Passion For Foods

Existing Items to be “Tweaked” to Be New in 2010

I have just finished reading a summary of the recent report done by Mintel regarding their prognostications for the packaged goods business in the upcoming year.  In a nutshell (if you’ll pardon the pun), they predict that many of the new packaged goods products that will be introduced in 2010 will be somewhat recognizable to many consumers, but will have a “new and improved twist” that will, hopefully, induce sales.  There are several aspects to their report, some with which I concur but there are some findings in their research that are simply not consistent with our daily experience in operating Epicurean Foods.

“Post-recession, we don’t expect manufacturers to reinvent the wheel. Instead, we predict 2010’s new products will give shoppers something familiar paired with something new to better satisfy their needs,” states Lynn Dornblaser, Mintel’s leading new products expert. “On retail store shelves, we expect today’s familiar megatrends–health and wellness, convenience, sustainability–to get a fresh, new makeover for 2010.”

Several Factors To Influence New Product Introductions Including Low Sodium Levels

Interestingly, Mintel predicts several key factors will influence new product introductions as manufacturers try to create interest in their new items while simultaneously keeping shoppers “comfortable”.

One of the most intriguing aspects of their report from our perspective at Epicurean Foods is the section that discusses sodium reduction in gourmet foods.  Industry experts within the gourmet food industry and the more mainstream “grocery store” channel generally agree that the demand for sodium reduction in many foods is finally ready to take hold.   In her comments, however, Dornblaser remarks that  “Sodium reduction is being pushed by food companies and health organizations, not by consumers.“   She contends that this could mean slow adoption of the “less salt” mantra by shoppers, even as the food industry moves ahead.

I would tend to disagree with Dornblaser on this key point. Literally on a daily basis, we are asked by our customers about the relative salt levels in many of our spice rubs, dip mixes and bread dipper seasoning mixes.  (We once had an inquiry about the sodium levels of our sea salts, but we will ignore that for now…)  Consumers today are very concerned about their relative salt intake and are making great efforts to educate themselves about what are healthy levels of salt ingestion.  One of our largest private label customers has also requested that we work with them to develop an entire line of low-sodium dip mixes, further confirming our own findings and daily experience.

Definition of “Local” Likely To Expand

The authors of the report correctly conclude that while many consumers would prefer to “buy local”, reality precludes it in many cases.  (It’s hard to buy local produce in Boston or Toronto in February.)  However, many people are still interested in eating foods that are either unique to a specific growing or producing region of the world (e.g. Balsamic Vinegar of Modena) or from producers located as close to their location as possible.

Balsamic Vinegar continues to be very popular with gourmet food consumers

We concur with the author’s assessment that in 2010 the definition of “local” will continue to expand.  Many of our customers have already indicated their great interest in our plans to continue to add hundreds of new gourmet and specialty food items to our website items from artisanal producers from around the world.

Greg Sprout, Co-Founder,

www.epicureanfoods.com

Mintel forecast 14 additional consumer packaged goods trends for 2010. To receive the complete list, contact press@mintel.com or call Mintel’s press office at 312-628-7946.

The Fielding Group: A Company With A Vision

One of the most enjoyable aspects of operating an online gourmet food company is the interaction that we have with both our customers and our suppliers.  Every day, our customers phone, fax or email us with their (usually) very positive comments about the products that we carry.  It’s gratifying (beyond words in many cases) to receive these wonderful comments.  However, in some ways, we feel that it is not really we who should be receiving such glowing reviews of  the products that we offer.  Rather, it should be our hard-working suppliers who labor so stridently to create these fabulously delicious gourmet and specialty foods.  One of those companies is the The Fielding Group.

Long History With Fielding and Epicurean

Like many of the gourmet and specialty food companies with whom we work, The Fielding Group is a small company that is owned and operated by a husband and wife team.  Jim & Lily Fielding have owned the company for over 20 years and specialize in chocolate truffles, but also carry several other gift basket products including crackers, cookies and gourmet gift packs.  Many of their products are targeted to the wholesale gift basket trade, but several are ideal for consumers to purchase for their own consumption or for gifts.  They are marketed under the Cherrington, Cherrington Farms and Chocolat Classique brands.

