Store Brands

JAN 2017

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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Page 62 of 77 / January 2017 / Store Brands 6 1 Category Intelligence: Sauces & Marinades Going global Retailers that respond to growing interest in international cuisines are best-positioned to boost sales of own-brand sauces and marinades By Rich Mitchell he sauces and marinades sector is taking on a foreign flavor. With more foodservice menus containing global recipes and consumers learning about newer tastes during their travels and via social media, demand is building for more internationally inspired options at retail. Indeed, merchandisers of store brands that enable consumers to easily replicate foreign tastes at home can potentially garner larger revenue streams while differentiating their products from the national suppliers. Thai, Jamaican, Cuban, Indian and Korean selections are generating the most interest, as are health-oriented recipes, states Mintel, a global market research firm, in its December 2015 "Cooking and Pasta Sauces, Marinades — US" report. In addition, large numbers of millennials in particular are seeking hot and spicy flavors, with many gravitating to chili sauces and Sriracha selections, states Euromonitor International Inc., a Chicago- based market research firm, in its December 2015 "Sauces, Dressings and Condiments in the US" report. Besides seeking newer and more exciting tastes, many shoppers are studying product ingredients to determine quality, Mintel notes, adding that "this corresponds with the fact that more than half of consumers always try to eat healthy and maintain a balanced diet." This is resulting in a greater demand for natural products, as more shoppers seek sauces and marinades that have no additives or preservatives; are made with simple or minimal ingredients; and have low or no sodium, sugar or fat, Mintel reports. "Opportunity also lies in convenience-minded products, versatile items such as marinades that also can be used for basting and dipping, as well as pasta sauces that are suitable for dishes that don't contain pasta," Mintel adds. Cross the border Sales of cooking sauces, pasta sauces and marinades grew 12 percent from 2010 to 2015 and are forecast to rise 13 percent between 2015 and 2020 to $6.2 billion, according to Mintel. Natural and better-for-you options will generate more activity, and there also will be wider assortments of international cooking sauces, Mintel forecasts. Indeed, retailers should offer store brands that capitalize on the increasing popularity of Central and South American flavors, as well as Korean and fermented offerings, suggests Vincent Barcelona, vice president of customer experience and corporate chef at Supreme Oil Co., an Englewood, N.J.-based sauce supplier. "Consumers are getting maxed out over what has been available on shelves," he states. "They are looking for the next big flavor, the next 'aha' trend. As independent chefs in restaurants create new ideas and foods, people are being exposed to items from other parts of the world. It eventually trickles down into the retail sector." The widespread consumer focus on healthful eating also is triggering a movement for sauces and marinades with clean labels and organic ingredients, says Ernest Dieterle, chef and corporate manager of culinary product development for Chelten House Products Inc., a Bridgeport, N.J.-based supplier of sauces and marinades. "Shoppers are becoming savvier about what they consume and are demanding items with higher nutritional values and fewer artificial components," he states. "They want 'real' food." The most successful store brands will feature flavors that consumers are specifically seeking, rather than involving items that merchandisers are Do detail how sauces and marinades can be used in recipes. Don't put too much information on product labels.

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