DELI FEB-MAR 2020

DELI BUSINESS MARKETING MERCHANDISING MANAGEMENT PROCUREMENT FEB/MAR 2020

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PROFITING FROM DELI

PREPARED FOODS

Also Inside OLIVES PIZZA ConsumerResearch Roquefortcheese CHIMAY

2 DELI BUSINESS FEB/MAR 2020

Contents FEB/MAR ‘20 • VOL.25/NO.1

MERCHANDISING REVIEW A Secret Deli Weapon.............................. 18 Olive varieties take deli offerings up a notch

PREPARED FOOD A Piece of the Pie �������������������������������������21 With quality at the forefront, pizza gains a bigger footing in the deli

FEATURE Catering to Food-Centric Life ������������������26 Unlocking the potential of catering

COVER STORY 12 Profiting from deli prepared foods

COMMENTARIES EDITOR’S NOTES ��������������������������������������������������������������������� 8 PUBLISHER’S INSIGHTS The Vegetarian Deli ����������������������������������� 10

18 CHEESE CORNER

IN EVERY ISSUE Deli Watch ������������������������������������������������������������������ 6

A Roquefort Revolution ���������������������������29 This French sheep’s milk blue has an esteemed history

Exploring Belgium’s Chimay ��������������������33

Information Showcase ������������������������������������������������ 38

This washed rind cheese is steeped in tradition

Blast From The Past �������������������������������������������������� 38

VOICE OF THE INDUSTRY Private Label ��������������������������������������������36

DELI BUSINESS (ISSN 1088-7059) is published by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425 POSTMASTER: Send address changes to Deli Business, P.O. Box 810217, Boca Raton, FL 33481-0217 FEB/MAR 2020 DELI BUSINESS 3

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curement

PROCUREMENT

DELI BUSINESS MARKETING MERCHANDISING MANAGEMENT PROCUREMENT

PRESIDENT & EDITOR-IN-CHIEF james e. prevor jprevor@phoenixmedianet.com PUBLISHING DIRECTOR kenneth l. whitacre kwhitacre@phoenixmedianet.com

Application Period Open for IDDBA Scholarship

PUBLISHER/EDITORIAL DIRECTOR lee smith

lsmith@phoenixmedianet.com ASSOCIATE PUBLISHER mark gold

mgold@phoenixmedianet.com EXECUTIVE EDITOR ellen koteff

ekoteff@phoenixmedianet.com MANAGING EDITOR lisa white

lwhite@phoenixmedianet.com PRODUCTION DIRECTOR diana levine

dlevine@phoenixmedianet.com ART DIRECTOR jackie tucker

jtucker@phoenixmedianet.com PRODUCTION DEPARTMENT freddy pulido

RESEARCH DIRECTOR sharon olson

CONTRIBUTING EDITORS carol bareuther hannah howard bob johnson linni kral keith loria emma young send insertion orders, payments, press releases, photos, letters to the editor, etc., to: deli business

p.o. box 810217, boca raton, fl 33481-0217 phone: 561-994-1118

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PHOENIX MEDIA NETWORK, INC. chairman of the board james e. prevor

The Madison, WI-based International Dairy Deli Bakery Association’s (IDDBA) Scholarship for Growing the Future is an opportunity offered to employees of member companies for education support. IDDBA recognizes that education is vital to the evolution of the industry. Companies that invest in the advancement of their employees also help to transform their workforce and improve employee retention. Businesses can help prepare employees for the road ahead with the association’s Scholarship for Growing the Future, where recipients can receive up to $4,000 towards tuition annually.

“It’s all about feeding the young minds of our future with education and investing in the talent pool of our member companies and industry growth. IDDBA is committed to that growth and last year alone, we awarded more than $300,000 in scholarships to more than 200 college students,” said Whitney Atkins, IDDBA’s vice president of marketing.

This scholarship is a resource for students who are starting their professional journey or professionals building on past accomplishments and everyone in between. The application period closes April 1, 2020.

For more details and information about applying, visit https://www.iddba.org/professional-resources/scholarships-grants/scholarship-for-growing-the-future. Cultivate a learning community in, and take advantage of, this growth opportunity.

For questions or inquires, contact us at 608-310-5000 or scholarships@iddba.org.

executive vice president kenneth l. whitacre

senior vice president lee smith vice president editorial ellen koteff

COVER STORY Sandwiches

general counsel debra prevor trade show coordinator jackie lomonte deli business is published by

phoenix media network, inc. p.o. box

810425, 33481-0425 phone: 561-994-1118 fax: 561-994-1610 www.delibusiness.com entire contents © copyright 2020 boca raton, fl

phoenix media network, inc. all rights reserved.

printed in the u.s.a. publication agreement no.

COMING IN APRIL/MAY ISSUE

40047928

FEATURE Food Safety Guacamole MERCHANDISING REVIEWS Sandwich Condiments Pickles

PROCUREMENT STRATEGIES Packaging

PREPARED FOODS Pasta Breakfast

DELI MEATS Mortedella Artisan Salami

CHEESE CORNER Italian Piave American Blues

COMING IN JUNE/JULY

Deli Business will look at the 15th Annual People Awards SUBSCRIPTION & READER SERVICE INFO

If you would like to subscribe to Deli Business for the print and/or electronic version, please go to www.delibusiness.com and click on the “Subscribe” button. From there, you can subscribe to the print version of Deli Business or free of charge to the electronic version. In addition, you can read the electronic version and go directly to a company’s Web site through our special hot link feature. Best of all, you can download and print any article or advertisement you’d like.

4 DELI BUSINESS FEB/MAR 2020

FEB/MAR 2020 DELI BUSINESS 5

DELI WATCH TRANSITION

FRONTLINE INTERNATIONAL HIRES DIRECTOR OF SALES Frontline International, Cuyahoga Falls, OH, maker of solutions for cooking oil management in restaurants and commercial kitchens, has promoted Zack Palazzo to director of sales. Palazzo previously served as the company’s sales manager, a position he began in 2015. In his new role, Palazzo will oversee a range of initiatives focused on developing Frontline’s customer base, growing sales, and enhancing tools and training for the company’s sales force.

www.frontlineii.com

ANNOUNCEMENTS

NEW PRODUCTS

PLACON RECEIVES FOOD WORLDSTAR AWARD

BEAVER BRAND ANNOUNCES REBRAND

Placon, Madison, WI, was recently announced as the winner of three WorldStar awards, including a recognition for its HomeFresh Entrée line. The WorldStar awards are an annual award given by the World Packaging Organization and are the pre-eminent international award in packaging. WorldStar illustrates the continuous advancement of packaging design and technology to create a standard of packaging excellence.

Designed to stack neatly, to avoid tipping over and causing a mess for the end user, the HomeFresh Entrée packaging also features a leak resistant lid, vented or non-vented lid options and is microwavable.

Beaver Brand, Hillsboro, OR, has announced a rebranding that was two years in the making and spearheaded by brand strategist Craig Ostbo. The goal was to convey a look that was reflective of the history and business acumen of founder Rose Biggi and celebrated the specialty foods Hall of Fame palate of Gene Biggi, company chairman.

The new Beaver branded products include Grandma Rose’s 12-ounce Beaver Hot Cream Horseradish; 13-ounce Hall of Famer Gene’s: Beaver Sweet Hot Mustard; 13-ounce Beaver Honey Mustard; 13-ounce Beaver Cranberry Mustard; 12.5-ounce Beaver Deli Mustard; 4-ounce Beaver Extra Hot Prepared Horseradish; and 4-ounce Beaver Hot Cream Horseradish.

www.placon.com

GOAT CHEESE IN A DIP Vermont Creamery, Websterville, VT, is expanding its offerings in the category with the launch of Goat Cheese Dips. The new trio of Goat Cheese Dips are where bright, herby, vegetal flavors meet the mild freshness of creamy goat cheese, while boasting clean ingredient labels and sustainable packaging.

Available in Classic, Red Pepper & Lemon (sourced from Specialty Food Importer FOODMatch), and Garlic & Herb, this 5-ounce medley is perfect for game day grazing, after school snacking or easy entertaining.

www.vermontcreamery.com

www.beavertonfoods.com

NEW PRODUCTS

CREAMY SLICES DEBUT Belletoile, Dieue-sur-Meuse, France, recently launched all natural, semisoft Creamy Slices crafted following the cheesemaking techniques of Belletoile’s well-known soft-ripened cheese. The line skips the aging room and presses the curds, delivering a clean taste with a creamy texture, adding versatility to the brand’s range of cheeses made in France. Made with only three ingredients, including fresh cow’s milk delivered daily from neighboring dairies in France’s northeastern Lorraine region, the creamy cheese slices are sold in a 5.29ounce resealable package.

www.belletoile.us

HAND-RUBBED FONTINAS

20-YEAR CHEDDAR RE-RELEASED

THREE PIZZA PRODUCTS PREMIER

Schuman Cheese, Fairfield, NJ, has introduced seven new Fontinas from Cello that are hand-rubbed with vibrant spice blends from around the globe and naturally aged for over 60 days. These are geared for melting, snacking and adding to sandwiches.

The cheese also can be added to any cheese plate, pasta dish and particularly grilled cheese, quesadillas or paninis. Flavors include Tuscan; Harissa; Dijon & Herb; Creamy Dill; Bergamot & Hibiscus; Smoky Pepper; and Mayan Cocoa Coffee.

Hook’s Cheese Co., Mineral Point, WI, has released a limited run of its Cheddar aged 20 years for only the second time in its 50-year history. Half of all sales will go to the Dairy Innovation Hub, which provides funds for dairy research at the University of Wisconsin-Madison, Platteville River Falls.

Palermo Villa, Inc., Milwaukee, WI, has launched three new innovative lines within its portfolio of branded pizza products. Screamin’ Sicilian ‘ZaBrewski features a beer-infused crust with premium beer flavored ingredients. Connie’s Deep Dish provides all the flavors of Chicago with all-natural ingredients. Palermo’s Neighborhood Pizzeria includes a medium thickness crust with the nostalgia and flavor of a neighborhood pizzeria.

www.schumancheese.com

www.hookscheese.com

www.palermovillainc.com

DELI WATCH is a regular feature of Deli Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Editor, Deli Business, P.O. Box 810217 • Boca Raton, FL 33481-0217 • Phone: 561-994-1118 • Fax: 561-994-1610 • Email: DeliBusiness@phoenixmedianet.com 6 DELI BUSINESS FEB/MAR 2020

FEB/MAR 2020 DELI BUSINESS 7

FROM THE EDITOR’S DESK

Re-Thinking Prepared Foods

I

By Jim Prevor

Editor-in-Chief

t is easy to think of reasons why prepared foods must be the focus of the deli. Primarily, prepared foods provide a retailer with the opportunity to offer unique, restaurant-quality food and to be a differentiating factor separate from the uniformity of grocery offerings.

Yet prepared foods also have a troubled history.

