Innovative flavours and premium products are continuing to drive sales of branded pies, leaving retailers’ own-label offerings looking stale by comparison, writes Alex Beckett
That Heston Blumenthal chose meat pies to spearhead his entry onto Waitrose shelves last month shows how far the traditional staple has evolved especially over the past few years: from junk status to the height of haute cuisine.
The upper tier, in particular, has seen significant growth amid increased distribution for smaller, innovative premium brands such as Pieminister and Higgidy. And a wide variety of exotic fillings and the national launch of a microwave-friendly pie have helped modernise the image of the category.
Yet, despite such activity, and especially in the light of the stellar sales growth recorded in 2008 and 2009, this year has actually been a tough one for pies.
Last year, the category benefited from recession-hit consumers wanting no-nonsense comfort food. Value rose by 3.3% and volumes by 2.5% a modest yet significant growth for a mature category. With fears over unemployment and creeping food inflation setting the agenda for the coming winter, one would expect the comforting pull of the pie to have continued such a strong sales momentum.
Value growth, however, has been sluggish up just 0.8% to £231m while volumes have dipped 1.9% [Kantar 52w/e 5 September 2010].
It appears the blame for the slowdown lies with own-label. The 3.7% drop in own-label which makes up 72% of the total category is in stark contrast to the 14.9% sales increase for branded products. So, what are the branded suppliers doing right, and will the stuttering own-label sector dampen hopes for post-Blumenthal growth?
It was the rise of gastro pubs that helped to make the pie category more fashionable. Andy Valentine, head of brand marketing at Ginsters, believes as shoppers rediscovered the supermarket pie aisle, brands have seized the moment to keep them there through innovation and marketing.
"People have been starved of developments in pies," adds Kerry Foods marketing director Derek Williamson. "In own-label, quality has been squeezed out through managing margins. People were bored of playing hunt the meat in the filling.
"The industry has learned that people want the basics of good quality at affordable prices. So, brands have been experimenting and doing something different with pies."
Williamson, whose company launched Wall's youth-oriented Fully Loaded chilled pie range two months ago, says he is confident that by next year the 200-year old Wall's brand will be bigger in pies and pastry than it is in sausages.
And the modern twist offered by Fully Loaded's Smokey Sizzler, Curryful Korma and Smokin' Hot Cajun pies is far from the only flavour innovation seen this year. Pork Farms has livened up its flavours by teaming up with Peperami and Branston pickle in March to bring jointly branded pies to the fixture, while Ginsters claims its top-selling pasty is now chicken balti and is so impressed it plans to introduce a chicken balti pie next year. It has been 12 months since Peter's Foods launched a savoury slices range in flavours such as Mexican chilli and spicy chicken fajita, which have gone on to achieve "massive" distribution gains.
In the meantime, the youth market has been the target for Pukka Pies' 3½ Minute range of microwaveable frozen pies, launched in August. In a category-first development, special laminated card prevents the shortcrust pastry becoming soft when heated in a microwave. "The biggest hurdle we have to overcome is not the technology, it's the fact that consumers don't believe pies from the microwave can taste this good. But they have been very well-received so far," says marketing manager Peter Mayes.
Trendy London-based Square Pie is also likely to find fans among younger pie eaters and plans to venture beyond rock festival stalls and Selfridge's Foodhall with a move into wider retail next year. The challenge ahead, says founder Martin Dewey, is boosting production capacity.
"We have previously chosen not to pursue the grocery side because we were waiting for the right partner to help take us into the multiples," says Dewey. "But the time is now right and there is a massive opportunity for us to deliver in 2011."
Having been a mainstay at Glastonbury for the past few years, Square Pie should benefit from its cool credentials among younger consumers a recent paparazzi shot of Kate Moss with one of Dewey's creations will do its profile no harm.
Pie brands have also provided consumers with a wider variety of sizes this year. Ginsters made its first foray into mini-pasties in May ready for the picnic season and gourmet pie supplier Pieminister introduced PieMINIsters in July. Weighing in at 180g, the mini pies are nearly 100g smaller than the standard offering, which co-founder Tristan Hogg says is "too big for many light eaters".
