Beyond The Can

In addition to its most iconic presentation, soup now comes in a variety of formats — on grocery shelves and elsewhere — and retailers are excited by the possibilities.

Soup is a reliably hot commodity at retail these days, and not just in center store.

"In the deli, we offer fresh hot soup every day," says Scott Owen, grocery merchandiser at PCC Natural Markets, a Seattle-based food cooperative with nine stores in the Puget Sound area. "Any time of year, it tends to be a great lunch item. In center store, we generally group broth, aseptic soup and canned soup together to allow customers to find the size and type of soup they want readily."

Owen is particularly intrigued by the potential of refrigerated soups. "We believe customers find this format easier to reheat and have a quick lunch from," he notes. Although at press time, PCC's soup promotions really hadn't gotten underway yet, "for the fall/winter, we see [ads, TPRs and EDVs] coming in strong for broth and canned soups. …[SJales tend to be robust once the temperature drops."

A similar seasonal pattern prevails at Tyler, Texas-based Brookshire Grocery Co. "Shelf-stable soups have performed well this year, with the usual uptick in sales during cooler weather and decrease in hot summer months," affirms Doug Cummins, certified category manager - shelf-stable meal solutions. To sell its soups, the grocer depends on "seasonal ads and displays, along with a few targeted efforts supporting community projects such as food bank promotions and food drives," he notes.

Over at Springfield, Mass-based Big Y Inc., meanwhile, the category is experiencing an increase after a long fallow period. "Soup is growing for the first time in years, due to marketing efforts by the leading manufacturers, new item introductions and pricing strategies," asserts Scott Paulin, category manager, adding that off-shelf displays drive total category sales during promotional events.

Product Innovation

An important component of soup's longevity is its constant evolution, both in packaging and products.

"Soup is now competing with simple meals; it has become a simple, convenient alternative that extends to different meal occasions," says Jason Homola, director of business development-soup and simple meals at The Campbell Soup Co. in Camden, N.J.

The well-known brand is adding products and packaging to its condensed, ready-to-serve and broth product lines, including Campbell's Go pouches, which promise to deliver "takeout taste in minutes" in such flavors as Coconut Curry and Moroccan Chicken; Campbell's Gourmet Bisques, with varieties like Thai Tomato Coconut; and two new premium Campbell's Slow Kettle varieties in clear plastic tub packaging, as well as bold flavor extensions, including Kickin' Buffalo-style Chicken, and a simplified label design for the Campbell's Chunky line.

Homola notes that more of Campbell's advertising and promotional efforts will focus on millennial shoppers. "We will be using creative new approaches and tactics to engage them with digital, online and nontraditional advertising strategies."

Earlier this year, Tualatin, Ore-based Pacific Natural Foods extended its aseptically packaged hearty soup line with four organic bisques. Also new are two additional Soup Starter flavors, Organic Thai Tom Yum and Organic Tortilla, to round out the innovative line that launched last year with Vietnamese-style Pho. "The soup starters allow consumers to select their favorite fresh add-ins (meat, produce and toppings) to customize meals to their specific tastes and provide their families with authentic globally inspired cuisine in less than 30 minutes," explains Sibel Candemir, Pacific's senior brand manager, soup and broth.

The company recently held a major in-store sampling campaign featuring these products, during which brand ambassadors provided information. "It's been a great way to engage with our consumers and educate them," says Candemir. "Our in-store sampling programs have definitely driven trial and sales in those retailers. In fact, we've seen significant sales lifts during the promo periods and base sales growth in the following periods."

She adds that "soup's versatility as an ingredient in a recipe, a main course or a side dish opens up lots of merchandising opportunities," including meal solutions-themed end caps, floor displays that highlight classic pairings, and cooking demonstrations.

Bookbinder's, which takes its name and inspiration from the well-known Philadelphia restaurant, recently bowed a line of ready-to-serve soups packaged in glass. "The soups are all natural, gluten-free and intended to provide gourmet taste, with increased convenience and portion control," says Sean O'Neil, the "chief soup officer" at Media, Pa.-based Bookbinder's Specialties.

Cold Cases

In the frozen section, Tabatchnick has added two low-sodium SKUs, Lentil and Minestrone, to its Soup Singles line, which launched last year. "Multiple sales get the consumer initial trial and usage," explains fourth-generation soup-maker Ben Tabatchnick, CEO of Somerset, N.J.-based Tabatchnick Fine Foods Inc. "Three for $3, etc., work the best. This provides a great cost/value relationship to the consumer and maintains the retail integrity of the product." He adds that when it comes to merchandising, "old-fashioned end case displays work best, since most frozen/refrigerated sales are based on 90 percent impulse."

Chelsea, Mass-based Kettle Cuisine, which focuses on refrigerated and hot soups, is capitalizing on current consumer trends to keep sales growing, despite this past year's warmer weather, which slowed purchase frequency. "We very recently launched four new items: Black-Eyed Pea & Smoked Ham Soup, Greek Chicken Orzo Soup, Moroccan Lamb with Couscous, and Grilled Cheese & Bacon Soup," says Levon Kurkjian, the company's VP of marketing. "The first three were developed to address consumers' increasing demands for new and different ethnic and regional cuisines, and the Grilled Cheese soup was launched to address two trends that remain very strong: comfort foods with a twist, and bacon."

The Future of Soup

While the category has ventured into new realms of packaging, flavor and nutrition in a bid to maintain consumer interest, ultimately what soup fans want is to enjoy every tastes-like-homemade spoonful, without the fuss of having to make it themselves.

"We expect to see increased segmentation and product specialization, with targeted offerings (flavors and packaging) for specific market segments, rather than the traditional canned-commodities approach," says Bookbinder's O'Neil. "We often ask retailers, 'When was the last time you sold a shelf-stable salsa in a can? Why should soup only be offered in cans?'"

"New and [innovative] processing techniques, along with green' recyclable packaging, will provide higher-quality shelf-stable soups closer in quality to frozen or fresh," predicts Tabatchnick. "This will revitalize the soup category tremendously."

For more on soup merchandising, visit www.progressivegrocer.com/soup.

"Soup is growing for the first time in years, due to marketing efforts by the leading manufacturers, new item introductions and pricing strategies."

—Scott Paulin, Big Y

"Soup is now competing with simple meals; it has become a simple, convenient alternative that extends to different meal occasions."

—Jason Homola, The Campbell Soup Co.

"We often ask retailers, 'When was the last time you sold a shelf-stable salsa in a can? Why should soup only be offered in cans?'"

—Sam O'Neil, Bookbinder's Specialties