Go Beyond the Basics

Versatile, convenient and comforting, pasta, rice and grains can be found in dishes from across the globe — and on many North American dinner tables every day. And the next few years are likely to be prosperous ones for the category. According to “Category Insight: Pasta, Rice & Noodles,” an April 2014 report from global market research company Mintel, the dry pasta, rice and noodle market in the United States reached $6.6 billion in 2013 — and is expected to reach $6.9 billion in 2018. This news could spell opportunity for retailers and their store brands.

Pasta possibilities

On the pasta side, health and wellness arguably is the hottest trend, covering the spectrum from clean ingredient labels to products with functional benefits, says Liz Housman, director of marketing with Carrington, N.D.-based Dakota Growers Pasta Co.

“There’s a lot of interest in health, like added fiber and protein, more vegetables or reduced calories,” she says. “Adding ingredients like grains, vegetables or plant proteins to pasta formulations boosts the nutritional profile and cultivates consumer interest.”

These added attributes are especially important on the gluten-free end of the pasta category, explains Sylvia Tam, vice president of sales and marketing with Fontana, Calif.-based Maplegrove Gluten Free Foods Inc.

“The opportunities available for plain rice or corn pasta as a private label brand [have] diminished significantly, as there is a proliferation of such basic products,” she states. “Previously, when gluten-free foods were less available, consumers were satisfied with these. But now that availability has ceased to be a problem, consumers are now looking for added attributes.”

Artisan offerings also are experiencing strong demand in the pasta category, says Frank DeMichino, chief operating officer for Brampton, Ontario-based Italpasta Ltd. This type of pasta is made with old-fashioned bronze dies, giving it an “old-world-roots” flair.

Since artisan pasta is of higher quality than its standard counterpart, it can be offered at higher price points, says Tim Schulke, vice president, retail sales for Ghigi Food Industries, Manassas, Va. So although artisan pasta likely will never be mainstream, it will enhance category margins.

Speaking of mainstream, going beyond the norm with shape and size is important for growing sales of store brand pasta. Housman points to pot-sized versions of long pastas as an area of opportunity for retailers’ store brands.

“Shorter, 5-inch spaghetti easily fits into a smaller pot and is easier for young children to eat,” she says. “The addition of this item has been driving incremental growth.”

Meanwhile, DeMichino notes that his company is going beyond the standard spaghetti, spaghettini, elbows and penne rigate to innovate with new shapes and sizes that will bring consumers to the pasta category more often. For example, his company is trying to “reframe” acini di pepe, the pasta commonly used in Italian wedding soup, in a way that will get shoppers to purchase and use it in other types of dishes.

Looking down the road, Schulke says he expects organics to explode in the coming year. Non-GMO products, too, will become a big trend in the pasta category.

The right rice

As for rice, the healthy eating trend continues to be strong, making the whole-grain brown rice subcategory a “major area of growth” for retailers’ own brands, says Tony Richmond, retail sales manager with Producers Rice Mill Inc., Stuttgart, Ark. However, it takes about 45 to 50 minutes to cook this rice, an obstacle for many consumers.

“A quick-cook brown rice is now available on the market with a 25-to-30-minute cook time — and actually is more nutritious due to a special milling process called parboiling,” he points out. “An extra bonus to retailers on this product is it is more shelf-stable than traditional brown rice.”

Sprouted brown rice, too, has picked up momentum in recent years, Mintel says. Compared to milled rice, this rice has four times the dietary fiber and 10 times the gamma-aminobutyric acid (GABA), an amino acid that acts as a mood-boosting neurotransmitter. It also contains vitamins E, B1 and B2; magnesium; niacin; and lysine.

And several brands have focused on launching more healthful products with alternative grain varieties derived from less mainstream sources such as quinoa and millet, Mintel notes. For example, Riviana Foods in the United States introduced Minute Multi-Grain Medley, a whole-grain mix of brown rice, red rice, wild rice and quinoa.

But when it comes to high-volume items, consider limiting the assortment, Richmond suggests.

“Rice is one of the lowest-cost food items,” he states. “Avoid duplication and confusion for the customer by narrowing the selection — for example, reduce from 1-, 2-, 3-, 5-, 10-pound sizes to 2-, 5-, 10- and 20-pound [sizes], adding the 20-pound for the high-volume ethnic users.”

Communicate convenience, quality

Turning to packaging, with pasta, retailers could learn a thing or two from the rice category. Mintel notes that rice packaging has been seeing smaller, convenient sizes, which could add an innovative touch to store brand pasta products.

Looking specifically at artisan pasta, most retailers offer products in an “upgraded” cellophane package, which typically is made with mattefinish cellophane, Schulke says. However, cartons also are a possibility here.

As for claims on pasta packaging, retailers need to address consumer concerns and desires by communicating the right product attributes via callouts, Housman states. Callouts could include “organic,” “produced by American workers,” “produced in a certified gluten-free facility” and “GMO-free.”

Meanwhile, callouts such as “100 percent whole grain,” “cooks in only 25 minutes” and “fat-free” are beneficial for rice packaging, Richmond says. Retailers also should be sure to communicate via packaging and merchandising materials that regular milled rice is naturally gluten-free.

Speaking of merchandising, rice pairs well with items across various areas of the store — with chicken or ethnic foods, for example, Richmond says. It also merchandises well in seasonal displays for holidays during which rice dishes are typically served.

“And, of course, September is National Rice Month,” he adds.

Pasta, too, can be merchandised seasonally, DeMichino says. For example, retailers could cross-merchandise pasta at the beginning of the year — when many set a resolution to eat better — with olive oil and other foods that fit into the Mediterranean diet.

Of course, pasta also could be merchandised on a daily basis simply as a dinner solution for time-starved shoppers, Housman explains.

But one thing retailers should avoid doing is competing in price wars — deflating the prices so much that customers don’t respect the value of a store brand product.

“Pasta is a great product [and] has great penetration,” DeMichino says. “I think [retailers] should be focusing on the value … that product can give to the consumer. So avoid the price wars.”

Do offer better-for-you pasta and rice under your own brands.

Don’t limit store brand pasta offerings to the same old shapes.

Do merchandise private brand pasta and rice in seasonal campaigns and displays.

Don’t participate in price wars with your store brand pasta, rice and grains.