Go Beyond Imitation

Retailers looking to differentiate their store brand condiments should consider offering gourmet and better-for-you products.

Americans are known for their love of condiments. Many of the nation's favorite foods — from pastrami sandwiches to hot dogs — would be pretty bland without their zesty mustards and savory toppings.

But condiment sales were somewhat lackluster in the past year. Data from Chicago-based SymphonylRI Group show small dollar and/or unit sales declines in quite a few condiment categories — in both the total categories and on the store brand side — during the 52 weeks ending Aug. 7 (U.S. supermarkets, drugstores and mass merchandiser outlets, excluding Walmart).

So, how could retailers grow sales of store brand condiments? For starters, they could diversify their portfolio with unique and innovative products, says Annie Owens, director of marketing for Mario Camacho Foods, Plant City, Fla.

"Innovation is key to driving in-store sales," she says. "Retailers can increase profits by identifying categories and products where private label could address unmet consumer needs."

The differentiation dance

One way to differentiate a product is to make it gourmet. Kelly Cox Semple, private label manager for York, Maine-based Stonewall Kitchen, says Stonewall Kitchen has been working with more retailers that are looking to roll out gourmet products.

►Do consider substituting cane sugar or agave nectar for high-fructose corn syrup in store brand ketchup products.

An example of such a product is Stonewall Kitchen's new Cheddar Ale Mustard, a Dijon mustard that "blends a robust ale flavor with an underlying taste of cheddar," the company's website says.

Consumers also desire mustards that satisfy their sweet tooth or add a spicy kick, says Tim Sheridan, national sales director for Olds Products, Pleasant Prairie, Wis.

Don't just offer the olive basics — consider adding gourmet options stuffed with bleu, feta or white cheddar cheese.

"In fact, one of our more rapidly growing flavor profiles is one that combines both," Sheridan notes. "It starts off sweet in the front and transitions to a perfectly balanced spicy note in the back. Another example … is Honey Dijon. This is a coarser grind that tames the zip of Dijon with sweet honey."

It also is important for retailers to differentiate in the olive category, says Dan Kelly, vice president of sales for Tracy, Calif.-based Musco Family Olive Co. More retailers are going beyond pimentos, stuffing their own-brand olives with bleu, feta or white cheddar cheese.

Of course, retailers need to make sure they take quality into account when sourcing even the olive basics, Kelly adds.

"I think the biggest thing that retailers should avoid is commoditizing olives," he says. "The fact is, there are ways to differentiate product quality, and that should not be overlooked in the sourcing decisions."

Consider a healthful spin

Kelly also sees growing interest in more healthful condiments.

"We … have seen a broadening interest in reduced- and low-sodium products across ripe and Spanish olives," he says.

George Christodoulou, director of retail sales with Castella, Hauppage, N.Y., also sees a growing interest in better-for-you items.

"Vegetable products are growing in our portfolio," he points out. "We've recently added a sandwich topper line to our condiments featuring a variety of peppers. We have also introduced grilled vegetable platters — marinated in oil and spices — to be used over salads, pasta and more."

Better-for-you products — or at least products perceived to be more healthful — also are big in the ketchup category. Many national brand manufacturers and retailers continue to explore alternatives to high-fructose corn syrup (HFCS), says Mike Hackbarth, vice president, private label with The Fremont Co. of Fremont, Ohio.

Cane sugar is one popular HFCS alternative, Hackbarth notes. During the last year, several retailers, including Stew Leonard's of Norwalk, Conn., rolled out store brand ketchups sweetened with cane sugar.

Agave nectar is another HFCS alternative retailers are exploring, Hackbarth says. However, the sales potential of agave-sweetened ketchup is not yet known.

"Long-term acceptance of this product is yet unproven because the agave creates a very different flavor profile than [that of cane] sugar or HFCS," Hackbarth says.

Do invest in in-store demonstrations and secondary displays to get your condiments off the shelf and in front of the customer.

The perfect package

Speaking of ketchup, Hackbarth adds that value-sized packaging has become rather popular, noting that the 40-ounce and 64-ounce PET fridge bottles have become standard sizes for both national brand and store brand ketchup.

However, gourmet ketchup might attract more attention if it is packaged in glass. That could be why New York gourmet retailer Balducci's offers its Hot & Spicy Ketchup in a glass bottle.

The same goes for mustard. Cox Semple notes that most of Stonewall's gourmet products — including the company's gourmet mustards — are packaged in glass jars. Squeezable PET bottles tend to be reserved for everyday mustards.

Other condiments that traditionally have been packaged in glass are finding new life in plastic. For example, PET has become a popular choice for steak sauce bottles, Hackbarth says.

In olives, where glass long has dominated, portion-control snack pouches are starting to make an appearance. Mario Camacho recently introduced Mario 100 Calorie Snack Olives packs, which contain olives that are "packed loose without the juice." Owens says the product has been a hit in stores.

"Consumers can pop [the olives] into their mouth right out of the pouch," she notes.

The product isn't yet available for retailers' store brand programs, Owens says. However, it serves as an example of what retailers could create through a good supplier partnership.

Don't discount glass as a packaging option; glass jars give gourmet mustards and other products an upscale look.

Partner for marketing

Supplier partnerships also offer retailers the opportunity to develop creative in-store marketing programs. With olives, Kelly says Musco has had much success creating display modulars and shippers for store brand pitted ripe and sliced olives.

"We also have created a sliced rack program that many of our customers are utilizing to cross-merchandise sliced ripe olives outside of the traditional olive department with other related products to create a meal solution," he says.

Secondary displays also help get ketchups and mustards off the shelf and out in front of the customer, both Hackbarth and Sheridan believe.

And don't forget cooking demonstrations. Christodoulou says demos provide an opportunity for retailers to share recipes with customers.

Cox Semple agrees, adding that in-store demonstrations allow retailers to show a condiment's versatility while cross-merchandising it with other items.

"Share demonstrations by including both [cross-merchandised] items," she says. "Don't just set up the chutneys in front of the meat counter!"

Look What's New

President's Choice Smokin' Stampede Mayo Sandwich Spread from Loblaw Companies of Brampton, Ontario, is said to be available in a mild variety. Packaged in a 300ml bottle, the product can be spread on sandwiches or burgers, added to a dip, or served with beef or pork.

Minneapolis-based Target Corp.'s Archer Farms Stuffed Trio Queen Olives are said to be stuffed with garlic, jalapeno and pimento. The premium olives are kosher-certified and retail in a 4.53-oz. glass jar.

Burman's Sweet & Hot Deli Mustard from ALDI Inc., Batavia, Ill., is certified kosher and is naturally gluten- and lactose-free. The 100 percent natural mustard is said to have a sweet and spicy flavor and retails in a 12-oz. PET bottle.