When Tesco came to America as Fresh & Easy, bringing with it the United Kingdom’s storied experience with prepared foods, and when Walmart launched its Marketside concept to test its ability to compete with a Fresh & Easy type concept, prepared foods were centerpieces of the offer. Yet, most of America does not offer the same consumer density that exists in the UK, and there is a much higher ratio of retail square footage per consumer than you find in the UK. So, both concepts suffered from the typical malaise that overcomes prepared food offered in the U.S. In their quest to make their stores destinations for shoppers, many retailers unveiled a large assortment of prepared foods. This is necessary, as the variety makes the store a mecca, attracting consumers who know they want ready-to-eat meals but don’t know what exactly they want. Or they have a family that has diverse tastes. So, whereas they can’t agree on restaurant take-out, because Mom wants Indian food, Dad wants Italian and Junior wants Chinese, etc., a retailer offering a robust assortment of prepared foods can provide a onestop shop for the family.

But if your store is not in Manhattan or a limited number of high-density urban markets, the low density typical in the U.S. creeps up and rears its head. So, what might be an incredible assortment of prepared foods starts experiencing enormous shrink, as the extensive selection of dishes diffuses purchases across the range.

What do retailers do? Well they start reducing the range of prepared food items. They eliminate the lowest selling dishes. At first, they try other items—a different Indian dish, some alternative Thai, maybe introduce an Ethiopian line. Eventually, though, under pressure from headquarters to reduce shrink, they concluded that no matter what they do, the 30th best-selling prepared food option will never sell very well and will always result in unacceptable shrink.

Although they speak in the abstract about offering differentiating products and recognize the value that one department can serve in attracting clients to the store, in operational reality retailers have low

8 DELI BUSINESS FEB/MAR 2020

tolerance for losing money. Tracked metrics, KPIs and compensation plans don’t always allow for a sophisticated analysis of how one department or offering is serving to attract and retain customers.

So, the inevitable begins. The retailer starts dropping items from the prepared food roster. With each item dropped, the prepared foods department becomes less attractive as a destination. Consumers are unhappy when Junior’s favorite dish is no longer available, customer counts decline, the department no longer meets that whole family demand, sales drop, the store cuts more items and … before you know it, the once impressive prepared foods menu is just lasagna.

There are other elements, of course. Many stores today proudly promote a kind of values-based offer. The stores will have large signs indicating how many organic or local items are available in the store today. Yet the prepared food section is often totally disjointed from these values.

If asked, stores will often say they use organic or local ingredients in their prepared foods “whenever possible,” but it turns out the translation of that term is “almost never.” It is not so much that it can’t be done. It is more that the cost is substantial, and the market for $20 servings of lasagna, even produced with all organic and local ingredients, is very small.

Yet despite all these challenges, it is imperative that retailers and manufacturers find new paths.

We have large numbers of restaurant options in America, buttressed now by many delivery services. Frozen food has improved tremendously in quality and can offer wide variety with less risk of shrink. So, consumers have no shortage of options.

Besides, with delivery services and big box stores becoming the place to purchase many bulky and parity products, it is in the deli/retail foodservice section that the store must find its niche in consumer shopping behavior.

This has to be built around the offering of unique dishes and flavor profiles that will make a store a must-shop venue. This will require culinary innovation and broad-minded executive leadership who understand that it is precisely the offering of unique dishes that will differentiate the store and attract the consumer. And part of the innovation required is to develop business models that credit items that attract the marginal consumer into the store with the value that shopper brings to a retailer.

DB

FEB/MAR 2020 DELI BUSINESS 9

PUBLISHER’S INSIGHT

The Vegetarian Deli

V

By Lee Smith Publisher

egan, vegetarian and all its variations are big news, and most deli departments are looking for products and prepared foods to satisfy the growing demand. Many people are looking to cut back on meat consumption for environmental reasons, health concerns or a love of animals that transcends killing for food.

Unfortunately, the information available is often based on Twitter and Facebook posts, which often are highly inaccurate, deliberately misleading and unscientific. Surprisingly, many people are apt to believe a friend’s post or a celebrity’s ranting than the CDC, a doctor or scientific study.

In the retail world, where the job is to provide customers with what they want, the argument is often nonsequential. Environmentally concerned customers often want locally grown but are satisfied with tomatoes from Mexico. Corn is often used for hearty vegan meals, yet corn is an environmentally destructive crop. Vegans often cry about the torture dairy cows endure but do not realize that high quality milk only comes from healthy cows in a stress-free environment. Small farms are touted as “better,” but consumers may not realize that small farms often fly under the radar and use inordinate amounts of pesticides while marketing “local.”

As communication becomes easier and news sources more questionable, there is often no mitigating information to inform consumers, and science is often too complicated for a sound bite.

While many retailers try to educate, more do not.

Let’s face it, local is not always better tasting or better for you; fresh has a limited shelf life unless extended with preservatives, additives or packaging. Vegetarianism will not save the environment and may not save animals, either. Butter is not bad for you and yogurt will not in and of itself extend your life.

The newest trend or fad, depending on who you talk to, is the “meatless burger.” Before I give my opinion, readers should know that I judge cheese competitions around the world. I am used to evaluating food for taste, texture and aromas. I was a vegetarian for about five years, and during that time, I often ate vegan. I cook. I now eat meat and enjoy it. I buy organic when I can and shop at local farm stands. Meals are often meatless. I love yogurt, kefir and great cheese. In other words, I am sympathetic to anyone who chooses to eat meatless and must endure the snarky comments, limited menu choices and a lack of dinner invitations.

Back to the meatless burgers. The first thing that

10 DELI BUSINESS FEB/MAR 2020

hit me was the long ingredients list and the realization that this was one of the most highly processed foods you can eat. Generally, I stay away from foods in that category. Second, not all the ingredients are environmentally friendly; coconut oil is one.

I tried it anyway.

I ordered it at an airport restaurant. I was eating by myself, so there was no undue influence. When it came to the table with a hearty helping of fries, it was topped with cheese, lettuce, tomato and onion on a seeded roll; I added my usual ketchup.

It struck me that there was no smell. When I order a burger, the first thing I notice is the wonderful grilled, meaty aroma. I took a big bite, and it was very juicy. Must say, I was surprised. The flavor was underwhelming but the toppings and the bun made it seem satisfying.

Next step was to take it apart. The “meat” had no aroma except for a faint chemical smell. It was juicy but was not hamburger juicy. It was sweet, but sugar sweet, and it didn’t have the mouthfeel of animal fat. It felt more like water than fat. It was very bland, except for salt.

Oddly, the juicy part seemed to dissipate quickly.

By the end, it seemed dry, and the texture was not like beef. It was, however, a good alternative if you wanted a burger but not meat. That has always seemed like an oxymoron to me. If you don’t want to eat beef, why eat an imitation? Eat a grilled cheese, a large salad with hummus, soup or quesadillas.

My conclusion was it was okay but not something I would buy again. It sat in my stomach like a rock, and there was a weird taste in my mouth that seemed to linger. My take is that this is a fad and sales will quickly grow as it fills the retail/restaurant pipelines. There will end up being a limited number of people who will want it. I can’t imagine a vegan really wanting to eat something that tastes and looks like meat. Is it an alternative—sure. Will I buy it again—no.

Does that mean that plant-based alternatives are also dead—no, no, no. However, there are many cultures and cuisines around that world that offer delicious plant-based alternatives. My favorite sandwich—sautéed mushrooms and onions in pita bread topped with hummus and chopped tomatoes.

It’s so much better than fake meat.

DB

FEB/MAR 2020 DELI BUSINESS 11

COVER STORY

Profiting From Deli Prepared Foods Here are the top trends for retailers looking to increase profits from prepared foods

BY CAROL BAREUTHER

D

eli prepared foods was once synonymous with sandwiches; or, more historically accurate circa the late 19th century in the U.S., pastrami on rye with a side of coleslaw. Today, selections are staggering. From choices behind the glass, in grab-and-go cases and on both hot and cold bars, customers in the retail deli’s prepared foods department now enjoy a ‘kid in a candy shop’ experience with a ‘have it your way’ buffet of favorites. It’s no wonder that deli prepared foods/retail foodservice last year totaled $12.5 billion, according to the Madison, WI-headquartered International Deli Dairy Bakery Association’s (IDDBA) What’s in Store 2020.

12 DELI BUSINESS FEB/MAR 2020

“The deli is one of the most dynamic departments in grocery,” says Nathan Roe, Sr., manager of deli strategy and customer marketing for Reser’s Fine Foods, based in Beaverton, OR. “Today’s consumers are seeking convenience and variety, as much as they are looking for quality and value.

Retailers nationwide are mixing up the status quo, from delis that are expanding to demonstrate a retailer’s prepared foods expertise, to departments that are moving to packaged-only, freeing up behind-theglass labor costs.”

First is the plant-based craze. This market is projected to reach $3.5 billion by 2026, up from $1.6 billion last year, according to the 2018-published report, Meat Substitutes Market, by Northbrook, IL-based MarketsandMarkets Inc., pushed by an interest in the health of both people and planet.

“There’s an across-the-board focus on plant-based protein today in prepared foods,” says Eric Richard, the IDDBA’s education coordinator. “Ways we may see this translated to the deli are, for example, jackfruit in place of pulled pork in sandTHREE TOP TRENDS wiches and use of ingredients like quinoa In prepared foods, three top trends are and chickpeas in salads and sides. The key driving consumer demand, manufacturer here is that interest in plant-based foods innovation and the latest deli offerings. isn’t only coming from vegans and vege-

FEB/MAR 2020 DELI BUSINESS 13

COVER STORY tarians, but also meat eaters who want to diversify their diet.”

Second is consumer interest in health and ‘clean’ eating, meaning purchasing foods with ingredient labels that read like grandma’s recipe rather than the contents of a chemistry lab. Sixty percent of consumers surveyed by the Irelandheadquartered, global food ingredients manufacturer, The Kerry Group, for its 2019 Clean Label Study were familiar with the term ‘clean label’, 44 percent said it was important to them and 76 percent of foodservice consumers viewed clean label foods as healthier than traditional foods.

“Consumers are more educated today than ever and are hyper aware of what foods they are consuming and the benefits of those foods,” says Aimee Tsakirellis, director of marketing for Cedar’s Mediterranean Foods, in Haverhill, MA. Additionally, she says, “consumers are very aware of product certifications, ingredients and how products are made.”

Third, there’s consumers’ desire for ‘something different’ often represented by globally inspired fare. Case in point is findings from the Washington, D.C.headquartered National Restaurant Association’s (NRA) What’s Hot Culinary Forecast 2020, where trending global ethnic cuisines are those from Asian islands (Indonesian, Malaysian, Filipino, Singaporean, etc.), South American,

WHO IS THE PREPARED FOODS CUSTOMER?

While younger shoppers lead the way, there is no age demographic that is not looking for convenient meal solutions, according to John Becker, senior director of marketing for the Sandridge Food Corp., in Medina, OH. “The type of food and flavor purchased changes by demographic, but not the need. Operators need a mix of traditional favorites, but don’t forget to offer more global flavors to attract younger shoppers.”

