BY A.

ELIZABETH SLOAN

Flowering tea from Numi Tea, Inc. slowly blossoms into breathtaking shapes
when steeped. Freshly picked white, green, and black tea leaves are flattened
while damp and sewn with cotton thread into elaborate designs, which are
then shaped into balls, mushrooms, or cones. The teas then go through drying,
oxidation, and firing processes.

pg 20 07.06 • www.ift.org

ING
GOURMET
GO
From display teas and seasoned skewers to fair-trade fruit, more consumers
and retailers are ‘trading up’ to gourmet and specialty foods.
G
ourmet and specialty foods
are going mainstream in
supermarkets, restaurants,
and large mass merchandisers.
McDonald’s offers an Asian salad,
sports arenas sell organic hot dogs,
and Wal-Mart’s new supercenter
in Plano, Tex., features high-priced
wines, gourmet cheeses, sushi, and
natural pet food—and the company
plans to add 400 organic SKUs, too.
Harris (2005) reports that 96%
of Americans buy premium goods
in categories that are important
to them, and few segments get
more personal attention than food.
The Boston Consulting Group
(2005) estimates that 122 million
adults—excluding those in affluent
households with income greater
than $150,000—have the means
and desire to “trade up.”
Premium, Please
More-adventuresome eating; an
unprecedented level of culinary,
health, and environmental aware-
ness; and a feeling of entitlement
among overwhelmed and over-
worked Americans have caused
gourmet and specialty food sales to
outpace their traditional counter-
parts in 26 of 30 food categories
(Table 1; Mintel, 2006).
Specialty food sales hit $34.7
billion in 2005, up 29% from
2003–05 (Mintel, 2006). Packaged
Facts (2005a) expects the gourmet
food/beverage market to top $62
billion by 2009; 19% of adults are
considered true gourmets.
Natural/organic food sales
reached $28.3 billion in 2005, up
12% vs 2004. Organic foods, up
17%, grew four times faster than
natural foods since 2003 (Packaged
Facts, 2006). By 2010, natural
food sales are projected to reach
$13 billion; organic foods $33 bil-
lion. Organic food sales reached
$13.8 billion in 2005 (NBJ, 2006).
New product introductions in
gourmet, health food, and specialty
stores totaled 5,168 in 2005, up 25%
from 2000 (Mintel, 2006). Pet and
baby foods had the most new prod-
uct activity over the past five years.
New confectionery introductions
jumped 116%; beverages 60%, and
fruits/vegetables 52%. New product
activity fell 52% in soups, 18% in
sauces/seasonings, and 26% in dairy.
S TAT E- OF -T HE- INDUS T RY R E P OR T
Half of supermarkets are experi-
menting with organic formats and
25% with new ethnic concepts,
although 66% already have gourmet
sections, 57% natural/organic,
and 89% ethnic. Upscaling is
easy—94% already offer prepared
takeout, and 86% have a bakery,
69% a coffee bar, and 49% a sushi
station (FMI, 2006a; 2005). Mass
marketers sell 72% of specialty
foods and 45% of organic (Mintel,
2006; NBJ, 2006).
As restaurants upscale their
menus to attract today’s more-
adventuresome consumers, they
will accelerate the demand for spe-
cialty foods. A dramatic increase
in use of Curbside-to-go take-out
programs from more-sophisti-
cated full-service restaurants
and a trend among family diners
to trade up to causal-dining res-
taurants instead of fast food will
help introduce Americans to
more upscale fare at a younger
age. Immigrant Americans looking
for authentic ingredients will also
drive growth.
Demographic changes will
inadvertently reorient the market
07.06 • www.ift.org 21 pg
 Table 1. Sales of top 10 specialty foods categories in 2005. From Mintel (2006).
Category
Condiments
Juices and functional beverages
Cheese
Coffe, cocoa
Chips, pretzels, snacks
Carbonated functional and RTD tea and coffee drinks
Sauces, salsa, and dips
Tea
Milk, cream, and other dairy
Candy and individual snacks
toward those groups most inter-
ested in specialty foods—the 73
million Gen Yers age 12–29 and
the 76 million Boomers age 42–60
(Sloan, 2005).