We came to know Jim & Lily as our companies both grew quite quickly in the late 1990’s.  We had several common customers and exhibited at the same industry trade shows.  As well, like hundreds of other small gourmet companies based in Canada in 2006, we were both victims of a multi-million dollar gift basket distributor fraudulent bankruptcy.  Fortunately, we both survived the criminal actions of the unscrupulous company involved.  Surviving the debacle together only further cemented our friendship and partnership.

A Passion for Excellence Is Evident At The Fielding Group

One of the most striking aspects of how Jim & Lily operate their business is their passion for excellence and their focus to ensure that they maintain the exceptionally high quality standards for which they have become so well known.  As we have found with several of the other companies with whom we deal, Jim & Lily seem to take a personal interest in how their products are produced, stored and shipped.  They are sincerely passionate about ensuring that their customers enjoy their truffles and other chocolate specialties.  “Good enough” simply isn’t at The Fielding Group.

“Hands-on”: How Great Chocolate is Made

Like so many gourmet and specialty food producers, Jim & Lily are directly involved in virtually every aspect of the production of their great gourmet food products.  During two recent plant tours, I have  seen them doing everything from answering phones and completing customers invoices to doing quality control along their small production line to overseeing shipping & receiving.  Every step in the production process ensures that quality control is closely monitored.  Interestingly, the founders’ passion has also filtered throughout the organization as their loyal Associates also seem genuinely committed to following their commitment to excellence.

We are very proud to represent Jim & Lily Fielding and their superb products.  You can find many of these unique specialties on our website, www.epicureanfoods.com

Greg Sprout,

Co-Founder

New Study Reveal Consumers Searching For Variations to Familiar Themes

A recent study completed by Restaurants and Institutions reveals some very interesting trends in what consumers are searching for these days when it comes to making their favorite soup selections.  Long gone are the days where people are committed solely to to those ubiquitous red and white cans of soup that our grandparents first began using more than 50 years ago.  Rather, various “twists” and “interesting new taste variations” that combine traditional soups with unusual and exciting new flavors are becoming increasingly popular.

Combinations of Old and New Soups Gaining in Popularity

To cite a pertinent example, the report reviews the recent experience of The Massachusetts General Hospital in Boston. There, traditional Chicken Noodle Soup is (not surprisingly) a staple with patients.  However, it’s a different story, in the hospital’s eight busy cafeterias for employees and visitors.

There, the classic “feel-better” soup’s popularity is challenged by the such interesting soups varieties such as Lebanese Vegetable, Italian Pasta e Fagiole and Racy Red Lentil, an Indian-inspired recipe with cumin, fennel, ginger and garlic. When asked why they have adopted an international approach to their soup selections, senior cafeteria management stated the reason simply: growing consumer interest.

“Our customer base demanded that we become more daring,” explains Susan Barraclough, director of nutrition and food services for the hospital. “Six years ago, we wouldn’t have had a soup like Racy Red Lentil.”

Consumers Interested in Ethnic Flavors At Home & While Dining Out

Ethnic soups are once again becoming a very popular selection for consumers both at home and while dining out. While it is true that the percentage of consumers who order soup at restaurants has declined to 14% in 2009 from 25% in 2007, according to Chicago-based market researcher Technomic’s 2009 Soup Consumer Trend Report, today, 40% of soup consumers indicate that they would be particularly interested in a wider variety of ethnic soups—especially those with underlying Italian, Asian and Mexican taste themes.

Gourmet Soup Palates Becoming More Sophisticated

I find it very interesting that the research findings of this prestigious industry association are very close to what we have been discovering with our sales patterns and customer requests at Epicurean Foods.  For some time now, our customers have been asking for soups that are “different than what they can find at the local grocery store”.  To address this ongoing need, we offer two lines of gourmet soups: Connor Creek and Turtle Island.  Both have interesting flavors and represent excellent value to the consumer.  The Connor Creek line of gourmet soup mixes is primarily bean-based, while the Turtle Island flavors are cheese-based.

Whatever the flavors used, we have found that these “cross-cultural combinations” can be very popular if  the soup still delivers warming, savory flavors.  Soup still remains a classic year-round  “comfort food”  and is one of  the most satisfying dishes that people enjoy.  As such, watch for Epicurean Foods to continue to add more great value, interesting soups in the weeks and months ahead.