Overall, the deli prepared foods shopper is one that retailers want in-store, says Bob Sewall, executive vice president of sales and marketing for Blount Fine Foods, in Fall River, MA. “This is a shopper that comes in three to four times per week and typically spends 2.5 times more than the non-fresh food buyer. We call these folks ‘strivers’. Time is of the 14 DELI BUSINESS FEB/MAR 2020

Regional American (including Native American), Regional Chinese and Indian.

“We’re seeing more demand for unique products and flavor profiles. For example, miso and corn chowder when it comes to soups,” says Thomas Bross III, chairman and CEO of Winter Gardens Quality Foods, Inc., a New Oxford, PA-based prepared foods co-packer.

Corey Wilde, vice president of business development for Hissho Sushi, in Charlotte, NC, one of the largest providers of turnkey sushi bars to locations

essence to them; they want good food, and they go where they can.

Retail foodservice categories showing strong growth are: breakfast sandwiches (39 percent), egg roll applications (34 percent), chicken appetizers (16 percent), vegetable entrées (14 percent), hot sandwiches (11 percent), jalapeño popper appetizers (7 percent), pasta side dishes (5 percent) and pasta salads (2 percent), according to the Madison, WI-headquartered International Deli Dairy Bakery Association’s (IDDBA) What’s in Store 2020.

“In the future, deli prepared food programs will continue to evolve,” says Eric Richard, IDDBA’s education coordinator. I think we’ll start to see, especially in new builds, food hall concepts all under one roof. This evolution will position supermarkets as the place to go for all food needs.”

such as supermarkets, cafés and university dining, agrees and adds, “From our experience, shoppers want innovative, authentic flavors that are also fresh, healthy and satisfying options.”

WHAT’S HOT Deli prepared foods is a broad category that includes meal components, such as Entrées/Prepared Meats, Sandwiches, Sides and Soups.

1. ENTRÉES AND PREPARED MEATS. Representing nearly half (42.4 percent) of deli prepared foods/retail foodservice dollars, up 2.6 percent versus a year ago, this subcategory is among the most diverse.

“Operators are more than ever struggling with consistent execution at the store level. Scarcity of labor continues to top the list of operator issues, so our products are designed for easy preparation and serving. All our entrées are fully cooked and ready to serve, either in a hot bar or pre-packaged for grab-and-go meal sales,” says John Becker, senior director of marketing for the Sandridge Food Corp. in Medina, OH. Becker adds that the company’s best-selling entrée is slow cooked, sous vide pot roast. Sandridge has recently introduced sous vide pork chops.

Chicken is the number one animal protein when it comes to entrées, followed by seafood, pork, turkey and beef. Blount Foods has capitalized on this with two chicken- and two beef-based entrées that come in 4-pound heat-and-serve packs ideal for hot bar service. These are Chicken

COVER STORY & Broccoli Alfredo with Penne and Chicken with Noodles in a Marsala Wine Sauce, and Beef Stroganoff with Noodles, and Macaroni and Beef in Tomato Sauce.

“These offer a nice Italian cuisine flair, plus the sauces are essential to keeping the product moist and fresh on a hot bar,” says Bob Sewall, executive vice president of sales and marketing for Blount Fine Foods, in Fall River, MA. “One area I think we, and I mean manufacturers as well as deli operators, need to figure out is how to get information out to the hot bar customer. In traditional foodservice, there are written menus and wait staff that help describe the dishes offered.”

Turn a pack of ready-to-cook gourmet pasta into a lunch special, suggests Larry Montuori, vice president of sales for Nuovo Pasta Productions, Ltd. in Stratford, CT. “The Mediterranean diet is still trending, and deli operators can tap into this by offering three of our fresh pasta raviolis, which cook in two to three minutes, with customized toppings like pesto or basil, grape tomatoes and a drizzle of olive oil. It’s a great way to rotate bagged product on the shelf. There’s the cache of a freshly-pre-

pared made-to-order lunch, and instead of selling one bag of pasta for $6.99, operators sell three lunches for $4.99 each.”

Cheese-filled ravioli and tortellini are best sellers, Montuori says. Favorite variations include Portabella and Fontina Ravioli, organic spinach and Mozzarella Ravioli and Provolone Cheese and Prosciutto Tortellini.

“Seafood has been a real sleeper. No one knew it could sell. But our products, like Crab and Lobster and Shrimp and Lobster Ravioli are in demand,” says Montuori.

Seafood meets the plant-based trend in one of the latest offerings from Hissho Sushi. Last year, the company unveiled its Spicy Pepper Roll, which is made with a plant-based ‘tuna’—a roasted bell pepper. The company has also developed new innovative poke bowls and Dim Sum. “To help execute these new offerings, we’ve teamed up with retail partners like Giant Food Stores to provide sushi and appetizers in their new Heirloom Market in Philadelphia’s trendy Northern Liberties neighborhood. Not only is Hissho’s handcrafted sushi available to customers in the deli, but it’s also available in their unique tap room called ‘The Underground’, a low-

er-level game room that serves more than 40 craft beers plus wine, hard seltzers and kombucha,” explains Hissho Sushi’s Wilde.

Components, be it sous vide pot roast or sushi, that customers can build into a meal is key to merchandising the Entrées/ Prepared Meats segment of the prepared foods category.

Sushi and popular entrées, like Dim Sum, salads and poke bowls, are no longer reserved for special nights out at upscale restaurants but are components customers can now build a meal from in the deli, according to Wilde.

“The most successful product for us has been a line of pre-paired bulk meal kit components, where protein, sauce and starch components are all shipped in one case, so operators can easily execute hot or cold meals, with 100 percent yield. Research shows consumers, particularly younger generations, are interested in snacking as a concept, thus there appears to be potential for prepared meals positioned as more convenient and portable options,” says Sandridge’s Becker.

2. SANDWICHES. This deli staple is the fourth largest retail prepared foods

FEB/MAR 2020 DELI BUSINESS 15

COVER STORY

CREATIVE SALADS If you look in the deli prepared foods department at Wegmans Food Markets, a 100-plus store chain headquartered in Rochester, NY, you’ll notice that salad selections include staples like potato salad, macaroni and coleslaw. However, along with the traditional favorites are a Baked Potato Salad, Greek Pasta with Feta Salad and an Organic Five Grain Salad. Today, Wegmans and other forward-thinking retailers across the nation have discovered the secret selling recipe. That is, a cold salad offering that features products with trendy twists, ethnic flavors and better-for-you ingredients.

“We know 60 percent of annual salad sales in the deli are potato, macaroni and coleslaw. These are the shopping list favorites that drive customers to the case. Once there, they can see all the new flavors and ideally trade up,” says Carl Cappelli, senior vice president of sales and business development for Don’s Prepared Foods, based in Schwenksville, PA. Salads rank second to Entrées/Prepared Meats, representing 14.4 percent or 1.8 billion of the annual 12.5 billion in annual deli prepared foods/retail foodservice dollars, according to the Madison, WI-headquartered International Deli Dairy Bakery Association’s (IDDBA) What’s in Store 2020. More specifically, salad bars represent a quarter of category share (25.1 percent), followed by protein salads (24.8 percent), leaf salads (11.2 percent), potato salad (8.9 percent) and pasta rounds out the top five at 8.6 percent). Coleslaw is seventh at 5.2 percent and macaroni in ninth at 2.5 percent.

nationwide, with behind the glass and packaged versions,” says Nathan Roe, Sr., manager of deli strategy and customer marketing for Reser’s Fine Foods, based in Beaverton, OR. “A focus on a single herb or spice (e.g., dill, parsley, cilantro) or a primary ingredient, like deviled eggs, gives a quick cue to the consumer as to what to expect.”

Last year, Reser’s introduced Stonemill Kitchens Red Cabbage, Beets & Bacon Salad; and American Classics brand Carolina Gold Mustard Slaw and Nashville Hot Sweet Potato Salad.

ETHNIC FLAVORS

Two-thirds of consumers buy specialty/gourmet foods, with 55 percent trying new ethnic offerings, according to Looking Ahead to Gen Z: Demographic Patterns and Spending Trends, published in 2018 by Rockville, MD-headquartered PackagedFacts.com.

That said, in 2019, the Mediterranean diet was named the best diet overall for the third year in a row by U.S. News & World Report.

Salads such as tabbouleh and tzatziki appeal to a broad range of people because of the versatility of the products, the convenience of ready-made and the product health attributes and certifications, according to Aimee Tsakirellis, director of marketing for Cedar’s Mediterranean Foods in Haverhill, MA. “Tzatziki is also a great item for us. This product is an excellent substitute for creamy condiments and can be used in a range of recipes and applications.”

The company launched a new Mediterranean Hot Pepper & Garlic Tzatziki nationally in February. This is a new take on Cedar’s traditional Tzatziki. It TRENDY TWISTS has Aleppo Pepper and Harissa in it, Grandma’s Potato Salad continues to says Tsakirellis, with flavor profiles from lead the salad category sales for San- Mediterranean and Middle East. dridge Food Corp., according to John Becker, senior director of marketing. BETTER-FOR-YOU INGREDIENTS Whole grains and seafood are emergYet, the Medina, OH-headquartered company offers nearly two dozen potato ing as in-demand fixings. salads, such as such as Chunky Red Skin “We have a Midwest retail customer and German Potato Salad and Three that carries 18 to 20 grain and other Potato salads. salads on their cold bar, three of our “Within traditional product seg- grain salads in cups for grab-and-go ments, our recently launched Red and packages these salads in their meal Skin Potato Salad with Dill is in delis kits,” says Cappelli.

16 DELI BUSINESS FEB/MAR 2020

The company’s nearly two dozen different grain salads include a Mango Lime Quinoa, Farro with Peperonata, and a Curry Grain Salad with wheatberries, brown rice, couscous and barley.

Last year, Don’s launched its Artisan Deli line, which includes Classic Tuna Salad, Italian-Style Tuna Salad and a Seafood Salad with imitation crab.

These are sold in 10-ounce containers and 5-pound tubs.

“Seafood is really taking off as a new flavor trend, as today’s Millennials as well as health and wellness shoppers are looking for better-for-you options,” agrees Jim Gawronski, director of sales and marketing for Garden-Fresh Foods, Inc., in Milwaukee, WI. The company will introduce a new seafood line this spring, which will be shrimp based.

“Retailers typically change their sets twice a year, in the spring and in the fall, and typically switch out four to six SKUs for something new. Our new seafood salads are a great addition to spring sets,” Gawronski says.

Lower fat vinaigrette, rather than mayonnaise-based seafood salads, is a new offering for Simply Fresh Foods, in Buena Park, CA, which at the end of 2018 was purchased by Delphos, OH-headquartered Lakeview Farms. This includes a sesame ginger seafood salad, according to Greg Klein, chief marketing officer for Lakeview Farms.

TEMPTING TRIAL & MEAL MAKING

To encourage trial, and sales, of a new cold salad, the best way is to offer samples, according to Cappelli. Additionally, he says, “place a burst of in-store signage that signals the product as ‘new’, put it in the ad with a temporary price reduction and educate staff about the salad so they can actively push it.”

