deli business · comfort foods going green sushi super bowl spanish cheese crackers retail trends...
TRANSCRIPT
DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT
ALSO INSIDE
ITALIAN DELICOMFORT FOODS
GOING GREENSUSHI
SUPER BOWLSPANISH CHEESE
CRACKERS
DEC./JAN. 2009 $14.95
Retail Trends Reflect Changing Economy
DEL
IBUSIN
ESS
DELI BUSINESS (ISSN 1088-7059) is published by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425
POSTMASTER: Send address changes to DELI BUSINESS, P.O. Box 810217, Boca Raton, FL 33481-0217
DEC./JAN. 2009 DELI BUSINESS 3
FEATURESThe Italian Deli. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Consumers still opting for imported Italian deli items amid rising prices.
Comfort Foods Thrive In Tough Times. . . . . . . . 31When facing a tight pocketbook, consumers revert tothe familiar flavors of home.
Going Green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Packaging manufacturers and deli operators jumping on the environmental bandwagon.
PREPARED FOODS10 Ways To Win Big DuringThe Super Bowl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Grab sales for the big event and keepcustomers coming back for more.
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CONTENTSDEC./JAN. ’09 • VOL. 13/NO. 6
COVER STORY
40
MERCHANDISING REVIEWSStrong Sushi In A Weak Economy . . . . . . . . . . 40Emphasize safety, wise marketing and trends tomaitain interest in your deli’s sushi program.
40
42
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DELI BUSINESS (ISSN 1088-7059) is published by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425
POSTMASTER: Send address changes to DELI BUSINESS, P.O. Box 810217, Boca Raton, FL 33481-0217
4 DELI BUSINESS DEC./JAN. 2009
DELI BUSINESS (ISSN 1088-7059) is published by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425
POSTMASTER: Send address changes to DELI BUSINESS, P.O. Box 810217, Boca Raton, FL 33481-0217
SPECIALTY CHEESESSpain’s Quintessential Quesos. . . . . . . . . . . . . . . . . . . . 48A good selection of Spanish cheeses drives sales and profits.
The Three P’s OfCross-Merchandising Crackers . . . . . . . . . . . . . . . . . . . . 52Pairing, placement and partnering are key incross-merchandising crackers and related deli items.
COMMENTARIESEDITOR’S NOTESmall Formats And Ready-Meals. . . . . . . . . . . . . . . . 10
PUBLISHER’S INSIGHTSLife’s Little Luxuries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
MARKETING PERSPECTIVEThe Consumer Is AlwaysRight... Or Always There? . . . . . . . . . . . . . . . . . . . . . . . . . . 57I struggle to understand why deli directors are allowing the larger, more powerful brands ... to take over their departments,virtually eliminating choice and ignoring consumer preferences.
CONTENTSDEC./JAN. ’09 • VOL. 13/NO. 6
IN EVERY ISSUEDELI WATCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
TECHNEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
BLAST FROM THE PAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
INFORMATION SHOWCASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5848
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6 DELI BUSINESS DEC./JAN. 2009
DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT
COM
ING
NEXT
PRESIDENT & EDITOR-IN-CHIEFJAMES E. PREVOR
PUBLISHING DIRECTORKENNETH L. WHITACRE
PUBLISHER/EDITORIAL DIRECTORLEE SMITH
MANAGING EDITORJAN FIALKOW
CIRCULATION MANAGERKELLY ROSKIN
PRODUCTION DIRECTORDIANA LEVINE
ART DIRECTORJACKIE TUCKER
PRODUCTION DEPARTMENTFREDDY PULIDO JOANNA ARMSTRONG
NATIONAL SALES MANAGERRICK PURCARO
ADVERTISINGJORDAN BAUM
ERIC [email protected]
RESEARCH DIRECTORSHARON OLSON
CONTRIBUTING EDITORSELIZABETH BLAND CHRISTINA DAVID ROBERTS
BOB JOHNSON CAROL M. BAREUTHERJACQUELINE ROSS LIEBERMAN LISA WHITE
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FEATURE STORIESAsian FoodsGrab and Go
MERCHANDISING REVIEWSSalsaFresh PastaIndian Foods
PROCUREMENT STRATEGIESPackagingFood Bars
PREPARED FOODSBarbecue
DELI MEATSPre-sliced
SPECIALTY CHEESESCheddar CheesesDutch Cheeses
COMING IN APRIL/MAY 2009Read about the International Dairy-Deli-Bakery Association’s 45th Annual Seminar
& Expo complete with aisle-by-aisle directory of exhibitors and complete informationabout seminars and speakers.
CONSUMER RESEARCHDELI BUSINESS magazine’s second consumer research study reveals interesting
trends and statistics on brand loyalty among deli customers and examines the effec-tiveness of sampling and suggestive selling by deli workers. Learn how store- and pri-vate-label brands stack up to national brands and how consumers view the difference.
COMING NEXT ISSUE IN FEB/MAR 2009
ANNOUNCING CHEESE CONNOISSEUR
Bundled with DELI BUSINESS is the first issue of Cheese Connoisseur, a lifestyle publication providing sophisticated, well-educated foodies andindustry professionals with information about spe-cialty cheeses, celebrity cheesemakers and chefs,wines, travel opportunities and complementaryfoods and beverages.
In addition to distributing to consumersexclusively through food retailers, the uniquestrategic distribution model offers access to upscale and affluent homeowners, con-sumers and professional decision makers.
For more information or your own personal subscription go to www.cheeseconnoisseur.com or call
Lee Smith at 561-994-1118.
D E L I W A T C H
8 DELI BUSINESS DEC./JAN. 2009
Announcements
A SPECIAL PIZZA MIXERGlobe Food Equipment Co., Day-ton, OH, unveils the SP62P PizzaMaker, a 60-quart machine thatcan handle up to 50 pounds offlour (75-pound batch size) andcan maximize mixing time. It fea-tures a 3-horsepower engine, rigidcast-iron body ensuring years ofdurability and stainless steel bowlguard with built-in ingredientchute. The SP62P offers two fixedspeeds, power bowl lift and 15-minute timer. Also ideal for mixingbread and roll dough, it comeswith a 2-year warranty.www.globeslicers.com
New Products
NON-STICKFOODSERVICE FOILReynolds Food Packaging, withmain offices in Richmond, VA, andLincolnshire, IL, brings to marketReynolds Non-Stick FoodserviceFoil. This revolutionary foil is curedwith a food-safe coating, whichprecludes the need for manualspraying or oiling. The new foil isdesigned for efficient, convenientuse in foodservice kitchens: It’seasy to dispense, reduces cleanupand is safe for serving, storing,freezing and cooking up to 650° F.www.reynoldspkg.com
PROBIOTIC CHEESESDCI Cheese Co., Richfield, WI,launched the company’s first probi-otic cheese line under its CountyLine brand of specialty cheeses.The new probiotic cheeses comein four flavors: Pepper Jack, ColbyJack, Monterey Jack and MildCheddar. Probiotics work by intro-ducing live bacterial strains into thedigestive tract, restoring the bal-ance of microflora in the system.Digestive health is a key nutritionaltrend that is becoming increasinglyimportant to consumers.www.dcicheeseco.com
TAMPER-PROOFGREEN PACKAGINGWilkinson Industries, Fort Cal-houn, NE, hopes to revolutionizesingle-serve portions of fresh fruits,vegetables and other foods with itstamper-resistant FreshServe to-gocups for deli applications. The envi-ronmentally friendly containers aremade from a sustainable naturalplant biopolymer and can betopped with three different lidtypes. The patented, seal-lock clo-sure precludes the need for shrinkbands, saving on landfill waste andfood processing time.www.wilkinsonindustries.com
SUPPLIER OF THE YEARPWP Industries, a food packagingthermoformer with plants in Cali-fornia, West Virginia and Texas,received the Supplier of the Year for2007 award from Bunzl Distribu-tion North America. Bunzl, a lead-ing supplier of outsourced foodpackaging and cleaning and safetyproducts, evaluates vendors onseveral criteria, including customerservice, logistics and sales represen-tation. To be eligible, a vendor mustbe national in scope and cross sev-eral Bunzl business segments.www.pwpindustries.com
REGGIE AWARDLactalis USA, New York, NY,received a prestigious silver Reggie award for its summer 2007Bon Appetit and Bon Voyage Rata-touille cheese promotion. The Reg-gie awards, sponsored by the Pro-motion Marketing Association(PMA), New York, NY, recognizeintegrated marketing campaigns inthe areas of creativity, executionand results. Lactalis USA mixedpoint-of-sale materials, onlineentries and television ads to reachbrokers, retailers and consumers.www.lactalis-usa.com
ENGLISH CHEDDARAVAILABLE IN MIDWESTWyke Farms, Somerset, England,the largest independent Britishcheesemaker, is now marketing itsproducts in the Midwest, the firsttime the award-winning cheesesand butter have been available thisside of the pond. Retailers in Ken-tucky, Michigan, Minnesota, Mis-souri, Montana, Nebraska, Ohioand Wisconsin now carry thecompany's traditional farmhouseCheddar and butter, developedmore than 100 years ago by familymatriarch Grandma Ivy.www.wykefarms.com
MEDAL WINNERSartori Foods, Plymouth, WI,captured three medals at the WorldDairy Expo Championship DairyProduct Contest, sponsored by theWisconsin Dairy ProductsAssociation, Madison, WI. SartoriReserve SarVecchio Parmesan andSartori Reserve Rosemary & OliveOil Asiago received first-placeawards, while Sartori ReserveDolcina Gorgonzola earned a third-place ribbon. SarVecchio Parmesanhas won 17 awards since 2000,making it the most decoratedAmerican-made Parmesan cheese.www.sartorifoods.com
DELI WATCH is a regular feature of DELI BUSINESS. Please send information on new products, personnel changes, industry, corporateand personal milestones and available literature, along with a color photo, slide or transparency to: Editor, DELI BUSINESS, P.O. Box810217, Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • E-mail: [email protected]
DEC./JAN. 2009 DELI BUSINESS 9
D E L I W A T C H
Products
CHIMI ROLLSRuiz Foods, Dinuba, CA, offersconsumers easy on-the-go eatingwith its dashboard-friendly ElMonterey Chimi Rolls. The 4-ounce chimichangas combine qual-ity meats and cheeses, Mexicanspices and freshly baked tortillas intwo authentic Mexican flavors:peppery steak, potato and cheese,and chicken, cheese and greenchiles. Rolled tightly with a specialend fold, the products are perfectfor the grab-and-go hot case.www.elmonterey.com
HISPANIC CHEESESCastro Cheese Co., Houston, TX,presents La Vaquita brand PanelaFresca and Cuajada Fresca: flavor-ful, traditional and all-natural Mex-ican cheeses made-to-order daily.Panela Fresca is a mild, pressed-curd, non-cultured white cheese,and Cuajada Fresca is a fresh,crumbly cheese whose namemeans “fresh curd.” Both resonatewith the growing Hispanic popula-tion of the United States, as wellas the increasingly adventurouspalate of the American consumer. www.castrocheese.com
SAFETY STORAGE BINRubbermaid, Huntersville, NC, aleader in productivity foodservicesolutions, is showcasing a new lineof durable ingredient safety storagebins. The system revitalizes thecompany’s ingredient bins withadditional end-user benefits,including two new smaller capaci-ties, dual-position lids enablingone-handed operation, integratedsafety portioning scoop and newsafety storage cart. The patent-pending lids even allow the units tobe stacked.www.rubbermaidfoodservice.com
BIODEGRADABLEPACKAGINGPWP Industries, Vernon, CA, haslaunched AgroResin Rainbow, acolorful new series of biodegrad-able packaging. Available in manyshapes, sizes and colors, the line iswater and grease resistant, perme-able to air and microwavable. Thespectrum of eye-catching colorswill complement any food presen-tation, and the environmentallyfriendly packaging is perfect forperishable produce, quick service,frozen and deli service applications. www.pwpindustries.com
MUSTARD/KRAUT FUSIONRenowned chef and nationallyknown produce representativeTony Merola presents his latestculinary creation, Must-A-Kraut, aunique blend of mustard, sauer-kraut and horseradish. Available inboth 13-ounce consumer and 1-gallon foodservice sizes, Must-A-Kraut makes a unique sauce forgrilled fish, beef or pork roasts, aswell as a topping for baked pota-toes and other vegetables. It alsoturns an ordinary hot dog or sand-wich into a gastronomic adventure. www.cheftony.com
SAVORY PANINI ROLLSNorpaco Gourmet Foods, NewBritain, CT, continues to add to itsdelicious appetizer line with itsPanini Rolls. Produced in four fla-vors—prosciutto, pepperoni,sopressata and salami with sun-dried tomato and basil—the rollsare an exquisite combination ofMozzarella cheese and otheringredients to make pinwheel pre-sentations when sliced and served.Panini Rolls are available in 6- and8-ounce packages, as well as a 16-ounce foodservice size. www.norpaco.com
SANDWICHES ON THE GOJohnsonville Foodservice, Sheboy-gan Falls, WI, just made breakfast,lunch or snack time easier with itshand-held sandwiches, portablemeals featuring two flavors ofJohnsonville’s famed sausage—Smoky Cheddar or Smoky Brat—enrobed in soft-baked rolls. Perfectfor deli programs, hand-held sand-wiches require only initial heating ina microwave. Their special packag-ing keeps the bun hot, soft andfresh up to four hours. www.johnsonvillefoodservice.com
SPREADABLE OLIVE OILOn the cutting edge of flavoredolive oils for years, A L’Olivierannounces its unique line ofspreadable olive oils. A L’Oliviercombines 88 percent olive oil withother all-natural ingredients to cre-ate a thick and healthy trans fat-free spread perfect to replace but-ter or margarine on breads, crack-ers, pastas and much more.Spreadables come in four temptingflavors: natural, basil, garlic andherbs and lemon and truffle. www.demedici.com
DELI WATCH is a regular feature of DELI BUSINESS. Please send information on new products, personnel changes, industry, corporateand personal milestones and available literature, along with a color photo, slide or transparency to: Editor, DELI BUSINESS, P.O. Box810217, Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • E-mail: [email protected]
It is increasingly obvious the future of the supermar-ket in the United States rests, in no small part, on thefuture of prepared foods. Tesco, with the launch of itsFresh & Easy division in the United States, laid downthe gauntlet: In its view, the future of American
retailing was European. And, specifically, British.As is the European practice, consumers would visit
food stores almost daily to pick up fresh food; in line withthe British practice, this vision sees American consumersbuying “ready-meals”to eat that night or over the next 24to 48 hours. Because visits would be so frequent, thestores would have to be very convenient — defined asvery close to home and quick to shop for just that night’sdinner. This logically implies many very small stores.
Thus we have Fresh & Easy. Its rollout is nowslowed, but the concept is still clear: Lots of 10,000-square-foot stores given a distinctive raison d’etre byready-meals, even though they have produce and bak-ery, meat and poultry, sliced deli meats and cheeses anda core grocery offering.
Wal-Mart has jumped on the bandwagon with itsMarketside concept. Slightly larger, more “American-ized’ with a service deli built around Dietz & Watsonproduct and a grocery offering built around the brandsAmericans grew up with, it is a concept with much toadmire. Yet it is a concept whose reason for existencealso hinges on consumer acceptance of ready-meals.
So do Americans want ready-meals?To some extent, they have been buying them for
years. Supermarket deli departments offer rotisseriechicken, fried chicken and pizza programs — and theseitems sell well. Indeed, one of the peculiarities of theFresh & Easy concept is that it has virtually disregardedrotisserie and fried chicken as well as pizza.
Retailers in urban areas have long provided preparedfoods of various types with the upscale Manhattanitesnot that dissimilar from their peers in London when itcomes to eating and shopping habits. Across the coun-try, upscale and specialty retailers, from Whole Foods toHEB’s Central Market to the new Publix GreenWise,do a big business in prepared foods of various kinds.
Still, the vast majority of Americans have shown lit-tle interest in shopping as they do in London. TheBritish shopper is different from the American shopper— and for some very understandable reasons.
Tesco is under the impression supply will create itsown demand — or put another way, Americans don’tbuy ready-meals to the extent consumers do in theUnited Kingdom because Americans are not offered alarge selection of high-quality ready-meals. There issomething to this point: If every U.S. supermarketoffered as extensive a ready-meal offering as the typical
U.K Tesco, Sainsbury’s, Marks & Spencer, Waitrose,ASDA or Morrison’s, many more ready-meals wouldbe sold here. But the reasoning is rather circular. Afterall, U.S. supermarkets don’t offer a large range of theseproducts because these products don’t sell that well.