Greg Sprout, Co-Founder,

www.epicureanfoods.com

Tea Report Reveals Fascinating Insights into Tea Trends

I had an opportunity to peruse a summary of recent report compiled by the prestigious market research company, Packaged Facts, on how the ongoing downturn in the economy has impacted the sales of tea.    (The report is the culmination of  Packaged Facts’ February 2009 online poll of 2,600 U.S. adults, which was conducted to measure purchasing patterns, attitudes and demographics specific to the consumption of tea.  The marketing research study is an exhaustive analysis of the tea industry as a whole and can be purchased for US$3,300 directly from the company).   There were several aspects of the gourmet tea industry that were examined in detail, including:

• an overview of the exotic “super-fruit” flavors now becoming more common
• a review of the “hybrid tea products” that are designed to compete with other beverage categories (this includes bottled waters, energy drinks and sodas)
• a discussion of the new RTD (Ready-to-Drink) green teas that are fast-becoming a permanent and growing tea category
• a summary of the emerging segments including yerba mate and Kombucha
• a critique of the increased awareness and increased popularity of fair trade tea and other “ethical” appeals
• a review of the relatively amazing social marketing done by both producers and distributors via nontraditional media such as Facebook and Twitter
• and, finally, a brief review of the increasingly coordinated and focused marketing thrust that is seeing tea’s distribution expanded in both traditional and non-traditional retail and foodservice channels.

Tea Sales Remain Strong in Slow Economy

There can be no doubt that the ongoing worldwide economic recession has clearly affected the domestic  tea market.   (For example, the double-digit sales growth in the high-end RTD segment has slowed quite significantly, whereas in the more affordable tea bags / loose tea sector, sales have actually increased slightly.  This is seen by researchers as a testimonial to tea’s appeal as an “affordable luxury” and its compelling image as a healthy product.  What is also interesting is the fact that during the period of  2005 to 2009, overall tea sales have done comparatively well, vis-a-vis many other beverage categories.   Overall, the report indicates a relatively promising economic outlook for the tea industry as a whole, particularly as the economy rebounds in the years ahead.

Tea Sales Trends at Epicurean Foods Mirror Those of the Tea Industry

I found the report’s contents to be exceedingly interesting if for other reason that they mirror the sales trends that we are experiencing at Epicurean Foods. While there is no doubt that overall sales have been affected by the ongoing economic downturn, tea sales and tea accessory sales have not only held steady, but in many cases, actually increased.  This is due to a number of factors we believe.  The positive media coverage that tea has received as being a healthy beverage and the increased awareness generally of “Fair Trade” coffee and tea have been a boon to sales.

The Metropolitan Tea Company is a Superb “Fair Trade” Tea Supplier to Epicurean Foods

There is little doubt in our minds at Epicurean Foods that a significant part of the reason for our increased tea sales is due to the fact that in late 2007, we began to offer many of The Metropolitan Tea Company’s products on our website, www.epicureanfoods.com.  While I intend to write considerably more about this company in upcoming blog entries,  I cannot say enough good things about their products and how they operate their company.  They are passionately committed to product quality and to dealing ethically and fairly with their suppliers.  While the company has grown to be an enormous success story, it is still privately held.  The owners and a very small group of senior mangers still travel to the tea gardens of India, Nepal, China, Taiwan and Sri Lanka to personally select their teas.  We are very pleased and proud to be distribution partners with them.

The Tea Market is “Heating Up!”

While you must forgive my admittedly somewhat pedestrian pun, (sorry - I couldn’t resist),  our own experience in offering gourmet teas to our own discerning customers continues to be an ever-growing success story.  In 2010, we plan to continue to add exciting new products to our rapidly growing portfolio of gourmet specialties.  Fine teas and tea accessories from the world’s finest growing regions and the world’s best producers will certainly be among them.

Greg Sprout, Co-Founder,

www.epicureanfoods.com

NASFT Study Confirms What We Suspected

I read with great interest a recent report by the National Association for the Specialty Food Trade, www.specialtyfood.com that reveals, among other things, that the recession has induced the majority of consumers of specialty food to cook more often at home and to plan more meals ahead of time.  Despite the ongoing economic downturn, they are also continuing to treat themselves to small indulgences like chocolate and cheese. These are some of the findings presented in “Today’s Specialty Food Consumer 2009,” the NASFT’s annual report on consumer spending habits and trends.  (The research was conducted in July 2009 by Mintel International and Greenfield Online based on a survey of 1,500 adults aged 18 and older.)

