Today's Delis

DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT DEC/JAN 2017 $14.95

Retail Trends For Today’s Delis

Also Inside Flatbread Dips & Spreads Olives Blue Cheese Parmigiano Reggiano Natural meats

Cover.indd 1 12/21/16 3:27 PM Couturier.indd 1 12/15/16 2:43 PM DEC/JAN ‘17 • VOL.21/NO.6 Contents FEATURES Flatbreads On The Rise �� 20 Expanding the selection increases sales MERCHANDISING REVIEW Upping The Ante ��24 On Dips & Spreads Consumers are moving beyond the traditional flavors and varieties

Raising The Olive Bar ��30 Simple solutions to keep sales strong CHEESE CORNER Blue Cheese Sales ��34 Are On The Upswing A look at why delis are stocking more unique varieties The King Of Italian Cheeses ��38 Parmigiano Reggiano benefits from strict production COVER STORY 12 guidelines and a complex flavor that sets it apart Creative foodservice offerings, healthful fare DELI MEAT and natural selections help supermarkets compete Natural Meats Are Here To Stay ��42 Clean labels are driving sales

20 30 38 COMMENTARIES IN EVERY ISSUE

EDITOR’S NOTES Deli Watch ��6 Looming Threats To Supermarket Delis �� 8 Information Showcase �� 50 PUBLISHER’S INSIGHTS A New Focus On Ingredients �� 10 Blast From The Past �� 50

DELI BUSINESS (ISSN 1088-7059) is published by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425 POSTMASTER: Send address changes to Deli Business, P.O. Box 810217, Boca Raton, FL 33481-0217

DEC/JAN 2017 DELI BUSINESS 3

TOC.indd 1 12/22/16 9:15 AM NEW CLASS OF ACS CERTIFIED CHEESE PROFESSION- ALS ANNOUNCED

DELI BUSINESSMarketing Merchandising Management Procurement

DELI BUSMARKETING MERCHANDISINGINESS MANAGEMENT PROCUREMENT

DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT IDDBA ELECTS NEW

DELI BUSMARKETING MERCHANDISINGINESS MANAGEMENT PROCUREMENT PRESIDENT & EDITOR-IN-CHIEF JAMES E. PREVOR DeliBUSINESSmarketing merchandising management procurement [email protected] OFFICERS, BOARD DeliBUSINESSmarketing merchandising management procurement PUBLISHING DIRECTOR

DeliBUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT KENNETH L. WHITACRE he Madison, WI-based International Dairy-Deli-Bakery Association DeliBUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT [email protected] (IDDBA) elected the 2016-2017 ofﬁ cers and board of directors at its annual

DELI BUSINESSMarketing Merchandising Management Procurement PUBLISHER/EDITORIAL DIRECTOR business meeting, held recently in Chicago. LEE SMITH Marketing Merchandising Management Procurement T DELI BUSINESS [email protected] Jewel Hunt, group vice president bakery, Albertsons Cos., was elected chairman of the board. She has served on the board since 2010 and has been involved EXECUTIVE EDITOR in a number of committees. John Cheesman, vice president business development, ELLEN KOTEFF [email protected] Clyde’s Donuts, will continue to serve on the board as past chairman. MANAGING EDITOR Other new ofﬁ cers are executive vice chairman Erik Waterkotte, senior director LISA WHITE of sales at Columbus Craft Meats; vice chairman Rick Findlay, global executive [email protected] coordinator of grocery at Whole Foods Market Inc.; and treasurer Gaetano Auric- NATIONAL SALES MANAGER chio, executive vice president of BelGioioso Cheese Inc. MARK GOLD Three people also were appointed to the board of directors, including Carter [email protected] Califri, Norseland Inc.; Dominique Delugeau, Saputo Specialty Cheese; and Car- SALES MANAGER mela Serebryany-Harris, Upper Crust Ltd. JANE JOHNSON [email protected] Industry leaders elected to serve three-year terms on the IDDBA board of directors are Curt Coolidge, vice president, in store bakery, at TreeHouse Foods PRODUCTION DIRECTOR DIANA LEVINE Inc.; Linda Duwve, vice president sales and marketing, Emmi Roth USA Inc.; Rick [email protected] Findlay of Whole Foods; Jewel Hunt of Albertsons; Ray Lippert, DecoPac Inc.; ART DIRECTOR Joe Squires, customer marketing director, Land O’Lakes Inc. SUNSHINE GORMAN Other board members continuing to serve are Jim Antrup, Dawn Food Prod- [email protected] ucts Inc.; Jennifer Johnson, Hormel Foods Corp.; William Klump, Butterball LLC; PRODUCTION DEPARTMENT Eric LeBlanc, Tyson Foods Inc.; Dave Leonhardi, Wisconsin Milk Marketing Board FREDDY PULIDO Inc.; Kevin McDonough, Weston Bakeries; Ed Meyer, Schnuck Markets Inc.; Mark JACKIE TUCKER Rudy, Hubert Co.; Peter Sirgy, Reser’s Fine Foods Inc.; Pilippe Surge, Lactalis RESEARCH DIRECTOR American Group Inc.; Jerry Suter, Meijer Inc.; Dotty VanderMolen, Advantage SHARON OLSON Fresh; John Wellenzohn, Rich Products Corp.; and Voni Woods, Giant Eagle Inc. CONTRIBUTING EDITORS CHRIS AUMAN BOB JOHNSON KEITH LORIA BARRY SPARKS LISA WHITE

SEND INSERTION ORDERS, PAYMENTS, PRESS RELEASES, PHOTOS, LETTERS TO THE EDITOR, ETC., TO: DELI BUSINESS P.O. BOX 810217, BOCA RATON, FL 33481-0217 PHONE: 561-994-1118 FAX: 561-994-1610 COMING NEXT IN FEB/MAR ISSUE EMAIL: [email protected] PHOENIX MEDIA NETWORK, INC. COVER STORY DELI MEATS CHAIRMAN OF THE BOARD Italian Foods Rotisserie Chicken JAMES E. PREVOR EXECUTIVE VICE PRESIDENT FEATURE STORIES CHEESES KENNETH L. WHITACRE Consumer Research Raw Milk SENIOR VICE PRESIDENT Grating Cheese LEE SMITH MERCHANDISING REVIEWS VICE PRESIDENT EDITORIAL Grab’N Go SUPPLEMENT ELLEN KOTEFF Corporate Proﬁ les GENERAL COUNSEL PROCUREMENT STRATEGIES DEBRA PREVOR Probiotics TRADE SHOW COORDINATOR JACKIE LOMONTE PREPARED FOODS DELI BUSINESS IS PUBLISHED BY Pizza PHOENIX MEDIA NETWORK, INC. P.O. BOX 810425, Smoothies BOCA RATON, FL 33481-0425 PHONE: 561-994-1118 FAX: 561-994-1610 www.delibusiness.com COMING IN APRIL/MAY ENTIRE CONTENTS © COPYRIGHT 2017 DELI BUSINESS will be exploring the sandwich segment.

PHOENIX MEDIA NETWORK, INC. ALL RIGHTS RESERVED. SUBSCRIPTION & READER SERVICE INFO PRINTED IN THE U.S.A. If you would like to subscribe to Deli Business for the print and/or electronic version, PUBLICATION AGREEMENT NO. 40047928 please go to www.delibusiness.com and click on the “Subscribe” button. From there, you can subscribe to the print version of Deli Business or free of charge to the electronic version. In addition, you can read the electronic version and go directly to a company’s Web site through our special hot link feature. Best of all, you can download and print any article or advertisement you’d like.

4 DELI BUSINESS DEC/JAN 2017

Masthead.indd 1 12/20/16 10:54 AM Atalanta.indd 1 11/9/16 4:52 PM DELI WATCH

ANNOUNCEMENTS TRANSITIONS

WINONA FOODS NEW POMI CAMPAIGN PERDUE ELIMINATES EMMI ROTH APPOINTS RECEIVES HONOR LAUNCHES ANTIBIOTIC USE FINANCE DIRECTOR Winona Foods, Green Bay, WI, has The Consorzio Casalasco del Perdue Farms, Salisbury, MD , has Emmi Roth USA, Fitchburg, WI, been named Vendor of the Year for Pomodoro, New York, NY, has announced that it has completed has appointed Mary Sagona in the Sales and Service Excellence at US launched a new communica- the fi nal step away from the routine new role of director of fi nance. She Foods. This is the company’s third tion campaign for its POMI brand use of any antibiotics in its chicken will report directly to Jörg Riboni, recognition in the past four years. of Italian tomatoes. The televi- production by eliminating all use of CFO of the Emmi Group, with a More than 60 divisions and support sion commercials and digital ads animal-only antibiotics. This comes dotted line to Tim Omer, president offi ces take part in the voting pro- will emphasize sustainability and two years after Perdue became the and managing director of Emmi cess. The company was chosen as agricultural practices for the non- fi rst major poultry company to stop Roth USA. Sagona joined Emmi the top grocery supplier based on GMO products that are packed in routinely giving its chickens antibi- Roth USA as senior controller in variety of metrics, including sales BPA-free boxes. Most products otics also used in human medicine. April 2015. She was formerly con- growth, gross margin improve- are kosher and gluten free certifi ed, The improvements in animal hus- troller for American Construction ment, merchandising support, containing only tomatoes. bandry that support no antibiotics Metals (ACM), the manufacturing customer support, product quality, www.pomi.us.com production are also part of Perdue’s division of ABC Supply Co. divisional sales support, exclusive Commitments to Animal Care. us.emmi.com brands and logistics. www.perduefarms.com www.winonafoods.com

NEW PRODUCTS

BALANCING PRODUCT PACKAGING ALL NATURAL LIGHTLY BAKED CHEESE BREAKFAST UNVEILED FLATBREAD Lotito Foods, Edison, NJ, has Melanie’s Medleys, Schwenksville, Excelsior Technologies, Flintshire, Kangaroo Brands, Inc., Milwaukee, introduced its Folios line of lightly PA, has introduced a new line UK, is launching a series of new fresh WI, has introduced All-Natural baked cheese sheets made from of artisan grain breakfast bowls produce packaging solutions. Its Flatbread Pocket Bread, available Parmesan, Cheddar or Jarlsberg. and handcrafted cream cheeses. new products include Snack&Go, in White and Whole Wheat variet- The carb- and gluten-free prod- Blended in small batches with an environmentally-friendly pouch ies. Launched by the brand behind uct is high in protein and made fresh non-GMO ingredients, the design; PouchFresh, with a grab- delivering healthier bread alter- of all-natural part skim cheese. ready-to-eat breakfast bowls are and-go handle and re-close clip; natives, this new product is for A four-count pack is available as made with whole artisan grains, CookFresh, which features consumers seeking all-natural food well as 10 packs and cases of 12 fruit, nuts and other ingredients. SteamFast valve technology to options. for foodservice. The sheets can be The clean-label cream cheeses cook in the pack; PeelFresh, a range www.KangarooBreads.com crisped in the microwave or oven are blended in small batches daily of lidding products for retail trays; and crumbled for use on salads and without the use of mechanical Lunch&Go for food-to-go count- soups or eaten alone. separation. ers with CookTECH technology; www.lotitofoods.com www.melaniesmedleys.com and Grab&Go, for portable snacking solutions. www.exceltechuk.com

DELI WATCH is a regular feature of Deli Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Editor, DELI BUSINESS, P.O. Box 810217 • Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • Email: [email protected]