Those age 25–44 are the most-
frequent purchasers of specialty
foods and the most likely to shop
ethnic stores (Purcell, 2006; FMI,
2006). Those age 18–34 most
enjoy ethnic foods, and most want
All-natural gourmet salts are available from Artisan Salt Co. in 24 varieties, the
top-selling six of which are shown here.
pg 22 07.06 • www.ift.org
Sales % Change
($ million) from 2003
4,651 0.6
1,343 51
1,160 28
1,063 37
991 21
919 66
859 4 cialty food category, followed by
822 8 frozen/shelf-stable/refrigerated
801 48
766 4
to eat gourmet every day. Those
age 35–49 most prefer foods with
lots of spices (Simmons, 2005).
Budget-minded young adults
most often buy specialty snacks,
candy, desserts, chocolate, and
affordable ethnic foods and bever-
ages—specialty teas, coffees,
sodas, and authentic ethnic drinks.
Young, more-affluent, two-career
couples usually buy specialty
sauces, flavored basics, and gour-
met prepared/packaged foods
(Purcell, 2006).
With more than half of
Boomers cooking dinner five days
a week and Empty Nesters enter-
taining more at home, gourmet
main-meal components, appetiz-
ers, desserts, and healthy, high-
quality convenience foods hold
the highest appeal (FMI, 2006).
Boomers are most interested in
ingredients, authentic regional
foods, and a formal food presenta-
tion style (Packaged Facts, 2005b).
Gen Xers and Yers, especially
males, shop natural and organic
stores more often than any other
group, and single males are twice
as likely to shop natural food stores
(FMI, 2006).
Specialty Foods
With sales of $4.7 billion in 2005,
condiments are the largest spe-
juice and functional beverages at
$1.3 billion, cheese/cheese alterna-
tives $1.2 billion, coffee/coffee
substitutes/cocoa $1.1 billion,
chips/pretzels/snacks $991 mil-
lion, and ready-to-drink (RTD)
teas/coffees $919 million (Mintel,
2006).
Sales of specialty juices/func-
tional beverages grew 51% from
2003–05, RTD coffee/tea 66%.
Smaller categories also grew—spe-
cialty bread/baked foods 148%,
water 61%, yogurt/kefir and other
dairy 50%. Specialty condiment
sales fell 4.8% in 2005. Specialty
seasonings and oils rose 3.1% and
3.3%, respectively (Mintel, 2006).
With year-round grilling and
healthier eating in mind, interest
in rubs and spice blends is booming
(Denis, 2006). Although American
regional blends are currently back
in vogue, Indian, Moroccan, and
African seasonings are coming on
strong.
Powdered green tea, cocoa—
such as in Diva Chocolates’ Spicy
Cocoa Rib Rub—and coffee have
high appeal to the growing number
of female grillers, as do dessert
rubs for grilled fruit. Liquor-
infused, fruit and spicy or nutty
marinades like Napa Valley’s
Consorzio Kitchen’s Sesame Orange
or Mango Cilantro and charred/
roasted flavored rubs are other
strong trends.
Regional sauces such as Wild
Thymes’ Tuscan Tomato Basil

Vinaigrette; wing-specific sauces like
Wing-Time USA’s all-natural line;
Annie’s Naturals’ organic Artichoke
Parmesan and Goddess dressings; and
a unique new multi-purpose Spicy
Vinegar Sauce from Wewoff’s are
other new directions.
Artisan Salt Co. sells 24 variet-
ies of all-natural, gourmet salt,
including Cyprus Flake Mediterranean
and Alaea Hawaiian Sea Salt. Blessac
Rainbow Salt’s Truffle Salt is sea salt
mixed with dried black truffles.
Horizon offers Smoked Crystal Salt
Flakes.
GlobeTrends’ LeSpice Grind Fresh
Spice Mills are 13 blends of spices
ready to grind. Callison’s Seasoned
Skewers impart bold flavors such as
Honey Bourbon and Citrus Rosemary to
roasts or shish-ka-bob. Consumers
can change the heat of Dave’s
Gourmet, Inc.’s Adjustable Heat Hot
Sauce by turning the cap.
