JEWELS OF THE FAR EAST

MARYELLEN LO BOSCO

Consumer pursuit of new tastes combined with an increasing population of Asian-Americans is fueling the growth of Asian grocery sections in Center Store.

For example, Hughes Family Markets, Irwindale, Calif., has Asian sections ranging from 4 to 90 feet, with an average of about 16 feet, while Lamb's Wilsonville Thriftway, Wilsonville, Ore., has 16-foot sections.

Brookshire Grocery Co., Tyler, Texas, has 4- to 12-foot departments, depending on the size of the store, and a Food Emporium in Fort Lee, N.J., with strong Asian demographics devotes an entire aisle to Japanese and Korean groceries. Food Emporium is a division of A&P, Montvale, N.J.

Thanks, in part, to this greater selection of stockkeeping units, sales are on the rise. Distributor sales at Fleming Cos., Oklahoma City, have increased by more than 10%, said Craig Carlstrom, director of specialty foods, general merchandise distribution.

Still, sales are flat at retail, he observed, due to sluggish movement of the mainstream, national brands. Carlstrom also noted that sales of frozen foods are up 10% and are expected to grow even further.

"Rice sales are way up," said Carlstrom. "Cookies and snacks are up about 10%, and condiments, seasonings and oil and vinegar are all up significantly."

Spartan Stores, Grand Rapids, Mich., devotes about 8 feet to Asian foods, mostly Chinese and Japanese, in its retail units. It has seen 30% growth over last year, mostly due to sales of Ramen noodles, said Gary Evey, company spokesman.

At Spartan, mainstream products are popular with younger consumers, age 18 to 35, across ethnic backgrounds, he noted.

Deborah Romero, grocery buyer, Hughes Family Markets has seen a 15% increase in sales and movement in Asian grocery products in the last few years, with a 9% increase in the last year. She attributed this to the positive publicity about the health benefits of Asian cuisine.

"Many people outside the Asian community are now buying and preparing these products," she said. "We have tried to cater to the ethnic Japanese consumer, but in the last few years have expanded our selection to include a full spectrum of Chinese items, as well as Filipino and Mediterranean items."

Hughes attempts to keep up with the changing needs of the second- and third-generation consumer with more meal-solution-type items, while still carrying all the ingredients favored by the traditional Asian chef, Romero continued.

Jay Rosengarten, president of the Rosengarten Group, Rye, N.Y., noted that Asian-Americans are the second fastest growing ethnic group in America, after Hispanics. From 1990 to 1997, the Asian population increased by more than 20% nationally.

According to Susheela Uhl, president of Horizons, Mamaroneck, N.Y., both Asian and mainstream Americans are demanding authentic products, either for their familiarity, or for their stronger flavors. In addition, both assimilated Asian-Americans and non-Asians are experimenting with "fusion," which combines Asian and American cuisines.

Gourmet products, like marinades and sauces, are showing growth at Lamb's Wilsonville Thriftway, said Jim Olson, grocery manager. Thriftway's 16-foot section includes 4 feet of "authentic oriental," mostly Chinese, Thai and Japanese food. Olson is also considering bringing in some Indian products, which are becoming more popular in his area.

Dierbergs Markets, Chesterfield, Mo., just finished putting in a 12-foot section -- which includes Chinese, Japanese and Vietnamese items -- in a store with strong Asian demographics, according to Leo Darrow, grocery category manager.

"There are some Asian food stores going up in St. Louis, and we feel that some of that trade is available to us," he said.

Dierbergs set up the new section on Metro shelving, in-aisle with the other ethnic food, like Mexican, kosher and mainstream Chinese. Darrow expects to develop some signage that indicates the new items are "authentic Asian foods."

An up-and-coming Asian supermarket chain is the Los Angeles-based Yaohan. One of its units is strategically located in Edgewater, N.J. This store is about 10 years old and serves a significant Japanese-American demographic in New Jersey's Bergen County.

The chain also has units in San Diego; San Jose, San Gabriel and Torrance, Calif.; and Chicago and Arlington Heights, Ill. It also runs several sushi markets in the New York/New Jersey metropolitan area.

About 80% of products in Yaohan are imported Japanese items, explained Hiroshi Yamamoto, buyer. The remaining 20% are standard American fare, like yogurt, milk, eggs and chips.

Uwajimaya, another Asian supermarket independent, has stores in Seattle and Bellevue, Wash. As reported in SN, a third unit is expected to open in Beaverton, Ore., next year. Mitchell Uyeno, assistant store grocery manager at the Seattle store, noted that Uwajimaya stocks mostly Chinese and Japanese products, but also sells Taiwanese, Korean, Filipino, Thai, Vietnamese, and most recently, Indian items.

While the Seattle store serves a large Asian clientele, it also caters to Anglo and Hispanic shoppers and tourists. Grocery selections run the gamut, from sauces, rices, salad dressings, and seaweed, to canned fish, pickles, radishes, duck eggs and bean paste. Uyeno estimated that he stocks about 150 SKUs of seaweed alone. Most groceries are imported.

Romero of Hughes Family Market listed her most popular Asian items as water chestnuts, various types of noodles, wonton skins and egg roll wrappers, cooking sauces, tempura mixes, noodle soups and Ramen, soup bases, rice vinegars, and snack crackers and cookies.

Anderson said that sauces, noodles and frozen egg rolls are the most popular items at Brookshire. At Spartan, Ramen noodles, soy sauce and chop suey are front and center, along with frozen egg rolls and Yu Sing frozen entrees. At Lamb's, meanwhile, gourmet items are showing high performance.

Retailers vary when it comes to promoting Asian products, with some highlighting the category seldom or never, and others promoting it regularly, such as on a quarterly basis. Hughes is highly active, advertising Asian items in its mailer every week. Up to 15 items are promoted at once, in areas with a high percentage of Asian-American customers.

Uyeno noted that a recent trend in the Asian category is the modest but steady growth of the Indian subcategory.

Indian SKUs are increasing in frozen food, where vegetarian meals with Indian spice profiles are becoming popular, said Mike Ryan, president of ADS Management Group, Ringwood, N.J.