6 DELI BUSINESS DEC/JAN 2017

DB Watch.indd 1 12/21/16 6:01 PM Transitions NEW PRODUCTS

NEW CONTAINERS A NATURAL HAM SIX NEW STOCK SOUPS ZIP TOP PACK LAUNCHED Paris Gourmet, Carlstadt, NJ , has Fortun Foods, Kirkland WA, has Growers Express, Salinas, CA, has Sabert Corp., Sayreville, NJ, has debuted Jambon Maison Natural introduced six soup fl avors that are introduced Caulifl ower Crumbles, launched a new line of clear deli Ham from France. Seasoned with frozen for foodservice programs. a consistent chop size and blend containers for cold salads and soup. a sweet fi nish, the line is produced Flavors include Potato & Bacon, with uniform texture. The washed These are available in 8-, 12-, 16-, from antibiotic-free pigs and hor- Cheddar & Broccoli, Classic and recipe ready product can be 24- and 32-ounce sizes with three mone-free pork, with no added Vegetable Beef & Barley, Azteca roasted, baked, sautéed, steamed lid types to choose from. The nitrates or nitrites. The ham also Chicken & Rice, Minestrone and and mashed. It is gluten-free, paleo- company has also introduced a has no artifi cial coloring and is glu- New England Chowder. The friendly and can be included in side 35-ounce clear tamper-resistant ten free. It is produced using high soups, created with fresh vegeta- dishes, salads, pizza crusts and container with four compartments. pressure pasteurization and no bles and homemade stocks, contain desserts. The zip top package fea- The line is part of the company’s water is used. no added preservatives or artifi - tures a steam in pack option, which Cold Collection. www.parisgourmet.com cial fl avors, MSGs or trans-fat and ensures fresh-cooked caulifl ower in www.sabert.com some options are gluten free. The four minutes. line will be offered in 4-pound pack- www.GrowersExpress.com ages that yield 1 gallon of soup per package. www.fortunfoods.com

DEC/JAN 2017 DELI BUSINESS 7

DB Watch.indd 2 12/21/16 6:01 PM FROM THE EDITOR’S DESK LOOMING THREATS TO SUPERMARKET DELIS or the deli foodservice department in has led to rationalizing SKUs, reducing spending on American supermarkets, 2017 stands to service and devoting more shelf space to private be the year when the proverbial irresist- label grocery items. At the same time, the traditional ible force slams right against the proverbial approach to fighting Wal-Mart and similar operations immovable object. has been to emphasize service, organic, local, etc. On the one hand, we live in an age when the And every retailer now feels they need to offer some Fease of online purchases threatens to be the straw sort of online option, which may hold business, but that breaks the back of the conventional supermar- even if successful, may not retain shopping trips. ket. Following decades of growth of supercenters Service departments – so absolutely vital to dis- and warehouse club stores, online retailing makes tinguish retailers from one another – are vulnerable the center store seem increasingly untenable – a kind to this evolving retail environment. Fresh food oper- By of black hole at the heart of traditional food retailing, ations need velocity and variety to offer an appealing Jim Prevor gradually sucking life from the concept and leading option to consumers and avoid excessive shrink. Editor-in-Chef brick-and-mortar stores to not merely emphasize Small drops in shopper visits, leading to small drops fresh but to become a newer more upscale creation. in purchases have big impacts here. A retailer starts This newer upscale creation is represented by an out with a nice appealing offer of 20 different pre- amalgam of fresh foods and culinary technique, a pared food options, then sales decline and the store hybrid between retail and restaurant… and all of this drops the five lowest selling options to keep freshness points to higher price points, larger fresh assortments up and reduce shrink. But the new assortment is less and more service. interesting to consumers and makes the store less of a Yet, 2017 is also the year that Lidl will begin its destination for prepared foods and a kind of disastrous rollout across America. Paired with the uber-growth cycle begins. Sales drop, so they cut assortment to 10 of Aldi – America’s fastest-growing food retailer – in items, which further reduces the appeal of the offer, 2016, Lidl and Aldi will be a one-two punch, causing so they cut to eight and, before you know it – it is just the threat posed by the discount sector to dominate a store that sells some fresh lasagna. industry discussions. On the producer side of the industry, the good In the UK, the market has hit a kind of psycho- news is consumers are likely to eat as much as ever, logical teetering point, where discount retailers have so the imperative is for producers to make sure their stopped being a special sector for people of a lower marketing efforts are aligned with consumer pur- income or on a tight budget, but, instead, have chase behavior. Total sales may not be a good guide, become an integrated part of food shopping for cus- especially if those sales are concentrated in declining tomers of all types. The US Lidl stores, drawing on segments, where they could disappear very quickly. new store concepts the company has unveiled in The question is: Do you have a focus on dollar stores the UK and Ireland, are very likely to make discount or a focus on online services, etc., etc.? shopping par for the course for all shoppers. For retailers, the challenge is that you can’t expect The threat to deli departments at traditional old, one-size-fits-all concepts to sustain you in the supermarkets is two-fold. The first threat is the most years ahead. Do you have a competitive online offer? obvious: Direct loss of sales, with packaged deli prod- Do you have a terrific small store concept? Are you ucts sold through Lidl and Aldi, representing a loss in focused on offering banners and services that com- product sales to conventional supermarkets. pete effectively with discount operators such as Lidl The second threat is more subtle: If shoppers and Aldi, with epicurean approaches such as Trader reduce their frequency of visits to their neighbor- Joe’s, with health-oriented concepts such as Whole hood supermarket because they now visit a deep Foods, and on and on with warehouse clubs, dollar discounter once or twice a month, that means a loss stores, restaurant delivery and takeout, etc.? of all the impulse sales that would have been done had There is nothing shocking here. The industry has consumers been in their neighborhood supermarkets. been talking about these issues for decades. But Where are these impulse sales greatest? Well, timing is everything, and with Amazon Fresh having specifically, in the high service foodservice categories moved out of its Seattle test market, and Lidl about where hungry consumers get wowed by enticing dis- to begin its rollout, this will be the year many deci- plays, lots of food bars of different sorts and fantastic sions will be moved to the front burner. aromas and flavors of in-store cooking. In the end, consumers will be better served When you add in consumer defections due to and will eat more wonderful deli products, but the Internet shopping, conventional supermarkets really collateral damage to many producing companies do find themselves between a rock and a hard place. and retailers, companies unable to adapt, will After all, the focus on competing with discounters be substantial. DB

8 DELI BUSINESS DEC/JAN 2017

Jim Column.indd 1 12/20/16 10:04 AM Blount.indd 1 11/10/16 8:15 AM PUBLISHER’S INSIGHTS A NEW FOCUS ON INGREDIENTS

hile the past 20 years have been because of the ingredients on the plate. devoted to mastering the art of din- For the deli department, prepared foods will ing out, there seems to be a new continue to dominate but only if the ingredient movement afloat – the new art of labels are clean and free of artificial flavors, colors Weating at home. This is certainly a departure from and trans-fats. Consumers are looking for fewer 50 years ago, when cooking was part of the house- ingredients — ingredients they can easily recognize wife’s triad – cooking, cleaning and laundry – and from their own pantries. viewed, for the most part, as drudgery. Today’s Retailers have seen huge increases in cer- new home cuisine is about simple and enjoyable tain categories, spurred on by new products and options. increasing variety. Specialty cheese may be the Cooking from scratch at home is still popular, best example. From a self-service case with under By but it has become cooking for a special occasion 50 varieties, specialty cheese has evolved into Lee Smith or, for some people, an actual passion. The aver- its own sub-department in many stores. High- Publisher age household relies more on fresh and frozen pre- volume and specialty retailers often have cheese pared foods, take-out, delivery options and fast as a separate department with its own buyers and casual restaurants. Convenience stores and fast merchandisers. food restaurants are now the norm for meals on Salami is another example that has moved from the run. Supermarkets have seen the deli depart- a slow-selling, stagnant category to an explosion of ment increase its share of sales and the best have SKUs and increased sales. High-quality and arti- become a mecca for prepared foods. Be it rotisserie sanal deli meats are also pulling sales up. Often, and fried chicken, sandwiches, salads, soups and these are stand-alone products and typically the entrees, delis have emerged to deliver high-quality highlight of the meal. foods perfect for time-starved households. Two- Olives, antipasti, fresh pasta and other ingre- income families, long commuting times, kids’ activ- dients are also seeing increased exposure. Why? ities and easy availability have added to the desire Traditionally, these were all ingredients in meals to get someone else to do the cooking. and entrees. Cheese and high-quality meats were How will the consumers’ preferences continue key ingredients in party platters and entertaining. to evolve? One thing is for sure, nothing stays the Now? An increase in casual get togethers doesn’t same and everyone is competing with one another. explain the explosion in sales. Whether it is fast food or fine dining, farmers’ mar- There is a changing pattern of use. Spurred on kets or farms, Amazon, mail order or home deliv- by creative chefs who are enjoying simple quality ery, options will continue to grow. Methods of ingredients, consumers are seeing the possibilities delivery will change and so will the food, but there of a quick dinner of salami, a chunk of amazing are some changes that can be predicted right now. cheese, maybe some dried fruit and olives. Look for ingredients to set the stage. It doesn’t Pasta with butter and grated cheese served make any difference whether people are buying with a salad is also a delicious 10 minute dinner. food that is fully prepared, ready to heat and eat, Not only is it easy, but also the variety is endless or whether they are doing the cooking themselves. from different pastas and cheeses to added ingre- What has changed is the menu. A logical progres- dients such as sun-dried tomatoes, chopped pista- sion from recipes to concern about quality, peo- chios, fresh vegetables or prosciutto. ple are finding themselves craving simpler foods. The best delis will not only be concentrating on Higher quality is what people are looking for and prepared food, but also options for customers look- chefs have introduced clean, simple meals that sat- ing to stock their own pantries with ingredients for isfy not because of complicated techniques, but simple yet satisfying meals. DB

10 DELI BUSINESS DEC/JAN 2017

Lee Column.indd 1 12/22/16 10:01 AM Atlanta Foods.indd 1 12/14/16 4:28 PM COVER STORY

Retail Trends For Today’s Delis

Creative foodservice offerings, healthful fare and natural selections help supermarkets compete BY LISA WHITE

f there were one word that could be used to research shows sales of freshly prepared foods at grocery retail describe today’s supermarket deli trends, it would outpaced growth trends in grocery overall as well as foodservice. most likely be ‘fresh.’ But this aspect of the department isn’t the only revenue driver. This not only encompasses deli departments’ The New York-based Private Label Manufacturer’s Association’s prepared food offerings, but also how this key (PLMA) Private Label Yearbook reports store brands also are bur- Isection of the store is now perceived. geoning in supermarket delis. According to the Madison, WI-based International Dairy- Sales of these products reached $118.4 billion in 2015, an all- Deli-Bakery Association’s (IDDBA) 2017 What’s In Store report, time record and an increase of $2.2 billion over the previous year, better efficiency in managing shrink and increased awareness of reports PLMA. Store brands’ dollar share came to 17.7 percent, freshness perceptions have played an important part in bumping also the highest mark ever. up deli margins. Not only does the report reveal deli is the fastest growing Influencing Trends perimeter department, but the main growth driver, prepared food, There are a number of lifestyle trends that have been impact- accounts for close to 60 percent of this increase. ing the direction of the deli. In the second edition of The Why? Behind the Dine, Acosta For example, IDDBA reports shoppers consider health more

