PIE'S NEW RECIPE

ROSEANNE HARPER

No-sugar-added pies have a sweet future, provided certain steps are taken to merchandise this new niche category to advantage.

That is according to supermarket bakery executives contacted by SN in recent weeks as thoughts turned to fall, the big pie selling season.

The keys to success are first and foremost taste and quality. But then there must be displays big enough to attract attention, in-store signs and ads to launch the pies, retailers said. They also said demonstrations and sampling are crucial.

And more than one retailer has found that a smaller 6-inch pie sells better than a larger one.

Most have added the products just recently. Of those who had carried a no-sugar-added pie previously, some have changed to what they say is a tastier product. They're also adding varieties and are stepping up promotions.

"Now that there's a good product available, there's great potential for the category. We ran our first ad ever for no-sugar-added pies this summer, and we'll do it again in a couple of months," said Rick Piccinini, director of deli-bakery at 89-unit Save Mart Supermarkets, Modesto, Calif.

"We took on a better product six months ago, and it's moving much better than those we had previously. They're selling two to three times better than the former," he said.

Another retailer is getting ready to tout no-sugar-added pies for Thanksgiving and Christmas.

"Up until now we've never featured them, but I'd like to work them into our holiday ad schedule this year," said Ed DeYoung, director of bakery operations at D&W Food Centers, Grand Rapids, Mich.

The 25-unit chain has seen a sales surge that's sent its no-sugar-added pie sales up 50% over six months ago, DeYoung said. He attributes it to nutrition labeling and consumers' general health-consciousness.

There's no doubt the category is getting noticed as a result of improved products, the continuing consumer search for healthy treats and the new nutrition labels. There also has been an increase in advertising for the pies, retailers said.

Sales of no-sugar-added pies have increased 20% in the last year, said Ed Weller, a consultant at Weller Co., North Hollywood, Calif., which keeps an updated data base on product movement.

The pies make up 6% to 7% of all pie sales now, compared with 1% five years ago, Weller said.

All 10 of the retailers SN interviewed said they either carry no-sugar-added pies, will add them soon or would if a good product were presented to them. Some have seen sales climb noticeably in the last six months. Most retailers use a bake-off version of no-sugar-added pies, even though they may make other products from scratch or mixes.

Here's what retailers had to say about the new pies:

Rick Piccinini bakery-deli director Save Mart Supermarkets Modesto, Calif.

Six months ago we took on a different line, a better product than the one we'd had for a long time. It's a smaller pie also and we can offer it at lower price than the former. For the first time ever, we ran an ad this summer for no-sugar-added pies. We featured three varieties -- apple, peach and apricot -- at $3.98, but we also have three other varieties. They're 8-inch pies, and their everyday price is $4.49. We're trying to get our stores to display healthy-type items all together. You need to do that to attract people's attention. People will just walk on by if you don't have a display that's big enough. And you need a sign. Those labels are pretty small.

I think there's great potential with this category as long as the taste is there.

Joe Colaianni bakery-deli buyer, merchandiser Harris Teeter Charlotte, N.C.

We took them on basically because customers are asking for them. We've had them for six weeks and we're doing a good job with them. It's a 9-inch pie. I think we could do even better with a smaller size. It's a contradiction in terms to buy a large version of a product like this.

We're using signage, at least 12 by 18 inches, to call attention to them. It says, "No sugar added. Half the fat. All the taste." The no-sugar pies we're carrying also have only 50% of the fat normally in a pie crust. We have them displayed on a table by themselves in front of the bakery service counter. And demos and sampling are ongoing. We have just two flavors -- apple and peach. They're the most popular.

Ed DeYoung director, bakery operations D&W Food Centers Grand Rapids, Mich.

More and more customers are asking for no-sugar-added pies. When we first took them on over a year ago, they just sat there. But just in the last six months they started to move. I think the nutrition labeling has done it. That and just generally more consumer awareness. We have apple, cherry and blueberry now, but intend to add more varieties.

