Spice Up the Category

A perception that sauces and marinades carry with them some not-so-healthful attributes is tamping down growth expectations in the category. According to global market research firm Mintel in its December 2014 “Cooking Sauces, Marinades and Spices — US” report, the category is expected to grow slowly in the coming years. Dollar sales are expected to increase only about 8.3 percent from 2014 through 2019, taking the category from $9.6 billion to $10.4 billion in sales.

However, retailers will find plenty of opportunities to grow sales with products that appeal to changing consumer tastes.

Kick it up

Mintel reports that 45 percent of sauce and marinade users say they’re interested in products that strengthen and intensify flavor — and that make flavor more complex. It reports, too, that 42 percent see sauces and 44 percent see marinades as good for customizing foods to their liking. Also, 37 percent say sauces and 36 percent say marinades are useful for trying new flavors.

Jeanne Meeder, director of industrial and consumer products research and development with Wixon Inc., a seasoning and flavor systems company in St. Francis, Wis., sees the same interest. She says she receives calls for ethnic flavors and regional U.S. styles — from Memphis and Kansas City barbecue sauces to Carolina shrimp boil blends.

“If it’s hot and spicy, it’s on trend,” she says. “We’re getting more requests for specific Indian cuisine and regional Chinese cuisines. We’re seeing things like spicy Moroccan.”

Meeder also notes that if a retailer puts sriracha sauce — a spicy Thai chili sauce — in a sauce or marinade, then it will to fly off the shelf. Additionally, she suggests incorporating Greek yogurt into products and playing up the types of chili peppers used in sauces, particularly ancho and habanero, as consumers are looking for more than just jalapeño.

Wendy Kado, regional manager at Silver Spring Foods Inc., Eau Claire, Wis., is also taking more calls from customers wanting Asian, Hispanic and Latin flavor profiles. Specifically, she is getting requests for gochujang, a Korean chili pepper and fermented soy paste, and harissa, a Tunisian hot chili pepper paste.

And Agron Kosova, owner of Fine Italian Foods Inc., Naperville, Ill., says he’s seeing a boost in pesto products, which exhibit their own bold flavors. He attributes the interest to better consumer knowledge from the abundance of food information available on television, in magazines and on the Internet.

Make your claim

Even if a sauce or marinade lays claim to a bold flavor, it still must overcome the perception that items in the middle of the store are chock full of sodium, sugar and preservatives. Consumers are seeking out more healthful foods, and they’re taking a hard look at labels.

According to a survey from Mintel, 43 percent of people would choose one brand of cooking sauce, marinade, dressing or seasoning mix over another if it was labeled “all natural.” The same goes for claims of “low/no sodium” (38 percent), “no additives or preservatives” (37 percent) “and low/no fat” (30 percent).

To better appease those seeking cleaner ingredient labels, Meeder says Wixon is replacing a series of acids — ones with names unintelligible to most shoppers — with dry vinegar powder.

“It’s easier for consumers to understand,” Meeder said.

She also notes that her company is looking to replace EDTA, a preservative, with vitamin E, which can serve the same purpose.

Kado says store brand could reap big rewards in the better-for-you area by working with suppliers to formulate products that meet demands for more healthful items. Specifically, younger shoppers and those with children are more likely than older shoppers to be motivated to purchase based on claims of a product being all natural, organic or gluten-free. Those in the baby boomer generation and older are more likely to look for products that make low/no sodium, low/no fat and other claims that address age-related diseases and conditions.

Make them easy to use, find

In addition to wanting flavorful, healthful products, time-starved consumers want sauces and marinades that are easy to use. Sauces that cut cooking time and jazz up a meal are lifesavers for this group of people.

Kado suggests easy-to-seal pouches and environmentally friendly containers that can be recycled to appeal to this demographic. These pouches also store better in cramped cupboards or on packed shelves.

In terms of merchandising, sauces and marinades specifically lend themselves to cross-promotional displays due to their need to be paired with some other product — meat, fish, noodles, produce, etc.

“Seafood departments should always have sauces around, as well as meat and chip displays,” says Jan Cichon, retail sales manager at Branded Sauces, Denver.

Do offer own-brand sauces and marinades with clean labels.

Don’t underestimate the popularity of spicy sauces and marinades.

Do consider packing sauces in pouches to appeal to time-starved cooks.

Don’t forget to cross-merchandise sauces and marinades in other departments.