Salad Bowl Branding Welcome! Salad Bowl Branding provides briefings on America's shifting specialty food markets, the changing tastes of consumers, demographic and industry trends and growth opportunities in the consumer packaged goods sector. Learn More about us.
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 US consumers are generally not confident in the safety of the food supply according to a new study published in the journal of Food Quality and Preference.
Despite numerous food safety messages, the rate of foodborne illness in the United States in on an alarming rise. The CDC estimates that about 50,000 Americans become ill each year from pathogens in the foods they eat. Further, almost 400,000 are hospitalized with 3,000 passing from the illness.
The new study involved testing the perceptions of consumers and their reactions to the numerous food safety messages being used by the government, the food industry and food educators.
The result was that consumers found food that was irradiated or genetically altered to be considered less safe. Foods that were local grown or harvested were considered more safe. So a boon to the local farmers’ market.
Natural and organic foods fared well in consumer perceptions as being safe, so long as proper food handling procedures were followed.
Surprisingly the study also revealed that consumers feel that they are immune to foodborne illnesses, thinking that they are less likely to become susceptible to illness than others.
For those companies and brands that tout the safety of their products, like B&W Watercress, for example, consumers are willing to spend an extra 12% on those food products.
The least trusted were the ethnic foods. Consumers felt that imported foods have the potential of being less safe than foods prepared in the US.
With this new insight, food marketers who work with imported brands should add phrases to their packaging or their websites to assuage this concern.
Read More: http://www.foodnavigator-usa.com/Science-Nutrition/Study-sheds-light-on-consumer-food-safety-behaviors
 We’ve come across a wonderful web service that helps specialty food brands to centralize, store and share their packaging artwork files.
With so many companies using foreign suppliers these days and the sheer volume of digital artwork that is being generated, even companies as large as PepsiCo are having a hard time managing their assets. In the age of social media this is a perfect fit between technology and a real problem in the industry.
Many of our supporters come from a branding or packaging background and a constant pain is locating the latest approved file, sending it to the pre press house or printer, making sure they got it and can open it using the right application and version, and then make sure they don’t edit or change the graphics. Then, once the label or package is printed, ensure that the brand keeps the last version of the file, not the vendor.
I’ve seen similar systems, some out of countries I just don’t trust, but they are either proprietary (use a process that gives them ownership of the brand artwork) or are a value added service of a printer to control print runs.
The Packaging Vault provides a simple, smart interface, is inexpensive (even for specialty foods), and can immediately help small to large brands better manage the packaging design and production process. It was built by a team of brand packaging gurus over the last several years and now they’re finally starting to see some traction.
They offer a 30 day free trial so check it out.
 At Salad Bowl Branding we keep looking for the next food trend on the menu. While we see patterns emerging in the Mexican, Indian and Asian, there is a new flavor capturing America’s tastemakers, Moroccan.
As dining out for ethnic foods is slowly improving, we are noticing that food outlets who provide more exotic products and restaurants with more adventurous menus are showing strong growth, especially with young adults who have become the most adventurous in trying global cuisines.
This market often identify themselves as ‘cooking enthusiasts’ and are eager to experiment with new recipes, tastes and flavors – stirring the demand for what was once considered exotic specialty foods.
While this niche market may be small, they are also more affluent and are spending more on healthy foods both in the supermarket and in home meal preparation, which continues to be a strong economic trend.
According to a report in PR Newswire, “Young adults are driving the interest in ethnic foods in the USA and their adventurous eating is introducing foods from around the world to their family and friends”.
Even in a recovering economy, ethnic foods set a record at $2.2 billion in sales {see NASFT State of Industry Report}. While Indian and Asian foods continue their rapid growth, expect to see interest in the African and South American international foods category to grow as well.
Rich spiced sauces in Indian and Thai foods are winning consumers’ palates. Moroccan cuisine, which compliments this category nicely, is sure to be one of the hottest exotic culinary experiences in the coming months.
The specialty food industry struggled in 2009 but still grew by 2.7%* with much of that growth coming in the fourth quarter.
