Milling & Baking News - October 28, 2014 - 30

Pasta Update 

A push for pasta
Pasta makers face challenges from quick-service, private label

live Garden created quite a
buzz earlier this fall when the
Orlando, Fla.-based restaurant
chain announced the return of its popular Never Ending Pasta Bowl promotion with an added caveat: Never
Ending Pasta Bowl Pass. Olive Garden
sold 1,000 "Pasta Passes" on-line for
$100, giving people the opportunity
to receive unlimited pasta, pasta toppings and Coca-Cola soft drinks from
Sept. 22 through Nov. 9.
Shortly after the Pasta Passes went
on sale, many began popping up on
on-line auction site eBay for multiples
of the original $100 purchase price.
The heightened demand surely left
manufacturers in the dry pasta category wondering if there is something
they can do to spur sales in what has
been a sluggish segment.
In the 52 weeks ended Oct. 5, dollar sales in the spaghetti/macaroni/
pasta (no noodles) category totaled
$1,896,752,000, down 1.2% from the
same period a year ago, according to
Information Resources, Inc., a Chicago-based market research firm. Unit
sales fared only slightly better, posting an increase of 0.36% in the period, to 1,453,772,160.
Barilla broadens lineup
Barilla America, Inc., Bannockburn, Ill., with a strong 30% share
of the dry pasta, non-noodle market, managed to squeeze out a 0.50%
year-over-year dollar sales gain on
a 1% increase in unit sales. The base
Barilla brand, with dollar sales of
$522,568,000, improved nearly 3%

during the 52 weeks ended Oct. 4,
which helped offset a 19% decline in
dollar sales for the Barilla Plus brand.
Meanwhile, Barilla Veggie, featuring
1 full serving of vegetables per 3.5-oz
portion, was recognized by Better Homes
and Gardens as the "Best New Pasta" for
2014 in its nationwide survey of 80,000
participants. Made with freshly pureed
in-season vegetables, Barilla Veggie is
available in Barilla Veggie Elbows, Barilla Veggie Penne (freshly pureed tomatoes and carrots), Barilla Veggie Rotini
(freshly pureed spinach and zucchini),
Barilla Veggie Spaghetti and Barilla Veggie Thin Spaghetti.
The company also has launched Barilla Collezione Regional Specialties, a
line of five new pasta shapes and Barilla's signature tortellini and tortelloni,
inspired by the regions of Italy. And
Barilla continues to gain traction in its
gluten-free line, which launched in select U.S. grocery stores in September
2013, with national availability beginning earlier this year. Made with a combination of non-bioengineered corn
and rice, the pastas are produced in a
dedicated gluten-free facility in Italy.
Private label push
Private label also plays a prominent
role in the pasta category. With dollar sales of $516,374,784, private label
was nearly on par with Barilla's nonnoodle dry pasta sales during the 52
weeks ended Oct. 4, according to I.R.I.
Although dollar sales were down 2.5%
year over year, there could be a reversal in store with the growing number
of players in the category.

Top-selling spaghetti/macaroni/pasta (no noodles) vendors
Dollar
sales
Barilla America Inc.
$563,646,784
New World Pasta
$377,331,040
American Italian Pasta Co.
$153,548,288
Molino E Pastif.F.LLI De Cecco $32,655,730
Dakota Growers Pasta Co.
$30,877,166
Interamerican Corp.
$25,600,490
Food Directions, Inc.
$21,151,310
Quinoa Corp.
$15,815,782
Private label
$516,374,784

Per cent
change from
year ago
0.5%
-2.2%
0.1%
2.4%
-5.6%
-3.6%
0.6%
6.8%
-2.5%

Unit
sales
410,380,288
298,812,160
118,345,352
13,775,627
14,862,554
64,938,900
5,825,488
5,041,233
410,137,152

Per cent
change from
year ago
1.3%
0.9%
3.5%
3.4%
-5.3%
-4.0%
-0.4%
7.7%
-0.5%

52 weeks ended Oct. 4, 2014
Total U.S. multi-outlet (supermarkets, drugstores, mass market retailers, military commissaries and select club
and dollar retail chains)
Source: Information Resources, Inc.

Pasta is among the items that will
be offered as part of Price First, a
new opening price point private label
line that is set to debut nationally in
Wal-Mart U.S. stores in the coming
months. And earlier this month, Aldi,
Inc., Batavia, Ill., made its gluten-free
brand LiveGfree a permanent addition to its shelves. The line features
17 items, including penne, fusilli and
brown rice spaghetti.
"Store brands have moved far beyond cheap generic knock-offs to become trusted, quality lines that can
compete effectively with national
brands," said David Sprinkle, research
director for Packaged Facts. "They
usually have higher profit margins for
retailers than name brands, help differentiate a retailer from competition,
and help build consumer loyalty."
Private label accounted for almost
a fifth of the $530 billion total food
and beverage market dollar sales in
2013. In its report "Private label foods
& beverages in the U.S., 8h edition,"
Packaged Facts estimated retail dollar
sales of private label food and beverages were $102 billion in 2013, up
about 2%. Food products accounted
for approximately 80% of the private
label segment's sales.
New World relies on Ronzoni
New World Pasta Co., Harrisburg,
Pa., continues to tout its gluten-free
pasta under the Ronzoni brand. Its
gluten-free spaghetti, penne rigate
and rotini each contain 19 grams of
whole grain and 200 calories
per serving. The pasta
is low in fat and sodium- and cholesterolfree. It is produced in
a dedicated gluten-free
facility and is available
at select U.S. grocery
stores.
Non-noodle dry pasta
dollar sales at New World
dipped 2% in the 52 weeks
ended Oct. 4, but unit sales
increased nearly 1%. The company's
Ronzoni, Skinner and Prince brands
all performed well over the past year,
helping offset some of the declines in
the Creamette, San Giorgio, Ronzoni
Healthy Harvest and Ronzoni Smart
Taste brands. MBN
- Eric Schroeder

30 / October 28, 2014 Milling & Baking News

bakingbusiness.com / world-grain.com

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Milling & Baking News - October 28, 2014

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