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Food Technology

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Food technology

Food product development

Yakult

In the core strand, Food product development, you will learn about factors which impact food product development and the steps in food product development. The following case study examines a current marketplace trend, that is, the inclusion of functional foods such as probiotics in the Australian diet. The environmental, social and economic implications of the Yakult food product are outlined from the manufacturer's point of view. It is also appropriate to use this case study in the option strand, Contemporary food issues - Marketplace, to analyse the trends and impact of probiotic foods. At the end of the case study you will find two questions and sample answers.

Outcomes

This material addresses aspects of the following syllabus outcomes:
H1.3 The student justifies processes of food product development and manufacture in terms of market, technological and environmental considerations
Source: Board of Studies NSW, Stage 6 Food Technology Syllabus, Preliminary and HSC Courses (1999)

Yakult case study

Origin of the food product

Yakult originated in Japan in the 1930s and was developed by Dr Minoru Shirota. Yakult is now available in 17 countries around the world:

Japan	Taiwan	Brazil	Hong Kong
Thailand	Korea	Philippines	Singapore
Guam	Mexico	Indonesia	Australia
Netherlands	Belgium	United Kingdom	Germany
Argentina

Manufacture

• Manufacturing plant in Victoria features an on-site laboratory.
• Offices and distribution centres are located in the following states and territories: Victoria, New South Wales, Queensland, South Australia, Western Australia and Tasmania.
• Australian ingredients are used for the manufacture of Yakult.
• Consists of cultured Lactobacillus casei Shirota strain, skim milk powder, sugar, flavours and water.
• There are no artificial colours and flavours in Yakult. A 'just-in-time' system of production is followed, which means Yakult is manufactured on demand to ensure the product is always delivered with a full shelf-life.
• Polystyrene bottles are packed in groups of five in polyethylene wrap and then packaged into a slab for distribution (a slab consists of ten five-packs, that is 50 bottles). The polystyrene bottles are made from a food grade plastic and are a number six on the Plastic Identification Code. The bottles are sealed using a foil lid, which is not resealable to ensure that the product is consumed upon opening. This minimises any risk of contamination once opened.
• A pack consists of five bottles, which is consistent with the statistics from the Australian Bureau of Statistics, which states that the average Australian family consists of two adults and two to three children. The slogan for Yakult is 'Every body. Every day'.

Marketing

• Based on the idea that unbalanced diet, stress, natural ageing and some medications, especially antibiotics, can cause an upset in the balance of beneficial bacteria in the intestines.
• It is recommended that the product be consumed on a daily basis for maximum benefits.

Distribution is through two systems:

1. Warehouse system: Yakult is delivered directly to the warehouses of major supermarkets, for example, Coles, Woolworths, Franklins. From there, the product is distributed to individual stores.
2. Direct delivery system: Yakult is delivered to independent supermarkets, health food stores, milk bars and hospitals by highly trained customer service consultants to ensure the prouduct is always fresh and stored correctly.

Advertising is carried out through:

• Television
• Radio
• Magazines
• Newspapers

Implications for the Australian economy

Yakult Australia:

• supports local product through purchase of raw ingredients
• is a wholly owned subsidiary of Yakult Honsha in Japan, and the money generated stays in Australia to fund further developments and expansion
• employs approximately 100 staff directly in Australia.

Environmental implications

• There is insufficient volume of polystyrene used to make recycling viable. It is recommended users crush the bottle to reduce landfill.
• There is negligible waste in the manufacture of Yakult, as 99.9% of the raw ingredients that go into yakult end up in the final product.

Management strategies to improve Yakult

• Market both a five-pack and a seven-pack because some consumers feel a five-pack is an inappropriate size.
• Educate consumers about the option of adding Yakult to other food, for example, add Yakult to cereal with other milk, add Yakult to a milkshake.
• Inclusion in breakfast menu for McDonalds.

The Yakult Information Service (YIS)

The YIS plays an integral role in the promotion of the product through its education service.
Staff include a fully qualified microbiologist, nutritionists and teachers.

The YIS offers a range of free activities, resources and educational services to health professionals, community groups, consumers and educational establishments.

More information?

For more information on Yakult Australia Pty Ltd you can visit the web site at

www.yakult.com.au

Activity

1. Conduct a SWOT analysis of Yakult.
   SWOT is a marketing acronym for strength, weakness, opportunity and threat. It is used by marketers to determine the status of a product in the marketplace.
2. Analyse the commercial practices of food companies in general in response to the economy, politics, ecology and technology.

 Answers

1. Strengths for Yakult include:

• It is well established in Asian countries and known to be popular among Asian communities in Australia.
• It is targeted at everybody, using the slogan "Every body. Every day."
• Australians have embraced healthy lifestyles and see products like Yakult as having a place in their diet.

Weaknesses for Yakult include:

• It needs to be refrigerated, so some outlets would be unsuitable.
• The small size of Yakult means it is not visible amongst other refrigerated products in some refrigerators.
• People are confused about its packaging size.

Opportunities for Yakult include:

• To be included as part of the breakfast menu in hotels or fast food outlets.
• The advertising campaign using the Yakult cartoon character, which is already well established. The cartoons can be used to appeal to children.
• Adding Yakult to other foods, for example, milkshakes.

Threats to Yakult:

• A number of other probiotics foods are on the market in a form more recognisable to the public e.g. yogurt containing live bacteria.

2. Economy

• Money supply and interest rates are linked to political decisions and overseas markets. Australian food companies have been buoyed by strong performance in the retailing sector. People have purchased strongly in the value-added convenience food lines.
• The Olympic Games have stimulated the food industry, particularly food service, with employment opportunities and food production increasing. Other Australian states will also benefit from the need to create efficient food supplies in Sydney.

Politics

• The Goods and Services Tax (GST) will influence food purchase in the short term, with some people opting for foods that are GST-free. Over time this may influence the marketing practices of some food companies
• The Government continues to encourage the export of value-added foods with development loans and grants.

Ecology

• Concerns about overpackaging and pollution continue to be an issue for food companies. Hygiene and problems of supermarket theft mean packaging performs important marketing functions. Recycling and re-use of packaging are used whenever appropriate.
• Companies minimise energy and water use during food production wherever possible e.g. water is chilled and used for washing vegetables up to 5 times before being discarded and life cycle analysis is used by food companies to determine where savings can be made.

Technology

• Science and knowledge of nutrition have improved hygiene techniques and the quality of some processed food.
• Use of the Internet will influence marketing by food companies and food retailers.
• Smaller, cheaper commercial marketing has enabled small independent food operators to compete with larger food producers especially when catering to niche markets. For example, fast food producers can compete with large fast food chains such as KFC by using mini ovens for baking.