American demand for these products is constrainedby the realities of the U.S. market. First, Americans havelarger kitchens, refrigerators and freezers than the typicalBrit, so shopping habits revolve around a weekly stock-up trip. Daily trips for ready-meals are perceived as aninconvenience. Closer stores may be less inconvenientbut it is still an extra trip. Second, Americans haveaccess to a far greater array of moderately priced restau-rants, increasingly with curbside pickup. These restau-rants specialize in high-quality food ready-to-eat. Ready-meals typically require at least heating, and few super-markets are able to expertly produce food in the range ofstyles the restaurant industry can. Third, when Ameri-cans buy a lot of fresh ready-meals because they do notshop daily, they wind up with a lot of waste and areoften unhappy, which leads them to buy frozen foods forstock-up and restaurant takeout for last-minute meals.
Wal-Mart is so big it can experiment with 10 or soMarketside stores and hope to pick up knowledge valu-able in its Supercenters, regardless of what happenswith Marketside. Other chains such as Safeway withits “the market by Vons,” are dipping a toe in the small-format store wars as well.
Most chains have held back, watching Fresh &Easy but not directly responding. Without a vigorousmarket for ready-meals, these concepts lack justifica-tion; lots of consumer knowledge makes most chainsthink their customers want chicken and pizza.
One senses 2009 will be the year of decision. Eitherconsumers will cotton to the ready-meals at Fresh &Easy or they won’t. If it catches fire, count on thou-sands of small-footprint stores, by every major chain,catering to this new demand for ready-meals. If con-sumer response is unchanged, supermarket deli depart-ments will remain triumphant, the preeminent practi-tioner of retail foodservicein the country.
If it does survive at all,Fresh & Easy will probablybe thought of much as onenow thinks of BostonMarket, an idea that onceseemed so important andyet survives as only a smallchain with little impact onthe mainstream of retailoperations. DB
10 DELI BUSINESS DEC./JAN. 2009
F R O M T H E E D I T O R ’ S D E S K
by Jim Prevor, Editor-in-Chief Small Formats And Ready-Meals
12 DELI BUSINESS DEC./JAN. 2009
P U B L I S H E R ’ I N S I G H T S
By now, you’ve noticed another magazine, CHEESECONNOISSEUR, came to you bundled with DELIBUSINESS. CHEESE CONNOISSEUR is a new maga-zine with a different outlook. It is a professional’smagazine as well as a lifestyle magazine promot-
ing fine living through fine foods. Over the years, many people have wanted extra
copies of DELI BUSINESS’ annual specialty cheese guidefor store associates, broker networks, family and friends.As it has often been pointed out, although specialtycheese is growing in popularity, it is often misunder-stood. People who want to explore the wonderful worldof fine cheese often find little information about what tobuy or how to serve specialty cheeses. Store associatesand sometimes even buyers have the same concerns.
In answer to all those inquiries, the concept ofCHEESE CONNOISSEUR was born. It brings the world ofcheese lovers, fine-food advocates and professionals toone place. Looking at education as a journey of passion,CHEESE CONNOISSEUR is a magazine for professionalsand consumers alike. It will have a business-to-businessdistribution and if you currently receive DELI BUSINESS,you will also receive CHEESE CONNOISSEUR. CHEESECONNOISSEUR is also being sold in retail outlets aroundthe country because it is our mission to help retailerseducate customers and develop pull-through merchan-dising programs.
Some people may question the wisdom of publishinga magazine devoted to fine cheese, wine and specialtyfood at this time of economic strife, but there maynever be a better time. To illustrate why, I must use myown recent experiences coping with rising food costs, adesire to eat better and a love of fine food.
First, I have always loved fine food. I grew up in afamily that relished new foods; there was always some-thing new on the table my brother and I “had” to try.After college, my first job was with an upscale retailerwhere my knowledge expanded and passion emerged.
I live in South Florida, quite possibly the bastion ofover-the-top conspicuous consumption. Hummerswhose owners think off-road means pulling into arestaurant parking lot abound. In the last year, peoplehave started to pull back the shows of wealth and amore conservative atmosphere is emerging. This is notan area where people are invited into each other’shomes; it is an area where eating out is the No. 1 formof entertainment. But it reached a point where it wasjust too expensive to go out all the time.
Just down the road from me is a relatively smallindependent known for great produce at great prices. Ithas, however, one of the most difficult parking lots to
maneuver. Being big consumers of fresh produce, wedecided to brave the crowds, save a little money and domore shopping there.
Unexpectedly, something wonderful happened.Since the produce is beautiful and very reasonablypriced, we started buying more fresh vegetables andfruit. This store also has fresh meat, seafood, preparedfoods, high-quality dry grocery, wine and a large selec-tion of specialty cheese, so we started buying differentitems we couldn’t find in local grocers.
Our weekly grocery bill was cut by about one-third.We started cooking more vegetables and less meat. Welike to treat ourselves when we shop, so we boughtsome of the prepared food—which is not inexpensive—and were pleasantly surprised. Among the first thingswe bought were Cornish game hens and acorn squashstuffed with apples and cranberries. It was the best Cor-nish hen I ever had. After a month or so, the real treatwas buying prepared food for dinner and not going out.
The end result is we now use only San Marzanotomatoes in our sauces, we’re buying more specialtycheese than ever before, our dinners are filled with freshfruit and vegetables and our favorite night out is whenwe have the take-out prepared food we buy there. Weare eating much better and—surprise, surprise—I feelbetter and am gradually losing weight. We are eating athome more and have cut our monthly food bills in half.
The question is not whether consumers can savemoney by eating better and buying better food; it iswhether retailers can offer consumers what they want.The answer is going to require a long, hard, critical lookat merchandising and education. There are many waysconsumers can save money, but the catch is that savingmust be rewarding not punishing because we are look-ing to do more with less. And, unlike my example, itdoesn’t have to be with the upper echelon of food; itcan be with down-to-earth comfort foods and every-day items.
First, however, retailers must be willing to accept aresponsibility for educating consumers about cost-sav-ing measures and for provid-ing foods that are a treat toeat. A suggestion as simpleas buy less but shop moreoften can cut down onwaste and lower food costs.Buy-one-get-one-free is atactic that will just lowermargins, not generate loyal-ty. We need to put the cus-tomer first. DB
by Lee Smith, Publisher Life’s Little Luxuries
Retail Trends Reflect
Changing EconomyBY LEE SMITH
14 DELI BUSINESS DEC./JAN. 2009
Arecession, tight credit, upside-down mortgages and massive layoffs cou-pled with high food costs and the looming threat of higher taxes andinsurance payments have left consumers reeling. A retail executive for aregional high-end supermarket chain recently spoke about an executivemanagement meeting where everyone was asked if they had cut back on
their spending and all but one or two raised their hands, yet everyone in the roomhad a secure, well-paying job.
C O V E R S T O R Y
C O V E R S T O R Y
DEC./JAN. 2009 DELI BUSINESS 15
The reaction of one management team tothe recession may well bode true for mostpeople—even those who live within theirmeans, have a stable income and maintaingood credit. We live in a society that has beenfueled by rampant consumerism, so a move toconservatism is a powerful force; the reces-sionary backlash means the average person isgoing to have to learn to do more with lessand companies are going to have to changetheir thinking in order to survive.
According to Clarence Schwab, manag-ing partner of Schwab Capitol Management,New York, NY, “It is impossible to sustainthe level of growth we have seen. For exam-ple, in 2006, about 17 million new cars weresold, fueled by easy credit and low-interestfinancing. Experts believe the sustainablenumber of annual new car sales is approxi-mately 12 million. The 5-million-car differ-ence is not coming back—and the same phe-nomenon is being seen throughout the econ-omy. Every industry is affected.
“We are in a time when consumerdemand is returning to sustainable levels.This is not a temporary dip in demand,”Schwab contends.
A Psychological ShiftThe year 2009 will see a major shift in
the psychology of consumerism. Instead of acarefree attitude toward shopping, con-sumers will be looking to mitigate risk. Peopleare thinking through the decision-makingprocess rather than acting on impulse alone.This doesn’t mean the end of high-quality,organics, prepared foods or specialty cheeses,but it does mean the ending of “bling” mar-keting where drama is the draw and theadded value.
An upscale façade will not satisfy con-sumers looking for quality. Consumers’ devil-may-care attitude toward spending is disap-pearing and price is becoming a more impor-tant component of the value equation. Theundisputed leader is Bentonville, AR-basedWal-Mart and customers are flocking to itsstores looking to reduce grocery costs. How-ever, price is still important to those who canstill afford small indulgences, so chains—suchas Issaquah, WA-based Costco—that offerupscale products—such as specialty cheeses,fine wines and excellent prepared food—arealso showing strong growth.
Trader Joe’s, based in Monrovia, CA, isanother bright spot in the consumer land-scape. According to Schwab, “Trader Joe’soffers excellent, high-quality prepared foodsand fresh produce at reasonable prices andits private-label products are excellent. Peo-
ple’s shopping habits are changing and thatincludes the traditional upscale shopper, but Ithink Trader Joe’s will prosper. In fact, it iscompanies like Trader Joe’s that will grow inthis environment.”
On the other hand, high-end retailers thathave pushed the market with expensive fix-tures and sporadic and/or questionable quali-ty will end up on the loosing end. The mar-keting value of an upscale façade with lots ofbling has fallen to zero. Consumers will belooking at value as it applies to the price,taste and quality, not the package or box anitem was sold in.
Jeffrey Siegel, president of Farm RichFoods, Comack, NY, and a manufacturer ofprepared foods, including traditional saladssuch as potato salad and cole slaw, sees adramatic shift in what customers are buyingand where. “There is no doubt consumersare moving away from restaurants and goingback to traditional grocers and retailers ingeneral. Especially hard hit are family restau-rants and restaurants that fall into the middleof the pack—that offer good food, but noth-ing really great. Consumers are looking atvalue differently.
“The restaurant craze is way off. Peopleare trading down and buying less-expensivefoods that they haven’t bought in years,” he
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16 DELI BUSINESS DEC./JAN. 2009
continues. “I’m hearing about growth surgesin products thought to be dead—productssuch as Spam and Hamburger Helper. Peo-ple are cooking at home more often andlooking to stretch a dollar, at times giving upbetter nutrition for cost savings. In the saladindustry, I predict we will see growth in 3-pound containers and for the first time, wewill be offering 3-pound containers of ourbest-quality salads.”
Customers want great taste at a value,and larger sizes offer convenience, taste and
better pricing, comments Farm Rich’s Siegel.“I think we are going to see a resurgence ofother traditions and product lines that havefaded away due to more interesting restau-rant fare. Good hearty soup and breadsounds like a great dinner right now, and theprospect of having a cookout at home withhot dogs, hamburgers, sliced tomatoes andpotato salad sounds pretty appealing.
“On the other hand, I predict growth inspecialty categories, but only at retail. One ofthe least expensive treats is food, and a piece
of great cheese, a bottle of wine or a specialdessert equates to luxury at a reasonableprice,” he adds. “People with stable incomeswill still have money to spend, but they areseeing the value of their homes decline andtheir investment portfolios crash. People,especially baby boomers looking at retire-ment, have become more conservative andare looking for ways to save and replenishdwindling resources. No one is as cavalierwith his or her money today.”
While consumers are looking for bargains,it doesn’t mean everyone has magicallylearned to cook or two-income families havemore time to spend preparing meals. Pre-pared foods are still part of the deli depart-ment’s core offer, and deli categories aredoing well.
Soup“Foodservice sales are soft and where
people are buying is playing significant part intoday’s value economy,” says Jerry Shafir,president of Kettle Cuisine, a soup manufac-turing company in Chelsea, MA. “Retailsoup sales are strong. We’re seeing continuedgrowth in private-label and fresh packagedsoups. Retailers are getting the programsdown pat and while there is still some debateabout the best sizes to sell, packaged salesare growing.
“When soup centers began to grow inpopularity, there was some concern aboutshrink, but retailers have gotten a handle onthat part of the program and sales are nowgrowing profitably. Retailers have also caughton to the techniques foodservice used foryears to build sales—attracting the interestof consumers by offering more exotic flavorsand relying on the sales of traditional stand-bys to bring in the dollars,”he explains.
“The best sellers are traditional chow-ders and flavors such as chicken noodle, butthere is growth in the more esoteric flavors,for example, soups with Southwestern pro-files and single-ingredient soups based onproducts such as sweet potatoes or beans.Bean-based soups are big sellers right now,”Shafir continues.
Side DishesAnother area for exploitation is side dish-
es, especially side dishes that incorporatefresh fruit and vegetables. While affluenttimes may have favored a steak with slicedtomatoes for dinner, Mom’s old dictum ofone green vegetable, one yellow or red veg-etable, one starch and a salad was morehealthful and more economical.
Side dishes that include a mix of fruit andvegetable dishes, starches and salads as wellas seasonal sides are growing in popularity.Winter side dishes may include baked apples,
C O V E R S T O R Y
C O V E R S T O R Y
DEC./JAN. 2009 DELI BUSINESS 17
grilled acorn and butternut squash, sweetpotatoes and yam halves baked with a sauceof nuts and cranberries; today’s consumermay not know how to prepare these tempt-ing dishes, but they are tasty and offer goodvalue.
Whether the deli department is looking topurchase side dishes from an outside vendoror in-house commissary or to make deli pre-pared foods in store, taste must be the firstand most important part of the value equa-tion. If prepared foods don’t taste great, con-sumers will not be tolerant and will directtheir purchases to another outlet.
Commodity SaladsCommodity salads such as potato, maca-
roni and cole slaw may be headed for resur-
gence in popularity, but it is too early to tell,says Farm Rich’s Siegel. During the slow win-ter months, a few percentage points one wayor the other don’t indicate much of anything.
The changes in consumer purchasinghabits have been dramatic. Usually a swing isgradual, often with restaurants leading theway. This time around, however, the changein buying habits has been swift and unpre-dictable. All indicators are that consumersare getting more conservative, embracingtraditional foods that were popular in thepast—especially foods that have beenviewed as “belly-fillers.”
“We will know more once we get into theseason and there is every reason to believeconsumers will be looking for traditionalfavorites, but we need to take into considera-tion that takeout options are still viewed asrestaurant alternatives and it will be the bet-ter-quality products that sell the best,” stress-es Siegel. “As the economy continues to fal-ter, new trends will develop and it is very diffi-cult to accurately predict the future.”
Deli Lunch MeatsThe sleeper in the bunch may be lunch
meats. The last few years have seen declin-ing tonnage, while sales are flat-to-down dueto a move by consumers to purchase betterquality. However, retailers need to carefullyexamine their sliced meat programs to makesure they are meeting their customers’ cur-rent needs. Anticipating an increase inbrown-bag business lunches and sandwichesmade at home may well pay off. This is notthe time to let the core of the deli industry—
deli meats—take a back seat. Increasing shelfspace for budget crunchers such as liver-wurst, bologna, salami and lunch loavescould well produce increased sales. At thesame time, whole-muscle meats will contin-ue to be strong and offer a budget saverwhen purchased in the deli for made-at-home sandwiches.
Chicken EntréesChicken will continue to dominate cen-
ter-of-the-plate items sold in the deli, so rotis-
All indicators are that
consumers are getting more
conservative, embracing
traditional foods that were
popular in the past—
especially foods that have
been viewed as “belly-fillers.
18 DELI BUSINESS DEC./JAN. 2009
slices and whole pies in communities whereindependent pizza operators reign supreme—or at least until Wegmans enters the scene,showing that supermarkets can and do com-pete in highly competitive markets.
Chains that can’t offer hot slices and pies-to-go should be looking at expanding thetake-and-bake category with new, exotictwists. Just as retailers have found in thesoup category, borrowing foodservice tacticsof offering exciting and somewhat exoticvarieties to draw interest can boost overallsales of the big sellers—cheese, pepperoni,mushroom and sausage.
Specialty FoodsSpecialty foods are, by definition, expen-
sive and continuing marketing efforts toboost the sales of specialty foods may seemcontraindicated; however, specialty-foodsales are holding their own. Many upscaleindependents are looking at stable sales withone difference: Consumers are buying lessbut purchasing more frequently.
Possibly the biggest difference in market-ing specialty foods is that they will no longersell themselves just because the packaging isfancier and the price higher. Specialty foods,whether shelf-stable or perishable, mustoffer tangible benefits—and communicatingthose benefits will require retailers to be bet-ter merchants.
Specialty-food merchants must offer con-sumers educated reasons for purchasing.Telling the story, providing recipes and servingsuggestions and, most of all, offering purchas-ing guidance will be paramount. Take a lookat the world of wine retailing and buyers willfind what wine merchants have known foryears—consumers want to be educated,even led down the path to enlightenment.