12 DELI BUSINESS DEC/JAN 2017

Cover Story.indd 1 12/21/16 3:43 PM Dietz & Watson.indd 1 12/15/16 3:35 PM often with grocery prepared foods than sales, as these are mostly [centered around] foot-long sandwiches in the deli cases and restaurants, which has led to a growing comfort foods.” now these items are offered in smaller snack demand for healthy prepared food. Ethnic To gain a bigger share of stomach, super- sizes,” says Mahin. “This also decreases cuisine also has become a staple, especially markets also are trying to copy restaurants’ the needed footprint for these items, as deli in the Millennial demographic’s repertoire. bundling effect. retailers only have so much space for snack Also, meal kits offering components for In retail as opposed to foodservice, with items on their shelves. cooking semi-scratch dishes are allowing the myriad of options available, this process deli departments to better tap into con- can be easier, quicker and more affordable. Bold Flavors sumers’ creativity, while satisfying their Consumers also have the ability to custom- Flavors for these products are more need for convenience. ize selections. likely to be bold, with an international bent. Kettle Cuisine, based in Lynn, MA, has “It is simple for consumers to bundle Charlotte, NC-based Stefano Foods, seen continued growth in fresh soup and food and ingredients to make it easier to maker of sandwiches and pizza, also is see- clean labels, as quality continues to be a put meals together at home,” says Shepard. ing increased demand for items with bold key qualifier for consumer purchases. “[In the process,] shoppers will pay more flavors, according to Alan Hamer, the “Today’s consumers are acutely focused for quality but less than eating out.” company’s vice president. on nutritional call outs and options that fit “The biggest thing we’re seeing in [super- “The biggest thing I’m seeing is bold flavors like sriracha and kimchi [a national Korean dish consisting of fermented chili peppers and vegetables, usually based on cabbage],” says Mahin. “Pickles also are a big item.” Noting this trend, the chefs at Kettle Cuisine have launched Harissa Chickpea and Chicken Soup this December, which feature authentic, North-African flavors. “Global foods are influencing soup flavors beyond the traditional favorites,” says Kettle Cuisine’s Seeratt Dutt, product developer. “Millennials are a key driver in this trend, seeking authentic flavors fea- turing spices, herbs and vegetables from around the world.” Ethnic comfort foods with Asian, Italian, Hispanic and Indian influences that require minimal prep and cook time are especially on trend. “Deli departments are trying to balance [their offerings],” says Bob Sewall, executive vice president of sales and marketing at Blount Foods, located in Fall River, MA. “Stores need to offer a little bit of traditional and ethnic foods, which should be a blend of the everyday selection.” their lifestyles — vegetarian, vegan, glu- market deli] foodservice trends is smarter The supermarket’s location will have ten-free and allergen-free claims are all snacking, a demand for cleaner label prod- an impact on offerings and flavor prefer- resonating,” says Julie Clements, senior ucts and more grab-and-go meals,” says ences, with Southwest fare most prevalent director of product development for Kettle Amber Mahin, director of marketing in Texas, for example. Yet, this doesn’t Cuisine. “We see strong sales growth in and merchandising at San Diego-based mean delis cannot step outside the box and all of these dietary categories, especially Monterrey, KeHE’s Fresh Solution. “There experiment. vegan and gluten free. Functional ingredi- was a time when prepared food sections in The days of including rotisserie chicken ents also are [on trend].” delis were small and there weren’t a lot of with traditional mac and cheese on the hot Comfort foods are still a big part of deli options, but now supermarkets are trying bar have passed, as selection and flavor prepared food offerings, and the more tra- to get daily shoppers into the store to buy expectations are greater than ever before. ditional, the better. more snacks and meals.” “Each region has every day offerings Kirkland, WA-based Fortun Foods still These include fresher products that that may mean something to their cus- sees the highest sales for its main soup lines, consumers are demanding as well as tomer base, but above and beyond that it’s including Cheddar Broccoli and Tomato. options for on-the-go snacking, since day about offering something new or different,” “It’s what most people have grown up part meals are less of a factor with the says Sewall. “This includes providing dishes with,” says Mary T. Shepard, director of younger generation. with authentic ingredients, organic sides sales. “The fancy flavors never hit as far as “For example, five years ago we’d see and lower calorie counts for women and

14 DELI BUSINESS DEC/JAN 2017

Cover Story.indd 2 12/21/16 3:31 PM POMI.indd 1 12/15/16 2:53 PM The days of simply including rotisserie than 1,800 shoppers age 20 to 29 revealed millennials want food done their way. Fresh chicken with traditional mac and and healthy foods are at the top of their shopping lists, while prepared and portable cheese on the hot bar have passed, foods are also popular. as selection and flavor expectations Health & Wellness For Millennials, eating is largely are greater than ever before. unscheduled, according to PLMA’s latest report How America’s Eating Habits Are millennials seeking healthier options.” and customers to better connect to the Changing. These consumers incorporate This better-for-you-food requires call- store.” food consumption, whether meals, snacks outs and signage for stores to take full There also is a continued push for hot or bites, into a range of everyday activities. advantage of the marketing potential, bars, which have allowed retailers to better “Millennials are seeking fresh foods whether items are organic, gluten free or compete with restaurants. in smaller portions,” says KeHE’s Fresh made with functional ingredients. “People are either going to buy prepared Solution’s Mahin. “Stores are capitalizing “Retail specialty products are going foods and take it home or eat out, that’s on being a daily destination for snacks and from 12 packs to six packs to make it easier really what’s driving the excitement around meals, while also experimenting more with for pack out,” says Weyd Harris, national fresh prepared foods in supermarkets,” says theater merchandising.” sales manager at Conroy Foods, headquar- Sewall. “Due to the increased labor, equip- This includes offering cooking classes, tered in Pittsburgh. ment and time, stores are seeking more providing demos and including literature Along with smaller sizes, cleaner label- meal solutions for hot bars, and that has next to food items that educate consum- ing is more prevalent with regard to been our focus.” ers on the item’s origin, healthful attributes ingredients. These trends are impacted by the differ- and flavor. “Consumers also are interested in ent demographic segments, none probably “One of the most significant trends in knowing the proteins they are eating are moreso than the Millennials. Consumers retail history is the shifting away from three from animals raised on a vegetarian diet are increasingly drawn to retail prepared meals a day eating to something incorrectly without the use of antibiotics or growth foods, according to the IDDBA report. In described as snacking,” says Brian Sharoff, hormones,” says Sandy Rega, Kettle fact, compared with two years ago, 34 per- PLMA’s president. “Part of this is the emer- Cuisine’s senior director of marketing. cent of consumers overall and 46 percent gence of Millennials, but also at the same In addition, today’s shoppers are looking of Millennials consider this fresh depart- time a change in lifestyle for people.” for user-friendly, resealable packaging for ment to be more of a destination. This raises the question of whether both convenience as well as sustainability. PLMA’s nationwide survey of more consumers will be spending more time at

Packaging Trends For its retail and foodservice soup lines, Fortun Foods offers a bag of soup that doesn’t include plastic or cardboard. The emphasis of this family pack is on convenience as well as clean packaging. “The next big packaging trend is recy- clables, since less is more,” says Mahin. Convenience also is key. Stefano Foods has recently introduced a line of bakable tray items with packaging that encourages consumers to use ovens rather than micro- waves to reheat its calzones, stromboli and panini lines. Along with sustainable packaging, trends related to grocerants, combining grocery stores and restaurants, also have become more predominant. These include sit down dining areas in the deli or supermarket, which encourage shoppers to linger and provide the opportunity for stores to increase basket rings. “More retailers have in-store seating, where consumers can have lunch or a snack,” says Mahin. “This allows the deli staff to become more familiar with people,

16 DELI BUSINESS DEC/JAN 2017

Cover Story.indd 3 12/21/16 3:31 PM Saputo.indd 1 11/15/16 4:39 PM supermarket hot and cold food counters “The great thing about Millennials is by Millennials. than in the past. they will take the recommendation off “To this demographic, cooking is putting PLMA’s study found millions under the a social media platform and try anything ingredients together, rather than creating age of 35 will be obtaining meals at super- once,” says Seeger at Kettle Cuisine. “This a meal from scratch,” says Fortun Foods’ market deli hot food counters. requires us to constantly monitor the Shepard. “For this reason, delis need to be It’s no longer a question of whether peo- latest both in the restaurant space, and innovative and market items properly to ple are eating out, but rather how they are with the power of social networking, the capture more market share.” eating. This means it’s more important than flavors and ingredients that are currently ever for delis to not only offer the types of trending around the world.” The Impact items shoppers are seeking, but also to let One ongoing trend is restaurant-qual- The emergence of these trends are people know what’s available. ity fare at the store level, which is driven transforming the landscape of today’s supermarket delis. Part of the revitalization of deli requires the department to have a greater presence around the store, according to IDDBA’s What’s In Store report. “In terms of day-to-day operations, there is more demand for theater, which means stores need more labor at a time when this is decreasing,” says Mahin. “Due to the low margins in prepared foods, retail chains will have us pay an additional 3 to 5 percent to merchandise in the store.” Along with interactive merchandising and innovative marketing, the impetus on deli departments is to make sure products outperform comparable items found in other parts of the store. “We may not be the only pizza in the store, but the deli needs to offer the best pizza,” says Stefano Foods’ Hamer. Technology also is going to play a larger role in the years ahead, presenting even bigger challenges, but also providing potential revenue drivers. “[For example,] while delivery services such as Seamless have made a name for themselves these last few years, big name companies such as Amazon, Google and Uber have made a push into the food delivery market,” says Seeratt Dutt, Kettle Cuisine’s product developer. Retailers can leverage all of these trends by reviewing the department’s offerings in relation to a store’s demographic, while also keeping an eye on both marketing and merchandising. Questions to ask include: “Are there gluten free options?”; “Is the deli vegetarian and vegan friendly?”; “Are healthier options called out?”; and “Is the hot bar plentiful, fresh and rotated frequently?” “Retailers can better compete with restaurants on lunch and supper purchases if their flavors are compelling and of the best quality,” says Clements. Retailers that stay current with the trends, including flavors, ingredients and dietary preferences, will have a leg up on the competition, including restaurants. DB

18 DELI BUSINESS DEC/JAN 2017

Cover Story.indd 4 12/21/16 3:31 PM Wild Planet.indd 1 12/15/16 2:45 PM FEATURE Flatbreads On TheRISE

