The U.S. Market for Gourmet Condiments/Cheese, Volume 2: U.S. Market for Gourmet and Specialty Foods and Beverages

SUMMARY

As American tastes become more sophisticated and consumers seek ever-more variety,gourmet/specialty condiments and cheese are continuing to proliferate, growing faster than their mainstream counterparts. This new Packaged Factsreport offers a unique perspective on this booming market. The U.S. Market for Gourmet Condiments/Cheese covers two broad categories - condiments andcheese. The condiments category encompasses gourmet sauces and marinades, pasta sauce, salsas, olive oil and other specialty oils, mustard, ketchup,mayonnaise, hot sauce, vinegars, salad dressings, chutneys and relishes, specialty appetizers and seasonings, herbs and spices, jams, jellies,conserves, syrups, and other food accompaniments, while the cheese category focuses on specialty cheeses from both major marketers and artisans ComingSeptember 2003

The U.S. Market for Gourmet and Specialty Foods and Beverages, Volumes 1-3

The U.S. Market GourmetCondiments/Cheese is volume 2 of Packaged Facts' new 3-volume market research series, The U.S. Market for Gourmet and Specialty Foods and Beverages.The series is the executive' s guide to the burgeoning market for gourmet and specialty oriented food and beverage consumption in this country. Hereare expertly analyzed quantitative and qualitative data on market size and growth (covering both mass and prestige outlets), societal trends, and thecompetitive situation for three popular and growing food and beverage categories: Beverages and Confectionery; Gourmet Condiments/Cheese; and Foodsand Ready-to-Eat Refrigerated and Frozen Meals.

Report Methodology

The information in The U.S. Market for GourmetCondiments/Cheese is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews withmarketing, public relations and industry analysts within the gourmet and specialty foods markets and consultants to the industry. Secondary researchentailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived massmerchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. Figures provided on national consumer advertisingexpenditures are based primarily on data (copyright 2002) compiled by TNS Media Intelligence/CMR, the leading provider of strategic advertising andmarketing communications intelligence. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for fall 2002.New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing IntelligenceService Ltd.

This report looks at every segment of the gourmet condiments/cheese markets, examining trends for growth and projecting sales ofproducts through 2007. It analyzes consumer demographics and their current and projected impact on sales of gourmet and specialty foods and beverages.It provides up-to-date competitive profiles of marketers of these foods - including a look at smaller, up-and-coming companies - and discusses theinfluence of demographic trends as a driver of retail trends. The report also spotlights new products and current distribution trends, and offersreaders trends and marketing opportunities within the gourmet and specialty industry.

What You' ll Get in this Report

Using anew data-intensive, compact format, The U.S. Market for Gourmet Condiments/Cheese presents an incisive analysis of the market factors that continue toshape the market, including consumer trends, mergers and acquisitions, and new product developments. The report also provides up-to-date competitiveprofiles of leading industry players, both marketers and retailers. New to the report is a cutting-edge discussion of action points companies can useto benefit from the trends driving this market.

The report addresses the following segments:

• The Market (including market size and composition, and projected market growth)
• The Marketers (including share of market, where available)
• Competitive Profiles (of mainstream marketers, as well as specialists and up-and-coming niche players, along with analyses of the products theymarket)
• Retail Strategies
• The Consumer (an analysis of current Simmons Market Research Bureau data profiling consumer demographics)
• Trends and Opportunities

Plus, you'll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll to see a more detailedoutline of the contents of the report in this series.

How You Will Benefit from this Report

If your company is already competingin the gourmet condiment/cheese markets, or is considering making the leap, you will find this report invaluable, as it provides a comprehensivepackage of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for gourmetand specialty condiments/cheese, as well as projected sales and trends through 2007. Contributing to that understanding will be a complete analysis ofsales data from IRI and other published and trade sources, a detailed discussion of the gourmet and specialty foods and beverages market based onSimmons data.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for gourmet condiments/cheese.
• Research and development professionals stay on top of competitor initiatives and explore demand for products in the gourmet condiments/cheesemarkets.
• Advertising agencies working with clients in food and beverage industries understand the product buyer to develop messages and images thatcompel consumers to purchase these products.
• Business development executives understand the dynamics of the market and identify possible partnerships.
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vitalinformation they need to do their jobs more effectively.

