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SOUP soup STIRRING UP THE category To ensure soup’s success, it must be seen as more than just a pantry staple. By Nicholas Rider. W hile soup has served as a staple for many, particularly through the cooler months, consumers are now demanding much more. IBISWorld Senior Industry Analyst Suzy Oo tells Retail World that several “well- entrenched” brands in the category, such as Continental and Campbell’s, are perceived as pantry staples by many Australian consumers. Over the past five years, however, she says rising health consciousness has affected revenue generated from soup. “Consumers have become increasingly conscious of the ingredients that go into their food products, with some individuals actively reducing their consumption of highly processed foods,” she said. “Canned soups in particular tend to be high in sodium and fat content, which has caused many consumers to shift away from these products. “Producers have attempted to retain consumer interest through the expansion of specialty, reduced salt and lower calorie soup ranges. The Heinz Soup of the Day range is an example of this trend, where flavoured soup products are packaged in pouches and marketed as a premium alternative to traditional canned soups. Growth in the number of specialty soup options at the retail level, combined with rising premiumisation trends, is driving demand for higher margin soup products.” Pandemic push for healthy and local It’s fair to say that Covid-19 has had a significant influence on most FMCG categories, offering opportunities and challenges along the way. Discussing its impacts on soup, Ms Oo says the pandemic and associated grocery panic-buying behaviour bolstered category sales, with soup’s affordability and long shelf life appealing to consumers seeking to stockpile essential items. “However, many supermarkets and grocery stores, including Woolworths and Coles, imposed purchase limits on these highly sought-after products, and this is expected to have curbed significant growth in packaged soup sales during the lockdown periods,” she said. Commenting on packet soup, Flavour Makers Senior Brand Manager Heath Dickson says that, like all pantry categories, packet soup attracted a “large bump” in sales during Covid-19 in 2020. “With many consumers stuck at home but still busy with work, soup was a go-to for people who were looking for a quick healthy option,” he said. The pandemic, according to Mr Dickson, has also made Australians more conscious about the food they’re consuming and the brands they’re supporting. “The impact of this means soup products need to be healthier than before and ideally locally made,” he said. “Brands such as \\\[Flavour Makers’\\\] Australian Organic Food Co, which uses 100 per cent Australian organic ingredients, are perfectly positioned to grow.” Another company promoting the local aspect is South Australian Gourmet Food Company, whose soup sales are claimed to be “growing nicely”. “South Australian Gourmet Food Company provides consistently high- quality food products using only the very best harvest,” Marketing Director Dean de Villiers said. “We support Australian farmers by using their produce in our products, and we produce as sustainably as possible by using 90 per cent less TO PAGE 26 24 RETAIL WORLD JUN, 2021