There can be no doubt, however, that the slow economy across Canada and America has clearly impacted the $65 billion specialty food industry. According to new research from the National Association for the Specialty Food Trade, Inc., 57 percent of specialty food consumers say they have cut back or changed their spending over the past year, and 52 percent said they will continue to do so in the next year.  Nearly half of all Canadians and Americans purchase specialty foods, but numbers declined in the past year. In 2009, 46 percent of consumers said they purchased specialty foods within the past six months.

Many of the survey respondents indicated that they have reduced their spending on specialty foods due to job losses and / or pay cuts.  Interestingly, however, they still look to gourmet foods for entertaining, and for gifts. They also indicated that their reluctance to buy specialty foods is temporary and that they are eager to keep these foods as part of their daily food consumption patterns. Overall, an estimated 155 million North American consumers are purchasing specialty food on a regular or quasi-regular basis.

Q4 Holiday Sales Still Critical To Industry Success

Fourth quarter sales have always been absolutely critical to our own company’s growth and ongoing success.  We have always found that regardless of how slow the economy is, people still have to eat and they still want to have some small indulgences.  By enjoying some gourmet foods, they can achieve both.  They may delay purchasing a new car or going on an expensive holiday, bu they still want some “small reward” for their daily travails.  In the report, Ron Tanner, Vice President, Communications and Education for the NASFT, confirms what our own findings at our company, www.epicureanfoods.com indicate.

“With the holidays approaching, specialty foods are in a good position to attract discerning consumers who are looking for new gift ideas and distinctive foods and drinks to share with guests.”

New Opportunities for Gourmet Food Companies

This increase in eating at home creates a unique opportunity for specialty food retailers and manufacturers such as our company, www.epicureanfoods.com. For example, the NASFT survey indicates that approximately 82 percent of gourmet food consumers indicate that they are cooking more often at home. As well, those specialty food purchasers with above-average incomes are more likely to give specialty foods as gifts and to keep on hand at home for unexpected guests.  Interestingly, those specialty food purchasers with lower incomes utilize gourmet foods to impress their friends and families.

Coffee, Cheese, Chocolate & Olive Oil Tops for Gourmet Food Purchases

Again, our own experience at Epicurean Foods is consistent with many of the findings of this highly regarded Association. Coffee, cheese, chocolate and olive oil are among the most popular product categories for specialty food purchasers (both for their own consumption and for gifts for others.)

Here are some of the most interesting findings of the study:

• Gourmet food consumers spend $111 per week on food on average.
• Individuals aged 18 – 34 are most likely to purchase specialty foods.
• 19 percent of specialty food consumers buy specialty food online and this channel is growing.
• The Food Network is by far the most popular cooking show destination, and is viewed by approximately 90 percent of gourmet food purchasers.
• Organic foods have the greatest appeal to consumers aged 35 to 44.
• Women are spending 7% more on weekly gourmet food purchases than in 2007; men are spending about 7 % less.

It is with these interesting facts in mind that we will continue to grow our business by selecting only those products that we believe are excellent value and that have above-average taste profiles.  As always, however, we welcome comments and suggestions on how we can better serve our customers.

Greg Sprout, Co-Founder,

www.epicurean foods.com

Gourmet Food Industry Filled With Passionate People

One of the first things that I noticed when we started our company, www.epicureanfoods.com, way back in 1993, was the passion that many of the company founders and executives have for their companies, their products and the gourmet food industry in general.  This is a genuine passion that quite honestly cannot be “faked“.  One either has it or not.  If you are employed in the gourmet and specialty food business and have a passion for it, going to work every morning is really not a huge chore.  Rather, it is usually a “labor of love” that feels more like a hobby or favorite pastime than a source of income.  If you don’t have it, working in this industry is simply a job, like virtually any other.  One of the best aspects of this industry is the opportunity to work with true specialty food professionals - people who really love what they are doing and share that with everyone they meet.