Great values need to be expressed. Aretail suggestion about the rarified qualityand great value goes back to the basicpremise of mitigating consumer risk. Offeringsuggestions and possibly limiting selection goa long way in encouraging trial.
Specialty foods are also seeing growth inpre-packaged versions, especially when itcomes to imported meat, such as prosciuttoor serrano ham. Pre-packaged means theproduct has been sliced properly and theshelf life fixed. For example, prosciutto diParma must be sliced and packaged in Italy,so in-store mistakes are eliminated.
Organics are another gem that is stillshowing sustained growth. Granted theoverall market is still small, but consumerswho are committed to organics are willing tospend extra dollars—within reason. The“reasonable” amount seems to be no morethan 25 percent difference between organicand non-organic. DB
C O V E R S T O R Y
serie and fried chicken will continue to grow.For a while, rotisserie chicken was forecastto be on a downward spiral as customerswere looking for something new. However,in uncertain times, proven favorites will con-tinue to draw an audience. And, if there areany prepared foods for which supermarketsare the true leaders of the pack, they arerotisserie and fried chicken. Chicken pro-grams can be executed extremely well withgreat consistency, and they often outperformlocal restaurants.
Retailers should be looking to expand thecategory, adding new flavors and twists toincrease trial and repeat sales. Fortunately,chicken is one category in which consumershave shown great faith in supermarkets’ abili-ty to market excellence.
PizzaPizza is the other staple just waiting for
supermarket delis to add their own flourishes.Chains such as Wegmans, based in Rochester,NY, have done an outstanding job offering
The Italian DeliConsumers still opting for imported Italian deli items amid rising prices
BY JACQUELINE ROSS LIEBERMAN
20 DELI BUSINESS DEC./JAN. 2009
Americans are still choosing to purchase imported deli products from Italy in spite of soaring prices caused byrising shipping and packaging costs and a strong European currency. Some retailers, however, are noticingchanges in consumers’ buying habits during the current economic downturn, such as purchasing smalleramounts due to shrinking food budgets.
Most industry experts credit consumer preference for genuine Italian foods to an increased marketingpush that began more than two decades ago. As a result, consumers have become accustomed to paying more for whatthey view as better and more authentically tasting products.
Luigi “Lou” Di Palo, owner of New York City’s Di Palo Fine Foods located in the city’s Little Italy neighborhood,claims his sales are remaining steady, although his customers are definitely more frugal shoppers in the present economy.
“My customers’ priority is to have the best,” he says. “To save money, they buy less at a time but shop more fre-
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22 DELI BUSINESS DEC./JAN. 2009
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quently, so they don’t waste.”Many Italian product importers, such as
Savello USA, Hanover Township, PA,remain optimistic that a slow strengtheningof the U.S. dollar will begin to turn the eco-nomic tide. Savello’s president, Cesare Gallo,says he hopes to see a drop in prices duringthe next few months as the exchange ratemoves in America’s favor.
John Jack, vice president of sales andmarketing for Fiorucci Foods, ColonialHeights, VA, emphasizes that factors suchas packaging and feed costs are also playing asignificant role in rising prices. The companyproduces Italian deli meats in Italy and Ital-ian-style deli meats in America, including anew line of roasted European-style meatsunder the Rostello brand.
“Cost production factors, which are gen-erally energy-driven, really spiked in 2008,”Jack explains. “Many of the packaging mate-rials we’re using are petroleum-based. And,during last summer, the cost of raw materialsreached heights we’ve never seen before.”
Pierre Zreik is the chief executive officerfor Rovagnati USA, Clifton, NJ, a companythat distributes a number of meat productsmade in Italy’s Lombardy region, includingGran Biscotto prosciutto cotto (steamed
cooked ham); gran cotto arrosto (roastedham with herbs); porchetta (double pork loinroasted with pancetta); mortadella; speck(smoked and dry-cured ham); Meditarreneo(French-style steamed cooked ham); andprosciutto di Parma. He believes Italian deli
customers are remaining loyal to his com-pany’s products in spite of the difficult finan-cial conditions and rising transportation costs.
“The consumer has accepted theincreases due to the exceptional quality ofthe products we have,” Zreik says. “Maybe
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24 DELI BUSINESS DEC./JAN. 2009
F E A T U R E
they don’t buy as much, but they buy regu-larly. I am sure the high costs of living and thefinancial downturn have influenced the buy-ing habits of many.”
Parmacotto, an Italian producer of pro-sciutto cotto, prosciutto di Parma, morta-della, roasted hams, salami and other tradi-tional products, is so confident Americanconsumers will remain faithful to fine Italianimports that the company launched a brand-new retail operation on New York’s UpperWest Side last November: Salumeria Rosi,
an authentic Italian deli and restaurant. Parmacotto’s chief executive officer,
Alessandro Rosi, says the company has seenan increased interest among consumers inNew York City, and the United States ingeneral, for genuine Italian foods.
“When Americans come to Europe, theyvisit Italy, they enjoy our culture and ourfood and they look for quality when they goback home,” he explains. “We want peopleto have an Italian corner in their neighbor-hood. Salumeria is the place where we can
explain our products and tell their history:where they come from, how they can becooked and what to drink with a prosciuttoor with a cheese.”
The United States has been spared thesignificant price increases Italians have facedin recent months, according to RiccardoMapelli, product manager for Atalanta Cor-poration, Elizabeth, NJ, a firm specializing inimported meats, cheeses and other groceryitems. “Fortunately, we don’t see as great anincrease as they do in Italy, but we shouldexpect a 20 to 30 percent increase by spring2009,”he says.
Some Italian imports, such as prosciuttodi Parma, are actually seeing sales increasesduring the economic downturn, a fact DavidBiltchik, advisor to the Consorzio del Pro-sciutto di Parma, attributes to the high qual-ity of the products. “Despite the weak dollarand the slowing down of the economy, salesof prosciutto di Parma are continuing togrow,” he says. “People appreciate goodquality and good taste.”
Paolo Grandjacquet, president of Sarato-ga Marketing Group, Saratoga Springs, NY,a firm representing Grana Padano cheese inthe United States, thinks the tastes ofAmerican consumers have become sorefined they’re willing to pay the cost forsuperior products.
“United States consumers are impactedby the high value of the Euro versus the U.S.dollar as imported cheeses and other foodproducts, in general, become more expen-sive,” he says. “This can cause a fluctuationin sales, but it also helps premiere productslike Grana Padano, Parmigiano-Reggiano,prosciutto di San Daniele and Parma standout among the many local imitations offeredin this market.”
Educated Consumers Want Quality Efforts made by the Italian government
and private companies to inform Americansabout the wide range of high-quality Italianfoods appear to be paying off. Grandjacquetattributes increased sales of Grana Padanoin the United States to this marketingthrust.
“The Consorzio has been advertisingover the past 10 years in consumer andtrade publications as well as sponsoring LidiaBastianich’s TV program for the past 4years,” he says, referring to the Lidia’s Ital-ian-American Kitchen series broadcast onAmerican Public Television. “These effortshave increased the awareness, the populari-ty—and ultimately—the sales of GranaPadano in the United States. We also workwith many supermarket chains across thecountry and organize in-store samplingactivities in an effort to expand usage.”
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26 DELI BUSINESS DEC./JAN. 2009
F E A T U R E
Biltchik says the Consorzio del Prosciuttodi Parma’s efforts to bring its namesake prod-uct to the forefront of American consumerconsciousness have paid off in a big way.“Prosciutto di Parma is still a niche product,but it is, by far, the largest selling Italian meatproduct in the United States. We’re still oneof the more visible products, and we’re tryingto stay that way.”
That was not the case a couple ofdecades ago, explains Biltchik, when therewere almost no imported Italian deli prod-
ucts on the U.S. market. In fact, prosciutto diParma is now viewed as the Italian deli meatproduct that paved the way during the late1980s for today’s successful Italian imports.“It was viewed as opening the market for alot of products.”
Many Americans now ask for Italianimports by name and recognize the ProtectedDesignation of Origin (PDO) label. Forexample, Grandjacquet believes they knowGrana Padano is a versatile, healthful and fla-vorful cheese that has withstood the test of
time. “The PDO designation helps distinguishan original product for its value and consistentquality, and discerning consumers realize thatquality has its value, regardless of the cost.”
Atalanta’s Mapelli says Americans arealso familiar with speck, an aged, lightly
smoked ham fusing the Italian tradition ofaging with the German tradition of smoking,while Di Palo of Di Palo’s Fine Foods claimsartisan deli meats such as mortadella are alsogaining a loyal following.
“Everybody’s got a secret recipe ofspices that gives one company’s mortadellaa different flavor from other similar prod-ucts,” Di Palo says.
Once relegated to big cities and coastalareas, these items are now found on platesacross the country.
“Over the last 10 or 15 years the varietyof imported Italian products sold in MiddleAmerica has increased significantly,” saysJack of Fiorucci Foods. “Prosciutto,pancetta, mortadella—things you couldn’tfind before are now prevalent.”
Porchetta, referred to as Italian pulledpork among Italian-Americans, is also gain-ing in popularity. Dating back to the days ofthe Roman Empire, porchetta is still pre-pared in Italy as it was centuries ago by de-boning a whole pig and sewing it back up,head and all, before roasting it with plentyof salt, garlic, rosemary and other herbs.Although the U.S. government doesn’t per-mit imports of the whole animal version,porchetta made from pork loin is allowedinto the country, and it’s available at DiPalo Fine Foods and other fine food retail-ers that carry genuine Italian meats.
“DESPITE THE WEAK
DOLLAR AND THE
SLOWING DOWN OF
THE ECONOMY, SALES
OF PROSCIUTTO DI
PARMA ARE
CONTINUING TO
GROW.”
— David Biltchik, advisor to the Consorzio del Prosciutto di Parma
28 DELI BUSINESS DEC./JAN. 2009
F E A T U R E
“People love porchetta,” says Di Palo.“This has been well received.”
There’s hope, however, for Americanconsumers wanting to try a traditionalporchetta without having to plan their nextvacation to Italy. A Birmingham, AL firm,PorchettaPrimata.com, is now manufactur-ing traditional porchetta from farm-raisedKentucky pigs, according to traditional Italianpreparation methods.
“It’s pig and spice, and that’s it,” explainsNathan Marcus, director of PorchettaPrima-
ta.com. “Our program is truly as authenticas anything you can get in Italy.”
Companies continue to introduce newproducts from Italy in spite of the currenteconomic climate. Lucini Italia, Miami, FL,recently began importing an organic Stravec-chio Parmigiano-Reggiano from the Emilia-Romagna region of Parma that proudly bearsthe PDO seal. After hand cutting, eight-ounce wedges of the cheese are immediatelyvacuum packed.
“This method also preserves the organic
integrity of the cheese and adds shelf life,”says Lucini Italia president David Neuman.“We found through research that a cheese ofthis quality and rarity must have a specialpackage to properly convey and deliver thequality the consumer expects. The packagefully communicates the history and usage ofthis exceptional product.”
Savello USA’s Gallo adds that “a varietyof new cheeses, such as Taleggio, a PDOproduct from the Lombardy region, is findingits way into American kitchens alongsidelongtime favorites like Parmigiano-Reggiano.”
Gran Biscotto prosciutto cotto, asteamed cooked ham, is also relatively newto the American market, introduced a fewyears ago by Rovagnati USA, according toZreik. “It’s the No, 1 choice among con-sumers in Italy, and its popularity in the stateshas increased tremendously since we openedour office in 2006.”
Selling More When introducing customers to an Italian
food for the first time, sampling is a surefireway to gain sales. “Don’t be afraid to give ataste—that’s very important,” says Di Palo ofDi Palo’s Fine Foods.
For the past three years, the Consorziodel Prosciutto di Parma and the Consorziodel Formaggio Parmigiano-Reggiano, alongwith the support of the European Union andthe Italian government, have sponsored in-store tastings of their products across theUnited States.
“We are convinced that, at retail, this isthe best way to generate a ‘buzz’ aboutthese products—to taste them is to recog-nize their superior quality,” says RuthLowenberg, senior vice president of Lewis &Neale, the New York City representative ofthe Consorzio del Prosciutto di Parma.
“In addition, we have been conductingtraining sessions for deli managers and dis-tributor sales teams,” she continues. “Theimportance of having knowledgeable delistaff who know how to handle products,especially premium products like prosciuttodi Parma and Parmigiano-Reggiano, cannotbe underestimated. Our customers, whohave chosen to pay a little more for superiorquality, demand good service and are entitledto it. That is why training is so critical.”
Di Palo believes handling the food prop-erly, such as separating cured meats fromcooked, refrigerating at correct temperaturesand slicing to order the correct way, willmake the difference in the quality of Italiandeli products.
Gino Colangelo, a representative ofSpeck Alto Adige PGI (Protected Geo-graphical Indication), affirms the importanceof educating the deli staff on Italian imports.
30 DELI BUSINESS DEC./JAN. 2009
F E A T U R E
“Knowing at least a little bit of the product’shistory is key. If you can offer your cus-tomers snippets of info, this engages them inthe product and can help turn them intorepeat customers.”
And customers won’t ask for more infor-mation if they don’t know the product is
available. That’s why the Consorzio del Pro-sciutto di Parma’a Biltchik wants delis tofocus more on point-of-sale signage.
“We’d love to see clear signage that tellsyou what the product is,” he says. “Deliscould do themselves a favor by having good,clear signage.”
And while customers should be encour-aged to use ingredients any way they canimagine, it helps to give them a starting point,according to Gallo of Savello USA.
“Maybe give them some recipes andsome information on how to use the prod-uct,”he suggests. DB
A mericans love Italian cured meats.One of the best sellers at Di PaloFine Foods in New York City’s Lit-
tle Italy is prosciutto di Parma. “Latelysales of prosciutto di San Daniele havealso increased, and we’ve seen big increas-es in the sales of speck in the past year orso,” reports the owner, Lou Di Palo.
Cesare Gallo, president of SavelloUSA, an Italian product importer inHanover Township, PA, says sales ofpancetta—sometimes called Italianbacon—have taken off during the lastyear. The company first began importingcooked, smoked pancetta from Leoncinilast year. “It’s very mild, very pleasantand lightly smoked.”
Prosciutto may very well be Italy’smost famous cured meat among Ameri-cans. The United States is the world’sthird-largest market—outside of Italy—forItaly’s famed prosciutto di Parma, accord-ing to David Biltchik, advisor to the Con-sorzio del Prosciutto di Parma.
Thanks to an effective North Americanmarketing strategy over the past 20 years,prosciutto di Parma is almost a householdname in the United States. Much of theham’s recent popularity, however, is dueto packaging innovations. The recentlyintroduced pre-sliced packages of pro-sciutto have several advantages, andpackaged prosciutto di Parma has a 90-day shelf life. This, Biltchik notes, “isrigidly enforced” to ensure quality.
The packaging also means less workand less training for employees. “The pre-sliced products have enabled us to getinto outlets such as Costco [based inIssaquah, WA] and into supermarketswhere we weren’t really before,” saysBiltchik. “Still, some consumers may pre-fer to have their prosciutto sliced to orderin the deli. A smart deli will carry both.”
Di Palo warns deli operators not to betempted to pre-slice cured meats in thestore, since it could decrease shelf life andhave a negative impact on the flavor ofthe products. “Pre-slicing at the factory isdone under conditions that ensure the
product will maintain its freshness andquality,” he explains.
While Americans have already fallenin love with prosciutto, they are discov-ering other cured delicacies such asspeck. “Speck Alto Adige PGI [ProtectedGeographical Indication] was introducedto the United States in late 2003 but notreally actively promoted until late 2005,”says Gino Colangelo, president of Colan-gelo & Partners Public Relations, NewYork City, a firm that represents SpeckAlto Adige PGI. “The product has gainedenormous popularity among trade pro-fessionals and consumers, and salesgrowth has been well into the doubledigits since we launched the marketingprogram in 2005.”
Speck is an unusual product becauseit’s both cured and smoked. “In order tocreate the distinctive flavor, each SpeckAlto Adige PGI ham must undergo aneight-step process over a 22-week peri-od,” explains Colangelo. “Smoking anddrying of the ham must be precise, usingprime wood at cool temperatures—68degrees—to ensure the distinct taste ispresent in the ham.
“These unique hams are characterizedby a thin layer of mold that accumulates
on the outside at the end of the curingand smoking process. Speck Alto AdigePGI is the only ham that uses mold in theproduction process,” he adds. “The moldprevents the crust from becoming toohard and guarantees the uniformity of theinner seasoning and smoking.”
