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Reader Service No.143 AUG./SEPT. ’06 • VOL. 11/NO. 4 Deli TABLE OF CONTENTS FEATURES BUSINESS Rev Up Your Holiday Sales..............................18 More customers turn to prepared foods during the holidays. Is your deli department ready? COVER STORY Americans Are Discovering Pâté ....................21 Better packaging, more choices and a growing taste for “luxury” foods mean these high-end spreads are selling better than ever. Handheld Deli Foods ......................................23 An old tradition makes a convenient comeback. Fresh Soups Heat Up ......................................26 Fresh soups hit all the consumer desires — convenience, quality and taste. DELI MEATS Pre-Sliced Deli Meat — No Longer The Department Bargain Bin ................................30 High-quality, pre-sliced deli meats are changing the entire category. DEPARTMENT SPECIALTY CHEESE CORNER 1122 World Cheese Update ..................................33 With consumers seeking out top-quality cheeses, COMMENTARY retailers need to know what is going on with world-class EDITOR’S NOTE cheesemaking. Putting Tesco To The Test................................6 The stakes are hard to overstate, not just for Tesco, but Grana Padano ..............................................37 for the future viability of the supermarket business With a 1,000-year history and a model. reasonable price, Grana Padano is the world’s most widely PUBLISHER’S INSIGHTS consumed PDO cheese. Let Us Not Forget ..........................................8 The natural food trend is a luxury of an affluent society. Say Cheese...American Cheese ..................39 The winners of the 2006 ACS MARKETING PERSPECTIVE awards are unique, delicious and distinctly American. Cashing In On Cook & Carry............................45 Without exception, consumers loved the idea of IN EVERY ISSUE assembling a meal, 46 DELI BUSINESS Quiz..........................................4 walking away from 46 Deli Watch ..................................................10 the mess and leaving it for TechNews ....................................................44 someone else to Blast From The Past ....................................46 clean up. Information Showcase ................................46 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 Deli BUSINESS Aug./Sept. 2006 Deli 4 Deli BUSINESS QUIZ NICOLE SEALANDER Buyer BUSINESS C & S Wholesale Grocers, Inc. Hatfield, MA President and Editor-in-Chief • JAMES E. PREVOR Nicole has been a buyer with C&S at its Hatfield location for [email protected] three years. The company, which is headquartered in Keene, NH, Publishing Director • KENNETH L. WHITACRE [email protected] is the second largest grocery wholesaler in the country. She buys primarily rotisserie chickens, imported cheeses, specialty items and whole- Publisher/Editorial Director • LEE SMITH [email protected] meal replacement items. Her accounts include Waldbaums, Pathmark and A&P. Prior to joining C&S, she interned at the Basketball Hall of Fame in Springfield, MA. Managing Editor • JAN FIALKOW 1 [email protected] Nicole has been reading DELI BUSINESS for about 1 ⁄2 years. When an issue comes into the office, she and her colleagues take turns reading it. “I like finding out about Circulation Manager • KELLY ROSKIN [email protected] new products and lines,” she says. “And I like seeing what the vendors I buy from are offering.“I think DELI BUSINESS is very informative. You can pick up the magazine and Production Director • DIANA LEVINE [email protected] find information you may not get anywhere else.” As winner of the DELI BUSINESS Quiz, Nicole will receive a personal DVD/CD player. Production Leader • JACKIE TUCKER [email protected] WIN AN ANTI-GRAVITY LOUNGER Production Department •FREDDY PULIDO For stress-free outdoor relaxing! Pivoting Z-shaped support surface cradles your JOANNA ARMSTRONG spine in a stress-free position; elevates legs for improved circulation; eases tense mus- Research Director • SHARON OLSON cles; and expands lung capacity for increased oxygen intake. Contributing Editors HOW TO WIN DARBY BRINDAMORE JACQUELINE ROSS LIEBERMAN To win the DELI BUSINESS Quiz, the first thing you have to do is enter. The rules LIZ CAMPBELL BOB JOHNSON are simple: Read through the articles and advertisements in this issue to find the JASON CANGIALOSI KAREN SILVERSTON answers. Fill in the blanks corresponding to the questions below, and either cut along Advertising the dotted line or photocopy the page and send your answers, along with a business JORDAN BAUM card or company letterhead, to the address listed below. The