Cobblestone Kitchens’ Passion for Excellence

Since the late 1990’s, when we first met Kim & Peter Reid, (the husband-and-wife team owners of the fabulously successful Cobblestone Kitchens), we have been impressed with their passion for excellence for all aspects of the company.  Like many of the other husband and wife teams whom we have met in our industry, Kim and Peter have complementary skills that have enabled them to grow their company into an amazing success story.  (Since the early 1990’s, the Toronto-based Cobblestone Kitchens has produced an extensive array of cupcake mixes, cocktail mix kits, cocktail rim trims, gourmet hot cocoa mixes and scone mixes.) They are both exceptionally intelligent and insightful people who are able to assess and overcome the ongoing difficulties that arise from operating a gourmet food company.

“Good Enough” Just Doesn’t Cut it at Cobblestone Kitchens

Over the years, we have watched many other companies that apparently felt comfortable “cutting corners” wherever necessary.  Gross profit margins and bottom line results seemed to be more important than producing a quality product.  This is certainly not the case with either Kim or Peter.  Because they such a “passion” for their business and their products, they are completely focused on producing products that exceed their customers’ expectations every time.  The short-term benefits of cutting corners to save profits never outweigh the long-term benefits of expanding their loyal customer base.  Stated simply, “Good enough doesn’t cut it” at Cobblestone Kitchens.

A “Passion for Food Excellence” Can Sometimes Be Expensive

I have come to understand and respect Kim & Peter’s true commitment to food excellence more and more as we continue to do increased business together.  I have also come to understand that sometimes, this passion for food excellence can be quite expensive…

(Without revealing anything that was told to me in confidence), Peter recently shared with me that they were destroying the equivalent of a truckload of packaging materials that had become obsolete, due to some FDA nutritional labeling requirement changes.   The amount of money involved was significant and would certainly impact their own “bottom line” for the year.  Rather than attempting to sell the products with (the admittedly minor) labeling deficiencies in their labels, they opted to not use them.  They put the health and well-being of their customers (who rely on the accuracy of the nutritional label panel) ahead of profit maximization.  Only those company founders with such a deep-rooted “passion for food excellence” would behave in such a manner.

We Are Fortunate To Have Cobblestone Kitchens As A Partner

It is reassuring for us, as purveyors of some of the world’s finest gourmet and specialty foods, to have a supplier / partner as dedicated to excellence as Kim & Peter Reid of Cobblestone Kitchens are.  It is with this knowledge that we can continue to confidently offer their products to our discerning customers across Canada and America.  We all know of and have dealt with companies where “good enough” is the daily norm.  We are very fortunate to have Cobblestone Kitchens as a supplier who shares our own “passion for food excellence”…

Greg Sprout, Co-Founder,

www.epicureanfoods.com

I have just finished reviewing a report tabled by the National Retail Federation which is projecting that 2009 US Holiday Sales will decline to $437.6 billion, a one percent decrease from 2008 levels.  This is a reasonably significant drop from the average 3.4% annual growth rate (year-over-year) of the past 10 years, but not as steep a decline as the 3.4% drop experienced last year or the 3.0 average drop for 2009 to-date.

I would tend to agree with NRF Chief Economist Rosalind Wells, who stated:

“As the global economy continues to recover from the worst economic crisis most retailers have ever seen, consumers will focus primarily on practical gifts and shop on a budget this holiday season”

As I mentioned in my blog recently, this macro trend is consistent with what we have been seeing as we analyze our sales patterns of the past few weeks and months.  Consumers everywhere are becoming increasingly pragmatic in how they purchase everything, gourmet foods being no exception.  Long gone are the days of “conspicuous consumption”, where it seemed like it was more important to be seen consuming luxury items than to actually be enjoying and appreciating them.

We sensed this trend of “consumer pragmatism” several months ago and began trying to source what we believe are very good value, practical gourmet food gifts. Such gifts often are an ideal solution for those  “hard-to-buy-for” people we all have on our Christmas Shopping Lists.  Specialty teas, gourmet chocolates, chocolate truffles and even high-end extra virgin olive oils can all be appropriate Holiday Gifts and are often very well received.

While there are some encouraging signs that the economy has begun to improve slightly (such as higher-than-forecast housing sales in August and a steady, upward trend in the stock market), ongoing consumer uncertainty about their own job security and housing values will definitely weigh the market down this holiday season.   This can only translate into a good buying opportunity for savvy consumers as retailers everywhere offer ever-increasingly aggressive prices.

