Make it healthful and convenient
Todays busy consumers want affordable food options that they can prepare quickly. But such foods need to be healthful, too. It might sound like a demanding combination, but the private label pasta and rice segments are helping consumers meet the challenge.
Pasta is a healthful complex carbohydrate, containing iron, vitamin B and glucose. Its also low in sodium and cholesterol-free, making it an ideal meal choice, says Frank DeMichino, chief operating officer, Italpasta Ltd., Brampton, Ontario.
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consider sources of fiber other than wheat, as well as ancient grains, for inclusion in store brand pasta.
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miss the opportunity to address misperceptions related to carbohydrates via own-brand pasta and rice marketing efforts.
White high-fiber pastas and pastas containing omega-3 fatty acids, spelt or Kamut are gaining in popularity, as are those that are organic or gluten-free. Pasta manufacturers are jumping on the bandwagon.
\"Many retailers already offer gluten-free and organic pastas on a smaller scale, but they are becoming a mainstay in the store brand lineup,\" DeMichino says. \"Store brands are quickly launching or expanding their white high-fiber offerings.\"
Dakota Growers Pasta Co., Carrington, N.D., is focusing new product development on better-for-you pastas and identifying nutritional formulas that will enhance health benefits.
\"Many baby boomers are seeking out products to help manage their health and disease states, while many Generation Y consumers are seeking out the same products to prevent these same health conditions that their parents have,\" says Jack Hasper, Dakota Growers Pastas vice president, sales and marketing. \"Our offerings of VeggieServe, multigrain and whole grain are especially well received.\"
While dry rice is perceived as a healthful alternative eaten by young and old alike, consumers have a less positive perception of rice mixes, likely driven by the high sodium content that many possess, according to \"Dry Pasta, Rice, Noodles and Ancient Grains – US,\" a February report from global market research firm Mintel. Although the segment is forecast to continue to grow through 2017, much will depend on health-minded product innovations here.
Another healthful option that is linked closely to the pasta and rice segment is the whole-grain seed known as quinoa. Kathleen Francois, global manager, Colorexa, Lima, Peru, says the best product development opportunities for quinoa are flakes and flour – both of which are full of protein and amino acids and have no fat.
\"They are good for diabetics and people on a gluten-free diet,\" she says.
In addition, Francois says more details regarding health benefits – such as protein content – should be provided on quinoa packaging.
Room for improvement
They might want more healthful pasta and rice options, but consumers dont want to compromise on taste. And according to the Mintel report, 24 percent of respondents to a survey said whole-wheat pasta, which is higher in fiber than traditional pasta, does not taste as good as \"regular\" pasta.
Because consumers consider a high fiber content important, manufacturers have been finding ways to meet this demand without compromising taste.
\"With expected 2013 food price increases [on products such as wheat], companies have an opportunity to expose consumers to sources of fiber other than wheat; pasta made with ancient grains [has] an opportunity,\" the Mintel report states.
For white high-fiber pastas, it is important for store brands to have an aggressive plan to get the products to market quickly, DeMichino says.
\"Collaboration and product development between the manufacturers and the retailers will be more important than ever to ensure the success of new products moving forward,\" he adds.
DeMichino also has noticed a great deal of misinformation regarding carbohydrates; the pasta segment has been lumped into a pot of products that arent good for you.
\"Convey to consumers that the body needs healthy carbs; pasta offers excellent nutritional components that the body needs to stay healthy,\" he says.
And although more consumers are looking for gluten-free items, only 7 percent of respondents surveyed by Mintel who ate pasta in the previous three months agreed that gluten-free pasta tastes just as good as regular pasta.
\"This indicates that the majority of respondents are not yet completely comfortable with the taste of gluten-free pasta,\" Mintel says. \"Therefore, companies need to consider further optimizing the taste of gluten-free pasta.\"
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maintain a desirable price gap between store brand and national brand pasta and rice offerings.
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miss opportunities to cross-merchandise pasta and rice with complementary items as complete meal solutions.
And companies also could find ways to reduce sodium in rice and pasta – perhaps by replacing some of it with herbs to maintain flavor, while presenting a better nutritional profile, Mintel adds.
DeMichino notes that package downsizing is occurring, as are some re-sealable package options to retain freshness after the package has been opened.
\"Its important for retailers to stay ahead of pack-size changes so they can ensure theyre not at a disadvantage on price because theyre offering a larger pack than is necessary versus the national brand,\" he adds.
On the rice side, Brian Wendelschaefer, director, retail sales and marketing for Los Angeles-based Sage V Foods LLC, says organic and natural individually quick-frozen (IQF) rice in cartons – with multiple 10-ounce pouches per carton – is gaining in popularity.
\"This provides consumers with multiple servings of convenient to use IQF rice,\" he says.
Price it to sell
No matter how healthful or convenient, store brand pasta and rice still need to be priced and promoted appropriately to attract consumer interest.
\"When national brands deep-discount their products, quite often the private label brands suffer as this volume shifts to national brands,\" DeMichino says. \"The spread between national brand and private label must be significant enough to sway consumers to your brand even when there is ad activity. Many retailers dont shield their own brand when advertising national brand equivalents, which would help protect their private label volume and lead to increased brand loyalty.\"
Hasper concurs.
\"A 2008 study by Willard Bishop showed that promoting both [the] brand and [the] store brand at the same time results in greater revenue and profitability,\" he says.
Ensure strong growth ahead
What does the near future hold for pasta and rice?
\"With its great taste, versatility, convenience factor and exceptional value, pasta should maintain or grow its share of the consumers pocketbook,\" Hasper says, pointing to a February 2013 report from New York-based Nielsens Spectra that says pasta enjoys 85 percent household penetration. Pasta over-indexes among millennial and Hispanic groups, as well as families with children.
Because the pasta and rice segment is very price-sensitive, private label is likely to benefit, not only because of affordability, but also because of improvements to quality and selection, Mintel reports. But marketers need to strike a balance among health messaging, indulgence and convenience; the emphasis should be placed on positive attributes such as whole grains, great taste, affordability and convenience.
And on the rice side, Wendelschaefer cautions against overlooking \"plain\" rice items.
\"Medium whole-grain brown rice is our companys top-selling product, followed by jasmine rice, the fastest-growing item,\" he says. \"Check out what other accounts are offering and who supplies them. Then go with winners – those demonstrating success.\"
When looking to heat up sales, retailers also should consider cross-merchandising. For example, a Nielsen basket analysis showed that when pasta is cross-merchandised with items such as pasta sauce, tomato sauce or shredded cheese to make a pasta dinner, the market basket ring is much higher, Hasper says.
And retailers should communicate the value of store brand pasta and rice.
\"Its important to have the correct margin parity of your store brand supported by shelf signage calling out your store brand savings,\" Hasper says.
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| Source: Mintels Global New Products Database |