• The Overall Market
• Scope of Report
• Criteria to Define Gourmet and Specialty Foods
• National Association for the Specialty Food Trade
• Total Retail Sales Almost $39 Billion in 1997
• Table 1-1: Retail Sales of US Gourmet/Specialty Foods by Product Category, 1993-2002 (dollars): Coffee/Tea, Cheese, Confectionery/Desserts, Pasta, All Other
• Market Composition
• Figure 1-1: Dollar Share of US Gourmet/Specialty Food Sales by Retail Outlet, 1997 (percent): Supermarkets, Gourmet/Specialty Stores, Other
• Factors Affecting Market Growth
• Thousands of Marketers
• Breakneck Product Introduction Pace Slows
• Most Distribution Through Specialty Food Distributors Consumer Interest Rising

The Coffee/Tea Category

• Products Distinguished by Quality, Price Points, Distribution
• Specialty Coffee and Tea Sales Top $25 Billion in 1997
• Coffee Marketers and Retailers Often One and the Same
• Flavored Coffees and Teas
• Retail Assortment
• Under 7% of Americans Shop in Specialty Coffee Stores

The Cheese Category

• Cheese and Dairy Products
• A $21 Billion Category
• About 300 Marketers
• A Complex Distribution System
• Fewer than 2% of Americans Shop in Specialty Cheese Stores

The Confectionery and Desserts Category

• Premium Confectionery, Cookies, and Desserts
• Sales Nearing $13 Billion
• Thousands of Marketers
• Chocolatiers Offer Upscale Ambiance
• Over 40% of Shoppers Buy Boxed Chocolates, But Few Buy Gourmet
• Brands

The Pasta Category

• Definition of Gourmet/Specialty Pasta
• Gourmet Pasta Sales $443 Million in 1997
• Factors Affecting Market Growth
• Hundreds of Marketers
• Merchandising and Display
• Two Distinct Consumer Groups Use Pasta Heavily
• Heavy Users of Dry Pasta Include High-Income Households
• Refrigerated Pasta Appeals Most to Upscale Consumers

Scope and Methodology

• Market Parameters
• NASFT Definition
• Report Methodology

II THE OVERALL MARKET
THE PRODUCTS

• Scope of Report
• Superior Quality Foods in Limited Distribution
• "Gourmet" and "Specialty" Used Interchangeably
• NASFT Definition
• Criteria to Define Gourmet and Specialty Foods

Background

• 1940s Set the Stage
• A Gourmet Culture Grows
• The New American Cuisine
• Regional Cuisines Come into Their Own
• The Ethnicization of American Cuisine

Product Categories

• Categories Parallel All Types of Foods
• Five Broad Product Categories
• A Wide Range of Condiments
• Other Products

Government Regulations

• Four Federal Agencies Have Regulating Responsibilities
• NLEA Regulations Affect Industry
• Retail Delis Are Affected
• State Officials Police Regional Food Claims

Industry Associations and Marketing Boards

• National Association for the Specialty Food Trade
• Foreign Government Marketing Boards
• State and Regional Development Organizations

THE MARKET

• Figure 2-1: Estimated US Retail Sales of Gourmet/Specialty Foods, 1993-1997 (dollars)

Market Size and Growth

• Market Difficult to Measure
• Total Retail Sales Almost $39 Billion in 1997
• Specialty Coffee and Tea Sales Top $25 Billion
• Specialty Cheese a $21 Billion Category
• Gourmet Confectionery and Desserts $13 Billion
• Gourmet Pasta at $443 Million
• Table 2-1: Estimated US Retail Dollar Sales of Gourmet/Specialty Foods by Product Category, 1993-1997 (dollars): Coffee/Tea, Specialty Cheese, Confectionery/Dessert, Pasta, All Other
• Gourmet Products Are 84% of All Foods

