Store Brands

APR 2016

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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Category Intelligence: Condiments and Dressings 5 8 Store Brands / April 2016 / Also expanding in popularity are premium and artisanal condiments and dressings, as well as hot and spicy flavors, notes Euromonitor International, a London-based market research firm. Demand is especially increasing for herbs and spices with intense tastes, the firm states. "Consumers are increasingly preparing dishes at home with more spices and seasonings," Euromonitor states in its December 2015 "Sauces, Dressings and Condiments in the US" report. "Spices also offer time-pressed consumers a simple, quick and easy way to add global flavors to home-cooked meals." While salad dressings, mayonnaise and ketchup remain the most popular table sauces, product revenues are stagnant. Growing interest in ethnic cuisines, however, is triggering stronger sales of soy sauces and chili sauces, Euromonitor notes. Target taste Indeed, offering enticing flavor profiles is key for solid growth, notes Kyle Fabing, national accounts sales manager – retail for T. Marzetti Co., Columbus, Ohio. Many shoppers, particularly millennials, are seeking selections with more robust flavors — for example, dressings and dips with sriracha, a hot sauce made from a paste of chili peppers, distilled vinegar, garlic, sugar and salt, he notes. "Consumers want products that are new and exciting, but also clean with fewer preservatives," Fabing adds. "Many shelf-stable dressings that have high-fructose corn syrup are experiencing a steady sales decline." Out with the old Retailers that approach store brand product development with an eye on innovation will be in position to reinvigorate the sleepy condiment and salad dressing sector. By Rich Mitchell est is in short supply in the condiment and salad dressing sector. A tepid retailer response to changing shopper attitudes and lifestyles is resulting in a primary focus on traditional products — and lackluster sales increases. Condiment revenues grew just 1 percent to $6.9 billion between 2010 and 2015, while dressing sales rose 6 percent during the period to $2.6 billion, reports global market research firm Mintel in its December 2015 "Condiments and Dressings — US" report. To bolster activity, retailers need to offer more unique flavors and healthier selections, Mintel states. Such items could be natural or organic, contain additional proteins or vitamins, and/or have less or no salt, fat or sugar. "The most influential condiment features are those that align with broader food trends overall," Mintel states. "Interest in fresh or refrigerated products is important to consumers and may provide an additional area of opportunity, especially as sales of these products in natural channels already trend upward." The most active segments in recent years — including ketchup, pickles, olives and relish — are benefiting from innovations or positive health and freshness perceptions, Mintel notes. Do consider adding premium and artisanal condiments to the own- brand lineup. Don't go it alone; collaborate with suppliers to create unique, on-trend condiments and dressings.

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