A CURE FOR PICKLES

RICHARD TURCSIK

Retailers are no longer over a barrel in the pickle aisle. New product offerings from major manufacturers and larger jars, along with frequent advertising and trade allowances, are helping to reverse a long-term sales drop and breathe new life into the category. As a result, retailers are no longer thinking of jerkin' their gherkins off the shelves.

"Everybody buys pickles because there is a lot of variety. Children love them and our pickle sales are even up a little bit," said Emily G. Holdstein, senior vice president of Wonder Market Cos., Worcester, Mass.

"This is a great region for selling pickles. We sell a lot of pickles," said Jimmy Jones, a buyer with Ingles Markets, Black Mountain, N.C.

According to Information Resources Inc., Chicago, pickles had supermarket sales of $523.6 million for the 52 weeks ended Jan. 1, an increase of 5.9% over the previous year.

Volume figures provided by Nielsen North America, Schaumburg, Ill., show that for the year ended Dec. 12, 1994, 240.2 million jars of dill pickles were sold in supermarkets, an increase of 1.6%, while 107.6 million units on a 16-ounce basis of sweet pickles were sold, which is about even with the previous year.

"We find that there is seasonality to the category, starting around Easter through July Fourth, and then again in late November through Jan. 31. We find that pickles appeal mostly to the adult population. Targeting the younger consumer is an area that is needed to stimulate growth," said Mike Shultz, senior vice president of Hughes Family Markets, Irwindale, Calif.

Richard Hentschel, executive vice president of Pickle Packers International, a St. Charles, Ill.-based trade group representing pickle manufacturers, said the uptick in sales is a result of pickles being sliced in different ways, more new pickled pepper products and more elaborate labels from manufacturers.

To spur sales further, and allay the concerns of Hughes Markets and other retailers, Hentschel said Pickle Packers International is providing a "Marketing Dill-emma" to grade schools as a way to boost sales by targeting younger consumers. The kits teach children that pickles are a healthier snack than something like potato chips.

"We run through the whole cycle of marketing, economics, import/export, how pickles are made, etc. This classroom kit also has different activities, including a shopping trip to the store with mom or dad. We also offer an idea of a pickle eating contest, growing pickles, etc.," he said.

Woody Rosenbach, senior marketing manager of pickles at the Vlasic division of Campbell Soup Co., Camden, N.J., said that while pickles sell well year-round, sales tend to get a boost around specific holidays.

"The No. 1 week for pickle sales is Memorial Day week, followed by July Fourth week, Easter, the Thanksgiving/Christmas/New Year's timeframe, and then Labor Day," he said.

Rosenbach said new items, such as Vlasic Sandwich Stackers -- pickles thinly sliced lengthwise to easily fit on a sandwich -- have helped to reverse what had been a declining category.

"Sandwich Stackers are getting people to use the product where they haven't before, which is inside sandwiches," he said.

Many retailers cited Sandwich Stackers, available in bread and butter, kosher, Polish and zesty dill varieties, and backed with a major advertising campaign, as being largely responsible for the renewed interested in pickles.

"The Vlasic Sandwich Stackers have made a major contribution to the category. That is about the most exciting thing we've seen. But they've had a production problem and that has kept their volume at a little less this year than what it might have been," said the condiment buyer for a leading Midwestern chain, who did not wish to be identified.

A buyer for a leading wholesaler in the Houston area, who also did not wish to be identified, noted that "Vlasic Sandwich Stackers have done well, and they've just come out with Snack'mms in a 16-ounce size, which we also have high hopes for."

Snack'mms are miniature pickles designed as snacks that are being test marketed in Houston, Cleveland and Pittsburgh. They're available in kosher dill, zesty dill and zesty bread and butter varieties.

Based on the success of Sandwich Stackers, other manufacturers are planning on introducing similar products for this summer. (See related story.)

Retailers listed gallon-size jars of pickles as another area of the category's growth.

"The big change in our market is toward gallon-size pickles. We have gallons in Mt. Olive and Rainbow and we're selling the hell out of them. The manufacturers have gotten the price down to where you can do that," said Bill Adcox, head grocery buyer at Autrey Greer & Sons, a 39-unit chain based in Prichard, Ala.

"Those gallons are an excellent merchandising opportunity. I didn't think people would buy them; I thought they were for the restaurant business. If you're selling pickles, stack these gallons out on the endcap for $3.99 and see what happens," he said, noting that kosher, dill and hot pickles sell the best, while hamburger chips don't do that well.

