April 3, 2006
Filling the pantry | Stonewall Kitchen teams up with a Food Network star for a new product line
By Chris Churchill
Told who was waiting on the phone one day about a year ago, Jonathan King uttered three words: "Oh my God." Then the Stonewall Kitchen co-owner lunged for the phone and took Ina Garten's call.
He was glad he did, because the subsequent conversation proved intriguing. Garten, a cookbook author and television personality who's known as the Barefoot Contessa, proposed lending her name and recipes to a new line of Stonewall products. It would be a first for both parties: Garten would have products to capitalize on the success of her books and television show, and the York-based specialty foods company would produce and market a line entirely apart from its own award-winning brand.
After some initial hesitation, King and Stonewall co-owner Jim Stott accepted the offer. And in March, Stonewall rolled out the Barefoot Contessa Pantry line of products, an array that includes chocolate chunk cookies, sauces, marinades, jams and more ˆ 40 products in all.
The target audience? The millions who devote substantial couch time to The Food Network.
Among that cuisine-crazy subculture, Garten is a star. Her cookbooks are immediate bestsellers; her first, The Barefoot Contessa Cookbook, has sold more than 100,000 copies. A million cable subscribers watch her TV program each week, according to The Food Network. Think of her as Martha Stewart with warmth, charm ˆ and no prison record.
Under the five-year agreement, Stonewall is in charge of producing, distributing and marketing the line, and Garten gets to keep an undisclosed share of the profit. "If we can't prove that we're able to market and distribute the brand," King says, "she'll be able to walk away and take it somewhere else."
If early returns are any indication, Garten will find no need to do so. In the three weeks after the Barefoot Contessa line went on the market, Stonewall sold 100,000 units of the product. There are already plans to add more items to the line this summer. "It's insane," King says, barely able to contain his glee. "There's such pent-up demand, I can't believe it."
It isn't, however, as if Stonewall has been struggling on its own. From its start 15 years ago at New Hampshire farmer's markets, Stonewall Kitchen has grown into a specialty-foods player, with annual revenues of $34 million, 270 employees and stores across New England. That success has made it a bellwether for the industry. "Stonewall is one of the more rapidly growing companies," says John Roberts, president of the New York-based National Association for the Specialty Food Trade. "Retailers and other manufacturers pay a lot of attention to what Stonewall is doing."
The right ingredient
So why link with Garten and stray from a strategy that is working? The question initially bedeviled King, who admits to early reservations about the deal. Before Garten came calling, Stonewall had been solely focused on increasing its name recognition and enlarging its retail chain. "Our concentration has always been on the Stonewall Kitchen brand," he says. "And we did not want to create a competitor."
Garten also was not the first to call seeking a licensing agreement with Stonewall. King says the company has received, but declined, at least a dozen such offers. The Ernest Hemingway Foundation, for example, once made an inquiry, but Stonewall decided that a testosterone-drenched writer who celebrated lion hunting, among other pursuits, wasn't a good fit for a line of food products.
But Garten was different than the others, King says. She shares Stonewall's
simple-foods-done-well sensibility and has a compelling personal history. Garten in the 1970s left her job as a White House budget analyst to open a specialty-foods store on the eastern end of Long Island, N.Y. She turned the success of that store (which carries Stonewall products) into a series of books and a television show launched in 2002. "We're sort of looking at it as a strategic alliance," King says. "We're helping Ina, and Ina's helping us build a brand."
Ever ambitious, Stonewall wants to swell annual sales to $75 million-$100 million within "a few years," King says. He hopes the Barefoot Contessa line will add $10 million annually toward the goal. "It's another avenue to bring us to where we want to be," he says.
To Roberts, the arrangement makes sense. Most larger food companies, he says, produce and market more than one brand, so why shouldn't Stonewall? The deal allows the company to expand sales without having to move into unfamiliar production or distribution territory, he notes, as Stonewall manufacturers Barefoot Contessa products in York and distributes them through its established catalogue and retail network.
Roberts expects retailers to welcome the pairing. "Here comes an item from Stonewall, but it's not Stonewall," he says. "And it's backed by a telegenic personality that's well known. Retailers will look at that and say, 'Wow. That's a good thing.'"
Vicki Tarbell, owner of The Good Table in Belfast, is preparing to carry the Garten line, though it has not yet arrived in her Main Street store. Like Roberts, she thinks customers will be attracted to the Barefoot Contessa name.
But Tarbell questions how the Garten line will be different from the products Stonewall is already selling. There have long been Stonewall jams, she notes, and now they'll be Garten jams, too. How will she differentiate them for her customers? "There's a bit of overlap," she says. "People might say, 'What's the difference?'"
Roberts also warns that the Contessa line had better be yummy, because the Garten crowd, like Stonewall's customer base, is well-heeled, knows its food and won't accept anything but stellar quality ˆ especially when a jar of "Ina's favorite" BBQ sauce costs $6.95. Strong early sales will dive if quality isn't up to par, Roberts says.
Garten has yet to tape a Food Network episode since her line went on sale. King hopes Garten will be able to mention the line once or twice on the show, although The Food Network may frown on such a move. Still, even a quick reference could quickly boost sales.
