Cook Up Sales

From cooking to cleaning to body care, oils and vinegars are household essentials. But with specialty oil and vinegar shops popping up around the country, and more people wanting to cook gourmet foods right at home, the market for them is going beyond basic.

“More and more consumers understand that oils are an integral ingredient in cooking and the outcome of their creations,” says Lars Oltmanns, CEO of Atlanta-based HALO Food Connect, the exclusive distributor of Brassola kernel oils from Germany.

Offer gourmet varieties

One way to rev up excitement for store brand oils and vinegars is by offering premium varieties.

“Organic and specialty oils sales are experiencing strong growth, and more retailers are launching private label items in this category,” says Matthieu Kohlmeyer, founder and CEO of Woodland, Calif.-based La Tourangelle Inc., a producer of specialty oils, adding that non-GMO, organic and artisan are the “three key words driving consumer choices.”

One means of reaching customers with an interest in premium oils is to offer store brand flavored varieties.

“Oils flavored with herbs, spices and citrus fruits are on trend, as well as higher-quality oils with health benefits,” Oltmanns says, also pointing to seed oils — derived from foods such as pumpkin and squash — as an area in which store brands can possibly get ahead.

On the vinegar front, balsamic glazes or reductions, smoother and sweeter than regular balsamic vinegar, are especially popular right now, with “double- and sometimes triple-digit growth,” says Luca Bombarda, U.S. marketing manager with Italy-based Acetum, a manufacturer of a number of vinegar products, including Balsamic Vinegar of Modena.

According to Bombarda, quality is really the key to sales growth here, with the higher-positioned vinegars currently attracting the most attention from consumers.

“Although sales of these specialty vinegars might not make sense in terms of volume, they contribute tremendously to the appearance and will make the brand stand out and the whole category look more upscale,” he says.

When it comes to quality, though, one thing retailers shouldn’t do is mix conventional oils with specialty oils.

“These are two different categories,” notes Christine Brown, sales and marketing manager for Arbuckle, Calif.-based Adams Group, a manufacturer of vegetable oils and other products. “Stay away from using the term ‘natural’ — or labels that call out 100 percent of only one element in a blend.”

Offer healthful options

While consumers want to add flavor to food, they also want to add health benefits — and edible oils can help them do that. Some oils, particularly unrefined varieties such as cold-pressed ones, are better than others, though, but are not always as prevalent on shelves as the highly refined varieties.

“Cold-pressed oils not only preserve nutrients and positive antioxidants, but maintain the pure, authentic flavor better as well. A canola oil does not have to be bland in color and taste,” Oltmanns says, noting that the “authentic taste of a canola kernel is nutty, and the oil is golden.”

In addition, cold-pressed varieties, which skip the extra processing that refined oils undergo, play into consumer desires for fresher, more natural foods. Retailers also could attract shoppers with store brand expeller-pressed varieties, which are processed without the use of chemical solvents.

One type of oil with health benefits, including for hair and skin care, that retailers might want to stock on shelves is coconut oil, which, just like coconut water, is seeing increased consumer interest.

“The customers’ decision to switch to coconut oil may have been based on the buzz surrounding the oil, but because of the taste and health benefits, they are making a conscious decision to incorporate it into their daily habits,” Brown says, adding she is also seeing interest in palm oil, which is both high in vitamin E and suitable for high-heat cooking.

The same interest in health benefits extends to vinegar, too, with apple cider vinegar, in particular, being of special interest to health-conscious shoppers.

“Unfiltered, unpasteurized varieties contain the mother,’ which many consumers believe offers health benefits for skin care, digestion and more,” says Jennifer Tracy, senior marketing services manager at Mount Prospect, Ill.-based Mizkan Americas Inc., manufacturer of a variety of vinegar products.

Clear up confusion

Not every shopper is going to know the differences among oil and vinegar products — meaning retailers need to have store brand labeling that clears up any confusion.

“Claims that explain the oils’ ideal cooking applications and temperature usage can help consumers find the right oil,” Oltmanns says.

Oils and vinegars also need to be organized in a logical way.

“One of the most noticeable mistakes and sources of confusion and poor shelf value in vinegar is the presence of many different brands without a clear indication of their qualities, usages and positioning,” Bombarda notes, recommending that retailers use a rating system, similar to the leaf system found on Balsamic Vinegar of Modena products, to indicate the quality level.

One advantage for the oil and vinegar category is that it is easy to sample products to customers.

“The best way to promote store brand vinegars is to have clients try the product,” Bombarda points out. “Cross-merchandising with the salad bar, the prepared foods area or deli is a simple and very effective tool to enhance the program.”

The right sizing could also compel consumers to buy the store brand.

“Packaging size diversity offers a nice way to grow existing private label collections,” Kohlmeyer says, mentioning two opportunities for retailers: large-size coconut oil and HDPE packaging for body care oils.

With shoppers wanting value, retailers also need to stress versatility. Product labeling could also emphasize different uses.

“Offering solutions like tear-away recipes or microsites with product detail educates the consumer on the product, inspires them to take action and encourages repeat purchases,” Tracy says. “Similarly, shelf sets featuring other items they may use with their vinegar, such as egg dye kits or sponges next to white distilled vinegar during Easter or spring cleaning, remind consumers of the product’s versatility.”

Besides the label itself, necktags around the bottle are an effective means of educating shoppers.

While providing extra product details about oils and vinegars takes more work, the effort can pay off, not just in sales for this category, but also in gaining consumer trust for the store brand throughout the store.

As Brown points out, “Customers are looking for healthier ways to eat and how they prepare their food. Providing them information on how to achieve their goals will improve customer loyalty.”

Do consider adding premium oils and vinegars to the store brand lineup.

Don’t mix conventional oils with specialty oils on the shelf.

Do use the product label, a neck tag or other means to educate consumers about the oil or vinegar product.

Don’t miss opportunities to cross-merchandise store brand oils and vinegars with complementary items.