What role does innovation play in helping natural and specialty brands achieve long-term relevance and growth?
Natural and specialty brands face increasing pressure to innovate not just to stand out, but to survive. Innovation has become critical for two main reasons: consumers demand better-for-you products with attributes that don’t currently exist in the category, and the natural and specialty consumer base actively seeks new, different and functional products as early adopters.
Leonard Storey, SVP of strategy – natural and specialty at Schraad Sales & Marketing, shared insights on how brands can turn innovation into lasting shelf presence.
Why has innovation become such a critical driver of longevity in Natural and Specialty today?
There are two big factors; one is driven by the desire to provide better-for-you products that have many attributes that bring something to category that does not exist today, and they generally add growth to a category. The other large factor is the Natural/Specialty consumer is an early adopter of new, different and functional products, so they are always trying to find the next big thing, and if it’s not you it will be your competition.
How has the definition of “innovation” evolved beyond just new flavors, ingredients, or claims?
Innovation comes in many forms in today’s marketplace; these can include functionality, sustainability, packaging, as well as mission-based branding.
What distinguishes innovation that creates lasting relevance from innovation that simply generates early excitement?
It is very difficult to get a broad range of retailers to accept and shelve new brands, but it takes even more effort and strategy to sustain the items. Any innovation needs to have a plan to continue to be relevant. This includes a strong promotional strategy, product trial, consumer awareness, as well as a product that meets the need for taste and meets the consumers’ expectations. The products also need to meet the sales targets of the category they are in; brands must meet retailer expectations to stay relevant.
What should manufacturers keep in mind about shopper behavior when implementing new product innovation?
Innovative products need to deliver in many ways to the consumer; packaging needs to clearly convey the product’s attributes. Taste and price are also extremely important to get the shopper to purchase more than once. If a product requires verbal explanation and is not priced right, it is going to have a difficult time gaining and retaining consumers.
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As shelf space becomes more competitive, how are retailers evaluating new products for long-term viability?
Retailers are aggressively looking for unique and innovative products, but because there is quite a bit of innovation, they are taking a deeper dive with the brands to understand how the brands will engage their shopper both inside and outside of the retailer’s walls. They also have an expectation of the brands to a strategy around pricing, promotion, supply, financing and consumer marketing. A new innovative brand needs to have a full 360 plan in order to elevate the competition. A deeper level of understanding of the category can also help differentiate one brand from another.
What role does execution – across regions, retailers, and markets – play in turning innovation into longevity?
Although it is difficult to get innovation on shelves, the execution once the items are in the store is significantly more important. Brands must have a strategy and a team that can execute that strategy.
Looking ahead, how should manufacturers think about innovation if long-term brand durability is the goal?
Brands need to spend time in many areas in order for innovation to be durable. Understanding a category and bringing innovation that brings new consumers and growth to a category is the key to long term success. A long-term pipeline of innovative products that can continue to contribute to brand awareness will be key.
About the Expert
Leonard Storey is SVP of strategy – natural at Schraad Sales & Marketing, where he leads strategic growth initiatives for brands competing in the natural and specialty space. Based in Oklahoma City, Leonard brings more than 29 years of industry experience spanning brand development, channel strategy, and retail execution.
Prior to joining Schraad in 2022, Leonard spent 16 years at Acosta and Natural Specialties, where he served as SVP of the natural channel. In that role, he worked closely with emerging and established brands to navigate the evolving natural landscape and scale responsibly.
Leonard’s background also includes CPG leadership experience with Kellogg’s, Lindt Chocolate and Keebler, providing him with a well-rounded perspective across brand and broker environments.
He has deep customer experience across the natural channel, including Whole Foods, Sprouts, UNFI and KeHE. Leonard is known for his pragmatic, insight-driven approach to strategy, helping brands move from early momentum to sustained shelf presence.