Expanding the selection increases sales BY BOB JOHNSON

s many new customers have yet to be introduced breaking bread and dipping. The richer, more wholesome fl avor to fl atbreads and many familiar consumers have yet and texture makes it the perfect base for tossing on healthy veg- to learn all the ways these products can be used, gies and deli meats, or to use for pizzas. This product makes great there is still tremendous room for growth. fruit tarts toasted up with some cinnamon and sugar and then Retailers can take advantage of this opportunity topped with fresh fruit.” Aby carrying a variety of products, and displaying fl atbreads in ways “Another growing ethnic bread, which we introduced recently, that draw attention to the many uses. is Markouk, an unleavened fl atbread popular in the Middle East,” “Flatbreads are versatile and can be used as a carrier cracker, says Toufayan. “While it has many of the same appeals of pita a bread alternative, a snack cracker and even a pizza crust,” says bread, it is much larger and ultra-thin, almost translucent. It has Jenni Bonsignore, marketing manager at Valley Lahvosh, Fresno, only 35 calories per serving, which is highly appealing to many CA. “Some of the trends that tie-in with fl atbread are ethnic cui- segments of the general population.” sine, Middle Eastern, ethnic dips and Mediterranean.” The expansion of different styles of fl atbreads are exploding in the marketplace. Show Many Breads “We have new items,” says Warren Stoll, marketing director An exciting aspect of this category’s versatility is the number at Kontos Foods, Paterson, NJ. “We make a 7-inch pocket pita of unique products that come from different parts of the world. fl atbread that is our vanilla ice cream, but we have about 50 fl at- “Many ethnic breads have become popular and are broadly breads in our line. We have some that are for the Indian culture, appealing,” says Karen Toufayan, vice president of marketing but mainstream consumers like them. The Indian culture uses this and sales at Toufayan Bakeries, Ridgefi eld, NJ. “The Indian naan bread almost like a spoon or fork to pick up the food. We offer one bread is a great example of an ethnic bread that has become so piece or a top and bottom. We sell the bread with the grill marks popular, it’s even sold in Costco and Trader Joe’s.” on it for making paninis.” The company is developing an organic version of naan in both With the wide range of interesting varieties available, merchan- regular and garlic varieties to combine the ethnic appeal for more dising the category begins with increasing the selection beyond health-conscious consumers. pita breads and showing customers the possible uses. The East Indian fl atbreads, in particular, have textures and fl a- “Flatbreads are here to stay, and will continue to be used vors that are gaining favor with the mainstream. for a variety of offerings, such as wraps and roll-ups with thin “Tandoori-style naan is a popular variety,” says Leigh fl atbreads, fold over panini-style sandwiches with conven- Thornberry, director of marketing at Kangaroo Brands, tional fl atbreads, pizza crusts; chips/wedges for dips; etc.,” says Milwaukee, WI. “It’s good on its own, warmed up, great for just David Mafoud, principal and third generation baker at Damascus

20 DELI BUSINESS DEC/JAN 2017

FlatBread.indd 1 12/14/16 1:36 PM La Panzanella.indd 1 11/10/16 8:57 AM “We are hearing from health-conscious consumers, who are looking for a lighter carb bread alternative as a base for fresher cooking,” says Thornberry. “Moms enjoy using these items to get kids involved in cooking. Each flatbread can be made up as personal wraps or personal pizzas, and kids can add what they like.” These products lend themselves to the culinary creativity that is in vogue with the younger generation of foodies. “Millennials are embracing flatbreads,” says Thornberry. “Rather than picking up pre-made sandwiches or frozen pizzas, millennials are grabbing up fresh ingredients. These consumers embrace the food-making experience.” It’s possible to think in terms of a lower carb, lower calorie, healthier alternative pizza. “Our customers are the culinary ‘foodies’, as well as those who tend to eat lean or think thin,” says Mafoud. “Grandparents PHOTO COURTESY O VALLEY LAHVOSH relish a good old fashioned delicious sand- Bakeries, Brooklyn, NY. “We see retailers kinds of ideas. Cookbook displays, web- wich; young kids are always fascinated marketing our Brooklyn Bred Flatbreads site URLs to find more recipes, and pairing with novelty. And, of course, everybody in new ways, many aimed at appetizing flatbreads with partner foods like hummus loves a good pizza, right?” and/or entertaining platters.” and cheeses drive trial and encourage use.” There are newer products specifically The line can be part of a muffaletta There is even room for in-store demon- intended to take the healthy aspect to platter on a potato bistro bun, a chicken strations to show its versatility. entirely new levels. artichoke ancient grain flatbread sand- “Demonstrating the versatility of flat- “As in many categories, consumers are wich, a meatball-pesto thin crust pizza or, breads, the new healthier options and the more focused on eating healthier, but not more simply, a chicken garden flax wrap. new ethnic varieties that add a variety of sacrificing taste,” says Toufayan. “The “With the trend to add breakfast tastes and textures are the most effective flatbread category is no exception. What options in the deli, we see scrambles on ways of encouraging the growth of this we are seeing is a trend toward healthier. top of flatbreads, spinach topped with category,” says Toufayan. That’s why, in the past year, we’ve intro- sunny-side up or poached eggs,” says Retailers can also simply let people see duced a line of gluten free wraps. We also Thornberry. “Also, flatbread tarts are pop- how to use the products without devoting have introduced non-GMO certified ver- ular. Rather than using cookie dough or the time and product it takes to demo or sions of a number of our products.” other high-fat bases, consumers are grab- sample. In addition, the company is introduc- bing a light and healthy flatbread, topping “The deli can merchandise by exam- ing organic versions of its most popular it with yogurt and layering on fresh fruit.” ple,” says Stoll. “You don’t necessarily flatbreads, including whole wheat pitas, Because there are so many possible have to sample, but instead put a few smart pockets and wraps.” uses that many consumers are not aware sandwiches on display. We also have Toufayan is also working with flour of, retailers should take an active role in self-standing shippers. One of them has milled in a way to increase the breads’’ educating shoppers about options. cocktail flatbreads that are only 2 inches, nutritional value. “As with any product, the consumer and another has pizza flatbreads. The uses “To add to the healthful images of wants to know how to use it,” says are obvious.” these products, this line is made with Bonsignore.“Delis need to provide recipes sprouted whole wheat, which uses and product demos that give their cus- Healthy, Interesting Options flour milled from wheat berries that have tomers easy meal suggestions and product Flatbreads are expected to keep growing been allowed to sprout before being stone pairings.” because these products fit many of the ground milled into flour. This results in a The possibilities are so varied that it megatrends that are here to stay – breads particularly healthy wheat flour and also helps to offer recipes in as many ways are interesting, convenient and nutritious. adds an even deeper, richer taste [to the as possible, such as through signage, the “The category continues to grow, as bread],” says Toufayan. internet or social media. consumers seek more interesting, versa- The continuing trend toward healthier “We are seeing an explosion of flat- tile, flavorful and easy-to-prepare meals eating will do nothing but increase interest bread recipes online with all the popular and on-the-go options,” says Toufayan. in flatbreads. recipe sites,” says Thornberry. “They are Virtually all flatbreads have lower carbs “I believe the category is gaining a great, healthy platform for mixing up all than conventional bread alternatives. momentum,” says Thornberry. “DB

22 DELI BUSINESS DEC/JAN 2017

FlatBread.indd 2 12/14/16 1:37 PM European Union.indd 1 11/10/16 8:54 AM MERCHANDISING REVIEW

Upping The Ante On Dips And Spreads

Consumers are moving beyond the traditional ﬂ avors and varieties BY BARRY SPARKS

mericans are snacking more spreads has changed over the years. These an increase of 7.4 percent over 2012 sales, than ever, yet they want to items are no longer just relegated to party according to Mintel, a London-based mar- eat healthier and enjoy a platters or sandwich condiments, but also ket intelligence agency. wide variety of bold and are considered as everyday snacks or pre- savory fl avors. This com- meal options. Hummus Racks Up Sales Abination is fueling the sales of dips and A casual, pre-dinner meal is now routine Hummus, made with smashed chick- spreads, which include hummus, salsa, for 78 percent of Americans, according to peas, is a star in the dips and spreads guacamole, yogurt-based and nut-based a study conducted by Wakefi eld Research category. Traditional hummus combines products and more. for Sabra Dipping Co., headquartered in ground chickpeas with spices, olive oil, According to Nielsen, a global informa- White Plains, N.Y. lemon juice and garlic. It also can be mixed tion and measurement company based in “This often happens around the kitchen with many other ingredients. New York, NY, retail sales data for 2014 counter, maybe even while standing,” says Hummus is nutritious, tasty and comes show that snacking accounts for $124 bil- Eric Greifenberger of Sabra. “We’re calling in a variety of fl avors, making it popu- lion in North America. this the Unoffi cial Meal. We believe Sabra lar with consumers. The Mediterranean Flavors of North America International and healthy dips and spreads in general favorite generated nearly $700 million in (FONA), located in Geneva, IL, reports have transformed what was late afternoon United States retail sales in 2014, accord- the salty snacks and chip market is fore- mindless snacking into a more mindful and ing to Statista, a leading statistics company casted to increase 31 percent by 2018. This nourishing, fresh way of connecting and based in New York, NY. bodes well for the dips and spreads market. eating food.” “I think consumers have responded Consumers’ perception of dips and Dips sales reached $1.3 billion in 2014, to hummus’ perceived healthfulness, its

24 DELI BUSINESS DEC/JAN 2017

Dips & Spreads.indd 1 12/22/16 3:47 PM Yucatan.indd 1 11/10/16 9:26 AM satisfy the cravings of consumers looking beyond the traditional sour cream, French onion and vegetable dips and nut Dips and spreads are typically great or cheese-based spreads. “Sriracha continues to be very popu- sources of protein, which is valued lar,” says John Becker of Sandridge Food Corp., a Medina, Ohio-based company. by health-conscious Millennials, Baby “In fact, spicy dips have now surpassed mild-flavored dips on restaurant menus. Boomers, vegetarians and vegans. Other Asian spices, such as Thai sweet chilies, are on the rise. Bacon as a flavoring continues to see growth. And, there are simple preparation and almost ubiqui- Hummus is particularly popular with plenty of citrus-style offerings.” tous availability,” comments Nathan Roe Millennials, according to a recent Mintel Many of the flavor profiles are also on of Reser’s Fine Foods Inc., a Beaverton, report. Forty-three percent of consumers trend, driving usage and experimentation. OR-based company. purchased hummus during the six months Roe says, “Newer and trending The Moscow, ID-based USA Pea ending October 2014. Of the consumers Mediterranean taste profiles, including mint & Lentil Council reports hummus sales surveyed, 54 percent of Millennials had and fennel, as well as Southern-inspired barely topped $5 million 20 years ago. purchased the product, the highest per- flavors, such as pimento, have found their Today, it’s estimated that 25 percent of centage of any age demographic. way into more mainstream products. American homes stock hummus in the “Millennials love the fun and unique Other popular flavors include artichoke, refrigerator. hummus flavors,” says Tsakirellis “It is a spinach, peppers and all kinds of cheeses.” Aimee Tsakirellis of Cedar’s way for them to be indulgent, but still feel Brands also are mixing flavor profiles to Mediterranean Foods Inc., based in Ward good about healthy eating.” create even more unique flavors. Hill, MA, says, “Hummus’ popularity has Cedar’s Mediterranean Foods recently very much been driven by its unique fla- Endless Flavors introduced pineapple jalapeno and organic vor profiles. With so many different size One of the reasons behind the explod- lemon cayenne flavored hummus. Other options and flavor options, the sky is the ing popularity of dips and spreads is the examples of unique flavor combinations limit for this ever-growing food.” almost endless variety of flavors that help being marketed include raspberry chipo-

