Asian Invasion

Upscale, natural and gluten-free products spur category growth.

Whether it's an increased interest in eating healthy or the influence of generation Y, the millennials, and their penchant for being hip and on top of trends, the numbers show that Asian foods are doing gangbusters business in supermarkets across the country

“We've seen a definite uptick in Asian cuisine, especially upscale Asian,” says Rachel Porges, brand manager for P.F. Chang's Home Menu at Englewood Cliffs, N.J.-based Unilever. “What we've seen in recent surveys is that consumers are choosing Asian foods second only to Italian.”

That is apparent in virtually any supermarket these days, especially those that cater to consumers who want healthy, different and even somewhat adventurist foods with bold and unique flavors. Check out the sushi bars at Whole Foods Market or even mainstream markets like Harris Teeter or Safeway. There's a reason that so much attention, effort, labor and space is devoted to this offering.

It sells, and if you're not offering sushi, take a look at the online comments that are easy to find, like this one from a student at the University of North Carolina:

“I have gotten the bento boxes (sushi) at Fresh Market off of Six Forks, and it is ALWAYS outstanding.” Or another, who wrote: “There is usually a long line of people waiting for sushi at the Harris Teeter. I think it's pretty good, if you get it fresh, but it's sort of expensive.” And many of those making comments cited the sushi at Austin, Texas-based Whole Foods as being the best offered by supermarkets in their area.

So, if sushi sells, can the same be said for canned and frozen Asian offerings?

Absolutely, according to research form Schaumberg, Ill.-based Nielsen, which finds canned Oriental food sales increased by 6.8 percent for the year ending Feb. 19, following a 4.2 percent upsurge for the previous year. Frozen entrees jumped by 12.2 percent during the same period this year, on the heels of a 7.5 percent increase in 2010.

Unilever's Porges says that within those numbers for frozen, it's clear that upscale products are leading the charge, and that's where the P.F. Chang's Home Menu, introduced just last April, comes in. “It's been an incredibly successful launch,” she explains, “with great acceptance by both consumers and, of course, retailers.”

A New Age of Asian Options

Two other key forces are influencing the surge in Asian food product sales: interest in all-natural foods as well as in those that are gluten-free, as sources at World Finer Foods and San-J International Inc. will attest.

“We have been seeing increased interest across all segments of the population in all-natural foods,” says Irene Suhaka, marketing manager for TyLing Asian Specialty Foods at Bloomfield, N.J.-based World Finer Foods. “So, about four years ago, we revamped the entire TyLing Asian line, and 32 of our 40 products are now marketed as TyLing Naturals. That's really helped our sales.”

At Richmond, Va.-based San-J, three groups of consumers comprise the company's core target customers, says Misako Tanaka Binford, marketing manager: health-conscious shoppers, natural food enthusiasts and gluten-free customers. Gluten-free, she adds, is leading the charge with the company's four versions of Tamara soy sauce, two of which are organic; all are now completely free of wheat.

“That is the major difference between Tamara and regular soy sauce,” Binford explains. “Most soy sauce is made of about 50 percent soybeans and 50 percent wheat. Of course, gluten-free consumers cannot consume wheat, so soy sauce has been on the unsafe list for them. But our four items are completely wheat-free.”

Binford stresses that San-J's gluten-free products are certified by the Gluten-Free Certification Organization (GFCO), a program of The Gluten Intolerance Group. GFCO inspects products for gluten and doesn't certify products for any other potential allergens.

Upscale Frozen

Because the folks at Unilever saw the increased interest in upscale Asian foods as a long-term trend, despite the recession, they negotiated a licensing partnership with P.F. Chang's China Bistro to develop and sell frozen Asian dishes under the P.F. Chang's brand. Today, the P.F. Chang's Home Menu line includes eight premium frozen entrées featuring the bold flavors associated with the popular restaurant chain.

Inspired by the company's best-selling recipes, the line consists of Orange Chicken, Shanghai Style Beef, Sweet & Sour Chicken, General Chang's Chicken, Ginger Chicken & Broccoli, Beef with Broccoli, Shrimp in Garlic Sauce, and Shrimp Lo Mein.

“With a proprietary technology, we have been able to capture the bold flavors associated with P.F. Chang's in a frozen entrée that is quick and easy to prepare,” says Gaston Vaneri, senior brand building director at Unilever. “The result, P.F. Chang's Home Menu, is a delicious, flavor-packed meal for two that can be prepared in 13 minutes or less.”

The line includes such Asian vegetable ingredients as edamame (soybeans), water chestnuts, snap peas and bok choy. A protein — beef, chicken or shrimp — comprises 25 percent of an entrée's total volume.

“We knew to do it right, we had to develop products with bolder flavors that were gently adventurous,” says Porges. “They had to be products with flavors that are savory, sweet and spicy, such as those found in Asian food and that P.F. Chang's is known for. We wanted a brand that would connote power and flavor, and that company has a great brand equity.”

While Unilever won't discuss future plans regarding specific products, Porges acknowledges that there's a desire to bring additional menu selections to market. Thus, retailers no doubt can expect to see new product offerings within the P.F. Chang's Home Menu line sometime soon.

For this reason, the company designed its P.F. Chang's packages to be shelf efficient and to deliver a bold image within the freezer case, so they'll stand out among the competition. Digital advertising and television ads are part of the advertising campaign in support of the line.

At World Finer Foods, the TyLing line of spices, oils, sauces and canned shelf-stable products is benefiting from, and helping to generate, the increased consumer interest in Asian food products. According to Suhaka, the company's sesame oil product rose 13 percent in unit sales during the fourth quarter of 2010, while sweet and sour sauce and General Tso's sauce jumped 10 percent and 8 percent, respectively.

“We are looking towards additional introduction of shelf-stable Asian items that are convenient,” she explains.

Merchandising Strategies

Suhaka believes the most effective merchandising strategy for retailers is to include TyLing in their Asian product sets, rather than separating them out by product category and placing them with mainstream center store products. “When we make our presentations, we show them the numbers and we make our recommendations,” she says.

San-J's Binford agrees with that approach. “If we only have three flavors of a product and we put it in the main aisle, it disappears among all of the other mainstream products,” she says. “But within the Asian section, it can easily be found.”

However, Binford would like to see retailers use shelf talkers or signage to encourage shoppers looking for an Asian-style salad dressing, for example, to check out the Asian food aisle. “Signage in the main section [would help inspire] shoppers to go to the international Asian” food aisle, while further helping stores differentiate themselves. “And we are willing to provide whatever they need if they have the space,” she adds. “We try to focus on how consumers think when they are shopping and looking for a product.”

Of course, since most of San-J's products are gluten-free, there's an opportunity to cross-promote in both the Asian food aisle and in the gluten-free section, in cases where retailers have created such areas.

For all three of these companies, the objective is to capitalize on increased consumer interest in the bold and unique flavors and taste, as well as the general healthfulness, of Asian food products. All-natural, gluten-free and upscale products, such as those from Unilver's P.F. Chang's Home Menu, are contributing to the growth of this category.