Food and Beverage Formulation

Challenges in Food and Beverage Formulation

Formulation is one of the most decisive steps in innovation. In the Food and Beverage industry, the Research & Development teams face important challenges such as business constraints, cost management, recipe simulation and versioning, updates and mass replacement.

Raw material prices are an essential aspect to take into consideration when formulating recipes. On the one hand, prices are important to determine which raw materials to choose in a formula, on the other hand a price change can affect the total cost of a product already on the market. Food companies are extremely anxious about pricing fluctuations and require a highly effective cost management.

A comprehensive allergen management should also be implemented. It is crucial to correctly manage allergens, such as peanuts, shellfish, etc., and health claims, such as vegan, gluten free, organic, etc., when creating new recipes. However, an appropriate allergen management requires to always comply and stay up-to-date with the latest regulations.

Therefore, it can quickly become challenging having to manage all requirements, yield, loss, raw materials and manufacturing costs, etc., while managing different versions of a recipe. Indeed, manufacturers assess their product formulations and recipes continually, to ensure that business targets are met. At the same time, businesses have to comply with customer and regulatory requirements, in order to maintain product quality and profit margins.