Odell’s Chef’s Butter offers
Seafood Butter, Popcorn Butter, and
Clarified Butter, and Meyenberg has
a new Goat Milk Butter.
Robert Rothschild Farms set
a new pace for cheese dips with
its Hot Pepper Peach Cheese Ball
Dip, with peach preserves. Emmi
Fondue created a cheese-specific
fondue line, including Gorgonzola
and Cheddar Cheese.
The cheese-producing countries
currently in vogue are Spain, Italy,
Mexico, Israel, Portugal (with
cheeses such as Queso de Tetilla)
and Germany (with Hirtenkäse, a
herdsman’s silage-free cheese).
Solex Autentico produces 500-g
baby wheels of 100% sheep and
goat milk Spanish cheeses—per-
fect for tapas.
Wisconsin’s cheesemaker
Seymour Dairy Crest™ created
an Ader Käse, similar to German
Cambozola or Montagnolo cheese,
while neighboring Hook’s devel-
oped an original Sweet Constantine
cheese, with the essence of
Parmesan and flavor notes of
Asiago.
Wisconsin’s BelGioioso fresh
Mozzarella comes in easy-to-
slice rolls. Bertozzi’s Parma Sticks
are snack sticks “plugged” from
Parmigiano Reggiano wheels.
Straus Family Creamery’s
organic milk in nostalgic glass
bottles, Nancy’s Whole Milk Honey
Yogurt, and Lifeway Foods, Inc.’s
new Greek-Style Kefir are creating
specialty excitement.
Liquid Gold
Sales of superpremium fresh juices
are expected to hit $1.4 billion by
2008 (Ingram, 2006). Cal Giant’s
Just Strawberries delivers two serv-
ings of fruit per 8-oz glass, while
Kagome’s Golden Peach Garden and
Burgundy Berry Blossom juices, which
mix red and yellow fruits/veg-
etables, boast high anthocyanin,
antioxidant, and phytonutrient
levels. Lakewood’s 100% organic
Fresh-Pressed Limeade gets a premium
for its handmade appeal. Bossa
Nova Beverage Group launched a
pure acai juice.
As Americans shift away from
sugary sodas, premium flavored
waters devoid of calories, artificial
flavors, sweeteners, or colors—
like Soma Beverage Co.’s MetroMint
Peppermint Water, Hint, Inc.’s
all-natural essence waters, and
Trinity Spring’s organic flavored
waters—are enjoying brisk sales.
Ultra-pure naturally sourced
waters such as Icelandic Glacial’s
Icelandic Spring Water continue to
dominate the category. However,
enhanced waters such as Meridan
Beverage Co.’s Calcium Fortified
AquaCal are coming on strong.
Premium waters for kids, such as
Maddie’s Beverage Co.’s Wateroos in
colorful juice boxes and Trinity Kids
bottled water with Natural Fluoride
are other growing segments.
Specialty sodas are another hot
category. Fizzy Lizzy added a Fuji
Apple flavor to its line, and Reed’s
added a special Bavarian Nutmeg
version of Virgil’s Root Beer.
S TAT E- OF -T HE- INDUS T RY R E P OR T
Gourmet fruit-based cocktail mixers becoming popular include Stirrings’
Simple Cosmopolitan all-natural cranberry and lime juice mixer and
accompanying cocktail-glass “rimmer.”
Rush Beverage Co.’s Rush
Ginseng Cola is an energy drink
made with Wisconsin ginseng. Sol
Maté Beverage Group’s Sol Maté is
an organic sparkling “jitter-free”
energy beverage with yerba maté.
E-Water pure spring water has more
than 50 electrolytes.
Lightfull Foods developed a 90-
calorie, all-natural Lightfull Satiety
Smoothie. Odwalla has a new soy-
based Super Protein Latte, and Sibu’s
Sibu Balance high-antioxidant drink
features seabuckthorn fruit.