Other Italian favorites have not yetmade their way stateside, primarily due tostrict import regulations, but Di Palo ishoping that will change soon. “We’relooking forward to the possibility of offer-ing other cured meats, such as culatelloand coppa,” he says. “Bresaola would begood. People have received the SouthAmerican and the locally produced bre-saola very well. If we ever get the Italian,it will be very popular.”
“Bresaola, which is a dried cured beeffrom Valtellina in the Lombardy region,would be a great product to be able toimport,” says Colangelo. “We would alsolove to see lardo di Colonnata, a specialproduct that is cured in the marble cav-erns of Carrara.”
Mapelli says these are just a few ofthe many Italian cured meats currentlyunavailable in this country. “Culatello isonly the first of a long list of meats notavailable in the United States like coppa,pancetta coppata, lardo di ColonnataPGI, bresaola and real salami. We have abresaola from Uruguay that’s prettygood, though.”
Mapelli further explains that thesalamis currently sold on these shores arenot what he refers to as “real salami.”
“There are actually two Italian compa-nies that sell, quote-unquote, salami inthe United States,” he explains. “One isproduced in this country and the other inParma, Italy. Unfortunately, the UnitedStates Department of Agriculture requiresa very strict procedure that kills the prod-uct. It’s also wrapped in plastic and not inthe natural gut, which gives real salami itsaromatic special flavor. I doubt any ofthese products, with the exception ofpancetta, will be able to make it into theUnited States anytime soon.” DB
Italian Cured Meats
Chef Cesare Casella slices prosciutto at Parmacotto’s Salumeria Rosi
in New York City
DEC./JAN. 2009 DELI BUSINESS 31
When facing a tight pocketbook, consumersrevert to the familiar flavors of home
BY CAROL M. BAREUTHER, RD
During hard economic times,consumers always revert backto the basics. For many peo-ple, this brings back memoriesof home, family and a simpler
time, when home-cooked foods played amore central role in family life. Who doesn’thave memories of the extended family gath-ered around a table filled with comfortingfoods such as meat loaf and mashed pota-
toes, corned beef and cabbage or even chick-en and dumplings? No matter what part ofthe nation you hail from, there’s a particularfood that calls you home.
The current economic climate is one rea-son that a 2007 study conducted by NewYork-based Datamonitor America—cited inthe Madison, WI-based International Deli-Dairy-Bakery Association’s (IDDBA) report,What’s in Store 2008—revealed that craving
for nostalgic foods is on the rise. Twenty per-cent of the respondents surveyed claimedthey had purchased nostalgic comfort foodsmore often in the past year than they had inprevious years.
More consumers are now opting to dineat home rather than eating out to savemoney, but many find they have even lesstime to prepare their favorite comfort foodsdue to an increased work schedule caused
COMFORT FOODSTHRIVE IN
TOUGH TIMES
PHOTO COURTESY OF GROBBEL’S
32 DELI BUSINESS DEC./JAN. 2009
F E A T U R E
by company cutbacks. Now’s the perfecttime for deli operators to stand in the gap andoffer the flavors consumers want at pricesthat are easy on the pocketbook.
Back To The BasicsNan McGrath, director of retail sales for
the Lamb Weston brand of ConAgra Foods,Eagle, ID, says, “People are looking for a wayto feel safe and secure in today’s uncertaineconomy. Comfort foods, which are foodsreminiscent of a simpler time of childhood,
can fill this need.”“‘Home-cooked’ is another way to
describe comfort foods and so is ‘inexpen-sive,’” says Guy Giordano, president of Vin-cent Giordano, Philadelphia, PA. “Consumersequate comfort foods with a good value.”
Jim Daskaleas, vice president of productdevelopment for Walker’s Food ProductsCorp., Kansas City, MO, believes consumersare now bypassing the $6 lattes and otherextravagances and, instead, focusing onbasic dishes with simple ingredients.
“In other words, consumers are choosingfoods that tend to be comfortable on thepocketbook and provide more value for thebuck,”he says.
Shirley Leonard, marketing manager forSandridge Food Corp., Medina, OH, thinksseasonally falling temperatures play just ascritical a role as the economy in steering peo-ple toward more comfort food purchases.“Consumers look for hot and hearty comfortfoods, especially in the fall and winter.”
Taste, quality and convenience are traitsconsumers want in their comfort foods, saysJason Dobis, vice president of sales forHarry’s Fresh Foods, Portland, OR.“Restaurant dining is down and grocery traf-fic is up. Consumers are eating at homemore, but they’re not necessarily cookingmore at home.”
Jerry Shafir, president of Kettle Cuisine,Chelsea, MA, says supermarket deli-catessens should take advantage of the eco-nomic downturn and prepare more of thefoods that people are now yearning for.
“There’s a real opportunity for deli opera-tors to gain a greater market share of theconsumer’s stomach,” he emphasizes. “Thatmeans offering a menu selection of preparedfoods that encompass familiar comfort items,as well as those that are innovative, healthy,ethnic and indulgent.”
The Comfort Consumer“Everyone is a comfort-food consumer,”
relates Kathy Lenkov, communications man-ager for Glendale, CA-headquartered NestléProfessional, the firm that produces theStouffer’s brand.
The comfort-food shopper, says MonaDoyle, president of the Consumer Network,Philadelphia, PA, “reflects more of a state ofmind than a demographic statistic. When wetake a hit, we look for comfort foods. Life isfull of hits.”
According to the 2007 report, ComfortFood: Nostalgia Meets Contemporary,released by Olson Communications ofChicago, IL, the Y-Generation (people bornbetween 1980-1999) and Baby Boomers(those born between 1946-1964) inter-viewed reflected no significant differences inhow they determined which foods they con-sider comfort foods, the way they like themto taste or which version they prefer.
Phil Masiello, vice president of sales andmarketing for Farm Rich Foods, Commack,NY, says consumers are now focused onhealthful, fresh, great tasting and—aboveall—quick meal solutions. “The customer isprimarily mom shopping in the supermarket,with more and more men beginning to takeon the shopping responsibility. Everyone islooking for a way to save time.”
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A Twist On The TraditionalComfort foods, adds Consumer Net-
work’s Doyle, “are what your mother orgrandmother fed you when you got sick orscraped your knee. That could be anythingfrom Jell-O to mashed potatoes, hamburg-ers, grilled cheese or meat loaf. Pizza is acomfort food for many people under the ageof 50. It’s an individual thing. There are somany variations.”
Regionality and ethnicity also play a role,Doyle adds. “Comfort foods in South Floridaare pulled pork, sweet plantains, and beansand rice. In New York, its chicken soup, meatloaf and macaroni and cheese. In the Mid-west and Texas, it’s barbecue and chili.”
Pot roast is a classic American favorite,and Vincent Giordano has seen a recentincrease in sales of the company’s pre-cooked version, affirms Giordano. “We’veespecially seen growth in pot roasts in delisthat feature prepared foods.”
Comfort foods are not limited to entréesbut can include everything from side dishesto soups and salads. Tried and true versionsremain popular, but those with unique flavortwists are gaining steam. According to Com-fort Food: Nostalgia Meets Contemporary,when certain food items were characterizedas comfort foods, significantly more of thechefs surveyed admitted to having modified,altered or modernized them in some way.This held true for mashed potatoes (80 per-cent), meat loaf (75 percent), soups (61 per-cent) and lasagna (57.5 percent).
Sandridge’s Leonard believes it’s impor-tant to offer both traditional and altered ver-sions of the most popular comfort foods butcautioned against going to extremes withthe flavors. “You have to be careful, though,that the dish is still familiar,” he says. “Whenconsumers don’t know the name or flavor,they tend to shy away.”
Barbecued pork is another soothing food,says Keith Wilcox, who serves as both direc-tor of cooked meats and sales and marketingmanager for the deli division of Curly’sFoods, Edina, MN. “Some delis like to addtheir own sauce to regionalize it.”
Pork Carnitas, cooked pork with lime andgarlic flavoring, and Beef Barbacoa, chuckroast with citrus and chili, are two new itemsfrom Curly’s.
“These meats, especially when merchan-dised along with rice, beans and tortillas, areconsidered comfort foods by Hispanic shop-pers,” Wilcox says. “Mainstream customersalso enjoy these items as witnessed by thepopularity of restaurant chains like theChipotle Mexican Grill [the 700-plus outletchain based in Denver, CO].”
Corned beef hash is a true bit of Ameri-cana, a relatively inexpensive dish dating
back to the early 1900s and the nation’s earlydiners known as hash houses. Farm RichFoods launched its version of this popularbreakfast treat to help consumers enjoy it inthe comfort of their homes.
“As customers cook at home more, oneof the biggest meals they’re preparing is theweekend breakfast,” says Masiello. “Hashseems to be a very popular alternative tosausage or bacon.”
Potatoes, of course, in all their differentversions, have always been a popular com-fort food. ConAgra’s Lamb Weston recentlyintroduced four new stuffed potatoes, orSpudz, which come in several varieties,including broccoli and cheese, and chipotleCheddar. “These represent a combination oftwo great comfort foods—potatoes andcheese,” says McGrath.
Harry’s Fresh Foods is targeting shoppersseeking organic comfort foods with its seven-item line of side dishes. These include Or-ganic Spring Vegetable Risotto, OrganicCreamy Macaroni and Cheese and OrganicZesty Penne Marinara.
“Customers who purchase organic foodsconsider it a lifestyle and don’t abandon thistype of purchase in tough economic times,”says Dobis. “We do notice that if the pricespread is higher than 20 to 25 percentbetween organic and conventional, then itbecomes problematic to trade up new cus-tomers to organic.”
New taste twists have also come tomacaroni and cheese. Nestlé Professionaloffers this classic dish made with VermontCheddar and seasoned with applewoodsmoked bacon under its Stouffer’s brand.Sandridge’s upscale version is made withGorgonzola cheese and penne pasta.
Chicken salad is also getting tweaked,with Sandridge offering unique flavors creat-ed with applewood smoked chicken orchicken flavored with Dijon mustard.
Sheri Oppenheimer, manager of commu-nications for North American Foodservice ofthe Campbell Soup Co., Camden, NJ, saysthe satisfying and familiar qualities of soupare synonymous with comfort.
“We have several products that take a
When consumers participated inthe 2007 Comfort Food: Nos-talgia Meets Contemporary
survey from Chicago, IL-based OlsonCommunications, they were asked todescribe their favorite comfort foods.The top choices were desserts such aspies, cakes, cupcakes, candy and choco-late. Armed with such powerful infor-mation, deli operators can pounce onsuch consumer passion by merchandis-ing desserts as part of meal deals.
The 2007 Dessert Consumer TrendReport from Technomic Information Ser-vices, Chicago, IL, revealed 85 percent ofconsumers surveyed ate dessert once amonth or more, 57 percent ate dessert“very frequently” or “often” (at leastonce a week), and nobody respondedthey “never” ate dessert.
It’s no surprise, then, that Tom Vier-hile, executive editor of ProductScanOnline, Naples, NY, defines comfortfoods as hot, gooey and fattening.“They’re usually high in fat and sugar.Typically, you see the number of peopleon a diet decline when there’s a down-turn in the economy.”
Laura Marshall, director of marketingfor Knouse Foods, Peach Glen, PA,claims one of the nation’s legendarycomfort desserts is still as American asmom and baseball. “Apple pie appears to
be driving increased dessert revenueopportunities in the foodservice indus-try,” she says.
Knouse Foods produces ready-madepie fillings in a variety of flavors thatcan be easily used to create simple butcomforting dessert for grab-and-go orthe hot-food bar. “In the deli,” addsMarshall, “crisps tend to be more practi-cal than pie. For example, operators canspoon pie filling into a tray and top witha simple oatmeal or granola topping.They can merchandise this warm dessertby the pound on a hot-food bar or pre-portioned for take and heat.”
Any chocolate lover will swearchocolate is a comfort food deliveringmore pleasure, pound for pound, thanany other sweet. Capitalizing on thislove affair, Walker’s Food ProductsCorp., Kansas City, MO, introduced itsBrownie Bite Chocolate Delight earlierthis year. The new item consists ofsmooth chocolate mousse with tenderpieces of chocolate brownie bites swirledtogether with dark chocolate fudge.
According to Jim Daskaleas, Walker’svice president of product development,the delightful treats practically sellthemselves. “Display these behind thecounter and sell them by the pound,” hesays. “Demonstrate them, and you’ll def-initely drive demand.” DB
The Ultimate Comfort Food
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premium twist on familiar favorites, such asour StockPot Creamy Tomato Basil Bisqueand Fully Loaded Baked Potato and Ched-dar soups. The Tomato Basil Bisque, one ofour top sellers, is a great example of a pre-mium, innovative take on one of the mostclassic comfort foods we all know and love:tomato soup.”
Consumers particularly turn to creamsoups when the weather gets cold, says Ket-tle Cuisine’s Shafir. “That means cream ofbroccoli, cream of potato and cream oftomato, to name a few popular choices.”
Merchandising Tips And TricksCreate A Destination: If a comfort food
such as soup, for example, is something a deliwants to sell, it shouldn’t be done in a smallway, says Dobis of Harry’s Fresh Food’s.“Make soup a destination. The key is to
intercept customers as soon as they walk inthe department. Let them see a full attrac-tive soup bar.”
“In our opinion,” says Shafir, “the bestsoup program offers a combination of hotready-to-eat soups, along with refrigeratedpre-packed soups to eat at a later time.Equipment to display soups in such a way is abig investment, but it’s worth it.”
Promotions also define the deli as a soupdestination. Dobis says delis should “adver-tise Friday night as clam chowder night,both in-store and in newspaper ad circulars.This will bring customers into the deli on aregular basis.”
Shafir believes the days of delis offeringonly one or two soups are over. “Now,most delis offer six or more varieties, suchas a cream-style and broth-based soup, aswell as chicken, tomato, vegetarian andseafood versions.”
The soup bar should be well signed, headds. “We suggest a description of each soup,as you would read it on a restaurant menu.
We can provide this product description andphotography for operators who want toincorporate it into their signature style.”
Cross-merchandise. Delis should followthe lead of some restaurant chains and offera choice of two selections for one price fromsoups, salads and sandwiches, says KettleCuisine’s Shafir. “This is a great way toincrease the total ring.”
Another promotional idea, adds Dobis, “isto offer a sandwich at the regular price and atub of soup for free or at a reduced price.”
ConAgra’s McGrath says more sales canbe made by cross-merchandising hot sand-wiches with a bag of fresh potato chips. “Weoffer three types: natural or russet, rose-col-ored and purple. On a pound for pound basis,these are more profitable for the deli thancommercial bagged chips.”
Delis can also learn a trick or two from
takeout pizza restaurants. “Cross-merchan-dise pizza with breaded mozzarella cheesesticks,” McGrath adds. “This is what today’skids think of as comfort foods.”
Meal Deals. Many restaurant chains seekto attract diners by promoting an appetizer,entrée and dessert for one price. Delis canalso capitalize on this prix fixe concept bybundling items to create a single value-pricedmeal deal.
John McCarthy, Jr., retail trade managerfor Reser’s Fine Foods, Beaverton, OR, sug-gests offering a choice of selections in mealdeal programs. “Results from Reser’s Atti-tudes & Usage Survey show that consumerslike variety and want the ability to make theirown choices,” he says. “This means, forexample, offering a protein such as rotisseriechicken and a choice of side dishes. Theseside dish selections could include mashedpotatoes, macaroni and cheese or pasta. Or,for the holidays, it could be green bean casse-role, mashed sweet potatoes, stuffing andorange cranberry relish.”
Farm Rich Food’s Masiello notes cus-tomers are primarily looking for foods theycan take home and reheat quickly. “Theyprefer pre-packaged products that are easilyrecognizable with minimal preparation andavailable in the self-service case.”
Customize. Take a comfort food and mer-chandise it with a signature twist, advisesNestlé Professional’s Lenkov. “For example,take our ricotta lasagna and double stack itfor an appetizing presentation. Or, top it withan Alfredo or pomodoro sauce.”
McGrath believes delis can create theirown distinctive styles by being more creativewith traditional recipes. “Cycle in differenttypes of mashed potatoes, such as jalapeñoCheddar redskin or roasted garlic, as a sidefor rotisserie chicken.”
Lenkov says it’s simpler than most delimanagers think. “You can mix almost any-thing in traditional macaroni and cheese, forexample, peppers or meat, or basically anyvegetable or protein.”
Even without special meal-deal pricingand original creations, delis can ring up mul-tiple purchases by displaying complementaryside dishes with meats, such as macaroniand cheese with rotisserie chicken, saladswith deli meats, and sandwich spreads withfresh bread.