As a consumer packaged goods marketer I keep an eye on specialty food sales, from the local retailers through natural food stores and supermarkets. For over 20 years I have spent the majority of my time working on ways to help specialty food products sell.
The data I have analyzed reveals a culturally authentic industry that continues to grow despite a daunting global economic recession. In fact, sales of specialty foods last year topped $65 billion, commanding over 13 percent of retail food sales. That’s great news.
KnoorReadytoServe
Better yet, if you sell refrigerated sauces, salsas and dips, you were (and still are) in great demand. Even if you don’t sell Yogurt or Kefir, the fastest growing specialty foods category, the primary question all entrepreneurial brand owners still have to ask is “how do I make sure my product attracts the right buyer?”
That’s where I come in. And on June 26th, if you register for my seminar at the Fancy Food Show, you’ll gain that answer, learn a few tactics and uncover ways to help your products sell better too.
Want some more great news? Come see me at the show.
7 Ways to Evaluate Your Product’s Branding and Packaging to Respond to Changing Markets
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 Fancy Food Show
Saturday, June 26
10:30 AM-12:00 PM
Javits Center, NYC
Register today
One day only!
[* State of the Specialty Food Industry 2010]
 If the industry needs more proof that specialty foods is THE sector of growth in food and beverage, validation can be found through the vast array of niches that the sector is penetrating. Be it low-cost convenience or high-end luxury, specialty foods are gaining steam…
According to Time Magazine (April 3, 2008) “The specialty-food sector is growing as pantry goods that used to be basic commodities are being repackaged as upscale luxuries. Even as some people worry about being able to put any kind of food on the table, the sales of specialty foods are up 17% over the past two years (compared with 4% for overall food sales).
‘The financial situation hasn’t hurt us,’ says Andy Arons, CEO of New York City’s Gourmet Garage stores. ‘I don’t think that people necessarily skimp on eating well in hard times. Maybe 10 years ago, splurging on food seemed foreign, but when you are in a world where people pay $4 a day for a Starbucks coffee, an expensive butter doesn’t seem that extravagant.’
On the other end of the scale, even low-end convenience stores are using specialty foods to entice more palates, and more profits. Even 7-Eleven is hip to the profit potential of such comestibles.
As Rocky Mountain News reports, “Even 7-Eleven is going local. The ubiquitous convenience store is cooking up specialty foods for Colorado palates – such items as carnitas pita sandwiches, beef and green chili burritos and sugar cinnamon twist pastries.
The regional creations were on display for the annual ‘University of 7-Eleven’ gathering at the Colorado Convention Center on Wednesday, a traveling food and beverage show that gives 750 store managers and franchisees a sneak peek of new products and services.
“When I came to Colorado, the first thing I heard people talk about was the green chili,” said Jason Yada, a fresh food manager with 7-Eleven. “We wanted to make our burritos really authentic.”
The Colorado specialties are the latest way for 7-Eleven, once known primarily as a pit stop for sodas and smokes, to continue to expand into fresh foods such as sandwiches, salads and fruits. The Dallas-based chain, which has 220 stores in Colorado, last year posted nearly $47 billion in sales. ‘What customers see at a grocery store, they want to see here,” said Raj Singh, merchandising manager for 7-Eleven, pointing to a 24-pack of bottled water.”
When foods migrate from restaurants to low-end convenience stores and high-end luxury stores, the question is not if they’ll continue to move mainstream–it’s how fast and furiously they’ll continue to do so.
 While news of the economic downturn is blazing the nation’s headlines the fact is, it’s only part of the current story. After all, the economy is not the only entity in America experiencing dramatic shifts.
With one-third of the U.S. population currently of minority status—a figure forecast to soar to half the population by 2050—a far larger story of change is occurring. And with sales of specialty foods rising 17 percent over the last two years (compared to only 4 percent of overall food growth), these long-term marketplace changes hold near-term implications for the specialty foods and beverages industry.
A look at many of the current trends tells the broader story—which includes opportunity, not just economic challenge:
- Purchasing power increases. Minority market segments are not only growing in size but in spending power—and that power is pegged to fervently rise by 30 percent, to $1.9 trillion, within only three years. These markets are essential to the overall economy, and a key driver within our own sector.
