A drowsy climate

The sauces and marinades sector is in need of a wake-up call. Sales are becoming sluggish as shoppers seek more healthful and tasty meal alternatives.

Sales of cooking sauces grew just 2.2 percent between 2012 and 2014 to reach $4.2 billion, and revenues are set to decline to $4 billion by 2019 unless brands can offer more of the flavors and healthful products that interest consumers, Mintel, a global market research firm, reports. In its December 2014 “Cooking Sauces, Marinades and Spices — US” report, Mintel notes that shoppers are increasingly looking for more fresh items and fewer shelf-stable options, which many consumers perceive as being too processed.

While the marinade sector is more vibrant — growing 10.5 percent between 2012 and 2014 to reach $1.1 billion in sales — activity also is set to slow. Mintel forecasts revenues to reach just $1.3 billion in 2019. Impacting the category is declining consumer meat consumption and a shift by shoppers away from shelf-stable center-of-store foods, Mintel reports.

To generate more activity, retailers must develop marinade products that complement alternative proteins such as vegetable protein, as well as continue to provide new and unique flavors and healthful selections such as all-natural and organic varieties and items with low or no sodium, fat and sugar, Mintel adds.

They also have to appeal to the key millennial consumer segment: Many millennials “avoid processed foods and actively seek fresher/healthier ways to customize food made at home,” Mintel notes.

Some suppliers, meanwhile, are moving to meet such demands by launching products with stronger flavor profiles and cleaner labels.

“People want bold flavors, including those that are peppery, spicy and smoky,” says Vincent Barcelona, corporate chef and vice president, customer experience, for Supreme Oil Co., an Englewood, N.J.-based provider of sauces and marinades. “They want to liven up the palate and are bored eating the same old, same old. But they also have health concerns and are careful about what they are putting into their bodies.”

Offer higher-end options

In addition, consumers are showing greater interest in premium offerings, including those with fresher and organic ingredients, according to Laurie Cardillo, vice president of marketing for LiDestri Food & Beverage Inc., a Fairport, N.Y.-based sauce supplier.

“We are out of the recessionary period, and people with more disposable income are better able to prepare high-quality meals at home.”

To generate further private label activity, retailers should differentiate their selections from the national brands, Cardillo says.

“There are great opportunities to establish something different on the shelf,” she states. “Many consumers want to try new flavors, so there is not a need to just mimic what already is available.”

Still, retailers also could benefit by offering options similar to those of the national players, but at a lower price and higher quality, Barcelona states.

“If you have a superior product that cost less than what the big boys are offering, you have a winner,” he notes.

It is important, meanwhile, for retailers to heavily promote any private label selection to garner greater attention and interest, says Fiore Napolitano, vice president of sales and marketing for O’Sole Mio Inc., a Boisbriand, Quebec-based supplier of refrigerated pasta sauces.

Measures could include featuring products in fliers and having callouts on labels that spotlight attractive features such as being low in sodium, organic, or glutenfree, as well as having a unique logo and package color.

“It is important to get the point across without the package being overly cluttered,” he states, noting that store brand sales also will continue to grow as more retailers dedicate additional shelf space for the products.

“Competition in the sauces and marinades sector is lethal, as everyone is grabbing for the same crumbs and vying for the customers’ attention,” Barcelona adds. “It is important to keep the message simple and just make a connection and convey what is in the bottle.”

Target the health-conscious consumer

Merchandising “cleaner” store brand products also could create an edge, as more shoppers are reading labels and seeking products with fresher ingredients, notes Travis Green, private label manager for Sky Valley Foods LLC, a Danville, Va.-based supplier of organic sauces and marinades.

“Many customers are willing to pay more for a healthy selection,” he notes. “Retailers are looking for innovative ideas, and such items will enable them to better compete with the traditional national brand offerings.”

To develop the most appropriate items for specific customer bases in each region, retailers need a close working arrangement with their product manufacturers and the ongoing exchange of information. Maintaining long-term relationships between the partners is particularly beneficial, as it builds trust — which leads to fast product development and the quicker release of new selections, Green states.

“Having clarity over the types of items that retailers are after is very helpful,” Cardillo adds. “There are also opportunities to become more innovative.”

Indeed, because many consumers are willing to try new flavors, retailers could risk offering products that are out of the mainstream, she states.

“They can have fun with their selections, get creative and merchandise selections that consumers don’t usually see sitting next to the national brands on store shelves,” Cardillo adds.

Provide a taste test

Sampling is an excellent way to build sales for quality own-brand sauces and marinades.

“An exceptional product speaks for itself,” Barcelona states. “While it is great to talk about products through marketing programs, once the end user tastes an item — and it stands on its own — there is not a need for many more words.”

Sampling of newer products also builds shopper trust, Cardillo adds.

“Many shoppers are wary of buying private label items, and sampling helps draw them to look at the label and see the quality and ingredients,” she states. “If they like a particular item, they also are more likely to try other private label products.”

That includes the ethnic-oriented sauces and marinades such as Asian- and Mexican-oriented options that are becoming increasingly popular, she notes.

“Foods from those cultural communities are getting into the mainstream and consumers — particularly younger shoppers — are more open to the tastes and textures,” Cardillo says. “It’s a big category trend.”

Do add marinades that complement alternative proteins such as vegetable protein.

Don’t ignore the trend toward bolder, spicier flavors.

Do invest in a sampling program for new own-brand sauces and marinades

Don’t be heavy-handed with artificial flavors, colors and preservatives.