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GOURMET RETAILER MAGAZINE JUNE 1, 2006

GOURMET RETAILER MAGAZINE JUNE 1, 2006

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Merchandising A World of Foods: Ethnic Foods Spice Up Sales

By Michelle Moran

JUNE 01, 2003 -- Italian Evolution -- Gourmands point to Italian cuisine as the mother of regional marketing. Once upon a time, Italian food was considered to be one cuisine category. While the average American considered pizza and lasagna typical Italian dishes, foodies, so to speak, delved further into the country, and commenced celebrating typical Tuscan dishes as traditional Italian food. It wasn't until recent years that emphasis on the full scope of Italian cuisine has undergone an awakening.

"For a long time, Italy was Tuscan," explained Sarah Freedman-Izquierdo, gourmet grocery and cheese buyer for Miami-based Epicure Market. "It took a long time to realize that there is so much more to discover. Now we understand that Italy is Sicily, Umbria, Venice � there are depths to each region and it has to be marketed that way."

New York City-based Citarella's is capitalizing on its Italian roots. Although the specialty grocery store offers a variety of products, Specialty Buyer Joe Macaluso is promoting the Italian-owned and -operated six-store operation as the source for Italian products in the New York/New Jersey region.

"Our ethnic marketplace focuses primarily on European and Asian influences. Even though we've always had a wide range of worldwide products, I've really tried to put the emphasis on Italian and French influences," Macaluso said. "We try to take note that Citarella's is the premier Italian market in the New York area. We're really trying to play that up now."

Macaluso's current focus is on cheese. His efforts to introduce new Italian cheeses to consumers and restaurants alike are supported by the ITC (Italian Trade Commission) and importers.

"We really highlight artisanal authentic Italian cheeses that have never been introduced to this country before," Macaluso said. "It's odd that so many Italian cheeses are not acknowledged. I want to expose more regional Italian cheeses to this country, such as an extra-aged Piave from Italy's Veneto region. I believe it's the next Parmigiano-Reggiano. A cow's milk from a different region, it's more of a table cheese than an eating cheese with a pleasing taste, an intricate start with a bite that ends extremely buttery."

Macaluso is also promoting wine-washed Umbriaco cheeses, one washed with Prosecco and the other with Amarone. Two additional cheeses doing well for Citarella's are a washed-rind goat's milk cheese from Caprella in Piedmont and Roccolo, a washed-rind cow's milk from Lombardi. To familiarize the public with the new introductions, Macaluso created a promotion with Citarella's restaurant division, inviting the media, area chefs, food aficionados, and grocery customers to the event hosted partially by the ITC.

"We focused on the cheeses and accompaniments corresponding with in-store promotions," he explained. "It was something that helped the restaurants, the stores, the importers, and the producers of the cheese and cheese accompaniments. It benefited everyone and made consumers more aware of things they didn't know about. Most of these small importers are little guys like me and I like to help them. There are truly unique products out there that are what I think keep the gourmet industry going. Otherwise, everything is commonplace; I mean who wants to see another balsamic vinegar? You have to have a story behind the product and explain why where it is from is important."

Complementary products promoted at the event and in-store included Cotognata (quince paste) and Mostarda (a fig or pear preserve with a touch of mustard oil).

The marketing effort was supported at store level as well with samplings and descriptive signage created by Macaluso.

"A major part of our selling has been through signage," he continued. "What we're trying to do is explain the story of the cheese to the customers and give them serving suggestions from wine to food accompaniments. My signage descriptions explain the pairings, whether it's glazed figs or molasses. We have a celery jam from the Piedmont region called Dolchezo de Cedano for example, that goes really well with Vento d'Estate."

Macaluso encourages the promotion of products both inside and outside the store. He believes educating the customers is the initial step in promoting product. Citarella's sponsored a spot with 710 WOR Food Talk radio personality Arthur Schwartz who raved about the Italian products at the store, thereby further establishing Citarella's as an authority in authentic Italian cuisine.

"We have another event scheduled with the ITC for Grana Padano and Proscuitto di San Daniele. These are products that are less well known than Parmigiano and Proscuitto di Parma, so we're tying to help them become more recognizable and explain the differences between them and their competitors. They are just as good in most aspects and in some cases, have a lower price point. Our goal is to make consumers familiar with new products � to understand their viability and great quality."

Gourmet Grandfather

Though French food is, of course, another gourmet industry staple, still new products need to be introduced and specialty retailers would be remiss if they didn't give this category the updated attention it deserves.

Macaluso searches out new French products in underdeveloped categories. He recently brought in a line of shelf-stable French apple juice called Tourraine Jus de Pomme that's made from Granny Smiths and a Golden varietal.

"I like to look at these ethnic categories differently," Macaluso said. "In the past, we knew Italy for their olive oils, vinegars, and preserved items, but not for their cheeses. I am looking to Italy for its relatively unknown artisan cheeses and to France for its shelf-stable grocery items."

French products finding success in Citarella's include nougats and torrons.

