Pricier Pasta

JULIE GALLAGHER

Although pasta had the most dramatic food price inflation of all categories, its unit sales are up as the easy-to-prepare staple gains inclusion in many at-home chefs' repertoire. But shoppers aren't blindly slurping oodles of noodles, retailers told SN.

With an eye on price — that climbed 21% from 2007 to 2008 — many are forgoing healthy innovations like whole grain and multigrain pastas, opting instead for value-priced conventional varieties and corporate brands.

Dollar sales of pasta climbed 21.6% in the food channel during the 52 weeks ending March 22, while volume sales were up 2.6%, according to Information Resources Inc., Chicago. Private-label pasta was the second best seller, behind conventional varieties of Barilla, whose volume sales rose 10% during that time period. Meanwhile, unit sales of healthy leaders Barilla Plus multigrain pasta and Ronzoni Healthy Harvest — which touts whole grains, omega-3s and three times the fiber of conventional pasta — dropped 9.5% and 16.1%, respectively.

The wedge that's been driven between commodity varieties and healthier alternatives won't soon disappear, observers note.

“Foods like pasta, which are processed, not only have larger price increases but longer-lasting price increases,” Sue Viamari, editor of IRI's “Times & Trends” report, told SN.

Store brands are thriving as a result. Last year, private-label pasta held an impressive 30.3% of unit share, thanks to a shift in purchasing behavior.

“It's not really a big deal to trade down to private label in a commodity-type category like pasta,” Viamari said.

Retailers are also taking the edge off national-brand prices by reducing profit margins and buying in bulk.

Such is the case at Jungle Jim's International Market, where the increase in price on healthy noodles has been more dramatic than that on traditional types, according to Paul Fischesser, pasta buyer for the Fairfield, Ohio-based retailer. Shoppers are stocking up on conventional varieties of discounted pasta at the 300,000-square-foot store, he said. Last week it featured $1.29 boxes of spaghetti from Barilla (40-cent savings), San Giorgio (10-cent savings) and Creamette (40-cent savings).

To pass these savings on to shoppers, the retailer purchased additional cases from its wholesaler, Supervalu.

“It gives us allowances like $5 off per case, so we'll mark our price down to drive up volume,” Fischesser said.

Jungle Jim's, which doesn't offer store-brand pasta, is also accommodating price increases by taking a hit on profits. It's reduced its profit margins to maintain line pricing on gourmet varieties of DeCecco, Gia Russa, DaVinci and Racconto pasta.

“Some cuts are a little more expensive than others so we make less profit on them to maintain the price,” Fischesser said.

PRICE VS. HEALTH

Buying habits at Jungle Jim's mesh with what's going on nationwide, as some consumers are forced to put savings ahead of health needs, noted Viamari.“Americans are carefully allocating their dollars, so perhaps they're finding it's better to get the [conventional] pasta, and add more veggies to their meal,” she said.

Shoppers at six-store Highland Park Market, Manchester, Conn., are also sticking with value-priced pasta, grocery manager Tim Cummiskey told SN.

Although some consumers are giving healthy varieties a try, specials like the recently offered 10 boxes of all varieties of Barilla pasta for $10 are hard to pass up.

“It's a cheap way to do dinner,” Cummiskey said.

Healthier whole grain varieties are lagging there, not because of price, but due to a lack of education about health benefits, as well as taste perception, noted Cummiskey. It's safe to assume that healthier offerings won't be getting a glowing recommendation from Cummiskey any time soon.

“I'm not a big fan of them because of the texture, but my wife likes it,” he said.

Although nutritious pasta offers a relatively inexpensive and easy way to reap health benefits, negative taste perception is a common impediment to trial, noted Carrie Taylor, dietitian at Big Y Foods, Springfield, Mass. Up until a few years ago, she held a similar view of whole grain and whole wheat pasta, but says that with the introduction of top-selling healthy varieties Barilla Plus and Ronzoni Healthy Harvest, the mouthfeel of pasta has drastically improved.

“Before, I didn't like them since they tasted like cardboard,” she said. “I felt I was force-feeding myself.”

Today, nutritious pasta — like Topco's Full Circle 100% Whole Wheat — is the only kind that Taylor features in her Living Well Eating Smart program that comprises nutritious recipes, health-themed endcaps and a newsletter that publishes six times annually. She highlights whole wheat pastas that boast additional fiber, pasta blends that incorporate legumes for added protein, and pasta that is fortified with calcium.

“Now [healthy pasta] is a no-brainer since it doesn't feel like you're forcing yourself,” she said.

Consumers that heed Taylor's advice stand to benefit from a number of health benefits. Whole grains have been linked to weight loss, reduced risk of heart disease, diabetes and some cancers, according to Mintel's “Pasta and Pasta-Based Meals” report. Many pastas also have omega-3 fatty acid, which has been shown to protect against heart disease and may also help cognitive development in kids and adults with Alzheimer's.

Shelf-edge educational materials are also giving cash-strapped shoppers a push in healthy pastas' direction. Quincy, Mass.-based Stop & Shop and its sister banner Giant of Landover, Md., recently launched a shelf tag system called Healthy Ideas. The program identifies items that meet strict criteria for nutritional value.

HIGHLIGHTING HEALTH

Since Healthy Ideas' inception, volume growth of pasta earning a Healthy Ideas tag has spiked. In fact, it's outpaced the double-digit unit growth experienced by the overall pasta category, according to Faith Weiner, senior director of public affairs for Stop & Shop. Healthy Ideas varieties at Stop & Shop hold about 15% of pasta volume share, she said.

Meanwhile, pasta tastes at Grande Foods, Cornelius, Ore., which serves an 80% Hispanic customer base, are much more simple, noted owner Tom Evans.

“They're just buying the basics,” he said.

At Grande Foods that equates to two brands of conventional pasta imported from Mexico.

The trend is noteworthy since Mintel found that Hispanic pasta consumers are more likely to be drawn to healthier pasta. Its poll revealed that members of the demographic are more likely to say they “ever buy” multigrain (56% vs. 46% of non-Hispanics), all natural (54% vs. 38%), organic (42% vs. 27%), low-carb (35% vs. 25%), and gluten-free (23% vs. 15%) pasta.

Still, Grande Foods' shoppers are bypassing both whole grain and conventional varieties of domestic American Beauty and Western Family store brand for the Mexican varieties. Dramatic price increases fueled by inflation and the weak dollar haven't been enough to stop them.

“The price has skyrocketed, but they're buying a tremendous amount of it,” said Evans.

Shoppers at PCC Natural Markets, Seattle, are also doing something new. They're passing up conventional pastas for package-free alternatives, said Stephanie Steiner, grocery manager.

During the first quarter of 2009, volume sales of bulk pasta were up 7.5%, while unit sales of packaged pasta fell by the same amount, when compared with Q1 last year.

Many may be drawn to the wheat-free pasta alternatives like rice, spelt, corn, quinoa and even tofu pasta offered in bulk.

“Offering different pastas in bulk and in packaged gives consumers a selection from which they can choose minimal packaging, control over portion size, dietary needs or convenience,” Steiner said.