26 DELI BUSINESS DEC/JAN 2017

Dips & Spreads.indd 2 12/22/16 9:54 AM tle, Buffalo sauce, caramel and chili pepper Healthy Grab And Go sources of protein, which is valued by and blueberry and whiskey. Dips and spreads’ role in America’s health-conscious Millennials, Baby “Consumers are more educated than snacking habit is reflected by packaging Boomers, vegetarians and vegans. ever, and they have a wider palate,” says innovations that have made them a grab- “We know 49 percent of Americans eat AnnMarie Kraszewski of St. Francis, and-go and individual serving item. They a sandwich every day,” says Greifenberger. WI-based WIXON, Inc. “They are look- often come with mini crackers or pretzel “With so many delicious sandwich ideas ing for more flavors, more protein and chips, ideal for dipping and lunch boxes. online, consumers are adding delicious clean labels.” “Grab-and-go items are still increasing,” and better-for-you condiment, fixings and According to Packaged Facts, a com- says Tsakirellis. “They are a convenient breads.” pany located in Rockville, MD, 53 percent snack, condiment substitution or meal Based on these insights, Sabra recently of consumers are seeking bolder flavors as replacement when paired with other items. introduced Sabra Spreads, which have 75 well as a wider variety of cheeses in dips Moms love grab-and-go dips and spreads percent less fat than mayo. The condiment and spreads. Blue cheese and feta are because these are healthy options, and it’s comes in a convenient, squeezable bottle in encroaching on cheddar’s stronghold. an easy, convenient way to get their kids three flavors—garlic herb, honey mustard, “Cooking shows, restaurants and social to eat healthy.” and sea salt and cracked pepper. media are having an impact on consum- In addition to an increased role in ers’ interest in trying new flavors,” says snacking, dips and spreads are being used Grabbing Attention Luke Buholzer of Klondike Cheese Co., more frequently as substitute ingredients With the demand for dips and spreads headquartered in Monroe, WI. “They are in cooking recipes. As companies and still increasing, what is the best way to starting to embrace different and bolder individuals post more online recipes, con- merchandise the products? flavors.” sumers become more aware of different Traditionally, retailers merchandise Besides unique flavors, dips and spreads ways to use the products they know and them alongside complimentary items. are no longer just purees. like, just in a different way. From pretzels, crackers or pita chips to “Corn, black beans and fruit are add- Sandwich use is another growth area. serving dishes, garnishes and even wine ing bulk to dips and spreads,” says Becker. Supermarket delis with sandwich pro- or beer, creating a separate display will “There is also a continued focus on veg- grams can promote sandwich ideas, as grab the shopper’s attention and promote etarian and vegan consumers, who are well as offer recipes for sandwiches cus- impulse sales, says Becker. always looking for a good source of protein tomers can make at home. He suggests creating a dedicated in order to meet their nutritional needs.” These products are typically great entertainment section in the department.

DEC/JAN 2017 DELI BUSINESS 27

Dips & Spreads.indd 3 12/22/16 9:54 AM Buffalo Chicken dip is a great tailgating containers, helps consumers make quick cheeses and fruit spreads and dips that can option and upscale seafood dips can be choices in the store to guarantee appetizer be warmed, says Roe. paired with imported meats and cheeses. and pre-meal snacking is covered.” Retailers should be aware of the many Retailers also can work with other store Greifenberger points out that more snacking formats during the holidays and departments for pairing ideas. than 40 million Americans travel for strive to offer items for each need. “We have a retail partner who demos Thanksgiving and the holidays. This is “Besides the traditional large family a cheese spread as a topping for grilled an opportunity to offer delicious alterna- gatherings, there are many other entertain- salmon,” says Becker. “Likewise, another tives to typical mindless snacking for the ing opportunities,” Becker says. “A home spread was featured as a topping for burg- on-the-go crowd. party for New Year’s may require a differ- ers. Retailers can talk to meat, seafood Retailers can help give consumers a way ent, more upscale menu, such as shrimp- or and produce departments to come up with to think about spreading joy and hospital- crab-based dips. A football playoff gather- some interesting pairings.” ity by offering fancy bread and complex ing would lean more toward traditional Buholzer advocates letting consumers crackers with seeds and nuts, interesting salsa, hummus and cheese dips.” DB sample the dips and spreads with various deli department items. “In-store demos are the easiest way to get the customer to taste the product,” he says. “It makes it easier for them to try a new flavor and/or combination of a dip or a spread with a cracker or vegetable.” Consumers are becoming more willing to experiment with new flavor profiles. Mintel reports that 34 percent of respon- dents who buy chips or dips purchase new flavors.

Holiday Entertaining How can retailers appeal to customers who are focused on family gatherings and entertaining friends, co-workers and relatives? “The holiday season is all about the options for easy holiday entertaining and for all those unofficial meals that get you through the busy time period,” says Greifenberger. “Providing delicious, culinary flavor varieties, including limited edition flavors in a variety of sizes and

28 DELI BUSINESS DEC/JAN 2017

Dips & Spreads.indd 4 12/22/16 9:55 AM Refrigerated Foods.indd 1 11/10/16 9:24 AM MERCHANDISING REVIEW

Raising The Olive Bar

Simple solutions to keep sales strong BY CHRIS AUMAN

hat does a healthy olive pro- is constantly being challenged to help dising team is traveling the country daily gram in the supermarket deli stores solve the display challenge,” says and training our retailers how to maximize department look like? The Brandon Gross, vice president of market- sales with the right display, maintenance answer: an attractive, clean ing at FOODMatch, based in New York, schedule and product mix,” says Gross. display that is well stocked NY. “Cleanliness is key. Shoppers buy Anthony DiPietro, vice president of Wwith a good mix of olives and antipasti with their eyes fi rst, so if the olive and anti- George DeLallo Co., headquartered in items at the right price. pasti display doesn’t look fresh, consumers Mount Pleasant, PA, has similar advice. Simple yes, but simple still takes com- won’t want to shop it.” This commitment “The most successful retailers are ded- mitment. Olive bars have enjoyed a to cleanliness means dedicating a few min- icated to execution at the store level to growing reputation in deli departments, utes every hour to wipe spills, refi ll and/ ensure that the bar is always clean, full and but when sales fall fl at, it’s time for retailers or stir the product and make sure signage planogrammed correctly,” says DiPietro. to get back to basics. It’s time to raise the remains in place. An attractive bar will sell product, but bar on olives. Cleanliness isn’t the only factor, of that’s not the end of the sales push. Jeffrey course. Gross suggests that displays should Shaw, marketing director for Foods from Displays That Attract be blocked properly to present consumers Spain, headquartered in New York, NY, The fi rst step to attracting busy shop- with a variety of attractive colors, shapes says retailers need to focus on signage that pers is displays. “Our merchandising team and sizes. “Our FOODMatch merchan- is informative and sells the taste appeal of

30 DELI BUSINESS DEC/JAN 2017

Olives.indd 1 12/20/16 4:57 PM The most successful retailers are dedicated to execution at the store level to ensure that the bar is always clean, full and planogrammed correctly. — Anthony DiPietro, George DeLallo Co.

and pitted medleys have been mainstays, ing to DiPietro, “An olive and antipasti but regional varieties such as the Castel- program should be selected on the mer- vetrano from southwestern Sicily, or green its of the product offered by the supplier olives that are grilled after curing, have to include the quality and consistency of gained popularity.” the products’ sensory proﬁ les. From that, While seasonal differences may not have the supplier should be able to guide the much of an impact on consumer choices customer in the setup and operation of a for olives, seasonal antipasti choices can. successful olive and antipasti program from This is why DeLallo partners with retailers store level up, as the appearance of the bar The to create offerings that coincide with sea- and additional displays will be what attract Olive Bar sonal recipes and meal occasions. the customer ﬁ rst, then the quality and Smart choices with antipasti help deli consistency will hold their loyalty and the managers bolster their programs. Accord- creativity of the program will expand usage

olives. “Also, talk about varieties and origin and make it interesting,” he says. “Cross merchandising and not forgetting prepared foods offer a good upside, like tuna salad with olives or precut cheese with olives for a snack tapas pack.”

Fixing The Mix Bars also need to attract shoppers with an enticing variety of olives and antipasti. “Don’t forget to vary up the item selection,” says Gross. “Rotate seasonal items in and out, have at least a 50/50 mix of olives and antipasti and test new items. If shoppers see the same items every time they shop the bar, you risk consumer fatigue.” DiPietro notes that, “Kalamata olives

DEC/JAN 2017 DELI BUSINESS 31

Olives.indd 2 12/21/16 10:22 AM ing money and the consumer doesn’t even know what it is. Take that one out and put Consumers do understand the health in one or more affordable olives or a blend or antipasto item.” Siegel sees this as a way benefits of the Mediterranean diet and to tighten the mix and get the price down. “I don’t see the point of having 40 different retailers should capitalize olives out there. It looks great, but the price is crazy, the shrink is crazy and consumers on that with olives. don’t even know what it is.”

Point Of Sale and drive incremental sales.” Sensible Pricing With the three basics covered, it’s Olive and antipasti bars are no longer an Even attractive displays with great vari- time to educate consumers on the dif- emerging concept in the retail space. This ety need help and smart pricing is also key. ferent varieties, their health benefits and presents a challenge to retailers to keep “Retailers are getting frustrated because the many ways to consume them. “POS things exciting for consumers. As Gross they’re not seeing growth and they’re should be decisive with short and clear says, “For FOODMatch, olive and anti- really starting to second guess their olive messages about health, or innovative pasti bars’ growth has been seen with the program,” says Jeffrey Siegel, president of use and tie-ins with specialty cheese, dry introduction of new/seasonal items, along Farm Ridge Foods, Brooklyn, NY. He has sausage and wine will help drive a whole with consumer takeaways that focus on seen stores replace olives with even more basket purchase.” says Dipietro. recipes, pairing and usage. I also believe antipasti items to keep sales from flat lining. Siegel recognizes the importance of that the bar needs to be positioned to solve Pricing may be part of the problem, but education as well as the desire of consum- a problem. Whether it’s simplifying enter- with a few adjustments, retailers can stabi- ers to learn about each variety, especially taining, providing healthy and prepared lize the program and even see growth. when serving them to friends and fam- snacks or letting you customize founda- “I’ll give you an example,” says Siegel, ily. “Consumers love to know what it is, tions like pasta, greens and grains, retailers “You have a Cerignola olive that comes because olives are a destination at a party.” need to make sure that all demographics of out of Italy going for $4.50 to $5.50 a The Olive Branch uses POS materi- shoppers understand the quality and value pound and the retailer has this blended als to get the message out, as Siegel says, of the olive bar.” into an olive bar at $8.99. So they’re los- “We customize a trifold to exactly what

32 DELI BUSINESS DEC/JAN 2017

Olives.indd 3 12/21/16 10:24 AM the stores carry and then we have free- next great specialty cheese, charcuterie, mendous growth in this line over the past standing education pieces that attack hummus, cracker, pasta, etc. Providing a several years and have had great success three types of olives at a time. We group 360-degree experience for shoppers to find with a variety of SKUs, specifically organic them by olives from France, olives from everything they need—and better yet if olives, as those are not typically found on Greece, olives from Italy—they can be you can curate it and provide pairings—is the olive bar so it provides the consumer stuffed olives, they can be black olives— a sure-fire way to increase sales.” with a unique option.” and every month we feature one, and we Shelf-stable offerings also provide an Sticking to the basics of display, varietal have all the background support.” opportunity for retailers to cross mer- and antipasti mix and pricing that makes The seasonality of olives offers another chandise with deli items, such as cheese, sense, backed by POS educational mate- opportunity to educate consumers. “Think charcuterie, crackers and dips. rials, will help raise the bar on deli olive of olives the same way you would any According to Gross, “We’ve seen tre- programs and keep sales high. DB piece of fresh produce,” says Gross at FOODMatch, “Each varietal has a time of year in which it is planted, harvested, cured and ready to be eaten. Additionally, once the olives are packaged, their flavor, texture and even color will change over the lifespan of a given crop.” Understanding how olives continue to cure to lose bitterness and take on a more fruity and smoky flavor profile, can help move varieties. According to Gross, “Understanding an olive’s seasonality can also influence in-store promotions and seasonal rotation items. We’ve seen great success with retailers who embrace the concept of ‘new crop’ and announce the arrival of a given olive.” The health message is important, too. “We have half the salt level of our com- petitors,” says Siegel. “We worked so hard to do that, but we’ve done a lousy job as a company getting that out. So we’re going to really be supporting that. That’s our fault and the retailer’s fault and you’re going to see a shift in that now. Consumers know intuitively that the Mediterranean diet is healthy, there’s no gluten, they buy it.” Consumers do understand the health benefits of the Mediterranean diet, and retailers should capitalize on that with olives. “One trend that we have really taken seriously is the consumer’s desire for healthy and flavorful snacks, appetizers and small-bites,” says Gross. “Olives and antipasti have always fallen into this category, but we’ve been taking it a step further by developing products like our Calabrese Antipasto Salad that features Greek varietal olives, such as Kalamata and Mt. Athos, along with cubed Asiago and Cal- abrese salami. We’re essentially creating the antipasti platter for the consumer and allowing them to bring it home and serve.” “Cross merchandising continues to be a huge growth driver,” says Gross. “The olive and antipasti shopper is one-in-the- same, with shoppers wanting to find the