Market Composition

• Retail Sales by Product Category
• Figure 2-2: Dollar Share of US Retail Gourmet/Specialty Food
• Sales by Product Category, 1997 (percent): Coffee/Tea,
• Specialty Cheese, Confectionery/Dessert, Pasta, All Other
• Sales by Retail Outlet
• Figure 2-3: Dollar Share of US Gourmet/Specialty Food Sales by Retail Outlet, 1997 (percent): Supermarkets, Gourmet/Specialty Stores, Other
• Regional Sales of Gourmet/Specialty Foods
• Table 2-2: Regional Consumer Indices for Shopping at Gourmet Food Stores, 1997 (percent and index): Northeast, Midwest, South, West
• Gourmet/Specialty Food Sales by Season

Factors Affecting Market Growth

• "Gourmet" Becoming Mainstream
• Gourmet Foods a Small Indulgence
• Tastes Maturing Along with Age
• Ethnic Flavors a Driving Force
• Convenience Counts
• Gourmet Marketers Tap Into Home Meal Replacements
• Cooking as Entertainment
• Exchange Rates, Quotas Affect Sales

Market Projections

• Overall Sales to Top $54 Billion by 2002
• Table 2-3: Projected US Retail Dollar Sales of Gourmet/Specialty Foods by Product Category, 1997-2002 (dollars): Coffee/Tea, Specialty Cheese, Confectionery/Dessert, Pasta, All Other

THE MARKETERS

• Marketers
• Thousands of Marketers
• Most Firms Are Niche Marketers
• Prominent Marketers
• Major Food Companies
• Share of Market Not Determinable
• Selected Marketers
• Table 2-4: US Market for Gourmet/Specialty Foods: Selected Marketers and Their Brands (183 Marketers)

The Competitive Situation

• Many Cottage Businesses
• Small Firms Operate in Local Markets
• The Advantages of Small Size
• Problems of Growing a Business
• Recent Mergers and Acquisitions
• Mainstream Food Companies Participate Quietly
• Natural Foods Marketers Entering Business
• Housewares Marketers Expanding to Gourmet Foods
• An International Marketplace
• More Marketers American
• More American Firms Going Global

Trend Profile: Hormel Foods Corp

• Aggressively Entering Ethnic Specialty Foods Market
• Hormel's Pushes Integrated Ethnic Displays

Marketing Trends

• Strategic Product Placement to Avoid Slotting Fees
• Working the Web

Product Trends

• Breakneck Product Introduction Pace Slows
• Product Trends
• Chefs' Labels
• Vegetarian, Natural, and Organic
• The Heat Is Still On
• Mediterranean Foods
• New Rice Entries
• Latin American Flavors Moving North
• Coffee and Tea as Flavorings
• Other Notable New Condiments
• Not the Same Chip Off the Old Block
• Ostrich Salami
• Selected New Products
• Table 2-5a: US Market for Gourmet/Specialty Foods: Selected New Product Introductions, 1997
• Table 2-5b: US Market for Gourmet/Specialty Foods: Selected New Product Introductions, 1996

Packaging

• Inventive Packaging and Brand Names Key

Consumer Advertising Expenditures

• Little Consumer Advertising
• Most Major Advertisers in Supermarket Distribution
• Magazines the Primary Medium

Advertising Positioning

• Gourmet Ads Suggest Elegance
• History
• Testimonials from Chefs
• Examples of Consumer Advertising

Consumer Promotions

• Consumer Promotions Limited Due to Small Budgets
• In-Store Sampling
• Coupons
• Recipe and Cookbook Tie-Ins
• Interactive Promotions
• Joint Promotions
• Merchandise Promotions
• Examples of Consumer Promotions

Trade Advertising and Promotions

• Most Advertising in Trade Publications
• Trade Promotional Materials Abound
• Training Support
• NASFT Shows Are Major Trade Promotional Vehicle
• Other Trade Shows
• Public Relations Campaigns
• Examples of Trade Advertising and Promotions

DISTRIBUTION AND RETAIL

• Distribution
• Main Methods of Distribution
• Most Distribution Through Specialty Food Distributors
• Other Distribution Options
• Some Supermarkets Buying Direct
• Specialty Food Distributors
• Services Offered by Distributors
• Distributor Margins
• Major Specialty Food Distributors
• Table 2-6: Major US Gourmet/Specialty Food Distributors
• Mergers and Acquisitions
• Safeway Chooses One Distributor
• The Role of Brokers

