Good buy, Columbus

A widening array of pasta and pasta sauces are expanding consumer palates beyond “basic Italian.” Faced with skyrocketing protein costs, consumers are embarking on new culinary adventures to seek out nutritious, delicious meals that stretch their paychecks in the process. An increasing number are discovering that pasta and pasta sauce fits that bill, with new products appealing to the changing and more adventurous taste buds garnering the most excitement. “We are seeing people gravitate towards interesting ingredient combinations and know that Italian sauce consumers are looking for varieties that are fun and exciting,” says Dale Clemiss, vice president, simple meals, at Campbell Soup Co., the Camden, N.J.-based manufacturer of the Prego line. “Consumers are looking for convenience along with recipe solutions that will satisfy the entire household with great-tasting, wholesome, hearty meals that everyone enjoys,” Clemiss says. “We’ve started to work collaboratively with key customers to develop meal solutions to address these specific consumer needs in-store as we know consumers are looking for more ways to use Italian sauce at meal-time.” According to IRI, a Chicago-based market research firm, pasta sauce is a huge category with sales reaching $2.2 billion for the 52 weeks ended July 31, a 0.9% gain. Unit sales inched up 0.4% to 1.1 billion jars. During the same period, pasta sales (excluding noodles) were $1.9 billion, a decline of 1%. Unit sales declined 0.7% to 1.5 billion packages. Some of the flat sales can be attributed to consumers seeking out gluten-free diets, as well as the misguided notion that pasta is an unhealthy, fattening food, say industry observers. “Pasta does not make you fat,” says Jim Montgomery, category development manager, at Barilla America, based in Bannockburn, Ill. “Al dente pasta keeps you feeling fuller, longer. It is the cornerstone of one of the world’s healthiest diets—the Mediterranean. It is a sustainable food source—good for you and good for the planet. And finally, let’s face it, everyone loves pasta.” According to Montgomery, the industry is still feeling the fallout of the once popular Atkins diet. “The Atkins diet made ‘carbs’ into a four-letter word. However, carbs are necessary in a balanced diet, and pasta, specifically, is quite healthy,” he says. In an effort to stimulate sales, Barilla has introduced its Collezione line, consisting of Bucatini, Spaghetti alla Chitarra, Casarecce, Orecchiette and Gnoccheti, with each shape inspired by a different region in Italy. “Variety in cuts is vital to driving additional sales,” Montgomery says. “Nielsen studies have shown that customers purchasing just the basic two or three cuts, like spaghetti and elbows, purchase about one-quarter the amount annually compared to consumers purchasing more than five cuts. Collezione also moves the consumer up the ‘price’ pyramid which helps the retailer increase the overall dollar ring and profits.” To increase the healthiness of pasta, Montgomery says that Barilla also markets whole grain, multi-grain, white fiber pasta with extra fiber, Veggie Pasta made with 25% pureed vegetables and a gluten-free pasta. ConAgra Foods, through its American Italian Pasta Co. division, offers a full range of gluten-free pasta products under the Mueller’s and Heartland brands, as well as private label. “The gluten-free pasta market has grown at more than 40% per year for the last three years, and we expect to see continued growth,” says Greg Pearson, brand director, at ConAgra Foods, based in Omaha, Neb. For Hodgson Mill, whole wheat pasta was part of its product line even before it became a trend. “Our newest item is Ultra Grain Whole Wheat Pasta with Quinoa. This pasta has the taste, texture and color of traditional pasta with whole grain nutrition plus the nutrition of quinoa. We offer four cuts and are really excited about it as families have a hard time getting their children to get past the color of whole wheat.” says Brian Prechtl, vice president, sales and marketing at Hodgson Mill, based in Effingham, Ill. ConAgra is making cooking pasta easier with its new Pot Sized Pasta collection, available in spaghetti, thin spaghetti, angel hair, linguine and 100% whole grain spaghetti and thin spaghetti. “Our research told us that 74% of consumers break their pasta, which can cause a mess on the stovetop,” Pearson says. “We solved the problem, and consumers seem to really be responding. It has been our most successful launch in recent history.” ConAgra manufactures several leading regional brands in addition to Mueller’s and Heartland, including Ronco, Anthony’s, Golden Grain, Pennsylvania Dutch and Luxury. “In many of our markets where our regional brands are sold, they are the number one brand in the category,” Pearson says. “In the Southeast, you couldn’t have a pasta category without Mueller’s, as consumers would probably revolt. More so than many categories, carrying the right assortment of regional brands is critical to success.” So retailers need to allot the proper amount of shelf space, Pearson says. “In a market like New Orleans, where Luxury is the number-one share brand in the category, it needs the most space,” he says. They also need to be heavily promoted. “Regional pasta brands have great lifts when displayed at the end of the aisles, or when featured in the circular,” Pearson says. “It is a good idea to display a meal solution—pasta and sauce together. At ConAgra we have seen significantly higher lifts when we have displayed our Hunt’s Pasta Sauce with our regional pasta brands.” Bronze dyes Stephen Drezga, specialty food buyer, for Epicure Foods, an Elizabeth, N.J.