Being ‘free from’ pays off, a recent research project by New Nutrition Business has revealed. According to the analysis, on-the-go snack or beverage start-ups that launch with a ‘free from’ positioning are more likely to succeed. While snacks usually have a 64 percent success rate, their success rate jumps to 88 percent when a ‘free from’ message is added.
NNB has surveyed 151 businesses founded between 2002 and 2013 in the UK, USA and Australia. The results have also indicated that managing expectations can be crucial. “Only 60 percent of successful start-ups made it to the mass market. But mass market presence is not the only way to succeed. Start-ups can thrive while remaining in smaller, niche segments, where premium prices are often easier to obtain,” said Joana Maricato, senior market analyst, New Nutrition Business.