“Suggestive selling by the deli clerks andsampling make a difference, as do recipecards,” says Sandridge’s Leonard. “The moreshopper marketing conducted at the storelevel, the greater the chance of making thesale. Seventy percent of shoppers make buy-ing decisions in the store, and 68 percent ofthose decisions are impulsive.”
Multiple Locations. Merchandising anitem in a new location or in multiple loca-tions can attract the attention of shopperswho may overlook the product in its tradi-tional spot.
Some duplication isn’t bad, according toMcCarthy. “Typically, customers are eitherbulk or pre-packaged shoppers. However,the best customers are those who buy bothforms depending on their constraints at thetime. If you carry an item in only one area,you may miss customers.”
McCarthy emphasizes that the strategybehind multiple locations is giving con-sumers exactly what they want, which willalways produce more sales. “Productbehind the glass allows consumers to cus-tomize the amount of hot and ready foodsthey want, while grab-and-go offers refrig-erated convenience,” he says.
And convenience and an ample selectionof comfort foods will always translate intosatisfied customers, who, in turn, becomerepeat customers and transform a super-market deli’s bottom line. DB
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Going GreenPackaging manufacturers and deli operators jumping on the environmental bandwagon
BY CHRISTINA DAVIS ROBERTS
36 DELI BUSINESS DEC./JAN. 2009
Going green has moved center stage as the spotlightshines on eco-friendly products and business strategiesacross every industry. Green issues are a hot topic,driving business decisions—including transportation,processing and new innovations in food packaging—
that affect the deli counter. Supermarket deli operations can expectleading packaging companies to provide new options that respond tothe need for sustainability, help them meet corporate initiatives andsatisfy consumer demands.
Perhaps a natural outgrowth of the organic food movement, greenpackaging refers to the use of environmentally friendly practices in theproduction and disposal of packaging products by taking into accountthe comprehensive impact on the environment, humans and animals.
Understanding the concept of sustainability is imperative to identi-fying and bringing in-house those business practices and products thatwill provide tangible results. Sustainability practices increasingly affecthow customers view the businesses they patronize. Many eco-mind-ed consumers now take a company’s environmental practices intoconsideration before making their final purchasing decisions.
“Sustainability is not just about protecting the environment,” saysGareth Ackerman, chairman of the CIES World Food BusinessSummit Committee and Pick ‘n’ Pay Holdings Ltd., Cape Town,South Africa. “It has to do with issues such as food security, foodsafety, job creation and individual prosperity, healthful eating, fairtrade, ethical sourcing of products, labor rights, customer loyalty andpoverty alleviation.”
In fact, a joint survey by KPMG International, Amsterdam, Hol-land, and CIES in June 2008 at the CIES World Food Business Sum-
mit in Munich, Germany, revealed that 56.6 percent of thoseresponding claimed sustainability is now a core element of businessstrategy. Pressures such as legal requirements, voluntary codes, taxesand the cost of reducing carbon dioxide emissions are fueling thedemand. In the report, Neil Austin, KPMG’s London, England-basedglobal chairman for consumer markets, says,“The adoption of sus-tainable business strategies is not primarily driven by formal require-ments, but rather by the imperative of business need.”
Greener PackagingOne of the easiest ways for delis to contribute to a greener planet is
by using recyclable or biodegradable containers. Environmentallyfriendly packaging choices for foodservice have been steadily increasingand will continue to increase over the next few years. John Alexanian,sales and marketing director for Cube Plastics, a Toronto, ON, Cana-da-based manufacturer of food-grade storage containers, believes it’sboth a fascinating and challenging time for the packaging industry.
“Ultimately it’s important to all of us to find sustainable ways touse less and be less damaging to the environment,” he says. “Whenwe look at the green initiative, we think, what’s better than a reusableproduct? It’s not just about recycling and putting something throughthat process for a one-use container. We offer a sustainable productthat can go from freezer to microwave to dishwasher.”
Many environmentalists see material compostability as the ulti-mate goal in sustainability. Be Green Packaging, Santa Barbara, CA,produces a tree-free compostable tray container made from bulrush,a ubiquitous invasive plant that reseeds and regenerates itself andgrows in waterways throughout the Western Hemisphere. The com-
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pany discovered the plant while searching foran alternative to sugarcane-based products,which are less friendly to the environment.Be Green Packaging now oversees the entirebulrush process—referred to as a closed-loop cycle—from manufacturing to the finalcomposting of the used products. The com-pany successfully passed the vetting processfor Austin, TX-based Whole Foods Mar-kets, the retailer with the reputation for beingthe earth’s flagship green grocer; Be Green’sBulrush fiber containers are now utilizedthroughout the Whole Foods chain.
“The economic downturn is not going toaffect this movement because it’s not aneconomic disadvantage to going green,” saysRon Blitzer, president and CEO of BeGreen. “Pricing now is much lower than itwas five years ago.”
Consumer Awareness On The RiseAs more people become aware of envi-
ronmental issues, they’re noticing things pre-viously taken for granted in terms of wastecreation and garbage. “I have heard from deliretailers that customers are very vocal andlove it when they make the switch to bul-rush containers,”adds Blitzer.
Cities such as Seattle, WA, Santa Bar-bara, CA, and Oakland, CA, have banned or
are considering a ban on the use of certainpackaging materials. It’s a warning sign forthose in the packaging industry that changesare on the horizon. With a two-year leadtime required to make substantive changes,proactive companies will be the ones able tostay on the forefront of product development.
For deli operators, education is crucial.Learning when and why to use what type ofpackage depends on the nature of the food-service item and its time on the shelf. Howdeli customers ultimately feel about environ-mental issues and whether their actions anddollars support these issues will depend ontheir knowledge and education about thesubject. Their perspective will also varydepending on where they get their environ-mental information and whether a deli’spackages meet their expectations of what itmeans to “go green” in North America.
In the changing packaging environment,deli executives will need to be gatekeepers ofsuch information, says Bob Wills, presidentof Cedar Grove Cheese, Plain, WI, a manu-facturer of certified organic cheeses. Willscompares the green packaging movement tothe organic food movement.
“Standards can be met, but the reality ofwhat consumers might agree on as their defi-nition of organic or sustainable might not be
the same,” he explains. “Companies canadhere to the regulations set by a particularindustry organization, but the reality is verydifferent from what consumers might iden-tify as being organic.”
Deli Operators On The ForefrontThe supermarket deli is a perfect place to
address sustainable packaging, as well as thegreen practices used in producing it, accord-ing to Wills.
“The deli has a lot more flexibility to pro-mote local products that require less trans-portation and utilize an efficient distributionsystem,” he adds. “So much of the informa-tion on a product package doesn’t actuallycover a lot of the green stuff going on.Organic doesn’t just mean a product is freefrom recombinant bovine growth hormone.”
Wills believes deli operators are in themiddle of the food supply chain and at thevanguard of the green movement, needing toconvince suppliers to use environmentallyfriendly packaging, as well as educating con-sumers on its importance.
“The level of concern is at the highestlevel it has ever been,” Wills notes. “Mostconsumers recognize there are seriouschanges to our environment that are man-made or heavily influenced. Customers willmake a green choice within a range of price,if they believe they can make a difference.”
Many consumers may already be usinggreen packaging without knowing it. Someclear plastic containers such as those foundon salad bars or used for grab-and-go foodsare made from a corn-based resin known aspolylatic acid (PLA), according to Tracy Mur-phy, southeast regional sales manager forInnoWare Inc., an Atlanta, GA-based manu-facturer of disposable plastic and paper prod-ucts for prepared deli foods. InnoWare pro-duces both the clear lids and darker-coloredbases from raw materials grown strictly in theUnited States. The containers can be used forfood temperatures no higher than 120° F, sothey are not recommended for hot foods oruse in the microwave. They are compostablein a commercial composting facility, wherethey revert to a soil product used for crops oras landfill in residential areas.
“Consumers are stressing they wantmore of a closed loop, but even if you aren’table to close the loop entirely, you are keep-ing natural resources intact,” Murphy says.“If you choose to compost in a commercialcomposting facility, it will take 60 to 180days. If there’s not a composting facility read-ily available, it can be recycled.”
Companies are adding or redefining posi-tions internally to address the growing needof integrating environmental issues withstandard business practices. Tedd Heilmann,
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general manager of Organic Prairie, LaFarge, WI, a producer of organic meats formore than a decade, notes that his companyrecently hired a sustainability director toreview energy audits, carbon use, trans-portation costs and methods.
“Organic and sustainability issues are get-ting people’s attention as the mass markethas taken on organic meats,” he says. “Weare feeling the consumer pull and simplyresponding to what the stores that sell ourproducts are asking for. Consumers are pay-ing extra for green products, and salesgrowth is strong.”
Legislating The EnvironmentMark Spencer works as the emerging
materials and sustainability business managerfor Pactiv, a Lake Forest, IL-based packagingmanufacturer. One of his primary responsi-bilities is to search for new materials and plantheir application and configuration for foodprocessors, foodservice establishments andsupermarkets. He must also stay on top ofnew packaging regulations and legislativechanges designed to reduce solid wastearound the country.
For example, the California cities ofSanta Monica, Malibu and Oakland, alongwith Seattle, WA, have banned polystyrenecontainers, most commonly known as Styro-foam, in an effort to reduce waste and pro-mote recycling. The new laws may be aheadof the science in terms of providing alterna-tive cost-effective ways for alternative pack-aging, but the groundswell of local concernsis still spurring legislative action. Performanceof green materials will continue to improveand their costs will gradually fall, but currentperformance is limited compared to existingnon-green containers.
“We’ve not seen what some of thesegreen materials can be yet,” Spencer says.“In the short term, we’ll be on the lookoutfor new materials with better performance atlower costs as technology improves. Mostgreen materials don’t meet the temperatureand rigidity needs for foodservice right now,but in three to five years, they will.”
On deli meats, most supermarkets usehigh-barrier shrink film, which is primarilymade of polyvinylidene chloride (PVdC)—also known as Saran—a material environ-mentalists hope to eliminate in the future dueto concerns about toxic fumes created dur-ing its production and incineration. Becauseit can’t be recycled, Saran is already bannedin much of Europe and may soon face bansin the United States.
“The ban in Europe has driven a trend tocreate thinner and higher-grade food packag-ing,” says Ryan Till, packaging specialist atAvon, OH-based Carroll Manufacturing &
Sales, which produces the Flavorseal brandof packaging. “We are now innovatingPVdC-free, chlorine-free barrier packagingthat is more environmentally friendly andrecyclable.”
According to Till, the company’s goal is toreduce current non-green packaging thick-ness by 33 percent and therefore create lesspackaging waste.
“An advanced manufacturing process anda higher grade of plastic to increase thestrength of the material will enable us to
reduce the thickness of the bag,” he says. “Itwill be stronger but thinner.”
Organic Prairie’s Heilmann emphasizesthat consumers have so far proved willing topay extra for humane animal treatment andgreener, organic products.
“We all need to adopt a leading edge, hesays. “As the Wal-Marts of the world start toaddress real change, finding that it’s just goodbusiness to reduce waste and conserveresources, then we’ll find we’re no longer onthe fringe.” DB
M E R C H A N D I S I N G R E V I E W
Before sushi made its appearance on theLos Angeles dining scene in the mid-1960s, the Japanese dish of raw fish,vegetables and rice was basicallyunheard of in the United States. Little
by little, the new form of cuisine grew inpopularity, first among Japanese business-men and other ex-patriots living in California,and then among the more adventurousAmericans willing to try something new.Soon the California Roll, which utilizescooked crab or imitation crab instead of rawfish, was invented to appease diners leery ofeating uncooked fish. By the 1970s, sushirestaurants had begun popping up all overthe United States to satisfy the hunger of anation in search of a new and healthful culi-nary option.
Fast-forward to the New Millennium,and grab-and-go sushi and sushi bars arenow a staple of many supermarkets. Todaynearly a quarter of supermarket shoppersuse the deli sushi station at least one to threetimes a month, according to U.S. GroceryShopper Trends 2008 from Arlington, VA-based Food Marketing Institute. Althoughthe sushi sector is still growing in leaps andbounds, new merchandising techniques maybe needed to attract and maintain con-sumers feeling the economic pinch.
Aaron Petrovsky, vice president forHissho Sushi, Charlotte, NC, believessupermarket deli operators should beginpublicizing that they offer high-quality sushiat a much lower price point than a typicalsushi bar.
“Difficult economic times will requireretailers go about merchandising sushi in adifferent way,” he says. “Fresh sushi is a lux-ury item, but grab-and-go sushi in the super-market—the average meal is in the $6range—is still a more cost-effective optionthan dining in a sushi restaurant, which canoften exceed $20. Promoting the freshnessand health benefits of sushi may help, too.”
Safety First A first step toward gaining and maintain-
Strong Sushi In A Weak EconomyEmphasize safety, wise marketing and trends to maintain interest in your deli’s sushi program
BY BOB JOHNSON
40 DELI BUSINESS DEC./JAN. 2009
ing sushi market share is to offer safe sushiproducts, and that begins with suppliers.
“The product we sell is really safe sushi,”says Tara Milligan, director of marketing forChicken of the Sea, San Diego, CA. “It isheat sterilized, which makes it safe, but it’snot raw like most sushi.”
In addition to tuna, Chicken of the Seaproduces salmon, shrimp, crab, oysters,clams, sardines and mackerel, all of whichcome packaged in cans, pouches or sealedplastic cups. The heat sterilization processmakes the products shelf-stable, so theydon’t require refrigeration until the containershave been opened.
Raw sushi manufacturer and distributorLee Kum Kee, Los Angeles, CA, sought andearned its International Organization forStandardization (ISO) 9002 certification toensure the safety of the company’s products.
“We harvest the raw material from ourown oyster farms,” says Greg Haradiran,brand manager for the firm.
Petrovsky believes deli operators and sup-pliers must work as a team to ensure the safehandling of raw sushi. “Sushi bars, with sup-
port from a professional sushi company andtrusted sushi brand, are key to food safety,”he says. “The company needs to have atrained support staff, internal HACCP [haz-ard analysis and critical control point ] plansand detailed training/operations manuals forthe chefs to adhere by.”
Ensuring the deli handles sushi safely maybe sufficient for a store’s operation, but it’snot always enough to placate consumersconcerned about the safe handling of rawfish. Sometimes they need to see sushi beinghandled properly with their own eyes.
“It is optimal for the chef to be in the delior prepared foods section with a proper sushicase, allowing the chef to prepare sushi daily,facing and interacting with the customers,”Petrovsky says. “This re-enforces the per-ception of freshness, which is very importantto sushi consumers.”
Delineate The SpaceA successful sushi program requires a sig-
nificant space commitment, particularly ifthe deli staff plans on putting the preparationarea in public view or offering its own sushi
M E R C H A N D I S I N G R E V I E W
bar. The latter requires at least 150 to 200square feet of space but would pay for itselfwith the right consumer base, according to Hissho Sushi’s Petrovsky.
“A full-service sushi bar staffed with atrained sushi chef and accompanied bygrab-and-go sushi is the most effective wayfor merchandising sushi,” he says. “On-sitechefs, coupled with extensive sushi menusand customer interaction, are key for loca-tions that have the clientele. Regular spe-cials, promotions, product sampling, color-ful menus and introducing new productsare also important for the operation to flourish.”
Stores that do not have the necessaryspace for a full-service sushi operation shouldfocus on the grab-and-go sushi format andcustomer convenience, according to LeeKum Lee’s Haradiran.
Chicken of the Sea’s Milligan recommendsemphasizing the timesaving aspect of grab-and-go. “I would think grab-and-go is themost effective way of merchandising sushi.”
And supermarkets without a sushi pro-gram needn’t be afraid of starting one, notesPetrovsky. “Sushi is a highly fragmentedindustry with relatively low barriers to entry.Supermarkets should feel comfortable andconfident their sushi partner will perform and
be responsive to their needs.”
Be A Trend SetterAlthough sushi has been growing in pop-
ularity among mainstream American con-sumers for a quarter of a century, it hasmade significant strides within the last eightto 10 years, a fact Milligan attributes to anincreased interest in more healthful eating.Supermarket delis must therefore stay on thecusp of emerging sushi trends and flavors inorder to keep the interest of existing con-sumers and attract the attention of those justjumping onto the sushi bandwagon. Theymust also capitalize on the healthful andnutritional characteristics of sushi as com-pared to other fast foods, while emphasizingthe convenience of grab-and-go.
Haradiran explains that new flavors, suchas hoisin—a sweetened paste made fromsoybeans, which is often referred to as Chi-nese barbecue sauce—are beginning to catchon in the United States. “American palateshave become a lot more open to other fla-vors, including raw fish,” he says. “And peopleare aware that sushi is healthful.”
