Soup's on … a roll - new soups

Prepared Foods, Sept, 1996 by Steve Dwyer

With the consumer numbers on their side, soup makers are turning up the heat in the RTS and condensed market with a melange of new product varieties.

When Campbell Soup Co. announced in June the largest new-soups introduction in its 100-year history - 19 new products in all - some food market observers succinctly asked: Why so many new soups, why this season?

Processors of canned soup, including condensed and ready-to-serve (RTS) varieties, know why. In a market that's long held a distinction for its boundless consumer profile and universal appeal, soup makers have the numbers to sop up their new product largess.

With its June announcement, Campbell officials are banking on it. "You can never have too much soup," says Kevin G. Lowery, director, public information for Campbell Soup Co. "We want to grow this company and what better way to do that than through our core business line."

The RTS and condensed soup market has added to its sophistication in recent years as consumer sub-cultures have crystallized, prompting soup makers to respond aggressively with increased expenditures and investment in consumer equity. The targets of the spending spree are three core soup consumers: The health-conscious looking for a light and nutritious meal; the eager eater seeking a hearty and filling meal; and the mixable recipes collector who seeks variety.

Campbell isn't alone in fostering the category expansion. In a preemptive strike at its core competitors, ConAgra Inc. also announced in June - just prior to Campbell - the introduction of a line of condensed soups for the $1.4 billion/yr. Healthy Choice brand. The line consists of six varieties, each with its own distinct blend of fresh herbs and flavorful spices.

And the Progresso brand, which has been under the direction of Minneapolis-based Pillsbury since early 1995 when it was acquired from Pet Inc., began rolling out new soup products in the fall of 1995. The most auspicious announcement was the launch of its all-white meat chicken soup line. The products were a master stroke, boosting Progresso sales at least 50% for the last 13 weeks of the year compared to same-period 1994.

Anil Arora, vice president-Progresso at Pillsbury, says later this season, Progresso plans to unveil four new tomato-based flavors as the company continues to resuscitate what Arora calls "an undernourished brand, but with a lot of consumer affection." In conjunction with the tomato release, Pillsbury will test market what Arora calls a Progresso "soup kit," a non-canned, specially-packaged product slated for the frozen foods section of supermarkets.

Smaller, regional soup companies have been hustling to place new varieties on the market this off season, too. Such new and exotic names as Grizzly Bean, Italian Wedding Soup, Real Hungarian mushroom, Tuscan bean, sweet potato chowder, Cuban black bean, split pea with barley, tortilla con questo and cheddar beer have all found niche market positions in the canned soup market.

Aside from new soup formulations, some companies are adding to the category through new breakthrough technologies. Stockpot Soups, Redmond, Wash., entered the market in March with a hot-fill, quick-chill method of packaging for the refrigerated section of supermarkets. A standup pouch, the package consists of a polyester outer layer with reverse-printed graphics and reclosable zipper. The product touts "offering the quality of a premium restaurant soup with the convenience of a prepared product."

So far this calendar year through mid-July, there were 124 new soup varieties introduced, according to New Products News trade magazine. This compares closely to last season when by mid-July 1995 there were 131 new soup products introduced since the beginning of that year.

'CONDENSATION'

Last year's harsh winter, which particularly battered the East Coast, helped nudge overall hot soup sales for the $2.3 billion/yr. canned soup market, which has consistently grown at a 2-3% rate for the last five years based on unit sales. According to Progresso's Arora, last season's colder mercury played a small part in overall category performance. He stated that weather is an "overrated" element in the marketing of soup, adding that increased spending and consumer equity investment is the real attributer.

Last season, the spending emphasis was on the condensed market.

Campbell began updating and tweaking the packaging for its main condensed icons, says Lowery. "Modifying the label by incorporating a soup picture on the red and white can is not something you do wily-nilly," says Lowery, "but it was all part of making our product more relevant to the consumer."

For instance, Campbell recently added 33% more meat per single serving to its flagship Chicken Noodle soup brand. This dramatic increase in meat content was just the impetus Campbell needed to modify the time-honored label, says Lowery, without causing alarm with consumers.

Lowery says that "while we didn't forget about ready to serve [with the attention being paid to condensed] we had to focus on cultivating what we call our 'big guns' - Cream of Mushroom, Tomato and Chicken Noodle in the condensed segment."