RICE EPICUREAN FATTENS SALES WITH NEW PIES

ROSEANNE HARPER

HOUSTON -- Rice Epicurean Markets here is ringing up bigger sales with the addition of both smaller and larger pies this year.

As the holiday pie-selling season got into full swing, the retailer rolled out two new sizes to all nine units of Rice Epicurean with good results, officials said.

The new sizes, available in most varieties, are 8 inches and 11 inches. Previously, Rice Epicurean Markets had offered primarily 9-inch size pies, with the exception of pumpkin pies, which were 10 inches, said Douglas Dick, vice president of food-service operations for Rice Epicurean Markets and 16 company stores under other banners.

Both new sizes were given a successful, 60-day sales trial in one store before the rollout, he said.

In-store baked pies have long been leaders at Rice Epicurean Markets, Dick said. They get big play in the retailer's catering brochure and are the feature of graphics-decorated, fold-out fliers listing all varieties with brief descriptions of their ingredients.

For instance, one description reads "Apple pie, made with fresh, firm Pippin apple slices cooked in a spicy cinnamon sauce and then allowed to cool and age to take on the delicate flavor of the spices."

"People drive for miles to buy our apple pie," Dick said.

During the days when the retailer offered 9-inch size pies only, it would not be unusual for Rice Epicurean's highest volume store to sell 200 pies in a day during a holiday week, Dick said. But he said he saw an opportunity to boost sales even more with added sizes.

"We wanted to give our customers as much choice as possible, in size and price points. The 8-inch pies are great for two-member or single-member households. There are plenty of those households out there and they don't need to buy a whole 9- or 10-inch pie," Dick said. While he declined to be more specific, he emphasized that the additional sizes are producing additional sales; they're not cutting into sales of the 9-inch size.

"Some retailers think that by adding a smaller pie, you're selling down to your customers, but we found that's not so. On the contrary, it gives you the opportunity to sell a smaller pie to somebody who wouldn't have bought a larger pie to begin with," he said.

The 11-inch pies are good sellers for this time of year when people are entertaining, he explained. Fruit pies are all offered in those sizes, but not pecan.

"We did add an 8-inch pecan, but we really don't need an 11-inch in pecan pie, because they're so rich," Dick said.

Retail prices for apple pie, which has been a signature item for years at Rice Epicurean, are $4.99 for an 8-inch, $6.99 for a 9-inch and $9.95 for an 11-inch. Pecan pies retail for $5.99 for an 8-inch and $7.99 for a 9-inch.

When he introduced the additional sizes in September, he offered the small apple pie "at a particularly hot price," Dick said.

It got a top spot in the retailer's circular, with $1 off, making the retail price $3.99.

"We devoted about a sixth of our bakery ad to the new size pies and we had a photograph," Dick said. He also said Rice Epicurean is making good use of in-store signage to introduce the new products.

"We have computers in all our stores and our managers are trained to create signs, sometimes even giving the origin of the product on them, when there's something new," Dick said.

Rice Epicurean Markets is displaying the pies on three different tables in its bakeries.

"I like to keep the different sizes separate, on different displays, so they can be signed properly," Dick said. He added that will add to the convenience Rice offers its customers because they will see immediately there are three sizes being offered this year.

"We're in full swing right now with display tables. We flex up for the holiday season. Typically, we use three tables [during this season]. This year, I got some different merchandisers. They have three levels, in a pyramid, so you can merchandise all around them. You can get a lot of product into very little space," Dick said.

During Thanksgiving and Christmas weeks, Rice Epicurean units bake pies through the night to keep those merchandisers full, he added.

This month, pecan and apple are running neck and neck as the best sellers, with pumpkin beginning to catch up, Dick said. For Christmas week, the favorite among Rice Epicurean's customers is apple, he said.