SECAUCUS, N.J. -- "You couldn't ask for better consumers," David Hollister, category manager for specialty foods for Ralphs Grocery Co., Compton, Calif., told an audience at Kosherfest '98 here on Nov. 18, referring to people who buy kosher.
ional Foods, Los Angeles, which is a Ralphs distributor, looked at some of the strengths and weaknesses, opportunities and threats that affect the kosher business.
Among the opportunities he cited were identifying pareve foods as nondairy and nonmeat for the nonkosher consumer and integrating high-volume crossover items into mainstream sets. For example, noodles and soups could be put into mainstream categories to make room for additional items in the core kosher sets.
Manufacturers should identify mainstream food trends, Irwin said. "If core kosher manufacturers can identify those trends and become the first kosher certified product in that segment of business, they're going to do very well," he noted. For example, Irwin said a West Coast product called "You Are What You Eat" is the first and only kosher certified sports bar.
"I beat up on the gourmet producers, trying to convince them to become kosher certified," Hollister told SN after the seminar. "I want it to be kosher at Ralphs, because it adds to our market basket." In the chain, which has about 300 stores since it acquired Hughes Family Markets' 56 stores, Hollister said kosher sets have been changed from the more traditional products "to things people can use every day."
About 10,000 visitors were expected at Kosherfest98, according to Menachem Lubinsky, president of Integrated Marketing & Communications, New York, which produces the show. From 1992 to 1997, kosher food sales have grown from 12% to 14% each year, Lubinsky said. The total kosher market he said, is $47 billion a year, although $4 billion is spent by consumers who are seeking strictly kosher products. Mainstream products like Smuckers jams, Snapple beverages and M&Ms are now certified kosher. At the same time, traditional manufacturers such as Manischewitz are coming out with mainstream items like chili mix.
On the show floor, one of the 440 booths was Nabisco's, showing Oreo cookies, which used to contain lard. The manufacturer switched to vegetable shortening earlier this year, and got the Orthodox Union certification. "Going kosher was a big step toward our goal -- we want to be a $1 billion a year brand," said Mike Flakowitz of Landover, Md., representing Nabisco. He said the company is about $100 million shy of this goal. Sales of Oreo have increased since it converted to kosher, he said.
The snacks category is one in which a great number of kosher products have been added. Mister Snacks, a company from Buffalo, N.Y., with products branded Sunbird Snacks, was showing a new Oriental rice cracker mix. "We do a lot of fat-free and healthy," said Stephen Stern, vice president of sales. He said his company is the only one to have this item as kosher.
The PMD Group, Gardena, Calif., was showing a new beef jerky. "We're the first and only kosher beef jerky," said Daniel Fishman, the sales rep.
The show is held at a time when most stores are settling on their Passover inventory, although only about one-third of the products at this show are for Passover. Ninety-two percent of American Jews celebrate Passover, Lubinsky said, while only 70% fast on Yom Kippur.
