Slick Flavors
By John J. Pierce
|
|
| Meijer’s olive oil cooking spray might have been a new concept a decade ago, but today it’s the most ordinary item in this group, which includes Kalamata & Feta Cheese dipping oil from Target, Bruschetta flavored olive oil from Topco, Hot Garlic & Herb basting oil from Price Chopper, and Mediterranean Garlic dipping oil from Kroger. |
Wegmans Olio Novello is here today, gone tomorrow. But year-round oils and vinegars in store brands are also triumphs of niche marketing.
Seasonal candy? That’s one thing. But seasonal olive oil? They’ve got it at Wegmans, Rochester, NY. Or did, a month ago. “Olio Novello,” they call it: Italian for new or fresh oil. It comes from olives harvested a few weeks before the New Year, then pressed and bottled.
“This seasonal treat is unfiltered olive oil, with the most intense flavors and highest levels of beneficial antioxidants of any olive oil,” Wegmans explained in a press release. “Novello’s flavor and quality are at a peak near the harvest date – so this treat is best enjoyed without delay.”
Shoppers were also advised to get to the store without delay: “The Novello oil is available while supplies last, but once it’s gone, there will be no more until January 2009.” Priced at $7.99, in distinctive 16.9 oz (500 ml) bottles, Novello extra virgin olive oil arrived in stores in mid-January, and was merchandised from special front end displays.
Evolution in Action
Time was that the range of store brand cooking and salad oils was pretty limited. There were the standard economy oils – corn, vegetable and (later) canola – with some retailers also offering peanut or sunflower oils. Then there was olive oil, in pure, light and extra virgin varieties. Back then, shortening was a big thing, and a lot of chains carried that in private label.
But these days there are cooking oils, basting oils and dipping oils. There are imported olive oils in regional varieties, flavored and infused olive oils, grapeseed oils, pumpkin oils… Wegmans may be the first with limited edition olive oil, which isn’t its only innovation in the category: another introduction this year is an organic high-oleic sunflower oil – “so versatile you can use it the same way as olive oil.”
Private label olive oil sales were up 9.2% to $135.5 million for the 52 weeks ended 1/27/2008, according to Information Resources, Inc. (IRI), Chicago, IL. That outpaced overall growth, and produced a store brand share of 19.4%. Other cooking and salad oils produced store brand sales of $348.8 million, up 7.1%, with a share of 38.3%. But to catch shoppers’ attention, retailers have to be more creative and exploit new niches.
You think you’ve seen everything? Check out Target, Minneapolis, MN, which is using its super centers to market store brand specialties even progressive supermarket chains like Wegmans haven’t tried. Kalamata Olive & Feta Cheese dipping oil, for example – you can’t make this stuff up. Other 500 ml flavored dipping oils under the Archer Farms brand at $8.69 include Chili Pepper, Lemon, Basil and Rosemary.
On the Run, On the Make
In olden times, all Exxon – then still called Esso – wanted only to put a tiger in your tank. Now the company is called Exxon-Mobil, and it wants to put a whole bunch of Bengal Traders and On the Run Café snack and other foods in your stomach.
The Bengal Traders brand started a decade ago at Exxon Tiger Mart outlets with just coffee. It was a first for Exxon, but hardly for the convenience store business – it’s hard to find a national or major regional C-store operation that doesn’t have its own coffee brand, and hype to go with it.
But in 1997 there also came On the Run, a program developed for Mobil gas stations, and with full-size stores, not the postage stamp-size outlets like Tiger Mart. When Mobil merged with Exxon two years later, the franchise concept displaced Tiger Mart, and is now giving other C-store chains a run for their money. Store count passed 1,000 in 2004 and may be twice that now.
Bengal Traders, once just a coffee brand, has been leveraged for a range of take-out convenience foods – mostly for breakfast. There are Driver’s Dozen donut holes (chocolate, powdered sugar, sour cream), sour cream and glazed ring donuts, cinnamon buns and golden cakes, chocolate cup cakes, single-serve cookies like peanut and chocolate, and even single-serve apple and cherry fruit pies.
Two years ago, Fairfax, VA-based Exxon-Mobil launched another brand, On the Run Café, for microwave foods, with a line of five breakfast sandwiches: Sausage, Egg and Cheese Biscuit; Ham, Egg and Cheese Croissant; Bacon, Egg and Cheese English Muffin; Sausage, Egg and Cheese Bagel; and Sausage Biscuit. Since then, it has added a Chorizo Egg & Cheese Corn Tortilla English Muffin. For lunch or dinner, there are now jumbo hot dogs, mega-wedge sandwiches, beef cheeseburgers and beef-bacon cheeseburgers.