Employ salads as well as soups and sides to boost the deli prepared foods ring, suggests Bob Sewall, executive vice president of sales and marketing for Blount Fine Foods, in Fall River, MA. “Tie these products in, for example, with rotisserie chicken programs and as part of combo meals with other proteins, and you’ll sell more.”

COVER STORY segment, representing 13.6 percent of category dollars, after Entrées/Prepared Meats, Salads and Appetizers. The latest twist is in bread spreads. Good examples abound at Zingerman’s Deli in Ann Arbor, MI, which offers extras for customized sandwiches, such as hummus, avocado spread, cream cheese and pesto.

“The biggest news in the hummus category is its expansion into foodservice,” says John McGuckin, CEO at Tribe Mediterranean Foods, Inc., in Taunton, MA. “Panera just launched hummus as part of its grain bowl. Plus, hummus is being recognized as a healthier alternative to mayonnaise on flatbreads and sandwiches. Some delis are putting hummus behind the glass to capitalize on these new usage occasions. To help, we’ve also come out with a 5-pound foodservice bag of hummus with a nozzle on the end that maintains the integrity of the product without dirtying spoons.”

Savory bestsellers are classic, roasted red pepper and garlic, which collectively represent 60 percent of hummus category sales, McGuckin says.

Last fall, Santa Marie, CA-based

Curation Foods, came out with its Yucatan Foods’-brand 14-ounce squeeze pouch of restaurant-style and authentic flavor guacamole for use as a condiment on sandwiches, toast and burgers.

“Clean ingredients and trending flavors like super spicy are driving sales of guacamole, which is becoming more of a staple condiment,” says John Trang, associate marketing manager for Yucatan Foods.

3. SIDES. A small part of prepared foods revenues, at 3.3 percent of category dollars, and chef-driven innovation, especially in hot sides, may soon grow sales.

“Macaroni and cheese is a perfect example,” says Winter Gardens’ Bross. “It’s a classic comfort food and a high-volume item. Now we’re seeing interest in plus versions with lobster or onions or vegan. Some customers offer five to six proprietary versions of macaroni and cheese.”

White Cheddar Macaroni and Cheese leads the way in side dishes for the Sandridge Food Corp., and there are variations like Buffalo style.

Additions such as uncured bacon and hatch chilies are new from Blount Fine Foods. Reser’s Special Request Baked

Macaroni & Cheese is sold as a baked casserole-like side that, when cut in portioned squares, displays beautifully in the cold case or easily repacks with proteins in deli meals for grab-and-go.

Going one step beyond, Don’s Prepared Foods introduced new sides.

“These are clean–labeled, globally-inspired gourmet vegetarian sides that are influenced by flavors and spices from around the world,” says Carl Cappelli, senior vice president of sales and business development for the Schwenksville, PA-headquartered company.

The sides include Beets with Tahini, Braised Italian White Beans, Carrots and Chickpeas with Chermoula, Coconut Rice & Lentils, and Korean BBQ Green Beans as well as the newest Adobo Rice and Beans, Artichoke Romesco, Green Curry Lentils and Quinoa, Smoky Butter Beans, and Southwestern Black Eyes Peas.

Like the latest entrées/prepared meats and sandwich fixings, these sides embody the three top trends—plant-based, health and that ‘something different’—that is driving demand, innovation and sales of deli prepared foods today.

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FEB/MAR 2020 DELI BUSINESS 17

MERCHANDISING REVIEW

A Secret

Deli Weapon Olive varieties take deli offerings up a notch

O

BY HANNAH HOWARD

lives are easy to love. Their symphony of sweet, sour, salty, bitter and pungent flavors are uniquely complex, making them an essential ingredient for any food lover. Yet, just a few decades ago, your average shopper had a pretty narrow view of olives. Some were green, some were black, some were pitted and the best ones were pimento-stuffed, and that was that. They usually came in cans, or if they were fancy, in jars.

Today’s more food savvy consumers are hungry for a wider array of olives. From elaborate to antipasti and olive bars to packages marinated with citrus and spices, olives are sold and presented in increasingly creative ways. Global olive consumption has grown by about 179 percent over the past three decades, according to data from the International Olive Council., headquartered in Madrid, Spain.

“Olives continue to be an impactful and growing category for deli and specialty,” says Brandon Gross, vice president of marketing at New York City-based FOODMatch. “While many programs, ours included, have expanded and diversified into grab-and-go packaging formats, we are still seeing excitement and growth around the olive and antipasti bar. We attribute this to a few things—product innovation, the ability to customize and control portions and a desire to cook simple and healthful meals using unique, prepared ingredients.” As customers

18 DELI BUSINESS FEB/MAR 2020

MERCHANDISING REVIEW

Olives are incredibly versatile. Snacking is always a great option but olives also add a pop of briny flavor to salads, pizza, pasta and beyond. Green olives lend depth to chicken thighs, roasted with tomatoes and topped with Feta. become more educated and passionate Diet Month, but the Mediterranean way about ingredients, health and quality, olive of eating and thinking about food proves to sales benefit. be healthy all year long. The Mediterranean way of eating means enjoying mostly plantTradition Meets Innovation based foods, like fresh fruits and veggies, Olives are anything but new. In fact, whole grains, fish and nuts. It also means olive trees are some of the oldest trees ever using healthy, monounsaturated fats like harvested by humans, a practice that dates olive oil and whole olives, too. After all, back more than 8,000 years. In recent olive trees have been flourishing throughyears, there’s been an olive renaissance. out Greece since about 3,000 B.C. “Olive sales are definitely increasing,” says Jeffrey Siegel, CEO of Farm Ridge Good and Good for You Foods, headquartered in Islandia, NY. Olives are packed with healthy fats. Of “People are getting more sophisticated in the 1.5 grams of fat in a 15-gram serving their taste—their palates are getting more exploratory—and as they try new olives, often with charcuterie or antipasti, they really like what they discover.”

Traditionally, olives come from the Mediterranean. Today, olive production spans the globe; great wine regions and climates tend to be hospitable to olive trees, too. Most domestic olives come from California, and olives also thrive in Latin America and other subtropical zones.

“Consumers are loving blends from all parts of the world, like Tunisia, Morocco and Brazil,” says Siegel.

Olive trees grow quite slowly and also require meticulous cultivation. In exchange for that intensive investment, their longevity rewards many generations in the future.

They live long, long lives—some for as much as a millennium.

Olives are incredibly versatile. Snacking is always a great option but olives also add a pop of briny flavor to salads, pizza, pasta and beyond. Green olives lend depth to chicken thighs, roasted with tomatoes and topped with Feta. And Kalamata olives are perfect in pasta with rosemary, chickpeas and a generous glug of extra-virgin olive oil.

They can be ground into tapenades, sauces and spreads. They’re a great accompaniment to cheese and charcuterie platters.

May is International Mediterranean

of olives, more than 75 percent is monounsaturated. These healthy monounsaturated fatty acids are associated with decreased risk of heart disease, reduced risk of chronic disease, lower blood pressure and more far-reaching health benefits. These healthy fats may also aid in weight loss. Plus, they help consumers feel satisfied while being relatively low in calories.

Olives are rich in polyphenols, which fight oxidative stress and may protect against diseases and certain types of cancer. Olives are full of Vitamin E, a powerful antioxidant, which may help with skin and hair health and protect from neurological disorders. Plus, they’re rich in vitamin A, an antioxidant that's essential for protecting the cornea and keeping our eyes healthy.

Vitamin A may help prevent age-related eye problems like macular degeneration, cataracts and glaucoma.

Tariffs and Olive Sales A conflict with the European Union over aircraft carriers has led to a long list of proposed tariffs on goods from European countries. As of Oct. 18, 2019, imports of

FEB/MAR 2020 DELI BUSINESS 19

MERCHANDISING REVIEW certain types of Spanish and French olives received a 25 percent tariff. This especially impacted Spanish olives, which had already been hurt by an earlier round of tariffs imposed in 2018. (Spain’s southern Andalusia region is home to the world’s largest olive oil and olive industry.) Spanish producers are feeling the squeeze, and their businesses are struggling. At press time, olive imports from other countries in the EU and around the world are not affected,

but that could change at any time.

Understandably, fear of tariffs lingers.

They threaten to injure everyone along the supply chain, from importers and distributors to retailers and customers. The resulting price increases would make imported olives inaccessible to the general consumer. Retailers would no longer be able to stock these items, and shoppers would be unwilling or unable to foot the significantly higher price tag.

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FirstSource is accepting applications for fifteen high-volume retail buyers to attend Deli&Cheese 1on1. This is an opportunity to meet face-to-face for two and one-half days of networking and most importantly, a unique and time-saving alternative to sourcing.

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Olive bars, full of different colors of treats and unique finds, can be an enticing way to display olives and attract consumers but they’re not without their challenges.

Maintaining a well-kept olive bar requires a lot of store real estate and resources, like constant cleaning, rotation and supervision. The price in labor and attention can be steep. “We’re definitely seeing a push away from olive bars towards pre-packaged olives,” Farm Ridge’s Siegel explains.

He sees olive bars as most successful in busy, high-traffic stores.

Thinking Beyond the Olive Bar “For us, it’s less about identifying a most successful packaging format and more about ensuring we’re offering the right formats for all customers,” FOODMatch’s Gross weighs in. His goal is to meet the consumer where their comfort level is, whether that’s the olive bar, a prepacked cup, snack pack or glass jar. “Our job is to understand which products are most appropriate for their respective pack and understand the nuances in how each customer uses the product,” he explains. “At the end of the day, no matter what packaging format somebody purchases, our job is to give them consistent, delicious ingredients that spark joy and satisfaction.”

First and foremost, a high-quality product speaks for itself. “We want a shopper to look at our product and immediately make the connection to our mission, values and quality. And of course, layered on top of that is communicating simple and interesting ways to use the products in the kitchen,” Gross says. “Don’t just sell the olive…sell the joyful experience and memorable meal that the olive will be a part of.”

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PREPARED FOODS

A Piece of the Pie With quality at the forefront, pizza gains a bigger footing in the deli

BY LISA WHITE

FEB/MAR 2020 DELI BUSINESS 21

P R E PA R E D F O O D S or supermarket delis that focus on quality and trends, the ever-evolving pizza segment can be quite a lucrative venture.

Total revenue in the U.S. pizza industry is upwards of $47 billion, with annual growth on the rise, according to New York City-based IBISWorld.

“As more and more grocery retailers are looking to compete with fast food/fast casual restaurants, the deli department is starting to offer more hot food options for carryout or dining in,” says John Leonardo, senior director of marketing at Palermo Villa Inc., Milwaukee, WI. “Pizza, in many instances, is an anchor item within the deli/ prepared foods set.”

Today, retailers are selling pizza by the slice and whole pizzas that are baked and ready to be consumed at home or immediately at the store.

“Some retailers are making the pizzas from-scratch or nearly from-scratch behind the counter to provide more of a pizzeria experience for the consumer,” says Leonardo. “When labor costs become more of a focus, some retailers will offer fresh baked pizzas/slices that were made off-premise but baked in-store.”

Today’s Trends There are a number of new developments in the pizza segment, with foodservice trends influencing retail.

