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DELI BUSINESS MARKETING MERCHANDISING MANAGEMENT PROCUREMENT ALSO INSIDE CROSS-MERCHANDISING FOODS FROM ITALY FOODSERVICE DIPS & SPREADS ETHNIC FOODS INDIAN FOODS SALADS & SIDES CHEESE MERCHANDISING GOAT CHEESE WISCONSIN CHEESE SPECIAL SECTION DELI MEAT GUIDE 2009 JUNE/JULY 2009 $14.95 5th Annual People’sAward SALUTING INDUSTRY LEADERS DELI BUSINESS

JUNE/JULY 2009 $14.95 5thAnnual People’sAward · JUNE/JULY 2009 DELI BUSINESS 3 MERCHANDISING REVIEWS Cross-Merchandising Builds Sales.....30 Building a higher ring is the name

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Page 1: JUNE/JULY 2009 $14.95 5thAnnual People’sAward · JUNE/JULY 2009 DELI BUSINESS 3 MERCHANDISING REVIEWS Cross-Merchandising Builds Sales.....30 Building a higher ring is the name

DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT

ALSO INSIDECROSS-MERCHANDISING

FOODS FROM ITALYFOODSERVICE

DIPS & SPREADSETHNIC FOODSINDIAN FOODS

SALADS & SIDESCHEESE MERCHANDISING

GOAT CHEESEWISCONSIN CHEESE

SPECIAL SECTIONDELI MEAT GUIDE 2009

JUNE/JULY 2009 $14.95

5th AnnualPeople’s AwardSALUTING INDUSTRY LEADERS

DEL

IBUSIN

ESS

Page 3: JUNE/JULY 2009 $14.95 5thAnnual People’sAward · JUNE/JULY 2009 DELI BUSINESS 3 MERCHANDISING REVIEWS Cross-Merchandising Builds Sales.....30 Building a higher ring is the name

JUNE/JULY 2009 DELI BUSINESS 3

MERCHANDISING REVIEWSCross-Merchandising Builds Sales . . . . . . . . . . 30Building a higher ring is the name of the game

The New Alternative To Restaurants . . . . . . 42Top-quality deli offerings can be positioned as a way for cash-conscious consumers to indulge their yearnings for restaurant dining

Life Of The Party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Dips and spreads offer the at-home entertainer something special, easy, and affordable

17

CONTENTSJUNE/JULY ’09 • VOL. 14/NO. 3

COVER STORY

FEATURESFoods From Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35American consumers may be spending less, but many are still willing to pay a higher price for Italy’s amazing deli foods

World Cuisine OffersWorld Of Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Ethnic foods can help retailers drive their business instead of losing out

Passage To India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Once hard-to-find Indian foods now make regular appearances in mainstream delis around the United States and Canada

42DELI 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

35

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78DELI 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

4 DELI BUSINESS JUNE/JULY 2009

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

COMMENTARIESEDITOR’S NOTETrue Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

PUBLISHER’S INSIGHTSWe Need A New Food-Safety Outlook. . . . . . 14

MARKETING PERSPECTIVEBeyond Bells And Whistles:Basics Matter To Shoppers . . . . . . . . . . . . . . . . . . . . . . . . 96

CONTENTSJUNE/JULY ’09 • VOL. 14/NO. 3

IN EVERY ISSUEDELI WATCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

TECHNEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

INFORMATION SHOWCASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

BLAST FROM THE PAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

SPECIAL SECTIONDELI MEAT GUIDE

52

CHEESE CORNERMerchandise Like You Mean It. . . . . . . . . . . . . . . . . . . . 82When times get tough, cheese departmentsturn to creative merchandising solutions

Fresh For Summer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Goat cheese goes casual for warm weather dining

World Class CheesesFrom The Heartland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Wisconsin cheeses are taking on allcomers and beating them handily

PROCUREMENTThe World Is Flat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Flatbreads are more versatile than ever

Craving Comfort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78During difficult times, consumers gravitate towardfavorite salads and sides — often with a new twist

Deli Meats 2009The Deli Meat Dilemma

Dry-Cured Deli MeatsThe Private Label Evolution63

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6 DELI BUSINESS JUNE/JULY 2009

DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT

COM

ING

NEXT

PRESIDENT & EDITOR-IN-CHIEFJAMES E. PREVOR

[email protected]

PUBLISHING DIRECTORKENNETH L. WHITACRE

[email protected]

PUBLISHER/EDITORIAL DIRECTORLEE SMITH

[email protected]

MANAGING EDITORJAN FIALKOW

[email protected]

CIRCULATION MANAGERKELLY ROSKIN

[email protected]

PRODUCTION DIRECTORDIANA LEVINE

[email protected]

ART DIRECTORJACKIE TUCKER

[email protected]

PRODUCTION DEPARTMENTFREDDY PULIDO JOANNA ARMSTRONG

NATIONAL SALES MANAGERRICK PURCARO

[email protected]

ADVERTISINGCOLLEEN MORELLI

[email protected]

ERIC [email protected]

RESEARCH DIRECTORSHARON OLSON

CONTRIBUTING EDITORSCAROL M. BAREUTHER ELIZABETH BLAND

JOANNE FRIEDRICK LISA FUTTERMANBOB JOHNSON KRISTINE HANSEN HOWARD RIELL

JULIE COOK RAMIREZ JODEAN ROBBINSLISA WHITE TRISHA J. WOOLDRIDGE

SEND INSERTION ORDERS, PAYMENTS, PRESS RELEASES,PHOTOS, LETTERS TO THE EDITOR, ETC., TO:

DELI BUSINESSP.O. BOX 810217, BOCA RATON, FL 33481-0217

PHONE: 561-994-1118 FAX: 561-994-1610E-MAIL: [email protected]

PHOENIX MEDIA NETWORK, INC.CHAIRMAN OF THE BOARD

JAMES E. PREVOR

EXECUTIVE VICE PRESIDENTKENNETH L. WHITACRE

SENIOR VICE PRESIDENTLEE SMITH

GENERAL COUNSELDEBRA PREVOR

EXECUTIVE ASSISTANTFRAN GRUSKIN

TRADE SHOW COORDINATORJACKIE LOMONTE

DELI BUSINESS IS PUBLISHED BYPHOENIX MEDIA NETWORK, INC.

P.O. BOX 810425,BOCA RATON, FL 33481-0425

PHONE: 561-994-1118 FAX: 561-994-1610ENTIRE CONTENTS © COPYRIGHT 2009

PHOENIX MEDIA NETWORK, INC.ALL RIGHTS RESERVED.PRINTED IN THE U.S.A.

PUBLICATION AGREEMENT NO. 40047928

SUBSCRIPTION & READER SERVICE INFOIf you would like to subscribe to DELI BUSINESS for the print and/or electronic ver-sion, 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 ofcharge to the electronic version. In addition, you can read the electronic versionand go directly to a company’s Web site through our special hot link feature. Bestof all, you may download and print any article or advertisement you’d like.

FEATURE STORIESEntréesMexican Food

MERCHANDISING REVIEWSPâtéCateringFresh Produce

PROCUREMENT STRATEGIESHolidaysBack-To-School

PREPARED FOODSSoups

DELI MEAT TurkeyHoliday Hams

CHEESESItalian CheesesAmerican Specialty Cheeses

COMING IN OCTOBER/NOVEMBER 2009Technological advances have forever changed the way businesses react

to and respond to food-safety challenges in general and foodborne illnessbreakouts in particular. What preparations for the inevitable has your com-pany made?

SUSTAINABILITYDELI BUSINESS examines the latest developments in sustainability and

how current economic conditions are impacting the movement. We look atthe issue of how cash-strapped companies and consumers are reconcilingeconomic and environmental concerns.

COMING NEXT ISSUE IN AUG/SEPT 2009

“LETTUCE CREATE” INTERACTIVE

CHILDREN’S EVENT

Salyer American Fresh Foods and The CulinaryCenter of Monterey, both of Monterey, CA, hosted“Lettuce Create” at the Culinary Center in May,which is National Salad Month. Chef Mary Pagan,

owner of the Culinary Center, held an interactive education classwhere children ages 6 and up learned firsthand how to create the ultimate salad.

After the class, the children and their parents sampled the salads the childrenmade. Each parent received recipe cards from the Culinary Center and an organicshopping tote. They also had a complimentary shopping opportunity at the SalyerAmerican Fresh Foods Farmer’s Market Stand set up in the Culinary Center. Par-ents filled up their tote with lettuce to take home, and the kids received a mini-gar-dening kit so they can plant seeds and grow their own lettuce.

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D E L I W A T C H

8 DELI BUSINESS JUNE/JULY 2009

DELI WATCH is a regular feature of DELI BUSINESS. Please send information on new products, personnel changes, industry, corporateand personal milestones and available literature, along with a color photo, slide or transparency to: Editor, DELI BUSINESS, P.O. Box810217 • Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • E-mail: [email protected]

Transitions

ALL-NATURAL &PORTION CONTROLJust Desserts, Oakland, CA, hasbeen baking trans-fat free since1974. Its all-natural desserts use noartificial ingredients or preserva-tives. The company offers a rangeof portion-control options includ-ing assorted mini loaves, glazedmini bundts, frosted cupcakes,chocolate-dipped Madeleines,brownie bites, oatmeal raisin bites,pecan blondie bites and singleserve cakes. Many are available inbulk and in grab-and-go packaging.www.justdesserts.com

IDDBA Booth #3477

Announcements

HALL OF FAME INDUCTEERoth Käse USA, Monroe, WI,announces that Bob Constantino,vice president of retail sales, hasbeen inducted into the CaliforniaCheese & Butter Association Hallof Fame. A dairy and deli executivewith 30 years experience, he joinedRoth Käse USA in April 2008 andleads all sales-related activities forthe company’s cheeses in the retailsales channel. He will be honoredfor his leadership, integrity and con-tributions to the dairy industry dur-ing his career.www.rothkase.com

IDDBA Booth #2225Fancy Food Show Booth #176

SMALLER SIZE PACKAGINGAlexian Pâté & Specialty Meats,Neptune, NJ, is seeking to broad-en the market for pâté with newsmaller-slice serving sizes. The new5-ounce sizes are available in Alex-ian’s six most popular varieties. Inaddition to providing added retailerversatility in the case or on theshelf, the smaller serving sizes areintended to increase consumer trialand add to usage occasions. Thenew sizing also appeals to smallerhouseholds.www.alexianpate.com

IDDBA Booth #1961Fancy Food Show Booth #954

MARKETING PROGRAMLand O’Lakes, Inc., St. Paul, MN,has launched a new shopper mar-keting program, featuring memo-rable moment meal occasionsthroughout the year. The shoppermarketing program, developed andexecuted by MarketingLab of Min-neapolis, will run in select North-east retailers in their service delisand independent delis. The pro-gram will feature a counter card,static cling, high-value coupon andcross-category signage linked tothe specific meal occasion.www.landolakesinc.com

IDDBA Booth #2539

Marisa Churchill has joinedG.L. Mezzetta, Inc., AmericanCanyon, CA, as executive chef.She had been a consulting chefwith the company. Recognized inthe San Francisco Bay area for herwork at Rubicon, The SlantedDoor, LuLu, Ame and Yoshi’s,Churchill also competed in the sec-ond season of Bravo’s Top Chef.She will oversee all Mezzetta’sbrands and ensure its specialtyproducts, sauces and marinades areproduced with exceptional flavor,quality, and consistency.www.mezzetta.com

Fran Haddix has been appointedquality assurance manager at VenusWafers, Inc., Hingham, MA. In thisnewly created position, she willensure top-to-bottom productionquality, including supplier approvals,establishment and enforcement ofgood manufacturing standards,online checks and responsive cus-tomer support. With Venus foralmost 20 years, she has led thecompany through several successfulaudits since 2002, including achiev-ing Superior AIB GMP rating andQAI organic certification.www.venuswafers.com

IDDBA Booth #2569Fancy Food Show Booth #1747

CONSUMER SWEEPSTAKESNonni’s Food Co., Inc., Tulsa, OK,has launched the New York Style-brand Broadway! New YorkInstant Win Sweepstakes, whichwill run until Nov. 30. Grand-prize:4-day trip for four to New YorkCity, round-trip air transportation,hotel accommodations, four tick-ets to two Broadway shows and$1,000. Ten first-place winners: 3-day trip for two to New York City,transportation, accommodations,two tickets to one Broadwayshow and $750.www.newyorkstyle.com

IDDBA Booth #1955

CONTROLLINGFOODSERVICE COSTSUSA Rice Federation, Columbia,MD, says U.S.-grown rice is anideal option for balancing foodcosts and delivering meals that areon-trend, profitable and appealing.Foodservice operations canincrease value to their customersand boost profit margins by includ-ing U.S. rice in menu options. Atless than 10¢ per serving, rice helpsoffset the cost of more expensiveproteins on the plate and revitalizesleftover ingredients.www.usarice.com

Announcements

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JUNE/JULY 2009 DELI BUSINESS 9

D E L I W A T C H

TAMPER-RESISTANT LIDSWilkinson Industries, Ft. Calhoun,NE, announces a new tamper-resistant, leak-resistant lid innova-tion for its deli square packagingline — the EcoServe tamper resis-tant lid, made with earth friendlyNaturesPLAstic with Ingeobiopolymer. This results in less fos-sil fuel used and fewer greenhousegases for producing plastic biopoly-mer than traditional oil plastics.The new tamper-resistant lid fitsall sizes of EcoServe Square con-tainers and eliminates the need forshrink bands.www.wilkinsonindustries.com

IDDBA Booth #4083

AGED GOAT CHEESEFinlandia Cheese Inc., Parsippany,NJ, has added Black Label Premi-um Aged Goat Cheese to its lineof specialty cheeses. A premium,all-natural cheese imported fromHolland and aged 14 months, it hasa velvety, semi-firm texture with acomplex, slightly sweet, caramelflavor and slightly crumbly texture.No hormones added.www.finlandiacheese.com

IDDBA Booth #3331Fancy Food Show Booth #2771

SEA SALT BLENDSOld World Spices and Seasonings,Kansas City, MO, is launching fivenew Sea Salt Blends: Sea Salt &Cracked Pepper, Chile & Lime,Bayou BBQ Sea Salt, ChesapeakeBay Sea Salt and Asian Sea Salt.The company’s new program givesmanagers an easy way to produceflavorful, upscale chicken, fish andpork entrées using traditional ovensor rotisseries.www.oldwordspices.com

IDDBA Booth #3954

GREEK YOGURT DIPSSanta Barbara Bay, Buellton, CA,introduces All Natural GreekYogurt Dips made with VoskosGreek yogurt. Greek-style yogurtis one of the fastest growing cate-gories in the dairy industry. Avail-able in five flavors — CucumberDill, Thai Three Pepper, RoastedRed Pepper & Asiago Cheese,Zesty Ranch and Spinach. Avail-able in 12-ounce containers thatretail for around $4.99www.santabarbarabay.com

IDDBA Booth #2059

MIX & MATCH MINISRoth Käse USA, Monroe, WI, hasintroduced Mix & Match Minis, aline of 4-ounce precut, individuallywrapped artisan cheeses. Morethan a dozen cheeses are offered,including many of Roth Käse’s mostpopular and award-winning cheesessuch as Buttermilk Blue, GrandCru Gruyère, GranQueso, RedSpruce Cheddar and Van GoghGouda. They’re the perfect avenuefor building a high-end cheese trayfor sampling, snacking or parties.www.rothkase.com

IDDBA Booth #2225Fancy Food Show Booth #176

UNWRAP & ROLLBelGioioso Cheese, Inc., Denmark,WI, has launched Unwrap & Roll,made from BelGioioso’s award-winning fresh Mozzarella formedinto a thin, ready-to-use sheet. Dis-tinctive packaging includes easy-to-read instructions and explains theuses, giving consumers simple ideason how to create and serve. All-natural with no preservatives andno added hormones. Aavailable in8-ounce retail pack as well as food-service or club-store pack.www.belgioioso.com

IDDBA Booth #2129Fancy Food Show Booth #3237

AVOCADO HUMMUSBLENDYucatan Foods, Los Angles, CA,has launched Yucatan Avo-Hum-mus, 50 percent avocado and 50percent classic hummus in a re-seal-able 8-ounce tub. It combines gold-en ripe Hass avocados with rich,creamy hummus. Sold in the delisection, each clear tub emphasizesfreshness and quality. Halal andKosher certified, it can be used as acomplement to any dish or eaten asa healthful snack. Suggested retail:$3.19 to $3.99 per tub.www.yucatanfoods.com

IDDBA Booth #3260

HEAT AND EATSANDWICHESStefano Foods, Charlotte, NC,offers four new sandwiches to meetconsumer requirements for eco-nomical, quick, easy meals, whileaddressing retail needs for com-pelling merchandising, adequaterefrigerated shelf life and attractiveretail pricing. The line includesChicken Caesar Stuffed GrilledSandwich, Italian Stuffed GrilledSandwich, Pepperoni & CheeseStromboli, and Sausage, Pepperoni& Cheese Stromboli.www.stefanofoods.com

IDDBA Booth #1357

DELI WATCH is a regular feature of DELI BUSINESS. Please send information on new products, personnel changes, industry, corporateand personal milestones and available literature, along with a color photo, slide or transparency to: Editor, DELI BUSINESS, P.O. Box810217 • Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • E-mail: [email protected]

New Products

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D E L I W A T C H

10 DELI BUSINESS JUNE/JULY 2009

FINE CORSICAN CHEESESFromagerie Ottavi, Ghisonaccia,Corsica, will present its newestproducts — a grated ewe's milkcheese and a flavorful spread ofcombined goat's milk and ewe'smilk cheeses — at the SummerFancy Food Show. The companyhas a deep history in cheesemakingin Corsica. Many generations ofthe Ottavi family have lived in theCorsican mountains, raising sheepand goats. The company offers awide range of traditional hard andsoft cheeses rich in regional flavor.

Fancy Food Show Booth #728

FROZEN TORTILLA STRIPSSugar Foods Corp., Sun Valley,CA, introduces Fresh GourmetTortilla Strips, ready-to-use tortillastrips. Versatile crunchy toppingseliminate labor and prep costs, savetime and energy, and add textureand crunch to your menu. Shelf-stable with 100 percent yield — noneed for refrigerated or frozen stor-age, no oil to prepare and no waste.Just open the bag and toss ontowhatever you’re making. Availablein stay-fresh 1-pound bags.www.foodservice.freshgourmet.com

MAV-WICHSANDWICH PREPMaverick Cuisine, Waldwick, NJ, isthe U.S. distributor of a patentedsystem from Orequip, Bouc-Bel-Air, France, for the preparation andpresentation of fresh, nutritionalsandwiches under the Mav-wichname. It produces cold or hot fillingsin fresh baked warm bread. Fillingsare pre-assembled on small metaltrays to fit the bread size. Bread iskept separate, fresh and warm.Customer chooses filling and bread,then the sandwich is assembled toorder in less than 10 seconds.www.maverickcuisine.com

DIAGNOSTIC TOOL KITPakSense, Inc., Boise, ID, hasintroduced a cold-case diagnostictool kit to monitor cold cases atstore level. A predictive mainte-nance tool, Ultra TK provides dataon how cold cases are functioning,if proper temperatures are beingmaintained, and if corrective actionis needed. This proactive approachenables retailers to reduce productloss due to cold case failures, toincrease food safety and productquality, optimize cold case mainte-nance schedules, and to reduceenergy expenditures.www.paksense.com

DELI WATCH is a regular feature of DELI BUSINESS. Please send information on new products, personnel changes, industry, corporateand personal milestones and available literature, along with a color photo, slide or transparency to: Editor, DELI BUSINESS, P.O. Box810217 • Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • E-mail: [email protected]

New Products

Page 12: JUNE/JULY 2009 $14.95 5thAnnual People’sAward · JUNE/JULY 2009 DELI BUSINESS 3 MERCHANDISING REVIEWS Cross-Merchandising Builds Sales.....30 Building a higher ring is the name

As the industry gathers in Atlanta for the annualInternational Dairy- Deli-Bakery Association Con-vention and Exposition, it finds itself, as Americaand the world find themselves, in a startlingly dif-ferent position from last year.

Those whose businesses survived the financialimplosion now find themselves in a nasty recession.Although some see signs of a recovery or at least stabili-ty, there is also a sense of fragility in the world. That astate such as California or a country such as Icelandcould go bankrupt is not beyond the realm of possibility.If the federal treasury acts to support all the weak play-ers, many worry about the prospect for inflation as mas-sive amounts of money are created to fund the bailoutsand to stimulate the economy.

Much effort has been expended this year as execu-tives — on both the buy side and sell side — havesearched for opportunities amidst the ruin. The mostobvious one has been an attempt, particularly with pre-pared-food offerings, to capture the business of thoseconsumers who have been “trading down” to retailfrom restaurants.

There has also been a revival of interest in privatelabel, with more and more stores looking to offer analternative to consumers looking to trade down frombranded product in order to economize.

One also sees a change in promotion, with manymore supermarkets offering draws such as 3-day spe-cials over the weekend on large-size packs as they fightdesperately to dissuade consumers from shopping at aclub store.

Aldi opened its 1,000th store in America while Wal-Mart and McDonald’s proved consumers were still buy-ing, maybe just not where they were buying before.

If we view the IDDBA as an opportunity for a col-lective huddle, we may come out of Atlanta with anindustry game plan that leads to success in the currentenvironment. We would suggest three useful points:

1. Reacquaint ourselves with the consumer.“Focus on the consumer” may sound trite, but it is

very possible one’s vision of the consumer is wrong orout of date.

In the bagged salad category, Dole Fresh VegetableCompany did a study of consumers of bagged salads.Conventional wisdom said the category was driven by“convenience,” with the predominant user being a har-ried working mother throwing dinner together for thefamily or a secretary stashing a bag of salad for lunch inthe office fridge.

It turned out bagged salads are a rather upscaleproduct and convenience purchasers are more epicure-

an; they valued that they didn’t have to buy seven dif-ferent lettuces to get the base for their salad. They typi-cally did not eat just the bagged salad but added manyfavorites to the base.

Their biggest frustration? They couldn’t open the bagwithout everything bursting out or having to use scis-sors! With this vision of the customer, Dole is launchingnew “easy-open”packaging for its bagged salads.

2. Reconsider the meaning of value.It is easy to think value and price are identical terms

but, in fact, consumers have many different concernsand look to their retailers to ensure everything fromfood safety to the fair treatment of employees all downthe supply chain.

If consumers seem to value only price, that may tellyou as much about your communication program as itdoes about the consumer. If you don’t differentiatebetween products based on values beyond the weight,it is hard for consumers to do so.

3. Try to sell quality in small quantities.So often we think of the housewife with a bunch of

kids as our best customer. Yet that consumer, veryprice-conscious and buying a lot of food, is likely tocherry-pick sales, use every discount and coupon, andthus produce small margins even if she buys a lot.

The effort spent pursuing this low-margin businessmay be better spent promoting opportunities to sell anice piece of specialty cheese, a little smoked fish or asignature prepared entrée.

With obesity a big problem in America, we need toswitch our value perceptions from a lot of cheap stuff tosmall amounts of good stuff, and this creates opportuni-ties for retailers to jump on board the bandwagon.

There is, of course, no one answer. In a nation asdiverse as ours, the offering of a uniform assortmentacross all demographics is bound to be a loser.

Today, though, we have tools to understand ourcustomers better, and the sea change in the economygives us a reason to reexamine old assumptions.

If we leave Atlanta as anindustry more focused onour customers, prouder ofthe value our supply chainscreate and deliver, and moreintent on aligning with quali-ty and health, we willremember, long after mem-ory of this recession hasfaded, the new burst ofenergy we derived fromthe annual conclave. DB

12 DELI BUSINESS JUNE/JULY 2009

F R O M T H E E D I T O R ’ S D E S K

by Jim Prevor, Editor-in-Chief True Values

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The numbers are scary. Even with the recent spateof recalls for products previously thought of as verysafe, the last year is just a touch of what is comingdown the pike. Unfortunately, we are about toenter a public relations nightmare.

The opening paragraph of Food-Related Illness andDeath in the United States, a 1999 study from the Cen-ters for Disease Control and Prevention (CDC), readsas follows: “To better quantify the impact of foodbornediseases on health in the United States, we compiledand analyzed information from multiple surveillance sys-tems and other sources. We estimate that foodbornediseases cause approximately 76 million illnesses,325,000 hospitalizations, and 5,000 deaths in the Unit-ed States each year. Known pathogens account for anestimated 14 million illnesses, 60,000 hospitalizations,and 1,800 deaths. Salmonella, listeria, and toxoplasmaare responsible for 1,500 deaths a year, more than 75percent of those caused by known pathogens, whileunknown agents account for the remaining 62 millionillnesses, 265,000 hospitalizations, and 3,200 deaths.Overall, foodborne diseases appear to cause more ill-nesses but fewer deaths than previously estimated.”

This 10-year-old national study, the most recent andmost quoted, relies heavily on estimates because mostpeople with foodborne illnesses don’t go to the doctorand most of those who do are not reported to healthauthorities nor is further testing ordered. The studyestimates “1.05 episodes per person per year of acutegastrointestinal illness characterized by characterized bydiarrhea, vomiting, or both.”

When the numbers are adjusted for other factors,the final estimate yields 76 million illnesses, including“62 million cases of gastroenteritis of unknown etiologydue to foodborne transmission each year.”

So that occasional 24-hour “bug” is not the flu — it’sdue to something ingested. While it’s logical to assumesome of the findings have changed in the last 10 years,there’s nothing to say the overall gross numbers havechanged in a way that is statistically significant.

However, two factors are changing the face of theindustry and affecting both industry and consumers inpositive as well as negative ways.

The first is the ability to “DNA” bacterium and get afingerprint for individual strains, allowing scientists toconnect seemingly unrelated incidents. Increasinglyimportant in a world where products may be soldnationally or internationally and ingredients may be usedin multiple ways often not readily apparent in the fin-ished product, this allows researchers and health offi-cials to distinguish between different cases of the same

pathogen. This methodology led to the discovery ofproducts previously thought to be safe food sources,such as peanuts and peanut butter, and to the recogni-tion they were sources of a foodborne illness outbreak.

