<Pasta sauce, hot sauce, & speciality food market.
Speciality foods.
In 2002 the US speciality food and drink market was valued at $53
billion in 2002, compared to $37 billion in 1997. (Source: US Going
Ethnic. Meat News.com.)
http://www.meatnews.com/index.cfm?fuseaction=article&artNum=5379
The National Restaurant Association found that the most popular ethnic
cuisines are Mexican, Italian and Cantonese-Chinese. Cuisines gaining
in popularity are Cajun/Creole, Indian, Thai and Vietnamese. (Source:
Non-Traditional Ethnic Cuisines Gain in Popularity. Restaurant.org.)
http://www.restaurant.org/pressroom/pressrelease.cfm?ID=126
According to this report, sales of ethnic foods are on the rise. Sales
of private label Mexican foods increased 8.8 percent versus 7.6
percent for branded products. Sales figures for a range of ethnic
foods (Mexican and Oriental products) are given in a table at the end
of the article. (Source: Private Label Ethnic Products. Joanna
Cosgrove.
http://www.privatelabelbuyer.com/content.php?s=PB/2004/09&p=10
Trends.
This report examines how products from the gourmet/speciality segments
are likely to cross over to the mass market. (Source: Gourmet and
Speciality Food Trends. Elizabeth Sloan.)
http://www.ift.org/publications/docshop/ft_shop/07-04/07_04_pdfs/07-04-sloan.pdf
The consumers.
There are an estimated 50 million buyers of speciality foods. They are
located in all regions of the country, particularly in the 21 largest
metropolitan areas. According to the National Association for the
Speciality Food Trade (NASFT) heavy buyers of speciality foods are
affluent, educated consumers and aged late fifty to early sixty. 55%
of consumers buy their gourmet foods in supermarkets rather than
speciality stores although the heaviest buyers tend to frequent
speciality food stores.
Segments:
Baked goods and cereal-based products.
Sauces, dressings, vinegars and oils
Cereals and pulses
Meats
Dairy products.
Beverages
Herbs and spices.
Ethnic foods.
(Source: Market Brief. The Speciality Food Market in the United
States. June 2001. Department of Foreign Affairs and International
Trade.)
http://atn-riae.agr.ca/us/e3248.htm
Sauces.
This report gives details of the top flavours, flavour trends, sales
trends and industry trends. Dressing and sauces are worth $9 billion.
The 6 major growth categories are salad dressing,
ketchup/barbecue/mustard, mayonnaise, dry seasoning, Mexican sauce and
spaghetti/marinara. Sales of Hot Sauce in 2002 reached $66.41 million.
(Source: Salad Dressing and Sauce Trends. The Association for Dressings & Sauces.)
http://www.dressings-sauces.org/pressroom_trends.html
-------------------------------------------------------
Pasta sauce market.
The pasta sauce market is worth $1.5 million. The market has been
relatively flat over the period 1997 to 2002, with an overall increase
of 6.1%, which translates to a loss of 6.4%. The decline is a result
of stiff competition, ?Italian food fatigue? and lack of product
innovation. This report predicts a 6% decline in constant terms
between 2002 and 2007. This report costs $3,000. (Source: Pasta Sauce
Market ? US Report. Mintel International Group Ltd. Jan 1, 2003.)
http://www.marketresearch.com/map/prod/856709.html
According to IRI reports, jarred pasta sauce dollar sales fell 1.9
percent to $1.5 billion in 2003 and sales volume fell 3.6 percent.
Performance of top brands.
1. Prego ? declined.
2. Classico ? 2.4 percent growth and private label growth of 1.8 percent.
3. Basic Ragu ? 4.2 percent growth.
4. Ragu Old World ? 7.2 percent loss
6. Ragu Chunky Garden Style ? 8.4 percent loss.
6. Hunts ? declined.
7. Five Brothers Bertolli Lucca - 15.9 percent growth to $78 million.
9. Barilla ? 10.5 percent growth to $61.9 million.
10. Ragu Hearty ? 8.9% loss.
http://www.fmi.org/advantage/issues/062004/pdfs/pub/ItalianSivak.pdf
New products.
Unilever recently introduced Carb Options, low-carb versions of
existing products including Ragu pasta sauce.
Easy Mac microwave products. (Kraft Foods Inc.) ? On-the-Go Dinners,
microwave-in-a-minute, pre-cooked pasta pouch dinners are set to be
launched in 2005. The product is aimed at the ?ultra-convenience?
market. It includes Deluxe Rotinin, Marinara and varieties of macaroni
and cheese.
Ragu Express (Unilever) was launched in 2003. This is a pouch pasta
snack which cooks in under 4 minutes with the pouch doubling as a
serving dish.
Betty Crocker ? Complete Meals Lasagna Pasta Bake with Meat Sauce and
Chicken Ferruccini Alfredo.