Higgidy, which specialises in individual pies, has taken a different approach and has targeted families with its hefty 530g Chicken Pot Pie to Share, launched earlier this month. At £4.99, it is £1.50 pricier than the regular 300g-sized pies, but marketing director Mark Campbell says Higgidy loyalists had been impatient for a family-sized brand extension. "A lot of innovation has centered on individual formats moving into such a large size is indicative of how premium suppliers are responding to opportunities," he adds.
Pie brands are also taking different approaches to get the attention of shoppers.
Pukka and Peter's Foods, for example, have established themselves as the football terrace pies of choice, benefiting from pitchside ads that offer a bridge to a global TV audience. In September, Peter's added 12 more football and rugby clubs to its roster, including Premiership clubs Birmingham City and West Ham, taking the number of stadia it supplies to 38. It expects the new business to boost sales to more than £3m this season. Pukka's profile was raised in the summer when it sponsored the The England Supporters Band during the World Cup.
"The band's video diary got massive numbers of hits which was great for us," says Mayes.
Ginsters, meanwhile, claims it has spent more on TV ads in 2010 than in any other year, to remind mums about the British ingredients used in its products. "Mums still need reassurance about quality of meat and provenance," says Ginster's Valentine. "Because the meat can't be seen, pies are presented with a particular challenge."
Northern Foods-owned Holland's Pies brand boosted its chances for further national distribution beyond its northern heartland by celebrating the 50th anniversary of Coronation Street with limited-edition Corrie-branded pies, which launched nationwide earlier this autumn.
However, as the country's biggest supplier of own-label pies, and owner of leading frozen brand McDougall's Uppercrust, Northern straddles two pie categories that aren't in the best of shape. Just as sales of own-label pies have fallen, the £80.2m frozen sector is down 4% [Nielsen 52 w/e 2 October 2010].
To meet the challenge and revive sales, Northern Foods restructured its pie division this autumn, separating McDougall's from the wider Green Isle frozen division and merging it with Holland's.
"McDougall's was lost at Green Isle, where the focus was on Goodfellas. In the past, we never really maximised the opportunities in pies," says Ed Hyslop, managing director of Northern's combined pastry businesses.
"We are kickstarting 2011 with major consumer research that will form the basis of an innovation programme in our branded and own-label pies next year. We are looking to refresh own-label offerings and stop lagging behind brands," he says.
Focus On Pies & Meat Snacks
That Heston Blumenthal chose meat pies to spearhead his entry onto Waitrose shelves last month shows how far the traditional staple has evolved especially over the past few years: from junk status to the height of haute cuisine.
The upper tier, in particular, has seen significant growth amid increased distribution for smaller, innovative premium brands such as Pieminister and Higgidy. And a wide variety of exotic fillings and the national launch of a microwave-friendly pie have helped modernise the image of the category.
Yet, despite such activity, and especially in the light of the stellar sales growth recorded in 2008 and 2009, this year has actually been a tough one for pies.
Last year, the category benefited from recession-hit consumers wanting no-nonsense comfort food. Value rose by 3.3% and volumes by 2.5% a modest yet significant growth for a mature category. With fears over unemployment and creeping food inflation setting the agenda for the coming winter, one would expect the comforting pull of the pie to have continued such a strong sales momentum.
Value growth, however, has been sluggish up just 0.8% to £231m while volumes have dipped 1.9% [Kantar 52w/e 5 September 2010].
It appears the blame for the slowdown lies with own-label. The 3.7% drop in own-label which makes up 72% of the total category is in stark contrast to the 14.9% sales increase for branded products. So, what are the branded suppliers doing right, and will the stuttering own-label sector dampen hopes for post-Blumenthal growth?
It was the rise of gastro pubs that helped to make the pie category more fashionable. Andy Valentine, head of brand marketing at Ginsters, believes as shoppers rediscovered the supermarket pie aisle, brands have seized the moment to keep them there through innovation and marketing.
"People have been starved of developments in pies," adds Kerry Foods marketing director Derek Williamson. "In own-label, quality has been squeezed out through managing margins. People were bored of playing hunt the meat in the filling.
"The industry has learned that people want the basics of good quality at affordable prices. So, brands have been experimenting and doing something different with pies."
Williamson, whose company launched Wall's youth-oriented Fully Loaded chilled pie range two months ago, says he is confident that by next year the 200-year old Wall's brand will be bigger in pies and pastry than it is in sausages.
