Soup lines

Prepared Foods, Jan, 2003 by William A. Roberts

Condensed Sales

RTS'success has come at the expense of condensed soups, which saw an 8.8% sales decrease between 1997 and 2002. In real terms, that represents a 20% drop, but condensed soup manufacturers are fighting back. Ads that reflect a more comfortable time, nostalgia and the lure of homemade comforts are encouraging consumers to revisit condensed options.

The approach may be working, as condensed soups saw some growth from 1999 to 2001, with a good portion of this growth among private label and smaller manufacturers. Among major condensed brands, only Campbell's Select has grown, says Mintel. Nonetheless, Mintel attributes recent overall sales declines at Campbell on a decrease in condensed soup sales, including Healthy Request.

Dry Mixes Decline

Likewise lackluster results have been posted in the dried soup area, as sales there have declined 8% since 1997. Increased RTS soup competition is partly to blame, but Mintel believes the lack of innovation in this mature market has played a role as well. In real terms, dried soup sales have fallen 11.4% since 1997, and manufacturers face an uphill battle. Considering dry soups and mixes are found in a relatively few 56% of households, there is an opportunity in this area for companies that can convince consumers of the quality and taste of dried soups when compared to canned varieties. For example, Fantastic Foods, Petaluma, Calif., offers vegetarian instant soups in cups, with air-dried or drum-dried vegetables that target a culinary audience.

One of the primary applications for dried soups is in recipes, and informing consumers of other applications would serve marketers well, says Mintel. For instance, Knorr Vegetable Soup Mix (Unilever, Greenwich, Conn.) is among the soup products that "have achieved almost legendary status in popularizing dishes such as spinach dip." However, despite intentions to cook more homemade meals, consumers are not spending valuable free time in the kitchen. This lack of cooking time limits the use of dried soup mixes in recipes.

A reduction in the time dedicated to cooking meals also impacts negatively on bouillon sales, which have dropped 8.3% in real terms since 1997. Typically, bouillon is a part of time-intensive meals, such as stews, and lengthy cooking sessions do not fit with busy schedules. Even when consumers opt to prepare a dish that requires broth, they often choose a canned broth rather than bouillon.

Mintel's exclusive consumer research found that over 90% of consumers eat soup of some form, while almost 50% use soups in recipes. However, this research also discovered that almost a third of respondents do not believe soup is filling enough to eat as a meal by itself. That thinking was greatest among 18to 24-year-olds.

To combat this viewpoint, Mintel advises soup manufacturers to emphasize their product is one component of a complete meal. Additionally, Mintel believes, "There is also clearly a need to promote and emphasize the variety of soups on the market, some of which are clearly intended to be more substantial and hearty."