Display teas are all the rage
in the $822-million specialty tea
market (Mintel, 2006). Mighty
Leaf Tea Co. created Mighty Leaf
Artisan-Crafted Whole Leaf Tea
Pouches to elevate the tea experi-
ence. Each hand-made artisan
cluster of Adagio Teas’ Drop a Tea
Blossom unfolds in water, revealing
a delicate hidden flower. Numi Tea,
Inc.’s Flowering Tea slowly blossoms
into breathtaking shapes when
steeped.
Naturally brewed, fruit iced
teas are another strong trend. GSC
Gourmet’s Tea Collection includes
packets of Black Tea with Cranberry
and Fuji Apple, ready to be mixed
into bottled water. Numi’s Organic
Iced Tea packets contain whole leaf
tea and dried fruit and herbs—Fair
Trade certified and GMO-free—
ready to make authentic naturally
brewed iced tea. »»
07.06 • www.ift.org 25 pg
 The Republic of Tea added Get
Gorgeous Herb Hot Tea for Clear Skin
and Get Charged Herb Tea for Energy
to its medicinal tea line. Honest
Tea introduced an organic, diet,
RTD, single-serve tea, 10-calorie
Tangerine Green Tea. Carrington
Tea’s Nutra-Tea combines glu-
cosamine and chondroitin with
steepable green tea.
Sales of specialty coffee,
coffee substitutes, and cocoa
reached more than $1 billion in
2005, up 37% from 2003–05
(Mintel, 2006). Exotic sourcing
and Fair Trade practices remain
cornerstones of the specialty coffee
market. Coffee can be certified
as sustainable in three ways: “Fair
Trade,” which assures fair treat-
ment and wages for workers and
farmers; “bird-friendly/shade-
grown”; and “certified organic.”
Rogers Family Co.’s Audubon
Premium Shade Grown Coffee is
“Certified Shade Grown” by the
National Rainforest Alliance and
provides support for the Audubon
Society.
Whole-bean specialty cof-
fees continue to take share from
ground. Coffee extracts are also
gaining in popularity. Java Juice’s
all-natural, Fair Trade Black Gold
Pure Coffee Extract has as much caf-
feine as a double shot of espresso
and can be added to recipes.
Chocolate and coffee blends are a
strong flavor trend and collide in
Japan’s Ito En’s new Café Sepia™,
RTD natural coffee in 6.4-fl-oz
metal bottles.
Low-acid coffees such as
Puroast Low Acid Coffee are finding a
welcome niche. Café Senora is pure
organic Arabica coffee with higher
antioxidant levels than green tea.
Coffee alternatives are also get-
ting specialty attention. SoyFee is a
no-caffeine,100% organic soy cof-
fee. Organic Works’ Teeccino Maya
Herbal Coffee is a certified-organic,
caffeine-free coffee alternative,
wild-harvested and made from
pg 26 07.06 • www.ift.org
barley, chicory, and ramon nuts.
Caffé Botanica coffee is made from
100% Arabica beans infused with
calcium.
Flavored beverage syrups and
elixirs are another fast-emerging
trend. DaVinci Gourmet’s Carrot
Cake, Caramel Pecan, and Simple
Syrup are also available in sugar-
free form.
Specialty spirits and mixers
are another fast-growing category.
Flavored and inventive spirits
generated more than $550 million
in supermarket sales, up 11% in
2005. Wine rang up $4.3 billion in
sales, up 9.4% (Brager, 2006).
Heineken Premium Light Beer and
Beck’s Premier Light are creating a
luxury light beer category. Peels, a
100%-natural alcoholic beverage
for women, is flavored with 100%
fruit juice in Pear and other flavors.
Fruit-based mixers and gour-
met drink-glass “rimmers”—such
as Stirrings’ Simple Watermelon
Martini™ and Watermelon
Rimmers—are now strong specialty
store staples.
Decadent Delights
Decadent desserts usually cre-
ate the most excitement within
specialty foods, and the Great San
Sabar River Pecan Co.’s Pecan Pie
In-A-Jar and Tortuga’s Rum Cakes
made with 5-year-old Tortuga Rum
are no exception. Cia Bella Gelato
Co. offers a Blood Orange Sorbet.