However, without a national reporting agency togather information and quickly find similar cases, thescience lacks practicality. And that leads to the secondfactor — the development of PulseNet, a national net-work of public health and food regulatory agency labo-ratories coordinated by CDC. The network includesstate and local health departments as well as federalagencies. PulseNet agencies perform the fingerprinting(molecular subtyping) of bacteria that is then enteredinto a national database. This link allows seeminglyunrelated incidents to be recognized as originating froma single source, thereby allowing health officials to getto the core of an outbreak.

The expanding network will give doctors a reason totest patients for foodborne illnesses. In the past, unless arash of people, all complaining of severe stomach pain,diarrhea and/or vomiting after eating the chicken noodlecasserole at the church potluck, went to a local doctoror emergency room, no connection would be made.Even if someone were tested, there would be no corre-lation to sufferers who got sick from the same producthundreds of miles away.

As PulseNet becomes more widely used, the indus-try is going to find itself in a difficult place. Our foodsupply will get safer as mysteries about why people getsick are solved, but there will also be a temptation topaint companies and individuals as criminals. Some ofthe people recently found to be responsible for largeoutbreaks are despicable and deserve the full wrath ofthe law for their deliberate oversights and cover-ups,but other companies run by stalwart citizens who arestellar examples of what executives should be will alsoget caught up in this new era.

Approximately 38 million incidents foodborne illnessfrom unknown sources occur each year; bacteria, para-sites or viruses we may not know about are transmittedalong unknown pathways.This can become a publicrelations debacle.

Transparency is key, butit’s important governmentagencies don’t hold busi-nesses up to public blamebefore concrete results arein. The recent recalls arejust the beginning of a newera of safe food. DB

14 DELI BUSINESS JUNE/JULY 2009

by Lee Smith, Publisher WeNeed A New Food-Safety Outlook

P U B L I S H E R ’ S I N S I G H T S

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The Publishers Of DELI BUSINESS

Are Proud To Announce TheLaunch Of A New Magazine

For information regarding advertisingand distribution opportunities, call 561.994.1118

or e-mail Lee Smith at [email protected].

CheeseCONNOISSEUR magazine is a lifestylepublication providing sophisticated, well-educated

foodies and industry professionals with informationabout specialty cheeses, celebrity cheesemakers

and chefs, wines, travel opportunities and com-plementary foods and beverages.

By distributing to consumers through foodretailers, the unique strategic distribution

and circulation model offers access toupscale and affluent homeowners, con-

sumers and professional decisionmakers.

Go to www.cheeseconnoisseur.comfor more information.

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5th Annual People’s AwardSALUTING INDUSTRY LEADERS

JUNE/JULY 2009 DELI BUSINESS 17

Errico AuricchioSteve EhlersCraig InabinettBob NectowJerry ShafirJ.K. Symancyk

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18 DELI BUSINESS JUNE/JULY 2009

How did you get started in the industry?I was born into the cheese business in Italy and was part of the

fourth generation of family members who were part of the business. In1979, I moved my family to the United States to start a company thatwould create great Italian cheeses.

How has your career evolved over the years?My move to the United States was a big change and a totally new

adventure. I was the first employee and now we employ around 350people, so my career has progressed and evolved with each new initia-tive to grow BelGioioso.

What positions have you held in industry organizations?I am too outspoken to be a part of industry organizations, but I

was a founding member of the Wisconsin Specialty Cheese Instituteand have donated time and resources to help host the AmericanCheese Society Conference in Green Bay in the past.

What’s your leadership philosophy?Pay attention to details, lead by example, do your job efficiently and

learn from your mistakes.

What hobbies do you enjoy outside work?I enjoy antiquing with my wife, boating and biking to relieve stress.

What’s your opinion of social networking sites? Do youtweet? Have a Facebook page, etc.?

These can be good for certain people, but not for me.

What inspires you to make a difference in today’s world?My dream is that everyone can eat good cheese — BelGioioso —

at a reasonable price!

What charity is your personal favorite?The Catholic Church and St. Norbert College.

What’s your advice to people starting out in this industry?You need patience because it takes a long time to succeed and a

total commitment to quality.

What do you predict will be the next hottest deli trend?Convenience has always been a driving factor to success in the

deli. Items like pre-sliced fresh Mozzarella and our new Unwrap &Roll Fresh Mozzarella Sheet will be winners.

What’s your favorite read?Current financial/business magazines and newspapers such as The

Economist, Forbes and Financial Times.

Errico AuricchioPRESIDENT

BelGioioso Cheese Inc.Denmark, WI

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20 DELI BUSINESS JUNE/JULY 2009

How did you get started in the industry?My father was in the traditional grocery business. I remember tak-

ing inventory — counting cans of corn — at the age of six. I workedon and off while going to school. I traveled to France in the early ’70sand came back with a very different outlook about food. Up untilthen, we were the typical corner grocery store.

When you grow up in the grocery business it becomes a way oflife. My father is 85 and still comes to work every day.

How has your career evolved over the years?We had a decision to make in the early ’70s when the first big-box

stores started to appear. Over the last 35 years, we’ve transitioned our1600-square-foot traditional grocery store into a cheese, gourmet, deli,catering and gift business in the same space. Over the last eight years,we’ve been very active in promoting American artisan cheese in gener-al and Wisconsin producers in particular. Even though we’ve evolved,my father’s motto, “Quality, service and a fair price,”has always beenconstant. We’ve always stressed customer service and satisfaction sowhat has changed was only the product and how it was delivered.

What positions have you held in industry organizations?I’m currently on the board of directors of the American Cheese Soci-

ety and also on the board of directors of the Dairy Business InnovationCenter in Wisconsin, which works with Wisconsin cheese producers.

What’s your leadership philosophy?I always try to treat people with respect whether employees or

customers.

What hobbies do you enjoy outside work?Reading, computers and petanque.

What’s your opinion of social networking sites? Do youtweet? Have a Facebook page, etc.?

We have Facebook and Twitter sites for our business. Right now

they’re not the best for business and leave a lot to be desired but Ithink they’ll continue to evolve and become a viable tool for business.Internet-based business networking sites will be an important tool tothe upcoming generations.

What inspires you to make a difference in today’s world?I’m fortunate to have the time and opportunity to be able to give

back in some manner. Working with our local cheesemakers and localfood producers is very rewarding. I always try to take time to sit downwith emerging producers and explain what I know about the foodbusiness — from production to packaging to distribution. More oftenthan not, I tell people they need to raise the prices they charge or theywon’t stay in business.

What charity is your personal favorite?Pretty much anything that’s food related, whether it’s product for

food pantries or fund-raisers for local groups. We try to donate time,product and knowledge whenever we can.

I also like to work with our local Alliance Française because Ibelieve we need to be open to other cultures and ideas.

What’s your advice to people starting out in this industry?Work hard and sell a great product — one that you can have confi-

dence in. Give great service, go to food shows, network with peoplewho have been successful and get involved with trade groups.

What do you predict will be the next hottest deli trend?More locally produced, higher quality food. People want to know

where and how their foods are produced and have that information tomake the decision they can support that product with a purchase.

What’s your favorite read?Food Matters by Mark Bittman. A great book about food and

choices we can make. A very honest book without being preachy.

Steve EhlersPRESIDENT

Larry’s Brown Deer Market, Inc.Brown Deer, WI

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22 DELI BUSINESS JUNE/JULY 2009

How did you get started in the industry?I started in the industry part-time in high school. I’ve had the

opportunity to work in different departments of the groceryindustry and as my career progressed, I found myself in thedeli/bakery department.

How has your career evolved over the years?Each experience has been a steppingstone to learn and grow for

my future. The people I’ve worked with and opportunities I’ve hadhelped my career evolve.

What positions have you held in industry organizations?I’ve participated as requested with various organizations and

companies such as Rich’s Round Table and DELI BUSINESS’s PreparedMeal Round Table.

What’s your leadership philosophy?I plant seeds to help others grow with knowledge, training, leader-

ship opportunities, and people skills.

What hobbies do you enjoy outside work?I enjoy spending time with my family, the church, as well as reading

and playing golf and tennis.

What’s your opinion of social networking sites? Do youtweet? Have a Facebook page, etc.?

I prefer face-to-face conversations or talking over the phone — butI have to admit, I do have a Facebook page.

What inspires you to make a difference in today’s world?The people who have helped me over the years have inspired me

to make a difference. This includes my family, friends and businesspartners. I pray I can give as much as I have received.

What charity is your personal favorite?United Way.

What’s your advice to people starting out in this industry?Use the resources available to you to help you expand your knowl-

edge and be true to your word.

What do you predict will be the next hottest deli trend?Call-ahead restaurant-quality meal solutions.

What’s your favorite read?Of course, DELI BUSINESS! And all of Sidney Sheldon’s novels.

Craig InabinettDIRECTOR OF DELI/BAKERY OPERATIONS

Piggly Wiggly Carolina CompanyCharleston, SC

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24 DELI BUSINESS JUNE/JULY 2009

How did you get started in the industry?I started in the retail industry growing up in my family’s businesses

in Massachusetts. Our stores were smaller specialty stores known forhigh-quality perishables. The work ethic and expertise I learned frommy dad and grandfather prepared me for what has become a personalpassion for great food and exceptional customer service.

How has your career evolved over the years?My career has taken me through many aspects of the retail busi-

ness, from store level department positions, overall store managementto a specialized focus on deli, prepared foods and specialty cheese. Inbetween were leadership roles in supply chain/procurement, perish-able sales & marketing, strategic development and meat operations. Ineach area of responsibility, I enjoyed success developing retail solutionsthat are relevant to my customer’s needs.

What positions have you held in industry organizations?The IDDBA does great work supporting the industry so I’ve applied

my available time to that organization and served on the board for anumber of years. I believe retail representation is critical to be sure thework is user-friendly and pertinent to the needs of the customer.

What’s your leadership philosophy?I believe in empowering your team to develop consumer solutions

within a defined strategy. I’m always at risk of flying too low, but I liketo get my hands in the weeds. Having a focused and resilient team is aprimary element to one’s success.

What hobbies do you enjoy outside work?I love the theater, cooking and playing in the garden. I’ve also devel-

oped quite a passion for exercising regularly. I’ve been the chair of thelocal school committee for a number of years. I don’t see that as ahobby but as doing my part to ensure our children are receiving or

being offered educational opportunities to prepare them for the future.

What’s your opinion of social networking sites? Do youtweet? Have a Facebook page, etc.?

My daughter is an avid user and is pushing me to get involved.Being “good old Dad”though, I’m still concerned about some of thesecurity issues. I do believe they’ve opened up a lot of doors to educa-tional and professional connections, and that is very exciting.

What inspires you to make a difference in today’s world?What drives me to make a difference in today’s world is my daugh-

ter. I believe part of my personal and professional success is having theability to support her in all her personal goals.

What charity is your personal favorite?I primarily focus on supporting local smaller charities with specific

needs helping children. They’re our future!

What’s your advice to people starting out in this industry?Understand that the retail food industry is an ever-changing and

fast-paced Industry.Your ongoing success is primarily linked to yourability to be totally focused on your customer and to have the abilityto develop solutions for their future needs.

What do you predict will be the next hottest deli trend?I think in many cases new trends are old successes packaged in dif-

ferent ways. Great food and innovative convenient solutions is the keyfor the future!

What’s your favorite read?I spend a lot of time seeking out new recipes so reading “foodie”

magazines is fun for me. I also like a good suspense novel on the beachnow and then, but that doesn’t happen too often.

Bob NectowVICE PRESIDENT DELI SALES

& MERCHANDISING

Stop and Shop/Giant of Landover SupermarketsQuincy, MA

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26 DELI BUSINESS JUNE/JULY 2009

How did you get started in the industry?My first jobs in the industry were as a busboy and waiter in a chain

restaurant during the summer after college. I liked the pace, the inten-sity during peak times, the interaction with customers, and, ultimately,the money. The schedule and lifestyle were grueling, though, and Iwas not sure I would work in food again when I went off to lawschool. Ten years later, however, following law school, a 5-year stint asan attorney in the corporate world, and an MBA, I went to work atLegal Seafoods’corporate offices.

How has your career evolved over the years?At Legal Seafoods, I was an in-house consultant to the president

and received broad exposure to many facets of the food industry. Iworked on site location, retail market concepts, commissary models,direct response opportunities and a variety of other food businessissues. In my third year there, I started working on a business plan forKettle Cuisine, and I left to start Kettle in August 1986. While I’vebeen president since Day 1, I was the sole salesperson until 1992. Idrove the refrigerated truck picking up ingredients and making deliver-ies for two years and did all of the jobs I could not afford to pay some-one to do until sales grew to higher levels. I continued to run the sales,marketing and finance functions until the late ’90s, when the businessbecame able to support professionals in these areas of leadership. Asan entrepreneur, you do almost all of the jobs in the early days and hirepeople as you can afford to.

What positions have you held in industry organizations?I recently finished my 2-year term as president of the Refrigerated

Foods Association, where I’ve been on the board of directors for thepast six years.

What’s your leadership philosophy?I believe leadership is built on integrity, transparency and trust. It’s

not about what you say, but what you do — how you interact withand treat customers, vendors, employees, community, etc. It’s alsoabout vision and communicating that vision. If people are going to fol-low you, they must have a sense of where you’re taking them, and thebetter you can delineate that, the stronger your support will be.

What hobbies do you enjoy outside work?I work out regularly, usually early in the morning, because I think

exercise brings positive energy, and I want to bring that energy to

work with me. I also referee rugby matches on Saturdays in the springand fall, which is a way to stay in the game I passionately played formany years — it’s a lot safer to referee than play at my age! Also, I’m abig music buff and go to hear live music of all kinds regularly.

What’s your opinion of social networking sites? Do youtweet? Have a Facebook page, etc.?

I hate to admit that I’m from the pre-social networking generation,and while I think I understand the concepts, I don’t have the energy toadd all of these relationships to my already too cluttered life.

What inspires you to make a difference in today’s world?Making a difference in today’s world and for future generations

seems to me to be the principal reason we’re here. I think we have aresponsibility to advance the plight of humanity in ways we see fit. Ofcourse, I acknowledge there are wide differences of opinions as tohow we go about that, but I’m a big believer in individual responsibilityand action.

What charity is your personal favorite?Cystic Fibrosis Foundation. My amazing niece Stephanie suffers

from this disease.

What’s your advice to people starting out in this industry?My advice is to be ready to work long and hard and to be resilient

when things don’t go well, but to enjoy the action and the highs of suc-cess. It’s an exciting and dynamic industry, and it’s a marathon, not asprint, so you must be prepared to be in for the long haul. And you’llmeet some amazing people and build lifelong friendships.

What do you predict will be the next hottest deli trend?I think the deli could become a formidable alternative to the fast-

casual foodservice segment, offering sandwiches, salads and soups fortake out and immediate consumption. The array of foods available inthe deli to make interesting lunch, dinner and snack offerings is a hugecompetitive advantage — however, creatively coming up with menusand merchandising execution will be the key to success.

What’s your favorite read?I love The Wall Street Journal, from the basic business reporting to

the off-the-wall stories covering human activities of all kinds from allover the globe.

Jerry ShafirPRESIDENT AND FOUNDER

Kettle CuisineChelsea, MA

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28 DELI BUSINESS JUNE/JULY 2009

How did you get started in the industry?My love of the food business formed early as part of growing up in

a family restaurant operation with my grandparents. I started my retailcareer working in warehouse/distribution while at the University ofArkansas. Upon graduation, I was promoted into my first merchandis-ing role in Wal-Mart International.

How has your career evolved over the years?International assignments presented a very entrepreneurial environ-

ment early in my career. I had the chance to be a part of startup opera-tions in Mexico, Brazil, Argentina, and China, with each providingunique responsibilities and growth opportunities. I worked my way upthrough buyer and category director roles before running the fresh busi-ness at Sam’s Club as DMM. I joined Meijer in 2006 as group VP ofperishables, moving into my current role in 2008. Through it all, I havebeen very fortunate to work with a variety of peers/mentors who haveinvested in my development and given me the opportunity to grow.

What positions have you held in industry organizations?I have been a part of IDDBA retail advisory committee in the past

and am joining the board of IDDBA this year. Other organizationmemberships include RILA, FMI, and PMA.

What’s your leadership philosophy?My father worked in a leadership role with Timex when I was

young. When I asked what he did, he replied that his responsibilitywas to help his team to do their jobs “willingly and well.”That thoughthas remained with me as I have grown in my career. Surround yourselfwith talented people and continue to invest in their development. Cre-ate an environment where roles and accountability are defined, peopleare empowered to make decisions, and both risk and healthy conflictare embraced by team leaders. Above all, listen to your team, recog-nize their efforts, and find ways to have fun.

What hobbies do you enjoy outside work?Spending time with my wife Jennifer and our children, Emma and

Turner, is the top priority. I also enjoy theater, travel and a variety ofsports, most notably basketball and golf.

What’s your opinion of social networking sites? Do youtweet? Have a Facebook page, etc.?

I’m amazed by the level of interaction that goes on within thesecommunities. I don’t participate, but my wife and many other familymembers are modest users. Their ability to keep up with extendednetworks of friends as a result is impressive. Watching the continuedevolution of this world and the inevitable impact of marketing withinthis space will be interesting.

What inspires you to make a difference in today’s world?My kids are my biggest motivator. Global connectivity continues to

make the world a smaller place and to exponentially accelerate pace ofchange. Knowing the number of issues my children are likely to faceleads me to make a difference.

What charity is your personal favorite?I support a number of worthwhile charities, but my personal

favorites are the Boys and Girls Club and the United Way. I serve onthe board of the Boys and Girls Club of West Michigan.

What’s your advice to people starting out in this industry?Be willing to step out of your comfort zone by pursuing roles that

will broaden your experience. Retail is one of the best industries forproviding that level of career variety, and the perspective you gainalong the way will be invaluable.

What do you predict will be the next hottest deli trend?Value will be top of mind in the near future, but health and well-

ness will work its way back to the top of the list in time. Great foodwill always be desired. The team that can deliver on all three of thesewill ultimately be most rewarded by their customers.

What’s your favorite read?I try to balance my entrée with some dessert. My most recent

developmental favorite was The Post American World by FareedZakaria, a good examination of the globalization of our economy. Forpure entertainment, I enjoy James Lee Burke and John Sandford.

J.K. SymancykEXECUTIVE VICE PRESIDENT,

MERCHANDISING

MeijerGrand Rapids, MI

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30 DELI BUSINESS JUNE/JULY 2009

Cross-Merchandising Builds SalesBuilding a higher ring is the name of the game

BY CAROL M. BAREUTHER, RD

Cheese and crackers. Sandwiches andchips. Rotisserie chicken and rolls.These hand-in-glove food combosentice consumers to move from a singleitem to a multiple item purchase. The

key to cross-merchandising is pulling itemsfrom other departments into the deli.

A second, perhaps even more importantbenefit to cross-merchandising is actuallypulling customers into the deli. That’s impor-tant because only 70.5 percent of supermar-ket shoppers visit the deli, according toWhat’s In Store 2009 from the InternationalDeli-Dairy-Bakery Association’s (IDDBA),Madison, WI.

People are eating out less due to theeconomy. The October 2008 ConsumerSpending Indicator study from Port Washing-ton, NY-based NPD Group says 57 percentof respondents were looking to spend lessmoney on dining out.

Tom McGlade, CEO, Rubschlager Bak-ing Corp., Chicago, IL, sees this trend as apositive. “More people are also entertaining athome, whether it be family parties or holidayentertaining, and that’s been an opportunityfor us. Sixty percent of our sales volume is incocktail breads.”

McGlade suggests retailers merchandise1-pound loaves of pre-sliced cocktail breadsin counter-top shippers, baskets, racks orshelving adjacent to sliced meats, cheeses,spreads, chicken salads, cheeses, hummusand pâté. This side-by-side placement helpsconsumers make the usages connection.Last year the company partnered in a pro-motion that featured its breads, Old Wiscon-sin-brand meats and a brand-name mustard,all tied together with a recipe/coupon book.

Other ‘carriers’ are ideally cross-merchan-dised in a similar fashion. For example, earlierthis year The Snack Factory, Princeton, NJ,ran a promotion featuring its Pretzel Crispsalong with a $2 coupon for Tribe-brand hum-mus at the Ralphs supermarket chain insouthern California. Milt Weinstock, market-ing director, explains, “There’s a bar code on

M E R C H A N D I S I N G R E V I E W

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32 DELI BUSINESS JUNE/JULY 2009

M E R C H A N D I S I N G R E V I E W

both products and consumers don’t get thediscount unless they buy both products.

“We’ll sometimes run demos to kick off apromotion. We’ve also done a joint shipperthat’s cross-merchandised in other depart-ments. Each bag of Pretzel Crisps is labeled‘in the deli section’ and this ultimately drivestraffic back to the deli. The more turn-keywe can make the cross-promotion for thedeli, the better,”Weinstock continues.

The ideal place to cross-merchandisecheese sticks is in the cheese aisle of the deli,says John Macy, president, John Wm.Macy’s CheeseSticks, Elmwood Park, NJ.“Or, they can be positioned next to hummusand dips or even olives and wine. The backof each box features a picture that calls outserving suggestions.”

According to Cathy Cunningham Hays,president, Bodacious Food Company, Jasper,GA, extending the party theme to picnickingand including her company’s cheese straws“would be a great way to put together sev-eral items all around a common theme andtie it together with coupons. Although con-sidering the number of brands involved, itwould have to be a chainwide promotionand run at least four weeks to be effective.”

Build The Sandwich RingMini sandwiches are one of the hottest

foodservice trends. Witness Burger King’sintroduction of BK Burger Shots and BKBreakfast Shots and McDonald’s test-mar-keting of its Snack Wrap Mac, a mini versionof its signature Big Mac.

Sliders or mini burgers, says ShelbyWeeda, president of King’s Hawaiian Bakery,Torrance, CA, “are a rising trend in super-market delis, too. For example, one of ournational supermarket retailers merchandisesthree sliders in a box to-go. As a result of thispopularity, we’ll be launching a new mini slid-er bun this summer.”

Go-withs are ideal cross-merchandisingingredients to boost the deli’s sandwich pro-gram’s ring.

Lee Whiting, national sales manager forDeep River Snacks, Old Lyme, CT, says,“Our unique-flavored chips are best mer-chandised near the deli counter. The idealspot is just off to the left or right where cus-tomers wait for made-to-order sandwiches.The worst place is behind the deli counter. Ifa customer has to ask you for them, likelyyou’re losing sales.” The benefit of merchan-dising an upscale chip, rather than a chip

from the grocery’s salty snack aisle, heexplains, “is margin. You can get $1.50 ratherthan 99¢ for a bag of upscale chips and makea 30 to 40 percent margin.”

A customer who buys chips to go with asandwich may pick up additional items if pre-sented in a 1-stop display, explains PierreCrawley, vice president of sales, PeppadewUSA, Basking Ridge, NJ. “For example, Pep-padew-flavored potato chips draw cus-tomers to the display, enabling them to beexposed to other value-added products.”Kroger and Giant are marketing PeppadewPiquante on the olive bar and other Pep-padew products in nearby displays, he adds,

Pickles are another traditional sandwichside. Step Espiritu, vice president of sales andmarketing, Van Holten’s, Inc., Waterloo, WI,notes, “Our single-serve individually pack-aged dill pickles have found success in conve-nience stores next to pre-made sandwichesand are now moving into the supermarketdeli. We also suggest merchandising them bythe deli check out register for impulse sales.”

Make A MealChicken is the top prepared food catego-

ry in the deli, with a 22 percent share of salesand 7.3 percent growth over the year prior,according to IDDBA’s What’s In Store 2009.

John McBride, vice president of sales forMagic Seasoning Blends, New Orleans, LA,

Reasor’s Groceries, a 15-store chainbased in Tahlequah, OK, startedcross-merchandising dinner rolls as

part of meal deals about a year and a halfago. “We serve King’s Hawaiian rolls aspart of a family-style heat-and-eat mealprogram that we offer on a weekly basisand for holidays,” says Mel Hall, director ofdeli and bakery.

Two examples that sell for $16.99 eachare the Chicken Fried Steak Dinner thatserves three to four and includes chickenfried steaks, mashed potatoes and gravy,green beans and King’s Hawaiian Rolls; andthe BBQ Rib Meal that offers a slab of St.Louis style ribs, coleslaw, BBQ beans andKing’s Hawaiian Rolls.

A menu board lists the weekly mealspecials so customers know exactly whatto pick up.

In addition, continues Hall, “We’ll offerdaily hot meal specials and sell a lot of the

4-pack King’s Hawaiian rolls at the sametime, especially with fried chicken.”

Both the 4-pack and 12-pack of King’srolls are merchandised in three locationswithin the deli. One is a display rack next tothe hot case, another is at the end of thespecialty bread and cracker rack, and thethird is adjacent to the specialty sandwiches.

“We’ll also sell pre-made sandwiches onKing’s Snacker Rolls and merchandise theseout of the cold case. We put a King’sHawaiian sticker on the sandwiches as avalue-add, then also use these in our sand-wich meal deal promotions with a drink andchips,” says Hall.

The result? In spite of the sagging econ-omy, Hall says he has not seen any drop offin sales. “I think rolls get lost in the grocery.That’s why we merchandise both the rollsand our specialty breads in the deli. Every-thing’s in one place and convenient for thecustomer.” DB

Real WorldCross-Merchandising Success

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believes delis can add value to their rotisseriechicken program by offering out-of-the-ordi-nary flavorings. “Chef Paul now offers 10seasoning blends to marinate chicken inovernight before cooking on the rotisserie.We offer delis a kit that comes with a headercard to sign the program and branded stick-ers to seal the chicken bags.”

Products that hitch their wagon to chick-en can enjoy increased sales while deli opera-tor’s benefit from the added ring. “Our rollsare an ideal meal solution. Many delis startwith selling either the 4-pack or 12-pack aspart of a rotisserie or fried chicken programand then branch out to include them withother center-of-the-plate items accompaniedby side dishes, salads and offer meal deals,”notes King’s Weeda.

Rolls can definitely be a deli driver.According to a Usages & Attitudes Surveyconducted by PERT Survey Research,Bloomfield, CT, for King’s Hawaiian, andreleased in March, 61 percent of the compa-ny’s loyal consumers seek their products inthe in-store deli.