FreshPrep Dinner Kits (Kraft) include Classic Italian Lasagna, Four
Cheese Chicken Alfredo and Chicken Parmesan with Linguine flavours.
Issues.
Health issues are becoming more prevalent for consumers with
particular attention paid to diabetes and obesity.
Consumers are becoming more aware of high-sugar, simple carb food.
Giant Eagle anticipates a rising demand for no additives,
preservatives and hidden sweeteners. (Source: Diversification and
authentication keeps Italina competitive in the ethnic foods
marketplace. Cathy Sivak. Advantage. June/July 2004.)
http://www.fmi.org/advantage/issues/062004/pdfs/pub/ItalianSivak.pdf
--------------------------------------
Major players
1. Unilever (Ragu)
2003 sales - $53.67 billion. (Source: Hoover?s Online.)
http://www.hoovers.com/unilever/--ID__41850--/free-co-factsheet.xhtml
Sales of Ragu Express reached $20 million in 2002 (Choosing Sides.
William A. Roberts, Jr. 1, January 2004. Prepared Foods.)
http://www.preparedfoods.com/CDA/ArticleInformation/features/BNP__Features__Item/0,1231,117072,00.html
Unilever - company website.
http://www.unilever.com/home/
2. Campbell?s Soup Co. (Prego)
2004 sales $7.1 billion. (Source: Hoover?s Online.)
http://www.hoovers.com/campbell-soup/--ID__10287--/free-co-factsheet.xhtml
Prego Italian sauces and Pace Mexican sauces have sales of about $450 million.
http://66.102.9.104/search?q=cache:ro4tkAG2TbIJ:www.philly.com/mld/philly/business/7158851.htm+prego+sales+2003&hl=en
Campbell?s - company website.
http://www.campbellsoup.com/index.asp?cpovisq=
Prego pasta sauce brand
http://www.campbellsoup.com/prego.asp?cpovisq=
3. H.J. Heinz Co. (Classico)
2004 sales - $8.4 billion. (Source: Hoover?s Online.)
http://www.hoovers.com/heinz/--ID__10693--/free-co-factsheet.xhtml
Heinz ? company website.
http://www.hoovers.com/heinz/--ID__10693--/free-co-factsheet.xhtml
Classico brand ? 20 varieties.
http://www.heinz.com/jsp/classico_f.jsp
New product ? Classico Four Cheese Alfredo.
http://www.heinz.com/jsp/classico_f.jsp
4. Nestle USA (Contadina, Buitoni)
2003 sales - $12 billion
http://www.hoovers.com/nestl%c3%a9-usa/--ID__43903--/free-co-factsheet.xhtml
Nestle ? company website.
http://www.nestleusa.com/flash_home.asp
Buitoni brand.
http://www.buitoni.com/Index/Index.aspx
5. Kraft Foods, Inc. (Di Giorno)
2003 sales - $21 billion. (Source: Hoover?s Online.)
http://www.hoovers.com/kraft-foods-north-america/--ID__55825--/free-co-factsheet.xhtml
Kraft Foods ? company website.
http://www.kraft.com/default.aspx
-------------------------------------
Trends.
According to Neil Fusco, owner of Cucina Antica Foods, Bedford Hills,
N.Y. there is a trend to more expensive, high-quality sauces with more
natural ingredients, better tomatoes, spices and less fillers for
which people are willing to pay more. Cucina Antica?s top-selling
Marinara accounts for 40 percent of sales and retails for $6.99 for 16
ounces.
Some retailers believe that cross-merchandising helps retain and grow
pasta sauce sales, while others say it moves better in a grocery
setting.
http://www.specialtyfood.com/do/news/ViewNewsArticle?id=1882
Reports.
Market Research.Com has a number of reports on the Ethnic food market.
http://www.marketresearch.com/browse.asp?categoryid=489&SID=61239311-305593645-294685986
--------------------------------------------------
--------------------------------------------------
Hot sauces.
According to this report the market for hot sauces is estimated at $2
billion. (Source: The Retail Grocery Market in the U.S. Upper Midwest.
December 1998. Department of Foreign Affairs and InternationalTrade
(Canada). )
http://atn-riae.agr.ca/us/e2231.htm
Last year sales of Hot, Chilli and Tabasco sauces reached $165
million. According to A.C. Nielsen for the 12 months ending Oct. 5,
2002, unit sales of Chilli Sauces were up 4.9 percent, Hot sauce up
5.6 percent, and Tabasco/Pepper Sauce up 10.3 percent. (Source:
Flavor and fire mark the hottest chillies on the market. 23, November
2004. Sweatnspice.com.)
http://sweatnspice.com/hotsauce-blog/
According to Eric Hintz, brand manager for Frank?s, they have
historically targeted 18 to 49 year old adults but growth is coming
from young males.
The McIlhenny Company which produces Tabasco has 26.5 percent of the
hot sauce market. Frank?s (Reckitt Benckiser) has 16.1 percent.