For an international twist, try
Power-Selles Imports’ Matiz Torta
de Aceite Olive Oil Crisp Bread Sugared
with Almonds or La Artesana’s hand-
made and imported Pears in Red
Wine or Nuts in Pure Mountain Honey
from Spain.
Convenient specialty desserts
are also gaining ground. Achatz
Handmade Pie Co. says its fresh-
frozen Michigan Berry is its best
seller. Cake ’n Cup Kits make diffi-
cult recipes, like Lemon Meringue Pie
and Crème Brulee, a breeze. Najla’s
Inc.’s Gone Chunky cookies are all-
Savory biscuits, Salem Baking Co.’s Cocktail
Companions, are available in a variety of gourmet
flavors and designed to be enjoyed with a cold
beverage.
natural, premium, ready-to-bake
cookies, hand-shaped and frozen
on individual baking parchment
rounds.
Sales of gourmet candy and
chocolate rose 24% from 2003 to
2005 (Mintel, 2006). But today,
they are more likely to be individu-
ally packaged, made with fruit or
nuts, be the dark-chocolate high-
antioxidant variety, and even be
sugar-free.
Country of origin remains
a strong driver in premium
chocolates. Fran’s Chocolates Ltd.’s
Chocolate from the Source bars fea-
ture single-origin chocolate from
various parts of the world. San
Francisco Wine Co. pairs premium
chocolates with wine and coffee
in its Wine Lover’s and Coffee Lover’s
Collections.
Bissingers Handcrafted
Chocolatiers use fruits and nuts
in its Spa Chocolate Collection. Torn
Ranch, Inc.’s T-Bar™ nutrition
bar and Tea Truffles are made with
European dark chocolate and green
tea. SunSpire sells Fair Trade
Organic Dark Chocolate Blueberries.
Fruit, boldly flavored, and
 S TAT E- OF -T HE- INDUS T RY R E P OR T

ultra-thin gourmet cookies are Table 2. Sales of natural and organic foods in natural food stores in 2005. From Spencer (2006).
driving sales. Flathau’s Gourmet
Cookies’ Snap Pack comes in Category All products Organic products
Peppermint and Raspberry. Salem Total sales % Change Total sales % Change
Baking Co.’s Moravian Cookies, in ($ million) from 2004 ($ million) from 2004
Cranberry Orange and Moravian Produce 2,968 13.2 2,137 12.8
Black Walnut, claim to be the Packaged grocery 2,480 10.3 1,356 16.5
“World’s Thinnest Cookies.”
Dairy 1,188 11.1 857 12.0
Salem’s Shortbread Straws come in
Piña Colada. Dancing Deer Baking Frozen/refrigerated 1,154 13.7 306 19.0
Co.’s Maple Pecan Shortbread Nuggets Foodservice 961 12.9 107 30.4
are made with whole-grain white Nutrition bars 911 8.5 89 33.9
wheat, and Byrd Trading Co.’s
Chinese Tea Cookies are made with Snack foods 708 14.0 274 15.7
hand-picked Chinese tea leaves. Fresh meat, seafood 706 13.5 114 67.4
Sales of specialty crackers, eth- Nondairy beverages 571 10.6 483 6.2
nic crisps, and rice cakes—up 10%
Beer/wine 494 11.0 89 34.5
in 2003–05—are trending toward
whole grain, heritage grains such Other beverages 479 12.6 213 32.9
as spelt and quinoa, and very bold Bakery 356 11.9 112 23.6
flavors (Mintel, 2006). Coffee/tea 305 11.0 176 16.7
American Vintage Wine
Biscuits, made with wine, boast
strong savory flavors like Chianti, with Goat Cheese to Organic Chipotle sunflower kernels, pepitas, and
Oregano & Crushed Red Pepper. Salem Chili Barbeque. Lundenberg Family more. Overlake Foods Corp.’s line
Baking Co.’s Cocktail Companions Farms offers Bean & Rice Chips. of dried cherries and blueberries
are biscuits in Grilled Vegetable Native Kjalii Foods introduced contains no sweeteners, additives,
Parmesan and Almond Fig & Balsamic Native’s Chocolate Covered Tortilla or oils.