One prominent trend is in healthier products. “[We’re seeing an increase in] refrigerated bake at home pies, ready-made pizza sauces to use at home and cauliflower

22 DELI BUSINESS FEB/MAR 2020

crusts,” says Umberto Marconi, vice president, Pomì USA, Inc., Matawan, NJ. “There’s been progressive segmentation in flavors, cheese and toppings. Consumers are paying more attention to the quality of the ingredients and that is also contributing to the evolution of the flavor profiles.

Dietary restrictions and preferences are also impacting the segment, along with the rest of the food industry.”

In addition, premium ingredients are making more headway in retail channels, as consumers seek to purchase or recreate restaurant-style pizzas.

“We’ve had lots of requests for premium style take-and-bake pies, along the lines of what we’re baking,” says Brad Sterl, CEO/ president, Rustic Crust, Pittsfield, NH. “Unique and premium toppings are leading into vegetarian protein or imitation meat products. In years past, there has been more push back due to pricing sensitivity, but now this is less of a concern, as premium toppings and higher end ingredients are at the forefront.”

Jim Viti, vice president, sales and marketing, DeIorio Foods, Utica, NY, agrees.

“’Healthy Indulgence’ is a term I would use for product trending,” he says. “Consumers are looking to take flavor up a notch without the post-meal guilt. An example might include a plant-based broccoli or cauliflower thin crust topped with balsamic, prosciutto and arugula, enhancing flavor into each bite.”

While the focus in the past was on meal replacement and convenience, including easy prep, it is now more about innovative ingredients and taste.

Ethnic twists on this old favorite also are becoming more prevalent.

“Pizza toppings are becoming a bit more creative, with Mexican or Asian toppings,” says Mark Snyder, national foodservice sales manager, ItalCrust, Newton, MA. “Most deli pizza is either just cheese that customers can top themselves or take-andbake products.”

In addition to healthier toppings and crusts, a better overall nutritional profile is becoming more common with deli pizzas.

“The cleaner the label, the better,” says Justin Ring, director of sales for Schaumburg, IL-based Nation Pizza and

P R E PA R E D F O O D S

People are snacking more, taking a look at it as a snack before dinner rather than pizza as a meal solution,” says Enrico Piraino, president of Belmont, NCbased DePalo Foods. “In addition, flavor profiles seem to be getting stronger, with Buffalo chicken and Greek flavors.”

Foods. “All-natural ingredients, a vegetable crust and gluten free are three points where there is a market.”

Flatbread pizza also is an option more delis are incorporating, along with smaller pies or thinner crust pizzas that can be eaten as an appetizer or snack.

“People are snacking more, taking a look at it as a snack before dinner rather than pizza as a meal solution,” says Enrico Piraino, president of Belmont, NC-based DePalo Foods. “In addition, flavor profiles seem to be getting stronger, with Buffalo chicken and Greek flavors.”

Sauces are not just tomato based, with pesto and white sauces taking hold. added, are also great for home chefs; it’s easy to customize your experience while Pizza Products baking your pie at home.”

There are a number of products, from Rustic Crust will be launching plantingredients to whole pies, that retailers can based protein pizza toppings this year. incorporate into their departments.

“We see exciting momentum in the alternaPomì offers an authentic Italian pizza tive pizza segment by focusing on specialty sauce made from Italian fresh tomatoes items that are moving towards the mainthat comes in a 14-ounce BPA-free can. stream,” says Viti at DeIorio. “Examples of “We recently updated the recipe to products that service this category range make it more appealing for the evolving from the wildly popular cauliflower pizza consumer taste,” says Marconi. “Pomì‘s shells to the rapidly expanding snacking other products, from strained to chopped category with our broccoli cheddar breador finely chopped tomatoes, with no salt sticks. This alternative revolution has our

product development department focusing on new infusions and components, such as sweet potato and chickpea offerings, and vegan and certified organic pizza dough.”

Italcrust offers a 14-inch cheese pizza line for customer or deli retailers to customize themselves.

“The supermarket doesn’t want to buy 18 different flavors and carry more SKUs,” says Snyder. “Customers can utilize leftover ingredients already in the supermarket, such as arugula from the salad bar, veggies from the produce department, meats from the meat department, etc.”

FEB/MAR 2020 DELI BUSINESS 23

P R E PA R E D F O O D S

DePalo Foods offers pizza-related products, such as calzones, Stromboli and pinwheels as well as organic pizza dough.

Palermo Villa, Inc. has created a 14-inch deli edition of its Screamin’ Sicilian brand.

“It provides a premium experience that is more representative of what consumers would find in a pizzeria,” says Leonardo.

“This line contains higher quality ingredients, such as whole milk Mozzarella cheese, is abundantly topped, and is available in five varieties.”

Getting the Word Out Success in the pizza segment is dependent on creating a destination with appropriate marketing and merchandising.

“A chained/coordinated promotion where all the premium ingredients are promoted/sold together would help—dough, sauce, Mozzarella, extra virgin olive oil, fresh basil,” says Marconi at Pomì. “Having all the ingredients close to each other makes the shopping experience extremely convenient for the supermarket deli consumers.

Educating on the origin of the ingredients and offering healthy options also drives consumer attention.”

The deli area has traditionally been a consumer favorite for mealtime ideas and 24 DELI BUSINESS FEB/MAR 2020

P R E PA R E D F O O D S

The perception of fresh is key, especially with the stiff competition from foodservice and the frozen case. solutions, and pizza lends itself naturally to that concept.

“First and foremost, the area needs to be visually enticing,” says Viti at DeIorio.

“A typical consumer on the go may not know exactly what they want when they enter, but they’ll know it when they see it.

A good destination is designed to excite the senses—it pleasantly surprises on a regular basis. It doesn’t abandon the norm but it allows the consumer to step out of their comfort zone now and again to expand their palate.”

Pies can be marketed in service or selfserve cases.

“Putting a private label sticker on it to make it look freshly made that day is important,” says Snyder at Italcrust. “Pizza is popular and a food people want then they see it.”

The perception of fresh is key, especially

with the stiff competition from foodservice and the frozen case.

“There is opportunity in the deli if it’s done right,” says Ring at Nation Pizza.

“If a retailer can stand apart, instead of being a me-too, there are ways to make pizza look and taste different, and they can take advantage of the freedom to be creative.”

Piraino at DePalo Foods says the graband-go section is the most common place for pies to be sold in the deli.

“The foodservice side of pizza is about $38 billion, compared to retail at $6 billion, the latter including frozen pies,” says Piraino at DePalo Foods. “But not many items in the deli are as affordable to feed a family like pizza, and convenience also is a factor.”

Display and signage are key to driving the awareness in store.

“The supermarket retailers who do it best have prominent signage and displays for their deli pizzas,” says Leonardo at Palermo Villa. “With our Screamin’ Sicilian deli pizza, we partner with our retail customers on customized programs and provide our marketing and design expertise to create in-store point of sales materials to drive sales.”

There are very few categories within the grocery store where there are alternatives that pizzerias offer. Therefore, it is important for the retailer to find creative solutions to keep the dollars in their stores.

He recommends bundling deli pizza with beverages or chips to create a value meal; special promotion prices; offering call ahead ordering; and incorporating limited time offers (LTOs) with unique flavors that rotate throughout the year.

“As more national chain pizzerias become aggressive with their pricing and promotional strategies, retailers need to be more creative and competitive to gain share of stomach,” says Leonardo. “Instead of thinking about deli pizza as just another item they sell, successful retailers will find ways to increase the value and convenience to the consumer.”

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FEB/MAR 2020 DELI BUSINESS 25

n

019

Catering to Food Centric Lifestyles Boomers Stand Out

Consumers aged 55+ are the most likely to put health and flavor first. Older

BY SHARON OLSON consumers favor satisfaction oday’s consumers are enjoyingflavor study was to identify opportunities to build the ease and comfort of dining a catering business. A total of 1,528 confueling. at home without having to makeover sumers nationwide were surveyed, and

Unlocking the potential of catering

T

any compromises on variety and the results were compared to a study on quality of the dining choices. It’s the same topic 10 years earlier to gain an especially true when it comes to parties understanding of the evolution of the caterfor small groups of people—catered food at ing opportunities for deli operators. home is winning out over dining out at a The understanding of catering has restaurant in many cases. When it comes evolved considerably since the previous to everyday occasions like birthdays, family study, where caterers were thought of in celebrations and spectator sports, consum- the context of a recent wedding or large ers have more choices than ever before. special event, but not something relevant Although supermarkets are a top choice to everyday life. Today, there are more for catering, only 37 percent of those sur- opportunities for catering professionals veyed noted the supermarket deli as their beyond exquisite once-in-a-lifetime events. go to for catering.

There are small parties, meetings and | Freshtaking Perspectives A new study from Chicago-based ©Culinary eventsVisions regularly placeStudy at 2019 home and Culinary Visions explores the lifestyles at work.info@culinaryvisions.org Food is very often an important of today’s consumers and the character- part of these gatherings, and foodservice istics that drive purchase decisions and professionals from all segments of the food preferences when ordering food for every- industry are trying to capture a slice of the day group occasions. The objective of the catering pie.

Although consumers are ordering catering options more than they did a decade ago, catering continues to be a niche business, with only 38 percent of consumers surveyed reporting that they ordered prepared food for group occasions. There is of consumers often an informal expert who executes the likely to buy raw fruits order for the family, group of friends or colleagues at work. and vegetables to eat on When consumers are asked about their the go. choices and preferences for help with these events, 10 years ago the supermarket deli was their top go-to, followed closely by quick service and fast casual restaurants.

76%

26 DELI BUSINESS FEB/MAR 2020

62% of Boomers would not disregard healthfulness when snacking on the go,

CONSUMER CRAVINGS

ce

FEATURE

compared to 47% of Gen X and 45% of consumers aged 18-34 In the new study, the supermarket deli still takes the top slot mentioned by 37 percent of respondents, followed closely by a longer list of options.

Sandwich Innovation At the time of the original study, many consumers considered “deli trays” or “party platters” to be the extent of supermarket catering. In the new study, sandwiches remain the most popular choice, mentioned by 60 percent of consumers surveyed.

Yet, there has been a lot of innovation that continues to redefine best in class sandwich offerings, including premium deli meats and cheeses, international foods, specialty condiments and a huge range of bread types.

Small plate offerings have become part of the mainstream culinary landscape, evidenced by the strong showing of appetizers

82

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48

F E AT U R E

80% of consumers aged 18-34 reported that they are likely to purchase a healthy, single-serving snack, compared to 77% of GenX respondents and 65% of Boomers.

Brilliance at the Basics

Boomers Stand Out Some things don’t change — consumer

expectations for quality, service and value have continued to drive their preferences when ordering food for group occasions.

When delving deeper into the way quality, service and value are defined, the definition has evolved considerably, especially with the prevalence of on-line ordering.

Characteristics used to describe quality often includes brands or purveyors known locally for providing great quality food and treating everyone in the supply chain with great integrity.

Service is often described as a combination of personal attention and technology.

