Premium quality and organic selection are driving sales growth of private label products in the United States, giving authentic Italian food an advantage in the fast-developing market, said Marco Saladini, director of the Italian Trade Agency (ITA) in Chicago. The private label industry continues to address important changes in the American market. More than 20 new Italian brands have been launched by US distributors. Sales and market share of private labels are at unprecedented levels Saladini told Italianfod.net. Over the past year, premium and organic private label products have grown in terms of store dollar share while mainstream and value have lost steam, according to data released by the Chicago office of the Italian agency responsible for the promotion of Made in Italy products abroad. The growth of the premium channel, together with several emerging consumer trends, offers important opportunities for authentic Italian products. Premium and organic products have driven growth in the private label sector, Saladini said. Authenticity is a competitive advantage that Italian producers should use in the US, as it puts Italian consumers under the umbrella of ‘quality premium products.’
Italy at PLMA’s trade show
Italy will be the largest foreign country attending PLMA’s Private Label Trade Show in Chicago (November 12-14). The show is held at the Donald E. Stephens Convention center in Rosemont, Illinois (Chicago’s metropolitan area). The official Italian delegation, organized by the ICE-ITA agency in Chicago, the office responsible for retail and private label promotion in the US, will showcase products from 50 companies (46 in the food & beverages, and 4 in the “home and health” sectors). Chicago’s PLMA show is expected to host more than 1,400 exhibitors from 55 countries, including 15 foreign countries (Italy, in terms of companies and size, is the largest). The show represents a top annual event for operators and buyers from the North American retail industry. The Italian presence in Chicago helps producers increase their direct knowledge of the market, meeting buyers from top US retailers, brokers and distributors, and launching commercial relations to increase the presence of “Authentic Italian” products in the market. Products on display will include fresh, frozen and refrigerated foods, dry grocery, condiments, sauces, dessert, biscuits and beverages as well as non-food categories, including health and beauty, household and kitchen, personal care and housewares. ICE-ITA will be present at the “Food and Beverages” Pavilion (stand F1817) and at the “Home & Health” pavilion (stand H2004).
Pasta: the top Italian product for store brands
Private label accounts for nearly one-third of all US product launches, according to PLMA’s 2016 Private Label Yearbook. Of these launches, Italian store-brand manufacturers dominate in multiple categories. Pasta accounts for 45.1% of US-imported Italian private label products, and 20.6% of branded product launches, according to 2016 Mintel data. Pasta sauces account for 5% of private label launches and 4.3% of brand products, followed by pizza (4.6% and 2% respectively), and dairy-based frozen goods (4.1% and 2.8%). Some retailers are emphasizing health-related claims on their packaging of Italian products, and others continue to promote Italian authenticity, according to the ITA agency, which has signed partnership agreements with major US retail groups to increase the availability of new Italian products on supermarket shelves. Italy is the second-largest European food exporter to the US behind France, and the sixth-largest globally, according to ITA calculations based on data from the US Department of Commerce. Italian exports of food and drinks to the US increased 1.6% in the first half of 2017 from the previous year-period, after rising 3.9% in 2016 compared with 2015. The most exported products from Italy are wine, olive oil, cheese, and pasta. Among the best performers, exports of sauces and other condiments rose 22.7% in the January-June period, followed by gelato (up 59.9%) and vegetable preserves (up 22.8%).
More retail promotions to boost sales
Retailers that partner with ITA comprised 67% of all private label launches from 2013 to 2015, the agency said. ITA’s promotional initiatives are targeted to small and medium-sized companies who export to global markets but need to increase their shelf space, the director said. ICE Chicago is continuing to select partners based on their presence in the US market, their customer base and the real interest of chains to develop their market, Saladini said. As part of the government-backed extraordinary promotion plan of Italian food in the US, and based on the excellent results achieved in the previous campaigns, ITA Chicago is exploring new campaigns with the current partners (such as Meijer, Schnucks, Mariano’s, Walmart, Sam’s Club, Hy-Vee, HEB USA and Mexico, and Wakefern) and will continue to scout and contact retailers to increase the possibility of collaboration agreements to boost food product sales, the director said.
