Savor The Flavor

To ensure store brands' recent growth within the spices and seasonings arena continues, retailers must commit to an overall branding effort that includes innovative merchandising and packaging.

Variety is the spice of life. And today's spices and seasonings are definitely heating things up at the dinner table. With regular restaurant meals out of reach for so many cost-conscious consumers, home cooks are taking their spice racks for a spin to rediscover flavor favorites and find some new ones, too.

Sales of store brand options have benefited from the current economic downturn. But to prevent long-term gains from falling flat, retailers will have to stay on top of popular taste trends without losing sight of the tried-and-true mainstays and overall branding efforts.

According to data from Chicago-based market research firm SymphonyIRI Group, dollar and unit sales of private label spices and seasonings rose 3.8 and 3.2 percent, respectively, during the 52 weeks ending Sept. 4, outperforming the total category (U.S. supermarket, drugstore and mass merchandise outlets, excluding Walmart).

Changing tastes

As more ethnic flavors and gourmet seasoning concoctions make their way into the American cooking repertoire, consumers also are learning about the health benefits of certain spices such as cinnamon, ginger and red pepper. Together, these trends are increasing interest in the spice aisle.

Do consider glass packaging to reinforce your quality message.

"As consumers continue to cook more at home and dine out less, they are demanding more interesting and flavorful seasonings to cook with," says Brett Karminski, senior brand manager for Norway, Iowa-based Frontier Natural Products Co-op.

He points to the integration of several former niche categories into the mainstream as shaping the future of the market.

"Some items that have grown surprisingly better than expected are gourmet salts in grinders and ethnic seasoning blends like our Tandoori, Harissa and Vindaloo Curry seasoning," he explains.

Don't forget to place store brand spices and seasonings throughout the store alongside complementary foods to encourage trial.

Also leading the way in the terms of trends are "blends that enhance the umami flavor and seasonings that feature unexpected ingredients like espresso and bacon," Karminski notes.

Ethnic seasonings that focus on the authenticity of the flavor experience also are up-and-coming, says Chris Valsamos, vice president of Castella, Hauppauge, N.Y. The £ company's Latin Sensations line "is full of hot, sweet, fruity, earthy and smoky flavor," he says.

Smoky flavors are staking more ground in the sea salt territory, too. According to Naomi Novotny, president of SaltWorks, a Woodinville, Wash.-based supplier of specialty salts, smoked sea salt, seasonings and spices are getting more attention because they deliver that sought-after authentic flavor with a little heat.

A dash of opportunity

According to a recent report related to U.S. seasonings from global market research firm Mintel International, a sizable consumer market is open to innovations that are higher-priced, premium and even organic. But the sheer number of available — and potentially available — spices, seasonings and spice/seasoning combinations can be overwhelming for consumers and retailers alike. Retailers should not be afraid to take a step back and reconsider their entire store brand offering here. Doing so could help them better position themselves to take advantage of the opportunities the category presents.

"The first and biggest opportunity for store brands is to start by offering the top 18 to 20 bottled spices under the retailer's brand," Karminski says. He adds that most consumers are not put off by the lower price point for these basics, but he thinks the quality could always be improved. And product quality is absolutely essential to the category's performance.

"In the seasonings category, many of the private label options available to consumers are still inferior [in] quality when compared to branded offerings," he adds. "This creates an easy opportunity for retailers to differentiate themselves by offering a premium or organic seasonings offering that is not available at the competitor down the street."

This strategy, Karminski explains, "will help build trial and trust for the store brand seasonings category." And once the retailer's seasoning brand is established, he suggests extending the line into exclusive items customers can purchase only from that store.

Valsamos agrees.

"Custom formulations are profit-producing when coupled with direct importers of spices who have the ability to offer competitive pricing without compromising [on] quality," he explains.

Retailers also need to ask themselves what they want to achieve with their store brand spices and seasonings program, Novotny notes. For example, is the overall aim economy or perhaps a wide selection?

"Really take a look at who you are trying to serve and work closely with your vendors to effectively communicate the product lines' features to the right shopper," she says.

Do pay attention to areas of high consumer interest, including gourmet salt grinders, ethnic seasoning blends and health-promoting spices.

Packaging communicates

And be careful to avoid a "one-size-fits-all" approach to branding and marketing.

"Just putting a generic label on your product with your name on it," Novotny explains, "is just not enough to effectively brand your private label spices and seasonings." Instead, retailers should "really get to know their products and what makes them unique," she says.

The right look and presentation in terms of packaging not only can help retailers achieve "uniqueness," but also is crucial to grabbing the shopper's attention. Even the details need careful scrutiny.

Speaking of details, Karminski notes that his company has noticed label mistakes on some store brand spice and seasoning packaging.

"Be sure that your supplier has a thorough understanding of label guidelines, and knows how to use spell-check," he stresses.

As for the package itself, glass containers with attractive labeling help to reinforce the product's quality, Novotny says.

Karminski agrees, noting that consumers perceive both branded and private label seasonings packaged in glass jars to be of higher quality than seasonings put into paper boxes or plastic jars.

Put them to the taste

While some things change, some things stay the same. Store brand seasonings will always remain a good value even as economic conditions stabilize and eventually make a turn for the better.

Don't discount opportunities in premium and organic spices; such products could help differentiate your brand.

But retailers will have to bring as much to the table as possible, Novotny says, in terms of marketing, overall branding and cobranding opportunities if they are to grow share here.

One such opportunity lies in creative placement throughout the store. Spices and seasonings need not be relegated to just the product aisle; they could be placed above the meat case, close to bagged salads and near other complementary items throughout the store.

"Of course, seasonings are all about flavor," Karminski says, "and the best way to communicate the benefits of seasonings products is to encourage consumers to experience the flavor through sampling."

Novotny agrees, noting that retailers should try to increase product trial opportunities, particularly with more expensive products or new flavors.

"Retailers can pair a store brand seasoning with a demo in the meat department and increase sales in both parts of the store," Karminski adds. "Sampling can even be done without cooking, as olive oil and bread can be paired with store brand seasonings to make a great dipping sauce. The key is to get people to taste the quality and flavor of the seasonings."