(Source: Hot Sauces Are Battling It Out For Market Share. Stuart
Elliott. New York Times. November 7, 2002.)
http://www.nytimes.com/2002/11/07/business/media/07ADCO.html
----------------------------------------------
Companies.
McIlhenny Company.
Established 1868.
The company has a market share of approximately 25%.
It produces 450,000 bottles of Tabasco a day.
The sauce is distributed in over 100 countries.
2001 sales - $150 million (estimated)
2000 sales - $150 million (estimated)
1999 sales - $150 million (estimated)
1998 sales - $120 million (estimated)
(Source: Hoover?s Online.)
http://www.hoovers.com/mcilhenny/--ID__55649--/free-co-factsheet.xhtml
Reckitt Benckiser Inc.
Makes French?s mustard, Worcestershire, barbecue and hot sauces. The
company also makes cleaning and disinfectant products.
2003 sales - $1.8 billion
1 year sales growth 1.8%
Employees 2,400
(Source: Hoover?s Online.)
http://www.hoovers.com/reckitt-benckiser/--ID__43927--/free-co-factsheet.xhtml
B&G Foods, Inc.
Makes pickles, peppers and hot sauces under the B&G Red Devil and Trappey labels.
2003 sales - $328.4 million.
1 year sales growth ? 11.8%
2003 net income $15.2 million
1 year net income growth (0.5%)
Employees 774.
(Source: Hoover?s Online.)
http://www.hoovers.com/b&g-foods/--ID__60245--/free-co-factsheet.xhtml
----------------------------------------
Bruce Foods Corporation.
Established 1928.
Produces the top selling Original Louisiana Hot Sauce.
(Source: Hoover?s Online.)
http://www.hoovers.com/bruce-foods/--ID__103494--/free-co-factsheet.xhtml
McCormick & Company, Incorporated.
The world?s number one spice maker. Makes spices, seasonings,
flavourings, sauces and extracts.
2003 sales $2.269 billion.
1 year sales growth (2.2%)
2003 net income $2.1 billion
1 year net income growth 17.2%
Employees 8,000.
(Source: Hoover?s online.)
http://www.hoovers.com/mccormick/--ID__14057--/free-co-factsheet.xhtml
--------------------------------------------
Distribution.
Trade shows.
The National Association for the Speciality Food Trade.
2,100 members including manufacturers, importers, distributors,
brokers, retailers, restaurateurs, caterers and other businesses in
the speciality food business. They organise three trade shows
annually. They also publish Speciality Food Magazine.
http://www.specialtyfood.com/do/about/Organization
National Fiery Foods & BBQ Show.
An annual show held at the Albuquerque Convention Center, Albuquerque,
New Mexico in March.
http://www.fiery-foods.com/ffshow/
How d?Oni Enterprises, a new company put its products into stores all
over the Country.
This company gained recognition by entering contests. The winning of
awards was a powerful selling tool. The company took part in trade
shows. They also partnered with other companies to minimize shipping
costs and gain entry into key markets.
http://www.fiery-foods.com/zine-industry/kindergarten1.html
Distribution Plus Inc is a company that specialises in distributing
speciality foods. They represent over 10,000 different gourmet,
organic and ethnic line items.
Contact details:
Distribution Plus, Inc. 825 Green Bay Road, Suite 200, Wilmette, IL 60091
Telephone 847 256 8289
Fax 847 256 8299
http://www.distribution-plus.com/about/about.asp
Links to Food Wholesale Distributors.
http://www.hoovers.com/food-wholesale-distributors/--HICID__1361--/free-ind-factsheet.xhtml
This article looks at a start up company with a chip product. They
made industry contacts throught trade shows. A marketing specialist
was hired. 85% of sales are predicted to come from sales to gourmet
shops and natural food stores. It is becoming more and more difficult
to get placement in health food stores due to increased competition.
According to Michael Schall, president of Guiltness Gournet, if you
use the best distribution for this type of product, you run the risk
of being a few items among 6,000 or 8,000 items handled by specialty
or gourmet food distributors. Specialty distributors play a critical
role in bringing new, specialty, niche-type products to retailers
where smaller marketing budgets don't justify warehouse or direct
distribution.
http://www.inc.com/magazine/19990301/743.html>
<Search strategy:>
<"pasta sauce" market billion>
<://www.google.com/search?hl=en&q=%22pasta+sauce%22+market+billion>
<"pasta sauce" share percent>
<://www.google.com/search?sourceid=navclient&ie=UTF-8&q=%22pasta+sauce%22+share+percent>
<"hot sauce" billion market>
<://www.google.com/search?hl=en&lr=&q=%22hot+sauce%22+billion+market>
<hoover's online>
<://www.google.com/search?hl=en&q=hoover%27s+online>
<ragu sales 2003>
<://www.google.com/search?q=ragu+sales+2003&hl=en&lr=&start=10&sa=N>
<Hope this helps.> |
