Milling & Baking News - November 2, 2010 - 30

Pasta Perspective 

Higher price point, better sales?

world

espite the challenging economic climate in recent years, some of the best selling pasta brands
on the market during the past 52 weeks have been those carrying the highest average price
per unit, according to SymphonyIRI Group, a Chicago-based market research firm. The reason
- added value.
Among the top 20 spaghetti/macaroni/pasta (no noodles) brands tracked by SymphonyIRI, Tinkyada from Food Directions Inc., Scarborough, Ont., had the highest price, at $3.63 per unit. Tinkyada
is a wheat-free/gluten-free pasta made from different types of rice. In the 52 weeks ended Oct. 3,
Tinkyada capitalized on the growing gluten-free trend by posting dollar sales of $10,685,180 on
unit sales of 2,941,914, up 27% and 23%, respectively, from the same period a year ago, according
to SymphonyIRI.
Even after a 32c-per-unit decline over the previous 52 weeks, De Cecco pasta from F.lli De Cecco
Di Filippo Fara San Martino S.p.A. remained the second most expensive pasta at $2.71, according to
SymphonyIRI. But unit sales during the period advanced 4% to 11,020,760. The De Cecco pasta brand
carries a higher price point in part due to its line of whole wheat and organic certified products.
Available in seven shapes, Dreamfields pasta from Dreamfields Foods, a unit of Dakota Growers
Pasta Co., Carrington, N.D., has about the same high fiber as whole wheat pasta (5 grams; 20% of the
daily recommendation), fewer digestible carbs and a lower glycemic index than traditional pasta. This
"added value" supports the brand's $2.27 average price per unit, the third highest among the top 20
brands. The added value helped consumers look past the price to the tune of a 23% increase in dollar
sales and 27% increase in unit sales during the 52 weeks ended Oct. 3, according to SymphonyIRI.
The fourth and final pasta brand among the top 20 to carry an average retail price above $2 was
Barilla Plus from Barilla S.p.A., Parma, Italy. The higher price point ($2.08) did little to slow sales during
the period, as dollar and unit sales advanced 5% and 6%, respectively. Launched in early 2005, Barilla
Plus was one of the first pasta brands to hit the market offering a product made from multigrains,
legumes, ground flaxseed, wheat fiber and egg whites. The pasta's standing as a source of omega-3
fatty acids also has served it well among consumers looking for healthier pasta options. MBN
departure of top AIPC executives.
A new round of change looms as
AIPC is integrated into Ralcorp. Although AIPC will remain as an independent division of Ralcorp, the company
is expected to fuel further market share
gains, perhaps through the possibility of
entering new categories such as refrigerated and frozen pasta.
"We are excited about the addition
of AIPC to the Ralcorp family," Kevin
J. Hunt, co-c.e.o. and president of Ralcorp, said at the time of the acquisition. "This transaction strengthens our
position as a diversified provider of
private label and branded food products and we anticipate that by adding AIPC's No. 1 position in private
label dry pasta, strategically located
production facilities, solid brands and
top-tier customer base to Ralcorp's capabilities, we will be able to better address a broader spectrum of customer
and consumer needs."
Leading the charge for AIPC will be
Walt George, who was named president
of AIPC in early August. Mr. George,
who most recently was chief operating officer of AIPC, was set to succeed
Jack Kelly following a transition period
scheduled to conclude Nov. 1.
Mr. George and others will be looking to spur branded sales at AIPC,
which suffered a decline of 16% in
dollar sales in the 52 weeks ended
Oct. 3, to $122,381,600, according
to SymphonyIRI. The company's

30 / November 2, 2010 Milling & Baking News

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Mueller's brands sustained a loss
of 10% during the period due in
large part to a 7% drop in unit sales.
AIPC hopes to capture part of the
growing gluten-free trend with the
launch earlier this fall of Heartland
gluten-free pastas. Available in spaghetti, penne and fusilli shapes, Heartland's gluten-free pasta "matches the
color, texture and flavor of traditional
pasta," the company said.
On the plus side, AIPC's private label
pasta business remains strong, and was
a key factor in the 0.10% gain in overall
private label unit sales for the category.
At $325,781,600, private label sales were
down 3% for the 52 weeks ended Oct. 3,
according to SymphonyIRI.
Pasta leader stays strong
"Business as usual" has not slowed
growth at Parma, Italy-based Barilla
S.p.A., the world's largest pasta maker. In the 52 weeks ended Oct. 3 spaghetti/macaroni/pasta dollar sales
rose 5% to $424,977,100 while unit
sales increased 10% to 309,041,400, according to SymphonyIRI.
Dominating company sales was
the staple Barilla brand, which posted
dollar sales of $359,199,500 in the period, up 5% on an 11% gain in unit sales.
Also exhibiting strong growth was the
company's Barilla Plus brand, which
saw dollar and unit sales rise 5% and
6%, respectively, in the period. MBN
- Eric Schroeder

(800) 851-9618

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ConAgraMills�

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Milling & Baking News - November 2, 2010

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