Maximize Your ROI On Reformulation
A combination of regulatory changes, technological advances and shifting consumer sentiment have made reformulation one of the most powerful tools for unlocking new value in today’s food and beverage industry. This pivot is driven not just by cost savings, but finds its catalysts in improving performance, strengthening claims, and expanding market access. During our recent webinar, Maximizing Your ROI on Reformulation, we explored how brands can use reformulation to drive measurable return on investment, especially as clean label expectations grow.
Hosted by CuliNEX Founder Mark Crowell, the session brought together three experts who work daily at the intersection of food science, ingredient strategy, supply chain, and commercialization. Across the full discussion, a clear theme emerged: when brands take a structured approach, ROI on reformulation is not only achievable — it can become a competitive advantage.
Clean Label Demand Is Now a Major ROI Driver
To open the conversation, we polled attendees on what’s driving their reformulation efforts. The top answer was clean label consumer demand.
Clean label reformulation is no longer just a cost or compliance exercise. It directly influences revenue, brand positioning, and long-term category relevance.
Amy Usiak, Head of R&D at JPG Resources, emphasized that regulatory activity — particularly around synthetic colors — is accelerating the need for reformulation. As new rules emerge and consumer expectations tighten, reformulating early can prevent disruption later. That proactive approach is a core part of maximizing ROI on reformulation.
Step One: Identify Inefficiencies Before Reformulating
One of the strongest takeaways from the webinar was this: you can’t improve ROI on reformulation if you don’t know where value is leaking today.
Before adjusting formulas, brands should analyze:
- COGS and BOM details
- Processing inefficiencies
- Yield loss
- Packaging costs
- Supplier pricing and availability
Amy noted that teams often jump to changing ingredients, only to discover later that the biggest cost drivers sit in their process, packaging, or operational complexity. “Look at the full picture,” she said. “Sometimes ROI on reformulation comes from fixing inefficiencies, not just swapping ingredients.”
This systems-level view sets the foundation for a successful reformulation ROI strategy.
Smarter Ingredient Choices That Improve Reformulation ROI
A major source of reformulation ROI comes from choosing ingredients that deliver more function with fewer trade-offs. Tonya Lofgren of Ciranda highlighted how multifunctional emulsifiers streamline dispersion and reduce processing steps, while inulin and other fiber ingredients can improve texture, support nutritional claims, and cut back on sweeteners.
She also pointed to pre-gel and physically modified starches as clean label options that maintain efficiency without compromising performance. Ingredient choices directly shape long-term margin stability, so selecting agriculturally reliable sources, minimizing certification complexity, and keeping formulas adaptable helps protect ROI well beyond launch.
Balancing Clean Label, Nutrition, and Cost Without Losing ROI
Clean label doesn’t have to inflate costs. In many cases, ROI improves when brands explore more options. Brittany Kovacevic explained that the best outcomes start with clear non-negotiables for taste, texture, and nutrition, followed by enough time for testing across pilot and scale-up runs.
Evaluating “good, better, best” prototypes gives teams real data to make trade-offs, while leading with culinary quality ensures the reformulated product maintains consumer appeal. Today’s clean label ingredients offer far more flexibility than before, making it possible to reduce cost, improve function, and upgrade claims within the same project.
Supplier Partnerships Are Essential to Maximizing Reformulation ROI
Another major ROI driver is early collaboration with ingredient suppliers. The panel emphasized that suppliers can guide teams toward the right ingredients, flag pricing or availability risks, and offer training on how components behave in different systems. They can also provide valuable category and trend insights that can shape smarter decisions. This can be particularly valuable for smaller companies that may not have access to consumer or trend research.
Tonya noted that suppliers are often underutilized, even though partnering with them early can prevent missteps, shorten development cycles, and strengthen the final formulation’s economic resilience.
“Treat suppliers like any critical business partner,” she advised. “They can help you avoid costly missteps that derail reformulation ROI later.”
Reformulation as a Long-Term Growth Engine
A key shift in today’s industry is that reformulation is no longer viewed solely as a cost-saving measure. The panel discussed how ROI on reformulation increasingly comes from growth levers, including:
- Access to new retailers and channels
- Product performance improvements
- Enhanced nutrition or claims
- Cleaner ingredient decks that boost consumer trust
- Improved supply chain reliability
- Higher volumes driven by stronger market appeal
Amy summarized it well: “People hear cost reduction and think something will be taken away. But sometimes improving ROI means gaining something — like access to a new customer or stronger performance that increases velocity.”
This reframing is central to capturing the full ROI potential of reformulation.
Key Takeaways for Improving Your ROI on Reformulation
- Start with a complete cost and complexity audit.
Understanding true cost drivers is the foundation of strong reformulation ROI. - Establish your priorities early.
Clean label must be balanced with performance, nutrition, margins, and consumer expectations. - Bring your suppliers into the process.
Upfront collaboration accelerates development and strengthens ROI outcomes. Think about providing them with a “mini” brief that outlines your project and goals. - Treat reformulation as a strategic investment — not a quick fix.
Done well, it can unlock new channels, stabilize margins, and strengthen brand relevance.
Reformulation ROI: A Strategic Pathway to Growth
The session made one thing abundantly clear: ROI on reformulation is maximized when brands approach the work holistically. Clean label isn’t simply a consumer trend — it is a growth strategy, a risk mitigation strategy, and a powerful value-creation lever.
From ingredient optimization and process efficiency to better supply chain stability and stronger consumer appeal, reformulation unlocks meaningful returns when teams align around a clear objective and a structured process.
CuliNEX is proud to help brands translate these opportunities into measurable outcomes — from cost savings to innovation wins to long-term category leadership.
Talk to one of our experts on how to maximize ROI on your reformulation projects today.
