Producers look to expanding specialty foods market
BY DONNA McCONAUGHEY
TRUESDELL
Staff Correspondent
MANCHESTER, N.H. -
Speciality foods a market who’s
time has come. That was the
conclusion drawn from the
“Spotlight on Specialty Foods”
workshop conducted as pact of
New Hampshire’s annual Farm
and Forest Expo.
The New Hampshire Depart
ment of Agriculture is looking at
the production of speciality foods
as a new aspect of the agricultural
industry. Other states in New
England have encouraged
producers to organize and learn
from each other as they pursue this
expanding marketplace.
The popularity of specialty foods
has developed as the prominence
of regional cooking has expanded.
Particularly strong is the demand
for foods that emphasize native
traditions. Between two and three
billion dollars were spent across
the nation last year in specialty
foods sales.
If agriculture responds to this
interest, a new opportunity for
profit may be found. Specialty
foods have achieved a 20 percent
growth rate in the past year and
the demand continues to rise. By
pursuing this market, agriculture
will be responding to the urban
demand.
The significance of food in one’s
life is changing today. “Currently
the food one eats is a statement
reflecting one’s personality”, says
Lynda Brushett of Niche
Marketing. “Homemade, real food
is important,” she notes. People
today want the old-fashioned,
homestyle foods that were ex
pected in the past. However, most
people don’t have the time to
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prepare them so they are willing to
pay for these items.
In fact, serving homemade, real
food is a sign of affluence todav By
adapting this philosophy,
Americans have established af
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via the foods they eat and serve.
These changes represent a
potential and virtually untapped
market for the agricultural in
dustry. People want to go back to
the farm, the place the crop was
produced and buy a producer
finished product.
Many city dwellers can not get to
the producer, so they turn to a
store that specializes in this old
fashioned, homestyle type of
product. Ron King, proprietor of
Anthron’s Fine Food Market in
Concord, NH, strives to offer just
this service. His store is very
successful despite the prices of his
foods, which are much higher than
those in the typical grocery store.
During the workshop, Ron spoke
with producers about how to
produce a market specialty foods
from a retailer’s point of view. He
provided a practical list of
requirements that must be met to
produce a successful product.
The quality of the product is the
first priority. Ron tastes
everything he sells. He believes
there is a “homemade taste” that
is easily recognized. He recom
mends using only high quality
ingredients which will increase the
quality of the taste. Because taste
is so important, only Ron pur
chases products which the
producer will provide samples of.
Price is important since it must
be appropriate to the product and
its quality. However, people will
pay more for a higher quality
product.
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The way the product is presented
can influence its success. The
labeling should be easy to read and
still allow view of the product
Colorful, attractive graphics on a
label can improve it also.
Packaging must be designed in
such a way as to present the food in
an appetizing manner.
In addition to the product itself*,
other aspects are analyzed. Is
there a reliable supply of the
product? Have the production
facilities met any state inspection
and licensing requirements?
Another strong point is if the
producer is willing to get involved
in marketing the product. This
may be done by providing pomt of
sale brochures and information on
how to prepare the product and
serve it.
Providing extra amounts of the
product to be used for sampling in
the store will help in selling the
item. If the location permits, it is
even better to go to the store and
pass out samples. This provides an
opportunity to meet and educate
the public and hopefully sell them
on the specialty food.
Ron King emphasizes that some
extra time must be invested u- thr
beginning to establish markets. By
working with retailers and
assisting them in promoting the
product, both retailer and
producer will benefit.
Another way to market specialty
foods is through mail-order
catalogs. Lawson Hill, author of
How to Build a Millionaire Mail-
Order Business From Someone
Who Did, addressed the keys to
producing a successful catalog. He
recommended designing the
catalog to give the best product the
best exposure. This is often on the
front cover. In fact, the cover will
sell three times more than
anything inside the catalog, claims
Lawson.
Good eye flow and ease of
reading is important in the
designing of a catalog. If a “Z”
pattern is followed with the most
important items lying in that
pattern and a high contrast or
large size picture or image is in the
upper left comer of the page, it will
be easiest to read and will attract
more interest.
Lawson recommends telling
about your business near the front
of the catalog. He believes this,
along with “sincere, meaningful,
good strong copy” throughout the
catalog will keep people in it.
Mail order trade in specialty
foods is a very attractive op
portunity, but it takes much hard
work. Mike Satzow of Claremont,
New Hampshire’s North Country
Smokehouse, says there are big
startup costs in advertising and
developing mailing lists. He
believes it takes about five years
for a catalog effort to pay off.
Lawson Hill suggests a
minimum three year plan of profit,
loss, and cash flow projections
prior to attempting production of a
catalog to determine whether it
would be a wise financial move in
the production of specialty foods.
As with any business, financial
management in the production of
specialty foods can be critical to its
success as is the quality of the
product produced. A business plan
is the first step in this process. This
plan should include the purpose of
the business and its goals as well
as financial data
Michelle Sweet, business analyst
for the University of New Hamp
shire Small Business Development
Center, recommends taking ad-
ff,
vantage of programs offered by
local Chamber of Commerce
groups and small business
organizations. She believes “if you
fail to plan, you plan to fail” when
starting a new business.
Sweet also offered these
suggestions on how to get the
product into a market. Call the
company and get the name of the
buyer who would handle the line
that this product would fit into.
Call the buyer and introduce
yourself and ask if a sample may
be sent. Send the sample and any
information about the business or
the product itself. Then followup
and check the response to the
product. If not accepted try again
in three months asking if perhaps
the company’s strategies or needs
have changed.
If this method is not effective,
make friends with the secretary.
Sweet has found that secretaries
do influence decisions made in a
business and can be a positive ally
on your side.
Alan Parker, president of the
Vermont Gourmet and Specialty
Foods Association, suggested
trade shows and food fairs as good
methods of contacting retailers.
However, the cost of participating
in these can be as much as $2,500.
For beginning businesses, he
suggested establishing key
relationships with a few retailers
so that the progress of the product!
can be observed. This also allows I
for changes to be made asi
necessary early in the process of)
marketing the food item. '
Parker warns that the specialty |
foods industry is a “damnably
trendy” business. He recommends
watching the trends carefully, i
maintaining a high quality product |
(Turn to Page D3O)
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