Distributor Profiles

• Gourmet America: A Hormel Subsidiary
• Hagemeyer Foods North America, Inc

Retail

• A Wide Range of Retail Outlets
• Supermarkets Move Biggest Volume
• Gourmet/Specialty Stores

At the Retail Level: Supermarkets

• Upscale Supermarkets
• Integration vs Store-within-a-Store Department
• Slotting Fees
• Margins Are High
• Yet, So Can Be Costs
• Private Label
• Retailer Profile: Draeger's Supermarkets, Inc
• Retailer Profile: Rice Epicurean Markets

At the Retail Level: Gourmet/Specialty Food Stores

• Two Types: Generalists and Specialists
• Ambiance and Service
• Retailer Profile: Dean & DeLuca
• Retailer Profile: Trader Joe's

At the Retail Level: Department Stores

• Department Stores Less Important
• Retailer Profile: Dayton Hudson Corp

At the Retail Level: Mail Order

• Catalog Sales of Food Items Approach $1 Billion
• Mail Order Offers Advantages
• Types of Mail-Order Businesses
• Shopping the Internet

At the Retail Level: Other Outlets

• Warehouse Clubs
• Discount Stores
• Selections Expand Seasonally
• Farmers' Markets
• Retailer Profile: New York City's Chelsea Market

Retail Advertising and Promotions

• Retail Advertising
• Promotional Activities Common
• Sampling
• Cross-Merchandising
• Themed Events
• Newsletters
• Cooking Classes

THE CONSUMER

• The Consumer
• Consumer Interest Rising
• Notes on Simmons Market Research Bureau
• Simmons Specialty Store Profiles
• Fewer than 5% of Adults Shop in Gourmet Food Stores
• An Upscale Consumer
• Middle-Aged and Singles are Target Customers
• Northeast the Strongest Region
• Table 2-7: Demographic Characteristics Favoring Shopping in Gourmet Food Stores, 1997 (US Adults)
• 4% of Americans Buy Food by Mail or Phone
• Mail/Phone Food Appeals to Older Shoppers
• Affluence, Education Favor Mail/Phone Ordering
• Table 2-8: Demographic Characteristics Favoring Buying Food by Mail/Phone Order, 1997 (US Adults)
• The Internet Food Shopper

III THE COFFEE/TEA CATEGORY
THE PRODUCTS

• The Products
• Focus on Retail Market
• Products Distinguished by Quality, Price Points, Distribution
• Definition of Specialty Coffee
• Types of Specialty Coffees
• Estate Coffees
• Organic Coffees
• Flavored Coffees
• Whole Bean or Ground
• Specialty Teas
• Most Herbal Teas Excluded
• Estate Teas
• Leaf or Bags
• All About Chai

THE MARKET

• Figure 3-1: Estimated US Retail Sales of Specialty Coffee/Tea, 1993-1997 (dollars)

Market Size and Growth

• Difficult to Estimate Sales
• Specialty Coffee and Tea Sales Top $25 Billion in 1997 175
• Table 3-1: Estimated US Retail Dollar Sales of Specialty Coffee and Tea, 1993-1997 (dollars)
• Specialty Coffee Rings Up $23 Billion
• Methodology for Coffee Estimates
• Table 3-2a: US Retail Pound Sales of Specialty Coffee: By Retail Channel, 1996 (pound and dollars): Specialty Stores, Supermarkets, Mail Order, Mass Merchants
• Table 3-2b: US Retail Dollar Sales of Specialty Coffee: By Retail Channel, 1996 (pound and dollars): Specialty Stores, Supermarkets, Mail Order, Mass Merchants
• SCAA Estimates for Specialty Store Sales
• Specialty Tea Sales $220 Million
• Methodology for Tea Estimates
• Most Herbal Teas Excluded

