New Products Can Drive a Kosher Business
There was a time not too long ago that the kosher industry was made up of a predictable mix of products. Customers could rattle off products and manufacturers with the expectation that they were fixed assets on supermarket shelves. But then came the dramatic expansion of the industry with thousands of new products giving the kosher consumers an unprecedented array of choices and an end to the era of predictability. Manufacturers that were known for a given line of products began to diversify in an effort to capture a greater share of shelf space. New companies that had never been part of the kosher mix opted for kosher certification. And most importantly the younger kosher consumer was not satisfied with the status quo and clamored for more and more kosher products including gourmet, health, organic and the like.

Today, the evidence is clear: new products can help drive sales. New and different products can even expect to operate on larger profit margins than the more traditional products that may be subject to cut-throat competition. There is every indication that today's kosher consumer, 70% of which are under the age of 40, will experiment with new products, making the risk worthwhile for manufacturers. The criterion for success has not changed. Quality, packaging, and usage are still very important as is to some extent price, depending on the product. A supermarket executive recently told me that only 1 in 5 new products manage to stay on his shelves, but he added: "those that make it really make it," meaning that they remain on the shelf long-term and can ultimately add up to a nice piece of business. The winners of this year's Kosherfest New Product Competition will no doubt reap the benefits of being recognized at the show, just as their predecessors have. They invested into delivering a superior product, which makes them ripe for success. Producing a good new product is more than a good idea: it is a potential moneymaker.