winner will be chosen by [email protected] drawing from the responses received before the publication of the Dec./Jan. 2006 issue ERIC NIEMAN of DELI BUSINESS. The winner must agree to submit a photo to be published in [email protected] that issue. Send insertion orders, payments, press releases, photos, letters to the editor, etc., to: Quiz Questions DELI BUSINESS P. O. B ox 810217 1) What is the toll-free number for Tribe Mediterranean Foods? __________ Boca Raton, FL 33481-0217 ___________________________________________________________ Phone: 561-994-1118 Fax: 561-994-1610 E-mail: [email protected] 2) What is the web address for Coleman Deli Meats? __________________ Phoenix Media Network, Inc. ___________________________________________________________ Chairman of the Board • JAMES E. PREVOR 3) What is the E-mail address for Heinz Deli Division? _________________ Executive Vice President • KENNETH L. WHITACRE ___________________________________________________________ Senior Vice President • LEE SMITH General Counsel • DEBRA PREVOR 4) In what city is Karl Ehmer located?_______________________________ Executive Assistant • FRAN GRUSKIN 5) What is the fax number for Rubschlarger? _________________________ Trade Show Coordinator • JACKIE LOMONTE ___________________________________________________________ DELI BUSINESS is published by Phoenix Media Network, Inc. 6) What is the street address for Marcel et Henri?_____________________ P. O. B ox 810 425 Boca Raton, FL 33481-0425 ___________________________________________________________ Phone: 561-994-1118 Fax: 561-994-1610 Entire contents © Copyright 2006 This issue was: ■ Personally addressed to me ■ Addressed to someone else Phoenix Media Network, Inc. Name: ________________________________________________________ All rights reserved. Printed in the U.S.A. Company:______________________________________________________ Publication Agreement No. 40047928 Position: _______________________________________________________ Street: ________________________________________________________ City/State:_________________________________________ Zip:________ Phone: ( ) ____________________ Fax: ( ) ________________ Please send answers to: DELI BUSINESS QUIZ: Aug./Sept. 2006 Issue P.O. Box 810217 • Boca Raton, FL 33481-0217 PremiumPremium Imported Imported Deli Deli Taste. Taste. Ready Ready to to Go! Go! Finlandia brings you the largest line-up of pre-sliced, premium imported cheeses. Finlandia Deli Slices is a line of imported, high quality sandwich cheese slices. An impressive line-up in any store. • Imported great tasting, all natural cheeses. • All naturally lactose free. No hormones added. • Pre-sliced, interleaved cheeses ® in convenient, easy-to-open, resealable packaging. Swiss, NEW Thin Sliced Swiss, Light Swiss, • Exact weight packages, ready Muenster, Havarti and Gouda for peg displays. Finlandia Cheese Inc. • Parsippany, NJ 07054 • Tel: (973) 316-6699 • Fax: (973) 316-6609 • www.finlandiacheese.com Reader Service No.135 Deli FROM THE EDITOR’S DESK BUSINESS Aug./Sept. 2006 6 Putting Tesco To The Test p until now, the proliferation of food chan- Though loosely based on the Tesco Express concept nels has only served to reinforce the impor- popular in the U.K. and other countries, these stores are U tance of the deli in the supermarket mostly 10,000 to 15,000 square feet, which is much larger schema. If supercenters — at least in the iteration than the U.K. concept. that Wal-Mart has rolled across the country — The stores will lean heavy toward private label and were going to focus on price and attracting the heavy toward perishables and, especially, heavy toward consumer who lives paycheck to paycheck, it nat- prepared foods. The stores have been compared to Trader urally led supermarkets to adjust. The supermar- Joe’s but with more fresh and prepared foods. kets deemphasized easi- The stakes are hard to over- ly price-comparable gro- state, not just for Tesco, but for ceries and reduced the future viability of the super- space allocation for bar- market business model. It seems By gain lines of groceries. The stakes are hard to overstate, as if Tesco is imagining a con- Jim Prevor Equally, if warehouse clubs not just for Tesco, but for sumer purchase pattern that were going to attract an infre- might go like this: Once a week Editor-in-Chief of quent shopper — perhaps the future viability of the or within ten days, consumers DELI BUSINESS because their relative paucity of supermarket business model. shop at a supercenter doing the locations and perhaps because bulk of their food shopping. minimum package sizes made it Every three to six weeks, a concept unsuitable