Market Composition

• Coffee Outsells Tea 10:1
• Flavored Coffees the Most Popular Type
• Table 3-3: Specialty Coffee Sales Mix, 1999 Forecast (percent): 6 Types
• Specialty Stores Lead Retail Channels
• Table 3-4: Dollar Share of US Specialty Coffee/Tea Sales by Retail Channel, 1997 (percent): Specialty Stores,
• Supermarkets/Grocery Stores, Mail Order, Mass Merchants
• Specialty Coffee Sales by Region
• Specialty Tea Sales by Region

Factors Affecting Market Growth

• Americans Thirsty for Specialty Coffee
• Table 3-5: Growth in Specialty Coffee Retail Specialty Outlets, 1993-1999 (number and percent): Bean, Roaster, and Beverage Retailers
• Cafés Are Appealing Gathering Places
• Specialty Coffee an Affordable Luxury
• Specialty Coffee Savored at Special Occasions
• Coffee Pricing Can Be Volatile
• Tea a "Me Too" Category
• Newer Teas Driving the Market
• Could Teahouses Be Next?

Market Projections

• Retail Sales Will Near $32 Billion by 2002
• Table 3-6: Projected US Retail Dollar Sales of Specialty Coffee/Tea, 1997-2002 (dollars)
• Specialty Coffee to Top Canned Coffee by 1998

THE MARKETERS

• The Marketers
• Coffee Marketers and Retailers Often One and the Same
• Leading Marketers of Specialty Coffees
• Leading Marketers of Specialty Teas
• Table 3-7: US Market for Specialty Coffee/Tea: Selected Marketers and Their Brands (57 Marketers)

The Competitive Situation

• Many Marketers Are Also Retailers
• Competition from Mainstream Marketers
• Melitta, Perugina Major New Entrants
• Tea Market Fragmented

Competitive Profiles

• Starbucks Corp
• Brothers Gourmet Coffees, Inc
• Gevalia Kaffee Import Service (Kraft Foods, Inc)
• Celestial Seasonings, Inc
• The Republic of Tea

Marketing Trends

• Romancing the Products
• Teas Move Toward Estate Marks

Product Trends

• Flavored Coffees and Teas
• Cold Coffee Beverages
• Spicy Chai
• Single-Serve Coffees
• Table 3-8a: US Market for Specialty Coffee/Tea: Selected New Product Introductions, 1997
• Table 3-8b: US Market for Specialty Coffee/Tea: Selected New Product Introductions, 1996

Consumer Advertising Expenditures

• Gevalia, Starbucks the Leading Advertisers
• Starbucks Begins TV Ads

Advertising Positioning

• For Discriminating Palates

Consumer Promotions

• Sampling
• Mail-Order Plans Use Free Merchandise

Trade Advertising and Promotions

• Trade Advertising
• Trade Promotions

DISTRIBUTION AND RETAIL

• Distribution
• Several Methods of Distribution

At the Retail Level

• Specialty Retailers Crucial to Specialty Coffee and Tea Marketers Assortments
• Merchandising Critical to Quality
• Supermarkets Fight a Poor Image
• Sampling, Logo Merchandise the Usual Promotions
• Retailer Profile: Gloria Jean's Gourmet Coffee

THE CONSUMER

• The Consumer
• Fewer than 7% of Americans Shop in Specialty Coffee Stores Education, Occupation, Affluence Are Strong Predictors
• Prime Consumers Middle-Aged
• West the Prime Region
• Table 3-9: Demographic Characteristics Favoring Shopping in Specialty Coffee Stores, 1997 (US Adults)
• NCA Survey of Coffee Consumption

IV THE CHEESE CATEGORY
THE PRODUCTS

• The Products
• Cheese and Dairy Products
• Definition of Specialty Cheeses
• Types of Specialty Cheese
• European and Domestic Cheeses Have Different Characteristics
• European and Other Imported Cheeses
• Wisconsin Leads American Cheese-Producing States
• Cheese Spreads
• Other Gourmet Dairy Products
• Most Cheese Requires Refrigeration

THE MARKET

• Figure 4-1: Estimated US Retail Sales of Specialty Cheese, 1993- 1997 (dollars)

Market Size and Growth

• Many Dollar Sales Not Monitored Precisely
• National Cheese Institute Cheese Market Research Project A $21 Billion Category
• Table 4-1: Estimated US Retail Dollar Sales of Specialty Cheese, 1993-1997 (dollars)
• Methodology for Cheese Estimates

