Get in the Gluten-Free Game
As awareness of celiac disease and gluten allergies increases, the market for gluten-free products does as well. According to the October 2012 report “Gluten-free foods and beverages in the U.S.” from the Packaged Facts division of Rockville, Md.-based MarketResearch.com, approximately 6 percent of the U.S. population — or 18 million people — suffer from some form of gluten sensitivity.
The report goes on to estimate that the U.S. market for gluten-free products will grow to about $6.6 billion in 2017 from $4.2 billion in 2012. With national brand gluten-free products selling for a premium, store brands have a substantial opportunity to attract and retain loyal consumers of gluten-free products by offering a wide variety of reasonably priced, great-tasting products.
Be convenient, committed
Consumers of gluten-free products desire convenient shopping, finding the products they need and want during one visit to one store, explains Elliot Dutra, president, The Raymond-Hadley Corp., Spencer, N.Y., and if a retailer falls short here, the consumer will go to the competitor. Not only will the consumer buy her gluten-free products there, but she will buy the rest of her groceries there as well, he adds.
Irwin Katz, president of Toronto-based inBRANDS Foods Inc., agrees that all too often, consumers of gluten-free products are forced to shop in specialty food stores because they don’t find the kind of variety, taste and nutrition that they are looking for in a traditional grocery store. Retailers should view this need for convenience as a great opportunity to expand their private label gluten-free product ranges and to draw and keep consumers in the store, Katz adds.
Address three consumer needs
And new store brand products here should meet today’s consumer wants and needs: reasonable prices, great taste and — perhaps most important — gluten-free certification on the package. Consumers of gluten-free products take third-party certification very seriously because it ensures their well-being. Many consumers won’t take a chance with their health and safety, Katz says, so they refuse to buy anything that hasn’t been certified gluten-free. It all boils down to trust, he adds.
“Remember: If you don’t have certification, you don’t have gluten-free products. Even if you are a gluten-free brand, if you don’t have certification, a large segment of the population won’t buy your product,” Katz says.
Dutra recommends keeping it simple with the logo of a third-party auditor (such as the Gluten-Free Certification Organization or the Celiac Sprue Association) clearly displayed on the front of the package and then deferring all possible technical questions to that auditor.
Any gluten-free brand also must ensure that safety is of paramount importance to its gluten-free manufacturer because that will ultimately determine the brand’s success or failure, says Jonathan Walters, director of sales and marketing, Nu-World Foods, Naperville, Ill. If the product ever breaks that trust with the gluten-free community, the backlash within that community can be devastating to the brand, he adds.
Gluten-free pricing is another hurdle that many consumers have to overcome. Consumers are forced to pay more money for gluten-free products, but doing so creates new problems, Katz says.
“Consumers are very disappointed and stressed over the prices they are paying for products that are gluten-free,” he says. “These folks need value because their cost of living is so much higher than those that don’t need gluten-free products. They can’t live their lives financially the way they want to, because so much money is poured into their gluten… intolerance.”
But retailers could jump into the arena, letting consumers know that their store brand gluten-free products provide high quality at a reasonable price, says Scott Treadaway sales director, Russo’s New York Pizzeria, Houston. On top of that, he advises retailers to provide a product that tastes great so the whole family can enjoy it, because when families have to prepare only one meal instead of two, it becomes much more affordable.
Consumers also want better nutrition, Katz notes.
“Gluten-free consumers are very knowledgeable and read their labels — they have to,” he says. “More often than not, the labels they are reading indicate that the products may be certified gluten-free, but they aren’t actually healthy products. For example, many gluten-free products contain high levels of sodium, fat and sugar. Consumers are [generally not] happy with the nutritionals they get.”
Make some noise
In addition to developing the right gluten-free products, retailers need to be committed to the long-term, as the gluten-free movement has staying power.
“If a retailer were to deny that gluten-free is more than a trend, they would not only be wrong, but would be doing a disservice to themselves and to their consumers,” Walters says. “The biggest mistake a retailer could make is not respecting the fact that this is a legitimate diet with consumers who will continue to eat this way in growing numbers.”
Once a retailer decides to include gluten-free products in its store brand assortment, it must promote those products and create ample awareness of them. Treadaway recommends having fun with the store brand and treating it as if it was a national brand: Blog about it; have contests with it; feature it in store circulars; create great signage pointing it out in the aisles; even put a QR code on it, he says.
Dutra agrees, adding that as soon as a new gluten-free product is introduced, it should be placed in the natural set, the conventional set, the gluten-free set and even on an end cap so that all potential consumers know the line exists right away. Once consumers are aware of the items, they will seek them out in the store no matter where the retailer settles on putting them, he adds.
Another great way to get the word out is to run specials during Celiac Awareness Month and partner with local celiac disease groups to promote the products. In fact, Katz insists that every retailer that has or is thinking of starting a gluten-free brand first attend the gluten-free tradeshows to learn what consumers need and want and then send product samples to local celiac disease and gluten-free groups for feedback. The effort will be well-rewarded.
“Once you get them, they are very loyal and will drive across town to buy your products,” Katz says.
But with loyalty comes responsibility. Keeping store shelves well-stocked with gluten-free products is a must to maintain a loyal following among shoppers, says Amy Levy, president, Amy Levy Public Relations Inc., Los Angeles. Often consumers read, either online or in gluten-free magazines, about where to buy well-reviewed gluten-free products, she explains. If that consumer drives to the store and the product is out of stock, he or she wont return, she adds.