"We do a tremendous job with the nougats and torrons. We have a lot of variations of torrons and even produced it ourselves," Macaluso said. "They were once thought of as strictly a holiday item, but are now selling year-round."

National Growth

While Italian and French foods continue to hold their shares of the gourmet marketplace, new cuisines are enticing the American palate. High-quality artisanal products from Asia, the Middle East, Spain, Germany, Australia, and the Caribbean are making their marks at the checkout stand. While Asian cuisines are hotter than others, cuisines like Moroccan and Indian are also starting to flex their proverbial muscles. While their popularity is increasing, these cuisines truly require demonstration and promotion for consumers to grasp their ingredients' flavors and subtleties.

"Ethnic cuisines are a great category for us," commented Rita Garlington, product promotion coordinator for Los Angeles, Calif.-based Trader Joe's. "We have customers who are food savvy. They've traveled and recognize the items when they come in. When they see them in our store, they get excited. People think it's an adventure to come to our stores � it's like a mini vacation."

Trader Joe's promotes its ethnic ingredients through flyers with recipes and product information. In addition, products are promoted on its Web site, along with printable recipes. Each store has an information center with in-house recipes and ingredient information, as well as vendor handouts.

Last year, the specialty food store chain promoted Mario Batali's new pasta sauce with in-store demonstrations and visits from Batali himself.

"He came and signed bottles and talked to people," Garlington said. "Some stores had lines of people."

Freedman-Izquierdo also finds that ethnic cuisines constitute an expanding category.

"Asian cuisines have seen rapid growth over the past two years. Moroccan definitely has been a theme for the past year and a half, while Indian is picking up. We've also seen good-quality Spanish products being introduced by small importers. It's really changing the direction of our Spanish lines," she said.

When Freedman-Izquierdo refers to Spanish products, she is specifically referring to Spain. When you're promoting ethnic products, it's very important to be specific in your educational materials and merchandising. For instance, Spanish products and Latin American products are distinctly different. While ingredients may cross over, food preparation differs and regional subtleties exist. Just as with Italian foods, regional differences abound within Spain. From Segovia's roasting tradition to the stews of Madrid to the Celtic influences of Atlantic Spain, each region possesses its own flavors and customs.

"I don't regionalize it � yet. I don't think people really understand there are different styles of Spanish cooking. It took a long time for Italy to establish itself regionally," Freedman-Izquierdo said. "At some point, I agree that it will start to become more specific because Spain is really doing some cutting-edge food preparation and I think the world is beginning to take notice."

Freedman-Izquierdo keeps abreast of upcoming trends by reading periodicals and traveling abroad. One publication she finds particularly informative is Spain Gourmetour.

"It's been great at showing us different new products and new cooking methods," Freedman-Izquierdo explained. "The Spanish are working outside the normal framework and opening up new methods for cooking food. I think Spain and Australia are on the cutting edge food-wise."

Freedman-Izquierdo's own instincts also determine product selection.

"I personally travel and I grew up a food freak in a food-freak family. I stay aware of cuisines and ingredients," she explained. "You see something once and you're intrigued. You see it more than once, and you know something is going on. That's how we find trends. Most of the time, we're ahead of the curve. We got heavily into cocoa and vanilla years ago. Also, we're constantly in touch with our vendors and we realize if they are picking it up, there must be something going on with Europe and sooner or later, it will get here."

Freedman-Izquierdo trusts her specialty importers who bring her great new items they've discovered in their travels.

She continued, "They get really great stuff and it's packaged well. Products from importers who really study specific markets and know the source of the products they import are wonderful. These products move well. They are not just delicious, they're artistic products. For example, Enric Rovira chocolates are simply beautiful. There are products that sell with a simple taste. Marcona almonds, for example, sell insanely well."

Once the product is brought into the store, the real work begins. Explaining new items to Epicure customers is accomplished via merchandising and demos.

"Creating a cookbook inventory is something that's really helped expand the nationalities of our food," Freedman-Izquierdo said. "We added cookbooks to our grocery department about three years ago and now we sell a ridiculous amount of cookbooks."

Cookbooks increase sales twofold. First, there are the book sales themselves. Secondly, customers can't help but look at them while shopping and consequently become inspired and hunger for the contents.

"Even if they aren't following the recipes, they are looking at the pictures for ideas and in turn may find something on our shelves to work with," Freedman-Izquierdo said. "We'll copy recipes for anyone who wants the recipe but not the book."

Aside from cross-merchandising cookbooks and specialty ethnic ingredients, Epicure employees give thoughtful consideration to the creation of new product displays. The store has six merchandising "cupboards" that are always filled with promotional products.

"We create total displays. If, for example, a Power-Selles shipment comes in, we'll create a cupboard display with all of their products arranged with a special paper liner underneath and different enhancements to generate attention. Our displays are subtle, but attract attention. We don't want the accoutrements to overpower the beauty of the product," noted Freedman-Izquierdo.