Market Composition

• No Accurate Breakout by Type
• Feta, Blue Cheese Show Strong Sales Increases
• Specialty Cheese Production Estimates Show Hispanic Cheeses Growing Fastest
• Table 4-2: US Market Size in Pounds of Selected Specialty Cheese Varieties, 1995 vs 1996 (pounds and percent): 9 Varieties Wisconsin Specialty Cheese Production Growing
• Table 4-3: Wisconsin Specialty Cheese Production, 1993-1996 (pounds and number): 9 Varieties and All Other Supermarkets Dominate Specialty Cheese Sales
• Table 4-4: Dollar Share of US Specialty Cheese Sales by Retail Channel, 1997 (percent): Supermarkets, Specialty Stores, Warehouse Clubs, All Other

Factors Affecting Market Growth

• Americans Eating More Cheese
• Table 4-5: US Per Capita Consumption of Cheese by Variety, 1992-1995 (pounds): 15 Varieties
• Fat Concerns Waning
• Increased Availability Driving Growth
• Stronger-Flavored Cheeses Finding an Appreciative Audience
• Restaurants Highlight Specialty Cheese
• Hispanic Cheese Products Moving Mainstream
• Import Restrictions
• European Importers Face Higher Prices
• Freight Another Cost Factor

Market Projections

• Specialty Cheese Sales to Reach $29 Billion by 2002
• Table 4-6: Projected US Retail Dollar Sales of Specialty Cheese, 1997-2002 (dollars)

THE MARKETERS

• The Marketers
• About 300 Marketers
• Few Major Marketers
• Table 4-7: US Market for Gourmet Cheese: Selected Marketers and Their Brands (41 Marketers)

The Competitive Situation

• Domestic Industry Composed Mostly of Small-Volume Producers
• American Artisan Cheeses Competing with Imports
• Some Large European Companies Have US Production
• Kraft Moving Away from Specialty Cheese

Competitive Profiles

• Bongrain SA, a French Company with US Presence
• BC-USA a Strong Marketer and Innovator
• Schratter Foods
• Waterbury Specialty Foods, Inc (Waterbury Holdings)
• Specialty Cheese Co

Marketing and Product Trends

• More Attractive Packaging
• Sheep's Milk Cheeses
• Flavored Cheeses
• Hybrids
• Table 4-8a: US Market for Gourmet Cheese: Selected New
• Product Introductions, 1997
• Table 4-8b: US Market for Gourmet Cheese: Selected New
• Product Introductions, 1996

Consumer Advertising Expenditures

• Little Consumer Advertising
• Besnier Takes to Television

Consumer Promotions

• Sampling the Most Common Promotion

Trade Advertising and Promotions

• Trade Advertising
• Most Promotions Are Standard
• Recipe Brochures

DISTRIBUTION AND RETAIL
Distribution

• A Complex Distribution System
• Distributors Often Package Cheese

At the Retail Level

• About 70% of Supermarkets Offer Specialty Cheese
• Merchandising and Display
• Service Boosts Sales
• Assortments
• Retail Margins
• Promotions

Retailer Profile

• Fairway

THE CONSUMER

• The Consumer
• One Out of Four Consumers Buys Specialty Cheeses on Impulse
• Fewer than 2% of Americans Shop in Specialty Cheese Stores
• One Out of Four Americans Shops in Deli Stores
• Affluence, Education, Professional Occupation Predict Propensity to Shop
• Cheese Stores Appeal Most to Middle-Aged Consumers
• Delis Appeal to Singles; Cheese Stores to One-Person Households
• Northeast the Strongest Region
• Table 4-9: Demographic Characteristics Favoring Shopping in Specialty Cheese Stores vs Deli Stores, 1997 (US adults)

V THE CONFECTIONERY AND DESSERTS CATEGORY
THE PRODUCTS

The Products

• Note on the Word "Specialty"
• Definition of Gourmet Confectionery and Desserts
• Scope of Category
• Confectionery
• Cookies
• Desserts