Pasta is a blank canvas and the ultimatecross-merchandising vehicle, says CarlZuanelli, president, Nuovo Pasta Produc-tions, Ltd., Stratford, CT. “Consumers today

look to recreate a restaurant experience athome. This provides an opportunity to pairpasta with ingredients such as prosciutto,cheeses, olives, sauces, vegetables and pro-teins to make a complete meal.”

Marcel et Henri Charcuterie Française,South San Francisco, CA, has introducedtwo new fully cooked, pork-free, nitrite-freesausage products — duck sausage withcranberries, orange and ginger and turkeysausage with cranberries — that pair per-fectly with pasta. “The sausages are easy toheat and eat and toss with bow tie pasta orany flat pasta such as linguini in an Alfredo

sauce or au naturel with just butter andherbs,” explains Yvette Etchepare, directorof marketing.

Deli operators can take the idea of cross-merchandising all ingredients for a meal inone location one step further, says Zuanelli,and select ingredients, for example, that willallow them to promote feeding a family offour for $25.

The bottom line for success “is to treatcross-merchandising as a strategic element inyour marketing mix rather than a tacticalexecution for an immediate sale,” adds TheSnack Factory’s Weinstock. DB

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JUNE/JULY 2009 DELI BUSINESS 35

FoodsFrom Italy

American consumers may be spending less, but many arestill willing to pay a higher price for Italy’s amazing deli foods.

BY JACQUELINE ROSS LIEBERMAN

Who says Americans don’t know great food? Not Dennis Panozzo, president andmanaging partner of Chicago, IL-based Monti Trentini USA, which importscheeses made only by the family-owned Monti Trentini company in Italy. “I dobelieve that the American consumer is the best consumer in the world,”he says.

Americans have especially come to love fine imported products from Italy overthe past several years. It’s all about great taste, according to Nancy Radke, a representative ofParmigiano-Reggiano and Fontina Valle d’Aosta cheeses and president of Ciao, Ltd., Syracuse,NY. “Taste is the most important thing to people. When people taste these cheeses, their eyeslight up.”

Products such as these have been made in the same tradition for hundreds — sometimes a

PHOTO COURTESY OF CIAO, LTD.

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thousand — years. They simply would nothave survived this long if they did not tasteas amazing as they do.

According to Ruth Lowenberg,spokesperson for the Consorzio del Prosciut-to di Parma, Italy’s famous prosciutto diParma has a thousand years of traditionbehind it. “It can’t be produced anywhere inthe world the way it is produced in Parma.The terroir makes it unique,” she says.

In addition, “Special attention is given tothis product all along the production line. Inevery production facility, there is a mastersalter who salts by hand. It’s lovingly pre-pared and it’s long-aged — sometimes 18months. Not just any pigs go into the makingof prosciutto di Parma, either. They’re spe-cially bred. They’re specially fed. They’relarge.” As a result, she says, “Anybody in theknow perceives prosciutto di Parma as beingthe gold standard against which all other dry-cured hams are prepared.”

Another well-known, traditional Italianartisan ham, prosciutto di San Daniele, is alsocarefully watched over as it is lovingly pre-pared, “San Daniele prosciutto is a limited-produced dry-cured ham from a small townin the northeast of Italy,” explains AlbertoMinardi, general manager, Principe Foods,whose U.S. office is in Long Beach, CA.The company makes and exports a numberof Italian foods, including prosciutto. “SanDaniele hams are more delicate and less saltythan other prosciutto,” he says. As with pro-sciutto di Parma, a consortium regulates pro-

PHOTO COURTESY OF DANIELE FOODS

sciutto, the meat from the pigs’ hind leg is de-boned and filleted. It is rubbed with salt andspices, lightly smoked, and air-dried in thefresh breezes of the Dolomite Mountains,which impart a unique flavor to the meat,”explains Chiarini. “Speck’s sweet, long finishand deep smoky notes are a perfect matchfor a dark hearty bread, a nutty mountaincheese and a crisp and refreshing glass ofwhite wine.”

Dry-cured hams are not the only Italianmeat products with long-standing traditions,as Marella Levoni will tell you. She is thehead of communication and external rela-tions, Levoni S.p.A, Castellucchio Mantova,Italy. The company, which makes a variety ofsalumi, including cotechino, porchetta andmortadella, as well as prosciutto, prides itselfon its meats made in the grand Italian tradi-tion. “The products have an unmistakable,unique taste,” says Levoni. “In addition, theproducts’ aromas derive from the rigorousrespect of ancient recipes linked to their areaof origin, not to mention the use of naturalingredients only.”

Cheeses, too, go a long way back. Parmi-giano-Reggiano, Grana Padano and FontinaValle D’Aosta are just a few of the cheesesItaly exports for American connoisseurs.Another is Gorgonzola. “Produced in Lom-bardi for centuries, Gorgonzola is Italy’s mostbeloved blue,” notes Chiarini. “Historicallystored in caves to cultivate its characteristicmold, today Gorgonzola is inoculated with aculture during the cheesemaking process andpunctured to allow air flow and to encour-age the development of its characteristic blueveins. This world-renowned cheese is avail-able in two distinct styles — dolce and pic-cante. Dolce means sweet, and this 2- to 3-month-old semi-soft Blue has only a slightbite. Because of its higher moisture content,Gorgonzola Dolce is milder and more lus-cious than the older Piccante.”

This milder Blue is flavorful and simple touse, adding incredible depth to simple meals,

according to Chiarini.In addition, he

says, “Gor-

sciutto di San Daniele production. But pro-duction of San Daniele is much smaller, withonly 30 producers.

Another Italian ham — speck — is gain-ing popularity in the United States. “One ofItaly’s most interesting cured meats, speckrepresents a fusion between two ancientmethods of preserving pork — NorthernEuropean smoking and the SouthernMediterranean method of salting and air-dry-ing,” explains Dario Chiarini, a representativeof Speck Alto Adige IGP and GorgonzolaDolce DOP.

Speck offers flavors not found in hamsthat are dry-cured alone. “Unlike with pro-

PHOTO COURTESY OF LUCINI ITALIA

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gonzola Dolce DOP is a classic after-dinnercheese paired with fresh fruit like figs orpears, and it melts beautifully stirred into richsauces for gnocchi or pasta.”

Other Italian products are more recentinnovations that, nevertheless, are madewith the same traditional care and scrutiny.Monti Trentini — a family-owned and -runcheese producer in Asiago, Italy — makestwo kinds of DOP Asiago cheeses that weredeveloped during the 1960s. These Asiagos— one fresh, the other aged — differ fromtraditional Asiago in that they are made withcalf rennet instead of sheep rennet. Theytaste very different from the Asiago cheesesmade in the United States, says Panozzo.

Monti Trentini also makes six kinds ofsmoked Provolone and a fresh cow’s milkcheese called Panarello that Panozzodescribes as “really clean, like drinking a freshglass of cold milk. It’s really good at a cooltemperature. It melts in your mouth like icecream and there’s no residual butterfat lefton the roof of your mouth. This is a reallyinteresting cheese. It’s great with a sparklingwine, like Prosecco.”

Caciotta cheeses are another Monti Tren-tini specialty. These flavored cheeses includea style with Umbrian black truffles, one withfive herbs and another made with some ofthe few red peppers grown in Southern Italy.“The peppers are spectacular. They’re hot butnot habanero hot,” says Panozzo. “Thecheese has a little bit of strength to it, soyou’re not just tasting red pepper.”

The company’s newest creation, calledLagorai, is a pasteurized whole-milk cheeseaged 90 days. “It has a softer texture thatAmericans like,” says Panozzo.

Maintaining PopularityProduction and distribution costs for

many Italian foods rose last year as the costof raw materials and fuel rose. Today somecosts have evened out, although “God onlyknows” how high they could become in thecoming year, according to Ciao’s Radke, “Ithink prices aren’t going to go crazy-high.They’re probably going to hang in thereabout where they are.”

The exchange rate between the dollarand the euro is much more favorable forAmericans this year. That’s good newsbecause, as we all know, the current econo-my has Americans watching their wallets.Fortunately, consumers here do not seem tobe giving up their favorite Italian foods,despite their often relatively higher prices.

“Our sales have slightly decreased as faras the U.S. market is concerned, but the loy-alty of our customers has made the salesresults much better than expected comparedto the average of the food sector,” notes

Levoni of Levoni S.p.A. “Blogs and chefshows on TV have increased the domesticuse of high-quality products.”

Consumers cutting back on restaurantspending but increasing their retail budgetsmay also explain some sales of high-end Ital-ian foods in the deli. “I think we’ve seen a cer-tain amount of people eating at home moreand eating at home better,”says Radke.

“Maybe that helps explain why our num-bers are getting better — because people areeating at home more,” notes Lowenberg ofthe Consorzio del Prosciutto di Parma. “Eventhough, overall in the first quarter, we’redown, we’re definitely not down that much.”

Many of the Italian products offer high fla-vor satisfaction so consumers need buy onlya small amount, making them affordable lux-uries. When it comes to Italy’s cured meats,“Most consumers buy a quarter pound at atime,”explains Principe’s Minardi.

Some American consumers have cometo consider a few of these foods as importantas milk, bread and eggs. In the case of Parmi-giano-Reggiano, “I think we’ve worked sohard to make it a staple cheese that peoplefeel like they have to have it in their refrigera-tor,” says Radke. Still, she confesses, sales didnot grow much last year.

Boutique Parmigiano-Reggianos may or

PHOTO COURTESY OF CONSORZIO DEL PROSCIUTTO DI PARMA

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may not be as popular with consumers asthey have been, but major distributors seemto be shying away from these higher-pricedcheeses, according to David Neuman, presi-dent, Miami, FL-based Lucini Italia, produc-ers and importers of a limited-productionorganic Parmigiano-Reggiano aged at least 36months. As a result, the company has chosento work closely with independent stores.

Although it’s not a great time for artisancheeses like these, Neuman tells us, “Noteverybody’s being cheap. People will stillspend $30 for a bottle of wine, so why notcheese? Quality still has a place in this world.We stand behind our Parmigiano-Reggianoand we continue to sell it.”

Increase your salesBy educating consumers about the myri-

ad of superior Italian products available in thedeli, it may be possible to increase salesdespite the current economic climate. Indus-try experts offer some advice.

“Having a special cheese of the weekhelps people broaden their palates,” suggestsCiao’s Radke. “Doing promotions around theplace of origin is always helpful.”

Offering recipes or recipe suggestionsencourages consumers to learn more one usefor each product. Radke says that when shetalks about the cheeses she represents, “Peo-ple love them for their versatility in thekitchen, especially in the case of Parmigiano-Reggiano. Parmigiano-Reggiano is a flavor-enhancing food. It makes all the foods youput it with taste even better. Fontina Valled’Aosta is a great melting cheese. It’s great ona toasted sandwich. It makes a great fondue. Ilike it in place of Mozzarella on pizza, espe-cially if it’s pizza with caramelized onions.”

Cross-merchandising is an excellent wayto introduce consumers to new food combi-nations and recipe ideas. “Prosciutto offers alot of opportunities for cross-merchandisingwith cheeses,” says Principe’s Minardi. Henotes the ham goes especially well withMozzarella. “Our innovative packaging issuch that you can put it on the typical tagholder or in the cheese case.”

Italian meats, especially, could use a boostin the area of education. “One of the thingsthat’s special about having a specialty cheesedepartment — over just having the delicounter where you go to get the specialtymeats — is that at the specialty cheesecounter, people want someone to actuallytalk to them. There’s usually enough staffand nobody’s taking numbers,” says Radke.She would love to see a similar departmentfor specialty meats. So far, she has seen onlyone store with such a setup — one GiantEagle Market District store that has a sepa-rate charcuterie section.

“It sets up a real challenge for people sell-ing specialty Italian meats because peoplewant to be educated about them but theydon’t feel they have the time because they’reconscious of the people waiting in line behindthem,” continues Radke. “I think the meatsdeserve an opportunity to have people bebetter educated about them.”

Signage is often abundant among thecheeses but lacking among the specialtymeats, she notes. As a result, “I think peo-ple’s cheese knowledge has been growingexponentially while their meat knowledgehas not. I think cheese just has this ‘counter-culture,’ to use a cheese word. You oftenhave a label with all this information that youjust don’t have on the meat.”

While Levoni of Levoni S.p.A. hopesdelis will teach consumers the histories andtraditions of salumi, “Most of all, educate thepublic on how to taste the products, learninghow to appreciate quality. In this regard, inItaly we hold workshops named ‘Il Maialinod’Argento’ — the Silver Piglet — dedicatedto our best customers with exactly this pur-pose.” She believes delis should also help con-sumers become more aware of the impor-tance of eating good-quality food for boththeir health and personal satisfaction.

Videos are available for some products,including Gorgonzola Dolce DOP and SpeckAlto Adige, at Dipaloselects.com. Lou DiPa-lo, Italian foods expert and owner of Di PaloFine Foods Inc., an Italian deli in New York’sLittle Italy, hosts the videos.

In addition to educating consumers, it’simportant to educate staff. In the case ofprosciutto, “Make sure that whoever is slic-ing the ham knows how to slice it. If cus-tomers care enough to pay $25 a pound ormore for a product, they deserve the bestservice,” says Lowenberg of the Consorziodel Prosciutto di Parma. She believes sam-pling is still the best way to sell the product.“Give them a taste. I can’t emphasize thatenough. It’s well worth the investment.”

Neuman is so convinced of the power oftaste that for new orders, he is offering onefree case for each purchased case of LuciniItalia’s handcrafted organic StravecchioParmigiano-Reggiano cheese, with the hopethat retailers will use the free case to demothe cheese in their stores.

Panozzo of Monti Trentini says a goodproduct will sell itself if the consumer has theopportunity to try it. “What could be better?Talk is cheap.” DB

PHOTO COURTESY OF CONSORZIO DEL PROSCIUTTO DI PARMA

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Principe Foods USA, Inc.

3605 Long Beach Blvd. Suite#200 • Long Beach, CA 90807

PH: 310 680-5500 • Fax: 559-272-6183

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M E R C H A N D I S I N G R E V I E W

Consumers reining in their spending arevisiting restaurants less frequently, mak-ing now the perfect time for delis to pro-vide them with the foods and conve-nience they have come to love at the

prices they can afford to pay.Experts agree restaurants are suffering

during this current economic downturn andgrocery stores are already benefiting fromthat. “In general, we’re seeing consumersgoing to supermarkets more because of theeconomic situation,” says Joyce Friedberg,senior marketing manager, Camden, NJ-based Campbell’s North America Foodser-vice, makers of foodservice products includ-ing Campbell’s Restaurant Quality Soups,StockPot soups, V8 soups and entrées andPace and Prego sauces. “Consumers aregoing to casual or fine-dining restaurants lessand, instead, visiting quick-service restaurantsand retail foodservice or cooking at home.The deli section of a supermarket offers con-venience and value, since consumers can stopby while they’re grocery shopping.”

Friedberg is not the only person in theindustry to notice. “We have absolutely seenevidence consumers have been shifting theirdining spend from restaurants to supermar-kets,” notes Todd Griffith, vice presidentsales and marketing, Menomonee Falls, WI-based Alto-Shaam, makers of foodservicecooking equipment. “This can be supportedby the growth in deli and prepared-foodssales over the past 12 months among retail-ers, in addition to the subsequent decline inrestaurant sales. Consumers have been care-fully monitoring their dining expenses andmore are dining at home in lieu of dining out.We have also seen an interesting shift in thedynamics of restaurant category sales, notingthat customers have ‘traded down’ in orderto be more frugal with their dollar as relatingto perceived value. When gasoline wasalmost $5 a gallon not that long ago, con-sumers combined daily tasks, including

The New Alternative To RestaurantsTop-quality deli offerings can be positioned as a way forcash-conscious consumers to indulge their yearnings for restaurant dining

BY JACQUELINE ROSS LIEBERMAN

42 DELI BUSINESS JUNE/JULY 2009

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meals, in order to conserve resources andbetter manage time/convenience. Lastly,there are many supermarkets that have beenoffering — and continue to offer — restau-rant-quality food, earning their business bytaking it away from local restaurateurs.”

Many manufacturers have noticed this,and much of the marketing they once direct-ed to restaurants is now directed towardretailers. Carl Zuanelli, president, Stafford,CT-based Nuovo Pasta Productions, makers

of artisan-style specialty pastas known fortheir handmade fillings, believes many con-sumers are finding ways to bring that restau-rant experience home, often paying half theprice or less for similar meals by buying pre-pared foods at supermarkets. They may takein prepared food and serve it on good china,perhaps with a bottle of wine that cost one-third at retail what a restaurant wouldcharge for the same bottle. Instead of meet-ing friends at a restaurant, they may enter-

tain at home using these foods. “They’re stilllooking to have that restaurant-quality foodon the Saturday nights they don’t go out,” heexplains. Delis can attract these consumers“by offering items they’re used to seeing inrestaurants — lobster ravioli, the dramaticitems,” says Zuanelli.

Delis may be the best-poised supermar-ket department to pick up the businessrestaurants are losing. “I think there’s anopportunity, without question,” assertsZuanelli. “There’s a reputation of fresh in thedeli that frozen foods don’t have. There’s thatfeeling they’re buying it fresh.”

But quality is only part of the equation,according to Griffith of Alto-Shaam. “Thefood has to be good, the menu diverse basedon the customer demographic and demand,and the operation has to be clean and mar-keted with signage, and food displayed effec-tively and with impact. There has to be avalue for the dollar and a convenience that isnot offered by the restaurateur.

“Successful supermarket delis are expand-ing outside of their traditional scope of busi-ness,” he continues. “What used to be calledhome meal replacement or HMR is backunder a new banner — grab-and-go. Cater-

“THE FOOD HAS TO BE

GOOD, THE MENU DIVERSE

BASED ON

THE CUSTOMER

DEMOGRAPHIC AND

DEMAND, AND THE

OPERATION HAS TO BE

CLEAN AND MARKETED

WITH SIGNAGE, AND

FOOD DISPLAYED

EFFECTIVELY AND WITH

IMPACT. THERE HAS TO BE

A VALUE FOR THE DOLLAR

AND A CONVENIENCE

THAT IS NOT OFFERED BY

THE RESTAURATEUR.”

— Todd GriffithAlto-Shaam

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ing and delivery programs are growing withmany retailers. Menu expansion and qualityof food make the retail offering much moreattractive to consumers, not to mentioneffective marketing of pricing and menu con-cepts. The first step is making the commit-ment. The second step is to look at what

those successful operations are doing rightand integrate those best practices into theirown concept and operation. As for what elsecan they do — never be satisfied with whatthey offer, never stop looking for somethingbetter and different to set themselves apartfrom their competitors. Everyone, no matter

who they are, can be better at what they dofor their customers!”

According to Carol Adams, sales andmarketing manager, Hissho Sushi, Charlotte,NC, “It’s easy to sum up what today’s shop-pers want in three words — fresh, healthfuland affordable. Supermarket delis are taking

JUNE/JULY 2009 DELI BUSINESS 45

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full advantage of these trends by expandingfresh food offerings, and sushi is the perfectitem to drive these sales. It’s a triple win —for our company, for our customers and forconsumers. We provide a means for expertsushi chefs to display their art daily. Super-markets benefit from superior sales — sushiweekly sales per square foot can be in excessof $50 compared to an industry average ofaround $11. Sushi consumers win becausethey can get their ‘sushi fix’ at extremely rea-sonable prices. In fact, our average price is inthe $6 range, less than even many drive-thrudining options.”

Many supermarkets, including Lakeland,FL-based Publix Super Markets, have takenthese ideas to heart. In 2007 and 2008, Pub-lix opened three stores under its new PublixGreenWise Market concept. The stores,which carry a wide variety of organic andnatural items not found in other Publix stores,offer a large selection of restaurant-qualityprepared foods. At the 39,000-square-footTampa location, for example, 4,500 squarefeet are dedicated to prepared foods from 10venues, including Custom Salads, Handcraft-ed Sandwiches, Pan Asian, The Grill (offeringitems such as steak and burgers), Mediter-ranean Oven (with thin-crusted pizzas and

oven-roasted pasta dishes) and The Soup Bar.“Publix GreenWise Market is about pro-

viding our customers with fresh, restaurant-quality food options to satisfy every palate inthe convenience of one location,” says MariaBrous, Publix spokesperson. “Customershave chosen to look to Publix for meal solu-tions whether it be in our Apron’s Simple

Meals, our traditional deli offerings or ournew extended deli offerings. We offer ourcustomers the convenience of a one-stop-shopping experience to meet the demands ofa hectic lifestyle. We’re all time-starved andlooking for quick solutions. Meal planningcan be consuming — we’ve simplified it.”

Prepared foods at Publix GreenWise are

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designed to compete with restaurant offer-ings. “All our recipes are created by our in-house chefs in our meals department,”explains Brous. “Many of our associates havecome from the foodservice industry andworked in five-star hotels and restaurants.They bring with them a wealth of knowledgecoupled with our Publix culture. Our goal is to

offer our customers the highest restaurant-quality food in a convenient location at anaffordable price point. We’ve received positivefeedback from our customers and continue toexpand our concept and refine our meal selec-tions based on customer feedback.”

Other supermarkets are offering similarlyhigh-quality foods, often from manufacturers

that understand consumers still crave thequality they once sought in restaurants.Campbell’s StockPot soups are one example.“StockPot’s fresh-refrigerated soups aremade with exceptional, high-quality ingredi-ents and real stock and are slow cooked onekettle at a time. Because the cooking processreplicates how you would make soup athome — but on a much larger scale — thesesoups provide the great taste you’d get froma home-cooked soup without spending timemaking it yourself,” notes Sheri Oppen-heimer, communications manger, Campbell’sNorth America Foodservice.

Manufacturers such as Campbell’s arepaying attention to consumer trends andadjusting their recipes accordingly. “Duringthese difficult economic times, consumersare turning to comfort foods and going backto basics,” notes Oppenheimer. “For con-sumers looking for a premium twist on famil-iar favorites, Campbell’s StockPot soupsoffer gourmet takes on the most classiccomfort foods we all know and love, withproducts such as StockPot Creamy TomatoBasil Bisque and Fully Loaded Baked Potatoand Cheddar soups.

“Because StockPot soups are on-trend,

JUNE/JULY 2009 DELI BUSINESS 47

PHOTO COURTESY OF CAMPBELL’S NORTH AMERICA FOODSERVICE

Continued on page 50

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Convenience, a major reason cus-tomers come to the deli, beginswith the packaging used to carry

out the food. To be convenient, deli pack-aging must be leakproof, tight-sealingand reheatable.

Since many deli customers reheat theirfood when they get it home, being able toheat in the package is a selling point. “It’svery important that the packaging bemicrowavable as families are purchasingmore and more ‘ready to make’ home mealreplacement meals,” says Steve Enustun,corporate director of sales for the specialtypackaging division of Clark National Inc.,Elk Grove Village, IL. “It’s also absolutelyimportant it be heatable in the oven sincesome prefer to wait a little longer foroven-prepared meals.”

The microwave may be the most com-mon reheating method, but manufacturersrecognize it’s not the only method. “Thetrend is to continue microwaving. I saw arecent market survey and there is still aneed for ‘ovenability,’ but microwavabilityis by far the most important,” notes KarenRoman, senior marketing manager,Reynolds Food Packaging, Richmond, VA.

If the carryout container can be usedfor reheating, it saves the consumer prepand clean-up time. Bob Saric, nationalsales manager, Placon, Madison, WI,believes, “Microwavability is extremelyimportant for reheating food in the con-tainer it was purchased in. Consumerswant convenience and aren’t looking todirty more dishes in the process. Polypro-

pylene is a microwavable material greatfor foods that need the quick and easyconvenience of reheating.”

Rotisserie chicken is frequently not fin-ished in a single meal. Some of the pack-ages used to take home chicken can alsobe used to refrigerate and microwave theleftovers. “If people don’t eat the full con-tents and put it in the refrigerator, it’s veryimportant to be able to put it in the micro-wave to reheat it,” explains Ed Sussman,co-owner of Melville, NY-based MeritPaper Corporation, which produces a lami-nated microwavable rotisserie chicken bag.

A new reheating option is on the way,according to Cheryl Miller, marketingmanager for Appleton, WI-based FlairUSA, which is introducing a self-venting,microwavable pouch with a ziplock. “Theself-venting package can be filled at thedeli, taken home and steamed or micro-waved in the same package,” she says.

MAKE IT EASYAnother essential aspect of packaging

is that it not leak on the way home orbetween uses.

“Most packaging leaks out the sides —use a clamshell as an example — if treatedimproperly. However, leaking out the sidesor the popping open of a fiber clamshellcan be minimized by sheer attention todesign. Leaking out the bottom is a dura-bility issue regarding the fibers and thepulping or manufacturing processes used,”explains Megan Havrda, senior vice presi-dent, Be Green Packing, Santa Barbara, CA.

The answer to leak problem lies in astrong package. “The solution to the leak-ing problem is pretty easy — it takes asturdier container,” says Glen Wiechman,national sales manager, Pactiv, Lake For-est, IL.

The seal between the lid and the pack-age is important. “Leaking depends on thepackage. Some inferior products were notdesigned properly and generally haveleaking issues. Placon’s packaging wasdesigned to address this issue and has aleak-resistant seal to keep food and liq-uids contained. Our packages won’t popopen unexpectedly,” Saric notes.

Package shape can influence the securi-ty of the seal. “To my knowledge, there’sno completely leakproof packaging out inthe marketplace,” says Hanna Sjolund,marketing manager, food service plastic,Innoware Inc., Alpharetta, GA. “Round oroctagonal containers tend to have a betterseal than square. Our leak-guard lockcontainers offer a great seal and take intoconsideration the importance of ease ofopening and re-sealing for leftovers.”

The seal has to be secure, but it also hasto be easy to open, reseal and then openagain. “A good lid fit is still very important.People want to be able to open the lid easi-ly, close it easily and know that it’s tight,”Roman says.

