The paper deals with the issue of innovation from the viewpoint of applied product development, as motivated by experimental design of both concepts and products. We begin with the limitations in the food and beverage industries (the nature of the product world and the nature of the customer being served). We move on to a discussion of the corporate structure involved with consumers (sensory analysis, market research), review methods currently in use, and then finish with one area that has worked well, systematic variation of ideas and products. We conclude with a discussion of the limits to the innovation process.