After all, if Oprah Winfrey even sneezes toward a brand name, there's a stampede to stores. "These food personalities have a significant impact," Roberts says. "It's not as broad based as Oprah, but it's pretty intense. And it moves product."
He was glad he did, because the subsequent conversation proved intriguing. Garten, a cookbook author and television personality who's known as the Barefoot Contessa, proposed lending her name and recipes to a new line of Stonewall products. It would be a first for both parties: Garten would have products to capitalize on the success of her books and television show, and the York-based specialty foods company would produce and market a line entirely apart from its own award-winning brand.
After some initial hesitation, King and Stonewall co-owner Jim Stott accepted the offer. And in March, Stonewall rolled out the Barefoot Contessa Pantry line of products, an array that includes chocolate chunk cookies, sauces, marinades, jams and more ˆ 40 products in all.
The target audience? The millions who devote substantial couch time to The Food Network.
Among that cuisine-crazy subculture, Garten is a star. Her cookbooks are immediate bestsellers; her first, The Barefoot Contessa Cookbook, has sold more than 100,000 copies. A million cable subscribers watch her TV program each week, according to The Food Network. Think of her as Martha Stewart with warmth, charm ˆ and no prison record.
Under the five-year agreement, Stonewall is in charge of producing, distributing and marketing the line, and Garten gets to keep an undisclosed share of the profit. "If we can't prove that we're able to market and distribute the brand," King says, "she'll be able to walk away and take it somewhere else."
If early returns are any indication, Garten will find no need to do so. In the three weeks after the Barefoot Contessa line went on the market, Stonewall sold 100,000 units of the product. There are already plans to add more items to the line this summer. "It's insane," King says, barely able to contain his glee. "There's such pent-up demand, I can't believe it."
It isn't, however, as if Stonewall has been struggling on its own. From its start 15 years ago at New Hampshire farmer's markets, Stonewall Kitchen has grown into a specialty-foods player, with annual revenues of $34 million, 270 employees and stores across New England. That success has made it a bellwether for the industry. "Stonewall is one of the more rapidly growing companies," says John Roberts, president of the New York-based National Association for the Specialty Food Trade. "Retailers and other manufacturers pay a lot of attention to what Stonewall is doing."
The right ingredient
So why link with Garten and stray from a strategy that is working? The question initially bedeviled King, who admits to early reservations about the deal. Before Garten came calling, Stonewall had been solely focused on increasing its name recognition and enlarging its retail chain. "Our concentration has always been on the Stonewall Kitchen brand," he says. "And we did not want to create a competitor."
Garten also was not the first to call seeking a licensing agreement with Stonewall. King says the company has received, but declined, at least a dozen such offers. The Ernest Hemingway Foundation, for example, once made an inquiry, but Stonewall decided that a testosterone-drenched writer who celebrated lion hunting, among other pursuits, wasn't a good fit for a line of food products.
But Garten was different than the others, King says. She shares Stonewall's
simple-foods-done-well sensibility and has a compelling personal history. Garten in the 1970s left her job as a White House budget analyst to open a specialty-foods store on the eastern end of Long Island, N.Y. She turned the success of that store (which carries Stonewall products) into a series of books and a television show launched in 2002. "We're sort of looking at it as a strategic alliance," King says. "We're helping Ina, and Ina's helping us build a brand."
Ever ambitious, Stonewall wants to swell annual sales to $75 million-$100 million within "a few years," King says. He hopes the Barefoot Contessa line will add $10 million annually toward the goal. "It's another avenue to bring us to where we want to be," he says.
To Roberts, the arrangement makes sense. Most larger food companies, he says, produce and market more than one brand, so why shouldn't Stonewall? The deal allows the company to expand sales without having to move into unfamiliar production or distribution territory, he notes, as Stonewall manufacturers Barefoot Contessa products in York and distributes them through its established catalogue and retail network.
Roberts expects retailers to welcome the pairing. "Here comes an item from Stonewall, but it's not Stonewall," he says. "And it's backed by a telegenic personality that's well known. Retailers will look at that and say, 'Wow. That's a good thing.'"
Vicki Tarbell, owner of The Good Table in Belfast, is preparing to carry the Garten line, though it has not yet arrived in her Main Street store. Like Roberts, she thinks customers will be attracted to the Barefoot Contessa name.
But Tarbell questions how the Garten line will be different from the products Stonewall is already selling. There have long been Stonewall jams, she notes, and now they'll be Garten jams, too. How will she differentiate them for her customers? "There's a bit of overlap," she says. "People might say, 'What's the difference?'"
Roberts also warns that the Contessa line had better be yummy, because the Garten crowd, like Stonewall's customer base, is well-heeled, knows its food and won't accept anything but stellar quality ˆ especially when a jar of "Ina's favorite" BBQ sauce costs $6.95. Strong early sales will dive if quality isn't up to par, Roberts says.
Garten has yet to tape a Food Network episode since her line went on sale. King hopes Garten will be able to mention the line once or twice on the show, although The Food Network may frown on such a move. Still, even a quick reference could quickly boost sales.
After all, if Oprah Winfrey even sneezes toward a brand name, there's a stampede to stores. "These food personalities have a significant impact," Roberts says. "It's not as broad based as Oprah, but it's pretty intense. And it moves product."
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