Rotisserie chicken containers generallyhave a fair amount of grease on the bot-tom, which can leak into a shopping bag,car seat or refrigerator. “A rotisserie chick-en is sometimes sold in a dome, and some

Packaging Delivers Convenience BY BOB JOHNSON

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of those domes move and the grease leaksout. Some markets supply plastic bags toput the dome in; we provide a laminatedbag that is reclosable, microwavable anddoes not leak,” notes Sussman.

Sliders can be an answer to the ques-tion of keeping a good seal while repeat-edly opening and closing a package.According to Leon Chang, general man-ager, Fantapak International, Troy, MI, “Alot of consumers prefer the slider mecha-nism because it’s easy to open and close.The top-loading slider bag is easier for thedeli staff to load.”

In tight economic times, it’s importantto know which package to buy. “Cost effi-ciency is important. You have to have aproduct of maximum quality for the pricestructure,” explains John Alexanian, salesrepresentative, Cube Plastics, Toronto, ON,Canada. He recommends determining theuse of the packaging before making adecision on the most cost-efficient choice.Relatively low-quality packaging can dofor lightly handled dry goods or for sin-gle-serve items, but a sustainable andreusable package is important for pack-ages that will be taken home and repeat-edly put into and taken out of the refrig-erator, freezer, microwave or dishwasher.“Sometimes prepared food items aren’teaten right away. They’ll be frozen ormicrowaved after they’re taken home.We’ve come up with an upscale productthat uses less material than our competi-tion. It is sustainable, strong and rigid.”

GREEN IS HERE TO STAYA large and still growing number of

consumers have an interest in or commit-ment to the environment, which is evi-denced in their desire for environmentallyfriendly packaging — and they will knowif you’ve made responsible choices.

Jeff Cole, marketing manager, GenpakCorp., Glens Falls, NY, believes some con-sumers need to claim some sort of sustain-ability for the packaging they use. “Thistrend has been growing for the last two orthree years.” Genpak makes a line ofhinged deli containers made of recyclable#1 PET, at least 50 percent of which ispost-consumer material.

“Consumers want to see some consci-entious effort and we’ve seen studies thatshow people are willing to pay a littlemore to do their part for the environ-

ment,” relates Karla Bendel, director ofcorporate marketing, Nestle USA FoodServices, Glendale, CA.

Even though consumers are watchingtheir wallets, they’re still concerned aboutthe environment, a concern that figures tobecome even stronger as the economyrecovers. “Our research shows eco-friend-liness tops the list of social responsibilityissues in foodservice and is highest in thebeyond-restaurant segments such as col-leges and universities. The top influence isconsumer demand for greener packagingalternatives,” notes Sjolund.

The strength of the green movement isclear, but the best answers to the environ-mental issues require considerable thought.“What is green?” Wiechman asks. “If it’smade of corn, is it green? Corn-basedmaterial is not recyclable, and if you putbiodegradable materials in a landfill envi-ronment, they’re not going to degrade.”

The issue becomes more complicated ifyou factor in the environmental toll ofmaking and shipping the package. “I don’tthink sustainable packaging is going away.It’s not just the package — it’s the amountof energy it takes to produce it and theamount of fuel it takes to transport it,”Miller says.

A growing number of customers appre-ciate a sincere effort to minimize the envi-ronmental impact of making, transportingand disposing of packaging. Havrda sumsup the issue this way. “The ‘green trend’ ishere to stay and both green packaging andtriple bottom line — environment, commu-nity, profitability — business practices area necessity, given our country’s wastemanagement challenges, overstuffed land-fills, the sea of garbage floating in thePacific Ocean, and our nation’s growingpersonal sense of responsibility to ‘do theright thing’ for the environment.” DB

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they offer consumers a way to enjoy culinaryflavors they’d experience in a restaurant athome,” Oppenheimer continues. “So a busyconsumer looking to save time and moneycan go to the grocery store, pick up a saladand pasta to assemble at home in the mainsection of the store and add a fresh, restau-rant-quality StockPot soup from the retaildeli section to turn an ordinary dinner into anexceptional meal.”

In-Store DiningA few supermarkets are taking this “steal

the business from the restaurants” themeone step further with ever-fancier in-storedining areas. With less overhead than restau-rants and a scale that only mall food courtscan compete with, these areas offer shop-

pers the convenience of enjoying a variety ofquality foods while doing their shopping.

“Many retail-store operations currentlyoffer in-store dining areas in order to capital-ize upon in-store dining traffic,” states Grif-fith of Alto-Shaam. “Several chain retailersthat have established themselves with pro-

gressive foodservice programs that set thebenchmark for in-store dining. However,they’re still among the minority. There’s cer-tainly an opportunity for others to takeadvantage of this business strategy.”

“In-store dining is an area where storescan differentiate themselves, and they can

“WE ALSO OFFER THE LUXURIES OF HOME WITH FREE WI-FI SERVICE. IT’S A LOCAL MEETING PLACE WITH EXTENSIVE

OPTIONS. HOWEVER, THE FOOD IS ALSO MEANT TO

TRAVEL WELL AND REHEAT TO FIRST-QUALITY FOOD.”— Maria BrousPublix Supermarkets

Continued from page 47

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help drive traffic,” says Campbell’s Oppen-heimer. But this isn’t as simple as setting up afew tables. “Operators must make a com-mitment to the space and to having theappropriate staff with the skill level to servicethese areas”

Supermarkets such as Rochester, NY-based Wegmans Food Markets, Austin, TX-based Whole Foods Markets and PublixGreenWise are meeting that commitment.

“The great part about our Publix Green-Wise Markets is that we offer a relaxing andsoothing environment for our customers toenjoy their meal selections,” notes Brous.“We also offer the luxuries of home withfree Wi-Fi service. It’s a local meeting placewith extensive options. However, the food isalso meant to travel well and reheat to first-quality food. The customer has the option to

eat-in or takeout.”Operations like these are not for every-

one. “A significant commitment is involvedon behalf of the retailer,” notes Griffith ofAlto-Shaam. “Space is the least of the actualcommitments, but there is a space require-ment that must be made in order to success-fully implement an in-store dining area. Thisincludes a corporate commitment in terms ofstore design and development, construction,etc. Of course, the commitment to foodser-vice is a must. Operating a restaurant withina retail supermarket has the same opera-tional challenges that any other restauranthas. It takes a quality menu that the con-sumer will accept, a marketing strategy todevelop the business, the tools and equip-ment to execute the menu, and the person-nel and resources to successful deliver the

program. There is a commitment!”Impacts on personnel and space can vary.

“It all depends upon how substantial the pro-gram is,” says Griffith. “Many retailers haveimplemented branded foodservice concepts.Staffing requirements here are completelydependent upon the size of the operation andthe flow of business. There is dedicated laborrequired but, at the same time, the savvyoperator will fully evaluate equipment tech-nologies that will simplify the demand uponlabor, space and facilities. Space considera-tions are also completely dependent uponthe scope of the foodservice program.”

The commitment can be worth it, Grif-fith believes. “From a couple of small tablesto a full restaurant-style seating area, food-service is still the highest margin and returndepartment in the retail supermarket.” DB

JUNE/JULY 2009 DELI BUSINESS 51

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Delis should position themselves to bene-fit from the at-home-entertaining pen-dulum swing. From potlucks to cook-outs, low-cost, at-home entertaining ison the rise, and specialty dips and

spreads from the deli are perfect for thesefunctions. The role of dips and spreads hasexpanded; people are using them as ingredi-ents as well as using them in the traditionalmanner. With more options and moredemand, it’s time for delis to join the partyand get more out of their selection of special-ty dips and spreads.

“The economy is affecting higher-costgoods and services, but people still need toeat and they still want to entertain, so lesscostly products that offer value and greattaste should flourish even in a weak market,”says Dominick Frocione, vice-president ofsales for Cedar’s Mediterranean Foods, Inc.,Bradford, MA.

The specialty dips and spreads categoryhas maintained popularity regardless of theeconomy — and in some cases has grown.Chuck Santry, national sales manager for allbrands of Santa Barbara, CA-based Califor-nia Creative Foods, Inc., estimates refrigerat-ed dips sales have increased around 20 per-cent, while grocery dips and spreads have“flatlined.”

Rick Schaffer, vice-president of sales andmarketing, Tribe Mediterranean Foods, Inc.,Taunton, MA, believes the deli specialtyspread and dip category presents substantialopportunity for growth, noting, “It’s a high-turn category. It’s not a staple, but it’s highlyconsumed.”

Since specialty dips and spreads add a bigflavor at an affordable price, consumers aregoing beyond these items’ obvious uses andusing them as ingredients in traditional or re-imagined dishes.

Mexican lasagna made with specialtysalsa, tortillas, and cheese from the deli is aquick and easy party meal, notes Santry.Creativity is key. “People want to be cre-

Life Of The PartyDips and spreads offer the at-home entertainersomething special, easy, and affordable

BY TRISHA J. WOOLDRIDGE

52 DELI BUSINESS JUNE/JULY 2009

ative,” he says, citing cheesecake toppedwith mango peach salsa as another exampleof creative versatility.

“With the introduction of salsa intoAmerican culture followed by guacamolethen hummus, the dip category has opened

up for everyone to get creative and maketheir own little specialty,” says Howie Klags-brun, vice-president of sales, Sonny & Joe’s,Bronx, NY. He suggests promoting thehealth benefits to drive sales of these foods,especially hummus.

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Delis are also using the spreads in sand-wich trays, especially to meet the demandfor more vegan, vegetarian, organic, kosheror other dietary restrictions. Hummus andsalsa, for example, can be used as a dip orspread by consumers who follow specificdietary guidelines. Because they contain nei-ther meat nor dairy, they appeal to vegetari-ans, vegans and those following religiousconstrictions. In the dairy-based spread anddip arena, tzatziki can transform salads orsandwiches into something new and differ-ent to impress guests.

According to Brenda Donahe, director ofsales and marketing, Mrs. Gerry’s Kitchen,Inc., Albert Lea, MN, the company’s South-western Dip can be used as a stand-alone,with tortillas, for taco salad, on wraps, inbaked potatoes and as part of recipes, severalof which are listed on the company Website.“Think outside the box in regards to versatili-ty,” she recommends.

“Our regional Taste the Mediterraneanadvertising campaign is all about the ability tohave the delicious experience of the Mediter-ranean without leaving home. We’re alsolaunching a North American sampling tour,where we’re building a Mediterranean Café in12 cities,”notes Kimberly Rom, brand manag-

er for Sabra Dipping Company, Farmingdale,NY. “We’re listening to what consumerswant and releasing new on-trend flavors.Offering a variety of flavors and sizes allowsconsumers to have single serving options forlunches and snacks or full size, garnished con-tainers for entertaining at home.

More dip and spread choices than everbefore means consumers can find somethingto match the theme of any party. In additionto savory dips, sweet dips for fruit and crack-ers as well as an increased number of ethnicofferings can fit the bill. Delis can createparty themes throughout the year to coin-cide with established holidays and gatherings— Memorial Day, Independence Day, Cincode Mayo, Super Bowl Sunday, even Hal-loween — or create promotions geared fortheir particular clientele — Chinese NewYear, Graduation, Marathon Day, whateveris likely to draw in a given community.

Party PackageManufacturers are quick to point out the

category’s celebratory appeal. Tribe has cre-ated a party platter so consumers can simplygrab a tray for their entertainment needs.

“Eight-ounce packages may have startedthe category’s growth with individual con-

sumers but for entertaining, bigger packagesmean bigger values,” says Cedar’s Frocione.

Retailers would do well to broaden theirofferings to customers looking for entertainingideas, for example, larger sizes and a wide vari-ety of flavors to impress guests. “Be innova-tive,” advises Tribe’s Schaffer. “People wantwhat’s new — new flavors, new concepts.”

Dips and spreads don’t have to have holi-day-specific packaging, and that can helpcontrol shrink. In addition, the resurgence ofcasual at-home entertaining suggests dipsand spreads have lost any seasonality theyonce had. Maintaining — and promoting —a party or entertainment section in the delican establish the department as the place tohead whenever guests are expected.

Sonny & Joe’s Klagsbrun suggests plan-ning regular celebration promotions “verymuch the way [retailers] do for Super Bowlparties. Have prepared party platters ormenus suggesting how many each one willserve. Take the thinking and planning out of itfor the consumer, and she will appreciate thestore ‘planning the party.’”

Miscellaneous FavorsMarketing to customers who are enter-

taining at home sets the deli as regular desti-nation. The department can do a number ofspecific and simple things to appeal to thisgrowing demographic.

In-store demos should be used to intro-duce both new and established products toconsumers. You have to get an item into aconsumer’s mouth before you can get it inhis or her shopping basket. Not many peoplewill serve an item they’ve never tried them-selves to guests. Demos that show differentways to use the product and offer recipescan increase overall ring. Showcasing sim-plicity and versatility goes a long way.

Cross-merchandising and cross-promot-ing — especially with a demo to highlight aparticular recipe — solidify the deli as amust-visit destination. Marketing chips,crackers, breads, fruits, and vegetables withdips is ubiquitous, but what about otherparty pleasers? If a supermarket has a wineand beer section, putting together beer, salsa,and guacamole creates an instant fiestatheme. Tribe has had success working pro-motions with hummus and wine. Even offer-ing specials across different items or flavorsfrom the same brand can increase sales.After all, a host or hostess is unlikely to offerguests only one dish.

The deli is also a great place for cross-merchandising with other departments. Forexample, Garlic Delight, which is normallymerchandised in produce, is often found indelis as a sandwich dressing and sold with delispecialty dips and spreads. “With consumers

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Tasty, flexible and still exotic enoughnot to have gone completely main-stream, hummus remains an increas-

ingly popular choice for consumers hungryfor something out of the ordinary. Con-sumers enjoy dipping poultry, meats, veg-etables and bread into hummus. Restau-rants, which often set the tone for retailwhen it comes to innovative or exoticproducts, are using hummus as a side dishwith fish and falafel.

“The category is still so hot, everywhere Iturn there is new opportunity,” notesHoward Klagsbrun, vice president sales forSonny & Joe’s, Brooklyn, NY. “The growthis all coming from the premium side of thecategory.” Klagsbrun, who exhibited hisbrand at the winter Fancy Food Show inSan Francisco, recalls attending that sameshow six years ago “and having to convincepeople to try hummus. Most attendees hadno knowledge of hummus. Not so today.Everyone eats hummus, and as the categorymatures, people want quality.”

Over the last two or three years, manyretailers around the country have given it aprominent presence on the shelf, whichembeds hummus further in shoppers’minds. The profusion of flavors intriguesthem and spurs trial. Some industry insid-ers believe hummus will follow yogurt,which had similar attributes and ultimatelygarnered its own section.

Like all successful products, hummus isfinding its way into the American culture.According to Chicago, IL-based Informa-tion Resources, Inc. (IRI), household pene-tration of hummus was 12.5 percent in theUnited States two years ago and is proba-bly closer to 15 percent or 16 percent now.In Israel, however, household penetrationstands at about 95 percent. Israelis regular-ly consume hummus as a part of mealsand dine in hummus bars. Some in theindustry believe American consumers canmove, and indeed are moving, in that samedirection. The deli’s responsibility, accord-ing to one manufacturer, is to help con-sumers understand what they can do withthe product aside from simply sticking pitain it.

This past Thanksgiving, Sonny & Joe’sdistributed recipe cards for HummusTurkey. Brochures highlight hummus soupand Moroccan Chicken with hummus.Americans are getting “very creative withwhat they are trying with hummus,” addsKlagsbrun. The category has gone “waybeyond hummus and pita. What’s drivingthe growth is twofold. From one side,hummus just tastes great, and it’s not amajor ‘life change’ to use another kind ofdip or spread. Then there’s the healthangle. Hummus is a more healthful spreadthan everything we’ve been accustomed tousing. It has more protein per ounce thanground beef, iron, fiber, no added sugarand no cholesterol. What else could youask for without it being someone’s chem-istry project?”

Here is some of what’s happening inthis vibrant category:

NEW FLAVORS: “New flavors are cominginto the category, however the top two orthree flavors continue to do the majority ofthe business,” according to John Curran,director of sales and customer service atChurny Company Inc., Glenview, IL. Whilethere’s no shortage of all-natural andorganic offerings, he adds, “The base fla-vors and formulas that continue to be pre-ferred already are viewed and perceived byconsumers as a ‘better for you’ product.”

SMALL IS BIG: Portion-controlled prod-ucts have been spurring trial at the delicounter. The 2-ounce packages are conve-nient. “You just eat it and toss the packag-ing,” says Rick Schaffer, vice president ofsales and marketing for Tribe Mediter-ranean Foods, LLC, Taunton, MA. Rolledout about a year ago, the single-portionpackage is being snapped up not only byretailers such as Costco, he reports, but alsoby school systems because kids love it. “Itmeets the caloric and traditional require-ments in schools, which are going crazyover it.”

ON THE GO: Kimberly Rom, brand man-ager for Sabra Dipping Company, LLC,Farmingdale, NY, points out that hummusis very much “on trend with consumers”because it has become “less of a niche item

and has grown into the mainstream in themarketplace today.” Being part of themainstream increasingly means beingportable. Sabra has introduced a pack con-taining hummus, cracker and pretzel crisp.

HEALTHFUL, BUT: Organic hummus hasnot grown as much as some insidersthought it would. At least one executiveconfesses he and his colleagues tend tothink organic should be a bigger part of thebusiness than it is, but consumers don’tseem willing to pay the premium for organ-ic. The additional cost, given the nation’seconomic climate, is translating into a ‘no’vote at retail.

USAGE IDEAS: One of the best things delipersonnel can do to increase sales of hum-mus is to share different ways to use itwith consumers.

“People are starting to use it as some-thing besides a healthful dip with pita breador chips,” notes Dom Frocione, vice presi-dent of sales for Cedar’s MediterraneanFoods, Ward Hill, MA. For instance, peopleare starting to use it on bagels instead ofchive cream cheese. Others are using itinstead of cream cheese or mayonnaise inother preparations.

“We have customers writing in and say-ing they mix sun-dried tomato [hummus]and basil with olive oil and make a sauceout of it,” relates Frocione. “We’re advocat-ing a lot of different usages. Some retailersput horseradish hummus in the meatdepartment as a topping with a filet. It’sonly limited by lack of imagination as faras what you can do with the product.”

The economy has had little if any effecton Cedar’s business, says Frocione. “We’restill relatively inexpensive compared toother things. We’ve had price increases likeeveryone else due to cost of materials andtransportation, but for the most part, youcan still buy an 8-ounce package of hum-mus from us for around $2.99.”

Consumers are eager for relatively inex-pensive yet convenient foods to add flavorand variety to their meals. Hummus is stillreasonably priced and features a wide vari-ety of flavor profiles. It remains a categoryon the way up. DB

HUMMUSBy Howard Riell

M E R C H A N D I S I N G R E V I E W

spending more of their food dollars at thesupermarket, they’re looking for easy and deli-cious ways to make meals and entertaining athome more flavorful,” says Karen Caplan,president and CEO of Frieda’s, Inc., LosAlamitos, CA. Garlic Delight was designedfor at-home parties after an employee

brought it to Caplan’s attention.Pricing deals increase sales, and delis can

be creative here, too. According to Santry ofCalifornia Creative Foods, many stores havetwo or three major sales a year, but hebelieves they can draw more customers overthe long term by offering small-value

coupons frequently. Because specialty dipsand spreads are perishable, consumers aren’tlooking to stock up. But they are looking tosave money wherever they can, so couponsoffering even 10¢ or 15¢ off every few weekscan increase impulse sales and build long-term loyalty. DB

JUNE/JULY 2009 DELI BUSINESS 55

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F E A T U R E

Ethnic foods can help retailers drive their business instead of losing out

BY JODEAN ROBBINS

56 DELI BUSINESS JUNE/JULY 2009

While some retailers fear the effects ofa lingering recession, savvy ones areseizing a multitude of opportunities,including a growing interest in ethnicfoods. The recently released Food

Flavors and Ingredients Outlook 2009 byPackaged Facts (PF) of Rockville, MD, notesexpected continued growth in consumerinterest in new ethnic cuisines and flavors.The report outlines how the range of ethnicfood varieties is expanding at a rapid pace.

“While we are experiencing a recessionand growth has slowed, we’re still growingwith many prospects coming on board in thesecond half 2009,” says Mark Phelps, presi-dent/COO of InnovAsian Cuisine Enter-prises in Kent, WA. “We’re considered agood value for the consumer, many of whomare going back to staples rather than conve-nience foods and restaurants.”

The growing popularity of ethnic foodsfinds its base in two factors, the growth ofthe ethnic demographic and the evolving

greater sense of urgency to drive traffic thanthey used to. One way of making that hap-pen is to look for nontraditional ways to getpeople in your store. If you start carryingitems appealing to a greater demographic,you have a better chance of getting people inyour doors,”he continues.

According to the PF report, trends innew cuisines include Rustic French, whichreflects consumers’ desire for comfort foods,a wide variety of Asian and Mediterranean(especially Spanish) cuisines, and newcomersfrom Peru, Laos, Algeria, Ethiopia andSomalia. The report further purports ethnic-oriented retailers will experience significantgrowth as they serve both immigrant andmainstream consumers.

“In today’s economy, many people arechoosing to eat out at restaurants less thanthey used to,” reports Lardizabal. “The localsupermarket deli presents a more economi-cal way to eat as if you were in a restaurant.Even though someone else still did the cook-

World Cuisine OffersWorld Of Opportunity

mainstream consumer palate. U.S. CensusBureau reports show more than 14 percentof the U.S. population is Hispanic, 12 percentis African American, 4 percent Asian, andmore than 6 percent ‘other’ race. Combined,this represents more than 36 percent of theU.S. population.

“Demand has increased for two reasons,”notes Alfredo Lardizabal, vice president salesfor MIC Food, Miami, FL. “The first is relat-ed to the fact that delis, and retailers in gen-eral, want to drive more traffic through theirstores, and one way of doing that is consider-ing the changing demographics. If you bringin more ethnic foods, you’re catering toeveryone’s taste buds and you have a betterprobability of getting people to buy what youhave to offer including ‘mainstream’ itemsthey used to buy elsewhere as well as these‘ethnic’ items.

“The second reason may be directly, oreven indirectly, related to the economy asmany retailers with declining sales feel a

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Large16-inch Pizzas forRefrigerated Deli MerchandisingStefano's Take & Bake Pizza brings pizzeria quality toyour supermarket deli. Our authentic 16 inch pies aretopped, boxed and ready for refrigerated display. Varietiesinclude the three top selling items: Four Cheese,Pepperoni and House Special (our original combinationof Italian sausage, grilled peppers, onion, and pepperoni).

What makes Stefano’s pizzas unique is our hand stretchedSemolina Crust with Panko Breadcrumb base for flavorand texture. All three varieties feature abundant toppingsfor great taste and exceptional value.

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Impressive appearance, great taste and exceptionalvalue....that’s how Stefano’s brings pizzeria qualityto the Supermarket Deli.

For more information, please contact: Stefano Foods, Inc., 4825 Hovis Rd., Charlotte, NC 282081.800.340.4019 ~ www.stefanofoods.com

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ing for you, you aren’t paying restaurantprices and mom or dad can still take a day offfrom cooking. The deli concept is somethingHispanics in the U.S. have been used to foryears, however, until recently, choices werelimited to small neighborhood ethnic storesselling our favorite ethnic foods by thepound. Now, more delis are getting involvedand we can do our grocery shopping and ourfood-by-the-pound all in the same place.”

Focus On QualityQuality is a primary focus in any ethnic

foods program. “Replicating the meal youcan no longer afford to eat in a restaurant isprobably the deli’s greatest opportunity inethnic foods,” says David Grotenstein, gener-al manager of Union Market in Brooklyn,NY. “However, if we’re talking preparedfoods, this concept will not work for youunless what you’re dishing out is at, or closeto, restaurant quality.”

“Delis have a major opportunity to expandethnic foods especially as consumers look formore affordable alternatives to restaurantsand takeout,” adds Phelps. “Convincing con-sumers that deli is now a viable, quality offer-ing will steal a share of their stomach and evenwhen times get better, they may continue asloyal customers of the deli.”

Knowledge about the products is para-mount to quality. “Learn about the foodsyou’re bringing in,” advises MIC’s Lardizabal.“Know how to prepare them and what toserve them with. If the food is meant to beserved hot, keep it hot. If it doesn’t have along holding time, then don’t keep it out allday because it may lose taste or texture.Offer other items that go well with that par-ticular food so your customers can take a fullmeal home.”

Regardless of ethnicity, retailers shouldalways consider the bottom line of qualityand value. “Customers are looking for com-fort foods, and value, price and quality areimportant,” says Marilyn Bennett, deli man-ager for Vallergas Market in Napa, CA, anindependent hometown single store.

Promote ValueAs consumers increasingly look for value,

ethnic foods can present a complete packagefor them. “Many foods considered as ethnictend to be less expensive and present a goodvalue,” says Lardizabal. “Additionally, notonly are many ethnic products a good valuebut many also have additional qualities suchas taste and health, and many are 100 per-cent natural. These additional attributes addto the appeal of these cuisines to the main-stream market as well.”

“Ethnic foods can be positioned as agreat value by promoting combo plates,” sug-

gests InnovAsian’s Phelps. “For example, riceor noodles bring the cost of a meal down aswell as completing the meal. Retailers shouldalso put together family meal offerings.”

The deli can offer real value in terms ofcost and benefits to consumers. “This is anopportunity to show off your breadth ofknowledge and to offer your customerssomething they can’t find anywhere else orprepare for themselves at home,” adds UnionMarket’s Grotenstein. “That said, you mustback it up with real value, which includesgood taste and ease of use or preparation. Ithas to be worth what you’re charging.”

Show CommitmentA solid ethnic food offering will reflect the

retailer’s commitment. “Delis need to com-mit to a section everyday, religiously, so con-sumers feel the store is committed to thecategory and they don’t have to guess whenit will be out,” states Phelps.

Variety shows commitment and providesadditional opportunities for sales. “Retailersshould sell in multiple applications, such ashot case, cold salad case and cold grab,”explains Phelps. “Again, this allows con-sumers to see your commitment and givesthem options.”

“The whole key is variety and to change itup so you’re not offering the same thing dayafter day,” says Bennett. “People like tryingand having new things. Our hot bar has a lotof different varieties. I’m also a believer thatyou should always revisit items. For example,if something didn’t work in December, youshould always try it again in April. I wouldn’tput a lot in the budget — and it also dependsa lot on your community and what you knowyour community likes.”