Products moved from the displays flow into the general merchandising areas. Some products may be merchandised in two areas of the store.

Freedman-Izquierdo explained, "We have a discussion as to where product removed from these areas should go so that it doesn't lose attention. The question often is, 'Where does it fit?' Sometimes, it belongs in several categories. For example, we might take an Asian dressing and display it both in the dressing area and in the Asian section."

According to Freedman-Izquierdo, the store's relationship with its customers is what really sells the products. Her customers rely on store employees to know their tastes and be willing to walk to a shelf, pull something off of it, and hand it over for a taste. She joked that sometimes her customers aren't thrilled to see her walking down the aisle toward them because they know they'll be trying something new that they just might have to buy.

"If we love something, we'll push it whether our public is ready for it or not. We brought in olive-oil tortas four or five years ago. When we first brought them in, no one had heard of them, yet we sold them like crazy," she explained. "The only way to get things into the shopping carts is through tasting. You can talk all you want and people will say, 'That's interesting.' When you make them salivate, you've got a sale."

One Taste is Worth a Thousand Words

The success of specialty ethnic ingredients relies on tastings. Whether it's Umbriaco cheese, Styrian Pumpkin Seed Oil, or Hawaiian Alaea Sea Salt, nothing demonstrates a product's qualities more succinctly than a taste.

"We have great demonstrators who get people to taste new products and excite them," Freedman-Izquierdo said. "Demos help develop all new areas of tasting in your mouth and get people accustomed to new flavors. There are so many things we offer today that no one wanted years ago � products like saffron, anise, and really nice stinky cheeses."

Garlington agreed, "Generally, our demo people are our first line in getting product information out to customers. We do very well with Asian, as well as items from the Middle East. We have a very strong demo program in our stores and these people really do a bang-up job demonstrating new ingredients."

Trader Joe's holds demonstrations from dawn to dusk, seven days a week. In addition, each store uses end-cap displays that feature a complete ethnic story. Sections within each aisle are dedicated to specific cuisines, such as Mexican, Indian, Middle Eastern, Asian, and Italian.

An average of 1,200 customers walks the aisles of Epicure Market daily. If demonstrations aren't in progress, the staff is encouraged to introduce new products to customers themselves.

"We have a large staff and they are very familiar with our customers. They will open up a package of anything they know a particular customer will love. So even if there isn't a demo going on, we understand the importance of our customers tasting new things," Freedman-Izquierdo concluded.

Shoot for the Moon

The rising cuisine stars have varied backgrounds. For example, Caribbean foods are a blend of African, Indian, Chinese, and Amerindian influences. The Romans, Moors, and Aztecs all influenced Spanish cuisine. The resulting fusion cuisines are then further tweaked by today's celebrity chefs.

While this complex history could create a merchandising nightmare at retail, specialty retailers can turn this intricate fabric to their advantage. When merchandising Caribbean foods for example, create a display as richly complex as the people who live there. Incorporate cookbooks such as A Taste of the Tropics: Traditional & Innovative Cooking from the Pacific & Caribbean by Jay Solomon (July 2003, Ten Speed Press/Celestial Arts), which takes home chefs along the equator on a culinary journey through Cuba and Aruba to Hawaii and Indonesia, along with The New World Kitchen: Norman Van Aken's Latin American & Caribbean Cuisine by Norman Van Aken (April 2003, HarperCollins Publishers), which pays tribute to the rich Latin American influences so prominent in southern Florida, from the African-influenced Creole cuisines of Cuba, Puerto Rico, and Jamaica, to South American cuisines from Brazil, Peru, and Argentina, to the distinct tastes of Mexico. By dissecting and interpreting specific cuisines for your customers, you can better merchandise a wealth of ingredients from various regions that may be used to create a mix of ethnic cuisines.

Most specialty food importers will provide in-depth explanations of the products they sell to you. Some importers offer monthly or quarterly newsletters, so be sure to read them not only to keep abreast of new products and trends, but also to discover nuggets of information you can use in your own newsletters or in-store signage. Complement your in-store campaigns with local promotions. Follow Citarella's example and sponsor a local culinary expert. Begin a public relations campaign by setting your sights on a specific cuisine, learning every aspect of it, stocking all of its implements, and promoting yourself and your store as the local expert on the cuisine. Demonstrate that expertise with cooking classes (either on-site or in conjunction with a local restaurant) and by submitting recipes and culinary columns to local food editors. If you find it difficult to wax poetic, simply create suggestions for articles and submit them to your food editor, along with recipes and cookbook recommendations.

Finally, be sure your customers understand the ethnic ingredients inhabiting your store. While you may compare discovering a fantastic Italian celery jam to tapping a vein of gold, your customers will leave the product lingering on the shelf if they don't understand it. Be sure to create descriptive signage for new product introductions, as well as conduct regular tastings. Remember, nothing speaks better of a new product than the moans of titillated customers sampling scrumptious items in the aisles, perhaps mumbling "bah-hut mah-ze-daahr taah�"
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