin

International innovation trends

Zsuzsanna Hermann, CEO and editor-in-chief of Trade magazin opened the event, who briefly summarised the state of play in the FMCG market. She told that the innovations that entered this year’s competition are really something to be proud of.

Júlia Dalmadi
founder
TransFoodMission,
Secontaste

Júlia Dalmadi, founder of TransFoodMission and Secontaste presented how the food industry can respond to sustainability challenges. She illustrated the situation by highlighting three key areas: soaring commodity prices, resource exploitation, and food waste.

In connection with the sustainable use of resources, Júlia Dalmadi mentioned the collaboration between Starbucks and the Dairy Farmers of Canada, which supports dairy farmers who are switching to environmentally friendly farming practices.

She stressed that upcycling as a form of innovation not only brings environmental benefits, but also economic advantages: it creates value from production waste.

One of the highlights of the Innovation Day was the roundtable discussion on plant-based alternatives

Innovation trend = alternative

There was also a roundtable discussion, moderated by Dr Beáta Olga Felkai, deputy state secretary of the Ministry of Agriculture. Participants in the discussion were Tamás Éder, president of the Hungarian Meat Industry Federation, Zoltán Harcz, managing director of the Dairy Board, Beáta Kápolna, offer management director of METRO, István Miskolczi, CEO of the National Association of Plant Based Food Manufacturers and Distributors (NÉGYOSZ), and Attila Vörös, managing director of the Federation of Responsible Food Manufacturers (FÉSZ).

Tamás Éder
president
Hungarian Meat Industry Federation

According to Tamás Éder, less than 1% of the world’s meat consumption is alternative products, but some predict this proportion could be as high as 6-7% percent in 10 years’ time. In Hungary there are also several companies producing both meat products and alternatives, but the demand for plant-based meat substitutes isn’t big enough to generate sufficient profit.

Zoltán Harcz
managing director
Dairy Board

Zoltán Harcz reckons the dairy industry is the most innovative sector, as in an average supermarket you can find hundreds of different milk and dairy products on the shelves – unfortunately not enough of these are produced domestically. He is proud of the fact that Hungarian dairy processors all make lactose-free products, but the proportion of imported desserts, butter, cheese and yogurt is very high.

István Miskolczi
CEO
NÉGYOSZ

István Miskolczi thinks there is no need for a debate about what we call what, since consumers in this segment know exactly what they are buying, so the term “almond milk” isn’t confusing. We don’t need more rules: the focus should be on stopping truly misleading practices. It is important to remain open attitude-wise, because whether the customer is looking for plant-based foods due to animal welfare, sustainability or health reasons, they have to be served.

Attila Vörös
managing director
FÉSZ

Attila Vörös pointed out that Hungary accounts for less than 1% of the EU’s food processing industry. The Hungarian market is slowed down by a strict regulatory environment, extra taxes and administrative burdens, which leave few resources for innovation. From a technological perspective, Hungarian firms have a big disadvantage and the same is true for workforce efficiency.

The house was full with attendees interested in innovation at our Innovation Day conference again this year

Dr. Beáta Kápolna
purchasing director
METRO Nagykereskedelem

Dr Beáta Kápolna told that sustainability and modern technologies are playing an increasingly important role in METRO’s supplier strategy, which is also reflected in the continuously expanding product selection in these categories. She underlined that smaller, innovative businesses can get a significant advantage in the food industry, by being able to react to market needs faster and adapt to new technological trends.

Dr. Beáta Olga Felkai 
deputy state secretary 
Ministry of Agriculture

Dr Beáta Olga Felkai pointed out in her summary that today the motivation for plant-based innovations can be diverse: some consumers are attracted by them for health reasons, while others are driven by curiosity, and many people use these products for sustainability reasons. As regards meat substitutes, sales have increased by about 20%.

Consumers are experimenting less at home, but they are more open when they eat in a restaurant.

What does an investor need?

Levente Balogh
CEO
Szentkirályi Magyarország

Levente Balogh, the CEO of Szentkirályi Magyarország shared the news that currently he is a partner in an AI start-up that develops AI solutions for web shops. He believes AI is key to increasing business efficiency and addressing the problem of labour shortage. In his view brand building is the foundation of business success.

He identified the three pillars of a brand’s success: product technology, good marketing and professional sales. A well-established brand that builds a tradition communicates quality, which gives a crisis-resistant consumer confidence and increases the market value of the whole business.

Dr György Tilesch, founding president of the PHI Institute for Augmented Intelligence and AI expert was interviewed by Zsuzsanna Hermann.

According to Dr. György Tilesch, the use of AI is already essential for FMCG companies in order to improve supply chain efficiency, increase productivity and reduce operational costs

Dr. György Tilesch
founding president
PHI Institute

He told that a large part of Asia is strongly pro-AI, with an 80-85% backing behind the technology. By contrast in the US little emphasis has been placed on developing a coherent social vision for AI. Europe shows a different scenario: it is approaching AI primarily through regulation.

AI technologies are more and more able to solve complex problems, such as predicting consumer behaviour or optimising inventory management. This is particularly relevant for FMCG companies.Retail innovációk és vásárlói igények

Krisztina Bakonyi-Kovács
senior consultant
CPS GfK-YouGov

According to Krisztina Bakonyi-Kovács, senior consultant of CPS GfK-YouGov, consumers have learned something from each and every crisis in recent years.

Most shoppers try to spend less on FMCG products and buy only what they need the most, preferably private labels at lower prices. Price and shelf life have become more important when buying food, while many other aspects such as nutritional value, quality and Hungarian origin have lost importance. However, it is worthwhile for brands and retailers to invest in innovation.

CPS GfK’s aggregated European data confirms: during a recession investments in product development and new product launches tend to pay off in terms of both market share and profit in the next expansion period. Regaining customer confidence is important not only for brands, but also for retailers who have been negatively affected by the crisis reactions of customers.

Five categories, 26 winners

This year’s certificates of recognition and glass prizes were awarded to 26 applicants at the awards ceremony in May

Congratulations to all this year’s winners on behalf of the Organizers, the Jury and the participants at the Awards Ceremony!

The happy winners of “Best of the Best” and “Pioneer of the Future” awards and the award presenters on stage

Dr Beáta Olga Felkai and Zsuzsanna Hermann presented the awards to the winners, who are allowed to use the “Inno d’Or – Innovation of the Year 2024” title. //

A unique Hungarian innovation substituting dairy products of animal origin – such as cottage cheese or sour cream – with egg whites. //

Opera Cocktail Series – Ready to drink, bottled cocktail range – Első Magyar Gin Manufaktúra Zrt.

Reflecting the evolution of the global alcohol market, this is an absolutely trendsetting, ready-to-drink, bottled cocktail range for the domestic market. //

Whisky Illusion and Aperla Illusion – Kikimix Co. Kft.

Lacto-fermented juice – FineSzeS Food Kft.

Faster display is a revolutionary new plastic-free cardboard display, which takes no more than 20 seconds to assemble. //

Respray combines an innovative valve and nozzle technology with a refill station that makes it possible to refill bottles in-store, thanks to a variety of functions. //