THE MARKET

• Figure 5-1: Estimated US Retail Sales of Gourmet Confectionery and Desserts, 1993-1997 (dollars)

Market Size and Growth

• Sales Nearing $13 Billion
• 1997 Confectionery Sales Estimated at $995 Million
• 1997 Packaged Cookie Sales Estimated at $205 Million
• $100 Million in Other Desserts
• Table 5-1: Estimated US Retail Dollar Sales of Gourmet Confectionery and Desserts, 1993-1997 (dollars): Confectionery, Cookies, Desserts

Market Composition

• Confectionery Dominates Sales
• A Broad Range of Retail Outlets
• Sales Peak at Holidays

Factors Affecting Market Growth

• Indulgence is Alive and Well
• A Profitable Category for Retailers
• The Gift Factor
• Coffee Boom Spurs Biscotti

Market Projections

• Sales to Near $17 Billion by 2002
• Confectionery Sales to Top $13 Billion
• Cookie Growth Will Slow
• Desserts in Stalemate
• Table 5-2: Projected US Retail Dollar Sales of Gourmet Confectionery and Desserts, 1997-2002 (dollars): Confectionery, Cookies, Desserts

THE MARKETERS

• The Marketers
• Thousands of Marketers
• Major Food Companies
• Leading Chocolate Marketers
• Leading Cookie Marketers
• Table 5-3: US Market for Gourmet Confectionery and Desserts: Selected Marketers and Their Brands (80 Marketers)

The Competitive Situation

• Little Brand Awareness
• Attractive Packaging Gives Marketers a Competitive Edge
• The Gold (and Black) Standard
• Marketers Accommodate Different Retail Channels
• Marketers Establish Presence with Boutiques
• Godiva Getting a European Slant

Competitive Profiles

• Chocoladefabriken Lindt & Sprungli AG
• Lindt/Ghirardelli
• Perugina Brands of America
• La Tempesta Bakery Confections, Inc

Marketing Trends

• Upscale Bulk Chocolate in Supermarkets
• Co-Branding and Branding

Product Trends

• Darker Chocolates
• Small Indulgences
• Coffee And
• Have a Cigar
• Table 5-4a: US Market for Gourmet Confectionery and Desserts: Selected New Product Introductions, 1997
• Table 5-4b: US Market for Gourmet Confectionery and Desserts: Selected New Product Introductions, 1996

Consumer Advertising Expenditures

• Several Marketers Use Consumer Ads

Advertising Positioning

• Emphasizing the Gift Aspect
• Authenticity and Nostalgia
• Ferrero's Double-Entendre

Consumer Promotions

• In-Store Sampling
• Joint Promotions

Trade Advertising and Promotions

• Trade Advertising
• Most Promotions Are Standard

DISTRIBUTION AND RETAIL

• Distribution
• Several Methods of Distribution
• Some Marketers Use All Methods
• Warehousing
• Perishable Products Air-Shipped

At the Retail Level

• Gourmet Stores Strong
• Chocolatiers Offer Upscale Ambiance
• European-Style Service
• Department Stores
• Supermarkets a Minor Outlet
• Factory Outlet Stores
• Retailer Profile: Lindt & Sprungli (USA), Inc

THE CONSUMER

• The Consumer
• Over 40% of Shoppers Buy Boxed Chocolates, But Few Buy Gourmet Brands
• Most Buy Boxed Chocolates as Gift
• Data on Purchasers of Gourmet Brands Strikingly Uniform
• Gourmet Chocolates Appeal Most to Affluent Consumers
• Age the Greatest Distinguishing Factor Among Brands
• Table 5-5: Demographic Characteristics Favoring Purchase of Boxed Chocolates by Brand, 1997 (US adults): Godiva, Lindt, Perugina

VI THE PASTA CATEGORY
THE PRODUCTS

• The Products
• Definition of Gourmet/Specialty Pasta
• Different Shapes
• Different Shapes Also Have Visual Appeal
• Flavor and Color Variations
• Dry and Refrigerated

THE MARKET

• Figure 6-1: Estimated US Retail Sales of Gourmet Pasta, 1993- 1997 (dollars)