DEC/JAN 2017 DELI BUSINESS 33

Olives.indd 4 12/20/16 4:58 PM CHEESE CORNER Blue Cheese Sales Are On The Upswing

A look at why delis are stocking more unique varieties BY KEITH LORIA

lue cheese is a distinctive vari- That’s why it’s vital for delis to offer hold steady year over year within the retail ety that some people are afraid samples and let customers taste the differ- category, and the company expects con- to try. However once tasted, ence for themselves. tinued growth moving forward. consumers are surprised at how “The more samples, varied uses and “Retailers have become very tactical in complex the cheese is and how ideas retailers can give consumers, the allocating appropriate space in each case, Bwell the unique fl avor compliments a vari- more it will ease their fears and give them since every item is renting a spot; if it is not ety of dishes. a chance to show off as cheese afi ciona- paying for its space in the form of sales, the “Food lovers are seeking bolder fl a- dos,” says Margi Gunter, brand manager product is replaced,” he says. “Samples are vors and more pairing combinations, for Litehouse Foods, headquartered in essential in understanding the fl avor cus- and blue cheese is perfect for this,” says Sandpoint, ID. “In the artisan cheese tomers are seeking; however, it can be Francis Plowman, marketing director of world, customers want to know who diffi cult to sample every item.” Rogue Creamery, based in Central Point, makes these products as well as the stew- Jasper Hill Farm, based in Greensboro OR. “One of the basic tenets of our com- ardship principles and business practices of Bend, VT, is focused on raw milk artisan pany is ‘Cheese is First’ and part of that the producing company.” blue cheese production and only started includes getting customers to put it in their Mike Christensen, retail sales man- selling cheese in 2003. mouths to taste the difference of hand- ager for Swiss Valley Farms Cos., based “When we started, we began by send- made cheese.” in Faribault, MN, notes sales continue to ing product to the top chefs and retailers

34 DELI BUSINESS DEC/JAN 2017

Blue Cheese.indd 1 12/22/16 9:14 AM BelGioioso.indd 1 12/14/16 4:13 PM known blue cheeses, dating back to 879 AD, though it is written that it did not actually contain blue veins until around the 11th century. Another variety, Stilton, started to become popular in the early 1700s.

Merchandising Matters Retailers typically merchandise blue cheese in specialty cases near the deli counter, however it is not uncommon for blue cheese to be found in the dairy department, as well. Merchandising cheese is very specific to the retailer and the focus on cheese. If they’re looking to provide a lot of variety and create self-service, upright cases will be utilized where consumers can open the door to grab what they want. If the retailer is looking to be a cheese destination, the store may offer more coffin case styles that group cheeses by texture, such as blues next to Gorgonzola and feta. “I think the biggest trend that retailers need to capitalize on is the story of the brand that made the cheese,” Gunter says. “The deli managers could create sections dedicated to local states and provide information on those producers.” in the country,” says Zoe Brickley, Jasper The characteristic flavor of the cheese Plowman notes that blue cheeses are Hill Farm’s director of sales and marketing. tends to be sharp or salty, and the popular- dramatic to look, at so merchandising cut “We don’t sell any of our cheese packed ity of the product has risen in recent years, wheels and large wedges really draws the out to wedges. The stores need to break as artisan cheese lovers have learned more consumer’s eye. down a whole wheel, which may limit about the different offerings. “All blues require refrigeration and so some retailers, but the savvy ones will take The origin of Roquefort cheese—at pre-cut pieces are great for grab-and-go advantage of what we offer.” least according to legend—dates back to cases,” she says. “Full-service cheese One of the biggest trends in the indus- 79 AD, when a young man was eating a cases give the retailer an opportunity to try is that retailers are seeing what the independent cheese shops and specialty shops are doing to be successful in the cheese category, then following their lead. One of the biggest trends in the “You see places like Whole Foods and others responding to the culture of appre- industry is that retailers are seeing ciation around artisan foods, and they are what the independent cheese shops building and repositioning what they are doing in the cheese sections,” Brickley and specialty shops are doing to be says. “We have noticed more supermarkets adding a service cheese counter, and successful in the cheese category, then that’s really picking up steam as we head into a new year. These service kiosks can following their lead. make a huge difference to increasing sales in the category.” lunch of bread and ewes’ milk cheese. He showcase larger blue cheese displays. Blue A Brief History abandoned his meal after being seduced cheeses require a little more attention than Blue cheese, the generic term for by the pretty fairy of the cave. After days firmer cheeses as far as keeping the display “blue vein” cheeses, refers to cheese proof amorous adventure, he returned to the neat and appealing.” duced with either cow’s, ewe’s or goat’s mouth of the cave, only to find his cheese Where stores sometimes make mistakes milk and ripened with cultures of the mold was covered in a blue mold. Starving, he with selling blue cheese is not investing in Penicillium. The final product is a mixture ate the moldy cheese and bread and found adequate labor. of green, grey, blue or black veins or spots it to be delicious. “That’s the biggest pitfall we see,” of mold throughout the body of the cheese. Gorgonzola is another of the older Brickley says. “They have this great idea

36 DELI BUSINESS DEC/JAN 2017

Blue Cheese.indd 2 12/21/16 6:09 PM and design a really cool space to do merchandising, but then they walk away from Where stores sometimes make it. Customers will walk right by and not even stop and look.” mistakes with selling blue cheese is not The problem is, blue cheese may be too expensive to sell itself. For this reason, the investing in adequate labor. stores that do well with it are those investing in the labor with someone standing next to the display, engaging with the customer suggestions like honey, dried fruit, nuts, Craft beer is also a cross merchandising and putting the cheese in their mouths. jams, chutneys, etc. partner that is popular with blue cheese, as “I hear from cheese mongers that they “Blue cheese also has a variety of customers who spend more on their qual- love blue cheese and the more you sample, cross merchandising applications, includ- ity beer are not shy about marrying the the more you can get someone on board ing, salads, spreads, sauces and honey,” purchase with great artisan cheese. and the more the category will grow,” she Christensen says. says. “People walk up to a table and say Litehouse’s Gunter has heard many Consumer Demos ‘I don’t like blue cheese’ but giving them retailers place blue cheese near pizza, in Litehouse research reveals blue cheese a taste of a really good one can usually the meat department by steaks and even consumers tend to be couples with no change their mind.” in the dairy wall where ingredient cheese children at home and those with higher is found. household incomes. These shoppers value Cross Merchandising “This product is so versatile that mer- experiences, and often entertain for friends Blue cheese can effectively be cross chandising by complimentary products and family. merchandised with a wide range of pairing provides bigger turns for both,” she says. Christensen notes health-conscious consumers with a taste for quality natural ingredients also are attracted to naturally-aged cheeses.

A Whole New World The industry is always looking for the next have to have widget, whether in products, supplies or cheese. In this vein, Litehouse recently introduced Simply Artisan Reserve, the first shakeable blue cheese. “Since the product’s launch, there has been great acceptance and distribution gains,” Gunter says. “Historically, blue cheese has been sold in a wheel, wedge or as a crumble product. Our goal is to rein- vent the category and also add exciting new product innovations.” Rogue Creamery is now USDA Certified Organic and Plowman notes the customer response has been over- whelmingly positive to this major product transition. The company has also veered away from just offering a 5-pound wheel. “We are very proud of our newest product called Tolman Blue. It’s a 1-pound format Organic blue cheese that is naturally rinded and features a fudgy, creamy texture and potent earthy flavor,” Plowman says. “It’s a perfect size for an intimate gathering or small party.” Swiss Valley Farms’ Christensen notes blue cheese slices and spreads seem to be the newest innovation in the case. Delis would be wise to continue to invest in blue cheese and help make it something that becomes a regular item on shopping lists. DB

DEC/JAN 2017 DELI BUSINESS 37

Blue Cheese.indd 3 12/21/16 6:09 PM CHEESE CORNER

The

KingOf Italian Cheeses

Parmigiano Reggiano benefits from strict production guidelines and a complex flavor that sets it apart BY LISA WHITE

here are not many cheeses Consorzio Parmigiano Reggiano. Some Reggiano USA. This was an increase of 34 with as long a history as may consider this surprising, as the cheese percent from 2014. Parmigiano Reggiano. is made from just three ingredients — About 16 million pounds of Parmigiano The only authentic cow’s milk, salt and rennet. was exported last year, according to Eliza- Parmesan cheese, it was “In the European Union, only Parmi- beth, NJ-based Atalanta, a specialty food Tcreated more than 800 years ago by Cister- giano Reggiano can be called Parmesan, importer. cian and Benedictine Monks in the Parma while in the United States there are many and Reggio Emilia provinces of Northern domestic hard cheeses using the name History And Attributes Italy as a way to preserve excess milk. By Parmesan,” says Danielle Bolla, co-direc- Today, Parmigiano Reggiano is pro- the 1530s, Italian nobles began to refer to tor of Consorzio Parmigiano-Reggiano duced exclusively in the Italian provinces of the cheese as Parmesano, meaning ‘of or USA Promotions and Marketing, Ponte Parma, Reggio Emilia, Modena and parts from Parma.’ Given the close ties between PR, located in Petaluma, CA. of the provinces of Mantua and Bologna, the Italian and French nobility, the name Despite being high-end, this cheese’s on the plains, hills and mountains enclosed was shortened to Parmesan in the French popularity is growing. In 2015, 43,000 tons between the Po and Reno rivers. courts of the day. of Parmigiano Reggiano was sold world- Aged Parmesan is known for its com- This variety adheres to strict produc- wide, with 8,876 tons sold in the United plex fruity, sweet and nutty flavor as well tion guidelines set forth by the country’s States, according to Consorzio Parmigiano as a granular texture. An 18-month variety