Once again, the savings that can be found on our company’s website, www.epicureanfoods.com, are indicative of this much larger trend.  We have “sharpened our proverbial pencil” to try to cater to our value-seeking, practical customers.  Our own experience this year appears to be consistent with many other vendors, according to NRF President and CEO Tracy Mullin, who was quoted in the report as follows:

“Retailers’ focus on the holiday season has been razor-sharp with companies cutting back as much as possible on operating costs in order to pass along aggressive savings and promotions to customers.”

Like so many other gourmet food producers, we have been forced to make rather drastic operating cuts in order to be able to pass these aggressive prices along to our customers.  We are also working with our suppliers to try to get the best possible prices so that we can pass these savings on to our customers.  In summary, it all adds up to be a really great time to be a gourmet and specialty food consumer…

Greg Sprout, Co-Founder,

www.epicureanfoods.com

The entire report can be viewed at www.nrf.com/holidays

Price Not The Biggest Factor In Buying Decision

I read with great interest a recent report done by The Hartman Group (www.hartman-group.com) that indicates that contrary to what many marketers in the gourmet food industry would intuitively believe, price is not the most important factor when purchasing gourmet foods.  In fact,  as part of its study, “The New Value Paradigm: Theatrics of Thrift,” the Bellevue, Wash.-based market research company asked consumers to rank 25 different statements about gourmet food products.  “It works well/tastes good,” came in No. 1,  followed by concerns about waste, such as “Will this product actually be consumed in its entirety by my family?”  Interestingly enough,  “Price” only came ins the sixth most important purchasing criterion.

While a great deal has been written about how  consumers are “watching their pennies” in this economic downturn, it does not necessarily mean that they are willing to compromise quality and / or value for a lower price.  Most consumers of specialty foods would tend to agree that a purchase with a great (low) price that ultimately turns out to be disappointing when it is served is really not a deal at all.

This Isn’t Really A Revelation When You Think About It

Quite honestly, this is not really news to me.  It only stands to reason that a product whose primary feature is a low price point (at the expense of everything else) is likely not a “good value” proposition.  If you decide to purchase a lesser-priced gourmet food, only to get home and be disappointed with its taste profile, you’ll likely regret ever buying it in the first place.   Such a purchase would certainly not qualify as “good value” under any definition.

“Value” is a Balance of Price and Relative Quality

One of the factors on which we base our decision to carry a product or not is its price - quality ratio.  If an item’s cost is comparatively low vis-a-vis similar quality items, we are inclined to consider it for our clients, as it represents excellent value.  Conversely, the if price of a given item is high relative to other competitive offerings available in the market, we are unlikely to add it to our ever-growing portfolio of gourmet foods.  Obviously, there are a myriad of other factors that we consider when listing any new gourmet foods, but price is quite far down the list.

“Good Value” Doesn’t Necessarily Mean “Inexpensive”

Some of the more expensive items that we carry are “excellent value” but are certainly not the least expensive products available in their category.  Two examples of this are the Prospero line of gourmet Salsas and the pasta culinario line of wine-based, gourmet pastas and pasta sauces. Neither of these would be considered inexpensive (they are in the mid-to-high price range) but we have learned over the years that our customers are not necessarily looking for the least expensive alternative.  The old adage of  “you get what you pay for” is true for most products and gourmet foods are no exception.

No Plans To Change Our Product Selection Process Due To Economy

While there can be no doubt that consumers everywhere are spending their hard-earned money very carefully, even this recession, our Sales patterns show us that our customers want value for their money above all else.   The N.A.S.F.T. (National Association for the Specialty Food Trade, www.specialtyfood.com) defines gourmet and specialty foods in the following manner:

“Specialty food products shall mean foods, beverages or confections meant for human use that are of the highest grade, style and/or quality in their category. Their specialty nature derives from a combination of some or all of the following qualities: their uniqueness, exotic origin, particular processing, design, limited supply, unusual application or use, extraordinary packaging or channel of distribution/sale, the common denominator of which is their unusually high quality.”

