Noodles: bringing in new users is a challenge There is tremendous growth potential for noodles but the public need educating as to just how convenient, versatile and healthy they are, says Sarah Hardcastle Noodlemania is sweeping the UK, with noodle bars opening up in every city and celebrity chefs making noodle nests their favourite side of plate carbohydrate. Retailers are already reaping the benefits, with sales of plain dried and savoury noodles climbing strongly. TN Sofres Superpanel says sales are up 10.6% year on year, taking the plain dried and savoury market to nearly £43m. Chilled noodles, on the other hand, is a sector still in its infancy, but poised for imminent growth. Worth £12m, plain dried noodles is still small by grocery standards. But Sharwood's, the leading brand, claims it's growing at the phenomenal rate of 35.7% [AC Nielsen]. "Innovation and massive promotions on our brands at Chinese New Year are doing it," says category manager Jenny Gordon. "Noodles have seen level growth in double digit figures for years driven by the rising popularity of Chinese and oriental food, and stir fry in particular. Noodles are increasingly being used as an alternative to rice in oriental recipes." However, household penetration is still very low and bringing new users into the market is a challenge, says Gordon. "Many consumers still have reservations about noodles, believing them to be complicated to cook along with other elements of Chinese dishes. "But once they've tried them, they're amazed at how quick and easy they are to cook. Noodles are also very healthy, being low in fat, and have a strong appeal to children." Consumer education is high on Sharwood's agenda. Packaging proclaims how quick noodles are to cook and gives recipe suggestions. Merchandising next to stir fry sauces so that consumers make the linked purchase is also important. "We have driven this principle with retailers and it has been very successful in increasing category sales," adds Gordon. Of its five products, medium egg noodles is the bestseller. Thick egg noodles were introduced in response to male customers wanting something more substantial, says Gordon. Its most recent launch is stick rice noodles for stir fry. Sharwood's is the dominant force in plain dried noodles with a massive 69% share and 17% sales growth [AC Nielsen]. But its position is now being challenged by own label, which has a minuscule 6% share but a massive 56% sales growth, and Amoy which has put on a spectacular 214% spurt giving it just over 20% share [AC Nielsen]. Amoy's performance is all the more remarkable because its Straight to Wok noodles, part of a complete meal ingredient range, was only launched at the beginning of 1999. Product manager Keith Ironside attributes the success of the noodles to the strength of the Chinese food market, which is growing at 16%, and the product's innovative features. "It's not like anything else on the market," he claims. "It's a pre-cooked soft egg noodle with the appearance of a chilled product, yet it's ambient. It's been designed for stir-frying straight from the pack without any pre-boiling. It's aimed at mainstream Chinese food buyers, primarily ABC1 females in the 16-34 age group." The thread and medium egg noodles come in 300g pack at rsp 95p, with 600g family size medium noodles at rsp £1.79. Ironside says ideally the noodles should be merchandised alongside Amoy's Straight to Wok stir-fry sauces and pouch-sealed Chinese vegetables to promote a complete meal solution and maximise sales. "Safeway is doing this and achieving good sales, but other multiples are not geared up to doing this," he adds. The noodles have benefited from hefty market support for the entire Straight to Wok range. Ironside claims 68% of noodle sales are through new or increased category buyers. Amoy is not alone in having a pre-cooked, ambient product. Tazaki Foods has a similar long life, vacuum packed range of Japanese Ubon and Yakisoba noodles. These come in single portion packs with a dry sachet of soup or stir-fry sauce at an rsp of 83p. Since their introduction two years ago, the noodles have achieved full listing throughout the major multiples where sales have been excellent according to sales executive Annette Keen. "We're getting through 5,000 packs a day," she says. Blue Dragon is the third brand in the sector and has one of the widest ranges available that includes Chinese, Japanese and Thai noodles, plus spinach and wholewheat varieties aimed at the health conscious. Brand manager James Le Bouedec says the way in which noodles are used is changing. "Traditionally they've been treated as a supplement to the main part of a meal, but that's diminishing. Now they're being used as the staple food which has led to the development of better quality, spicier and tastier noodles. Our gourmet Mie Nest and Chilli noodles are designed to be used as a main course with a small amount of meat or vegetables incorporated to complement the overall taste." At the same time, there is a substantial increase in the use of instant or flavoured noodles which can be prepared in two or three minutes as a snack or light meal. These products account for the largest part of the market (nearly £38m) and are seeing growth of more than 10% year on year. Blue Dragon has a number of products in this area. Its Express range, ready in two minutes, includes plain noodles for adding to dishes, plus four flavoured varieties, while its Three Minute Noodles now come in 14 flavours. Blue Dragon's distributor, G Costa has recently introduced Nong Shim's Korean noodles and snacks, a range worth more than $1bn in the US. Sco-Fro has recently broadened its range with Saucey Noodles which come with a sachet of authentic oriental sauce in four flavours. Other brands gaining ground include Wanda and Samar, plus Kohlico's two lines: Ko-Lee for mainstream consumers and Sawadee for the ethnic sector. Kohlico claims to be the only company to produce a noodle multipack of five packs with a handle attached (rsp £1). The product is hand-packed and can be a choice of meat or vegetable. MD Kaval Kohli says it's what the multiples want but is concerned about the multiples' latest demand. "What has affected us is Asda's own brand retailing at 9p. It's a smaller pack and the product comes from the Far East. But all the prices have dropped dramatically because of Asda. They've asked for a 9p noodle which costs between 9-10p to produce and going out at wholesale at 12-13p. My fear is what's going to happen to the market." The idea has caught on with another major multiple also wanting a 9p pack for its new economy brand An interesting development is the trend towards more mainstream flavours ­ sure proof of instant noodles' broadening appeal. The Ko-Lee brand includes French onion and mixed vegetable flavours, for example, while Knorr's microwaveable Micro Noodle has mild curry and barbecue among its variants. Target audience for the Knorr product is young children as a side of plate meal accompaniment. The biggest brand in the sector is Batchelors Supernoodles which has a colossal 66.7% share [AC Nielsen] and is most usually sited in the pot noodle fixture. Chilled noodles lie at the other end of the spectrum. Still a gourmet product, they have yet to move from niche to mainstream. Ugo Foods Group, which makes fresh noodles for ready meal manufacturers and restaurants, says it's only a matter of time before they catch on in multiples, and hopes to see delis including fresh stir-fry ingredients. In the next few weeks, the company is launching an own label 1kg family pack of ready to wok noodles at Costco. Six months ago it introduced ready to wok noodles under the Blue Dragon brand ­ for which it supplies chilled products ­ to Waitrose. {{FOCUS SPECIALS }}