And the modern twist offered by Fully Loaded's Smokey Sizzler, Curryful Korma and Smokin' Hot Cajun pies is far from the only flavour innovation seen this year. Pork Farms has livened up its flavours by teaming up with Peperami and Branston pickle in March to bring jointly branded pies to the fixture, while Ginsters claims its top-selling pasty is now chicken balti and is so impressed it plans to introduce a chicken balti pie next year. It has been 12 months since Peter's Foods launched a savoury slices range in flavours such as Mexican chilli and spicy chicken fajita, which have gone on to achieve "massive" distribution gains.
In the meantime, the youth market has been the target for Pukka Pies' 3½ Minute range of microwaveable frozen pies, launched in August. In a category-first development, special laminated card prevents the shortcrust pastry becoming soft when heated in a microwave. "The biggest hurdle we have to overcome is not the technology, it's the fact that consumers don't believe pies from the microwave can taste this good. But they have been very well-received so far," says marketing manager Peter Mayes.
Trendy London-based Square Pie is also likely to find fans among younger pie eaters and plans to venture beyond rock festival stalls and Selfridge's Foodhall with a move into wider retail next year. The challenge ahead, says founder Martin Dewey, is boosting production capacity.
"We have previously chosen not to pursue the grocery side because we were waiting for the right partner to help take us into the multiples," says Dewey. "But the time is now right and there is a massive opportunity for us to deliver in 2011."
Having been a mainstay at Glastonbury for the past few years, Square Pie should benefit from its cool credentials among younger consumers a recent paparazzi shot of Kate Moss with one of Dewey's creations will do its profile no harm.
Pie brands have also provided consumers with a wider variety of sizes this year. Ginsters made its first foray into mini-pasties in May ready for the picnic season and gourmet pie supplier Pieminister introduced PieMINIsters in July. Weighing in at 180g, the mini pies are nearly 100g smaller than the standard offering, which co-founder Tristan Hogg says is "too big for many light eaters".
Higgidy, which specialises in individual pies, has taken a different approach and has targeted families with its hefty 530g Chicken Pot Pie to Share, launched earlier this month. At £4.99, it is £1.50 pricier than the regular 300g-sized pies, but marketing director Mark Campbell says Higgidy loyalists had been impatient for a family-sized brand extension. "A lot of innovation has centered on individual formats moving into such a large size is indicative of how premium suppliers are responding to opportunities," he adds.
Pie brands are also taking different approaches to get the attention of shoppers.
Pukka and Peter's Foods, for example, have established themselves as the football terrace pies of choice, benefiting from pitchside ads that offer a bridge to a global TV audience. In September, Peter's added 12 more football and rugby clubs to its roster, including Premiership clubs Birmingham City and West Ham, taking the number of stadia it supplies to 38. It expects the new business to boost sales to more than £3m this season. Pukka's profile was raised in the summer when it sponsored the The England Supporters Band during the World Cup.
"The band's video diary got massive numbers of hits which was great for us," says Mayes.
Ginsters, meanwhile, claims it has spent more on TV ads in 2010 than in any other year, to remind mums about the British ingredients used in its products. "Mums still need reassurance about quality of meat and provenance," says Ginster's Valentine. "Because the meat can't be seen, pies are presented with a particular challenge."
Northern Foods-owned Holland's Pies brand boosted its chances for further national distribution beyond its northern heartland by celebrating the 50th anniversary of Coronation Street with limited-edition Corrie-branded pies, which launched nationwide earlier this autumn.
However, as the country's biggest supplier of own-label pies, and owner of leading frozen brand McDougall's Uppercrust, Northern straddles two pie categories that aren't in the best of shape. Just as sales of own-label pies have fallen, the £80.2m frozen sector is down 4% [Nielsen 52 w/e 2 October 2010].
To meet the challenge and revive sales, Northern Foods restructured its pie division this autumn, separating McDougall's from the wider Green Isle frozen division and merging it with Holland's.
"McDougall's was lost at Green Isle, where the focus was on Goodfellas. In the past, we never really maximised the opportunities in pies," says Ed Hyslop, managing director of Northern's combined pastry businesses.
"We are kickstarting 2011 with major consumer research that will form the basis of an innovation programme in our branded and own-label pies next year. We are looking to refresh own-label offerings and stop lagging behind brands," he says.
Focus On Pies & Meat Snacks
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