Delightfully different

American consumers continue to place a heavy emphasis on value, often trading between oil types in search of the lowest price and purchasing private label options more often, states Catherine O’Connor, senior analyst for global market researcher Canadean. And when it comes to vinegars, specifically Balsamic Vinegar of Modena, sales have reached a plateau, says Luca Bombarda, U.S. marketing manager for Modena, Italy-based Acetum Srl. In particular, the sales plateau has affected the vinegar products deemed to be “basic” or “everyday.”

However, both O’Connor and Bombarda agree that store brand oils and vinegars are finding growth opportunities within the premium space, where differentiation is key. Consumers have a high level of confidence in retailer offerings and find it hard to distinguish between the store brand and the national brand, O’Connor says, and consumers are willing to trade up to higher-quality products with a premium positioning, which they see as having an added value.

Offer specialty oils, vinegars

One way to go premium with olive oil is to differentiate from the core range of offerings and introduce new countries of origin. Italian olive oil is no longer the lone recipe for a successful private label program, says Tomás Almeida, director of marketing for Sovena USA, Rome, N.Y. Consumers also are interested in buying oils that come from countries such as Spain, Greece and Argentina.

Retailers could also consider offering specialty oils. Sales of coconut oil — especially private label coconut oil — are stronger than ever, says Matthieu Kohlmeyer, founder and CEO of La Tourangelle Inc., Berkley, Calif. Organic virgin coconut oil and organic refined coconut oil are challenging the long-standing reign of olive oil.

Additionally, avocado oil, sesame oil, almond oil and even pumpkin seed oil are gaining more distribution and sales among North American consumers, he adds. However, specialty and organic oils remain underrepresented in the oil category, so retailers could really benefit by adding more choices under their store brands.

When it comes to vinegars, one of the more popular products currently in the Balsamic Vinegar of Modena category is a balsamic reduction or glaze, Bombarda says. It’s more versatile than regular vinegar and has a smoother and sweeter taste. It can be used to dress salads and grilled vegetables, as well as to marinate poultry or meat and to add flavor to cheeses and even desserts.

Additionally, Bombarda notes that specialty vinegars are on the rise, with Champagne vinegar from France, sherry vinegar from Spain and single-variety wine vinegars such as Chianti, Chardonnay and Cabernet of high interest.

Call out healthful attributes

Consumers are also increasingly seeking out oils that are perceived as more healthful, O’Connor says. For example, olive oil remains popular due to its “health halo.” Not only is it associated with the Mediterranean region, where people seem to live longer, but it also has been linked with keeping cholesterol levels in check, promoting digestive health, decreasing blood pressure and combating osteoporosis.

Coconut oil’s rise in popularity also is likely due to its healthful reputation, states Christine Brown, sales and marketing manager for Arbuckle, Calif.-based Harvest-Brands. For example, it has been linked with fighting off bacterial and viral infections, promoting weight loss, regulating blood sugar and regulating thyroid function.

Rice bran oil, too, is quickly becoming a favorite among consumers for frying foods as it can easily replace hydrogenated oils that contain trans fat. It has a long shelf life and is a good source of vitamin E, antioxidants and micronutrients, Brown says. Plus, foods cooked in rice bran oil absorb up to 20 percent less oil than foods cooked in other oils, resulting in fewer calories.

Nut-based oils are also growing in popularity due to their healthful attributes, O’Connor states. For example, walnut oil provides omega-3 fatty acids, which help maintain brain health, while almond and hazelnut oil provide high amounts of vitamin E, which helps improve the appearance of the hair and skin.

Beautiful and informative

For value-conscious consumers, larger bottle sizes — 51 ounces and 101 ounces — are increasingly important in olive oil, Almeida says. And for many oils, but especially olive oil, the preferred packaging material is changing as well. Instead of glass or tin, PET packaging is becoming more popular. It’s easily recyclable, lighter for carrying and preserves the product just as well as a glass bottle.

However, if a retailer’s target consumer is more interested in premium offerings, decorative packaging will be more important and should likely be heavily emphasized, O’Connor states. With more consumers desiring to show off their culinary abilities, retailers will see increased demand for products that are packaged to be displayed, which will likely lead to a rise in glass packaging, molded in shapes that stand out to increase the product’s decorative appeal.

“Manufacturers can also enhance visual appeal by presenting oil in different colors, as well as displaying key ingredients inside the bottle, such as a clove of garlic or dried chili pepper,” O’Connor says. “There will also be increased demand for products that use dispenser closures, providing an attractive visual link to the pouring experience.”

Although store brand packaging has made tremendous strides in shaping the perceived quality of those products, some vinegars, particularly distilled and apple cider vinegars, have the opportunity to close the gap with the appearance of their labels, says Jennifer Tracy, senior marketing services manager for Mount Prospect, Ill.-based Mizkan.

“Many labels carry outdated designs, which to the consumer might suggest that the product will not match the quality of nationally branded items,” she says.

Additionally, recent studies have suggested that a significant number of consumers have a hard time understanding vinegar labels, she adds. Iconography on the labels could help to provide clarity.

For Balsamic Vinegar of Modena, this is especially true. Consumers oftentimes need help identifying how to use it in their cooking, especially if it is a higher-grade product, Bombarda says. Part of that problem can be alleviated by using the rating system developed by the Italian Association of Balsamic Tasters and the CSFA, a sensory analysis laboratory. The “leaf system” rates Balsamic Vinegar from Modena on a scale of one to four leaves, with one leaf indicating a more pronounced vinegar flavor that is suitable for salad dressings and four leaves indicating a very sweet taste that is suitable for fresh fruit, ice cream and Parmesan cheese.

Additionally, Bombarda recommends that Balsamic Vinegar of Modena labels include the Protected Geographic Indication symbol. For consumers, this symbol guarantees that the vinegar is authentic, high in quality and produced using traditional methods.

Mix it up

Retailers could spur impulse purchases among consumers simply by displaying oils and vinegars outside of the center-store aisles, states Mark Coleman, vice president retail sales, Catania- Spagna Oils, Ayer, Mass. For example, they could display olive oil with balsamic vinegar and some salt and pepper next to fresh lettuce to encourage a homemade salad dressing-related impulse purchase.

Vinegar glazes also could be displayed in a variety of areas — for example, by the marinades, salad dressings, cheeses and even by fresh fruit, Bombarda says.

And don’t forget about cooking lessons and sampling, Brown states. Retailers could teach the customer which oils should be used for frying, sautéing, salad dressings, baking, dipping, etc.