38 DELI BUSINESS DEC/JAN 2017

Parma.indd 1 12/21/16 6:15 PM Parmigiano.indd 1 11/10/16 9:04 AM It’s important for importers to align with the right producers to get the highest quality cheese. This includes providing animals with the approved feed and using fresh milk in the production. Those who cut corners or shorten the aging process won’t get the expected results. “So many producers and cheese production have been threatened because smaller companies haven’t survived,” says Michele Buster, co-founder of Forever Cheese, based in Long Island City, NY. “It has become necessary to produce a larger quantity for a bigger rotation and to compete in the marketplace.” The cheese won’t get its proper mark- ings unless it has been aged at least 12 months, tested and then aged another six months or longer. This variety also needs to be aged in the proper conditions to acquire the perfume and depth of flavors it’s known for. Forever Cheese works with the Con- sorzio for its seal of approval, which includes a hammer test and fire branding. “The flavor profile and a good piece of might be creamy or milky in flavor, while a mesan, we encourage retailers to educate cheese start with milk, animal feed and 36-month is more intense and full of com- their customers on why it’s important to how the animal is treated,” says Buster. plexity. The small crunchy crystals that buy a wedge and look for the pin dots on In order to further support sustain- some mistake for salt are actually tyrosine the rind so that they know they are get- able development in the mountains and to crystals, naturally occurring amino acids ting [authentic] Parmigiano Reggiano,” extend guarantees to consumers beyond that develop as the cheese ages and allow says Bolla. those of origin to include the quality of it to be easily digestible. “Today, more than 300 dairies make Parmigiano Reggiano according to those ancient techniques,” says Andrea Berti, Atalanta’s senior business development manager. “Parmigiano Reggiano Consor- zio is charged with carefully inspecting each hand-made cheese wheel to ensure it is worthy of displaying the respected DOP name.” The Ambriola Co., based in Caldwell, NJ, offers Parmigiano Reggiano that’s aged 18 to 24 months and more in whole, quar- ter and 1/8 wheels as well as both random and exact weight wedges. The company recently introduced a grated line. “If the cheese has DOP and Consorzio seals, it has to be cut and wrapped in Italy’s Parma region, since it has a protected des- ignation of origin,” says Philip Marffuggi, Ambriola’s chief executive. Some contend that, with the increasing popularity of this cheese, its integrity can be compromised. Indeed, there have been quality issues in recent years. “In light of issues with cellulose or wood pulp being found in domestic varieties of grated hard cheese using the name Par-

40 DELI BUSINESS DEC/JAN 2017

Parma.indd 2 12/21/16 6:15 PM the cheese, the Parmigiano Reggiano Consortium launched Quality Project — Mountain Product within the last year. The Quality Project label means 100 percent of the cheese’s milk is produced in stables in the mountain areas; more than 60 percent of the cows’ feed is grown in mountain areas; maturation of at least 12 months is in mountain areas; quality selection at 24 months is carried out by Consortium experts; and a sensorial evalu- ation or tasting group is held.

Unique Uses Although this cheese has been around for nine centuries, there are still innovative ways it is being incorporated into dishes and paired with other food. “I’m seeing it used in desserts now, paired with dark chocolate,” says Brian Halloran, chef and director, culinary services, for Schuman Cheese, based in Fairfield, NJ. “Also with dried fruits, ground walnuts and honey made into dessert truffle, Parm with soft poached eggs and caviar, and roasted heirloom carrots as well as a crostini topper. recipes. The Regg It Up campaign shows with a Parm Zabiglionne. Its big flavor “It also is used as a table cheese, since different ways to use the cheese in every- accentuates the earthy flavor of root vege- it’s not too salty,” says Marffuggi. “Peo- day cooking. tables and mushrooms.” ple enjoy the nutty flavor and creaminess, This encourages customers to buy the Celebrity chef Marcela Vallado- which is unique in a hard cheese.” entire wedge, rather just purchasing grated lid recently shared via social media how cheese in delis. versatile Parmigiano Reggiano can be in Displays & Merchandising “Retailers are really trying to convey cuisines outside of Italian, including Mex- Millennials are a prime market for Par- information about the single dairies pro- ican dishes. migiano Reggiano, as this demographic ducing this product,” says Berti. “They This is proof that Parmigiano Reggiano takes great interest in their food’s origin, also tend to offer more suggestions on has been known for its versatility. heritage and unique flavor aspects. how to use it.” “It can be a made into Parmigiano “Millennials are definitely interested in In terms of displays, Parmigiano Reg- Reggiano crisps or used to flavor and where their food comes from and the farm giano is often merchandised in wheels showing the authenticity stamp, along with the wedges stacked next to it. “Cross-merchandising opportuni- Millennials are a prime market ties include balsamic vinegar, mostarda di frutta and pears,” says Forever Cheese’s for Parmigiano Reggiano, as this Buster. “The increasing awareness and talk of cheese will help expand the market demographic takes great interest in for Parmigiano Reggiano.” In the past, this cheese variety was their food’s origin, heritage and unique priced too high for many segments of the population, but since the Consorzio has flavor aspects. increased the visibility and marketing, it has become almost a commodity in today’s supermarkets. thicken soups,” says Atalanta’s Berti. to table movement,” says Consorzio Par- This has driven prices down from “However, many retailers are rediscov- migiano-Reggiano USA’s Bolla. “We hire between $18 and $24 a pound to between ering Parmigiano as a small plate hors a local chef, invite the local food bloggers $10 and $15 a pound. d’oeuvre in a more simple and true way, and learn together why this cheese is so “The price fluctuates, but is now at and as the perfect accompaniment to tra- special and so versatile.” the lowest it has been in the last 10 to 15 ditional balsamic vinegar.” A new campaign led by Atalanta has years,” says Ambriola’s Marffuggi. “Now This cheese is known for being grated placed faux Parmigiano Reggiano wheels a lot more people can afford it and are over pasta, salad, potatoes and vegetables in stores with looping videos to highlight exposed to this cheese.” DB

DEC/JAN 2017 DELI BUSINESS 41

Parma.indd 3 12/21/16 6:16 PM DELI MEAT

NATURAL MEATS ARE HERE TO STAY

Clean labels are driving sales BY BOB JOHNSON

or many deli customers, it is it’s gluten, nitrate, nitrite and GMO free.” the word quickly about new ideas in food, no longer enough to offer fi ne This interest in more natural meat prod- politics, fashion, sports, business, etc.” meats with superior fl avor and ucts, and a willingness to pay a little more a delicious story about grazing for them, should be here to stay because What’s the Price? F and processing traditions that go it is led by a younger generation of food- The answer to the question of what we back many centuries. savvy consumers. mean by natural meat can be fuzzy, partly There are more consumers than ever “Millennials are the ones asking us because there is a bit of blarney, like the before who want to know about humane questions about how we cook our roasts tale about the label touting hormone-free methods used to raise and slaughter the and how our meat is raised,” says Daniel pork from producers who really should animals, and about the ingredients added Estridge, chief fl avor offi cer at Real Deli know hormones are not allowed in pork. to process the meat. and NYDP, Westford, MA. “They’re the But much of the uncertainty in this cat- “People are looking for the cleanest ones reading our packages and e-mails, egory stems from the defi nition of natural, labels they can fi nd,” says Camille Col- and reaching out to us to learn more. And which depends a lot on how much con- lins, marketing director at Les Trois Petite more importantly, they’re the ones talking sumers are willing to pay. Cochons, New York, NY. “There is an to their friends about the food they’re eat- “I think of it as four tiers,” says Claas increase not only in all natural, but also in ing and how they feel about it. And with Abraham, owner of Abraham of North organic. We’ve known about no preserva- their grasp on the ever-growing range of America, Lincoln Park, NJ. “There tives and no artifi cial colors forever. Now social tools, they’re empowered to spread are meats that make no claims whatso-

42 DELI BUSINESS DEC/JAN 2017

Natural Meat.indd 1 12/21/16 3:52 PM Columbus.indd 1 12/20/16 8:35 PM limited, maybe five percent. For antibiotic free, it is substantially higher.” The nitrate-free category can become complicated when labels are examined more closely. “You will see a label from uncured salami or pepperoni, and the ingredient list includes sea salt,” says Dave Brandow, corporate sales director for Piller’s Fine Foods, Ontario, Canada, which markets the Black Kassel brand in the U.S. PHOTO COURTESY OF FRATELLI BERETTA Nitrate and nitrite free can be the gate- ever; then there are uncured meats with cent more maximum. If you go too high, way to other, frequently more expensive, no nitrates or nitrites; then no antibiotics you won’t generate tonnage.” product attributes. ever; and finally organic. The consumer is Other suppliers agree with the fact that “Natural meat in the past had to be switching from level two to level three, the there are general price increase ranges for without preservatives,” says Grasmuck. no antibiotics ever. The top of the line is more natural meat products. “Today, when people talk about natural organic, but it comes at a hefty price, so I “The premium is 20 to 30 percent,” meat, it means a lot more. The answer is don’t think there’s that much demand for says Guy Giordano, president and CEO of all of the above–pasture raised, hormone these products.” Vincent Giordano Corp., Philadelphia, PA. free, GMO free, organic, no added salts or In selecting which of these tiers to high- The cost for meats with no nitrates or flavorings, and all natural. The first prior- light, it is helpful to have a sense of the kind nitrites, the first step up the all-natural lad- ity was to do away with nitrates, then we of premium the market can bear. der, is modest. saw it was a lot more involved. Hormone “It costs more money,” says Jean Paul “There’s the no nitrates and no nitrites, free? Most definitely. GMO free? Yes, Grasmuck, national sales manager at Paris or the higher level of natural for antibiotic absolutely. Were the pigs raised humanely, Gourmet, Carlstadt, NJ. “You have to be free,” says Simone Bocchini, president not only how they lived but also how they more selective about the meat, and it also of Fratelli Beretta USA, Budd Lake, NJ. were slaughtered?” takes more time. People will pay more, but “The clean label with minimal additives is Abraham finds significant consumer there are limits, between 20 and 40 per- the most popular, but the price increase is interest in antibiotic-free meat, his third

44 DELI BUSINESS DEC/JAN 2017

Natural Meat.indd 2 12/21/16 3:53 PM Piller.indd 1 11/10/16 9:22 AM tier, despite the substantial increase in cost. “There’s about a 30 percent premium in our cost for meat from level two up to level three,” says Abraham. “But 20 to 25 Usually farmers and ranchers percent can be level three, the no antibiotics ever.” selling this meat type split Other suppliers also find that there is strong demand, in particular, for antibiot- the animals treated with ic-free meat. “Demand for antibiotic-free meats antibiotics from the herd and is definitely at the top of the list for customers, along with simpler ingredient sell them at a lower price. statements,” says Jay Holt, senior vice president for sales at Columbus Craft Meats, Hayward, CA. “We are definitely seeing higher demand for more natural, less premium at retail, but we’re seeing strong we can’t give them antibiotics like we do processed meats, and this is where much demand for these products. This is due to our children? If an animal can’t enter the of the category growth is coming from.” the growing awareness of how antibiot- supply chain, what is the farmer supposed Part of the appeal of antibiotic-free ics in livestock are causing an increase in to do with that animal?” methods of livestock raising is the contri- drug-resistant bacteria that threatens pub- Usually farmers and ranchers selling this bution to public health made by reducing lic health.” meat type split the animals treated with the danger of resistance to medicines that On a practical level, antibiotic-free meat antibiotics from the herd and sell them at humans need. becomes complicated, however, when a lower price. “Columbus has begun transitioning to some of the animals get sick. Then there are claims made on some antibiotic-free meat and recently launched “People are interested in the humane meat packaging that make little sense, like a line of antibiotic-free sliced deli meats treatment of animals, and they are inter- hormone-free pork or poultry. that have no nitrates or nitrites added and a ested in no hormones,” says Brandow. “As to hormone-free, it’s often called clean ingredient list,” says Holt. “This meat “People want antibiotic-free meat to eat, out, though as folks in the industry know, will generally command a 20 to 30 percent but does that mean if the animals get sick with respect to poultry and pork, regula-

46 DELI BUSINESS DEC/JAN 2017

Natural Meat.indd 3 12/21/16 3:53 PM Campofrio.indd 1 11/10/16 8:26 AM tions don’t permit their use anyway,” says Estridge. “Still, you see it on labels, so it’s apparent that many marketers feel consumers want to see the claim; however, it is meaningless.” There is also, these days, strong interest in gluten free, even though most meat products have always been gluten free. “Being a true, cured meat, we are naturally gluten free, but we get that question more than any. The other important claims that we can support are ‘free of added nitrates and nitrites’,” says Johnson. “The consumers’ knowledge is growing and they are beginning to become more aware of items that they want to stay away from.” Although there is interest in organic meats, demand is relatively slight because of the price premium. “Nobody would argue that organic isn’t

appealing, but the cost is very high, so it PHOTO COURTESY OF LES TROIS PETITE COCHONS has limited penetration into the natural meat category,” says Estridge. work in offering definitions for natural growth hormone) and no GMOs. Clean Abraham agrees that cost limits the meat products. label ingredients are becoming more and market for organic meat, saying, “The con- “There is a general list, and the Whole more important.” sumer is still very price-driven.” Foods list has become a standard of The demand for natural meats is Amid a confusing maze of claims, one never ever ingredients,” says Giordano. steadily increasing, and the market is devel- of the leading mainstream natural foods “The most in demand attributes right oping the kind of maturity that will result stores has already laid much of the ground- now are antibiotic free, no HGH (human in a steady and reliable supply chain. As a result, farmers and processors can com- fortably plan their volume in advance. “There is significant demand for higher-end natural meats, and it is growing,” says Giordano. “Millennials are a large part of the growth in this category as well as Baby Boomers.” Maturity of the market should bring greater stability to both the supply and price of these products at different levels on the all natural continuum. “The companies that raise our meat or slaughter it need a commitment to a cer- tain volume, so we do too,” says Abraham.

