Sweeten sales

Natural sweeteners such as honey and pure maple syrup hold appeal for health-conscious consumers who want to sweeten their food and beverages with less guilt. Retailers wanting to boost sales of their store brand honey and syrup, however, need to keep some category-specific issues in mind in the year ahead.

Traceability counts

On the honey front, one of the biggest issues centers on the honey’s source. Americans love honey — we consume more than 400 million pounds of it a year. But we produce only around 145 million pounds of it, and that number is decreasing as the rate of colony collapse disorder among bee colonies increases, according to the True Source Honey LLC website. More honey is being imported, therefore, with some of it is coming illegally from Asia and containing what could be unsafe ingredients such as antibiotics. And some imported “honey” might not even be honey at all, but instead something such as rice syrup.

One way a retailer can be absolutely sure of their honey’s source is through True Source Certification, an auditing process that traces the honey from the American packer to the foreign exporter to the actual beekeeper.

“Most honey imports are high-quality, and many are already True Source Certified, but there are still some bad actors, which is why certification is so important,” says Gordon Marks, executive director of True Source Honey, an organization founded to both bring awareness to the issue and institute the certification process.

Retailers that go through the certification process are able to include the True Source Certified logo on their store brand honey bottles, something that more consumers likely are going to be looking for, thanks to recent news coverage of the issue.

“We think there’s a tremendous benefit to retailers in the program, because it provides traceability,” Marks says. “And for consumers, that traceability means providing confidence in where their foods come from.”

One honey doesn’t fit all

Despite consumer preference for super-clear honey with all of the pollen filtered out, retailers might want to consider offering some store brand honey with some pollen in it for consumers who understand the benefits pollen brings to the product.

“Pollen grains are, in a sense, the DNA in honey,” says Tony Schmitz, general manager at Defiance, Iowa-based Smitty Bee Honey, adding that his company uses a filtering process that both leaves the nutrient-rich pollen in the honey and ensures its integrity.

Retailers also might want to think about adding some variety to the store brand honey lineup. More than 300 varietals exist, all with their own unique flavors. According to Schmitz, retailers could find success by offering more varietals and marketing them as more upscale products.

“Expand the message offerings, offer unique packaging, varietals and single-sourced items to capture the eye of the customer,” Schmitz says. “Cheap pricing alone does not drive sales.”

One easy way to make honey seem a little higher-end is through glass bottles instead of plastic.

“It is classy, safe and clean,” he says.

For retailers that count a lot of Hispanics among their shopper base, one particular varietal that could find store brand success, if marketed to that customer base, is Cosecha de Oro — “golden harvest” in Spanish — a single-sourced wildflower honey from Mexico’s Yucatan peninsula.

“Brand studies show Hispanics are loyal to pure, golden, light amber honey such as Cosecha de Oro,” Schmitz says, adding that Spanish labeling and placement in the ethnic foods section with other Hispanic products is a smart approach to reach those consumers.

Emphasize syrup’s value

On the syrup front, this is a “sleepy” time for any major trends or product development, according to Rob Miller, president and CEO at Portland, Ore.-based Trailblazer Foods. Some brands introduced syrup that is free from high-fructose corn syrup, but data from a number of sources, including Mintel and Nielsen, show that it is still a trend that hasn’t really taken off. And some syrups containing molasses are being marketed as “old-fashioned,” but “nothing is truly category-changing,” he notes.

In the absence of product innovation, one of the best strategies for selling store brand syrup is a focus on value, Miller says.

“Price seems to be a big driver of purchasing behavior,” he explains, adding that although some branded marketers might disagree, he doesn’t believe that the syrup category commands much in the way of brand loyalty. Having a complete, but limited selection of branded syrups could steer consumers toward store brand offerings, as could deep discounts and off-shelf displays aimed at own brands.

“Have pricing ‘integrity’ on private label items, meaning maintain the appropriate price gaps in comparison with branded items every day, even when branded items are on promotion,” Miller advises.

The focus on price might not be quite as necessary for pure maple syrup, however. According to Arnold Coombs, director of sales and marketing at Brattleboro, Vt.-based Bascom Family Farms, sales for the entire pure maple syrup industry are up.

“I think some retailers, at the grocery store level, are missing the boat on some sizes and grades,” Coombs says, pointing out that despite the fact that the industry’s No. 1 selling SKU is the 32-ounce size, many mainstream retailers don’t carry it. As a consequence, heavy users could end up buying their syrup at specialty stores that do carry the larger size.

“To compete, you have to have a 32-ounce on the shelf,” he stresses.

The darker grades of syrup, more commonly considered best for cooking, are also gaining consumer interest as a topping for pancakes, but those also aren’t always easy to find either, Coombs says.

New labels lessen confusion

One change coming this year that could find shoppers looking twice in the syrup aisle and also present retailers with a new opportunity to showcase store brand syrups is a new grading and labeling system for pure maple syrup, designed partly to clear up customer confusion.

“The biggest question we get is ‘What is the difference between the grades?’” Coombs says.

The changes in grading and labeling will go into effect for some northeastern states later this year, with much of the country not seeing the changes until next year. But when the new labels are in place, they should make it easier for customers to decide what type of syrup they really want to buy. For example, “Grade A Light Amber” will change to “Grade A Golden Delicate Taste,” and Grade B will be eliminated altogether.

“It’s just going to be much more clearly laid out for the consumer to decide what they want, while standing right in front of the shelf,” Coombs says.

Call out benefits, uses

Another way that retailers could potentially increase sales of store brand syrup and honey is through messaging that touts the products’ health benefits. According to the Federation of Quebec Maple Syrup Producers, pure maple syrup has been found to have more than 50 antioxidants, almost the entire daily recommended supply of manganese and more than a third of the recommended daily supply of riboflavin — and those are all claims that can encourage today’s health-focused shopper to grab your bottle.

“It is still a sugar, but as far as sweeteners go, it is probably the best one for you,” Coombs says of maple syrup.

Honey has several health advantages, as well.

“It is 100 percent allergen- and gluten-free,” Schmitz says.

It is also a natural cough suppressant, with a 2007 Penn State College of Medicine study showing that, for children, a dose of buckwheat honey was just as effective as over-the-counter cough medicines.

Highlighting alternative uses beyond serving as a topping or spread could also translate into sales.

“Suggest different syrup uses that may not be top of mind for the consumer,” Miller says. “For example, syrup can be used for flavoring milkshakes, as an ice cream topping, etc.”

According to Schmitz, effective education tools include recipe cards, fliers and fun facts. Shelf extenders for secondary placement in other areas of the store are also a good strategy.

“Honey purchases are made on impulse 60 percent of the time,” he explains.

Coombs notes that he has seen stores display maple syrup near the meat or seafood counter along with recipes, and experience “good movement” from it.

“It’s an unusual retailer that is willing to be that creative,” he says.