- The new “tastemakers” wield wide-ranging influence. With sales of specialty foods slated to grow by an astonishing 50 percent over the next decade, the real phenomenon is that 75% of sales generated for specialty foods are from mainstream customers, not the niche cultural segments originating the foods. Indeed, American palates are now influenced by an entirely new set of tastemakers.
- Home-based dining poised for growth. Consumers don’t stop eating during a downturn, but they do adjust where they have their meals. This is good news for food producers as home-based food preparation is undoubtedly poised for an upswing. Moreover, consumers will seek more variety in their home-based diets since they will not be frequenting specialty and ethnic restaurants at the rates of the past few years.
A Look Back Gives Future Insight
As history has proven time and again, the economy will turn back around–just as the stock market took some steps toward recovery this week. But as history has also taught us, the chance to gain a strong foothold into emerging markets is time-sensitive, too.
Opportunities with new markets of this magnitude—that are influencing the purchasing decisions of much larger markets—come and go quickly…which begs the ultimate question: In this economy, is your company’s growth strategy reactionary or truly visionary?
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In the $75 billion-dollar specialty foods market, forecast to grow by 50% over the next decade while other food sectors remain relatively flat, an insightful new report has just been released. And for food and beverage companies, there’s A LOT to like about it.
Today’s Specialty Food Consumer 2008, developed by the National Association for the Specialty Food Trade (NASFT) and Mintel International, cites that 56% of American consumers are currently purchasing specialty foods and beverages—offerings the report defines as “distinctive” in taste, such as premium and ethnic products.
With the average specialty foods consumer now spending $115.50 weekly (an 8% increase from 2006 figures) and allocating nearly 23% of their food dollars for specialty products, the findings illuminate a set of lucrative new trends, including:
Youth Segment Drives Demand
The report found that people between 18 and 34 are the most likely buyers of specialty foods. While head-of-household mothers are a prime target for food retailers (and are well represented in this age demographic), brand managers have long held the youth demographic of 18-24 as the “holy grail” of markets for building brand loyalty.
 Moreover, the youth market is especially primed to become “brand evangelists” who discuss new food preferences over the water cooler at work as well as through “online water coolers” like blogs, social networks and Twitter. This pays brands back in spades since this market can act as a veritable sales force.
Americans Want New Tastes… But Tradition Runs Deep
A key finding from respondents was that 86% of specialty foods consumers like to experiment with new recipes; yet 80% said that family food traditions are important to them (with nearly 25% of purchases being imported brands).
This is consistent with the key premise of Salad Bowl Branding that consumers who adopt the traits of American culture do not lose the ties to their heritages, but keep them very much alive through their foods. Moreover, both of these figures signal huge opportunities for brands that leverage innovation as well as those that honor tradition.
Home-based Foods Purchasing On the Upswing 
The report also cites that 6 out of 10 specialty food purchases by consumers are for “everyday meals at home.” Combine that with a weak economy pressing consumers to return to home-based food preparation that is 2/3 less costly than dining out–and we see consumers yearning for more variety that they can create at home.
And while respondents noted “taste and quality” have the most influence on their specialty foods purchases, consumers are no doubt also looking for competitively priced products, too.
So, what does this mean for YOUR brand’s packaging strategy?
In short, specialty foods have achieved mainstream status. No longer only bought by cultural and ethnic markets, specialty offerings are now purchased, adopted and anticipated by wide-spanning segments. In fact, according to Agri-Food, 75% of the sales generated by ethnic foods already come from mainstream customers.
 What these new set of statistics prove is just how vast the opportunities are—in nearly every cultural origin and at nearly every price point—with innovative and traditional food offerings alike. And when we couple these figures with the explosive growth in America’s populations, we find that there’s never been a stronger time for specialty foods and beverages companies to make their mark.
Yet in the average supermarket, housing between 40,000 and 50,000 brands, packaging is your single best shot at grabbing this market’s hearts, minds and market share. But branding doesn’t take luck, it takes a thoughtful strategy.
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