ALBERTSONS: SPECIALTY ITEMS TO SPUR KOSHER'S GROWTH

CAROL ANGRISANI

NEW YORK -- Growth in the kosher food business will come from specialty and gourmet -- not mainstream -- products, according to Yakov Yarmove, corporate kosher category manager, Albertsons, Boise, Idaho.

"We all know that the growth is not in traditional kosher," Yarmove said at the 2003 Kosherfest here.

While matzo, gefilte fish, borscht and the like will remain the core of the kosher segment, the business will expand through specialty and gourmet selections, such as frozen enchiladas, Asian sauces, daiquiri mixes and marinades.

"The future is items that shout to customers that kosher isn't boring," Yarmove said.

Kosher foods are a $7 billion industry. More than 75,000 packaged goods have kosher certification in the United States, according to producers of Kosherfest. A growing number of these are tapping into the specialty/gourmet trend. Among the 400 new products that made their debut at Kosherfest: Old City Cafe's frozen cheese enchiladas; Meal Mart's "Dinners for 2" Asian frozen entrees; BPK Traders' Spanish paella; and Mey's frozen lasagna.

Even celebrities are getting into the business. Jackie Mason was on hand at Kosherfest to introduce "Jackie Mason's Famous Broadway Cheesecake," a lactose-free dessert from Rhoda's Best. Other specialty selections showcased at Kosherfest included eggplant salsa, roasted peanut sesame dipping sauce and mango chipotle glaze.

Crossover potential is stronger than ever, as more non-Jewish consumers are showing interest in kosher foods, according to Yarmove.

"For the first time, non-Jewish customers are taking note of our kosher sections. And our [sales] numbers support that," he said.

Indeed, kosher foods appeal to a wide spectrum of consumers. Just 25% of the 10.5 million kosher consumers are Jewish, according to Menachem Lubinsky, an industry expert and co-producer of Kosherfest.

Research from Mintel International Group, Chicago, confirms this, revealing that kosher foods appeal to Muslims, vegetarians who want to ensure the products they buy are meat-free, people who are lactose-intolerant or who have other food sensitivities, and those who view kosher simply as being better than non-kosher foods.

"Kosher foods have resonance far beyond the Jewish community," Marcia Mogelonsky, senior market analyst, Mintel, said at Kosherfest.

According to a national Mintel survey of the general population, 28% of respondents said they buy kosher foods. Of these, 35% said they do so for the flavor or taste; 16% because of the guidelines under which foods are produced.

"People have made the kosher-certification symbol their monitor for food safety," said Mogelonsky. "Many people feel kosher is cleaner and produced under better circumstances."

Among other survey results: 48% said they buy kosher in designated kosher sections of mainstream supermarkets, while 42% said they buy it in multiple areas of the supermarket. Only 9% said they buy kosher in specialty stores; 8%, kosher-only supermarkets.

Who's Where

A look at where kosher-buying consumers are getting their shopping done

Kosher-only supermarkets 8%

Specialty stores 9%

Supermarket kosher sections 42%

Supermarket multiple areas/departments 48%

SOURCE: Mintel International Group