It’s About The Quality The complex list of attributes included in claims that meats are more natural can make you dizzy, but the products must ulti- mately pass the simplest of tests: Do they taste better and feel better in your mouth? “Pasture raised, hormone free, GMO free, organic, no added salts or flavorings, or all natural are all good claims,” says John- son. “When you use quality ingredients, it doesn’t just show in the ingredients list, but it shows in the flavor of the product.” There is a strong relationship among consumers between the interest in more natural foods as well as the desire for better-tasting options.

48 DELI BUSINESS DEC/JAN 2017

Natural Meat.indd 4 12/21/16 3:53 PM “We see the natural and premium, high-end consumer segments converg- ing,” says Estridge. “There are two things driving this. First, as the market for more natural deli is maturing, more vendors offer so-called natural products. From a marketing perspective, it just makes sense to offer distinctive quality along with the naturalness. And second, these customers are also skewing younger, and this demographic is interested in small-batch, craft-quality foods in general.” At this level, more natural means less processing and fewer ingredients. “Our approach is Cooked, Not Pro- cessed and our customers tell us they appreciate it,” says Estridge. “We also tend to develop recipes that are unique and richly flavorful. What we do may not scale as readily as the usual processor’s

PHOTO COURTESY OF LES TROIS PETITE COCHONS approach, but we feel strongly that art- fully cooking real roasts of intact meat right off the bone versus industrially processing formed meat-products is worth the added extra trouble.” opportunity to get the product into con- ucts are educated foodies,” says Collins. Some suppliers still find more meaning sumers’ mouths and to converse with “Millennials are a definite target. We are in the taste of their products than in claims them. We also do back of the house train- focusing on that group more heavily now. to be more natural. ing, so people can speak intelligently when They are savvy about labels, and they “We don’t know what ‘natural’ means,” we’re not there.” know about food. For the Boomers, our says Brandow, “The USDA definition is Some producers are developing their products are ‘everything in moderation.’” pretty broad. We could put gluten free on own brands, offering a combination of The younger consumers may not need the label, but we never had gluten.” clean labels and quality. highly-detailed descriptions of why the “We try to communicate our quality meat is more natural. Show Them The Meat through our packaging,” says Abraham. “This is being led by the sought-after There are enough levels of natu- “We work on our design; a renowned consumers, the Millennial generation,” says ral meats to make it worth the effort for company in Germany does our packaging.” Bocchini. “They are much more sophisti- retailers to communicate clearly what con- The market for premium natural meats cated and educated.” sumers can get for their money. skews younger and, on the whole, is rela- Younger consumers, particularly those “We do a lot of signage, and we offer tively well-informed. locatead in larger cities, lead the market for retailers demos,” says Collins. “It’s an “Consumers who look for our prod- natural meats. “It starts in the urban areas and moves out into the whole country,” says Gras- muck. “The Millennials and the Gen Xers are most important; people between 20 and their late 30s are the premium market.” Because these younger people are key to the market, social media is particularly important in merchandising. “Millennials are the biggest group of consumers driving food trends,” says Holt. “This demographic also is driving the social media movement. They use Facebook, Twitter, Instagram and Snapchat to get advice, learn about what they want to buy, and are excited to share anything new they find through social media. Attracting Millennials has network effects that smart brands and retailers are trying to tap into.” It’s the wave of the future and where the

PHOTO COURTESY OF FRATELLI BERETTA natral meat segment is headed. DB

DEC/JAN 2017 DELI BUSINESS 49

Natural Meat.indd 5 12/21/16 3:54 PM BLAST FROM THE PAST KEEPING IT KOSHER

ince 1926, Tnuva has been the world’s developing economy and food industry, even- largest kosher food manufacturer, deliv- tually transforming itself into the largest kosher Sering a variety of premium cheeses and food company in the country and the world. high-quality frozen products to consumers in Tnuva formally entered the North Ameri- Israel, the U.S., Canada and the UK. can market in 2004 via hundreds of kosher and Since 1926, Tnuva has been the world’s largest kosher food manufacturer, de- Tnuva’s roots are interwoven with the mainstream supermarkets. livering a variety of premium cheeses and high-quality frozen products to consum- pioneers who built the State of Israel. In 1926, Dozens of products are available to North ers in Israel, the U.S., Canada and the UK. Tnuva began as a milk cooperative, where pio- American consumers, ranging from dairy Tnuva’s roots are interwoven with the pioneers who built the State of Israel. In neering kibbutz dairy farmers worked day and cheese products and frozen pastries, to heat- 1926, Tnuva began as a milk cooperative, where pioneering kibbutz dairy farmers night to create a dairy industry by distributing and-eat chicken products and dessert puddings. worked day and night to create a dairy industry by distributing fresh milk to mem- fresh milk to members of the pre-state commu- In 2016, Tnuva’s USA division began pro- bers of the pre-state community. The success of this venture enabled the kibbutz nity. The success of this innovative venture en- ducing a number of dairy cheese products in the dairy pioneers to expand their list of dairy products to consumers in the 1930’s. abled the kibbutz dairy pioneers to expand their Midwest region. With the formal declaration of the state in 1948, Tnuva became an integral part of extensive list of dairy products to consumers in Tnuva continues investing heavily in cut- Israel’s developing economy and food industry, eventually transforming itself into the 1930’s. ting-edge food technologies and standards, the largest kosher food company in the country and the world. With the formal declaration of the state in providing consumers seeking balanced and tasty Tnuva formally entered the North American market in 2004 via hundreds of 1948, Tnuva became an integral part of Israel’s foods with high nutritional values. kosher and mainstream supermarkets. Dozens of products are available to North American consumers, ranging from dairy cheese products and frozen pastries, to heat-and-eat chicken products and dessert puddings. In 2016, Tnuva’s USA divi- Blast From The Past is a regular feature of Deli Business. We welcome submissions of your old photos, labels or advertisements along with a brief description of the photo. Please send material to: Editor, DELI BUSINESS, P.O. Box 810217, Boca Raton, FL 33481-0217 or email [email protected]. For more information contact us at (561) 994-1118. sion began producing a number of dairy cheese products in the Midwest. GENERAL POLICIES Tnuva invests heavily in cutting-edge food technologies and standards, pro- Advertisers and advertising agencies agree and accept responsibility for all statements and product claims made in their advertisements for themselves or their organizations. The publisher is not responsible, nor does he necessarily agree with any of the opinions or statements expressed in such advertisements. Advertisers and advertising agencies agree to accept responsibility for all content viding consumers seeking balanced and tasty foods with high nutritional values. of such advertisements, and agree to assume liability involving any claims arising from such advertising that are made against the publisher. Advertiser and advertising agencies agree to indemnify the publisher and to hold him harmless and to defend him from any such claim or claims, and to be responsible for the payment of any expenses or legal fees incurred by the publisher associated with such legal action or claims. The publisher reserves the right to accept or reject advertising that he believes does not meet the publication’s standards. Advertising appearing in editorial format may or may not be accepted by the publisher, and if published will be properly labeled “advertisement.” Publisher is not liable for non-delivery or delays, caused by any federal or state agency or association, or by ﬁ re, ﬂ ood, riot, explosion, strike, embargo, either legal or illegal, material or labor shortage, transportation or work interruption or slowdown, or any condition or act of God affecting delivery and beyond the control of the publisher. INFORMATION SHOWCASE Receive supplier information fast using the Deli Business Information Showcase. Here’s How: Contact the advertiser directly via the website, email, phone or fax listed in the ad. COMPANY PAGE# CATEGORY PHONE American Cheese Society ...... 51 ...... Trade Association ...... 502-583-3783 Atalanta Corporation ...... 5 ...... Cheese ...... 908-372-1795 Atlanta Foods International ...... 11 ...... Cheese ...... 404-688-1315 BelGioioso Cheese, Inc...... 35 ...... Cheese ...... 877-863-2123 Blount Fine Foods ...... 9 ...... Soups ...... 800-274-2526 Campofrio Food Group America ...... 47 ...... Deli Meats ...... 804-520-7775 Castella Imports ...... 33 ...... Mediterranean Specialties ...... 866-CASTELLA Columbus Foods, Inc...... 43 ...... Salami & Deli Meat ...... 510-921-3417 Couturier North-America, Inc...... 2 ...... French Cheese ...... 518-851-2570 Dietz & Watson Inc...... 13 ...... Deli Meats ...... 800-333-1974 European Union ...... 23 ...... Cheese & Prosciutto ...... 646-218-6025 FoodMatch, Inc...... 32 ...... Fig Spread ...... 800-350-3411 George E. DeLallo Co...... 52 ...... Cookies ...... 800-433-9100 John Wm Macy’s Cheesesticks ...... 7 ...... Cheese Sticks ...... 800-643-0573 Klondike Cheese Co...... 27 ...... Cheese ...... 608-325-3021 LaPanzanella ...... 21 ...... Flatbreads ...... 206-322-6760 Les Trois Petite Cochons ...... 48 ...... Appetizers ...... 212-219-1230 McKenzie Country Classics ...... 46 ...... Natural Meats ...... 617-889-1600 Norseland, Inc...... 18 ...... Jarlsberg Cheese ...... 203-324-5620 Paris Gourmet ...... 44 ...... Gourmet Foods ...... 201-939-5656 Parmigiano Reggiano ...... 39 ...... Cheese ...... 401-568-1692 Piller Sausages & Delicatessens Ltd...... 45 ...... Deli Meats ...... 800-265-2628 Pomi USA ...... 15 ...... Tomatoes ...... 732-541-4115 Refrigerated Foods Association ...... 29 ...... Trade Association ...... 770-303-9905 Sandridge Food Corporation ...... 26 ...... Prepared Food ...... 330-764-6178 Saputo Cheese USA, Inc...... 17 ...... Cheese ...... 800-824-3373 Wild Planet ...... 19 ...... Sustainable Tuna ...... 800-998-9946 Yucatan Foods ...... 25 ...... Guacamole ...... 310-837-2300

50 DELI BUSINESS DEC/JAN 2017

Blast-Index.indd 1 12/21/16 5:32 PM American Cheese.indd 1 12/14/16 4:09 PM