TABLE OF CONTENTS

Scope and Methodology

• Scope of Report
• Condiments
• Cheese
• Report Methodology
• Retail Sales Surpass $5.4 Billion
• Table 1-1: U.S. Retail Sales of Gourmet/Premium Condiments and Cheese, 1998-2007 (in millions of dollars)
• Condiments, Cheese Sales Nearly Evenly Split
• Retail Channels
• Many Factors Will Favor Market Growth
• Major Marketers and Brands
• The Competitive Situation
• Marketers Spend Over $36 Million to Advertise Gourmet Condiments and Cheese in 2002
• Overview of Consumer Purchasing

Chapter 2: The Market

Market Size and Growth

• Market Definition: Condiments and Cheese
• Gourmet, Specialty, or Premium?
• Figure 2-1: U.S. Retail Sales of Gourmet/Specialty Condiments and Cheese, 1998-2002 (in millions of dollars)
• Two Categories: Condiments and Cheese
• Condiments
• Cheese
• Methodology for Packaged Facts' Estimates
• Retail Sales Surpass $5.4 Billion in 2002
• Table 2-1: U.S. Retail Sales of Gourmet/Specialty Condiments and Cheese, 1998-2002 (in millions of dollars)
• Gourmet/Premium Condiments Top $2.7 Billion
• Table 2-2: U.S. Retail Sales of Gourmet/Specialty Condiments, 1998-2002 (in millions of dollars)
• Gourmet/Specialty Cheese a $2.7 Billion Market
• Table 2-3: U.S. Retail Sales of Gourmet/Specialty Cheese, 1998-2002 (in millions of dollars)

• Retail Sales by Product Category
• Figure 2-2: Share of Gourmet Condiments and Cheese Dollar Sales by Category, 1998 vs. 2002 (percent)
• Market Composition by Retail Channel
• Supermarkets Lead Retail Market with 48.5% of Sales
• Figure 2-3: Share of Gourmet Condiments and Cheese Dollar Sales by Retail Channel, 2002 (percent)
• Condiments Sales Peak in Summer

• Market Dynamics
• New Products Feed Growth
• Convenience a Big Selling Point
• Ethnic Surge Causes a Gourmet Synergy
• Are Gourmet Condiments Reaching a Saturation Point?
• Mainstream Marketers Go Gourmet
• An Outdoor Cooking Style, Even Indoors
• Healthy "Mediterranean Diet" Helps Propel Sales
• American-Made Cheeses Proliferating
• Anti-French Sentiment Has Little Apparent Effect on Cheese Sales
• Figure 2-4: Projected U.S. Retail Sales of Gourmet Condiments and Cheese, 2002-2007 (in millions of dollars)

• Retail Sales to Top $7.2 Billion by 2007
• Table 2-4: Projected U.S. Retail Sales of Gourmet Condiments and Cheese, 2002-2007 (in millions of dollars)
• Table 2-5: Projected U.S. Retail Sales of Gourmet/Premium Condiments, 2002-2007 (in millions of dollars)
• Table 2-6: Projected U.S. Retail Sales of Gourmet/Specialty Cheese, 2002-2007 (in millions of dollars)

Chapter 3: The Competitive Situation

Marketers and Brands

• Thousands of Competitors
• Condiments Leaders
• Smaller Condiments Marketers
• Cheese Leaders
• Prominent Cheese Importers and Distributors
• Niche Cheese Marketers
• Recent Mergers and Acquisitions
• Table 3-1: Selected U.S. Marketers of Gourmet Condiments and Cheese

• Methodology
• Gourmet/Premium Condiments
• Premium Brands Account for One Out of Four Pasta Sauce Dollars
• Bertolli Leads Olive Oil Marketers
• Grey Poupon Number Two in Mustard
• Marinades Steaming
• Gourmet/Specialty Cheese
• Natural Cheese Marketers
• Table 3-2: Top Marketers of Pasta Sauce by IRI-Tracked Sales and Shares, 2002
• Table 3-3: Top Marketers of Olive Oil by IRI-Tracked Sales and Shares, 2002
• Table 3-4: Top Marketers of Mustard by IRI-Tracked Sales and Shares, 2002
• Table 3-5: Top Marketers of Meat Marinades and Glazes by IRI-Tracked Sales and Shares, 2002
• Table 3-6: Top Marketers of Natural Cheese by IRI-Tracked Sales and Shares, 2002

• Many Mainstream Marketers Are Quiet Participants
• Many Cottage Businesses
• Market Highly Fragmented
• Gourmet/Specialty Condiments Widely Copycatted
• Chefs Go Co-Branding Route
• Cheese a Two-Tiered Market
• Enter Another Major Player
• Artisanal and Farmstead Cheeses
• Some Large European Companies Have U.S. Production
• Specialty Cheese Distribution a Complex Maze

