Love Eat Run: Newbies

Newbies
September 20, 2011
View Article

Today’s lunch post is going to be a quick one but I definitely wanted to get it in to share a couple new finds with you.

1. Sabra Greek Style Veggie Dip – Spinach and Artichoke.

Remember how I came across this Greek yogurt dip in the onions and fresh herbs flavor on my last grocery shopping trip and fell in love with it? So, you can only imagine my excitement last night to find a different flavor at the store to try. I’m a big spinach and artichoke dip fan so I’m hoping this will live up to the high standards that Sabra already set!

I’m going to have some this afternoon as a snack and I’ll be sure to let you know how it is!

2. Sabra Buffalo Style Hummus.

I love buffalo sauce and I love hummus so this was an obvious choice when I was decided which flavor hummus to purchase last night. I couldn’t wait to test taste it as well so it was incorporated into today’s lunch!

Speaking of lunch…another sampler plate made the cut. An apple with Saratoga Peanut Butter Company Blizzard Butter, carrots with buffalo hummus and a rice cake topped with buffalo hummus as well.

The Blizzard Butter is Saratoga PB Co.’s white chocolate peanut butter flavor and when eaten with today’s Macintosh apple, I felt like I was eating a caramel apple. Not sure why the white chocolate gave the flavor of caramel but, hey, I’m not complaining!!

Thoughts on the buffalo hummus? LOVE! It was your typical creamy Sabra hummus with just the right amount of buffalo sauce spiciness added in. Perfect hummus flavor for football season, in my opinion!! If you are looking for a new hummus flavor to try – this could be your winner!

Frozen & Dairy Buyer: Dynamic Dips

Dynamic Dips
March 9, 2011

View Article

The dips and spreads segment is heading South — of the border, that is. According to Chicago-based market research firm SymphonyIRI Group, supermarket dollar sales of refrigerated flavored spreads, a subcategory dominated by hummus, jumped 18.8% to $84.41 million during the 12 weeks ended Jan. 23, 2011. And while dips edged up only 1.4% to $119.52 million, three top-ten brands with “Mexican flair” — Wholly Guacamole (+13.1%), Yucatan (+9.2%) and Gordo’s (+16.9%) posted strong gains. The subcategory saw a decline in volume sold with merchandising support.

“Refrigerated dips may have lost some customers and market share to healthier dips like hummus,” says vp of sales Dominick Frocione of Ward Hill, Mass.-based Cedar’s Mediterranean Foods (www.cedarsfoods. com). But the recent introduction of better-for-you Greek yogurt-based dips by several players may spark new growth.

WHERE’S THE GREEK?
Opinions vary about where to merchandise the new dips. For example, reports Emily Alfano, senior marketing manager at Carrollton, Texas-based Future Foods (www.futurefoodbrands.com), Kroger merchandises the company’s recently repackaged Santa Barbara Bay brand Greek yogurt-based dips in the deli, where its high-end dips have always been. But new customer H-E-B plans to stock them in the dairy. While it’s too soon to compare the two approaches, Alfano thinks shoppers at many retailers may be more likely to look for these products next to Greek yogurt in the dairy section, which also has higher traffic than the deli.

But John McGuckin, exec vp of sales at Astoria, N.Y.-based Sabra Dipping Co. (www.sabra.com), which will roll out its new line of Greek yogurt-based dips to the East Coast April 15, favors the deli. “SymphonyIRI figures show that 65% of total dip dollars come through the deli. That’s where consumers look for those types of products,” he says, adding that Sabra plans to merchandise its new fresh salsa line in the deli section as well (the company recently acquired fresh salsa manufacturer California Creative Foods, maker of the Chachi’s and Santa Barbara brands).

Frocione prefers that his products be sold in the deli, but cautions that some retailers take too-high margins in that department, which hurts trial.

Some manufacturers are reducing package sizes to keep prices down. For example, Future Foods recently downsized its core lineup, including its Greek yogurt-based dips, from 12 to 9 ounces to keep shelf prices below $4.

Columbus, Ohio-based T. Marzetti (www.marzetti.com) sells its new Otria Greek Yogurt Veggie Dips in the produce department. According to senior marketing manager for produce dips Mary Beth Cowardin, placement of the product among fresh fruit and vegetables highlights its better-for-you nutritional profile and encourages consumers to view it more as a healthy, everyday snack rather just than just a party or special occasion dip.

THE SPACE RACE
While dips appear to be getting the real estate they need, “Hummus is way under-spaced,” leading to out of stocks up to 40% in some places, says McGuckin. “And when it’s promoted for an event like the Super Bowl, retailers can easily be out of stock in a day.”

But more space doesn’t necessarily mean more SKUs. McGuckin notes that “It’s about SKU optimization, not SKU proliferation. The category is growing so fast that some retailers think they need lots of SKUs, but what they really need is more space for the top-selling SKUs,” he continues. “There are some stores, particularly in New England, that carry all kinds of SKUs, but the good ones sell out quickly and consumers are left with brands and flavors they’re not interested in, which leads to disappointment” — not to mention spoilage.