However, the variety must fit your demo-graphic. “Choose wisely,” advises Lardizabal.“Cater to the ethnic makeup of your neigh-borhood. Bring in items appealing to yourcustomer base. Do the research as far as yourneighborhood’s demographics.”

How Far Do We Go?Many ethnic foods are already staples in

our culture. Old-world favorites from Ger-many and Italy are now considered Ameri-can foods although they were ethnic whenfirst introduced decades ago. “The deli hasalways been largely composed of ethnicfoods such as Italian products or German-style cured meats and even French ham,”Grotenstein explains. “Spanish cured meatstook a leap when Serrano ham was intro-duced years ago and again when Iberico hamentered the scene.”

If delis look at these ‘new’ ethnic productsas the next generation of old-world favorites,the question becomes whether to American-ize them or retain their traditional aspects; theanswer is as diverse as the cuisines.

“There’s no point in dumbing down afood or product you believe in,” says Groten-stein. “All you end up doing is compromisingthe quality and lessening the value. I’m infavor of authenticity.”

However, others contend that if your goalis to reach the masses, some ethnic productsmay need to be somewhat Americanized.

Lardizabal offers a suggestion. “Sincepart of what makes most ethnic productsspecial is their uniqueness, why mess withthem? Something that has worked well forus is making people realize you can keep itauthentic and Americanize at the same time.For example, with our plantain slices or yucafries, we simply suggest you keep your platethe same and substitute an ethnic side suchas yuca fries in place of a more Americanizedside like potatoes. So you still have a moreAmerican version of meat, steak, chickenbreast or fish, but you have replaced a tradi-tional side with an ethnic one. Many restau-rants are doing this.

“By introducing an item as a side or appe-tizer, people are more likely to try it becausethe portions are generally small and the com-mitment level is low. More often than not,people end up liking these items and keepcoming back for more,”he continues.

Indian cuisine has not reached mass pen-etration but it is showing growth potential.The increasing Indian population in the Unit-ed States and the accompanying proliferationof Indian restaurants has sparked an interestin the cuisine by mainstream consumers.And since many Indian foods are vegetarian-friendly, they appeal to a segment that mightnot ordinarily frequent the deli with its heavyconcentration of meat-based products. [Edi-tor’s note: For a more detailed look at Indianfood in the deli, please see Passage To India onpage 60.]

Most of the products available in thiscountry are Americanized versions of Indianones. According to Vars Inijian, vice presi-

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dent of sales and marketing, Karoun Dairies,Inc., Sun Valley, CA, the company hasrecently developed an authentic-style Paneercheese, which is used as the protein sourcein many Indian vegetarian dishes. “It’s perfectfor a meatless diet,” he explains. Karounoffers “a whole package” that includes Indianyogurt and lassi, a yogurt-based beverage.

As always, the decision of how “authen-tic” to be must fit with the store’s philosophyand demographic. “We just try to use thebest quality products,” says Bennett of Valler-gas Market. “For our chicken enchiladas, wedon’t make our own sauce but we do use ourroasted chicken. It has our twist on it.”

“I incorporate product lines and categorieswithin the overall mix,” shares Union Mar-ket’s Grotenstein. “I don’t keep my Frenchcheeses together, but instead have the Blueswith the Blues, Cheddars with the Cheddars,from all around the globe. I’d be cautious notto isolate an ethnic foods program from therest of the pack, no matter what department.Use it to demonstrate your appreciation offoods worldwide.”

Learn And Teach A thorough understanding of the prod-

ucts is essential to success. “Like anythingyou introduce, you should only do it if you’rebehind it and can promote it,” says Groten-stein. “This means you understand the foodsor the category well enough to explain it toyour staff so they can inform your cus-tomers. Don’t simply plunk something exoticdown in the showcase and expect it to sell,especially if these items are new your cus-tomers. Without product knowledge to backit up, you’ll turn away customers rather thanattract them.”

InnovAsian’s Phelps suggests looking atgood examples, “Stores should benchmarkthe successful ethnic players. For example inthe Asian category they can look at PFChang’s, Panda Express, etc.”

Karoun’s U.S. versions of Greek, Armen-ian and Middle Eastern yogurts and cheeseshave traditionally been niche products target-ed to specific ethnicities but the increasinginterest in ethnic foods indicates more main-stream consumers are ready to try them. Ini-jian believes packaging is crucial to gettingthem to take the plunge.

“One of our products in labne, which isstrained spreadable yogurt. U.S. consumersare not familiar with it so if we just put labneon the package, it wouldn’t have legs. Weadded the terms kefir cheese and spreadableyogurt to the package to target many con-sumer segments. Labne appeals to the ethnicaudience, kefir cheese to the health-foodcrowd and spreadable yogurt to the massaudience,” he explains.

Promotion to and education of customersare also key. “If you’re new to this, you needto let people know you now carry theseitems,” says MIC’s Lardizabal. “So spendingsome effort to get the word out throughadvertising and introducing ethnic food offer-ings makes sense. If your customers or evenpotential customers don’t know you havethese items, they won’t go to the deli lookingfor them. The more people that know youhave a particular item, the better yourchances to increase sales.”

“Mostly it comes down to getting it in thecustomer’s mouth,” says Bennett. “When wehave had Indian food, most of our customersdidn’t know what it was and it was aboutgetting the customer to taste it.”

Ensuring the appearance of the productsis a way to promote sales. “Make sure theproduct always looks fresh and the display isfull to capitalize on as many impulse sales aspossible,” advises Phelps. “Supermarketshave great foot traffic and this is a naturalway to build incremental sales.” DB

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Passage To IndiaOnce hard-to-find Indian foods now make regular appearancesin mainstream delis around the United States and Canada

BY JACQUELINE ROSS LIEBERMAN

60 DELI BUSINESS JUNE/JULY 2009

Over the past several years, super-market delis have seen tremen-dous growth in the sales of Indianfoods. An influx of Indian immi-grants, the broadening of the

mainstream U.S. taste palate and increasedinterest in vegetarian meal options have con-tributed to the uptick in this ethnic cuisine.

Sanjog Sikand, marketing director forSukhi’s Gourmet Indian Food, Hayward,CA, says her mother Sukhi Singh started thecompany’s foodservice offerings 15 years ago“thanks to Bill Gates. Lots of Indians werecoming to Silicon Valley. They brought theirlunch to work and a large high-tech compa-ny wanted to convert them to the cafeteria.We developed spice mixes to create authen-tic Indian flavors.” About 10 years ago,Sukhi’s foodservice products became avail-

able in universities and colleges, grabbing thenext generation of shoppers early.

Kontos Foods Inc., Paterson, NJ, beganoffering its Indian-style breads and yogurtduring the 1990s. At that time, these prod-ucts appeared mostly in New York andToronto. Today, they are popular in “themajority of the Northeast — ShopRite, Tops,Giant, Demoulas, Key Food, Wegmans —Dierburgs, Fiesta Markets, Treasure Island,selected Krogers, all Safeway marketsthrough out the United States, as well asCanadian retailers Loblaw’s, Metro andSobey’s” according to Demetrios Haralam-batos, Kontos corporate executive chef.

“We find greatest penetration in theNortheast,” relates Jim White, co-founderand partner, FGF Brands, Concord, ON,Canada. The bakery, which began produc-

tion in 2006, produces traditional, authenticethnic flatbread under the brand name Inter-national Fabulous Flats. Its Tandoori naanwas named Best new product in the U.S. byPrepared Foods, a leading U.S. food industrymagazine.

“Consumers feel that bagels are ‘so2007.’ What used to be a ‘hot’ hand-held isnow ho-hum. Consumers were looking for anew bread, and we met this pent-up demandwith the first commercial tandoor-bakednaan in America,” says White. “We freezeour fully baked naan and ship to every cornerof the United States. At present, we’re inmore than 10,000 supermarket locations andthousands of delis. We manufacture and sellone million hand-stretched, tandoor-bakednaan each week.”

Karoun Dairies, Sun Valley, CA, which

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saw its Indian-style yogurts and cheesestake off in ethnic Indian and MiddleEastern delis when it began productionin 2000, now sells to mainstream delisand supermarkets around the country.“Isee tremendous opportunities forgrowth in the American mainstreammarket both retail and foodservice,”reveals Rostom Baghdassarian, COO.

Kontos’ Haralambatos attributesthe vast growth of Indian foods to anumber of factors, including an influxof immigrants and “the increase in con-sumers’ demand for vegetarianism.Secondly, the romance of Asian foods— there is an increase in Asian restau-rants such as P.F. Chang’s — where notonly is Chinese offered but there arealso Indian dishes on the menu.”

FGF’s White believes the increased travelundertaken before the market meltdownexpanded American palates. “Americanshave traveled heavily these past 10 years andmany have discovered the tasty ethnic foodsof India, Vietnam, Cambodia, and they wantto be able to replicate their traveling tableexperiences back home in America.”

A proliferation of Indian restaurants hasalso sparked interest in Indian cuisine.“Nationwide, there are lots of Indian restau-rants that American consumers go to and trydifferent types of Indian food,” says Baghdas-sarian. “Some of the dishes are simple andquick enough for people to try it at home.”

Many delis are finding ways to incorpo-rate Indian foods into their offerings. “Manyindependent delis and supermarket in-storedelis now receive our naan as IQF product incartons. They thaw and use the flatbreadsfor sandwiches, for party trays, for tasty roll-ups or wraps or for panini-like sandwiches,”he continues.

Indian foods attract health-conscienceconsumers, as well, according to Baghdas-sarian. “It’s most popular with Americanconsumers who are health conscious,because most Indian dishes are vegetarian,where they use variety of vegetables thatcontain protein. Paneer cheese, for example,is a high-protein food. It’s an excellent substi-tute for meat in an essentially vegetarian diet.The yogurt and the yogurt drink lassi thatare served and consumed with Indian dishesare a very good source of calcium. The liveactive and probiotic cultures in the yogurtand yogurt drink boost the immune systemand enhance digestion. Also, [Indian foods]use lot of herbs and spices that have healthbenefits. For example, turmeric is believed tohelp reduce the risk of getting Alzheimer’s.”

A Panoply Of FoodsThe foods of India’s many regions vary

but they all share some characteristics. “Indi-an food is more complicated and very differ-ent from European cooking, which is basedon precision,” explains Sukhi’s Sikand. “Indianfood cooks for a long time.

“We educate the buying staff aboutregions and pronunciation. Our focus isalways mainstream but we never dumb itdown. We never give up quality. The Ameri-can palate has expanded to include more fla-vors, bold flavors, vegetarian options and glob-al cuisines,” she continues. Sukhi’s provides 5-pound foodservice bags of 14 Indian entrées aswell as grab-and-go NaanWiches — conve-nient, handheld Naan bread with fresh Indianfillings — to such high-end retailers as WholeFoods, Fresh Market, Harris-Teeter, BristolFarms and Earth Fare. The company alsooffers food-bar schematics showing what toserve and what to serve it with.

India is famous for its dairy foods, andKaroun Dairies offers some of the most pop-ular types for American delis in sizes for bothfoodservice and consumers under its GOPIbrand name. Paneer — a fresh cheese usedin many popular dishes — is made withrecombinant bovine somatotropin (rBST)-free milk. Plain and mango lassi is available in1-pint containers or half-gallons. It containslive and active cultures and is certified KSAkosher. Indian-style yogurt, which is alsorBST-free, is certified OU kosher and con-tains live and active cultures.

Kontos also offers an Indian-style yogurt.“This yogurt has been strained so that thecurd has remained,” explains Haralambatos.“It’s used widely in Indian and EasternMediterranean cuisines. For example, it’sused to make Chicken Tikka, as well as tomarinade chicken and pork before grilling.”

Of the Indian breads, naan is perhaps themost well known. “Our first flatbread, andour most successful to date, has been theInternational Fabulous Flats Tandoori Naan,”

says White. “Our oven bakes our naanat 1400° F in 35 seconds, just as theywould be baked in a restaurant tandooroven. Our naan are blistered, just as theones found in an Indian restaurant, andthey have that smoky, sultry aroma youexpect to find in naan. We use ghee —clarified butter — and buttermilk tomoisten and flavor our naan, just asthey do in India. We hand-stretch everysingle naan we make.”

Kontos reports its Tandoori Nan isone of its most popular Indian flat-breads, as well. “A most versatile ovalflatbread that can expand your menu,it’s featured in many Indian, Pakistaniand Pan-Asian restaurants through theUnited States and Canada,” explainsHaralambatos. He says Kontos uses

the dough ball method when making all of itsbreads, resulting in high-quality flatbreads.

Kontos makes other variations of naan, aswell, including Roghani Nan (known for itssoftness and flexibility), Onion Nan (madewith chopped onions and a blend of kalunji,ajwan, cumin, coriander and sesame seeds),Kulcha Nan (a staple in Central Asian cui-sine, oil is added after the baking process toadd flavor and softness) and Massala Nan(flavored with a blend of fresh chopped hotchilies and onions with oriental spices).

In addition to naan, Kontos also offersother Indian-style flatbreads, including MissyRoti made with chickpea flour, herbs andspices, “for those who appreciate tangy, spicyfood,” says Haralambatos. He describesMissy Roti as having a hot, but not over-powering, flavor.

Kontos also hand-makes Barbari Flat-bread (an over-21-inch long oval-shaped softflatbread featuring sesame seeds), Chapati(classic 7-inch round flatbreads separated bywaxed paper interleaves) and a very thin flat-bread called Handkerchief Flatbread, alsoknown as Roumali or Markook.

All of the Kontos’ flatbreads are certifiedhalal as well as kosher, which adds appeal notonly to religious Muslims and Jews, but alsoto vegetarians and others who are con-cerned about the ingredients in their foods,notes Haralambatos.

Look forward to an even greater varietyof flatbreads to become available from man-ufacturers in the near future. “We believeAmerica is ready for a series of tasty authen-tic ethnic flatbreads,” says White. “Naan isjust the start for FGF Brands. Think back tothe early ’80s when bagels were a noveltyitem in many parts of America. Last year —2008 – was the dawning of the ‘naan age,’and I suspect that in 10 years they will havebecome as ubiquitous as bagels have sincetheir debut in the ’80s.” DB

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Deli Business Annual Meat Supplement

Deli Meats 2009The Deli Meat DilemmaDry-Cured Deli Meats

The Private Label Evolution

DELI BUSINESSMARKETING MERCHANDISING MANAGEMENT PROCUREMENT

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64 DELI BUSINESS JUNE/JULY 2009

The deli meat category is a series ofcontradictions. Consumers are stilllooking for quality, but in this unsta-ble economy, value has become anecessary part of the equation.

Many consumers who are reining in theirdiscretionary spending by eating out lessoften are turning to the deli department as analternative. Legions of workers who thoughtnothing of eating lunch out on a daily basisare now brown-bagging it, but they still wanttaste and convenience. Many are bringing asandwich to work. For those making sand-wiches at home, deli meats are fast and easy,offering an almost endless variety of optionswhile being far less expensive than going outto lunch. Picking up a sandwich at the delidepartment still has a lower price tag thanthe local sandwich shop, albeit there’s nodelivery option.

For consumers who couldn’t afford todine out daily during the boom times, thecurrent economy presents a serious chal-

lenge. These shoppers are turning to lessexpensive versions of the lunches they’vealways eaten, but they still want quality inthe foods they prepare for themselves andtheir family. They may be primed to receivethe private-label message.

Sandwiches are also more likely to showup on the dinner table than in the past fewyears. Fewer young people actually know howto cook, but families are still time-pressed andmoney is tight, so a quick run to the localfast-food or pizza joint is rapidly becoming atreat rather than the modus operandi of abusy work night. A sandwich seems a logicaloption. And if the deli can educate consumersabout other uses for sliced deli meats, theresult can be only greater sales.

According to The Nielsen Co., New York,NY, prepackaged refrigerated lunchmeataccounted for $5.23 billion in sales via U.S.food, drug, and mass merchandiser storesduring the 52 weeks ending March 21,2009, up 4.8 percent from a year ago. Man-

ufacturers report value-tiered deli meat isnot experiencing growth at the same rate aspremium items. “We believe this is due to thecontinued consumer focus on bringing value,taste and freshness to their home-preparedmeals, and the recent propensity of the con-sumers to exchange eating-out occasions forin-home solutions,” says a spokesperson,who wishes to remain anonymous, for SaraLee Food & Beverage U.S., based in Neenah,WI.

The Economy’s EffectThe value proposition — high quality at

a reasonable price — looms large in the delimeat segment. Consumers are unwilling, thusfar at least, to trade one for the other.

According to Paul Bulman, vice presidentof marketing at Creta Farms USA, based inLansdale, PA, “In this economy, everyone isbeing more frugal. Consumers are demand-ing more value. We’re seeing coupons beingredeemed at a much higher rate than in the

Deli Business Annual Meat Supplement

The Deli Meat DilemmaConsumers are looking for quality and flavor,

but they also want to save money

BY LISA WHITE

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JUNE/JULY 2009 DELI BUSINESS 65

past, reaching the 20 to 25 percent mark.”Shoppers don’t want to sacrifice quality

for a lower price, so they’re steering towarddeli meat they perceive as the best value forthe cost. The Madison, WI-based Internation-al Dairy-Deli-Bakery Association’s (IDDBA)What’s In Store 2008 report states value,health and wellness, preferred tastes and con-venience drive consumers to deli purchases.

“We don’t consider these consumerbehaviors trends but view them as evolution-ary changes,” notes Gina Asoudegan, commu-nications manager at Applegate Farms, basedin Bridgewater, NJ. “Consumers have raisedtheir standards when it comes to deli meats.”

There also has been an uptick in super-market deli sandwich programs, which havebenefitted from the sluggish economy. “Ingeneral, prepared foods in the deli have beenselling well, as people trade down fromrestaurants,” relates Bob Ruth, senior vicepresident of sales and marketing at Hatfield,PA-based Hatfield Quality Meat.

Retailers are capitalizing on this trend byexpanding store sandwich programs and cap-turing more foodservice dollars.

Private-Label PrevalenceThe emphasis on value has resulted in an

increased interest in private-label deli meatsfrom both retailers and consumers.

To a generation of consumers, deli meatmeans whole-muscle meat; they may noteven be aware of some of the processedmeat alternatives that previous generationsgrew up on. For others, high-quality ethnicsalami is the closest they’ve come in decadesto processed meat. These are the consumerssupermarket delis should target with theirprivate-label programs.

“There continues to be a strong interestin high-end deli meats, specifically with retail-ers looking to add private-label programs,”says Kyle Maas, product marketing managerat Grand Rapids, MI-based Michigan TurkeyProducers. “There’s clearly a much strongeremphasis on product quality now, as retailersare beginning to see the payoff. This, cou-pled with a sluggish economy, has nudgedconsumers toward the less expensive storebrand over the national brand. I believe thiswill only gain momentum as people’s percep-tion of store brands continues to shift.”

Many supermarket delis are now splittingtheir cases equally between high-end premi-um brands and value-priced private-label delimeats. “More recently, in this economy, we’veseen more of a hit on premium brands. Folksare trading down to private label,” says Ruth.

The focus on private-label products hasresulted in volume growth, according to onemajor deli meat supplier. In response, a grow-ing number of retailers is escalating private-

label products to the premium tier.“Premium deli meats are driving more sales

dollars and increased conversion of shoppersto the deli,” says the Sara Lee spokesperson.“Value-tiered items still have a place in thecase, but consumers still look to premium delimeats for value and consistency, as well astrue meal solutions for their families.”

A Healthful And Flavorful FocusConsumers may be contending with

shrinking budgets, but they’re not ready tosacrifice flavor or their health when shoppingfor deli meats. Short of something cata-strophic, the I-want-it-all mentality is likely toweather this current economic storm.

“Great taste and wellness are becomingmore inseparable in this category,” Bulmansays. “Deli meat manufacturers who under-stand consumer needs are pairing taste andwellness to provide a good consumer proposi-tion for retailers to deliver to their customers.”

Several companies are focusing on bothtaste and health. Creta Farms’ gourmet delimeats are produced with first-pressed extravirgin olive oil. By creating a more healthfulprofile, “We’ve been able to absolve delimeats from their former reputation in themarketplace,” adds Bulman.

In an effort to target consumers focused

on more healthful eating, Hatfield recentlydebuted a new deli meat line that replaces ani-mal fat with olive oil. The line has been testedin the Northeast where it garnered a greatdeal of interest. Also targeting consumerslooking for a more healthful deli meat profile,Sara Lee now offers a lower sodium line.

The continued focus on health doesn’tcircumvent flavor. Flavor still trumps every-thing else. If deli meat doesn’t provide thetaste consumers are looking for, they won’tpurchase the product a second time.

Consumers have not given up looking fornew varieties and unique flavor profiles in allfood items, including deli meat. “It’s the con-sumers who dictate to the market the thingsthey want to see,” explains Bobby Yarbor-ough, CEO of Manda Fine Meats, BatonRouge, LA. “For example, Cajun isn’t just afad any longer. Spicy is here to stay.”

Consumers want to enjoy quality delimeat but they remain focused on value andmore healthful product profiles. Today’seconomy offers retailers a great opportunityto differentiate themselves. Supermarketdelis that provide a wide selection of prod-ucts, including premium brands, private-labelmeats, more healthful selections and achoice of flavors, will reap the rewards ofrepeated rings at the register. DB

Deli Business Annual Meat Supplement

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66 DELI BUSINESS JUNE/JULY 2009

Turkey may have reigned supreme asthe deli’s top meat in the past, but itnow appears a roast beef revival maybe in the works.

In the 52 weeks ending Feb. 2,2009, roast beef sales totaled more than$452 million and accounted for 79 percentof deli beef sales, ahead of pastrami andcorned beef, according to FreshLook Market-ing Group, Hoffman Estates, IL.

“The roast beef segment has been trend-ing up for the last five years, but now it’s at alittle slower pace,” says Joe McMurtrie, direc-tor of operations, Dietz & Watson, based inPhiladelphia, PA.

According to Ken Hoffman, head of Dietz& Watson’s advertising and sales promo-tions, the category has experienced about15 percent growth so far this year.

A number of notable trends in this seg-ment have helped propel this category’sgrowth in recent years.

What’s SellingWith many consumers continuing to

focus on more healthful eating, more retailersare focusing on roast beef products withminimal added ingredients.

“The main trend in this segment is thatmanufacturers are creating cleaner labels,”relates Guy Giordano, president, VincentGiordano Corp., Philadelphia, PA. “Specifical-ly, retailers don’t want to see allergens inthese meats.” In response, the company hascreated a new Angus top-round roast beef

line with all natural seasonings and is offeringit at a lower price point than high-end natur-al and organic roast beef lines.

Consumers demonstrating increased inter-est in where food comes from and how it’sproduced are looking for minimally processedproducts. “At the deli counter, shoppers wantproducts that are less processed with shortingredient statements,” notes Gina Asoude-gan, communications manager, ApplegateFarms, Bridgewater, NJ.

In today’s economy, consumers also arelooking for higher-quality roast beef at a valueprice. “We’re constantly being asked to pro-vide retailers with a high-end private labelroast beef under the store brand or our brand[which are at more affordable price pointsthan our competitors],” Giordano adds.

Charlie’s Pride Meats, a roast beef suppli-er based in Vernon, CA, has seen a 10 to 15percent drop in its sales in this meat catego-ry, according to Robert Dickman, president.“Our middle- and low-tier roast beef lines areselling the best,” he says. “Still, our high-endKobe beef is doing very well.”

The company recently tried launching nat-ural and organic lines, but the timing was off.“Today’s environment is the worst to launchthese types of products, because they’repricey,” Dickman explains. “My prediction isthe natural roast beef segment will thrive threeyears from now.”

Applegate is seeing consumers migratefrom organic to less expensive antibiotic-freemeats. The only difference between the two

Photo courtesy of Dietz &Watson

is in the animal food. Organic meat comesfrom animals fed 100 percent organic feed.

Consumers who feel strongly about thehumane treatment of animals will continue toseek out natural and organic products thatmay have stricter standards in this regard. Ifprices increase, these shoppers will buy lessbut still remain loyal to this category.

“The feedback we receive from stores isthat natural and organic meat products havemuch more price elasticity than conventionalproducts, so consumers continue to buythem in the current economy,” Asoudegansays. This is largely because the natural andorganic meat customer is motivated by beliefsand values in addition to price.

Although Kathy Endicott, marketing spe-cialist, E.W. Grobbel Sons, Detroit, MI, isnoticing a trend toward minimally processedrare roast beef, she says ingredient changeshave helped improve product shelf life andquality. “For example, there are ingredientsthat improve shelf life by actively minimizingbacterial growth.”

Roast beef plants have made significantstrides in sanitation and the reduction ofcross-contamination through new processingequipment and enhanced process review.“With the post-pasteurization process, someproducts are briefly reheated after final pack-aging to reduce any cross-contaminationthat may have occurred during final pack,”she explains.

Roast beef is more conservative in termsof flavors than other meat categories. “Flavors

Deli Business Annual Meat Supplement

Roast Beef’s ResurgenceWith more healthful varieties and high quality

lines, roast beef sales are holding steady

BY LISA WHITE

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cials and merchan-dising roast beefwith sandwich fix-ings work well.“Retailers need tothink outside thebox,” he says.

In conjunctionwith its roast beeflines, Dietz & Wat-son offers retailerspoint-of-sale materi-als and sandwichand party platterprograms. “Customersare looking for new products, so it’s impera-tive to make the deli a point of destinationfor roast beef,” Hoffman adds.

Fortunately, with its price decreasing inrecent months, roast beef will be on a moreeven keel with chicken and turkey. “Roastbeef will continue to flourish,” according toDickman. “Manufacturers need to put outconsistent product at a great price, and itwill sell.”

Supermarket delis that pay attention totrends, incorporate roast beef into innovativesandwich programs and properly merchan-dise a variety of roast beef items will experi-ence increased revenues in this category. DB

68 DELI BUSINESS JUNE/JULY 2009

make up only about 5 percent of our busi-ness,” notes Charlie’s Dickman. “Old fash-ioned roast beef is still the biggest seller.”

