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PASTA & SAUCE FROM PAGE 27 Investment in specialty products According to Australian family-owned pasta brand San Remo, healthy pasta alternatives are in strong demand from consumers. “We know Aussies love pasta, and the growth in specialty pasta products over recent years, like our Pulse Pasta range for example, shows they’re hungry for more,” San Remo Chief Marketing Officer Erik de Roos said. “Over the past year, we’ve seen a significant increase in the number of Australians asking for healthy pasta alternatives. Because of this, we’re pleased to offer two pasta varieties, San Remo Pasta Pro and San Remo Fibre Fest, that combine nutritious benefits with quality and taste.” The new varieties, which comprise San Remo’s ‘Performance’ range, are promoted as high protein, low carbohydrate and vegan friendly. “Our new Performance Pasta gives shoppers another way to enjoy more of the food they love, while also balancing their specific nutritional goals,” Mr de Roos said. To help raise awareness of the products, San Remo has aligned with Australian TV personality and chiropractor Tim Robards and AFLW Premiership player and AFL commentator Abbey Holmes as ambassadors. Sauces stabilise In 2020, the pasta sauces category grew 18.8 per cent in value and 10.8 per cent in unit volume. However, the category has contracted in the MAT to 4/4/21 (by 0.9 per cent in value and 6.9 per cent in units) which is related to the panic buying in March and April of 2020 (IRI Woolworths and Coles scan data year 2020 and MAT to 4/4/21, supplied by Mutti Australia). The total combined pasta sauce category size is worth $295 million in RSV MAT to 4/4/21. By segment, pizza sauce attracted the strongest growth (21.6 per cent in value and 18 per cent in units), followed by pesto (17.5 per cent and 17 per cent, respectively) passatas (10.6 per cent and 5.3 per cent) and pastes (4.7 per cent and 1.3 per cent). The pasta sauce segment declined by 9.6 per cent in value and 17.3 per cent in unit volume. In 2020, Mutti was the fastest growing brand in major grocery (Woolworths and Coles) with 75.9 per cent value growth and 61.8 per cent volume growth. Mutti Australia Managing Director Trish Pegorer says the results demonstrate the consumer shift to buying premium products, driven by the need to use these in scratch cooking. “From our observations, there’s been a significant shift in consumer behaviour post Covid-19, with a rise in scratch cooking and desire for premium, local and better-for-you alternatives,” she said. “In the pasta sauce category in Australia, this has manifested in a shift to base ingredients such as passata, pizza sauces, pestos and tomato pastes – all growing ahead of total ‘pasta sauce’ within the broader pasta sauces category.” Across the pasta sauce category, Leggos led dollar growth, contributing 30 per cent of the total growth, followed by Dolmio (18 per cent) and Mutti (17 per cent). Mutti is the leading passata brand in major grocery with 34.8 per cent market share at MAT 7/3/21. Ms Pegorer says Mutti’s vision is to be the preferred premium tomato brand among consumers globally. “Mutti is the number one tomato brand in Italy and Europe and the fastest growing large consumer goods company in Italy, growing 22 per cent in 2020,” she said. “Mutti has transformed a commoditised category in canned tomatoes with a focus on buying and using only the best tomatoes and quality ingredients.” Push for premium Nielsen has referred to the impact of Covid-19 on Australian households and spending as the development of a “two-speed economy”, while IRI has described it as “value dichotomy”. The point, says Mutti’s Ms Pegorer, is that we’re witnessing the creation of two distinct households groups in Australia, which impacts the pasta sauce category. “Households are being classified into constrained or insulated,” she said. “Constrained households have been most affected by loss of employment or income, while insulated households aren’t broadly impacted from this perspective, but more so by government restrictions on lifestyle and spending. “While constrained households are seeking value offerings, the insulated are able to spend a little more on smaller luxuries. This manifests in the pasta sauce category with the continued growth of more premium segments and assortments.” To maintain the growth of premium segments within traditionally commoditised categories, continuing to inspire in-store, in kitchen and at the table is important, Ms Pegorer adds. “The communication and engagement strategies deployed during the path to purchase at all touchpoints is critical, none more so than on the shelf (whether it be in-store or online). Continuing to provide sufficient visibility of accessible premium offerings, like Mutti, is key, as well as ensuring the right ranging in the right stores.” Education is a vital factor, Ms Pegorer says, particularly around raising awareness of products that are sustainability sourced, better for you and/or better quality. “We know 50 per cent of premium buyers are willing to pay more for better quality,” she said, “so it’s important to communicate these product attributes beyond product packaging.” “We know 50 per cent of premium buyers are willing to pay more for better quality,so it’s important to communicate these product attributes beyond product packaging.” Mutti will launch five new lines into Woolworths, including a range of three 100 per cent Italian Sugo (pasta sauces) in Parmigiano-Reggiano, Basil, and Chilli variants, as well as two “authentic” pizza sauces. “We’re very excited about the launch of the pizza sauces, as the range plays a key role in premiumisation of the segment and accelerating the already incredibly strong growth on pizza sauce,” Ms Pegorer said. “Our insights show that pizza sauce has penetration in only 22 per cent of households, so, by launching this NPD, Mutti is focused on bringing new customers into the category. 28 RETAIL WORLD JUN, 2021