Petrovsky believes there is plenty of roomfor growth in new items, particularly thosethat are natural and not dyed with artificialcolors to make them more eye appealing.
“Multi-grain rice has become popular recent-ly due to its health benefits,” he relates.“Although not really new trends, natural gin-ger and wasabi are surprisingly not widelyadopted yet.”
Due to the tight economy, some delisushi departments are beginning to offer achoice of more economical items to helpease the strain on consumer wallets. Thisalso includes the incorporation of less-expen-sive fish in some products.
“Some of the sushi makers are consider-ing tuna as a filler, which gives you morevariety,” Milligan says. “Tuna, historically, hasbeen a lower-cost value product for the con-sumer, so it does well in harder times.”
Even if the economy dictates a shift in theproduct mix, it won’t affect consumers drawnto sushi in search of fresh food that is differ-ent and healthful. In order to continue toattract new converts, Petrovsky believessupermarket delis should include sushi prod-ucts, such as the California Roll, that enablecustomers to enjoy the unique creations ofrice, fresh fruit and/or vegetables withoutjumping head first into the taste of raw fish.
“The freshness, health benefits and therealization by consumers that sushi does notalways mean ‘raw fish’ have been driving theincreasing popularity of sushi,”he says. DB
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Christmas may be long gone, but theparty isn’t over yet. Soon after the lastwreath is packed away, consumersbegin to think of the Super Bowl fortheir next get-together.
This year’s celebrations could be especial-ly important for supermarket delis becausethe current economy has many peopleeschewing restaurants and other expensiveoutings, opting to spend time gathered athome with family and friends. When memo-ries of New Year’s Eve fade, it is the perfecttime for delis to extend the holiday feastingfervor further into the New Year and rack upincreased revenues with pre-planning andsmart marketing concepts.
An estimated 7.5 million Super Bowl par-ties will take place this February 1. Thatmeans a lot of social snacking on items suchas wings, pizzas, dips and sandwiches. TheSuper Bowl is, in fact, synonymous withentertaining, according to Tom Hickey, mar-keting director for DCI Cheese Co., Rich-field, WI. “The Super Bowl is a wonderfulmerchandising event and leads to store traf-fic and merchandising creativity,”he says.
Business typically slows significantly afterNew Year’s Day, with customers frequentlyreining in their spending, notes Eric Le Blanc,director of marketing, foodservice retailing,for Tyson Foods Corp., Springdale, AR.“Super Bowl is an important event, addingexcitement and opportunities for impulsesales,” he says. “It’s a critical time to gain afoothold in a low-traffic timeframe.”
Deli operators can take advantage ofgame day as a way to change customers’shopping habits and “convert them into regu-lar deli patrons throughout the year,” explainsDan Emery, vice president of marketing forPilgrim’s Pride, Dallas, TX, the makers ofseveral types of fully cooked wing items. “It’sa really good opportunity not only to sell a lotof product but also to let new people knowthe deli is there as well.”
Rod Steele, director of category planning
10 Ways To Win Big During The Super BowlGrab sales for the big event and keep customers coming back for more.
BY JACQUELINE ROSS LIEBERMAN
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for Sara Lee Deli, Downers Grove, IL, saysmost deli dollars during Super Bowl build-upare due to “incremental point-of-sale merchan-dising that does a great job of converting thetraditional non-deli user into a deli consumer.”
With that in mind, here are 10 ways toturn this year’s Super Bowl into an end-zonedance for supermarket delis:
Get On The Field EarlyAccording to the National Association of
Pizzeria Operators, Louisville, KY, sales ofpizzas increase about 10 percent on SuperBowl Sunday. For a bigger slice of the pie,supermarket delis should first make them-selves known as the go-to pizza place forfootball parties long before the Super Bowl.
Tyson’s Le Blanc believes the opportuni-ties begin with college bowl games and runthrough Super Bowl Sunday. “The sameproducts have application for multiple events,and it only makes sense to use the same pro-motional materials and product offerings formultiple occasions,”he says.
Waiting too late to merchandise the delifor the Super Bowl can cost in the long run,according to Dominick Frocione, vice presi-dent of sales for Ward Hill, MA-basedCedar’s Mediterranean Foods Corp., which
makes hummus, salads, wraps, spreads, pitachips and desserts. “By then, menus arealready planned, and all you will see areimpulse purchases,” he says. “Start somemerchandising a few weeks early so your reg-ular customers can start thinking about whatthey want to serve.”
According to Patrick Ford, internationalmarketing director for Raleigh, NC-basedFord’s Gourmet Foods, the maker of BoneSuckin’ Sauces and Fire Dancer Nuts, super-markets need to create the relationshipbetween their delis and game day. “Let themknow you’re going to be the Super Bowlplace,”he advises.
Prepare Your Game PlanSuper Bowl means big business for finger
foods, such as pizzas, sandwiches, dips andchicken wings. In fact, the National ChickenCouncil projects that more than one billionwing portions will be consumed during the2009 Super Bowl weekend.
Pilgrim’s Emery emphasizes that SuperBowl Sunday is the biggest day of the yearfor wings. “We’ve got Wing-Dings andWing-Zings, and they’re really perfectbecause the operator can prepare them inthe deli fryer.”
Boneless Wyngs are one of Tyson’sbiggest sellers for the game. “They’re espe-cially popular among consumers uncomfort-able with gnawing on a bone in public,”explains Le Blanc. “They offer the same fla-vor delivery but in a bite-size, boneless form.”
Dips play an important roll on game dayas well, serving as a centerpiece for SuperBowl socializing. “Typically the hummus cat-egory enjoys a 20 percent spike aroundSuper Bowl Sunday,” says Howie Klagsbrun,vice president of sales for Sonny & Joe’s,Brooklyn, NY. The firm sells a full line of pre-garnished hummus, including Just Hummus,Hot Enough Hummus, Hummus Galilee(with Galilee olives), Hummus Pignoli (withpine nuts) and Garlic Addiction.
Cedar’s Frocione is excited hummus hasfinally crossed over into the mainstream. “Ithas transcended from what was originallyperceived as a health food to an everydayproduct that appeals to everyone,” heobserves. “I serve it at my Super Bowl par-ties and am always happy to see it’s gonelong before the traditional cream cheese dipsare even touched.”
Sandwiches maintain their role as anenduring finger food right through footballseason, according to Sara Lee’s Steele. “We
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get a significant bump in Sara Lee deli meatand cheese shipments during the Super Bowltimeframe. This is due to the important rolesandwiches have during football parties, andSara Lee provides all the components for agreat Super Bowl sandwich event.”
Open The Playing FieldIndustry experts recommend making
more room for all the tantalizing items avail-able for a Super Bowl party. The best-sellinggrab-and-go items should be moved to thefront, so busy shoppers do not have to wastetime searching.
The cheese selections should also beramped up, according to statistics released bythe Wisconsin Milk Marketing Board(WMMB), Madison, WI. Market researchmanager Suzanne Isige says U.S. consumerspurchased 51 million pounds of cheese insupermarkets during the week leading up toSuper Bowl 2008, which is 19 percent higherthan an average week. “This makes thisweek the fifth highest of the year for cheesepurchases,”she notes.
Since Super Bowl fans will be in themood for more cheese snacking, DCI’s Hick-ey recommends making extra room for thecompany’s Black Diamond Aged Cheddars.“This is the ideal snacking cheese,” he
explains. “Consumers can include Black Dia-mond as part of a cheese course to serve fortheir parties, or they can slice it and servewith crackers. Our Black Diamond ExtraSharp and merlot cheese spreads areabsolutely perfect for entertaining.”
Hickey also recommends the King’sChoice line of imported snacking cheeses,which includes both plain and flavoredHavarti, Gouda, Edam, Fontina and others.
Tack On The Extra PointThe deli’s biggest advantage over other
venues is the ability to offer busy con-sumers same-day game snacks withouthaving to make extra stops. A shopper canpick up sodas, chips, dips, sandwiches, piz-zas, wings and more under one roof with-out sacrificing quality.
Cedar’s Frocione believes facilitating theshopping experience will increase cash regis-ter totals. “Help the consumer by pre-select-ing some great products and great values andset them up in a special display section forSuper Bowl.”
Consumers are more than willing to payfor the convenience if delis facilitate theirshopping experience, says Tyson’s Le Blanc.“Providing the consumer with checklists orplanning tools can make your deli a destina-
tion, even at full retail, so it’s possible to buildincremental sales without sacrificing margin.”
Such helpful checklists can even help sellitems in other departments, Le Blancexplains.“The deli will be passionate aboutselling wings, but there are opportunities forother sides such as cold salads, bakery itemsand paper goods.”
Go On The Merchandising OffensiveVisibility is crucial for increasing impulse
sales, and effective displays are those thatencourage consumers to stop and take a sec-ond look. “Remember, the No. 1 reason shop-pers make a prepared foods purchase whenthey had not planned to shop the category isthey saw the product,” adds Le Blanc. “Makeyour displays visible, especially utilizing sec-ondary display areas, and you have a winningstrategy for incremental sales.”
Delis need not go it alone, as most suppli-ers are happy to provide display materials.“We work with our customers on in-store,cross-merchandising opportunities withrecipe suggestions to maximize merchandis-ing efforts,” says Hickey.
Ford’s Gourmet Foods even offers onlinestore support through the company’s Website. Deli managers have access to printablesigns, recipe cards and banners, as well as a
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both deli workers and customers time duringSuper Bowl build-up.
Stefano Foods, Charlotte, NC, makes aunique pizza-like item known as Stefano’sRip-n-Dip, which is a stuffed bread ring thatcomes in either pepperoni and cheese orfour-cheese flavor and is accompanied by amarinara dipping sauce. Consumers just heatit up and serve.
Stefano's vice president of sales and mar-keting, Alan Hamer, says the Rip-n-Dip, likemany of the firm’s other products, was pur-posely designed for entertaining.“Shoppersseek high-quality, value-added party foodsthat are both crowd-pleasers and show adegree of creativity.
For a south-of-the-border twist, DonMiguel Mexican Foods, Anaheim, CA,recently introduced a deli tray that combinesmini tacos, mini empanadas and taquitos,available in either beef or chicken flavors. “It’sunique,” says Marilyn Vincent, senior mar-keting manager, “and they’re all hand-held,which makes them great Super Bowl items.”
Prepare For The Blitz Hamer advises delis to prepare in
advance for the challenge of the huge surgein demand created by the Super Bowl.“Compared to Christmas, where partiesbuild for a four-week period, Super Bowlaction is concentrated on a single day,” henotes. “This creates significant service chal-lenges for the deli: ordering enough product,having sufficient staff and balancing hot andcold food offerings. A lot of the pressure canbe taken off staff by serving ready-to-heatfoods that are shipped frozen and merchan-dised refrigerated.”
Timing is crucial for delis offering hot
foods, which must be maintained at propertemperature and humidity levels to avoiddrying out, explains William Rakow, corpo-rate executive chef for Alto-Shaam,Menomonee Falls, WI, a foodservice cook-ing equipment manufacturer. The companymakes a unique combination oven-steamerthat can cook food in half the time of a tradi-tional convection oven. “Everybody does agreat job of cooking,” he says. “It’s the hold-ing that can keep cooking foods and makethem dry out. We have special equipmentthat has no fans, and you can hold food formany hours without it drying out.”
Timing is also an issue for delis compet-ing with pizza shops for Super Bowl busi-ness. “Everybody wants their pizza at half-time,” adds Rakow. “And Super Bowl is oneof the biggest days for pizza. With a combi-nation oven-steamer, you can cook it, chill itand reheat it—and no one would knowbecause you don’t take the moisture outthe first time.”
Go For The Goal“Remember that Super Bowl is all about
fun, so create a sense of excitement in yourstore,” says Tyson’s Le Blanc. “Merchandis-ing, point-of-sale, in-store media and staffevents can all help bring a spirit of excite-ment that shoppers will find infectious toyour store.”
Inviting deli customers and staff to join inthe fun will set a festive mood leading toeven more sales.
“One option is to award prizes to themost creatively dressed customer and asso-ciate or to the winners of in-store SuperBowl trivia contests,” recommends DCI’sHickey. “Delis might also consider capitaliz-ing on the halftime entertainment, whichseems to be getting more publicity everyyear. This year’s half-time show is BruceSpringsteen, so they could give awaySpringsteen CDs to consumers as part of anin-store deli contest or tie the giveawaysinto purchases.”
Cedar’s Frocione Foods laments thateveryone does the same promotionalevents year-in and year-out and suggestsaltering the routine to create added interest.“Why not shake up the mix and do some-thing new?” he asks. “Maybe run some tie-inpromotions, such as buy a chip and get a freedip. We have had some retailers ask us tosplit a promo with another company, but notas many as you would think. Don’t look atSuper Bowl as just a one-week opportunityto see a lift in items you always sell; rather,use it as an opportunity to get initial trialfrom shoppers who might not try new thingsunless there is an incentive for them to makethat first purchase.” DB
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“how-to” section on demos with talkingpoints for deli employees.
Encourage Team CamaraderieThe trophy goes to the players who per-
form best as a team, and deli supervisors, like-wise, will score a bigger victory by workingjointly with suppliers to implement a success-ful cross-merchandising strategy. Sonny &Joe’s Klagsbrun says delis are usually on thefront line of sales scrimmage during SuperBowl build-up but frequently overlook theopportunity to merchandise accompani-ments.
“Sonny & Joe’s hummus can be cross-promoted with many things typically sold inthe deli, including upscale crackers, bagel andpita chips, mini bagels, pitas, flatbreads, freshbreads and a host of deli-case cooked foodsand standard meats,” he explains. “Sonny &Joe’s also has a line of pickles—sour and half-sour—that come in a bucket with a handle.It’s a wonderful accompaniment to any SuperBowl deli package.”
Huddle For More ProfitsPutting the entire party on a platter for
your deli patrons is an effective merchandis-ing tool they’ll appreciate for the addedtime-savings.
“When it comes to wings, platters defi-nitely work,” reports Emery of Pilgrim’sPride. “We have accounts that do huge busi-ness with platters.”
Cold platters are just as popular. Klags-brun says Sonny & Joe’s pre-garnished hum-mus is “perfect to place in the center ofSuper Bowl platters with vegetable crudite,chips or breads for dipping.”
“Assorted sliced Sara Lee deli meats andcheeses, along with our new Sara Lee Sand-wich Dressings, make for a great Super Bowlplatter combination,”Steele explain
Shelby Weeda, president, King's Hawai-ian Bakery West, Inc., Torrance, CA, recom-mends utilizing King’s Hawaiian Bakery’s newSnacker Rolls on party trays with items suchas dips and wings. “And don’t overlook tradi-tional sandwich platters, which are always invogue due to ease of consumption.”
Cheer On The Players One-of-a-kind snacking items and special
accompaniments can make the differencebetween an average Super Bowl party andone that’s remembered long afterward. Fordof Ford’s Gourmet Foods recommends usingBone Suckin’ Sauces (available for foodser-vice in half-gallon containers) and BoneSuckin’ Seasonings to create flavorful ribsand wings. “It makes it a little different andhelps set you apart.”
Innovative pre-made products will save
S P E C I A L T Y C H E E S E
Spain’s Quintessential QuesosA good selection of Spanish cheeses drives sales and profits
BY ELIZABETH BLAND
48 DELI BUSINESS DEC./JAN. 2009
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Consumers are intrigued by noveltycheeses, but when in doubt, they fre-quently reach for their trustworthyfavorites. Although once considered“exotic,” many Spanish cheeses have
gained mainstream status. Considered thecornerstone of Spanish cheese sales,Manchego has become a fashionable—albeitsomewhat safe—choice for consumers.
As the general interest in Hispanic cultureand heritage grows, so does the curiosity sur-rounding the cuisine of Spain. Specialtycheese connoisseurs are finding the country’scheeses intriguing, fashionable and affordable,and cheese buyers must satisfy this cravingfor knowledge and flavor with a basic assort-ment of Spain’s best queso creations.
Mapping Spanish Cheeses Spain boasts more than 100 varieties of
native cheeses, 13 of which are Denomi-nación de Origen (DO) cheeses, a EuropeanUnion name-protection status known asProtected Designation of Origin (PDO) inEnglish. Classic Spanish cheese selectionsinclude those most commonly associatedwith the country, but opinions vary on whichones best represent the nation.
Tomás Lucas, marketing director forDehesa de los Llanos, Albacete, Spain,claims Manchego, which has been steadilygrowing in popularity in the United States, isthe nation’s most famous cheese.
