Partner to deliver flavor
When bringing a new store brand food and beverage product to market, retailers know they are taking a gamble. And the stakes are even higher when the goal of product differentiation comes into play. On-trend private label products that incorporate unique flavors and ingredients are the key to creating "destination-type" store brand beverage and food products. But the onus is on the retailer to stack the deck in its favor by partnering with its private label suppliers, including flavor and ingredient companies, to create those truly unique products.
Superior flavor
Individual tastes and preferences are so important to consumers – they are the reason why many of us choose where we eat and what we purchase to feed our families.
"We consistently see consumers respond that flavor is one of the most important criteria when selecting food or beverage products for purchase," says Robert Verdi, business development director for New York-based Virginia Dare. "Whether they are selecting a more familiar flavor or looking to experience something new and different, flavor is probably one of the most important differentiating factors among products."
It is such a driving force, in fact, that it is often taking the place of other food item descriptors such as "natural" and "healthy," says Delia Croessmann, senior marketing manager for Springfield, Mo.-based DairiConcepts L.P.
"[We] believe flavor delivery is paramount for creating differentiated store brand products," she adds.
Flavor might be an attention grabber, but the most successful private label brands will not lose sight of the complete package on the road to differentiation.
"Consumers today want everything from private label brands – the best-quality ingredients, exciting new flavors and tastes, even contemporary style and packaging," explains Lori Miller Burns, director of marketing for Marietta, Ga.-based Arylessence Inc. "And on top of all that, they want smart values. It's a winning formula."
On-trend preferences
When it comes to current flavor trends, todays consumers are looking to broaden their palates with new flavors and interesting taste combinations. And various ethnic and regional flavor offerings are helping retailers answer the call.
"We are seeing a lot of trends with regional flavor profiles like Carolina-style [sauces] or sriracha, which obviously has Asian ties to it," says Jennifer Tracy, senior marketing services manager for Mount Prospect, Ill.-based Mizkan Americas."Moreover, we're looking at flavors or profiles that are considered a little upscale like bourbon or whiskey, and we're applying those in some really unique ways that you might not have considered."
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Also getting the special treatment are vegetables and select fruits, according to Peggy Davies, vice president of industrial sales for McCain Foods USA, Lisle, Ill., with fire roasting and smoke roasting processes. McCains portfolio also includes a selection of sautéed and caramelized products such as fire-roasted sliced celery, caramelized salted onion strips and fire-roasted julienne poblano pepper strips.
And on the beverage side, the demand for convenient, novel coffee and tea products is continuing to grow.
"[We] have the ability to develop novel and interesting ready-to-drink teas such as vanilla-flavored green tea, peach brut black tea – which has flavor reminiscent of champagne – and herbal tea offerings such as ginger rooibos tea," Verdi says.
With ready-to-drink coffee products, Virginia Dare is delivering up unique flavors such as vanilla caramel cream, which can be combined with various coffee roast levels to deliver a truly unique and differentiated product, he adds.
Incorporating different ingredients into product formulations is another way retailers could differentiate their food and beverage offerings.
"We have a variety of different ingredients, for example, in the nutritional space," says Evan Hyman, private label business development manager for Westchester, Ill.-based Ingredion Inc. "[And] we could actually help to utilize those ingredients in the formulation where you can make package claims [such as] high fiber, good source of fiber, prebiotic claims, calcium claims, naturally sweetened with something like stevia, which we also manufacture."
Collaborative benefits
As Miller Burns puts it, "working directly with flavor and ingredient companies connects the retailer directly to the prime source for new food items, new trends and new innovations."
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| The best time for retailers to begin collaborating with their flavor and ingredient manufacturers is at the very beginning of the product development process – the ideation step. |
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But the best time for retailers to begin collaborating with their flavor and ingredient manufacturers is at the very beginning of the product development process – the ideation step.
"Its all about engaging all parties – upfront," Hyman says. "Don't be afraid to engage an ingredient manufacturer [because] we can actually add value to the conversation."
Croessmann agrees. "Ingredient suppliers can work strategically with retailers to determine what needs to be accomplished, then provide current trend information and suggestions of how certain flavors and ingredients will perform in manufactured food-item applications," she explains.
Earlier this year, DairiConcepts introduced a flavor-enhanced Parmesan cheese ingredient, DairiFusion PARMPLUS, which boosts cheese flavor in alfredo and other white sauces, soups, dips and pizza while reducing cheese usage up to 25 percent. The resulting flavor intensity can help differentiate private label frozen entrées and side dishes, Croessmann explains.
And when it comes to hot topic areas such as gluten-free – in which much of the traditional supplier community does not participate – ingredient manufacturers can provide a lot of value.
"We have a lot of the ingredients that go into formulations like that, so we can actually help to differentiate," Hyman says,"even to the extent that we can recommend the supplier or work with the supplier they're already working with to help them differentiate because we have a lot of the background and technology."
Identifying the "right" partner is absolutely essential to creating successful differentiated products.
"Many private label suppliers only contract manufacture," says Kim Holman, director of marketing for Wixon, St. Francis, Wis. "They dont really understand the needs of the end consumer nor how to differentiate a brand."
Because Wixon sources all of its own ingredients and spices from areas throughout the world, the company believes it is better able to work with retailers and their store brands on expanding the understanding of where the spices are derived.
"[Retailers] could then work with Wixon on an ingredient story for their store brands and build that connection and trust with consumers," Holman explains.
The best flavor and ingredient manufacturers will have more than just ideas and suggestions to share with potential retail partners. In fact, many companies have several value-added services to offer, beginning with market research or research and development.
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"I think that we as manufacturers can provide not only our insights from the marketing research that we have, but the retailers themselves have research as well," Tracy explains. "They've got information about people who are at their stores talking to them and providing feedback about what they would like to see."
She goes on to say that when both sets of data points (both the quantitative and the qualitative) are synthesized, a "more impactful product" can be the end result.
DairiConcepts calls on its own trend information, culinary and application support, formulation proficiency and a variety of sensory testing services, including quantitative data analysis panels, to see the final product all the way through from concept to finished production of its standard and application-specific cheese and dairy ingredients, Croessmann offers.
Hyman believes it is important for ingredient manufacturers to be out and active in the marketplace as well, so potential retail partners are aware of the value add they can expect – such as Ingredions sensory team, culinology team (which consists of chefs and scientists) and pilot plant.
With so many tools at their disposal, many flavor and ingredient suppliers are well-positioned to provide almost a "one-stop shopping" experience that will serve retailers well with a timely turnaround and speed to market.
"Maybe we could help them get their product to market three or four months faster because we can be an extra set of hands to help with that development," Hyman says.
Tracy agrees.
"Private branded items have a huge opportunity to really be more innovative or one step ahead of some of the branded manufacturers because their innovation process, in general, I feel takes a bit longer," she says. "So when we offer those destination-type food profiles or the unique flavors, I think that were setting the bar a little bit higher for ourselves as not just private brand manufacturers, but also as food manufacturers in general."