Current economic conditions have provid-ed added opportunities for delis selling roastbeef as part of a meal replacement program.“Roast beef sandwiches in the deli are faringbetter than center-of-the-plate products,”according to Giordano of Vincent Giordano.“People are eating value consciously, so theywould consider purchasing a deli sandwichbefore investing in a more costly meal.”

As a result, retailers are becoming morecreative with deli sandwich programs. To cap-ture more of the foodservice business, manyare creating signature programs or upscalingproduct, such as roast beef Reubens. Theseunique touches are helping to revitalize sand-wich programs at retail.

Dietz & Watson’s Hoffman says roast beefis a big player in sandwich programs becauseroast beef is more affordable in sandwichesthan when purchased by the pound.

Still, with consumers’ disposable incomecontinuing to shrink, value is the focus. “Interms of foodservice, it’s all about providingthe best price possible,” notes Charlie’s Dick-man. He predicts roast beef prices will stabi-lize and retailers will be able to pass on thesesavings to consumers.

Marketing To Move ProductsIn the deli, roast beef is often placed on

special alongside turkey, yet there are othereffective and more proactive methods ofmerchandising these meats.

“Although in the past, retailers had beentrending toward one brand across all items inthe deli, recently there has been renewedinterest in the best-in-class specialists likeGrobbel’s roast beef, corned beef and pas-trami,” claims Endicott. “This allows delioperators to create a more distinct identity,which is obviously advantageous.”

Manufacturers have become increasinglycreative in their marketing efforts. VincentGiordano has been running a consumervideo chef contest that will end June 15. Tar-geted toward college kids, it asks consumersto submit a video showing how they wouldcreate a sandwich with the company’s delimeats. Winners will receive a $4,000 prize.Based on the results, the company willdonate up to $40,000 to a children’s chari-ty. “In the past, we sponsored a CulinaryInstitute scholarship where we received cre-ative sandwich ideas that we passed on toretailers,” Giordano says.

Cross-merchandising also is an effectiveway to highlight roast beef products. Dick-man believes that offering two-for-one spe-

Roast BeefTrends• Clean labels

• Minimal processing

• High quality

at value prices

• Antibiotic-free

• Cooked rare

• Signature sandwiches

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JUNE/JULY 2009 DELI BUSINESS 69

Dry-Cured Deli MeatsThese “luxury” foods remainpopular, despite the economy

BY JACQUELINE ROSS LIEBERMAN

During the past several years, Ameri-cans — inspired by travel, televisionshows, magazines and restaurantexperiences — have discovered awide range of cured meats from

around the world. “People are eating moresophisticated foods with more sophisticatedtastes. The time is right for these productsfor a lot of people in a lot of ways,” says JimCarfrae, vice president marketing, Toronto,ON, Canada-based Santa Maria Foods Cor-poration, makers of Italian-style productsincluding prosciutto and dry-cured salami.

Despite tighter budgets, consumers arestill willing to purchase them. “I think part of it

is the excitement of discovering somethingnew and delicious. European-style dry-curedmeats are still new to many parts of the Unit-ed States,” notes Davide Dukcevich, sales rep-resentative, Pascoag, RI-based Daniele, Inc.,makers of “the whole spectrum of dry-curedmeat products, from prosciutto to jamón Ser-rano, sopressata to chorizo, pancetta to Hun-garian salami.”

At the same time, Carfrae notes, thesefoods are not so exotic that they scare peo-ple away. “It’s just one comfortable stepaway” from what they know, he says.

Dry-cured meats also offer an easy wayfor strapped consumers to have one small

taste of luxury, according to some. “You’renot eating a pound of it. A small portiongoes a long way,” points out Ruth Lowen-berg, a New York, NY-based spokespersonfor the Consorzio del Prosciutto di Parma.

Many are unwilling to give up the foodsthey came to love during richer times. “So far,so good, thank goodness,” Dukcevich says ofDaniele’s recent sales. “One reason we’redoing okay is because people can usuallyavoid the electronics store or the furniturestore, they can’t avoid the supermarket.Daniele’s salami and prosciutto are still a veryaffordable reward for most people.” And, henotes, “People tell me they’re bored with the

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70 DELI BUSINESS JUNE/JULY 2009

conventional bologna, cooked ham and pep-peroni they grew up with. I can understandthat. When you taste mortadella for the firsttime, you usually don’t go back to bologna.”

Dry-cured hams, in particular, have gainedpopularity during the past several years.According to Alberto Minardi, general manger,Principe Foods USA, Inc., Long Beach, CA,“Consumers are becoming more aware of pro-sciutto in general.” The company makes andexports a number of Italian foods, includingprosciutto. “We aim to educate continuouslythrough demonstrating the product at retaillevel as well as through trade media.”

As Americans become more educatedabout these products, they not only becomefamiliar with the taste of cured meats butalso understand how to use them. “It’s justgreat how versatile the products are,” notesSanta Maria’s Carfrae.

Spain’s Serrano ham — though not aswell-known as prosciutto — is reaping therewards of a more food-educated America.“Spanish cuisine in general, and Serrano hamin particular, have become more popular andbetter-known in the last five years,” says KateWhittum, director of sales and marketing,Garden City, NY-based Redondo IglesiasUSA, makers of Serrano ham. “Serrano will

really break into the gourmet mainstreamwhen there’s a line of grab-and-go productsfor pegboard walls in deli departments. We’reactively working on this at Redondo USA.”

Packaging has played a huge role in thecontinuing success of dry-cured meats in thedeli, according to many in the industry. “Thepre-sliced product is driving a lot of trial,”says Carfrae. “People are a little nervousabout asking for it at the deli counter.”

The packaging allows more stores to carrya variety of cured meats without additionalstaff education or space. When pre-slicedprosciutto di Parma became widely availablein the United States in 2003, it suddenlybecame possible for any store to carry it. Arecent decision by the Consorzio del Pro-sciutto di Parma to approve an increase forthe shelf life of some pre-sliced, packagedprosciutto di Parma from 90 to 120 days hasopened the market even more. In the past, “Alot of smaller retailers were reluctant to getthe pre-sliced prosciutto because they didn’twant to be stuck with it,” explains Lowenberg.

The Consorzio made the decision to allowa 120-day shelf life for prosciutto from hamsweighing between 15.5 and 19 pounds, withcorresponding curing times of 15 to 19months, after extensive laboratory analysis

demonstrating that the quality and safetyremained unaltered for that time. This isbecause, as the curing time increases, themoisture content of the ham decreases,resulting in a product that is more stablemicrobiologically and less susceptible todeterioration that could lead to changes inappearance, taste and aroma.

Imports Still StrongConsumers may still be buying imported

cured meats, but that doesn’t mean businessis as strong as it always was. “As with anyhigh-end luxury item, the economy hasslightly affected sales, although retailers aswell as foodservice operators understand theimportance of providing a high-end choicefor their consumers,” notes Minardi.

Prosciutto di Parma felt a little bit of thesting in 2008. “We had a little setback, asany other specialty foods did, but no moreso than other specialty foods,” he says,adding that in March, sales had started tocome back.

The slowdown is only natural consideringhow fast the growth rate was during bettereconomic times. “Cured products, per se,during the past 10 years have seen double-digit growth in both foodservice and retail,”Minardi notes. With many restaurants suffer-ing during the economic downturn, sales ofthese items to foodservice are down. “But,funny enough, in terms of retail the slope hasnot been as much. Retailers are still holdingup.” One reason comes back to foodservice— prosciutto has become an importantingredient for retail sandwich programs.

Whittum notes an interesting trend.“There has been an interesting shift in thebreakdown of the product mix in sales. Ouryounger boneless Roja jamón has become asmaller percentage of sales, while ourtrimmed and pressed Deli Loaf and the moreaged Riserva Oro have increased. I believe thisreflects two trends that have become appar-ent in the economic slowdown. First, opera-tions are looking to be more efficient anddecrease labor. The Deli Loaf is high-yield and

Deli Business Annual Meat Supplement

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72 DELI BUSINESS JUNE/JULY 2009

very easy to use, so it cuts down on labor andhas low shrink, even though it is more expen-sive per pound than the Roja jamón. The sec-ond trend is that businesses are looking toget good value for money, which doesn’t nec-essarily mean using a cheaper product. TheRiserva Oro is the best jamón Serrano avail-able in the United States and consumers willstill pay for quality. It’s no bargain to decreasequality but leave pricing the same. The con-sumer knows what you’re doing and feels

you’re ‘putting one over’ on them.”Still, there are high-quality imported

products with lower price points for thoselooking to cut back. Principe offers a pro-sciutto called Estero — under the brandname Bora — made using pigs raised out-side of Italy. The raw material is premium,Minardi insists, but not as heavily regulatedas Italian— the animals could be smaller, forexample — and therefore less expensive.“The processing is done in the same plant

where we produce San Daniele, which meanswe use the same amount of salt for curing,”he says. “Although the taste of Bora is notthe same as San Daniele, it’s still a very sweetproduct and a very velvety product. It’s high-quality and value-driven at the same time.”

North America’s High-Quality AlternativesThe comparatively low price point of

cured meats produced in North America mayexplain why some of them are seeing growthwhile European versions remain steady.

“Our dry-cured salamis are up 6 percentthis year and prosciutto sales are up 14 per-cent,” reports Santa Maria’s Carfrae, whichprides itself on making high-quality curedmeats in the Italian tradition. “What reallymakes them special is how they’re made, intraditional ways with traditional recipes.”

Some will argue these are not authenticEuropean foods, but many companies striveto come close. “I think people respond tothe authenticity of our dry salami products,their appearance which speaks to Italian tra-ditions and perhaps a nostalgia for someamong our customers,” explains Paul Bertolli,founder and curemaster, Berkeley, CA-basedFra’ Mani Handcrafted Salumi, makers of tra-ditional Italian-style fermented salamis.

Daniele, a U.S.-based company, got itsstart in Europe. “In 1976, it was not allowedto bring prosciutto to this country from Italy.So my dad built a plant in Rhode Island. Hefound wonderful raw materials to work with— American hogs are corn-fed and secondto none,” says Dukcevich. Daniele now createscured meats in a variety of European styles,including Spanish, in addition to the Italian-and German-style products it began with.

But Europeans are not the only peoplewhose cured meats are steeped in local tradi-tion. Sometimes called “country ham,” Amer-ican-style dry-cured ham evolved from Euro-pean recipes to become a traditional food inits own right. Most of these are made in theSouth, where the terrain is best suited forthe job — the winters are cold but not socold that the meat freezes, and summersoffer perfect conditions for curing. Just as inEurope, smoky hams emerged in areas thattend to be more humid.

Most country hams are sold cooked orready-to-cook (usually by frying or baking),possibly because of an old, unfounded fearof trichinosis. But as more raw cured hamsare consumed by Americans, artisan produc-ers are making country hams specifically tobe eaten that way. These hams are muchmore expensive than commodity products,yet they’re often a bargain compared to simi-lar European products — something to con-sider these days when “value” has become animportant word. DB

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JUNE/JULY 2009 DELI BUSINESS 73

Even before the economy took a turn,the private-label segment displayedhealthy growth that many attribute tothe multiple changes this category hasundergone in recent years. Specifically,

private label has expanded to include mid-and top-tier products.

Two trends — retailers’ attempt to keeppace with recent price increases by nationalbrands and the proliferation of new and high-value private-label items, especially in broad-based premium tiers — reveal increased con-sumer perception of store brands on equalterms with national brands and growingacceptance of premium and value-added pri-vate-label products across more categories.

“For the most part, store-brand productscan be excellent alternatives to their brandedcounterparts,” explains Alan Hiebert, educa-tion information specialist for the Interna-tional Dairy-Deli-Bakery Association(IDDBA), Madison, WI.

Many chains have begun offering severaltiers of private-label deli meat products toappeal to a wide range of consumers andbudgets. As full-color packaging has becomemore economical, chains can easily differenti-ate the tiers of private-label products andmake them brands themselves, he notes.

Given the current economic conditions,more delis are using value private-label prod-ucts to create price differentiation. “Up untillate summer and early fall of 2008, the trendswere moving toward more premium private-label meats,” says Michael Gloyne, vice presi-dent and general manager of Smithfield, VA-based Smithfield Foods’ deli group.

Now, stores are more likely to include botha higher-end and a value private-label deli

The Private Label EvolutionAs retailers strive to distinguish their storesand offerings, private-label deli meats are

becoming a point of differentiation.

BY LISA WHITE

Deli Business Annual Meat Supplement

meat in the mix. “Stores used to have premi-um and mainstream branded products with avalue private-label offering. Now, retailers aremoving toward a two-tiered private-label delimeat program that includes either a main-stream and value offering or a more upscaleline coupled with a mainstream or value line,both of which are offered along with a singlemanufacturer brand,” explains David Gerle,senior director of lunchmeats for Tyson Foodsin Springdale, AR. The two private-label meattiers are distinguishable and segregated asare their branded counterparts.

“The fact that some retailers provide atwo-tier private-label offering is a testamentto the difficult economic times,” notes MarkRuth, national sales director at HatfieldQuality Meats, Hatfield, PA. Yet, these pro-grams offer added opportunities. “Retailerscan provide sound private-label productsavailable only at their stores. These signaturestore brands have a closed audience.”

The flexibility of these programs attractsmany delis. According to Kristin Clemmer,director of marketplace strategy, Fresh Mark,Massillon, OH, “Each store has its own specsin terms of the meat and ingredients.”

Offering more store brands also expandsdeli offerings, gets the store’s name or brandout to consumers and helps solidify shop-pers’ relationship with the store. “Not onlydo these programs allow us to go outsideour core, but we can also offer retailers moreitems,” Ruth explains. “It’s a nice way to getour foot in the door with a new customer.”

The potential of these products has moreretailers incorporating private-label programsinto their service deli programs. “Even beforethe economy soured, private label was gaining

momentum in the service deli,” Gerle adds.“This is because delis want customers to pickup something with their store name on it.”

In the last six to 12 months, notes BudDowning, Tyson product manager for delimeats, even smaller retailers are expandingtheir private-label deli meat programs sincethey can now tap into a working private-labelproduction line or copy an existing formula,allowing them to match a current price point.

“If the private-label product is using anoff-the-shelf formulation that’s already inproduction, retailers can tie into existing pro-duction schedules and batch requirements,”Gerle explains. “However, if retailers want todevelop custom recipes, then minimum batchrequirements and production restrictionscome into play. These can drive up the costor restrict a retailer’s ability to offer all of theitems it wants.”

There are options, however, since retailersoften source private-label products from mul-tiple suppliers. “Retailers are typically lookingfor more than one private-label supplier,” saysClemmer. “They generally seek lower-costalternatives. For example, they may have abranded bologna line and are looking to takecost out of the product by switching to a pri-vate-label meat.”

Suppliers usually bid for private-label con-tracts, so it’s a price-oriented arrangement.“This may be why more commodity private-label products, such as bologna, are growing.It is really a price issue,” she explains.

Typically, private-label sales are strongestfor products that don’t have a great deal ofdifferentiation. For example, private-labelbologna may sell better than higher-endmeats. “Consumers are more likely to switch to

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74 DELI BUSINESS JUNE/JULY 2009

a private-label brand when the risk is lower interms of compromising quality,” Fresh Mark’sClemmer says. “They’re more loyal to uniqueor high-quality brands. Shoppers also are will-ing to try private-label products that offer sig-nificant cost savings over branded items.”

Most consumers are more likely to pur-chase a branded specialty deli meat than aprivate-label alternative. “Higher-end retail-ers, such as Whole Foods and Trader Joe’s,have their own higher-end private-labelmeats, but most chains wanted branded

products,” relates Riccardo Mapelli, productmanager and buyer of meat, cheese and Ital-ian specialty products for Elizabeth, NJ-based Atalanta Corp., which imports prod-ucts from more than 60 countries. “Upscaleretailers and larger supermarket chains areprivate-label oriented for certain deli meats,but not so much for cured meat.”

Whatever the product, it can be tricky forhigh-end retailers to private-label upscalebrands. “Quality is not always equal, evenwith higher-priced brands,” he adds. “We

teach retailers how to distinguish betweenquality and different prices.”

Marketing And MerchandisingBecause private-label deli meats can be a

good, lower-cost alternative to branded delimeats, supermarkets may benefit by empha-sizing the price and quality of their private-label offerings. “In some stores, private-labelproducts may benefit from front-and-centerpositioning. Others may have many cus-tomers looking for specialty products oftennot available in the store-brand line,” explainsIDDBA’s Hiebert. “I think most stores shouldemphasize the value for the money their pri-vate-label products can give their customers.Chains across the country have hidden gemsin their private-label lines.”

Marketing and merchandising private-label deli meats are generally not much dif-ferent than marketing and merchandisingbranded, although much depends on pricingarrangement with vendors. “Suppliers willprovide a net price and then offer add-onsto fund promotions and point-of-sale materi-als,” Tyson’s Gerle notes. “Or retailers will tellvendors upfront when quoting on a programthat they want it to include promos, point-of-sale material, signs, counter cards and anysupport a brand would have.”

Retailers can fund marketing themselves,share costs with suppliers or include pricingin the program. “Private-label is mainly mar-keted in the store, so there are challenges,”Smithfield’s Gloyne says. “However, if delisutilize the same brands in the center of thestore, they can capture umbrella marketing.”

Suppliers believe most retailers can createa successful in-store marketing campaignaround their name brand. “It’s an extension ofwhat they do as retailers. The promotionalstrategy should be the same as with a nationalbrand,” according to Hatfield’s Ruth. “Storescan do brand comparisons as a way to getpeople to try private-label alternatives.”

Other challenges exist. “For smaller retail-ers, it can be difficult getting manufacturers topack enough product to make it worth theirwhile,” he continues. “To produce private-label products, suppliers need to change theirproduction lines. If a store or chain doesn’thave high enough counts or volume, this typeof program isn’t feasible.”

By the same token, many branded manu-facturers have a vested interest in their ownbrands, so many are not big proponents ofprivate-label programs, which is not the caseat Tyson Foods, Gerle says.

There also are obstacles to ensuring cus-tomer confidence in private-label products.“Retailers have done a great job in creatingspecs for these items,” Gloyne says. “Nowthey’re at amore acceptable quality level.” DB

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JUNE/JULY 2009 DELI BUSINESS 75

Created before there were ovens, flat-breads require only an open heat source— a cooking utensil placed over fire or,in earliest times, just a bunch of reallyhot rocks. Asia gave us naan and

papadams, the Americas tortillas and arepas,the Middle East pita and lavosh. Well-knownitems such as crepes, pancakes and matzohare also flatbreads.

“Middle Eastern food is still very trendybecause it’s healthful. You can use hummuswith a flatbread cracker and it’s very health-ful. But flatbreads are beyond a trend at thispoint. Most people are aware of them as ahealthful bread alternative,” says Jenni Bon-signore, marketing manager for ValleyLahvosh Baking Company, Fresno, CA.

Flatbreads are also an economical alter-native for austere times. “Flatbreads ‘eat big’

The World Is FlatFlatbreads are more versatile than ever

BY BOB JOHNSON

P R O C U R E M E N T S T R A T E G I E S

when made properly and are a value as a fill-ing alternative to sliced bread. As specialtybread, they go well with higher-value delimeats, cheese and salads. Deli managers giveshoppers a better value at the deli servicecounter and in grab-and-go centers makingflatbread offerings a smart item, right for theeconomic times,” according to Bob Pallotta,president of Chicago, IL-based Tonic, a pub-lic relations firm that represents Flatout Flat-breads, Saline, MI.

The United States is a land of snackers,forever searching for something to satisfy theircravings. Many of today’s health-consciousconsumers are ready to put aside salty potatochips with sour cream dips and try flatbreadchips dipped in hummus or bruschetta. Tech-nically, bruschetta is toasted bread but the

term has come to refer to the fresh tomatomixture that often tops bruschetta.

UseYour ImaginationFlatbreads are now so popular it’s worth

devoting more thought to their culinary andmarketing possibilities. They can bring a newtwist to a long list of familiar favorites includ-ing chips for dips, sandwiches and pizzas.“The category has grown in the last seven oreight years to the point that it means some-thing to call it a category,” notes DemetriosHaralambatos, executive chef at KontosFoods Inc., Patterson, NJ.

For example, in just a few years, paninihave gone from being a novelty item to beinga regular menu item in delis across the coun-try. “Panini-grilled flatbread sandwiches are

Pita with hummus and falafel

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76 DELI BUSINESS JUNE/JULY 2009

increasingly showing up in deli service coun-ters. New oval shaped flatbreads will makethis application easier to prep, fold andserve,”Tonic’s Pallotta explains.

But the sandwich is just the beginning ofuses for these versatile breads. They can beused as wraps or the base of a salad. Whilestill fresh and soft, they can be filled, rolledand sliced. They can be cut into soft chips ortoasted or fried for crisp chips, both of whichcan be used with any number of dips.

“You can use your imagination on how touse it,” advises Nassem Ziyad, general man-ager of Cicero, IL-based Ziyad BrothersImporting, which offers a pita bread andhummus snack pack.

Kontos has come out with a combinationproduct that includes pita and bruschetta.“Bruschetta is growing in upscale areas. Popthe pita in a toaster or oven, top it with thebruschetta, and you now have an appetizer,”says Haralambatos.

Suppliers have many interesting usageideas to share with retailers. “Manufacturersare helping with recipes that support a vastrange of uses and give time-pressured chefsmore options. One example is a ‘peanut but-ter and jelly, granola and fruit’ flatbread partyplatter recipe that shows flatbreads candeliver the big taste, comfort and appeal to

vegetarians and kids,”Pallotta says.Valley Lahvosh has tapped into the snack

market with its cinnamon flavored lahvoshthat offers a touch of sweetness. Two yearsago the bakery started making sweetheartsnacks, a heart-shaped flatbread cracker thatcomes in original and cinnamon flavors.

“We’ve even seen our flatbreads sold to arestaurant chain that takes them, cuts theminto strips, seasons them with olive oil andspices, heats them and serves them alongside some delicious spreads,” says KarenToufayan, senior vice president of sales forToufayan Bakeries, Inc., Ridgefield, NJ.

Consumers who try prepared flatbreaditems in the deli department may have aninterest in recreating them at home whentime permits. “When deli managers are ableto pull flatbreads off retail shelves and incor-porate them into their deli menus, it’s a dou-ble winner — driving deli sales and retailshopping basket sales. They showcase flat-breads’ taste and help shoppers understandall the uses flatbreads have,”Pallotta adds.

Pizza My HeartFlatbread pizza is poised to be a big seller

because it hits a lot of buttons. It’s healthful,especially when made with vegetable top-pings. It’s convenient, even more than take-

P R O C U R E M E N T S T R A T E G I E S

FLATBREAD PIZZA IS

POISED TO BE A BIG

SELLER BECAUSE IT HITS

A LOT OF BUTTONS. IT’S

HEALTHFUL… IT’S

CONVENIENT… IT CAN BE

EATEN AT THE DELI,TAKEN HOME OR SOLD

AS COMPONENTS.

and-bake or frozen pizza. It can be eaten atthe deli, taken home and quickly baked orsold as components to assemble at home.

Lahvosh is a thin, stiff flatbread that hasbecome popular because of its versatility. Itcan be used in place of crackers or as a breadalternative. And it makes a delicious pizzacrust. “It’s a great alternative thin pizza crust.It absorbs moisture, and you can throw it inthe oven for just four minutes because it’salready baked,” according to Bonsignore ofLahvosh Bakery.

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Flatbread pizza crusts are available in avariety of sizes and shapes. “Savvy manufac-turers are offering new shapes from rectan-gle sizes to make ‘four by four pizzas’ tounique plank pizza flatbreads that are five by15 inches. Topping pizza with fresh greens isa simple way to combine taste, health andseasonal options,” relates Tonic’s Pallotta.

Almost any kind of flatbread will serve asa pizza crust. “Naan can be used to makepizzas in store. The consumer can take ithome, pop it in a toaster oven and have a 7-or 8-inch pizza,” suggests Kontos’ Haralam-batos.

It’s A Small WorldFew foods better exemplify what a small

world it has become like a Mexican inspiredpizza baked on a chipotle-flavored flatbread.

Flatbread products made in the local tra-ditions of every area of the Middle East andCentral Asia are now readily available. Andexciting new flatbread products from evenmore regions are being made available. Thekey to sorting out this expanding assortmentis in knowing who your customers are. “Theline you should carry depends on the demo-graphics of the store. If you try to put four orfive Indian flatbreads in a store that doesn’thave Indians, Pakistanis or Bangladeshis, theywon’t sell,”advises Haralambatos.

Kontos is introducing a new line of flat-breads called Panplano, intended to serveHispanic consumers and particularly Mexi-can-Americans. The line includes five differ-ent flavor profiles: Pico De Gallo, Chipotle,Sweet Onion, Jalapeño and Gordita. “Wepride ourselves in being an innovator. Wehave expanded the South Central Asian flat-breads and expanded the Mediterranean col-lection,”Haralambatos says.

Tap Into HealthAs new flatbread products come on line,

their No. 1 selling point is that they offerhealthful alternatives, so the new flavors thatlast will probably be the most healthful.

“Adding new flavors just as flavors is notenough,” cautions Pallotta. “The new flat-breads are those with healthful ingredientssuch as whole grains and multigrain includingflax. Omega-3 is an on-trend clue for health-conscious shoppers. Ancient grains, such askamut, millet and spelt, are the next step for-ward that will enhance flatbread as a health-ful alternative. A growing awareness ofhealth and diet issues requires deli to offermore options and solutions that shopperscan pick up on quickly. Flatbreads fit well forexample with diets such as the Mediter-ranean Diet, Weight Watchers or the BestLife Diet.

“Manufacturers help delis when they

point out that their flatbreads fit these dietsand give recipes that work with them, suchas a healthful chicken kabob flatbread sand-wich made with hummus as a base in placeof mayo. This is a smart way to help. Dietershave a reason to return to delis for big tasteand no guilt,”he continues.

Many producers see multigrain or all-nat-ural flatbread products as the wave of thefuture. “Multigrain is becoming increasinglypopular. It’s somewhat like the trend of thelow-carb diet, but I feel it’s here to stay,” says

JUNE/JULY 2009 DELI BUSINESS 77

Toufayan. The wheat products, includingwraps and pitas, are outselling the whiteflour products two to one. Based on thistrend, Toufayan Bakeries now offers a multi-grain lavosh flatbread.

