Grilling fires up meat sauce sales - Grocery - Brief Article - Statistical Data Included

DSN Retailing Today, Oct 7, 2002

Backyard grilling has evolved from a summer weekend event to an everyday meal solution, prompting continuous demand for meat sauces and marinades.

Unit sales of marinade rose 5.2% during a recent 52-week period to $229.7 million, according to IRI data, while barbecue sauce gained 1.1% to $352.5 million. At least seven new competitors have entered the marinade segment in the last two years, including French's, Kraft and KC Masterpiece.

That's made it tough for Lawry to retain its longtime sales lead, and it actually slipped a bit this past year. Unit sales of KC Masterpiece's grilling sauce grew 22%, and right behind was Heinz' Jack Daniel's grilling sauce, which jumped 62%.

"The brand equity was a huge boost in terms of getting people to buy the product," said Heinz spokesman Robin Teets of the Jack Daniel's licensed brand.

Another hit for Heinz is its licensed Mr. Yoshida's Fine Sauces marinade line, which Teets said sells well in club stores and regionally in the Pacific Northwest.

Some regional players, such as Stubb's Legendary Kitchens, have managed to grow sales as the category itself remains on a strong growth curve nationally. Stubb's president and ceo Scott Jensen said his company's beef marinade outsold its signature barbecue sauce for the first time this year.

Barbecue sauce, meanwhile, has seen slower, but steady, growth. Kraft retained its 44% share in the segment, actually gaining 5.3% in unit sales through line extensions, such as Sweet Recipes and Thick 'N Spicy.

"Both premium and mainstream sauces are growing this year. In past years, premium sauces have been growing, while mainstream sauces have been declining," said Mary Sagripanti, senior brand manager for Kraft's barbecue sauce.

Kraft has continued to add new flavors to spice up its sauces, such as roasted garlic and sweet hickory smoke, to compete with the premium sauces. Nevertheless, the biggest sellers remain traditional, no-frills products, such as Lawry's original meat marinade and Kraft's regular barbecue sauce.