The buyer for the Houston wholesaler is also having success with gallon jars of Dell Dixie brand pickles.

"The gallon jars sell well at this time of year. It is extraordinary what Dell Dixie does on their gallon jars. It sells all year long, but it definitely peaks in the spring and summer. They sell well as the picnicking, Little Leagues and other outdoor activities pick up," he said.

While large sizes might sell best during the summer, retailers said all size jars of pickles sell well if they are heavily merchandised.

"We're coming into big-time pickle season right now," said Mark Polsky, senior vice president at Magruder, Rockville, Md. "The summer holidays are big for dills. Thanksgiving and Christmas are big times for the sweet gherkins, mixed pickles, slices, bread and butter pickles."

"During the summertime we have a pickle of some type in our ad every week, whether it be private label or branded. We have had a lot of buy-one-get-one-free coupons on pickles, and that seems to be a real trend," said the buyer for the Midwestern chain.

"We promote the heck out of pickles for Labor Day and other holidays," said Pat Redmond, grocery merchandiser at Rosauers Supermarkets, Spokane, Wash. "We find pickles to be somewhat of a seasonal item that sells well around holidays. But people are confused. At the holidays you can buy a 42-ounce jar for 99 cents and the rest of the year they are $2.85."

"We find that the manufacturers tend to run deals on pickles during holiday times and the deals on pickles seem to be getting deeper," said Shultz of Hughes.

Holdstein of Wonder Markets said her chain also advertises pickles regularly.

"Having a price of under $2 a jar is important. But we find that doing a buy-one-get-one or buy-one-get-two moves a lot of cases," Holdstein added.

Adcox of Autrey Greer said his chain has been getting some really good deals from manufacturers of late.

"It seems like they have a lot of pickles left on hand this season, and all of a sudden we can buy them for half-price. They're picking cucumbers this month, so that tells me that they have some inventory left over," he said.

Many retailers said merchandising pickles in themed displays is another good way to boost sales.

"We find that the best way to merchandise pickles is to display them with other holiday items, and every so often we will put pickles on display. When we receive an allowance from the manufacturer we reflect it to the consumer," said Shultz of Hughes Markets.

Wonder Markets' Holdstein said pickles are very versatile in

merchandising.

"We can cross-merchandise them with deli, sandwich meats or in the meat department. I never really even thought about how wonderful pickles are. You can use them in the meat department, deli department, grocery department, just about anywhere.

"We find they are best merchandised as end displays tied in with olives, ketchup, mustard and related products. They also make very good in-aisle displays tied in with chips and condiments, and other related items. That would entail stacking the cases up in the aisle," she said.

"Occasionally, some of our stores will merchandise pickles with related items like ketchup, mustard and paper plates, but as a rule we don't make our stores do that. It is up to the discretion of our store manager," said Jones of Ingles Markets.

Redmond of Rosauers said his chain has had success by stocking a wider array of pickles than his competitors. Rosauers stocks Vlasic, Nalley's, Farmanns and Steinfeld's, in addition to its Western Family private-label brand.

"We have by far the largest pickle section in our marketing area. We are more of an upscale store and we have an older clientele than Safeway and Albertson's. Those stores have cut their sections in half and only have about 8 feet. By comparison, our departments run from 12 to 16 feet," he said.

Like many retailers, Rosauers also builds holiday displays of pickles with relish, hot dog and hamburger buns, barbecue sauce, mayonnaise and other related products.

Shultz of Hughes Markets noted that the make-up of his pickle section has changed only slightly.

"Pickles haven't gained any new stockkeeping units, but we have replaced some of the 46-ounce sizes to expand on the variety of other brands," he said.

"We really don't readjust our sets for seasonality, but if there is going to be a coupon drop or a hot feature on something we'll put a little aisle stack up at this time of year, and just let that take care of it," said Magruder's Polsky.

Retailers were split on what sort of effect private label has had on the category.

"We find that private label hasn't had a real heavy impact in this category, especially with name brands running deeper deals during the major holiday periods. The name brands reflect a very low retail to the consumer," said Hughes Markets' Shultz.

But Jones of Ingles Markets said his chain's private-label Laura Lynn brand is selling "real well." One area of concern for grocery buyers has been the inroads made by refrigerated pickles.

"There are half-a-dozen to eight different manufacturers of refrigerated pickles, and that has hurt the shelf-stable pickle sales," said Polsky of Magruder. Partly because of inroads made by refrigerated pickles, Magruder's has reduced its pickle sections to about 4 feet, and broken off olives into a separate 4-foot section because their sales now rival those of pickles.