“A multigrain is probably your top mover.People are very health conscious thesedays,” notes Ziyad of Ziyad Brothers. Hebelieves flatbreads that include whole wheat,cracked wheat and other grains are likely toappeal to the growing number of health-con-scious consumers. DB

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P R O C U R E M E N T S T R A T E G I E S

The worst economy since the GreatDepression, ongoing wars in Iraq andAfghanistan, the continuing threat ofterrorism, and an outbreak of the dread-ed swine flu. It’s no wonder Americans

are gravitating toward food that harkensback to happier times. In recent years, mak-ers of so-called comfort foods have reportedsales surges as consumers turn to foods thatmake them feel safe and bring back memo-ries of childhood and family gatherings.

While comfort foods run the gamut frommeat loaf and hamburgers to ice cream andapple pie, no category embodies comfortfoods like salads and sides. Mashed potatoes,macaroni and cheese, potato salad, macaronisalad, coleslaw – all evoke the kind of warmfuzzies people need during trying times. Notsurprisingly, salad and sides manufacturersare reporting strong interest in old favorites.

“While consumers are interested in tryingnew, exotic flavors, most of the volume andthe greatest percentage of households arebuying the basic items that have been around

Craving ComfortDuring difficult times, consumers gravitatetoward favorite salads and sides – often with a new twist

BY JULIE COOK RAMIREZ

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for a long time – mashed potatoes, mac ’ncheese, deli salads,” says David Lakey, vicepresident of marketing for Reser’s FineFoods, based in Beaverton, OR. “We thinkit’s related to comfort foods, cocooning in anuncertain world, having familiar foods toserve their family.”

John Becker, senior director of sales forMedina, OH-based Sandridge Food Corpo-ration, reports strong interest in productsthat fall into the category of “what you getat Grandma’s house.” That trend is particu-larly strong in the Midwest, he says, becauseso many blue-collar workers have beenstung by layoffs. Feeling less adventurousthese days, they’re looking to spend whatev-er available income they have on productsthey know and love, rather than risking theirdiscretionary income on a new product thatthey may not like and that is apt to costthem considerably more.

Mrs. Gerry’s Kitchen, Albert Lea, MN,reports strong sales of commodity salads,including coleslaw, potato salad, and maca-

roni salad, according to Brenda Donahe,director of sales and marketing. She alsocites strong sales of one of Mrs. Gerry’snewest products, which is actually a com-fort food favorite — fresh mashed potatoes.Donahe credits its introduction with helping“even out” an otherwise heavily seasonalcategory, particularly in the North and Mid-west where the category tends to spike dur-ing the summer picnic months. A belovedcomfort food, mashed potatoes have moreyear-round appeal.

It may be a matter of convincing retailersit’s in their best interest to stop focusing thebulk of their efforts on promoting the latestand greatest. “Retailers are finding some oftheir ventures away from traditional prod-ucts have not panned out,” says Lakey.“They’ve strayed too far from things con-sumers understand and want to eat athome. In the future, they need to de-empha-size promoting exotic, unfamiliar flavors andre-emphasize traditional, high-volume prod-ucts that have wide appeal.”

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80 DELI BUSINESS JUNE/JULY 2009

Mixing Things UpAt the same time, Reser’s Lakey con-

cedes there may be room for both traditionalproducts and new flavors to coexist peace-fully in the category. A number of manufac-turers have also seen this trend, with severalreporting success with a “new spin on oldfavorites”approach to product development.

ASK Foods, Palmyra, PA, for example,has garnered positive consumer responsewith its Buffalo Blue Cheese Potato SaladandYukon Gold Mashed Potatoes, accordingto CEO Wendy DiMatteo.

Sandridge has put a new spin on chickensalad, rolling out Dijon Chicken Salad, GrilledChicken with Fennel Salad, and CountryClub Chicken Salad, which is made withranch dressing. The company has also addeda new twist to its pasta salads, adding ingre-dients such as sundried tomatoes. Beckercalls such innovations “natural progressionsto a base line of business.”

Hans Kissle, Haverhill, MA, has takenthis approach to an extreme, rolling out abevy of products that take an old favoriteand turn it on its ear, says Craig Drinkwater,director of sales. Examples include RoastedSweet Potato Salad, German Potato Saladwith Bacon, Blue Cheese Potato Salad, Buf-falo Chicken Salad, Chicken Salad withCranberries and Nuts, Santa Fe PepperSlaw, Asian Seafood Medley, Creole Rice &Beans, and Carrot & Raisin Salad.

“Bold flavors and colors are important tokeep the category growing,” explains Drink-water. “The staples of potato, mac, and cole-slaw will still be in the forefront, but it’s defi-nitely the different, unique, and bold flavorsthat people are going after.”

So far, the country’s economic difficultieshave not tolled the death knell for upscalesalads and sides, to DiMatteo’s great relief.“We were concerned about some of ourhigher-end products falling by the wayside

with the issues in the economy, but thathasn’t really been the case. Some of the veryhigh end may have been hurt a little, but westill see strong support in terms of some ofthe more complex salads that are a littlemore expensive.”

Making It EasyIn an effort to help retailers give struggling

consumers lower-priced options, Sandridgereduced some of its pack sizes, bringing the3-pound family-size packs down to a 2-pound size and 1-pound packs down to eightounces in certain instances. The results havefar outpaced expectations.

“We did it originally as a defensive strate-gy to say, ‘Let’s see if we can get the ringdown to make it a little more palatable,’” saysBecker. “At first, we were happy if we soldjust the same number of units, but we’veactually overtaken the total pound. Not onlyhave we replaced the units, but we’ve actu-ally also sold more total pounds to the cus-tomers that made the transition.”

A number of manufacturers are reportinggrowth at both ends of the spectrum — inlarger packs and smaller packs — while thosein the middle may be losing ground. In termsof side dishes, large sizes are growing in pop-ularity, particularly in club stores, accordingto Lakey. Meanwhile, he says, retailers areincreasingly asking for smaller sides.

Consumer purchasing decisions are oftenbased on the size of their household. “Small-er households want the smaller sizes, evenmore so today because they don’t want towaste food,” Lakey continues. “On the otherhand, with an increase in the number ofmeals being eaten at home, there’s even bet-ter value to be found in large sizes among thelarger households.”

Seeking to help budget-conscious con-sumers while building on their own brandequity, a growing number of retailers are

expanding their private-label offerings.Increasingly, that involves custom formula-tions that serve to distinguish a particularchain from its competitors.

“A lot of our customers want to haveproprietary recipes or at least regionally pro-prietary to their specific trading area,” saysDiMatteo. “They want these products toserve as a point of differentiation, wherepeople walk into their store for a specificitem they perceive to be available only at thatstore. It’s a smart strategy.” Fifty to 60 per-cent of ASK customers use their ownrecipes, filling the rest of their private-labelline with existing ASK products under theirstore brand label.

Retailers seeking the lowest-cost optionsare willing to use existing formulas, notesLakey. He sees a definite advantage to thisapproach in that these formulas have beentested in multiple plants and are already con-sumed by thousands, if not millions, of con-sumers. A custom formulation, on the otherhand, has not yet proven itself and may failto garner favor among consumers, resultingin a greater failure rate and increased costs.

Whether it’s private label or branded,DiMatteo says consumers like the conve-nience of pre-packaged salads and sidesbecause they can easily be taken to a picnic orparty. “Table-ready containers” have becomea focus of companies such as ASK that wishto make it easy for consumers to make theirproducts part of their special occasion.

At the same time, Mrs. Gerry’s Donahecites a “definite increase” in bulk items, asretailers resume their focus on the full-ser-vice deli case. Admittedly, she concedes,some consumers will always remain commit-ted to grab-and-go pre-packed productsbecause of the extended shelf life.

Many consumers perceive items in thedeli case to be fresher than pre-packagedproducts, according to DiMatteo. Her cus-tomers tend to strike a balance between pre-packed and deli case, often choosing to mer-chandise items in the case if they display bet-ter that way. Some retailers merchandise thesame items in both locations to maximizetheir business.

The trend toward pre-pack or full-serviceis cyclical, relates Becker. In terms of his cus-tomer base, those trending toward full-ser-vice are placing their more upscale offeringsin the case and keeping the value-pricedcommodity offerings in the grab-and-go sec-tion. The rationale is simple. “Retailers haveto sell an awful lot of potato salad at $1.99 apound to make any money. What they’resaying is, ‘If I have a really nice coleslaw orupscale pasta I can sell for $6, $7 or $8 apound, I’ll take those customers coming tomy bulk case all day long.’” DB

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C H E E S E C O R N E R

Cheese consumption continues to edgeupward — it hit 32.7 pounds per capitain 2007 — which means more activityin stores and at the deli counter.

Industry estimates reported by theInternational Dairy Foods Association(IDFA), Washington, DC, claim more than300 varieties of cheese are now available toAmerican consumers.

While access to imports continues toslide, falling by 16 percent to an estimated165,000 tons in 2008, cheese productionwithin the United States is on the rise,according to the Dairy: World Markets andTrade report issued in December 2008 by theU.S. Department of Agriculture (USDA).

For the deli department, this translates tocontinuing competition for space, especiallyas American-made products look to garnerreal estate previously held by imports. Soeven though consumers are shopping with awary eye on their wallets, they are still look-ing to the deli to guide them through thisburgeoning selection of cheeses.

Promo, Then Promo Some MoreCost-conscious cheese merchandising

can be a win for the brand, the consumerand the department.

A major part of that is the in-store pro-motion, be it a sampling program, a display,or a price break.

“In times like this, it’s important to con-tinue promotions,” says Michael Evan Blum,sales and marketing manager, BeemsterCheese USA, Jersey City, NJ. “Stores thatstop promotions will be the ones hit.”

Blum says retailers should take advantageof what is available to them for displays, suchas the big wheels of Beemster’s Dutchcheese. If the thought of building a displaywith a real wheel isn’t feasible, the companyprovides prop wheels that can be merchan-dised with wrapped wedges.

According to Gabriel Robles, president

Merchandise Like You Mean ItWhen times get tough, cheese departmentsturn to creative merchandising solutions

BY JOANNE FRIEDRICK

82 DELI BUSINESS JUNE/JULY 2009

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C H E E S E C O R N E R

and CEO, Queso Campesino, based in Den-ver, CO, “In this economy, people are sensi-tive to price and portion size. You have to getmore creative.”

Sampling is one of the easiest ways tointroduce consumers to a cheese, but if thepromotion isn’t handled correctly, it can bemoney wasted. “People should offer samplesto those who are trying to decide whichcheese to buy,” says Robles. “You shouldn’tjust be feeding people who are hungry.”

“The name of the game is getting theconsumer to buy,” notes Fred Chesman,vice president cheese department, AtalantaCorp., Elizabeth, NJ. He believes samplingworks but there is a cost associated with it.An active sampling program requires thestore or the supplier to provide people tohandle the demos. Chesman says Atalantawill send producers to do in-store events,which have the benefit of both sampling andeducation. “People like to see the peoplewho make the cheese.”

That approach has worked for HeatherFiscalini, who with her husband John oper-ates Fiscalini Farms in Modesto, CA. “Wedo a lot of in-store demos in California andelsewhere. Everyone wants to hear thestory and hear from the cheesemaker.” Fis-

calini prefers to do the demos herself ratherthan leave it to the store or hire someone todo them. “We feel we’re the best marketersof our cheese,” she explains.

“This is the time for brand awareness,”relates Deanna Finegan, marketing managerat Norseland Inc., Stamford, CT. During arecession, she says, some consumers aban-

don brands and turn to private label, so it’simportant to stress what a brand stands for,such as quality, consistency and better taste.

Norseland, which handles brands such asJarlsberg, Jarlsberg Lite, Boursin and others,has six themed promotions planned for thisyear. A grilling promotion, scheduled for thesummer months, includes recipes, $1 off

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coupons, shelf talkers and materials to helpretailers build mass displays. Displays tradi-tionally help create more turns in a productline, according to Finegan.

Merchandising a product as an awardwinner builds recognition for the brand andcachet for retailer selling it, advises Fiscalini,whose Cheddar is an award winner. She usesthe World Cheese and American CheeseSociety (ACS) award-winning status on sig-nage and encourages retailers to create spe-cial sections for blue-ribbon cheeses.

Getting products into the minds of con-sumers via specialty ads or news itemsplaced in the newspaper food section are alsoeffective marketing tools, says Chesman,because they drive people into the stores.Once there, retailers have the opportunity tobuild additional sales through price reduc-tions and other events.

Establish A Point Of DifferentiationDeli departments should have the advan-

tage of offering more variety than dairydepartments, says Matt Curl, sales managerfor Atlanta Foods International, Atlanta,GA. He encourages retailers, especially intough times, to present a clean, full case withdepth of product.

If a retailer needs to watch the bottom

line, he advises having shrink procedures inplace before the product gets to expirationand continuing to review the variety in thecheese case. “Delis need to maintain theirpoint of differentiation, which is variety.”

Within that case, show off specialtycheeses with point-of-sale signage that gives

C H E E S E C O R N E R

SHOW OFF SPECIALTY

CHEESES WITH POINT-OF-SALE SIGNAGE THAT GIVES

THE DESCRIPTION OF THE

CHEESE, ITS COUNTRY OF

ORIGIN, MILK TYPE AND

WINE PAIRING. TRADITION-ALLY, ITEMS THAT ARE

SHOWCASED SELL

THE BEST.

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wedges to hit a price point attractive to con-sumers. “The biggest thing I’ve seen is manu-facturers offering smaller cut sizes,” saysCurl. In an attempt to hit a less-than-$10price point, manufacturers are offeringsmaller, pre-cut pieces.

For stores that cut cheese themselves,Curl suggests selling sample sizes and mer-chandising them in a basket. Consumers canpick a few they want to try and come backat another time to purchase a larger piece of

a cheese they enjoyed.

Don’t Be Afraid To AskNeed a little help meeting that sales

quota this week? Chesman of Atalanta saysdon’t hesitate to ask importers or supplierswhat they’ve got too much of and if you canhave it at a price where it can work for bothof you.

“What a retailer has to do is bombardsuppliers with questions,” he advise, adding,

the description of the cheese, its country oforigin, milk type and wine pairing. Tradition-ally, he adds, items that are showcased sellthe best “and feature items make the depart-ment unique.”

Not every product needs, or should have,a sign, cautions Atlanta’s Curl. Rather, selectfeature products within designated cate-gories such as farmstead cheeses, ACS win-ners, imports and local treasures.

Make It Easy To UseQueso Campesino’s Robles believes both

retailers and manufacturers should look forways to move products through the channel.One way to do that is to educate consumerson what the product is, how to use it andeven what it is similar to.

Hispanic cheeses, while naturally lendingthemselves to Latin and Mexican dishes, canalso be substitutes for other commonly usedingredients, says Robles. Crema Mexicana,for example, is a good substitute for sourcream and Requeson is the Mexican equiva-lent of Ricotta. Queso Campesino is puttingcomparisons on the labels and recipes on itsWebsite and in stores to encourage the useof the Hispanic products.

Booklets, recipes and anything that helpsexplain how to use the cheese is gettingattention from retailers these days. Finegansays Norseland has developed a wine andcheese-pairing guide for six brands. Theguide offers upscale pairings using items thatcan be found in the deli, such as bread, nutsand specialty meats. “It’s a way to incorpo-rate different specialty brands together.”

Several industry leaders point to the prac-tice of merchandising smaller, pre-cut

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Just as the cheese category has evolved with myriadflavors, styles and consistencies, so too has that ubiq-uitous accompaniment — the cracker.

Although saltines and round, buttery crackers are stilladequate carriers for many foods, most deli departmentmanagers are aiming to differentiate their sections fromthe standard grocery aisle fare with crackers in variousshapes, sizes, textures and colors, as well as with subtleflavors that complement, rather than compete with, thecheese.

“Crackers are a natural fit” in the deli, says DeannaFinegan, marketing manager for Norseland Inc., Stamford,CT. She suggests basic water crackers as a “safe choice” toserve with the variety of Norwegian, Spanish and othercheeses Norseland handles.

Simply put, crackers make it easier for consumers toenjoy the cheeses they purchase, notes Michael Thompson,president of Venus Wafers, Hingham, MA. “Eighty percentof people will probably eat their cheese with a cracker,” hestates.

The differing textures of stoned wheat, water crackersand flatbreads can play off the boldness or mildness of acheese, as well as its consistency, he notes. “With a softercheese, for example, you want a cracker with a creamiermouth feel.”

Denver, CO-based 34 Degrees has developed Australian-inspired crispbreads, as opposed to crackers, that are cre-

All They’re Cracked Up To Be BY JOANNE FRIEDRICK

ated to serve multiple functions beyond pairing with cheese, accordingto founder Craig Lieberman. “The way we pitch it, the crackers are lightand thin, allowing more room for the cheese” being consumed.

“The packaging, the box and the copy are all related to the deli andthe cheese case setting,” he explains. The boxes can be merchandisedhorizontally or vertically, depending on whether the deli departmentuses baskets or the case top and shelves for displays. Shippers, such asthe one 34 Degrees is launching for the holidays, can also assist deliscross-merchandise crackers with cheese without giving up valuablecounter space.

Serving suggestion cards for each of the four flavors help customersand deli personnel pair the crackers with various cheeses and accompa-niments, adds Lieberman. A bold Blue may be the showcase with thenatural flavor, while herbed goat cheese gets a lift from a pairing with arosemary-flavored variety.

Lieberman says cheesemakers have suggested their own best selec-tions among the crispbreads. “We try to partner with American artisanalcheesemakers. It’s an informal partnership: We like their product andthey like ours.”

Venus Wafers partners with cheese companies for in-store promo-tions that highlight deli cheeses and specialty crackers, notes Thomp-son. He believes having crackers unique to the deli is important to buildtraffic in the department and, he notes, the growth of the MediterraneanDiet and the low-fat lifestyle have helped flatbreads flourish in the deliover the past eight years.

“I always felt it was easy to get crackers in the deli. But sometimesthe crackers get co-opted by the grocery department,” says Thompson.

“Suppliers will take the initiative to help yousell their products.”

Blum says many of Beemster’s promo-tions are designed to entice the consumerand help out the retailer, such as the buy twowheels, get a case of shredded cheese forfree. The promo helps promote the newcheese in cups, he says, and gives retailersthe opportunity to try a new product withlittle risk.

“Now is the time to try new items if theyfit with your profile,” adds Blum. “Come tothe supplier with an idea and work together.We all have to survive the economy.” DB

Within the deli, “You’re talking aboutan experience, not just filling thepantry.” By providing a host of prod-ucts that work together, “You’re tryingto capture people with an entertain-ment occasion in mind.”

All types of accompaniments arecritical to the successful merchandisingof cheese, says Matt Curl, sales man-ager for Atlanta Foods International,Atlanta, GA. By offering customers theopportunity to buy crackers, as well asallied items such as fig spread andMarcona almonds with their Brie, thedeli department is going from a singlecash-register ring to multiple sales, hepoints out. DB

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Putting fresh goat cheeses on your cus-tomer’s summertime dinner table canbe as straightforward as slathering but-ter on fresh corn on the cob. In warmweather, most shoppers crave easy

ideas for no-cook meals and appetizingrecipes for outdoor dining. Fresh goatcheeses can brighten both hot and coldmeals as well as add simple elegance to sum-mer grilling and entertaining.

In the past several years, American retail-ers have seen huge increases in fresh goatcheese sales, thanks in part to their availabili-ty in a growing range of restaurant menuitems. “Chefs led the way in their interest inthis multipurpose cheese that allows creativi-ty,” says Dominique Penicaud, general man-ager of Couturier North America, based inWarwick, RI.

Lindsay Gregory, marketing manager forWoolwich Dairy, based in Orangeville, ON,Canada, believes consumers are becomingeducated through travel and realize they canrecreate the dishes they encounter on theirtrips when the get home.

Showing customers how to bring thesedishes to their own table can spike interestand change buying habits. Retailers shouldstart to see sales bumps if they provide recipecards for trendy items, such goat cheesepizza or panini, and if they demo easy-to-make appetizers.

Arnaud Solandt, general manager forMontchevré, based in Rolling Hills Estates,CA, recommends opening packages andcustom seasoning the cheeses for in-storetastings. “Cover goat logs with preparedtapenade and you create a simple summerappetizer and a perfect cross-promotion.”

Consumer acceptance of fresh goatcheeses has brought dozens of varieties tomarket. Montchevré offers a wide range ofproducts, including fresh logs, Chabis andCrottin, Feta and crumbles, to appeal to awide range of consumers. “Consumers arealways looking for direction,” notes Solandt,“so we make a variety of cheeses with goat’smilk. The crumbled goat is great for salads,

Fresh For SummerGoat cheese goes casual for warm weather dining

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but goat Feta applies for salads as well.”Coach Farm, based in Pine Plains, NY,

introduced goat milk Ricotta this past year.“Its sweet, grassy flavor adds freshness andinterest to lasagnas and other baked pastas,”relates Nancy Austin, director of marketing.“Our award-winning buttons are alsorefreshing for summer; their lemony tastegoes great with the herb coating, especiallythe dill flavor.”

Allowing customers to taste these items,either in simple preparations or on their own,will remove much of the mystery aroundthem, making them less intimidating to anincreasing number of shoppers.

Meyenberg Goat Milk Products, based inTurlock, CA, has introduced goat butter andgoat cream cheese, two newer goat milkproducts that are quite trendy and chic butthat require some customer education togenerate sales. “The chefs are going crazybut consumers need to be taught how to usethese products in everyday recipes,” explainsTracy Darrimon, director of marketing.

For example, the tangy goat butter canbe made into a compound butter — just addherbs and seasonings, freeze and then slicefor a no-cook sauce to accompany grilleditems for quick summer eating. “Because it

has a lower melting point than traditionalcow’s milk butter, it melts easier, plus it has ahigher perceived value than regular butter,”says Darrimon.

Goat cream cheese works well in break-fast applications and easy summer appetizersand can be directly substituted for traditionalcream cheese. It presents an especially effec-tive opportunity for passive in-store sam-pling; customers will be surprised by thefresh yet familiar tangy taste and are quitelikely to pick up a container.

Creative Merchandising TechniquesMerchandising creatively to promote a

wide variety of uses can increase sales.Woolwich’s Gregory suggests giving con-sumers quick little ideas — such as pickingup some flatbreads to dip in or spread withfresh goat cheese.

Cross-merchandising out of the depart-ment can be quite effective. “We suggestmerchandising the cheeses next to the saladvegetables in the produce department,” saysSolandt. Other simple cross-promotionshighlighting artisan breads, crackers or freshsummer berries or figs can also boost sales.“The retailer can ask the distributors for pro-motional pricing and they should chip rightin,”he adds.

Jacquelyn Buchanan, director of culinarydevelopment for Laura Chenel’s Chevre,

Inc., based in Santa Rosa, CA, is anotherproponent of cross-merchandising. “Summeris the time of year when tomatoes are intheir prime. A display of balsamic vinegar,extra virgin olive oil, [fresh goat] logs, freshbasil, tomatoes, and loaves of artisan breadwould create a simple suggestion.”

Couturier’s Penicaud suggests placingfresh goat cheese in the meat department topromote cooking with goat cheese in grillingseason. “Goat cheese brings more flavor tobland chicken than most regular cheeses.Offer a recipe card suggesting a chickenbreast stuffed with goat cheese and garliccooked outside on the grill.” In the producedepartment, place goat cheeses next to pop-ular grilling vegetables — zucchini, peppers,eggplant — to encourage a Mediterranean-themed meal.

Don’t forget to emphasize the visualappeal of goat cheese. Its vibrant white colorand round shape can be a great foil for thesummer vegetable color spectrum. “Its dis-tinct individual slices stay round because itdoesn’t melt like standard cheeses,” notesPenicaud. Provide recipe cards with colorfulphotographs of pizzas and salads and bringthem to life by sampling rounds of warmedgoat cheese.

For the ultimate riot of color, CécileDelannes, ambassadrice of The FrenchCheese Club, based in College Park, MD,

C H E E S E C O R N E R

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C H E E S E C O R N E R

suggests packaging fresh goat cheese roundsdecorated “the French way” with edibleflowers. Even though fresh flowers are quiteperishable, their whimsical summery feel cre-ates an original and impactful appeal.

Affordable luxury is an exotic angle formerchandising fresh goat cheese duringtough economic times. Delannes suggestsinviting customers on a “food adventure” inthese days when consumers are limiting trav-el and watching their pennies. “It is easy,” shesays, “to create a Provençal environmentwith a Provençal tablecloth and a bottle of

rosé wine.” Just add fresh goat cheese but-tons and a baguette and customers feel as ifthey’re on a picnic in the South of France.Suggesting fresh goat cheese is an affordabletreat and cross-merchandising it with wines,nuts, jams, and honeys gives consumers thepermission they need to indulge.

Goat cheese also represents a counter-point to luxury — the healthful indulgence.Much of goat cheese’s increasing popularitycan be attributed to its healthful nature. Notonly is goat’s milk lower in fat and higher incalcium and many vitamins than cow’s milk,but it is also easier to digest due to its smallerfat particles. “This is a great health advan-tage for those who are lactose intolerant,”

states Penicaud. “People who regularly eatspecialty cheeses don’t worry much aboutthe fat content, but the fact that it is easierto digest allows new customers to enjoy it.”

Many domestic goat cheeses come fromsmall producers who pay attention to howthe goats are raised. Austin calls the CoachFarm goats “a happy herd” whose milk hasno additives, hormones, or antibiotics.

Retailers should highlight quality farm-stead cheeses and educate consumers about

their fine points. Shelf talkers and cut sheetscan help point up the health benefits of freshgoat cheeses in comparison to other summerbest sellers.

Meyenberg’s Darrimon teaches con-sumers about the health benefits of goat milkproducts primarily through printed brochuresand packaging, but she also uses the Internetto raise awareness. “I post to blogs onhealth-oriented Websites to answer ques-tions about the benefits of fresh goat’s milk

SUGGESTING FRESH

GOAT CHEESE IS AN

AFFORDABLE TREAT AND

CROSS-MERCHANDISING IT

WITH WINES, NUTS, JAMS,AND HONEYS GIVES

CONSUMERS THE

PERMISSION THEY NEED

TO INDULGE.