Consumers like the ease of online ordering, yet many also like the security of talking to a person to make sure every customized detail of the order is understood. Value is defined as “worth the splurge” as often as it is by “a great deal.” When it comes to value, it is vitally important to understand each store’s unique customer base and their expectations.

Accuracy of the order is paramount when ordering for groups because a mistake often affects the experience of the entire group rather than one or two people.

Timeliness of delivery has always been important when ordering for groups, and many consumers mentioned their comfort level with technology that allows them to have real time information and track the ©Culinary Visions | of Fresh 2019 to deliver progress thePerspectives driver onStudy the way info@culinaryvisions.org the order.

Ease of ordering has grown in importance, with consumers using updated technology more often to place orders.

Consumers sometimes reported that when they had difficulty ordering, it had a negative impact on their expectations for the food when it arrived.

Personal service still matters, and much of the responsibility for delivering the personal touch has gone to the delivery person.

When asked to recount “best experi-

Consumers aged 55+ are the most likely to put health and flavor first. Older consumers favor flavor satisfaction over fueling.

ences” many related to a friendly delivery person who went the extra mile to make sure everything was perfect. Even when mistakes were made, if the delivery person was pro-active in returning with the missing item quickly and with a positive attitude, the impact of the mistake dissipated considerably.

Although consumers find value important, it is not necessarily associated with the lowest price. When asked to recount their best experience, there were no comments about the lowest price making the experience great. That said, promotions and purchase incentives have become an expected part of the experience for many consumers today. of Boomers would about Among consumer comments best experiences, there were remarkable not disregard similarities between the two studies.

Personal recognition and little extras healthfulness when beyond the food made it memorable and snacking ongiftthe created loyalty. The withgo, purchase was particularly well received, like a free appeof Gen compared tizer or dessert.to Consumers also pay particular attention Xtoand of consumers freshness. For premade sandwiches in particular,aged consumers focus on the texture 18-34 of the bread and crispness of the produce as indicators of freshness. For salads and produce centric items, the cues are ripeness, texture and color.

62%

45%

47%

Catering Opportunities It is no surprise that birthdays are a top occasion for catered food at home and at work. Yet it is interesting to note that the birthday cake is not necessarily part of the order for food, which points to an opportunity to collaborate and cross merchandise with the in-store bakery to create the entire party package.

Targeting the right customer can be key to success, recognizing that budgets and motivations vary widely by the type

82% of Boomers would

not sacrifice flavor for convenience, compared to 61% of Gen X and

48% of consumers aged 18-34

of occasion. Food for a party is likely to be more indulgent, whereas options for a business meeting might be more health conscious. Promotions that offer high value trial offers can help individual stores hone in on the customers of greatest interest. Targeted menus are another option.

A celebration package might include very different food offerings than the business meeting menu.

Balancing favorite foods with a twist on the classics can also mean repeat orders.

When consumers reported ordering from restaurants, they often mentioned the daily special menu. While there is comfort in the familiar favorites that insure loyalty, there are incremental opportunities for frequencies with regular specials that add interest and appeal.

Of the consumers who did not consider ordering for group occasions from the deli, lack of awareness of the deli as a resource was a top reason. A recurring comment was, “it didn’t occur to me.”

The opportunity to promote to current customers with in-store merchandising or direct promotion can mean incremental business for stores.

When asked for suggestions on what supermarkets could do to improve their FEB/MAR 2020 DELI BUSINESS 27

FRESH BETWEEN GENERATIONS

as a catering choice in this study. Fifty-four percent of consumers surveyed mentioned ordering appetizers.

Healthy and indulgent offerings are also competing for attention at 52 percent and 51 percent of mentions respectively.

Rounding out the top foods ordered for group occasions are entrées and side dishes.

Ethnic specialties represent only 24 percent of catering orders; yet it’s important to note that some traditionally international foods like pizza are considered American food.

F E AT U R E awareness of catering programs, the comments in this study were remarkably similar to the study from a decade ago.

Many ideas related to in-store promotion to make them aware of offerings while they are doing their regular shopping— making menus easily available, providing samples and setting up a promotion table prior to holidays.

The perception of the quality of supermarket deli food versus restaurant food is

28 DELI BUSINESS FEB/MAR 2020

another important consideration.

Consumers who chose to order elsewhere made it clear that they wanted more variety and better quality to make the deli a real contender for their catering purchases.

Delivery of food is ubiquitous in today’s convenience driven food culture, and some consumers noted that if the deli did not offer delivery, they chose another venue.

Offering items for those with food allergies and sensitivities was considered

a tipping point in choosing a source for catered food.

Although catering to consumers with allergies might require an unrealistic overhaul of supermarket operations for prepared and delivered food, foods that are friendly to lifestyle diets can appeal to a broader audience.

Consumers are ordering more catering and more from the deli than they did a decade ago, however, the competitive playing field has expanded considerably. The study points to a number of opportunities to increase the deli’s share of the catering business: • Sandwich Platter Innovation – As the number one item ordered for catered meals, there is an opportunity to create unique and cravable offerings to distinguish a store.

• Healthy has to be Delicious – Catering orders often have to respond to disparate needs of a group where some have allergies, dietary restrictions or lifestyle diet preferences. An eye toward healthfulness that does not compromise on delicious is on trend.

• Destination Flavor – 65 percent of consumers said they ordered food because they enjoyed the flavor.

Foods that are distinctive and not easily duplicated can deliver repeat business.

• Service Perfection – Consumers expect convenience in all aspects of the ordering process, whether it is in person or on-line. Success is understanding customer service preferences and delivering perfectly on accuracy and timely arrivals.

• Carefree Customization – Occasions are rarely one size fits all, and offering flexibility within operational reason can build more customers and positive word of mouth.

• Look for What’s Next –Look to emerging competitors like personal chefs, food trucks and entrepreneurs with specialty foods that make delivery part of the event for fresh ideas.

Sharon Olson is Executive Director of Culinary Visions®, a division of Olson Communications based in Chicago. Culinary Visions is a food focused insight and trend forecasting firm that provides original consumer and culinary professional research for companies in the food industry.

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CHEESE CORNER

A

Roquefort

Revolution This French sheep’s milk blue has an esteemed history

BY EMMA YOUNG AND LISA WHITE

I

ALL PHOTOS COURTESY OF PAPILLON

n Delphine Carles’ first memories of Roquefort cheese, she’s following her father around a drafty limestone cave, one of the many that naturally occur in the rugged, dolomitic rock of France’s Mont Combalou. At 1,970 feet above sea level in the country’s southern Massif Central, this intricate network of caverns has earned global recognition as the only place in the world Roquefort cheese can be aged. The esteemed sheep’s milk blue—a staple on holiday cheese plates and one of France’s most popular cheeses after Brie and Comté—can only be made by seven approved cheesemakers, and Carles is one of them.

“Since I was a tiny girl, around four years old, I followed my father around, and very soon Roquefort had no secrets for me,” says Carles, who now serves as CEO of Roquefort Carles and the modern link in a chain of three generations, beginning with her grandfather in 1927. “I keep the secret recipe of the bread we use in a locked drawer in my house.”

FEB/MAR 2020 DELI BUSINESS 29

CHEESE CORNER That rye bread defines Roquefort—the penicillium roqueforti mold used to make the cheese is cultivated in the interior of these proprietary loaves, and that mold is responsible for the viridescent blue veins that cut across Roquefort’s pure white paste. It’s even woven into the cheese’s origin story: Legend holds that Roquefort was accidentally invented in the seventh century by a sheepherder who’d settled down to eat cheese on a piece of brown bread at the mouth of a cave. At one point, he abandoned his lunch to chase after a girl, returning later to find it covered in mold.

Being a shepherd and not a billionaire, he had no choice but to test out what had become of it, making him the first person to taste the fudgy cream, salty crunch and snappy tang of a hunk of Roquefort.

Despite some holes in that story, the regal blue is no doubt ancient. Some speculate that Emperor Charlemagne and Pliny the Elder favored it, while its first written record appears in a 1411 decree from Charles VI—to protect the geographically unique product against imitation and to aid a region not hospitable to other French crops like grapes or grains— he granted the people of the Roquefort-sur-Soulzon village the exclusive right to make Roquefort.

Charles VII further strengthened that decree in 1666, making it sanctionable to produce fakes.

In 1935, it became the first cheese to receive an AOC designation, which defined the seven rules that producers must follow to this day.

“Roquefort is one of the most wellknown French cheeses,” says Hervé Bourgeois, export director at France’s Fromageries Papillon. “As the first PDO, Roquefort is clearly an ambassador from the French cheese plateau.”

To be called Roquefort, a cheese must be made with the raw, unfiltered, whole sheep milk from animals pastured on the land around the caves. Their milk must be delivered at least 20 days after lambing and be treated with animal rennet within 48 hours of milking. The aforementioned mold must be used, along with dry salt, and the whole process of maturation, cutting, packaging and processing must occur in Roquefort-sur-Soulzon on a strip of land only a mile and a quarter long.

That painstaking process doesn’t just govern Roquefort in France, either. In 1951, eight European countries signed an agreement to regulate the use of cheese names, confirming Roquefort as an Appellation 30 DELI BUSINESS FEB/MAR 2020

CHEESE CORNER

That rye bread defines Roquefort— the penicillium roqueforti mold used to make the cheese is cultivated in the interior of these proprietary loaves, and that mold is responsible for the viridescent blue veins that cut across Roquefort’s pure white paste. d’Origine on an international level. Later, in 1996, the rindless, foil-wrapped wheels also received the official stamp of the Appellation d’Origine Protegée to further protect their name. Even the U.S. Patent and Trademark Office granted a geographic certification mark to the name ‘Roquefort,’ which can now only be used in the U.S. to mark sheep cheese originating from the Combalou caves. The name is so protected that even dips and salad dressings in France must contain genuine Roquefort cheese if they want to use the word in their packaging. “[Because this is] real raw milk cheese with no heat treatment, only cheesemaker know-how can manage to produce such a qualitative cheese,” says Bourgeois. “Then, the latest machine allows us to cut and wrap and conduct analysis as per the country’s sanitary request (zero E. coli for the U.S., for example).”

A Worldwide Treasure These rules haven’t kept the decorated wheels from traveling the globe—crumbles of the cheese turn up on top of steaks, poached pears and walnut salads in restaurants the world over. The Carles family exports 15 percent of the 220 tons of cheese they make in a year, while Fromageries Papillion, another one of the seven approved producers, exports 40 percent of their 2,000 tons.

Though blue cheese can polarize even the most devout of the cheese cognoscenti, Roquefort’s perfect balance has a way of warming up to timid palates. In France, even the children don’t mind the briny bite of the mold or the barnyard funk imparted by the sheep’s milk. “I do not know any young child that [does] not love Roquefort,” says Bourgeois, who eats Roquefort on a cheese plate beside Valencay, Comté and raw milk Camembert. Bourgeois also conducts tastings in the classrooms of his two

young daughters.

How do the seven chosen cheesemakers create that festive experience? It starts atop the plateau of Larzac, the summit of Mont Combalou, where Lacaune sheep teeter on rocky pasturage, feeding on wild herbs. Some 80,000 ewes live in the area, and they’re tended to by some 2,200 ovine dairy farms, most of whom lend their milk to Roquefort cheese.