Exxon-Mobil has kept a low profile about these lines, even at its On the Run website, which only mentions Bengal Traders coffee, apparently because not all On the Run franchises carry all the products – on Route 17 in Bergen County, NJ, for example, a southbound outlet has a wide range of Bengal Traders items, but few On the Run Café products. Just the opposite is the case at a northbound outlet. |
Ordinary Italian olive oil is $7.99, and organic $9.99. Then there are the 7.8 oz cooking oils – Mediterranean, Roasted Garlic and Fiery Chili – at $3.49. They’re based on canola oil, but with other ingredients such as, in the case of Mediterranean, roasted garlic oil and basil and thyme oils. But besides adding flavor to stir-fry, sauté and grill dishes, Target says, they can be drizzled over meat or vegetables, or mixed with vinegar to produce a salad dressing.
Even when the products aren’t new, the hype still can be. Topco Associates, Skokie, IL, adorns its World Classics Trading Co. 100% Pure Italian olive oil – generally considered a cut below extra virgin – with a mock consumer testimonial: “Italians claim the olive oil from these rolling Tuscan hills was used to anoint Kings. I anointed my salad and pronounced it magnifico.”
Imported specialty olive oil is the hallmark of many a private label program – and so is hype. “We work with olive oil producers throughout Italy,” noted Christine Klem, Wegmans’ merchandise manager. Its tasters, most of whom are professional chefs, make the final selection for Novello – the latest has a flavor profile associated with Tuscany. “Layers of fragrance and flavor unfold on the tongue,” the chain rhapsodized in its press release. “First, there’s a grassy aroma, then a buttery taste, and then a peppery finish.”
Specialty Niches
Ahold USA, Boston, MA, is one of a number of retailers to offer regional olive oils from Italy. Umbria, Sicily and Apulia varieties are available at Stop & Shop outlets under the Simply Enjoy brand in 8.5 oz bottles at $6.49. There are also flavored varieties – lemon, pepper and orange. Ahold also offers a regional balsamic vinegar of Modena in a matching bottle – same size, same price.
Under its Central Market Classics brand, Price Chopper, Schenectady, NY, has introduced 8.5 oz Hot Garlic & Herb basting oil at $3.99 – grapeseed oil infused with oil of garlic, thyme, parsley and red pepper flakes. A Garlic & Herb dipping oil is also part of Price Chopper’s premium line, along with 17 oz grapeseed oil at $3.49 and 8.5 oz garlic and lemon olive oils at $3.99. Wegmans had pioneered basting oil and grapeseed oil in the same region.
Dipping oils under the Private Selection brand at Kroger, Cincinnati, OH, include Mediterranean Garlic. Zesty Italian and Garlic Balsamic, all in 8.5 oz bottles at $4.99. Tarragon, red wine and balsamic vinegars are part of the same line. Bruschetta, truffle and garlic flavored olive oils are distributed by Topco under the World Classics Trading Co. brand. So is balsamic vinegar of Modena, and Topco has just come out with a basting oil.
Even in standard oils, retailers are getting creative with promotion. “Time For an Oil Change” reads a point of sale placard for 48 oz canola oil at Hannaford, Scarborough, ME. Smaller copy points out how low the oil is in saturated fat, transfat and cholesterol. Because corn, vegetable and canola oil account for the bulk of store brand cooking and salad oil sales, retailers need to give them plenty of facings and plenty of push – especially now, when a recession may force shoppers to trade down from olive oil.
In vinegar, private label sales were up 4.6% to $98.9 million and a 41.7% share last year. Much of the market is still in economy items like Great Value distilled white vinegar at Wal-Mart, Bentonville, AR, which retails at only 53 cents a bottle, or Market Pantry at Target – $2.39 for a 64 oz jug. But the dollar growth may be fueled mainly by the pricier items like Food Club premium aged white wine vinegar, $2.99 at Food City outlets in Virginia, or Tuscan and Chianti Red Wine vinegars at Wegmans, going in 500 ml bottles for $4.99.
Recommended Suppliers
- American Euro Foods, Brookfield, CT, 203 740-7387
- Mario Camacho Foods, Plant City, FL, 800 881-4534
- Drogheria & Alimentari Srl, Prato, Italy, 0039 0574 52031
- LiDestri Foods, Fort Lee, NJ, 201 944-1233
- Vigo & Alessi Products, Tampa, FL, 813-884-3491
Products described or shown in this article are not necessarily available
from these suppliers. For more suppliers see current Private Label Directory & Buyer’s Guide. |