• Leading Advertisers
• Industry-Wide Advertising Campaigns
• Consumer Promotions

New Product Trends

• Condiment Trends
• Pasta Sauces
• Thrill of the Grill
• Bring on the Heat
• Oils and Vinegars
• Salad Dressings
• Gourmet Mayonnaise
• Gourmet Mustards
• Asian Flavors
• Etcetera
• Low-Carb Condiments
• Cheese Trends
• Savor the Flavor
• A Better Mouse Trap
• Traditional European-Style Cheeses Made in the USA
• Ethnic Cheeses

• Focus on Specialty Stores
• Focus on Supermarkets
• Focus on Warehouse Clubs
• Focus on the Web: E-Commerce
• Online Retailers

Chapter 4: Competitive Profiles

Competitive Profile: Bongrain S.A.

• Corporate Background
• Three U.S. Cheese Divisions
• Schratter Foods and Anco Fine Cheese

• Corporate Background
• Lactalis USA
• Sorrento Lactalis

• The Consorzio Olive Oil Story

• Corporate Background
• Grey Poupon Mustard
• "Pardon Me..."
• Expanding the Product Line
• Churny Company Cheese Brands

Competitive Profile: Lancaster Colony Corp.

• Corporate Background
• T. Marzetti Divides and Conquers Specialty Salad Dressings
• Other Gourmet/Specialty Foods Brands

• Corporate Background
• Jarlsberg the Leading Imported Cheese Brand
• Strategic Alliances with Other Cheese Producers

• Corporate Background
• Saputo Cheese USA: Growth Through Acquisitions
• Recent Product Introductions

• An "Overnight Success" in Gourmet Mustard

• A Packaged Goods Monolith
• Bertolli Extending "Mediterranean Lifestyle" Positioning
• Knorr
• Maille and Colman' s

Chapter 5: The Consumer

Demographics

• Note on Simmons Survey Data and Figures
• 31% of Households Favor Olive Oil; Bertolli the Top Gourmet Condiments Brand at 17%
• Cheddar the Favorite Natural Cheese in More than Half of American Homes
• Purchasing Patterns
• High Socioeconomic Skew
• Age Patterns
• Ethnic Consumers Not a Prime Market for Most Products
• Regional Skew to the Northeast and West
• One- and Two-Person Households More Likely to Prefer Gourmet Condiments and Cheese
• Table 5-1: Adult Purchasers of Gourmet Condiments and Cheese, 2002 (% of U.S. households)
• Table 5-2a: Purchasing Indices for Gourmet Condiments/Cheese: By Household Income Bracket, 2002 (U.S. adults)
• Table 5-2b: Purchasing Indices for Gourmet Condiments/Cheese: By Household Income Bracket, 2002 (U.S. adults)
• Table 5-3: Purchasing Indices for Gourmet Condiments/Cheese: By Educational Attainment, 2002 (U.S. adults)
• Table 5-4a: Purchasing Indices for Gourmet Condiments/Cheese: By Age Bracket of Purchaser, 2002 (U.S. adults)
• Table 5-4b: Purchasing Indices for Gourmet Condiments/Cheese: By Age Bracket of Purchaser, 2002 (U.S. adults)
• Table 5-5: Purchasing Indices for Gourmet Condiments/Cheese: By Ethnic Group, 2002 (U.S. adults)
• Table 5-6: Purchasing Indices for Gourmet Condiments/Cheese: By Region, 2002 (U.S. adults)
• Table 5-7: Purchasing Indices for Gourmet Condiments/Cheese: By Household Size, 2002 (U.S. adults)
• Table 5-8: Purchasing Indices for Gourmet Condiments/Cheese: By Presence of Children by Age, 2002 (U.S. adults)
• Table 5-9: Purchasing Indices for Gourmet Condiments/Cheese: By Employment Status, 2002 (U.S. adults)
• Table 5-10: Purchasing Indices for Gourmet Condiments/Cheese: By Marital Status, 2002 (U.S. adults)

Chapter 6: Looking Ahead

Trends and Opportunities

• Easy Fixes
• Targeting the Hispanic Market
• A Snowball Effect in Cheese Types and Consumer Trial
• Bigger, Bolder, and More Exotic Flavors
• The Healthy Gourmet