In this remote and somewhat unruly region, the production of Roquefort is the primary economy. Some Roquefort producers, like Societé and Lactalis’ Associate and Papillon have grown into multi-million-dollar industries, while others, like Le Zieux Berger or Carles, work with fewer than 20 employees. Those not shepherding livestock or processing milk can be found in the caves, carefully tending to aging cheese. The Roquefort caverns enjoy near-constant hygrometry and temperature (95 percent humidity and 45-60 degrees F), thanks to fault lines, or “fleurines,” that provide natural ventilation.

Wheels of Roquefort will spend a minimum of three months in these caves, bathing in the salty, moist air.

Before they reach the caves, the lives of these wheels begin with calf rennet infusing raw ewe’s milk, then heated to a temperature of 82-93 degrees F. The resulting curds are stirred, cut and drained, then transferred to cheese molds, where they drain further as they are flipped three to five times a day and dry-salted at a cold 50 degrees F. After about a week, they’re off to the caves, where they age, uncovered.

During this time, affineurs wipe moisture from the exterior as the blue mold breaks down casein in the cheese’s cellular structure, making it creamier every day.

For every consistent variable, there are close-guarded family flourishes that set each Roquefort maker apart. For starters, there are 700 varieties of penicillium

roqueforti in existence. Traditionally, cheesemakers created the mold for their cheese by leaving bread in the caves for six to eight weeks, then drying it to produce a powder; this is a method Carles and Papillon still adhere to.

The mold can also be created in a lab in whatever form is most convenient— liquid, powder or even aerosol. Societé, the largest of the seven makers, responsible for 60 percent of all Roquefort production, streamlines their process by adding a liquid penicillium at the curd stage. Others sprinkle blue-green powder in the curd. Some use a combination of these methods, and all result in varying degrees of those famous streaks of greenish-blue.

FEB/MAR 2020 DELI BUSINESS 31

CHEESE CORNER Beyond the mold, variations also occur in how much salt is used (this has been reduced over the years in response to demand), what type of containers are used for draining (earthenware, metal, plastic), or what shelves the young wheels age on (the Carles family uses oak). At Papillon, wheels are aged slightly longer to reduce crumble and achieve lower salt levels; Gabriel Coulet ages for nine months.

For Ihsan Gurdal, owner of the Formaggio Kitchen line of cheese shops in the northeastern U.S., these little tweaks make a world of difference. “Our favorite has always been the Vieux Berger, immediately followed by the Carles,” he says.

“I have always liked the texture and the finesse of the Vieux and the prolonged middle flavors of it. On the other hand, Carles Roquefort to me is more robust and [has] more forward pronounced flavors right at the beginning.”

Red Flag Regulations Paul Alric created the Papillon Roquefort brand in 1906, and the line now includes four varieties. These include Taste Noir, characterized initially by its white paste and the generous streaks of intense blue in its broad and numerous cavities; Organic Agriculture, characterized by its color between white and ivory, its velvety aspect and smooth texture; Révélation, distinguished by subtle, elegant and complex flavors where the taste of sheep's milk is not crushed by the powerful penicillium, with a light buttery taste; and Rouge, which has a delicious fondant accompanied by a typical balanced and long-lasting taste.

Papillon is still the unique Roquefort cheese using Penicillium Roquefortii issued from rye bread produced by Papillon’s baker into Papillon bakery,” says Bourgeois. “This mix from tradition and modernism is clearly Papillon Qualitative signature.”

Gurdal has personally imported Vieux Berger, Carles and Gabriel Coulet, and brought in Societé from distributors to fill in between imports—though he is not currently able to bring in his favorite, the Vieux, due to FDA regulations.

“There was a red flag by FDA a couple of years ago, and we all struggled for almost eight months,” says Gurdal. “Vieux is still red flagged, but somehow we are allowed to import Carles.”

That FDA flag occurred in August 2014, when many raw milk cheeses were placed on Import Alert because of bacterial counts that exceeded the FDA’s newly 32 DELI BUSINESS FEB/MAR 2020

stringent tolerance level. Cheeses on Import Alert can’t be sold in the U.S. until the producer documents corrective action and passes five subsequent tests, so many shops went without Roquefort during the busy holiday season. Murray’s Cheese Shop in New York City put their existing Roquefort on sale, using #rescueroquefort on social media to encourage people to try the endangered cheese.

According to FDA press officer Lauren Sucher, most of the cheeses put on Import Alert in 2014 have since been removed, save for a few that still contain trace amounts of Listeria or non-toxignogenic E. coli. As of October 2017, the Yves Combes La Vieux Berger is the only Roquefort still on the list.

The FDA isn’t the only branch of the U.S. government with this ancient blue in its crosshairs. In 1999, the U.S. Trade Representative (USTR) imposed a 100 percent tariff on all Roquefort entering the country. To keep it affordable for Americans, makers continued to sell to the U.S. for less than half of market price, greatly limiting their profits. “Volume in the U.S. is not yet important for us,” says Bourgeois at Papillon. “The 100 percent tariff has impacted us negatively.”

The American market got even riskier for Roquefort producers in 2008, when the outgoing George W. Bush administration tripled punitive duties to 300 percent, in retaliation against a French ban on U.S. beef treated with growth hormones. When Barack Obama took office

in 2009, Roquefort producers lobbied him hard, even sending samples of their cheese, and were able to reach a compromise just before the new tariff was to take effect.

“Roquefort has been used as a political tool,” says Carlos Yescas, program director of the Oldways Cheese Coalition, which works to preserve raw and traditional cheeses. “[It] is the quintessential French cheese. This is among the reasons it has been drawn into ongoing trade battles.” When the 100 percent tariff expired in 2012, French Customs Authorities reported a 31 percent increase in Roquefort exports to the U.S. To pressure the EU into keeping their end of the 2009 deal, the U.S. beef industry again recommended punitive tariffs on Roquefort in 2017, urging the Trump administration to reinstate them. In response, the Confédération Générale de Roquefort, a trade association of cheesemakers, testified before a USTR panel to request that it impose duties on beef-related products instead, rather than singling out a specialty product that, by law, is made with sheep’s milk in a single village by a community of less than 700 people. It remains to be seen how the most recent tariff situation will impact Roquefort.

Despite this tension, Roquefort producers aren’t likely to stop shipping to the U.S. any time soon—but the cheese may become more of a luxury than an everyday staple if costly tariffs drive the prices up.

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CHEESE CORNER

Exploring Belgium’s Chimay

T

he first thing that springs to mind for many when you hear ‘Belgium’ is beer, but one of the handful of Trappist Breweries in the world is called Chimay, which is known for its Trappist beers as well as a distinct type of cheese of the same name.

Chimay is based at the Abbey of Notre Dame de Scourmont in Belgium, just a little to the North of the French border in the forest of Mont du Secours. As well as brewing, monks and monasteries are known for making and washing cheese. At Chimay, they make both beer and cheese, creating a link between the two.

This washed rind cheese is steeped in tradition

BY EMMA YOUNG AND LISA WHITE

“Its story is traditional and straightforward,” says Samantha Kane, business development manager at Atalanta Corp., Elizabeth, NJ. “What makes Chimay unique is connectivity of land and community, which translates to all parts of the business.” She says the Chimay business employs 250 people and is the largest

employer of region. “The monks are still at the helm, on the board and oversee all the production, and they want to give back, so all profits go to charity.”

It was back in 1850 when the Prince of Chimay asked for a group of monks from the Saint Sixtus Abbey in Westvleteren to establish themselves on the high Scourmont Plateau next to the town of Chimay in order to make something of the barren land there. They worked very hard to transform the unworked soil into fertile, usable agricultural land and, in 1862, they brewed their first beer, which was then known as ‘La Premiere’ and is now called ‘Chimay Rouge’.

FEB/MAR 2020 DELI BUSINESS 33

CHEESE CORNER In 1857 a dairy plant was created, with butter being made and consumed by members of the order. In 1876, their very own Brother Benedict headed to France to learn how to make semi-soft cheeses, and the monks started their cheesemaking.

World War II halted operations; however, miraculously everything was untouched, and they restarted brewing again shortly after. In 1975, they moved the dairy out of the brewery to create a separate operation and to focus better on both.

The Philosophy of Chimay There are around 11 monks now at Chimay. They no longer take part in the production, but serve more as a Board of Directors. All decisions go through the monks, and they still have their weekly tasting of the products.

Their philosophy, however, continues.

Everyone there works a strict 40-hour workweek. They are incredibly dedicated to the idea that you are meant to work for a certain part of the day, then study, pray and relax for the rest. They want everyone to have this same balance in life, and this philosophy is crucial.

In the same likeness, they are conscious of the environment and focused on sustainability and reducing their carbon footprint.

One example of this is that a third of the energy used within the brewery and dairy comes from their own solar panels.

“What is unbelievable is the care for the environment and what they’re doing to mitigate their impact,” says Kane. “Chimay’s operations have a large footprint for a small company operating in a small country.”

Kane explains that a mote surrounding the abbey protects the business’ water source, which is completely unadulterated.

The business’ carbon footprint also is mitigated due to the use of solar energy and recycled water for bottling and beermaking. “They do so much to give back to the land and what they’re taking from it,” says Kane. “They take what most food companies would be considered as small and make it an important part of their overall business plan.”

All profits from these businesses either go back into the monastery, allowing the monks to do charity work through the monastery itself, or through other charitable outlets. Though they are the largest employer of the region, they are still growing their number of employees. At the end of this year and into the next, the monks are starting a new project. Previously, 34 DELI BUSINESS FEB/MAR 2020

Chimay has their own co-operative for milk collection consisting of around 250 farms from which milk is collected to make the cheeses there was a farm between the monastery and what is now a restaurant. The farm is being recreated to provide jobs for people with physical disabilities. The workers will be able to both work and live there. their water source—the main ingredient for their brewing and a huge factor in the The Milk and Cheesemaking cheese production. The winter feed for Chimay has its own co-operative for the cows is also grown within the area. milk collection consisting of around 250 The herd sizes of the dairy farms vary farms from which milk is collected to make between 15 and 200 cows and are a mixthe cheeses. All these farms are within ture (depending on each farm) of Jersey, about an 18-mile radius of the dairy. They Blanc-Bleu Belge and Holstein cattle. are not all certified organic, however, they “All milk used in Chimay is delivered use the least intensive farming possible. No daily,” says Kane. “Because the Chimay pesticides are used on the farms or in the recipes are so traditional, the flavor profile neighboring land, as the monks are dedi- has translated all these years. Even though cated to protecting the environment and cows eat different things, they found a way

CHEESE CORNER to represent the cheeses from their area.”

At Chimay, cheeses are produced two to five days out of the week, and on any one of those days, they can complete up to seven makes. About 1,200 tons of Chimay cheese is produced annually.

When the milk arrives fresh in the morning, it is immediately checked to ensure that it meets the specs given to every single farm. Tank samples are taken and analyzed in the laboratory. The checks ensure there are no pathogens nor antibiotics present in the milk, which will only be transformed into Chimay cheeses if all quality checks are passed.