But don’t consumers want variety? Of course, answers McGuckin, pointing to Sabra’s ever-expanding lineup, including two new flavors, Basil Pesto and Buffalo. He points out, however, that 70% of the brand’s sales are represented by just five flavors.

But sales figures don’t tell the whole story. Frocione warns against focusing entirely on syndicated data rather than innovation and differentiation new products can bring.

A little more variety could do wonders in the refrigerated dip category, which is plagued by unnecessary duplication, says Alfano, who reports visiting a store that stocked six different French Onion Dips, three of which were the chain’s own brands.

Shoppers are always on the lookout for new flavors, particularly those they’ve sampled in restaurants, agrees Elizabeth Underhill, marketing manager for H.P. Hood’s Heluva Good refrigerated dip brand (www.heluvagood. com).To meet demand for something new and create a little excitement, she continues, the Lynnfield, Mass.-based company added two varieties last year: White Cheddar & Bacon and Garlic & Parmesan. And it plans to introduce a limited edition Buffalo Wing Dip later this month.

CROSS PROMOTION IS KEY
Cross-promoting dips and spreads with items that go with them helps build sales and expand the customer base, manufacturers agree. McGuckin reports that “We’ve done a lot of tie-ins with Stacy’s (pita chips), but those are the same consumers who already buy our product.” With household penetration still below 11%, he adds, “We’re really not yet reaching mainstream U.S. consumers.” As a result, he continues, “We think the next step is more tie-ins with ‘conventional’ Frito-Lay snacks (PepsiCo and Frito-Lay own a 50% stake in Sabra).” Retailers can also tie dips and spreads to products that can expand their usage. Consumers are always looking for new serving ideas, whether putting dip a sandwich or burger, on a baked potato or atop a bowl of chili,” says Underhill. Cross-merchandising or promoting it with one of those products is a great way to give consumers new serving suggestions.

Another key, says Cowardin, is to promote the category year-round, not just during the holidays. “Retailers may increase sales by recognizing opportunities to promote dips and spreads throughout the year — as a midday snack with pita chips or as an addition to tried-and-true dinner recipes like pasta salad.”

McGuckin notes, however, that hummus doesn’t need a lot of promotional help. If given enough space, “It sells very well off the shelf. Just because it’s a hot category doesn’t necessarily mean you have to promote like you would, say, soda during the Super Bowl.”

PREPARED SALADS GET HEALTHY
Supermarket dollar sales of prepared salads, fruit and coleslaw slid 8.7% during the 12 weeks ended Jan. 23, 2011, according to Chicago-based market research firm SymphonyIRI Group. Del Monte’s Fruit Naturals and Sun Fresh brands posted double-digit losses, but five of the remaining eight top-ten brands saw gains.

There has been strong and growing interest in regional flavor profiles, reports Teresa Carter, category manager for salads and dips at Beaverton, Ore.- based Reser’s Fine Foods (www.resers. com). As a result, Reser’s is debuting three Amish potato salad varieties to its East Coast customers. To gain trial, she suggests including the newcomers in pay-one-price meal deals that combine low-margin items like rotisserie chicken with higher-margin prepared salads — also a great way to boost sales during non-peak selling seasons.

“Consumers are willing to buy (prepared) salads…virtually year round,” she explains, “but retailers don’t strategically promote or stock the category year round,” leading to missed opportunities. She urges retailers to watch the promotional calendar to have enough product on hand during peak periods.

Carter also suggests carrying a national brand along with a private label to highlight the value associated with the store brand and offer comparison shoppers a choice. Such strategy also allows retailers to alternate promotional activity in order to better manage margins. “Retailers that stock two brands are more successful than those that offer only private label,” she concludes.

To help meet demand for betterfor- you products, Medina, Ohio-based Sandridge Food Corp. (www.sandridge. com) is launching a line of prepared salads that promise “no preservatives” or “no preservatives added.” The salads are produced using a high pressure processing (HPP) system that uses cold water under high pressure to kill bacteria, eliminating the need for chemical preservatives.

RFF Retailer: Dips Go Hip

Dips Go Hip
Vanessa L. Facenda
June 20, 2011

View Article


Gone are the days of artificially flavored and colored dips sitting on retail shelves.

Dip quality is improving as consumers demand fresher, higher-quality and better-tasting products.

“We are seeing a trend away from dips that are made with fillers, stabilizers and oils,” says Jon Levy, senior associate brand manager for Northfield, Ill.-based Kraft Foods Inc. “The products are becoming fresher and less processed.”

Greater shopper interest in dips that are better-tasting, healthier, ethnic-oriented and exotic is spurring innovations as merchandisers work to jumpstart sales.

Refrigerated dip revenues totaled $460.6 million for the 52 weeks ending April 17, 2011, up 1.74 percent from the year-earlier period, reports SymphonyIRI Group, a Chicago-based market research firm. Unit sales were 184 million, up 0.38 percent.

