This year’s Winter Fancy Food Show boasted another year of record attendance expecting more than 18,000 attendees. More than 1,000 of the 1,300 exhibitors were American manufacturers. There were 14 major international pavilions with large trade delegations representing 32 countries.
Buyers attending the show represented many of the nation’s leading gourmet and specialty food retailers as well as major supermarkets, mass merchandisers and foodservice industry segments including college and university, casinos, healthcare and quick service restaurants.
Specialty Food Industry Update
U.S. retail and foodservice sales of specialty foods and beverages rose 6.9% in 2011, topping $75 billion, according to new research from the National Association for the Specialty Food Trade (NASFT). Forty-one percent of specialty food manufacturers reported a sales increase of more than 20%. Specialty foods represent 13.7% of all food sales at retail. Sixty-six percent of U.S. consumers purchase specialty foods, up from 59% in 2011.
Highlights of a new report from NASFT and Mintel on the specialty food consumer:
- Impulse drives more than 40% of consumers to purchase specialty foods.
- Diet and health concerns influenced more purchases in 2012 than in 2011.
- Taste is the top reason for purchasing specialty foods, followed by recommendations from a friend or relative.
- Three quarters of specialty food consumers have shopped at a farmers market within the past year.
- Italian and Mexican remain the top international food purchases.
- Coffee and chocolate are the specialty foods most likely to be purchased online.
- Family food traditions are important to 79% of specialty food consumers.
- More than half of specialty food consumers purchase foods that support charities.
Conscious Capitalism
John Mackey, co-founder and co-CEO of Whole Foods Market, delivered the keynote address where he discussed his new book, Conscious Capitalism: Liberating the Heroic Spirit of Business, where he delved into what it means to make a profit while making a difference.
Many exhibitors echoed this philosophy with products and claims to inspire globally conscious consumers.
Everyday Indulgence
The top two reasons consumers purchase specialty food are for everyday meals at home and to treat themselves. The specialty food industry has long been masterful at turning products that might otherwise be considered “commodities” into sought-after indulges that are accessible enough for consumers to enjoy every day. Notable among these categories are cheese, olive oil, chocolate, coffee and tea.
The oil category in particular has exploded with a wide range of new oils made from a significantly wider range of fruits and vegetables. Exquisite olive oil is still in demand, but show-goers were interested in sampling the new, unexpected varieties of oil made from tomato seeds, cherry seeds, chili seeds and pumpkins seeds, each with unique characteristics.
Even water has become an indulgence with growing interest in coconut water and almond water developing loyal advocates.
The New Homemade
This show is known for small batch artisan food makers specializing in the niche market product that is made by hand. These specialty products give the consumer the advantage of getting homemade without the work.
For those who would like to be a little more involved in cooking, food kits have long been a staple offering at this show with dry cookie and soup mixes. And this category saw new energy this year with kits that allowed the consumer to incorporate fresh and seasonal products. One company offered pie kits where all you add is fresh fruit with results more beautiful and delicious than grandma ever dreamed possible.
Eighty-one percent of specialty food consumers say they are eating at home more often to save money, according to NASFT. With the offerings available, there is no need to compromise on getting gourmet flavor at home.
Reconsidering Indulgence
Products that are classic indulgences continue to be high interest categories, yet many consumers are rethinking their indulgence with a healthy perspective. Products with functional ingredients, ingredients with distinctive provenance and third party certifications for ethical practices are becoming some of the specialty foods and beverages in demand.
Unexpected Vegetable Applications
We have been surprised and delighted with many of the hidden vegetables in foods over the past year, like the deliciously healthful dark chocolate cupcakes infused with beet juice tasted at other shows. But vegetable teas are what captivated much attention at this show. New flavored teas included spinach chive, tomato mint, broccoli cilantro, carrot curry, fennel spice and beet cabbage that inspired curiosity and challenged some tasters. The new vegetable concoctions are undoubtedly an acquired taste, but perhaps a taste of things to come.
According to The Wall Street Journal in an article published the week of the show, consumer sales of juice extractors were up 71% in 2012, spurred by consumer desire to eat more vegetables and experiment with new flavors.