The milk is then pasteurized, skimmed and homogenized to 30 percent fat. The curds are then washed with a mixture of water and whey, which gives the cheese its characteristic, springy Tomme-like texture. Once the cheeses are made, they are turned out and placed onto racks, then plunged into brine baths. Here, they remain for two to 48 hours, depending on the type and size. Certain cheeses are then washed using the Chimay beer to give it an extra depth of flavor. The others are brine washed. The cheeses are taken into one of seven different maturing cellars to complete the process, depending on their style.

Chimay Cheeses Chimay makes a variety of cheeses all year round as well as some seasonal specialities.

There are different styles of Chimay.

“Chimay Classic and Grand are traditional, and La Premier is washed in beer and uses beer extract added to the paste,” says Kane. “Chimay Vieux has a natural rind and is similar to Mimmolet with a rich, almost Cheddar quality and a grass forward flavor with a sharpness at the end.”

The cheeses available through Atalanta are: • Chimay Classic – a semi-soft, washed rind cheese aged for 21 days with a grassy profile and buttery finish.

• Chimay a la Premiere – aged for four weeks. This is a semi-soft cheese washed with Chimay beer and contains hop extract within the paste. On the nose, there are hints of stone fruit, like the aroma of Mahon from Spain as well as a fruity paste and a hint of bitterness from the hops themselves.

• Grand Chimay – aged for over 60

days. This uses a different set of cultures, giving it a flavor profile with more complexity, like a raw milk cheese. Grand Chimay is named from achieving its intense, Trappist character from an ale-washed rind, while at the same time retaining a creamy freshness and florality.

• Chimay Vieux – aged six months and a happy accident launched in 1989. As with many cheese recipes, this was unintentional. After 100 years into Chimay’s Trappist cheesemaking history, the monks of Scourmont Abbey in Belgium started developing new recipes. During the maturing stage, some of these new, ‘experimental’ cheeses were forgotten for many months. When they were found, these mature cheeses proved to be a very delicious mistake. Vieux Chimay is dome shaped, not dissimilar to the French Mimolette, and houses a beautiful annattoed interior. It has a long, fruity flavor, caramel notes and a smooth finish. This cheese has the

smallest production, as it can only be produced in the spring and summer months when the cows are grazing at pasture.

• Poteaupré – aged for 120 days, this cheese was only launched in 2007. It is housed in its own wooden box, like the French Mont D’Or, and is a softer, more creamy cheese with spicy aromatics and a smooth finish.

Atalanta has launched Chimay loaves, which are the same recipe as the Classic and La Premiere, but in a larger format, ideal for foodservice.

Chimay does not have a commodity price tag; however, it does translate well in cooking applications.

In 2019, Atalanta launched a marketing campaign titled ‘Cut, Sip, Repeat’, for beer pairing. Yet, there are a variety of unique ways to incorporate Chimay into traditional dishes.

“It can be used to top burgers, as a topping for nachos or as part of a beer batter,” says Kane. “It also is popular as a raclette.”

DB FEB/MAR 2020 DELI BUSINESS 35

VOICE OF THE INDUSTRY

Is Investing in PRIVATE LABEL

a Supermarket’s Holy Grail?

(Occasionally, Deli Business receives an excellent and well thought out opinion that warrants consideration. However, often due to a conflict of interest or a lack of desire to commit publicly, the commenter reaches out to us requesting anonymity. This is one of those cases. The following is not the opinion of Deli Business or its associates -Lee Smith)

T

here is no shortage of industry buzz on the growth of grocery private label, but what if the hype is wrong? Certainly, the premise of private labels is compelling: provide store-brand products at reduced cost over name brands in pursuit of higher profits and higher store loyalty. The numbers seem to tell a compelling story—year-over-year growth in private label sales and steady expansion of private label products by multiple retailers.

36 DELI BUSINESS FEB/MAR 2020

But that story is not complete without considering how much these retailers are losing from displaced name brand product sales and overall category growth. What is being given up in the name of backing private label? The retailer expands their private label by replacing the branded product, not by increasing the sales of the private label brand. A loss of a brand is a loss of profit, promotions and already established customer loyalty for that brand.

The specialty cheese category is one such case—with cheeses like Feta, Brie, fresh Mozzarella, Asiago, Parmesan and Mascarpone. Where private label exists, it generally results in less sales growth per SKU. Over time, it diminishes the retailers’ profit. To understand why, consider two of the shopper’s primary purchase decision-drivers: quality and price. In a study published by the Dairy Farmers of Wisconsin in May 2017 (then called the Wisconsin Milk Marketing Board), con-

sumers were asked how important various factors were when deciding what cheese to buy. The responses that stood out were: • 85 percent of respondents said, “Quality is worth paying for”.

• 90 percent said they “like to sample cheese before buying it”.

Quality is key when it comes to specialty products and sampling is extremely helpful, but private label puts pressure on both of these factors. Consider that private label products cost just as much to produce as a branded product—perhaps even a little more due to label and film changeovers in the plant and shorter, less-efficient production runs. Moreover, the retailer is required to extend beyond its core business to enter the field of product development or oversee the manufacturing. If the goal is to save 10 to 20 percent over branded products, you will inevitably end up with a lower quality.

Then, there is mark up. Assume the retailer has a gross margin of 55 percent on

VOICE OF THE INDUSTRY

Only selling private label is generally not a good idea. The higher price of the branded product would likely return just as high or higher profit, and because of the quality would more likely lead to repeat purchases. private label and, to favor sales, the branded product is 60 percent. Obviously, the profit margin is higher for branded products. But the lower margin on private label is not offset by lower marketing costs because the retailer often fails to promote products, except on a generic level. The retailer often loses out on new products, item improvement and innovation.

If the mark up on branded and private label product are the same, a retailer is better off with branded product, as brands bring marketing and trade funds to the category. If a retailer elects to promote private label, it is typically done out of their own budget, further reducing their margin.

Both of these steps work against the consumer purchase decision-drivers. First, eliminating trade funds eliminates the support needed to advertise and promote, including funds for sampling. Second, reducing the quality to make the desired price point is in direct opposition to the powerful driver of quality. In selling an inferior product, the retailer only reinforces the belief that the name brand is better quality than private label. At the same time, the lack of promotion and the lower price point results in lower dollar sales and lower penny profits for the retailer. Net, the category is weaker as a result.

In this scenario, the retailer gradually reduces customer awareness of the product and reduces their own sales and margin in the process—a losing proposition for everyone!

Only selling private label is generally not a good idea. The higher price of the branded product would likely return just as high or higher profit, and because of the quality would more likely lead to repeat purchases. A more profitable choice for the retailer would be to promote higher quality, which carries a higher price point but

also a higher margin. The consumer is satisfied with the product and buys it again, the retailer gets a higher margin, and the manufacturer can continue to provide a retailer with consumer research and marketing support. This is a winning scenario for everyone—the consumer, producer and also the retailer.

Traditional supermarket chains may argue that private label allows them to offer more variety and a tiered pricing structure that lets them compete with discount outlets like club stores. However, this may be a dated concept in today’s dynamic shopping ecosystem. People will choose their shopping experience du jour based on what factors are the most compelling at that moment—e.g., price/value, quality, store environment, service, convenience, etc. Club stores and discounters will always be able to offer a lower price as a trade-off to more variety found in a traditional supermarket. Chasing the loyalty of the shopper, who’s always looking for the lowest price will not generate long term profits for the supermarket chain. The loyalty will come from repeat shoppers who find high-quality products and are given the information they need to make those purchasing decisions—promotional pricing, national advertising, coupons and sampling as well as providing in-store point of sale materials.

Speaking of club stores, does private label make sense for them as a business investment? As an example, a club store prices products with 15 to 30 percent margin on both private label and branded product. But what do they gain by trying to replace the well-known brand? They are forced to direct their time and money supervising the making and packaging of the product and managing their own quality control systems, none of which plays to

their strengths and expertise. Producers who have no skin in the game often try to cut corners and reduce cost of goods without notifying their clients or passing along the savings. To make a quality private label, the costs are more than what a club store is willing to invest. The result is very little profit for the producer and instead of working closely with a retailer, innovation is lost.

A private label manufacturer is often only focusing on reducing their costs to meet the demand of the lower pricing.

Retailers may start to realize that their best strategy is to help manufacturers bring those quality brand products to market and not be distracted by the inflated promise of private label.

More food for thought: - No name items were originally referred to as “Generic Brands”. Now labels are referred to as an upscale private label, even though the quality may not be upscale.

- If you ask most retailers, they believe national brands are important to their sales.

- If a private label brand is worth the effort by a retailer, why do they choose not to use their own store (brand) name as the brand? There is no real commitment to building a private label that does not promote their own brand.

- Private label works better for supermarkets who have a limited item selection.

They offer only one choice per item with the promise of good value for their customers. Its success is not due to private label, but because they offer better prices with decent quality, which brings the customers back.

- Larger stores think their advantage is giving customers choices by stocking two or three brands besides a private label. This creates a conflict of interest for the private label brands that, in the end, does not benefit anybody.

DB FEB/MAR 2020 DELI BUSINESS 37

BLAST FROM THE PAST

Potter’s Crackers’ Sustainable Journey

Founded by mother and son team Nancy Potter and Peter Potter-Weber in 2006, Madison, WI-based Potter’s Crackers has been baking up certified organic, fresh, whole grain crackers with one mission in mind—to sustainably produce crackers using the finest local, organic ingredients.

In 2010, Potter’s opened a second location in Sacramento, CA with the aim to deliver flavor to the West Coast. The new facility was able to help Potter’s launch its bread crisps in 2012 as well as a gluten free cracker that became one of its best sellers.

Meanwhile in Wisconsin, Potter’s moved from a small 700-square-foot facility to a 3,200-square-foot facility located in the same building in which they started.

The expansion created much needed capacity for the business to continue to grow.

“This was the point in our history where we knew this could be a serious business.

We stopped turning away orders and started to scale operations to support increases

in local and national demand for the brand,” says David Payne, who at the time was the shipping/packaging manager.

In 2017, mother and son decided to start their exit strategy from the business. Sacramento and Madison were consolidated to one location in Madison. The gluten free cracker was sold off and customers were converted to receiving product from solely the Madison location. In the same year, Potter’s released its third line of products, a proper oyster cracker that is organic and made from locally-sourced ingredients. The line quickly became a favorite amongst Potter’s most loyal customers.

In 2019, Nancy decided it was time to retire and sold the business to long-time employee Payne and his business partner Michael Tiede. “The constant growth and the fact that I could secure employment for myself and all of the current employees at a place that I have loved to watch and help grow were the driving factors in my deci-

sion to purchase the company from Nancy and Peter,” says Payne. “The mission has not changed. Potter’s will always be inspired by the great cheeses, wines, sausages and many other foods produced in Wisconsin. We aim to deliver these products on a cracker formidable enough to stand on its own and subtle enough as to not distract from whatever item is being served alongside them.” DB

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