-based importer, refers to the large imported brands as “industrial” pastas because they are mass-produced using automated machines and Teflon dyes. However, he says the Maestri Pastai Selection, imported by Epicure Foods, is handcrafted near Naples, Italy and is an “al bronzo” pasta, cut with bronze dyes, and slow-baked at low temperatures, resulting in a lighter color, more flavorful “al dente” pasta with an ideal “chew.” “Because there is no friction with Teflon dyes there is less waste, but the disadvantage is that the product is as smooth as a piece of glass, and when you put sauce on that type of spaghetti it just falls off,” Drezga says. Available stateside in 42 different cuts, Maestri Pastai is packaged in 17.6-ounce bags with a suggested retail of $5.99. Because that higher price tag might put off some shoppers, Drezga says retailers need to educate their shoppers about what sets the high-end pastas apart from 99-cent on-feature boxes. “The store should put up laminated copies of articles from people that they trust,” he says. “Something like that will cause the consumer to stop and say ‘my goodness.’” Shoppers are also saying “my goodness” when they see all the new sauces hitting the market. DelGrosso Foods, for one, has just rolled out Joe Joe’s Sloppy Joe Sauce. “It is named after my cousin Joe Joe,” says Michael DelGrosso, vice president, global sales and marketing, at DelGrosso Foods, based in Tipton, Pa. “He’s just got a crazy appetite and likes big hearty sandwiches. Our Joe Joe’s sauce has smoked paprika, chipotle, cinnamon, brown sugar, Worcestershire sauce and Dijon mustard, giving it lots of levels of complexity.” DelGrosso has also introduced Aunt Linda’s Classic Alfredo Sauce. “Our Alfredo sauce is made with cream, Romano cheese and just a nice blend of spices. We really think it is the best Alfredo sauce in a jar,” DelGrosso says. Prego is also heating up the Alfredo segment by adding three Alfredo varieties—Roasted Garlic Parmesan, Light Homestyle and Basil Pesto, along with Creamy Cheddar and three additional “distinctive” red sauces: Florentine Spinach & Cheese, Merlot Marinara and Creamy Sun Dried Tomato to its stable. “Prego continues to drive innovation with the expansion of our Alfredo and distinctive offerings that are bringing new consumers to the category,” Clemiss says. Retailers can increase their pasta sauce sales by cleaning up their shelves with better “brand blocking,” say officials with the Ragu brand. “We encourage consumer usage by focusing on meal solutions,” says Mike Smith, executive vice president, sales and marketing for Mizkan Americas, based in Mt. Prospect, Ill. “Ragu recently launched a fresh, new look that features updated label graphics and easy-to-follow recipes with step-by-step visuals on back-of-pack.” Such packaging, Smith says, encourages consumers to shop other store departments, increasing basket size in the process. Ragu recently introduced two new varieties: Meat Creations Grilled Steak Sauce features the flavor of grilled steak, and Meat Creations Sautéed Onion and Beef Sauce with a variety of flavors. Both contain more than a full serving of vegetables per ½ cup serving. Officials at the Giovanni Food Co., manufacturer of the Greenview Kitchen brand, say that retailers need to look at organic products in this category as well. The Syracuse, N.Y.-based company is pushing its five organic sauce SKUs: spicy tomato pasta sauce, roasted garlic pasta sauce, marinara pasta sauce, pizza sauce and bruschetta. The 25-ounce pasta sauce has a suggested retail price of $4.99 and is distributed by UNFI and KeHE. Tammy Panipinto, the company’s director of business development, says the products are unique for a few reasons. First, they have a slightly sweet flavor profile, which Panipinto says most consumers find more appealing than many of the organic sauces offered. Second, the product is certified organic, gluten-free and non-GMO project verified. Quart jars While big national brands continue to dominate the aisle, smaller brands that find niches can earn shelf space as well. Mid’s Pasta Sauce, for example, is one of the few holdouts still putting its product into a 32-ounce quart jar. “Years ago, Ragu and Prego were in 32-ounce jars and now they are down to 23- or 24-ounces,” says Scott Chovan, director of sales at Mid’s Pasta Sauces, based in Navarre, Ohio. “But we held onto the 32-ounce and it has served us well. A lot of accounts like the fact that we are a unique size and a unique price point. They are always willing to give us a shot, put it in the stores and let us promote it.” That tactic works well. “We are having another good year and are up about 15%,” Chovan says. “Some of that is because accounts we are already in are adding more of our items. We might start with four and then go up to seven because our sales are that good,” he says. New accounts include Giant Landover and Kroger’s Atlanta, Mid-South and Mid-Atlantic divisions. Mid’s uses fresh beef and sausage cooked on-site. “We put about 12-ounces in a jar, so our sauce is a very thick and hearty product,” Chovan says. “Today’s Mom doesn’t have time to make her own sauce, or even buy hamburger and brown it and add it to a jarred sauce. With Mid’s, you just open a jar and boom—you are ready. That has been a real plus for us.” Dave’s Gourmet also has a unique selling proposition. “We didn’t want to compete on our Italian heritage—because we don’t have an Italian heritage,” says Dave Hirschkop, founder and CEO of Dave’s Gourmet, based in San Francisco. Instead, Dave’s banked on its “California Fresh Mindset,” and created a line of unique highly flavored sauces, including Butternut Squash, Masala Marinara, Wild Mushroom and Organic Red Heirloom. Dave’s sauces pair well with many of the new types of pasta, says Hirschkop. “Especially with refrigerated pasta there is a lot of flexibility in being able to use different ingredients,” he adds. Jonathan Milo Leal, owner of Milo’s Whole World Gourmet, says having something unique in the market is a good thing, and small suppliers have to differentiate themselves in this way. The Athens, Ohio-based company markets the Vino de Milo line of wine-based pasta sauces, which was recently picked up by The Fresh Market. “They picked up one of our minor items, our Moroccan sauce, and that has never been picked up by a major chain before,” Leal says. “My chef lived in Morocco for 10 years so it is a very authentic Tajine, a daily meal in Morocco, with a base of sautéed onions and lots of cumin, with some tomatoes, and of course, some Pinot Noir.We call it Moroccan Marinara, even though it is more of a simmer sauce.”