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90 DELI BUSINESS JUNE/JULY 2009

and the cheeses made from them,” shenotes. Retailers might want to consider blog-ging about all types of promotions and issuesof interest to their current and potential cus-tomers on their own company Websites, andthey can cross-promote the Website in storewith signage and sign-up cards.

Beverage pairings are another populartrend that retailers can promote. Solandt ofMontchevré recommends pairing amberbeers with fresh goat cheese for summer,

while mentioning that wine and cheese is theclassic way to go. “Goat cheese goes withevery wine depending on the season,” hesays. Feature light, bright summer wines andclean summer beers on goat cheese displaysto emphasize summer snacking.

Helping customers keep track of theirpairing preferences can keep them comingback. “Get the customer more involved,”advises Darrimon. “Give them an index card,have them record their taste preferences and

keep them in a file behind the counter.” Orcreate a computerized customer profile ifyou have the capability. Customers appreci-ate that you can see at a glance they lovedthe Frog’s Leap Sauvignon Blanc withCoupole from Vermont Butter & Cheese.

In any customer interaction, the retailer’senthusiasm and passion for a product willultimately increase sales of that product.Encourage your staff and your customers toshare their ideas for easy and elegant sum-mer appetizer ideas, refreshing salads, deli-cious grilling recipes, and favorite beveragepairings — and watch the demand for freshgoat cheese soar. DB

C H E E S E C O R N E R

BEVERAGE PAIRINGS ARE

ANOTHER POPULAR TREND

THAT RETAILERS

CAN PROMOTE. FEATURE

LIGHT, BRIGHT SUMMER

WINES AND CLEAN

SUMMER BEERS ON GOAT

CHEESE DISPLAYS TO

EMPHASIZE SUMMER

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In recent years, consumers have shownincreasing interest in domestic regionalfoods. Armed with buzzwords such asslow food and eating local, they want tolearn about the land where the product is

created and the artisans who created it.“American cheeses have improved in

selection and quantity,” says Sid Cook, mas-ter cheesemaker and fourth-generationowner of LaValle, WI-based Carr ValleyCheese Co., which produces a multitude ofcheeses from cow’s milk and sheep’s milk.

Wisconsin is home to dozens of family-rundairy farms, many of which are artisanal farm-stead cheesemaking operations. During 2007,2.5 billion pounds of cheese were produced inthe state, according to the Wisconsin MilkMarketing Board (WMMB), Madison, WI.There has been remarkably steady growth involume since 1977, the first year WMMBkept annual statistics. That year, Wisconsinproduced 1.3 billion pounds of cheese.

“There’s so much emphasis today onbeing local – on buying from local farms orfarmers,” relates Marilyn Wilkinson,WMMB director of national product com-munications. “Once people become aware ofhow sophisticated Wisconsin cheeses are,they’re surprised when they find out thescope and the ethnicity.”

Many of the state’s cheesemakers learnedtheir craft from relatives who passed downEuropean techniques that are generationsold. BelGioioso Cheese Co. of Denmark, WI,a maker of classic Italian cheeses, is one ofthe state’s first artisanal cheesemaking opera-tions. “We came from Italy to make specialtycheese,” says Errico Auricchio, who startedBelGioioso 29 years ago. “There’s muchmore of an emphasis on specialty cheeses inWisconsin now.”

Increased competition — as well asinnate pride in a job well-done — has spurredthe cheesemakers to take whatever stepsnecessary to turn out internationally recog-nized cheeses. Part of making specialty

World Class Cheeses From The HeartlandWisconsin cheeses are taking on all comers and beating them handily

BY KRISTINE HANSEN

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92 DELI BUSINESS JUNE/JULY 2009

cheese is providing extra care and attentionduring the production cycle. That mightmean rubbing the cheese by hand, extensive-ly evaluating for a flavor profile and aging “tomake the flavors meld just right,” explainsBrad Nicholson, vice president of organiza-

tional development at Plymouth, WI-basedSartori Foods, which has been makingcheese in Wisconsin since 1939. “A lot of thetime, people are looking for something thatwill deliver distinctive flavor characteristics.”

At this year’s U.S. Championship Cheese

Contest in Madison, WI, Sartori ReserveSarVecchio Parmesan snagged the goldmedal, allowing it to claim the title of bestcheese in the United States. “A lot of Ameri-cans have not considered Parmesan as astand-alone dish, with a glass of wine and ona cheese plate, as Europeans do,” notesNicholson. “People are starting to realizethat the terroir in Wisconsin, especially forcheese producers, allows for the ability toproduce products that are unparalleled in theworld. Even in these difficult economictimes, they want a product that’s going todeliver.” Sartori also won a best-in-classaward for its Dolcina Gorgonzola.

The Case For Wisconsin CheeseThe rising cost of European cheese

imports has helped spur the demand for U.S.cheese. Consumers want an affordable prod-uct that delivers both taste and quality. Com-parable cheese varieties produced in Wiscon-sin cost less per pound than their Europeancounterparts, says WMMB’s Wilkinson.

Wisconsin cheesemakers have been col-lecting awards at not only the U.S. Champi-onship Cheese Contest but also the Ameri-can Cheese Society (ACS) competition,

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C H E E S E C O R N E R

comparing European cheeses to Americancheeses, and especially with artisan and spe-cialty cheeses, is we’re mostly family-ownedand pretty small here,” says Carr Valley’sCook. His company has won around 200

awards, including 18 at the 2008 ACS.Plants in Europe, especially in Germany, arelarger, he says, and that gives Wisconsincheesemakers a “green” angle in terms ofhaving a smaller footprint on the land. It has

World Dairy Expo and World CheeseAwards. The credibility that comes fromwinning so many awards is a positive whenintroducing unfamiliar cheeses to consumers.

“What a lot of people overlook, when

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94 DELI BUSINESS JUNE/JULY 2009

a lot to do “with the terroir we have here –the fresh water and lack of people, whencompared to Germany,” says Cook. “Whenit comes down to it, it’s about quality andwhat people like.”

Current economic conditions have notdimmed America’s ongoing love affair withspecialty cheese, and some think it has actu-ally helped growth as many consumers con-centrate on quality rather than quantity.“With everything going on with the econo-

my, there’s definitely been a renaissance incheese, an interest in cheese, in this countryover the past few years that helps all of us.When the specialty cheese category is grow-ing, it’s to all of our benefit – domestic andinternational,” according to Kirsten Jaeckle,marketing manager for Roth Käse USA inMonroe, WI. The company has won morethan 100 awards for its cheeses, whichinclude Moody Blue, Petite Swiss and Roth’sPrivate Reserve.

Joe Widmer, master cheesemaker andthird-generation owner of Widmer’s CheeseCellars in Theresa, WI, believes Wisconsincheeses are positioned to fill the desires ofconsumers who are no longer willing to paythe prices imported cheeses demand. “I’vebeen hearing from a lot of retailers that withthe higher prices [of European cheeses],they’re seeing more sales of domestic cheeses,because Wisconsin’s coming out with moreand more domestic [versions of] imports,”says Widmer.

Cheddar may be the type of Wisconsincheese that springs most readily to the mindsof consumers, but it’s not the most widelyproduced type of Wisconsin cheese. In 2007,according to WMMB, Cheddar represented26 percent of the state’s cheese production,while Mozzarella represented 35 percent.The largest third group, “other Italian,” repre-sented 13 percent.

BelGioioso’s reach goes beyond Moz-zarella. Burrata is an Italian-style cheese, silkyon the outside and creamy on the inside, verydelicate and not at all widespread. BelGioioso

is one of only a few American companiesproducing it. BelGioioso Burrata won abronze award at the 2008 World CheeseAwards. “People can’t believe some of thebest Mozzarellas and Gorgonzolas comefrom Wisconsin,” says Auricchio. “We’re defi-nitely headed in the right direction. More andmore, you will see an appreciation for cheesesmade in the United States. There’s a renewedappreciation for cheese made in Wisconsin.”

WMMB is doing its part to promote thestate’s cheeses. Last year it launched a suc-cessful marketing “toolbox” for retailer, whichincludes recipe brochures and signage for pro-moting Wisconsin cheeses. Retailers justattach their logo to personalize WMMB’smaterials. WMMB can also arrange forcheesemakers to visit stores and can organizetastings to entice customer purchases. DB

C H E E S E C O R N E R

LAST YEAR WMMBLAUNCHED A SUCCESSFUL

MARKETING “TOOLBOX”FOR RETAILER, WHICH

INCLUDES RECIPE

BROCHURES AND SIGNAGE

FOR PROMOTING

WISCONSIN CHEESES.

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TechNewsMartin

Mitchell,technical

director of theRefrigeratedFoods Association(RFA) and managing director of CertifiedLaboratories compiles TechNews.

The information has been compliedfrom press releases, news articles andgovernment announcements and policyclarifications. Additional information maybe obtained by contacting RFA byphone at 770-452-0660 or online atwww.refrigeratedfoods.org.

Third party audits — Passing the buckor coming full circle?19.apr.09Roy CostaIn the absence of food-safety regulations

in many commodities or the lack of oversightin general, companies have turned to theprivate regulation of the food supply. On anindividual and voluntary basis, dozens ofauditing firms and hundreds of privateparties are looking closely at the safety ofthousands of suppliers. The supplierfood-safety scheme is pushing all the wayback from the retailer to primary producer orfarmer. As each link in the supply chaintightens standards, there will be acorresponding improvement in the safety offinal products.The third-party food-safety business

model is that buyers ”accredit” or approve thethird-party food-safety firms they will acceptaudits from, and suppliers are free to hirewhatever firm they wish to satisfy the buyer.The supplier pays the auditing firm directlyand the auditing firm sends the auditfindings to the buyer. The buyer does not payfor the audit and the findings do not bind hispurchasing decision.Third-party audits have the capacity to

improve food safety and provide anothermeans of protection in the wake ofgovernment inaction or even failure. Thirdparties use private food-safety standardsdeveloped either in partnership withprospective buyers or in formal expert groupsat the national and international levels.They provide the basis for determining“conformance” whereas regulations providethe basis or scope of the regulatory inspec-tion, which is “compliance.” Third-partyaudits cannot take the place of regulatoryinspection in protecting the consumer for thesimple fact that only government has thelegal power to enforce compliance.Third-party audits, since they are voluntary,often take on a collaborative air. A buyermaintaining good working relationships withhis auditing companies makes sense andadversarial relationships are not productive.Bias can easily slip in when the auditcustomer and the auditing firm grow tooclose. Bias can enter from the supplier side aswell. When choosing an auditing firm, asupplier may decide to select a firm based on

price, personal knowledge of the companyand its personnel, as well as the strength ofthe auditing system and its recognition.The premise for any company to hire an

auditing firm is the needs of the buyer who ismore than likely requesting the audit. Theconsumer benefits from the third-partyscheme in more consistently safe products,but protection is weak when the mosthazardous facilities continue to operate.Disqualification of a supplier is theresponsibility of the buyer, but the auditfindings in no way bind the buyer. Thirdparties can rate a firm but they cannotdictate to the buyer who to use. In such anunregulated system, unsafe operationscontinue to operate and distribute unsafefood to consumers who continue to becomeill and die. Unsafe operations continue evenwhen audits reveal clear significant problemsand, more troubling, sometimes auditors donot clearly report unsafe conditions.Bias can work in another way. Since

the auditing firm really wants the supplier’sbusiness, relationships between suppliers,auditors and firms may develop. If thosepersonal relationships cloud the findings anddiscretion of the auditor, the system becomesvery weak.Shifting the weight for protecting the

consumer to third parties alone is not agood system and is simply “passing the buck.”A comprehensive and competent authoritywith enforcement powers and consistentpresence must be at the basis for the model.We cannot rely upon independent thirdparties for this.Government authority backing up the

system greatly improves the third-partymodel and gives it credibility especiallywhen efforts are coordinated with industry.Government acting in tandem with industrythird parties and thus the industry itselfbrings us full circle in the evolution offood-protection efforts. Such an effort wouldpave the way for a significant improvementin the safety of foods and the protection ofconsumers.Roy E Costa, R.S., M.S./M.B.A. Public

Health Sanitarian Consultant Environ HealthAssociates, Inc 1.386.734.5187http://www.haccptraining.orghttp://www.safefoods.tvmailto: [email protected]

“Pork is safe to eat, handle,” sayspork industry02.may.09from a press releasehttp://sev.prnewswire.com/agriculture/20090502/CG1003802052009-1.htmlWASHINGTON — “Pork is safe to eat and

handle,” the U.S. pork industry continues toreassure people in the wake of a report fromCanada that pigs in an Alberta pork operationcontracted an H1N1 virus. A worker whorecently visited Mexico — and became ill withthe flu — is suspected of transmitting thevirus to a pig.“People cannot get the flu from eating

or handling pork,” said Dr. Jennifer Greiner,director of science and technology for theNational Pork Producers Council. “The fluis a respiratory illness, it’s not a food-borneillness.”According to the World Health

Organization, the World Organization forAnimal Health (OIE), the U.S. Centers forDisease Control and Prevention and the U.S.Departments of Agriculture, Health andHuman Services and Homeland Security, theH1N1 flu strain that has been contracted by763 people worldwide cannot be transmittedby eating pork; it is not a food-safety issue.Today, the World Trade Organization, OIE

and U.N. Food and Agriculture Organizationissued a joint statement saying pork is safe.“Influenza is not uncommon in pigs,”

Greiner said, “but they recover, and it doesnot affect the safety or quality of pork.“It is well known that influenzas are

transmissible, and it is not a surprise that aflu virus might have passed from people topigs. The bottom line is pork is safe to eatand handle.”

JUNE/JULY 2009 DELI BUSINESS 95

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In our continuous search for “wow-factor” mer-chandising in the deli, Olson Communicationsrecently surveyed over 300 consumers to get their

insight on promotions and merchandising that capti-vated them and made the difference to entice animpulse buy, try anew product or stim-ulate a brand switch.We had expected tolearn about somenew technology-enabled connectionbut found, instead,

the simplest tried-and-truetechniques were the onesthat worked.

Enticing the Senses:Over 90 percent of respondents said product sampling andproduct displays helped them make their decisions. Well-done displays and signs have stopping power and a delicioussample usually closes the deal.

The Power of the Deal: Eighty percent of respon-dents said coupons made a difference in their decision.Almost three-fourths said store flyers and advertising werehelpful or very helpful. Although we didn’t survey regularon-line customer-requested communication from a retailer,we have heard some feedback in individual interviews withconsumers. They noted the primary benefits of on-linenewsletters are recipes, coupons and special offers.

On My Time: The newspaper food section continuesto entice 59 percent of respondents preparing for a weeklyshopping trip. Sixty-one percent of consumers reacted nega-tively to unsolicited e-mail promotions. Unrequested or irrel-evant information is considered an intrusion and can createbrand aversion among retail consumers. Time is currencyfor today’s consumers and messages that interrupt a task orwaste time can have an adverse affect.

The most negative response from consumers related toloudspeaker promotions in stores — 76 percent objected.These promotions were characterized as interruptions witha message that often did not even relate to the area of thestore in which they were currently shopping. Consumersnoted an important distinction between enticement andinterruption that could be important to retailers when select-ing appropriate tactics for customers in particular stores.Customers enjoyed the offer of a sample that gave them theoption to try a product and make their own decision.

Sampling That Sells: Since consumers favored sam-pling and most retailers have committed to sampling organi-zations for in-store promotions, we conducted some individ-ual consumer interviews to find out more about samplingtechniques that stand head and shoulders above the others.

We were surprised to learn those consumers’ expecta-tions of store employees and demonstrators have actually

decreased in the past five years. In a 2005 study, customerstold us about deli employees who knew and understood theproducts they were offering and encouraged them to trynew things including new products that might not be on saleat the moment. Higher-income consumers in urban markets

said their visits to local greenmarkets were increasing andthere they have the opportu-nity to taste and experiencethe passion of the localfarmer, farmstead cheese-maker or artisan baker.

This year, retail shopperstold us they were more inter-ested in seeing a clean sam-pling area. They were happyif samples appeared to be

fresh and were served appropriately hot or cold. There weremany comments about the sampling tray with the coverthat looks nice and fresh during prime time but a little scaryduring after-work hours with only one or two pieces of aproduct left to try. Off-peak hours are a challenge for dis-plays of perishables when shoppers will use empty displaysto drop unwanted product from other departments. Thesedisplays can become trash bins if not monitored consistently.

Consumers also enjoyed meeting the farmer, artisan orchef whose product was being sampled in store. A celebritychef is always a draw, but many also noted local artisancandy makers sampling their products with passion andenthusiasm almost assured a sale. The only complaint relat-ed to the ability to purchase the product again after the spe-cial promotion, when it was stocked in an unfamiliar loca-tion or not at all.

Displays Packed With Purchase Power: Handcraft-ed was a very positive characteristic when it came to dis-plays. Consumers tended to shy away from big end-aisle delidisplays with colorful graphics in favor of simply packagedproducts with appetite appeal that appeared fresh. Theyexpressed different motivations for shopping in the groceryaisles and noted brand, convenience and price far moreoften than they did for deli purchases where freshness andappetite appeal were key drivers.

Signs promoting seasonal items to call attention to a spe-cial limited time offer were well received.

The Experience Factor: Despite everything welearned about successful merchandising tactics, consumersconsistently told us that their experience with the brand, thestore’s reputation and the ingredients were the most impor-tant factors driving their purchase decisions. There is noamount of clever, wow-factor merchandising that can com-pensate for less-than-brilliant performance at the basics.

Consumers are hungry for experience when it comes tofood. A delicious sample, enthusiastically presented is irre-sistible. DB

Beyond Bells And Whistles:Basics Matter To Shoppers

M A R K E T I N G P E R S P E C T I V E

There is no amount of clever,

wow-factor merchandising that can

compensate for less-than-brilliant

performance at the basics.BySharon OlsonPresidentOlsonCommunicationsChicago, IL

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INFORMAT ION SHOWCASEReceive supplier information fast using the Deli Business Information Showcase

By Phone • By FaxHere’s How: Contact the advertiser directly via the Website, e-mail, phone or fax listed in the ad.

COMPANY PAGE# CATEGORY PHONE FAX

JUNE/JULY 2009 DELI BUSINESS 97

Alexian Pates ........................................................54 ................................................Pates........................................800-927-9473..................................732-775-3223American Cheese Society ........................................85....................................Cheese Society........................................502-583-3783..................................502-589-3602Arneg USA, Inc.......................................................10 ..........................................Food Bars........................................610-746-9570..................................610-746-9580Atlanta Foods International ......................................11 ..............................................Cheese........................................404-688-1315..................................404-223-6637BE Green Packaging LLC ..........................................68..................................Green Packaging........................................805-456-6088Beemster ................................................................5 ......................................Dutch Cheese........................................908-372-6024BelGioioso Cheese, Inc. ..........................................13 ..............................................Cheese........................................877-863-2123..................................920-863-8791Campania Felix ......................................................37 ....................................Buffalo Cheese ....................................39-0823991820 ..............................39-0823563984Carr Valley Cheese Company, Inc. ............................92 ..............................................Cheese........................................800-462-7258..................................608-986-2906The Cheeses Of France ............................................15 ....................................French CheeseCibao Meat Products ..............................................70..............................Hispanic Deli Meats........................................718-993-5072..................................718-993-5638Comte Cheese Association........................................84 ..............................................Cheese........................................212-216-9671..................................212-689-0989Conroy Foods ..........................................................2 ........................................Condiments........................................800-317-8316..................................412-781-1409George E. DeLallo Co...............................................21 ..............................Olives & Antipasto........................................800-433-9100..................................724-523-0981George E. DeLallo Co.............................................100 ..............................Olives & Antipasto........................................800-433-9100..................................724-523-0981Fairbault Dairy ......................................................92 ..............................................Cheese ........................................877-AMABLUG..................................507-332-9011Finlandia Cheese ....................................................89 ..........................Deli Sandwich Cheese........................................973-316-6699..................................973-316-6609Fiscalini Cheese Co. ................................................84 ..............................................Cheese........................................800-610-FARM..................................209-545-5008Flair Flexible Packaging Corp ....................................49 ..........................................Packaging........................................920-574-3121..................................920-574-3122FoodMatch, Inc. ....................................................74 ................................................Olives........................................800-350-3411..................................212-334-5042Vincent Giordano Corporation ..................................67..........................................Roast Beef........................................215-467-6629..................................215-467-6339Great Lakes Cheeses ..............................................83 ..............................................Cheese........................................800-677-7181..................................940-834-1002Hans Kissle ............................................................79................................................Salads........................................978-556-4500 ..........................978-978-556-4612Hissho Sushi ..........................................................45 ................................................Sushi........................................704-926-2200..................................704-926-2201Inline Plastics Corp. ................................................44 ..........................................Packaging........................................800-826-5567..................................203-924-0370Innovasian ............................................................43..........................................Asian Food........................................425-251-3706..................................425-251-1565InnoWare, Inc. ......................................................47 ..........................................Packaging........................................800-237-8270..................................404-659-5116Jana Foods, LLC ....................................................34 ..............................................Cheese........................................201-866-5001..................................201-866-3004Kangaroo Brands, Inc. ............................................33 ..........................................Pita Chips........................................800-798-0857..................................414-355-4295Karoun Dairies, Inc. ................................................61 ..............................................Cheese........................................888-767-0778..................................323-666-1501Karoun Dairies, Inc. ................................................27 ..............................................Cheese........................................888-767-0778..................................323-666-1501Kings Hawaiian Bread ............................................25 ................................................Bread........................................800-800-5464..................................310-533-8352Klondike Cheese Co. ..............................................92 ..............................................Cheese........................................608-325-3021..................................608-325-3027Kontos Foods, Inc. ....................................................7 ........................................Flat Breads........................................973-278-2800..................................410-798-5092Laura Chenel’s Chevre, Inc. ......................................88 ..............................................Cheese........................................707-996-4477..................................707-996-1816Magic Seasoning ....................................................34 ................................Seasoning Blends........................................504-731-3519..................................504-731-3576Manda Fine Meats..................................................65 ..........................................Deli Meats........................................800-343-2642..................................225-344-7647Marcel et Henri ......................................................59 ................................................Pates........................................800-542-6436..................................650-871-5948Miatech, Inc...........................................................46................................Deli Service Cases........................................800-339-5234..................................503-659-2204Norseland, Inc. ......................................................72..................................Jarlsberg Cheese........................................203-324-5620..................................203-325-3189Nuovo Pasta Productions, Ltd. ..................................39 ................................................Pasta........................................800-803-0033..................................203-380-4091Peppadew USA ......................................................31 ..........................................Deli Items........................................908-580-9100Piller Sausages & Delicatessens Ltd. ..........................72 ..........................................Deli Meats........................................800-265-2628..................................519-743-7111Placon ..................................................................23 ..........................................Packaging........................................800-541-1535..................................608-271-3162Principe Food U.S.A., Inc. ........................................41 ..........................................Prosciutto........................................310-680-5500..................................559-272-6183Redondo Iglesias USA ....................................71 & 99 ......................................Serrano Ham........................................516-248-3332..................................718-937-3250Refrigerated Foods Association..................................94 ........................................Association........................................770-452-0660..................................770-455-3879Reser’s Fine Foods..................................................81 ................................................Sides........................................800-333-6431..................................503-646-9233Roth Kase..............................................................86 ..............................................Cheese........................................608-845-5796..................................608-845-5797Rubschlager Baking Corporation................................76 ..............................................Bakery........................................773-826-1245..................................773-826-6619Sabra Dipping Company, LLC ....................................53 ............................................Hummus........................................718-932-9000..................................718-204-0417Sartori Food Corporation..........................................93 ..............................................Cheese........................................800-558-5888..................................920-892-2732The Snack Factory, Inc. ..........................................29 ..............................................Snacks........................................888-683-5400..................................609-683-9595Stefano Foods, Inc. ................................................57 ..........................................Stromboli........................................800-340-4019..................................704-399-3930Valley Lahvosh Baking Co. ......................................76 ..............................................Bakery........................................800-480-2704..................................209-485-0173Ventura Foods, LLC ................................................19......................Shortening, Oils, Spreads ......................................1-877-VENTURA..................................303-679-0095Venus Wafers, Inc...................................................90 ............................................Crackers........................................800-545-4538..................................617-749-7195Wilkinson Manufacturing ........................................46 ..........................................Packaging........................................800-456-4519..................................402-468-5124

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GENERAL POLICIESAdvertisers 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 forall content 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 agreeto 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 pub-lisher 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 appear-ing 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 anyfederal or state agency or association, or by fire, flood, riot, explosion, strike, embargo, either legal or illegal, material or labor shortage, transportation or work interruption or slowdown, orany condition or act of God affecting delivery and beyond the control of the publisher.

incet of Saligny, France,makes regional specialtycheeses from Burgundyand Champagne, includingPDO Chaource, PDO

Epoisses, Brillat-Savarin and Délice deBourgogne. The company took its presentform in 1957 with the acquisition of a smalldairy in Saligny that specialized in the pro-duction of Saint Florentin.

The Lincet family, originally from Marne,France, has been making cheese for fivegenerations. Didier Lincet, patriarch of thefamily, is pictured to the right. The originalcheesemaking facility is shown in the picturebelow left, taken in 1907.

The molding line, pictured below right,was installed in 1960, and it proved to be agreat improvement for productivity andergonomics.

Blast From The Past is a regular feature of DELI BUSINESS. We welcome submissions of your old photos, labels or advertisements alongwith a brief description of the photo. Please send material to: Editor, DELI BUSINESS, P.O. Box 810217, Boca Raton, FL 33481-0217

or e-mail [email protected]. For more information contact us at (561) 994-1118.

L

Blast FromThePast

98 DELI BUSINESS JUNE/JULY 2009

Lincet

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Page 100: JUNE/JULY 2009 $14.95 5thAnnual People’sAward · JUNE/JULY 2009 DELI BUSINESS 3 MERCHANDISING REVIEWS Cross-Merchandising Builds Sales.....30 Building a higher ring is the name