Vinegar flavors. Chips and Thick-cut Tortilla Chips. All-natural Sweet Roasted
John WM Macy’s Foods’ Kettle Foods’ new Baked Pretzel Chestnuts Smart Snack from Saraya
twice-baked sourdough Chips are “pretzels for the potato Canada Co. Ltd. and Barmier’s
CheeseSticks are available in Dijon chip lover.” Healthy Snacks’ 100% Grab an Olive packs of fresh olives
Swiss flavor and dessert SweetSticks organic Bare Fruit line includes are other gourmet snacks.
in Java Cinnamon flavor. Aunt Bake-Dried Cinnamon Apple Chips.
Gussie’s Cracker Flats are large, flat The popcorn category is facing Natural Supermarkets
crisp crackers made from organic off with indulgent Dale & Thomas’ Food sales at natural product
wheat and whole-grain spelt flour. Peanut Butter with White Chocolate retailers (Table 2; Spencer, 2006)
La Panzanella LLC’s Croccantini Drizzlecorn Popcorn vs LesserEvil’s reached $14.4 billion in 2005, up
are crunchy, “little bite” Italian all-natural, low-fat, high-fiber 12.1% from 2004, with all food
crackers in savory Fennel and Heart Healthy MaplePecan Kettlecorn categories posting double-digit
Rosemary. My Family Farm created with plant sterols. Corazonas growth except nutrition bars
organic Surf Snacks Pizza Baked Foods offers heart-healthy tortilla (Table 2; Spencer, 2006). Of this
Crackers for kids. chips with whole oats and plant total, half was for organic products
Koeze Co.’s award-winning sterols. (up 16.5%). Natural product retail-
Cream-Nut Natural Peanut Butter and Snackmasters offers Ahi Tuna ers saw organic fresh meat and
Clearbrook Farms’ Oregon Marion jerky and Wild Alaskan Salmon jerky. seafood sales grow 67% to $114
Blackberry Preserves are perfect on The 97%-fat-free, gourmet-cut million. Organic nutrition bars,
crackers. beef jerky is sliced from top-round beer and wine, “other beverages,”
Specialty chips, pretzels, and beef. and foodservice all grew in excess of
snacks grew 21% in 2003–05 Sales of specialty nuts, seeds, 30%. Organic pet products jumped
(Mintel, 2006), and creative flavors dried fruits, and trail mixes 37.5% to $65 million. Natural
and healthier options set the pace. increased 31% in 2005 (Mintel, stores outsold supermarkets in the
Kettle Foods brand Potato Chips fla- 2006). No Nuts! from Enjoy Life organic bread and canned fruits/
vors range from Roasted Red Pepper Foods is a nut-free trail mix with vegetable categories. »»
07.06 • www.ift.org 29 pg

Organic frozen meals, such as Spicy Peanut Noodles with Vegetables & Tofu from
Seeds of Change, are becoming increasingly available.
For the first time since 1999, natu-
ral product retailers saw double-
digit growth at 10.9% to $25.5 bil-
lion (Spencer, 2006). Whole Foods
Market led chain sales, up 22.4%
over 2004 with sales of $5.03 bil-
lion, followed by Wild Oats.
Pet food led the “Top 10
Growth Categories” for organic
food sales in natural stores—up
141% over 2004, albeit from a
small base—followed by crack-
ers/crispbreads up 103%, energy
bars/gels 73%, frozen/refrigerated
meats, poultry, and seafood 67%,
meal replacements/powders 56%,
cookies/snack bars 47%, candy
47%, coffee 35%, oils 34%, and
soup 29% (Spencer, 2006).