Michele Buster, vice president of ForeverCheese, Long Island City, NY, believes thereare many other Spanish cheeses that canwin the hearts of American consumers justas Manchego has done. “There’s no onedefinitive style of Spanish cheese since eachregion considers its own as the Spanishideal,” she says. “For Spaniards, Manchego isnot always the cheese they mention first.”
For a well-stocked Spanish cheese case inthe United States, Buster suggests includingManchego, Drunken Goat, Naked Goat,Campo de Montalbán and Capricho deCabra cheeses.
The cheeses of Spain are just as complexas the nation’s varied geography. Although
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nearly every region of the county producescheese from the milk of cows, sheep andgoats, cow’s milk cheeses are primarily madein an area stretching from the northernAtlantic coast in Galicia to the Basqueregion in the Pyrénées; sheep’s milk cheesesare found in central Spain on the flats ofCastile-León, Castile-La Mancha and theExtremadura; and goat’s milk cheeses arecrafted along the Mediterranean coast and inthe Balearic and Canary Islands. There arealways exceptions of course.
Las Ovejas: The SheepMove over Manchego: There are other
tasty sheep cheeses roaming the shelves! Idi-azábal DO, a raw milk Pyrénées cheese orig-inating from Navarre and the primarily cow’smilk Basque region, is one of these. Thecheese is gently smoked for a delightful bal-ance of sweet and savory flavors.
A neighboring cheese, raw-milk Roncal,was Spain’s first cheese to receive DO pro-tection. Roncal is aged three to four months,during which time it develops a moist, slight-ly granular texture and nutty flavor hinting ofherbs, grasses, and flowers from the moun-tain pastures.
From the Extremadura comes Torta delCasar DO, one of Spain’s most famoussheep milk cheeses of the soft, spoonablecategory. The milk is curdled with the flor decardo thistle flower, making it suitable forvegetarians. Legend has it this style ofcheese owes its vegetarian origins to theJewish cheesemakers of the area who couldnot mix animal rennet with milk because of
their strict dietary laws. Although this cheesecan be gently sliced and plated, it’s bestserved scooped, according to ForeverCheese’s Buster.
Las Cabras: The GoatsWherever there’s a sprig of herbs or a
patch of grass in Spain, goats seem to havewandered. These hardy animals can surviveunder conditions of duress but also enjoy theluxury of lush pastures. Thus, goats havefound homes all across Spain, and their milkhas given rise to a broad variety of cheeses.
On the Mediterranean coast, Murcia alVino, or Drunken Goat, as it’s often labeled inthe United States, soaks in red wine, whilefurry gray Garrotxa wheels hide out in thecaves of Catalonia. Other goat cheeses hailfrom the sunny Canary Islands near Africa.Majorero DO comes from FuerteventuraIsland, where the goats produce a dense, aro-matic, high-fat milk. The resulting cheese canvary in flavor from sweet honey and thymeto aged versions made spicier by rinds sealedin oil and paprika.
Elsewhere, goat cheeses are completelydifferent yet equally tantalizing. “Bucheron-style cheese is hot, as well as French-stylemold rind cheeses,” relates Buster. “In fact,the entire aged-goat category sells well.”
Within this category fall Queso delTietar—also called Montenebro—andLeonora, both of which are from Castile-León. The shape of Montenebro is likened toa mule’s leg; it comes in a flattened log cov-ered in ash and mold. The paste of thischeese is dense, with aromas of mushroom
Manchego: The Golden Child
Considered one of Spain’sgreatest culinary contribu-tions, Manchego DO cheese is
produced only in the La Mancharegion from the milk of theManchega breed of sheep. It’s typi-cally sold at three ages—approxi-mately three, six or 12 months—andis recognizable for its herringbonerind. Manchego’s popularity hasskyrocketed in the United Statesover the past two decades.
Two Manchego cheeses wonhighest honors at internationalcompetitions in 2008: Dehesa de losLlanos, a raw 18-month artisanManchego, won Best of Class in thehard sheep’s milk category at theWorld Championship Cheese Contestin Madison, WI, last March; andLacteas García Baquero’s GranMaestre Manchego Curado, a six-month cheese, won a Gold Medal inthe ewes’ milk category for the sec-ond year in a row at the WorldCheese Awards in Dublin, Ireland,last September.
Paul J. Sullivan, director of salesfor Norseland, Stamford, CT, theexclusive importer of Lacteas Gar-cía Barquero cheese, says the two-time award validates the superiorquality of the Spanish company’sproducts. “We’re proud to representsuch a fine selection and bringthem to the forefront of the U.S.specialty cheese market.”
According to Tomás Lucas, mar-keting director, Dehesa de losLlanos, Albacete, Spain, obtainingoverseas recognition of his com-pany’s products was a “very impor-tant” achievement.
“This is confirmation that theItalians and the French are not theonly ones able to create excellentproducts,” he claims. “It shows therest of the world Spain can alsooffer an authentic treasure.”
The extreme weather conditionsendured by the sheep of La Man-cha—hot summers and cold winters,combined with a scarcity of waterand grass—add character to the milkused to create the award-winningcheese, he adds. DB
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and yogurt prevalent near the rind. For a brighter and grassier mold-encrust-
ed cheese, look no farther than Leonora, along brick of soft, cakey goat cheese thatpairs perfectly with Cava sparkling wine.
While Montenebro and Leonora cheesesshare the “goat log” look, they are distinctcreations. “They are of a similar style,”explains Forever Cheese’s Buster, “but thecurd is cut finer in Montenebro. The goatsare different breeds, and Leonora is a muchnewer cheese that is hand-made.”
Las Vacas: The Cows Cows may be in the minority in Spain but
they make their presence known throughseveral superb cheeses, such as Mahón DOfrom the island of Menorca and Tetilla DOfrom Galicia.
Named for the capital of Menorca,Mahón DO was once made of sheep’s milk,but after the British brought cows to theisland, the cheese evolved into a unique cowmilk delicacy. Ripened in underground caves,
these flat, square-shaped cheeses areencased in rust-colored rinds rubbed with oiland paprika.
Tetilla often elicits giggles at the cheesecounter; not only does its name translate as“nipple” in Spanish, but it also comes in alarge “Hershey’s Kiss” shape. It’s a springy,young cheese that is buttery, tart and milky.
Blended FamiliesAlso common are blended cheeses, many
of which use all three milks. Ibérico DO
looks much like a Manchego, but it’s made ofcow, sheep and goat milk and producedthroughout much of central Spain. Regula-tions require it contain at least 25 percent,but not more than 40 percent, of any onemilk type.
From Asturias, Spain’s intensely veinedblue cheese, Cabrales DO, is crafted fromcow, sheep, or goat milk. When grazing is atits best during the warmer summer months,Cabrales often includes all three milks. In thewinter, it’s made primarily from cow milk. DB
Unique Spanish Pork
Not only is Spain a country ofsheep, cows, and goats, it’salso home to pigs. With jamón
serrano leading the pack, Spanishcharcuterie includes lomo, chorizoand the pricey Ibérico ham, which hasonly recently become available inlimited quantities in the United States.
Often erroneously referred to as“Spanish prosciutto,” jamón serranois produced by different methods,with different pigs and the terroir of adifferent country.
“Spain is a very proud country,”says Dan Incaudo, vice president ofbusiness development and sales forCudahy, WI-based Smithfield GlobalProducts, which imports Campofríoproducts from Spain.
Kate Whittum, sales and market-ing director for Redondo IglesiasUSA, Garden City, NY, notes thatbecause serrano’s curing occurs at ahigher temperature than prosciuttocuring—causing more of the meat’swater weight to evaporate—it devel-ops a more concentrated, drier flavor.
“Serrano has a more complex fla-vor profile than prosciutto,” she explains. “It is a wonderful balancebetween nuttiness, porkiness andsalinity.” DB
As Americans rein in their spending andeat out less, they are looking to super-market delis for gourmet items to enjoyat home and serve at parties. As aresult, a slumping economy can be a real
boon for specialty crackers, flatbreads andother high-end consumer packaged foods.
During these lean economic times. smartretailers should take advantage of the cross-merchandising opportunities afforded bycrackers and flatbreads to help boost sales ofcomplementary deli items. When executedcorrectly, cross-merchandising enhancesproduct appeal, increases opportunity foradd-on sales and encourages deli personnelto think outside of the box.
The three ingredients of a successfulcross-merchandising campaign are pairingproducts, product placement and partneringwith manufacturers and/or retailers. Whenall three aspects are implemented success-fully, sales will follow.
Pairing ProductsSupermarket delis are ripe environments
for creative cross-merchandising because ofthe wide variety of products they encom-pass. The colorful and aromatic environmentof savory meats and cheeses, fresh saladsand enticing hot foods makes the mouthwater and creates the perfect spot forimpulse buying. And crackers displayed inthe deli benefit from the excellent comple-mentary company they keep. Sampling themwith other deli items is an excellent way tocreate consumer interest and educate shop-pers in the process.
Tom McGlade, CEO at Chicago, IL-based Rubschlager Baking Corp., says thecompany’s cocktail rye bread was designedas a vehicle for dips and spreads, but it’s alsogreat for creating appetizers to sample delimeats and cheeses.
The Three P’s Of Cross-Merchandising CrackersPairing, placement and partnering are key in cross-merchandising crackers and related deli itemsBY LISA WHITE
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“We utilize different methods for cross-merchandising, and this is largely dependenton the creativity of deli managers,” he says.“Mini sandwiches offer a wonderful oppor-tunity for deli managers not only to educateconsumers but also to present innovativeappetizer ideas.”
Because the crackers and flatbreads soldin deli departments are typically higher-endthan their counterparts sold in the groceryaisle, pairing with gourmet products can bebeneficial. Antonio Galati, director of busi-ness and development at La Panzanella,Seattle, WA, recommends topping his firm’slow-fat crackers with French cheeses, pâté,prosciutto and imported meats to helpaccent their gourmet appeal. “Although weoffer nine cracker flavors, the taste shouldcome predominantly from the topping.”
Galati believes it’s better to cross-mer-chandise according to the change of seasons,targeting picnickers and those on vacationduring the summer months and people look-ing for entertaining ideas in the fall and win-ter. In the summer, cross-merchandisingshould be geared more toward snacking, headds, with emphasis in the fourth quarter onappetizer accompaniments.
Demos are typically more popular in thefirst quarter of the year, when cracker and
flatbread sales are usuallyslowest. Many companiesprovide free products forsampling to help boostconsumer interest.
“We always send tast-ing samples to our cus-tomers, which help sellproducts,” advisesMarilyn Caine, partowner of AuntGussie’s Cookies &Crackers, Garfield,NJ. The company’spackages include userand sampling sugges-tions such as topping thecrackers with cream cheeseand strawberries, salsa withtomato, or cheese with jalapeños andred pepper.
Organic products in the deli are anotherwide-open segment for cross-merchandising.Organically minded consumers are alwayson the lookout for new items, with pricebeing secondary to their preference for foodsproduced without artificial fertilizers or pesti-cides. Hingham, MA-headquartered VenusWafers is jumping on the natural foods band-wagon in a big way with its eight-grain
organic crackers, which are packaged in clearcellophane containers so consumers can seeall their natural goodness. According toJames Anderko, vice president of sales, theseand other similar products offer increasedcustomer appeal and are now coming downin price as well. “We are getting more
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PHOTO COURTESY OF DOCTOR KRACKER
requests for organics or natural crackers inthe deli,” he explains. “Costs were prohibitivefor a while, but as organics become morecommon, the costs have become more in linewith non-organic foods.”
Because many consumers have balked atthe higher price of organic crackers in thepast, Venus’ Anderko insists sampling is evenmore important now that prices are falling.“Shippers and displays are best located aroundthe cheese case or by the hummus and otherspreads,” he says. “Consumers want to beeducated, and the best way is through passiveor active demos with crackers.”
Cross-merchandising also helps conveythe value of deli crackers, which typicallycarry higher price points than grocery crack-ers. Proximity also makes sense when pairingthem with deli meats and cheeses.
The Snack Factory, Princeton, NJ,includes an extra bag of its Pretzel Crisps orCiabatta Crisps with every order so delis cansample them at the full-service counter, saysMilt Weinstock, marketing director. “Crack-ers should be by the gourmet cheeses tomake it easier for consumers looking to pur-chase party food,” he notes. “Displaying twoproducts together provides an instant servingsolution, whether you’re looking to paircrackers with hummus for an appetizer orwith gourmet cheese for an hors d’oeuvre.We encourage delis to pair cheeses, spreadsand dips with our products while customersare waiting to be served at the deli counter.This is an intriguing way to facilitate sam-pling and increase impulse sales.”
Product PlacementIn addition to the wide range of product
pairings, there are several display options.Rubschlager has secured a place for its cock-tail rye beneath the full-service case in mostdelis, so consumers have come to expect itthere. The firm provides shippers retailerscan place next to complementary deli items.
“We recommend that our products be dis-played on front knee-knockers, in baskets orwithin cheese islands as tie-ins with comple-mentary products,” says Michael DiCristo,Rubschlager national accounts manager. “Themore display shippers are used, the more visi-ble the products are. These shippers also pro-vide deli managers with added flexibility tomove the displays, which can help reduce out-of-stock levels during peak periods.”
Other companies carve out space in thedeli for their products with special racks. LaPanzanella ships its products with their ownrack for just such a purpose, but Galati saysthe products can also be displayed on top ofthe specialty cheese gondola or under themeat case if other space is not available.
Aunt Gussie’s Caine advises against the
commonly used floor baskets and says tabledisplays beneath the deli counter are prefer-able to shelving for displaying crackers. Thecompany supplies cardboard shippersdesigned particularly for delis with little or noextra space. “Many stores use basket dis-plays because they’re simple, but shopping ishard enough without having to bend downto pick something up from floor level,” sheadds. “Tables are better for crackers, becauseit sets them apart from the similar, lower-endbrands found on grocery aisle shelves.”
Alan Konecny, director of sales at Dallas,TX-based Doctor Kracker, also believestable displays work best and emphasizes thatshippers and displays work well only whenplaced by the cheese case or adjacent tohummus and other spreads. “When partner-ing with a brand, its best to have a demo
next to the table,” he advises. “This givesboth sampling companies more traction inthe marketplace and more validity. Shipperswork well for introductory offers but are nota long-term solution to brand growth.”
Whatever the display situation, it’s benefi-cial to combine either passive or active sam-pling to help educate customers how productsare used. These can include pairing sugges-tions and recipe cards to help boost sales.
Picking PartnersJoining forces with one or more manu-
facturers can help cut demo costs for retail-ers, while providing added visibility to a cross-merchandising program.
Doctor Kracker joined forces with Ukiah,CA-based Bonterra Wine for a marketingprogram that began late last year in SanAntonio, TX-based H.E. Butt Grocery Co.(H-E-B) stores. Large table displays wereplaced in the deli, where the crackers werepaired with wine. It was so successful thatplans are in the works to expand this pro-gram to Cincinnati, OH-based Kroger Co.
54 DELI BUSINESS DEC./JAN. 2009
“CRACKERS SHOULD
BE BY THE GOURMET
CHEESES TO MAKE
LIFE EASIER FOR
CONSUMERS LOOKING
TO PURCHASE PARTY
FOOD.”
— Milt Weinstock, marketingdirector at The Snack Factory
S P E C I A L T Y C H E E S E
stores in the near future. “Wine partners arebeneficial, because they offer a differentdynamic and provide more validity in themarketplace,”Konecny says.
Doctor Kracker has also partnered withhummus companies for cross-merchandisingpromotions.“Hummus is a hot product rightnow, so this is a natural partner for us aswell,”he explains,
The right manufacturing partner can givea complementary product added visibility,more upscale appeal and a positive image.
Konecny suggests retailers offer in-store$1 discount coupons on Doctor Krackerproducts when purchased along with the
store’s private label cheese brand, which willaugment the sales of both. He encouragesmoney-saving, joint marketing effortsbetween manufacturers and retailers. “Co-demos allow manufacturers and retailers toshare costs, along with the benefits,” Konec-ny says. “Typically, the demo costs are splitfifty-fifty. But the bigger benefit is that thishelps connect consumers with how to usethe product. Consistent promotions withretailers effectively keep the product in frontof consumers and spark their interest.”
In today’s economy, manufacturers aremore concerned about demonstrating thevalue of their products. For this reason, pricebreaks and coupons have become moreprevalent in attracting customers who aredetermined to keep a tighter rein on theirgrocery budgets.
With innovative product pairing, creativeand visible displays, and joint marketingefforts between manufacturers and retailers,cross-merchandising crackers with othercomplementary deli items can lead to moreregister scans.
