Increase flavor, value and sales

Nothing dresses up a meal like a great sauce, relish or another favorite condiment. The current market for condiments is not what it could be, however. According to “Condiments and Dressings — US,” a December 2014 report from global market research firm Mintel, sales grew only 3 percent from 2009 to 2014 — actually a 7 percent decline after adjusting for inflation.

What retailers can infer from the stagnant sales, though, is that shoppers really want new condiments besides the basic ones that have been around forever.

“The most significant trend for condiments right now is the need to meet the consumer’s desire to customize a snack or meal, whether that is by adding a new flavor to their food, trying more spicy flavor varieties, wanting better-for you options, or just being adventurous and expanding their food and flavor horizons,” says Jeanne Meeder, director of industrial and consumer products R&D for St. Francis, Wis.- based Wixon, which produces seasoning and flavor systems for a variety of food categories.

Kick it up

More than ever, consumers want flavor. It is, after all, the key purpose for the use of many condiments to begin with. And in their search for flavor, consumers are looking not only for new varieties of foods, but also new varieties of condiments. According to an article recently posted on the Specialty Food Association website, sales of many condiments remain lackluster, but sales of specialty condiments are “booming.”

The Mintel report notes that “developing specialty products with complex flavor profiles” is a potential means of growing sales in this category, and national brands such as Pittsburgh-based Heinz are getting on board with that, launching varieties such as Tomato Ketchup blended with Sriracha and Tomato Ketchup Blended with Balsamic Vinegar. Retailers should think about offering more unique varieties of their own condiment products if they want to remain competitive.

When it comes to flavors retailers should consider for new varieties, shoppers especially want varieties with heat.

“The most significant trends I see now in condiments are consumers looking for bolder flavors and more out-of-the-box flavors such as spice, peppery, salt, acidic lime or lemon and smoke combinations,” says Vincent Barcelona, corporate chef and vice president of customer experience at Englewood, N.J.- based Supreme Oil Co., which manufactures various condiments under several brands. “Korean, Indian and Vietnamese style flavors are all popular.”

The interest in flavors for condiments goes beyond pourable and squeezable products. To cater to flavor-seeking consumers, Minneapolis-based Target Corp. recently introduced Archer Farms Spicy Maple Bourbon pickles — giving ordinary condiments some jazz. According to Meeder, interest in pickled and fermented condiments is growing.

“Some restaurants are even offering house-made pickles,” she says, “some with untraditional zesty flavors or ingredients such as radish, okra, cabbage, turnip greens, seasonal vegetables and even eggs, sardines and meats.”

She also notes the growing interest in sweet and spicy flavors, citing examples such as piquant honey, ginger-citrus honey, habanero honey and ghost chili honey.

Go natural

While consumers might not pay as much attention to the health benefits of condiments as they do in other product categories, retailers should still consider such benefits. Cleaner, better-for-you ingredients might encourage more shoppers to choose store brand condiments.

“Many shoppers are looking for natural, gluten-free and non-GMO claims. Nutritional content claims, especially relating to fiber and protein, can have strong appeal,” Meeder points out, adding that “health halo” ingredients such as chia seeds, quinoa and superfruits can spark some additional interest.

According to Platteville, Wis.-based Bay Valley Foods, another fast-growing trend in the condiments category is organic. The company notes that consumers, particularly millennials, increasingly want natural or simple ingredients for condiments, and trust the quality of store brand organic products.

Play up promotion

Just as important as the condiment product is how that product is packaged and marketed.

“Capturing the consumer’s attention by grabbing their eye is the first step in getting them to buy,” Meeder says. “Attractive packaging helps to draw attention to your specific product. Clean labels and graphics, including claim bursts, can help get consumers to read the label, which more and more consumers are doing these days.”

Meeder warns, though, that getting too creative with a design can backfire.

“Some product names and graphics, especially on the hot and spicy side, are just plain tacky,” she says. “Creative names can be fun and appealing, but venturing too far over the line can turn off some consumers.”

Product placement also matters, and according to a spokesperson from Bay Valley Foods, one of the best areas of the store for condiments is in the refrigerated section, a section better known for freshness and quality than the center store aisles. The spokesperson points to data from Chicago-based market research firm Information Resources Inc. (IRI), which show strong recent growth for condiments such as hummus, guacamole and salsa dips. Private label hummus, salsa and guacamole dips have stronger velocity than national brands and could increase the overall basket ring by $150 per shopper, per year.

The Bay Valley Foods spokesperson also recommends cross-promotion with complementary products as another means of getting store brand condiments noticed. Including recipes on the label or otherwise emphasizing versatility could also drive up sales. Ranch dressing, for example, serves as a lot more than a topping for salad, with many people using it as a dip for chips or veggies, as a marinade or as ingredient in recipes. Another example is pickles, which, besides being served with foods, also make great snacks on their own. Retailers need to highlight the multiple uses for store brand condiments.

Beyond the store shelves, retailers also shouldn’t forget about the Internet as a place to advertise their store brand products, including condiments.

“Social media and electronic marketing is taking over because we receive our information differently than we did even 10 years ago,” Barcelona points out. “Everyone is on a smartphone or tablet and that is where is the opportunity is.”

Going forward, retailers can’t afford to ignore changes in the market or the factors driving sales.

Complacency is where companies tend to lose out by not pushing forward and getting on board with new trends,” Barcelona says.