You will note that the price of  specialty foods is not even mentioned in this description.  Generally speaking, our gourmet food clients who are seeking specialty items (such as pasta sauces and salsas) want excellent quality above all else.  The value proposition, however, remains a very important influence in the buying decision.

Greg Sprout, Co-Founder,

www.epicureanfoods.com

The Recent Downturn May Be Blessing in Disguise

Like virtually all companies in almost every industry on the planet, gourmet food manufacturers have been hit hard by the ongoing downturn in the economy.  Generally sluggish sales across all channels have been exacerbated by the mass delisting of premium quality gourmet food products by many upscale grocers.   While these “de-lists” are always a shock to any gourmet food company’s top and bottom-lines, once the initial shock has passed, it presents an opportunity for specialty food producers to “get back to their roots”.  (At Epicurean Foods, we feel qualified to discuss this growing trend because we have first-hand experience with it.  We recently suffered de-listing of all of the products that we had with two of the county’s leading upscale grocery stores.)

Many Grocery Stores are Struggling To Survive

The grocery store chains are not immune to the downturn in the economy any more than virtually every other type of business (in or out of the food industry.)  As behemoths such as Wal-Mart, Costco, Sam’s Club and Target and others continue to expand their presence in the grocery business, traditional grocery stores are forced to operate in an ever-increasingly competitive environment.

Previously (i.e. when the economy was stronger), this competitive environment meant that upscale grocers tried to distinguish themselves from their competition by offering increased product selection and superior service, among other things.  Seafood counters, in-store specialty bakeries, whole international foods sections and broad category offerings of “hard-to-find” gourmet and specialty foods had become the norm for grocery store chains attempting to attract upscale consumers to their store.   (For example, upscale lines like our Small Pleasures Teas, pasta culinario pastas and pasta sauces, Windermere Herb Farm Dip Mixes, Rubbit On! Spice Rubs and Regan Ridge Bread Dippers were all available as a premium quality alternative to the national brands.)  The prevailing logic was that every grocery store carries bread and milk and eggs.  That was a given.  To attract the highly sought-after upscale “yuppie” consumer, there needed to be another “draw” to the store.  The extra cost of offering the convenience of enabling these customers to purchase their gourmet and specialty foods when they did their regular weekly grocery shopping was a price that many upscale grocers were willing to pay.

Back to the Basics

The ongoing downturn in the economy is causing grocers to “get back to the basics”, where all unnecessary costs are being eliminated.  The extra costs of offering the slower-moving gourmet and specialty items have been deemed as unnecessary.  As a result, product selection has been severely reduced, if not eliminated entirely, by many grocers across North America.  In short, grocery stores are focusing exclusively on selling groceries at the cheapest possible price.  There is little emphasis on gourmet.

While the upscale grocery channel was never a central focus of our business strategy, it has now been virtually eliminated as a sales channel.  However, once this new reality was fully processed by us, it became increasingly evident that in a Web 2.0 world, the traditional sales channels that we had been using since we started our company in 1993 have been steadily decreasing in importance to us.  In summary, we have been transitioning from being “Epicurean Foods International Inc.” to “www.epicureanfoods.com” for the past few years anyways.  This latest industry-wide grocery-store product rationalization is just the next step in the transition.

“It’s Not A Problem, It’s An Opportunity”

While it may seem a bit trite to state, this recent industry-wide development is not really a problem for us and for many other resourceful gourmet food companies across Canada and America.  Regardless of what the economy does or what decisions grocers make, the gourmet food business continues to grow steadily.  Upscale consumers everywhere are demanding different, interesting and unique specialties that add “flavor” (if you’ll pardon the pun) to their lives.  Increasingly, the Internet is the channel in which they find these increasingly hard-to-find items.  Since 1998 when we first began offering our gourmet foods online through our website, www.epicureanfoods.com, it has steadily grown to become our primary sales channel.

Greg Sprout, Co-Founder,

www.epicureanfoods.com

Cocooning - A 1980’s Trend That Continues Today

In the 1980’s, celebrated futurist, Faith Popcorn, coined the word “cocooning” in her now famous book, The Popcorn Report, to describe the widespread trend of people spending more time in their homes.  She correctly predicted that with the changing demographics and the uncertain economic times experienced in that tumultuous decade, many people would curtail their restaurant dining, exotic holidaying and other outside-the-home activities in favor of family activities that could be conducted at home.