Classic Condiments
Although the condiment category is highly saturated with the basics like ketchup, mustard and mayonnaise, there was notable innovation in these basics with scoopable texture and ingredient claims. This is a $9.7 billion category that has grown substantially during the recession with sales increases of 5.6% and 6.2% in 2008 and 2009, respectively. Condiments have proven to be an easy, low cost way for consumers to prepare interesting meals at home.
The interest in pickling is clearly evident in this category. Pickles, olives and relish lead the condiment category, accounting for just over 26% of sales. It is customary to see long lines of customers waiting to sample chocolates or latest hot food trend at this show, but it was startling to see long lines waiting to sample some handmade pickle offerings this year.
Umami paste continues to draw attention for its unique packaging and versatility.
Product Claims
The show issue of Specialty Food Magazine identified 36 food labels important to the specialty food industry. According to the new study released by NASFT at the show, following are the leading claims:
- Kosher is the leading claim for new specialty food products, followed by All Natural.
- Natural food stores are the fastest growing retail channel, with a sales increase of 19.8% from 2009 – 2011.
- Local is the most influential product claim today, according to three quarters of retailers surveyed and two thirds say the claim will grow the most in the next three years.
Cuisine Spotlight
- Mediterranean: Although Italian continues to dominate Mediterranean flavors favored by specialty food consumers, Greek is growing in popularity. The new spotlight is on North Africa and flavors of the Maghreb region continue to grow. Morocco had a significant international pavilion at the show.
- Latin: Retailers report Latin as the fastest emerging cuisine.
- Indian: Flavors of India are finding their way into many more products that are not classic Indian ethnic food, but rather those that benefit from the flavors of India.
- Korean: Although Korea did not have a pavilion at the show, Korean flavors were in abundance on the show floor from spicy kimchi seaweed chips to condiments with Korean flavors.
Flavors That Challenge
Last year we reported on flavors that challenge the more adventurous palates by highlighting San Francisco cult icon ice cream maker, Humphry Slocombe. This year their popular Secret Breakfast ice cream made with corn flakes and bourbon can be found in several locations around the city.
This year, a master course at the California Cheese School of San Francisco featured the distinctive cheeses of a small region in Italy that culminated in a taste of a new experiment by this generations-old cheese maker, “senza nome” a cheese with no name that was a delicious combination of an elegant, young goat’s milk cheese with a big hit of pepper and heat that surprised every seasoned palate in the class.
Even the latest batches of hot sauce kick up the heat a notch with more varieties of super hot peppers to challenge heat seeking palates. And Jelly Belly featured their previously introduced spicy/sweet Tabasco jelly bean.
Taste Talk Tweet
Tweeters noted many new products on the show floor, including a new energy-boosting black garlic and ginseng jelly candy that has no added sweetener, instant coconut water mix, savory teas marketed as flavoring agents to cook noodles or rice, and fruit foams for the home cook using just fruit juice and cane syrup in aerosol dispensers. Products infused with chia seeds were plentiful on the show floor and fueled more than a few tweets. A dry Sriracha spice blend captivated this audience with its new form and packaging in a spice grinder. “Beauty candy” also proved alluring and was introduced as a sweet way to take in Vitamin E, beta carotene, collagen and antioxidants.
If you would like to follow our observations in real time at our next show, please follow us at http://twitter.com/OlsonComm. The next conference we will cover is NAFEM, February 7-9.
Implications:
Healthy is the New Indulgence – consumers are reimagining indulgence in terms of foods that provide delicious, clean fuel for their bodies. Natural, clean ingredients and vegetables are the new culinary chic for gourmet foods.
Small Continues to be Big News – small batches, hand crafted foods and boutique flavors continue to captivate retailers and consumers looking for the secret find.
The Everyday Gourmet Cook – consumers enjoy treating themselves to a gourmet experience, and they are feeling more empowered as home chefs than ever before. Sauces, condiments and cooking kits that enable them to create their own experience on demand are destined for success.
Flavors to Explore – North African flavors, especially those of Morocco, are coming into their own and Eastern European foods are gaining new attention.