“Product success and failure is oftendetermined by cross-merchandising,” Rub-schlager’s DiCristo says. “Better merchandis-ing will sell more products.” DB
DEC./JAN. 2009 DELI BUSINESS 55
S P E C I A L T Y C H E E S E
“CONSISTENT
PROMOTIONS WITH
RETAILERS EFFECTIVELY
KEEP THE PRODUCT IN
FRONT OF CONSUMERS
AND SPARK THEIR
INTEREST.”
— Alan Konecny, director of sales at Doctor Kracker
56 DELI BUSINESS DEC./JAN. 2009
TechNewsMartin
Mitchell,technical
director of theRefrigeratedFoods Association(RFA) and manag-ing director of Certified Laboratoriescompiles TechNews.
The information has been compliedfrom press releases, news articles andgovernment announcements and policyclarifications. Additional information maybe obtained by contacting RFA byphone at 770-452-0660 or online at www.refrigeratedfoods.org.
CDC Study Finds Three Million U.S. Children Have Food Or Digestive Allergies22. Oct.08CDChttp://www.cdc.gov/media/pressrel/2008/r081022.htm?s_cid=mediarel_r081022_x
The number of young people who had afood or digestive allergy increased 18 percentbetween 1997 and 2007, according to a newreport by the Centers for Disease Control andPrevention.
In 2007, approximately three million U.S.children and teenagers under age 18—ornearly 4 percent of that age group—werereported to have a food or digestive allergy inthe previous 12 months, compared to slightlymore than 2.3 million (3.3 percent) in 1997.
The findings are published in a new databrief, Food Allergy Among U.S. Children:Trends in Prevalence and Hospitalizations. Thedata are from the National Health InterviewSurvey and the National Hospital DischargeSurvey, both conducted by CDC’s NationalCenter for Health Statistics.
The report found that eight types of foodaccount for 90 percent of all food allergies:milk, eggs, peanuts, tree nuts, fish, shellfish,soy and wheat. Reactions to these foods byan allergic person can range from a tinglingsensation around the mouth and lips to hivesand even death, depending on the severity ofthe reaction.
Children with food allergies are two-to-four times more likely to suffer from relatedconditions, such as asthma and other aller-gies, compared to children without foodallergies, the report said.
Other highlights:• Boys and girls had similar rates of food
allergies: 3.8 percent for boys and 4.1 percentfor girls.
• Approximately 4.7 percent of childrenyounger than 5 years had a reported foodallergy, compared to 3.7 percent of childrenand teens aged 5 to 17 years.
• Hispanic children had lower rates ofreported food allergy (3.1 percent) than non-Hispanic white (4.1 percent) or non-Hispanicblack children (4 percent.)
• In 2007, 29 percent of children withfood allergies also had reported asthmacompared to 12 percent of children withoutfood allergies.
• Approximately 27 percent of childrenwith food allergies had reported eczema orskin allergy, compared to 8 percent of chil-dren without food allergy.
• More than 30 percent of children withfood allergies also had reported a respiratoryallergy, compared with 9 percent of children
with no food allergy.• From 2004 to 2006, there were approxi-
mately 9,537 hospital discharges per yearwith a diagnosis related to food allergyamong children from birth to 17 years. Hos-pital discharges with a diagnosis related tofood allergy increased significantly over timebetween 1998-2000 through 2004-2006.
The mechanisms by which a person devel-ops an allergy to specific foods are largelyunknown. Food allergy is more prevalent inchildren than adults. Most affected childrenwill outgrow food allergies, although foodallergy can be a lifelong concern.
The full report is available atwww.cdc.gov/nchs.
OREGON: Advance Offers Revolution InFood Safety Testing27.Oct.08Oregon State UniversityScience Centrichttp://www.sciencecentric.com/news/article.php?q=08102724
Microbiologists at Oregon State Universityhave developed a new technology to detectillness-causing bacteria, an advance thatcould revolutionize the food industry andimprove the actual protection to consumerswhile avoiding the costly waste and massiverecalls of products that are suspected of bac-terial contamination but are perfectly safe.
The new approach—made possible by fun-damental research on the color changes inpigment-bearing cells from Siamese fightingfish—should be easier to use, faster and moredirectly related to toxicity assessment thanconventional approaches now used to testfood for bacterial contamination and safety.
The technology has been patented, andthe findings were just published in the pro-fessional journal Microbial Biotechnology.Further studies will be needed before the sys-tem is ready for commercial use.
“Rapid methods are not readily availableto directly assess the toxicity of bacterialcontamination in a user-friendly fashion,”said Janine Trempy, professor of microbiolo-gy and associate dean of the OSU College ofScience. “When this new technology is com-mercially available, we should be able toprovide a higher level of assurance to theconsumer, while avoiding the waste of mil-lions of dollars worth of food that is sus-pected of bacterial contamination but isactually safe.”
Bacterial illnesses associated with foodand water can produce symptoms rangingfrom mild stomach upset to severe illnessesand even death, and they are common. It’s
been estimated there are about 76 million ill-nesses of this type every year that cost theU.S. more than $10 billion.
Part of the problem is that conventionalfood safety testing done with DNA-basedtests or antibody-based methods only indi-cate the presence of specific bacteria, whichdoes not necessarily describe toxicity and thepotential to cause harm. Sometimes bacteriaonly exhibit the behavior that can cause ill-ness under specific environmental conditions,and it’s that toxic behavior that we need todetect, Trempy said.
“Bacteria are common on exposed sur-faces, including the food products we con-sume,” Trempy said. “Simply knowing theyare there doesn’t completely tell you, in adirect measurement, about their potentialto make you sick or whether the food issafe to eat.”
Existing tests only work to detect bacteriathat have already been characterized, basedon a specific sequence of DNA or type of pro-tein they produce. Such tests can’t tellwhether the contaminating bacteria are aliveor dead, they can’t directly assess their toxicpotential and sometimes don’t detect newlyemerging or genetically rearranged strains asbacteria mutate.
It’s possible, Trempy said, that portablekits could be developed that would notrequire specialized training to use. Resultswould be available in minutes and allow foodprocessors, distributors, handlers or even con-sumers to quickly assess food for contami-nating bacterial toxicity.
Several OSU graduate and undergraduatestudents assisted on this research and therecent peer reviewed publication. The Depart-ment of Homeland Security, Howard HughesMedical Institute, the Dr Harry B. and RalphH. Levey Philanthropic Fund and the TartarFoundation supported the student researchfellowships.
R etailers used to say, “The consumer is alwaysright.” Nowadays, it seems retailers are takinga somewhat different approach, revising the
statement to read, “The consumer is always there,”along with the unspoken sentiment, “no matter howwe treat them.”
Along these linesI’ve been noticing—on an all-too-frequentbasis—how com-monplace it’s becomefor one or two deli
brands to dominate the delicase and/or the self-servedisplays. It’s not that I haveany objection to thesebrands. It’s just the practiceleaves little room for con-sumer choice and minimizesnew product experiences. Ifthe consumer is always right,and trends indicate con-sumers are seeking out morediverse and interesting culi-nary experiences, I would think deli operators would bescrambling to accommodate a broader and more diverseselection of products.
The Pittsburgh Post Gazette reports that, according toGiant Eagle’s spokesperson Dick Roberts, “Folks are lookingfor bold, exotic flavors and ethnic variety.”
Additionally, Bellevue, WA-based The Hartman Groupnotes, “Consumers are moving away from foods they perceiveas ‘industrialized’ or ‘highly processed’ toward higher qualityfoods that represent new taste and flavor experiences.”
If these statements are true, and I’ve seen plenty ofreports from sources such as Chicago, IL-based Technomic,Chicago, IL-based Mintel International Group Ltd. andTrendWire.com that agree, then why are selections in thedeli case being pared down to just a few dominant brands?
Having attended the International Dairy-Deli-BakeryAssociation (IDDBA) Convention in New Orleans, LA,and the Summer Fancy Food Show in New York City, I canassure you, it’s not for lack of availability. At each of theseevents, there were lots of producers, both domestic andinternational, offering numerous choices for meats, cheeses,pâtés, salads, condiments and related deli products. With somany options, I struggle to understand why deli directorsare allowing the larger, more powerful brands such as BoarsHead, Dietz & Watson, Oscar Mayer (Kraft Foods), Hill-shire Farms (Sara Lee) and Perdue to take over theirdepartments, virtually eliminating choice and ignoring con-sumer preferences.
Sure, issues relating to store location, buyer demograph-ics (including household income, family size, etc.) all play a
role, but this trend of monopolistic deli brands is happeningall over. In fact, on a recent visit to see stores in the mid-Atlantic, such as Giant, Shoppers, Safeway, Ukrops, PigglyWiggly and Fresh Market, there was little in the way of dis-tinctive product offerings from one store to the next.
I get the impression thatdeli directors either prefer todo business with as few sup-pliers as possible—regardlessof what this means in termsof product variety or quali-ty—or are unwilling toembrace change in anymeaningful way, or both.
Come on guys. If Weg-mans and Whole FoodsMarket, touted as industryleaders, can manage a variedinventory that representschoice in terms of price,product description and qual-ity, why can’t you?
When asked about housebrands such as Primo Taglio
(Safeway) or Boar’s Head (Giant’s de facto “house” brand),Jeffrey Saval, president of Baltimore, MD-based DeliBrands of America, says, “Quality is on the rise. To competein this day and age, you have to have quality.” While I agreewholeheartedly, I also believe retailers need to offer productchoice in terms of brand diversity as well.
I understand supermarkets have realized better marginsfrom house-branded products for quite some time. I alsorecognize that making larger purchases from a single supplieris easier to manage and yields volume discounts.
This is fine when talking about commodities such ascanned vegetables and granulated sugar. In the deli case,however, why operate to the contrary when there is anenormous variety of ethnic and regional products tochoose from and a significant volume of data indicatingthat new food experiences play a big role in consumer pur-chases? It’s not as if supermarkets are all thriving andreporting record growth.
If supermarkets weren’t struggling for survival, if thereweren’t so much competition and if there were more obvi-ous distinctions between grocery brands and in-store expe-riences, I wouldn’t be raising these issues. My concern isthat everyone is making the same offers. In the deli depart-ment, the similarities are stunning.
So, the next time you attend a Fancy Food or IDDBAshow, pay attention to what’s being offered and dare to bedifferent. At the very least, dare to offer something differentfrom your closest rivals. Give your customers somethingspecial—and a stronger reason to make return visits andrepeat purchases. DB
The Consumer Is AlwaysRight ... Or Always There?
M A R K E T I N G P E R S P E C T I V E
I struggle to understand why deli
directors are allowing the larger,
more powerful brands ... to take
over their departments, virtually
eliminating choice and ignoring
consumer preferences.
ByJeffrey SpearPresident
Studio Spear LLCBaltimore, MD
DEC./JAN. 2009 DELI BUSINESS 57
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our generations of American consumers have enjoyed the fine meatsproduced and sold by Detroit, MI-based Grobbel’s since German immi-grant Emil Grobbel founded the company in the city’s old CadillacSquare Market in 1883.
His business and family grew steadily over the next four decades, with his threesons joining the Grobbel team. Grobbel’s relocated to the newly formed EasternMarket District in 1925, where the firm began crafting its signature corned beef.
Today, Grobbel’s is run by fourth-generation Jason Grobbel and the company’s pre-mium meat offerings for the supermarket deli, which include roast beef, pastrami,corned beef brisket, flat round and eye round, have grown substantially.
Throughout four generations of Grobbels, the philosophy and old-world values ofthe company’s founder have remained constant: to offer world-class value by startingwith the finest raw materials, hand trimming the meats to exacting specifications and usingonly the purest natural ingredients and spices.
As a result, Emil Grobbel’s original passion for his craft is still enabling Americans from coastto coast to savor the exquisite flavor of Grobbel’s famous corned beef and other fine meats.
Blast From The Past is a regular feature of DELI BUSINESS. We welcome submissions of your old photos, labels or advertisements along with a brief description of the photo. Please send material to: Editor, DELI BUSINESS, P.O. Box 810217, Boca Raton, FL 33481-0217
or e-mail [email protected]. For more information contact us at (561)994-1118
FBlast From The Past: Grobbel’s
I N F O R M AT I O N S H O W C A S EReceive supplier information fast using the Deli Business Information Showcase
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COMPANY PAGE# CATEGORY PHONE FAX
58 DELI BUSINESS DEC./JAN. 2009
Lucini Italia ......................................21..............Italian Food ..........................888-558-2464..............305-858-5444
Magic Seasoning ..............................46..............Seasoning Blends ..................504-731-3519..............504-731-3576
Marcel et Henri ................................18..............Pates ....................................800-542-6436..............650-871-5948
Miatech, Inc. ....................................53..............Deli Service Cases ................800-339-5234..............503-659-2204
Norseland, Inc. ................................32..............Jarlsberg Cheese ..................203-324-5620..............203-325-3189
Nuovo Pasta Productions, Ltd. ..........23..............Pasta ....................................800-803-0033..............203-380-4091
Organic Farm Marketing/
Grass Point Farms ........................39..............Cheese..................................888-299-8533..............715-669-7583
Parmigiano-Reggiano &
Prosciutto di Parma ......................27..............Italian Food
Piller Sausages & Delicatessens Ltd. ..17..............Deli Meats ............................800-265-2628..............519-743-7111
Placon ..............................................37..............Packaging ............................800-541-1535..............608-271-3162
Principe Food USA, Inc. ....................25..............Prosciutto..............................310-680-5500..............559-272-6183
Redondo Iglesias USA........................49..............Serrano Ham ........................718-729-2763..............718-937-3250
Refrigerated Foods Association ..........16..............Association............................770-452-0660..............770-455-3879
Rogue Creamery ..............................53..............Cheese..................................866-396-4704..............541-665-1133
Rose City Delicacies ..........................46..............Mustards ..............................503-246-0004..............503-246-0005
Sandridge Food Corporation ..............33..............Soups....................................800-627-0595..............330-722-3998
Sartori Food Corporation ..................44..............Cheese..................................800-558-5888..............920-892-2732
Savello USA, Inc./Recla ....................28..............Italian Meat ..........................570-822-9743..............570-822-6622
Tillamook County Creamery Association13 ..........Cheese..................................800-899-1931..............503-842-4481
Valley Lahvosh Baking Co. ................54..............Bakery ................................800-480-2704..............209-485-0173
Widmer’s Cheese Cellar ....................53..............Cheese..................................888-878-1107..............920-488-2130
Arneg USA, Inc. ................................22..............Olive Bars ............................610-965-5375..............610-746-9580
Atlanta Foods International ..............19..............Cheese..................................404-688-1315..............404-223-6637
BE Green Packaging LLC ..................15..............Green Packaging ..................805-456-6088
Beemster ............................................5..............Dutch Cheese ........................914-374-6891
BelGioioso Cheese, Inc. ....................11..............Cheese..................................877-863-2123..............920-863-8791
Bunge Oils ........................................45..............Oil ........................................800-828-0800..............314-292-4797
Carr Valley Cheese Company, Inc. ......54..............Cheese..................................800-462-7258..............608-986-2906
Ciao Ltd. ..........................................26..............Fontina Cheese......................315-475-0475..............315-475-0557
Comte Cheese Association..................55..............Cheese..................................212-216-9671..............212-689-0989
Conroy Foods......................................2..............Condiments ..........................800-317-8316..............412-781-1409
Costanzo’s Bakery, Inc. ....................46..............Breads ..................................716-656-9093..............716-656-9218
Creta Farm ........................................7..............Deli Meats ............................866-942-7382
DCI Cheese Company ........................51..............Hummus ..............................877-246-5397..............920-387-2194
DCI Cheese Company ..........................7..............Cheese Spreads, Hummus......925-673-9721..............925-673-0268
George E. DeLallo Co. ......................60..............Olives & Antipasto ................800-433-9100..............724-523-0981
Don Miguel ......................................59..............Mexican Food ......................877-364-4835
Fiscalini Cheese Co. ..........................55..............Cheese..................................800-610-FARM ............209-545-5008
Flair Flexible Packaging Corp ............38..............Packaging ............................920-574-3121..............920-574-3122
G & G Specialty Foods, Inc. ................7..............Cheese Spreads, Hummus......925-673-9721..............925-673-0268
Gallo Brokerage/Leoncini ................24..............Italian Meat ..........................570-822-9743..............570-822-6622
Grana Padano ..................................29..............Grana Padano Cheese
Hissho Sushi ....................................41..............Sushi ....................................704-926-2205..............704-926-2201
Innovasian Cuisine Enterprises, LLC....43..............Asian Foods ..........................405-251-3706..............206-243-0363
COMPANY PAGE# CATEGORY PHONE FAX
