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.