New ethical issues and buzz
words are emanating from the
natural food channel. Forty-one
percent of primary food shoppers
in 2005 said it is important or very
important for their store to carry
Fair Trade Certified foods (up 30%
from 2004)—expect fruit to be
the next Fair Trade commodity—
50% the USDA Certified Organic Seal
(up 58%); and 48% products that
are from farms with a commitment to
sustainable agriculture (up 24%). In
2005, 61% of shoppers said they
wanted their store to carry hor-
pg 30 07.06 • www.ift.org
mone-free foods (up 6% from 2002),
60% antibiotic-free foods (up 3%),
and 53% artificial color, flavor, and
preservative-free foods (up 6%); 52%
wanted foods without genetically
modified ingredients (up 7%), 48%
wanted products with GMO ingredients
labeled (up 6%), and 44% wanted
foods that were not irradiated (up
10%) (NMI, 2006b).
Packaged produce sales rose
26% in natural stores in 2005
(Spencer, 2006). Earthbound
Farm’s new Organic Single Serve Grab
& Go Salad Kits make healthy eating
a snap.
Ready-Pac’s premium Bistro
To Go salads, packaged in clear
compartmentalized containers
that separate ingredients, come in
Cob, Chef, and other recipes. Dole
introduced Fresh Makes™ fresh
Veggie Pasta Salad Kits, and Seapoint
Farms’ new fresh Veggie Blends
feature edamame.
Sales of specialty shelf-
stable and frozen fruits/vegetables
increased 23% in 2005 (Mintel,
2006). Jarred fruit, premium
canned fruit, and frozen fruit/veg-
etables are driving the category.
Cascadian Farm’s new “gourmet
boxed” frozen organic vegetables
include Asparagus Cuts and Broccoli
Florets.
Sales of natural, organic, and
premium meats are also exploding.
In addition to providing super-
premium cuts and more exotic
meats such as bison, ostrich, and
heritage turkeys, specialty market-
ers are upgrading the flavor profile
of regular premium and natural
meats/poultry, focusing on value-
added frozen and pre-prepared
fresh items.
Kayem Foods’ McKenzie Country
Classic Turkey Breast is available in
Raspberry Honey and Cherrywood
Smoked flavors, and its Al Fresco Apple
Maple Natural Chicken Sausages are
made with apple chunks and pure
Vermont maple syrup.
Di Lusso Deli Co., part of
Hormel Foods, is rolling out
Italian-style Roast Beef, Double
Smoked Ham, and Rosemary & Sun
Dried Tomato Turkey—all free of
MSG, artificial colors, and flavors.
Topps sells premium frozen
Sirloin Steak Burgers with Portabella
Mushrooms.
Creekstone Farms markets
all-natural, pre-marinated sirloin
tips in Chipotle Citrus and Cajun-style
and frozen All-Natural Black Angus
Beef Burgers in Garlic & Herb. Laura’s
Lean Beef added an all-natural,
cook-and-serve meatloaf.
“Clean” deli meats are another
fast-emerging trend. Applegate
Farms introduced antibiotic-,
gluten-, nitrite-, hormone-, and
casein-free deli Sliced Roasted
Chicken and Chipotle Chicken Breast
and an Organic Stadium-Style Hot
Dog. Shelton’s introduced Ground
Free-Range Turkey.
Meat alternatives are gaining,
too. Turtle Island Foods, Inc.
introduced a Tofurky Chipotle Frank,
Tofurky Kielbasa, and Beer Brats with
Microbrewed Full Sail Ale. Made
with soy protein, they’re 100%
Certified Vegan.
Seafood sales had a tough year
in 2005, up 1.8% in specialty chan-
nels, according to Mintel (2006),
while Information Resources
Inc. reports that unit sales of
frozen fish/shellfish fell 9.28% in
mass markets for the year ending
2/12/06, refrigerated fish/seafood
3.66%, canned tuna 11.6%, and
canned salmon 12.2% (Uhland,
2006). While specialty shoppers
continue to opt for wild-caught,
line-caught and organic premium
fish/seafood, mercury in seafood
is still of grave concern. Eco Fish,
Inc. introduced the country’s first
premium-quality canned tuna
and salmon independently tested
for mercury and PCBs. In May
2005, 60% of consumers were
very/extremely concerned about
mercury in seafood (NPD, 2005).
Dry grocery is the second big-

gest section in natural food stores.