I'm going to feature them in an ad, with photos, in mid-October to get people thinking about them for the holidays. I'd include a cents-off coupon because I think coupons attract more attention.

I think consumers are ready for this product. The taste is there. We did a cutting with our managers recently and they couldn't tell the difference from a pie with sugar. I'm trying to figure out how we can offer half a pie or even wedges and still have them look appealing. It's a product that we need to offer in single servings as well as a whole pie. These are 8-inch pies.

We integrate them with our regular pies and use preprinted display cards, but I'd like to use signage, even in other departments, to call attention to the fact that we have them.

I see good growth potential for the category for two major reasons: restaurants here are adding no-sugar-added desserts and calling attention to them with table tents; and retailers are feeling better about the category, so there will be more promoting of it.

The Nutrition Labeling and Education Act has affected our regular pie business negatively, but I expect that to be temporary. I'd say sales are down 5%, but with the no-sugar-added sales, it's probably a trade-off.

Tim Kean deli, bakery, seafood merchandiser Pay Less Supermarkets Anderson, Ind.

Just three weeks ago, we put them in because we've had a significant number of requests, both verbal and in writing. People don't ask for that product itself, but instead say they're on a restricted diet and ask what we've got that they can eat. It's up to us to provide something.

Our problem now is deciding what to call the whole group of products. We have to be careful about claims, but I think it's absolutely key to promote items like these as a separate category. We have them at least 6 feet away from our regular baked goods, and in some stores, even another aisle away.

We bought a triangular merchandising rack that's perfect for the group. Right now we have small shelf signs designating the no-sugar-added pies and other items there. When we figure out what to call the whole group, which also includes low-fat muffins and fat-free cookies, we'll feature them in an ad, and that will be soon. We need the whole group in order to generate enough volume.

We have just three varieties of 6-inch, no-sugar added pies. I'm more apt to add other health-oriented products rather than more varieties within the category. We took the small pie because I think we're addressing individual needs, rather than family needs.

Diana Ovenell bakery-deli merchandiser Thrifty Food Stores Burlington, Wash.

We took on a 6-inch, no-sugar-added pie recently because we know it'll sell better. A lot of older people are looking for sugar-free items. They want a small portion because they're often living alone. We used to have a larger one, which we've discontinued carrying.

We have just three varieties: apple, berry and cherry.

We don't put them in our ad because they don't have enough draw, but we do have in-store signs calling attention to them. I think their growth will continue, gradually. People are more health-conscious.

Alex Sakhel bakery director Tom Thumb Food & Drugs Dallas

In most of our stores, we're displaying three flavors on a flat table in front of the bakery counter, and a sign above the table, hanging from the ceiling, calls attention to a whole group of products we call our "Healthy Choice" items. But in our newest store we have those products on a separate rack and they're selling much better there. I'd say 25% to 30% better than in the other stores. It's because of the merchandising. On the rack there's a large sign with a heart on it. Red lettering indicates no-sugar-added, and blue lettering indicates low fat. We'll definitely merchandise them that way in all our new stores.

We have the fillings made to our specifications by someone else, but we bake the pies at store level, making our own crusts. When we dress a no-sugar-added pie, we cut a heart-shaped hole in the middle of the top crust to set them apart from regular pies.

I don't see great growth ahead for the category, but you need to have them for customers who want them.

John DiGeronimo bakery director Victory Supermarkets Leominster, Mass.

We haven't gotten into them yet, but we'll start in the fall with an 8-inch apple pie. Just the one flavor; it's the most popular. Then we'll see how it does. We'll start it off in an ad with a picture, and we'll probably demo them. People have been asking for them, and I think there's good potential for the category as long as we keep people coming back. I'd expect to put it in our ad quarterly.

Kathy Smith store manager Brodbeck's Markets St. Marys, Ohio

They're doing much better than we had expected. We just added them a couple of months ago: 8-inch pies in cherry, blueberry and apple. We have them displayed on a 4-foot table in front of the bakery.