In its 2010 State of the Snack Industry Report, SymphonyIRI Group notes that 55 percent of consumers are more likely to eat what tastes good rather than what is healthier.

Yet, it also notes that 71 percent of consumers are trying to eat healthier, and that the healthier and indulgent snack segments have had annual growth rates of 4.4 percent and 1.2 percent, respectively.

Kraft is among the suppliers focusing on wellness. The company in April began rolling out sour cream dips under the Breakstone’s and Knudsen brands that are made with real sour cream and no oils, Levy says.

The four varieties—French Onion, Ranch, Southwest and Buffalo—are available in 16-ounce containers with a suggested retail price of $2.99.

Sea Gold Seafood Products, New Bedford, Mass., also is emphasizing wellness with its line of seafood-based dips, says Michael Trazzera, chief executive officer.

The company, which is leveraging shoppers’ perception of seafood as a healthier alternative, is marketing Cajun Seafood & Crab Dip, Seafood & Shrimp Scampi Dip, and Buttered Seafood & Lobster Dip.

The suggested retail price for the 7-ounce containers, which are typically merchandised in specialty coolers in seafood departments, is $2.99 to $3.99.

Salsa- and yogurt-based dips are also being positioned as better-for-you offerings.

Sabra Dipping Co., New York, for instance, is rolling out all-natural Greek Veggie dips that are made with Greek yogurt and low in fat. Varieties include Roasted Garlic, Spinach and Artichoke, Sundried Tomato and Onion, and Fresh Herbs.

The company claims that the dips have 67-percent fewer calories and 88-percent less fat than the leading sour cream dip.

The items are available in 10-ounce containers and have a suggested retail price of $3.59 to $4.59. In addition, Sabra also is launching all-natural Salsa in four flavors: Chunky Pico de Gallo, Classic, and Homestyle in 16-ounce containers, and Southwestern Style in a 14-ounce container.

All varieties are fat free, gluten free and kosher.

The suggested retail prices are $3.49 to $3.99.

Also offering new selections is T. Marzetti Co., Columbus, Ohio, including Otria-branded Greek Yogurt Veggie Dip in 8.75-ounce packages with a suggested retail price of $3.49.

Such items are becoming prevalent as snacking expands into more food categories.

“Peoples’ perceptions of dips are shifting,” says Mary Beth Cowardin, T. Marzetti senior marketing manager, produce dips. “The products are being seen as not only a party platter option, but also as an everyday snack. Consumers are eating small meals more frequently throughout the day and veggies with dip or hummus is being perceived as a health and wellness alternative.”

Carlos Canals, president and chief executive officer of Taunton, Mass.-based Tribe Hummus, notes that hummus also is increasingly being used as both an ingredient and on-the-go snack.

Hummus typically is low in fat, and high in fiber and protein.

“Hummus is great with fresh vegetables so it is a healthy meal option, and an easy way to increase vegetable consumption,” Canals states.

“The culinary experience is driving the category,” adds Jerry Goldner, Tribe director for customer marketing. “Consumers’ desire to have more exotic flavors and the Mediterranean aspect of hummus is an allure.”

Tribe is offering 21 selections of hummus in either organic or all-natural varieties in three lines: Classic, Organic, and Origins.

Origins uses a special tahini, is smoother, and features toppings such as Spicy Red Pepper and Tomato and Garlic. Products range in size from 8 ounces to 16 ounces with suggested retail prices of $2.99 to $4.99.

John McGuckin, Sabra executive vice president of sales, says hummus has a large growth potential, noting that its household penetration is just 20 percent, compared to 80 percent for salsa.

“There has been very little marketing for the hummus category,” he states. “Most of it is trade driven, so there is tremendous upside as mainstream marketing increases.”

Sabra offers 14 hummus varieties, including two new flavors: Basil Pesto and Buffalo Style.

Products are available in 10-ounce containers with suggested retail prices of $3.59 to $4.59, and 17-ounce containers with suggested retail prices of $5.99 to $6.99.

Sabra’s hummus line also includes singles—four-packs of 2-ounce containers—that retail for about $3.59.

Also launching new dips is Blount Fine Foods, a Warren, R.I.-based supplier of private-label offerings.

The company’s newest varieties include Panera Bread- and Legal Sea Foods-branded selections in 7-ounce containers with a suggested retail price of $4.99.

Suppliers say that rolling out such added options creates excitement and will boost activity.

“Versatility and new and interesting flavors are all paramount to growth,” Blount’s Sewall says. “Retailers need to stay on trend with product offerings and offer enhanced items.”

McGuckin notes that Sabra wants to create a “dips destination” in the deli, a department in which shoppers are more willing to experiment.

Sea Gold’s Trazzera, meanwhile, says “buy one, get one” promotions and in-store demos also are effective merchandising techniques.

He suggests that retailers also regularly rotate demos to spotlight the range of new products