Racconto introduced Whole Grain
Kamut, Spelt, Buckwheat, and other
pastas; Hogson Mills introduced
Certified Organic Lasagna Noodles with
Flax Seed; and Eden offered Organic
Spelt Udon Noodles.
Beans, grains, and rice spe-
cialty sales grew 26% in 2003–05
(Mintel, 2006). Lundberg
Family Farms’ new microwav-
able RiceXpress brown rice mixes
are ready in 60 seconds. Lotus
Foods added Tiny Aromatic Brown
Rice imported from Bengal. Eden
Organics’ new organic canned Rice
& Beans line is produced exclu-
sively from family farms in the
United States.
Cascadian Farm’s new Great
Measure™ premium organic ready-
to-eat cereal is designed to provide
nutrients essential for dieters.
Perky’s 100% natural Nutty Rice
cereal is “sweetened with fruit
juice and honey.”
Bread/baked goods sales rose
12.5% in natural stores in 2005
and 148% in specialty stores in
2003–05, although it is a small
specialty segment, and sales of bak-
ing mixes, supplies, and flour grew
8% (Spencer, 2006; Mintel 2006).
Alexia Foods added all-natural,
frozen, fresh-baked artisan breads,
including Ciabatta and Three Cheese.
King Arthur Flour’s Whole Grain
Mixes now include organic muffins,
pancakes, and scones.
Ironically, food sensitivities are
helping alternative grains such as
spelt and amaranth and other gluten-
free products move center stage.
Enjoy Life’s Soft Baked Chewy Chocolate
Chip Cookies are free of the top eight
allergens, including nuts and gluten,
and are made in a dedicated bakery.
Arico Natural Foods launched
all-natural gluten- and casein-free
snacks and bars and cookies high in
fiber, calcium, and protein. Kitchen
Table Bakers’ Handmade All Parmesan
Jalapeño Gourmet Wafer Crisps are
wheat- and gluten-free.
Soup is another specialty
staple. Fairfield Farm Kitchen’s
Moosewood premium organic
vegetarian/vegan refrigerated
soup line includes a new low-fat,
low-sodium Hungarian Vegetable
Noodle Soup. Muir Glen Organic
introduced canned soups, includ-
ing Hearty Tomato. Fantastic World
Foods’ dried-soup cups have added
new flavors, including Southwest
Tortilla Bean Soup.
Sales of freshly prepared, high-
quality frozen meals and ethnic
dried grocery kits continue to
soar. Kashi is entering the market
with all-natural, high-fiber, high-
protein, premium meals in Lemon
Rosemary Chicken and Lime Cilantro
Shrimp versions. Seeds of Change
added Spicy Peanut Noodles, Creamy
Spinach Lasagna, and Spicy Yucatan
Frijoles & Vegetables to its line of
certified-organic frozen ready-
made meals.
Fairfield Farm Kitchen’s
Organic Classics premium frozen
dinner line added Lemon Chicken
Piccata with Wehani® Rice, and
Guiltless Gourmet offers new
frozen Guiltless Gourmet Wraps,
including a Four Bean Chili Wrap.
Cedarlane’s new frozen well-
ness line of Dr. Sears Zone all-natu-
ral foods include burritos, pizzas,
omelets, and other main entrees,
all formulated to the “Zone” ratio
of fat, carbs, and protein, with
300–380 calories.
And the demand for fresh
products in the specialty channel
continues to grow. Simply Asia is
moving into the produce section
with Simply Asia Stir-Fry Chow Mein,
available in four restaurant-style
varieties, including Spicy Kung Pao
and Mandarin Orange with fresh
noodles, vegetables, and signature
sauces. FT
A. Elizabeth Sloan, a Professional Member of
IFT, is President, Sloan Trends & Solutions,
Inc., P.O. Box 461149, Escondido, CA 92046
(sloantrend@sbcglobal.net).
S TAT E- OF -T HE- INDUS T RY R E P OR T
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Brager, D. 2006. Proof positive. Pro-
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Denis, N.P., 2006. Rubs, brines &
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FMI. 2005. Facts about store develop-
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07.06 • www.ift.org 33 pg