Battle For The Bottle

Retailers should consider fridge-fit bottles and innovative flavors when competing against the national brands in the ketchup category.

Americans long have had a love affair with ketchup, putting it on meatloaf, hot dogs, burgers, fries, steak and more. Although most Americans would gag at the thought of doing so, President Richard Nixon even put ketchup on his cottage cheese.

But store brand condiments — including ketchup — will have to fight hard against the national brands to "earn their play" in 2012, says Thom Blischok, global president, innovation and strategy with Chicago-based SymphonylRI Group.

"This category will likely see less growth because people are very familiar with national brands," he explains.

Trends with traction

Perhaps the biggest ketchup trend that already has taken hold and will remain strong in 2012 is seen in packaging. Mike Hackbarth, vice president, private label for The Fremont Co. of Fremont, Ohio, explains that the biggest and only true recent innovation in the packaging arena is the 40-ounce fridge-fit bottle, which consumers have fully accepted.

"Heinz launched this several years ago, but it really was not accepted as the next biggest-selling size until early this year," he says. "Most progressive retailers have or are finalizing a private label 40-ounce fridge-fit ketchup."

Another trend with traction is the replacement of high-fructose corn syrup with cane sugar and other sweeteners, Hackbarth notes. The Fremont Co. currently is working in this arena.

"We are developing some formulations to capitalize on some upcoming sweetener trends, but we are not ready to publicize our intentions because we want to be first to market," Hackbarth says.

Trends on the horizon

Ketchup is a pretty basic product — manufacturers rarely stray from the norm during development. However, this reality is beginning to change, with folks learning that different foods could call for different types of ketchup.

"I probably have five kinds of mustard in the door of the refrigerator, and I only have one kind of ketchup," notes Mary Chapman, director, product innovation with Chicago-based research firm Technomic Inc. "So there's no reason that ketchup shouldn't follow that same idea — delistyle, good for french fries, etc."

For its part, Heinz recently unveiled a limited-edition tomato ketchup blended with balsamic vinegar (instead of the traditionally used white vinegar) to give the product a "more sophisticated taste," according to the company's website.

What's even more unique is how the new ketchup is being marketed and sold. The product, which became available on Nov. 15, sells through Facebook only. According to an Oct. 25 article in The New York Times, Heinz has more than 825,000 followers on Facebook, where it hopes enthusiasts will spread the word about the new product.

"I assume it will go to retail if it is successful," Hackbarth predicts, "but I am looking at this SKU to drive a little brand publicity and exposure via social networks."

Chapman says balsamic vinegar gives the ketchup an extra layer of flavor in the same manner as citrus does with a number of other condiments. And actually, a citrus-flavored ketchup might be something to look for in 2012.

But retailers won't want to neglect the basics. In an effort to compete against private brands, Heinz announced on Nov. 18 that it will roll out a line of products for value-minded consumers — including a 10-ounce ketchup variety packaged in an "innovative standup pouch" with a spout. The product's suggested retail price will be 99 cents.

— R. Hofbauer