Market Size and Growth

• Gourmet Pasta Sales $443 Million in 1997
• Dry Pasta Sales $235 Million
• Refrigerated Pasta Sales $208 Million in 1997
• Table 6-1: Estimated US Retail Dollar Sales of Gourmet Pasta, 1993-1997 (dollars): Dry Pasta, Refrigerated Pasta

Market Composition

• Sales Split Between Dry Pasta and Refrigerated Pasta
• Most Pasta Sales Take Place in Supermarkets
• Pasta Sales by Season
• Pasta Sales by Region

Factors Affecting Market Growth

• Two Distinct Consumer Groups Use Pasta Heavily
• Marketers Expanding Gourmet Offerings
• Per Capita Consumption Rising
• Pasta Growing in Popularity at Home and in Restaurants
• Convenient and Easy to Prepare
• Pasta Perceived as a Healthy Food
• Refrigerated Pasta an Affordable Indulgence
• Short Shelf Life a Liability for Refrigerated Pasta

Market Projections

• Market to Reach $556 Million by 2002
• Dry Pasta Will Continue Growing Rapidly
• Table 6-2: Projected US Retail Dollar Sales of Gourmet Pasta, 1997-2002 (dollars): Dry Pasta, Refrigerated Pasta
• Refrigerated Pasta Growth Flat

THE MARKETERS

• The Marketers
• Hundreds of Marketers
• Large Marketers Multinational or Italian
• Small Marketers Privately Held
• Table 6-3: US Market for Gourmet Pasta: Selected Marketers and Their Brands (33 Marketers)

Marketer and Brand Share

• Four Gourmet Dry Pasta Marketers Have Notable Supermarket Penetration
• Nestlé, Kraft Lose Refrigerated Pasta Share

The Competitive Situation

• The Role of Small Marketers
• Several Specialty Companies Merge
• American Marketers Wage War on Low-Priced Imports
• Premium Italian Marketers Use Aggressive Advertising
• Refrigerated Pasta Cools

Competitive Profiles

• Barilla Invading America
• Nestlé USA Buys Into the Market

Marketing and Product Trends

• The Push to Supermarkets
• Unusual Flavors Continue to Proliferate Fun Shapes
• New Twists on Traditional Shapes Upscale Kits
• Table 6-4a: US Market for Gourmet Pasta: Selected New Product Introductions, 1997
• Table 6-4b: US Market for Gourmet Pasta: Selected New Product Introductions, 1996

Consumer Advertising Expenditures

• Three Marketers Big Ad Spenders

Advertising Positioning

• Italian Pastas Are Better
• California's Finest
• Refrigerated Pasta Tastes Fresher

Consumer Promotions

• Price Promotions
• Coupons
• Recipes
• Sports Sponsorship

Trade Advertising and Promotions

• Trade Advertising
• Most Promotions Are Standard
• Recipe Brochures
• Display Racks

DISTRIBUTION AND RETAIL

• Distribution
• Pasta Distributed via Standard Grocery Paths
• Refrigerated Pasta Distributed by DSD

At the Retail Level

• Supermarkets Crucial to Pasta Marketers
• Merchandising and Display

THE CONSUMER

• The Consumer
• Gourmet/Specialty Consumer Not Tracked Separately
• Almost 90% of Americans Use Dry Pasta
• No Significant Demographic Factors for Dry Pasta
• Heavy Users
• Heavy Users Include High-Income Households
• Table 6-5: Demographic Characteristics Favoring Use of Dry Pasta: All Users vs Heavy Users (US Principal Shoppers)
• About 22 Million Shoppers Use Refrigerated Pasta
• Table 6-6: Demographic Characteristics Favoring Use of Refrigerated Pasta (US Principal Shoppers)
• Refrigerated Pasta Appeals Most to Upscale Consumers
• ACNielsen Refrigerated Profile Quite Different

APPENDIX I: EXAMPLES OF CONSUMER AND TRADE
ADVERTISING AND PROMOTIONS I-1

APPENDIX II: ADDRESSES OF SELECTED MARKETERS II-1