There were many implications of this far-reaching trend, including a new housing and home renovation boom (that lasted until only recently, when the most recent economic recession took hold.)  As well, home entertainment, with wide-screen televisions and surround-sound, became a central part of many households and remains very popular today.  The home renovation boom gave rise to the “weekend warrior”, that brave breed of men (and, increasingly,  women) who wanted to complete at least some of their home improvements themselves.  The Garden Center and Landscaping industries also thrived, as legions of suburbanites wanted to increase their quality of life both inside and outside their homes by improving its aesthetics.

There were many other examples of shifts in consumer demand that also contributed to this trend.  The result, however, is that people across North America have become much more interested in improving the quality of their home lives.  Most futurists and demographers feel that there is no credible reason to believe that this trend will end anytime soon.

Gourmet Home Cooking Grew Rapidly in Popularity

In addition to the industries and past-times noted above, gourmet cooking began to grow in popularity during this time, with the advent of television celebrity chefs such as Emeril Lagasse, Bobby Flay, Rachael Ray, Martha Stewart and many others.  Increasingly, both men and women were anxious to use their newly renovated designer kitchens and to employ the cooking techniques that they had seen on the Food Channel. For many people, gourmet food became a central part of their daily lives, their social network and their hobbies.  (This cocooning trend continues today and in fact, appears to be growing even faster, with the recent severe downturn in the world economy.)  Stated simply, people are searching for ways to reduce costs, but simultaneously, return to more traditional family values.  By cooking more gourmet foods at home, both of these goals can be achieved.

Gourmet Doesn’t Need to be Difficult!

One of the most common questions about the 1,000’s of gourmet foods that we offer our customers at www.epicureanfoods.com is simply “How can I prepare gourmet foods without spending hours in the kitchen?”  We’ve learned over the past 16 years of working in the gourmet food industry that while people increasingly love to cook and they are definitely searching for a simpler lifestyle (i.e. they are “cocooning”), they also want simple solutions to achieve these goals.  Most people (especially busy Moms!) are not interested in simply replacing the stresses of the “outside world” with new stresses of working for several hours in the kitchen preparing “gourmet meals” for their families and / or friends!  In essence, they don’t want just gourmet, they want “gourmet solutions.”

Even Pasta Can Become “Gourmet” With Almost No Extra Effort

One of the simplest examples that I can provide to illustrate this point of how people today want “gourmet solutions” is a line of pastas and pasta sauces that we’ve created called pasta culinario. (There are four pasta sauces that we have created that turn the everyday into gourmet.  The sauces are all wine-based.  That is, we use different types of wine in each sauce to “marry” with the other more traditional ingredients.)

One of the most popular of these pasta sauces is our Roasted Portobello Mushroom Pasta Sauce With Pinot Noir Wine. The French have an interesting expression for describing how a wine’s taste is indicative of where it was produced.  They call it “le gout de terroir” or literally translated, “the taste of the land“.  Pinot Noir is a wine that enthusiasts will often describe as “having a barn-yard nose”.  (This simply means that the wine itself has an “earthy” aroma and bouquet, reminiscent of freshly turned topsoil.)  Similarly, portobello mushrooms have an earthy aroma.  When the “earthy” taste of the Pinot Noir wine is combined with the “earthy” taste of the portobello mushrooms. a wonderfully unique taste is created.  By simply using a “ready-to-heat-and-serve” jar of gourmet pasta sauce, everyday pasta meals can instantly be enhanced.  When combined with one of our gourmet pastas, a restaurant quality meal can be created in just a few minutes, with almost no “muss and fuss”.  It’s an ideal solution for today’s busy lifestyle that more people are discovering every day.

Many “Gourmet Solutions” Are Available & More Are Coming Every Day!

In my upcoming blog entries, I plan to expand further upon this concept of “gourmet solutions“.  There are so many wonderful gourmet foods that are now available that can make dining a simple, yet elegant and thoroughly enjoyable affair.  More fabulous specialty and gourmet food products are being added every day by producers around the world and it is Phyllis’ and my challenge to continue to discover them and to bring them to our discerning customers!

Greg Sprout,

Co-Founder, www.epicureanfoods.com