November 27, 2006
Taste test | Sauce and marinade maker World Harbors looks for growth in the food industry from an expanding array of flavors and styles
By Taylor Smith
To hear Steve Arthurs tell it, he's got the best job in the world ˆ at least during lunchtime. As president and CEO of World Harbors Inc., an Auburn-based maker of specialty sauces and marinades, Arthurs has to see what his staff is coming up with in the test kitchen down the hall from his office. Whether it's fajitas with beef marinated in Guadalupe Mountain Fajita sauce or chicken wings coated in World Harbors' Amalfi Coast Italian Grill sauce, Arthurs' research in the name of corporate advancement has its gastronomic benefits.
But beyond grazing in test kitchen, Arthurs has plenty on his plate at World Harbors. The company has expanded its product lines in recent years to include a wider assortment of World Harbors sauces and marinades, as well as a line of all-natural products marketed under the name Acadia Naturals. The company has a handful of new flavors in development and in November launched a food service division targeting restaurants and other industrial kitchens. Meanwhile, World Harbors has ramped up its advertising, targeting grocery buyers and consumers alike with a campaign touting its brands. "We've tried to build the image of the brand much more than we used to," says Karen Foust, vice president of finance and administration.
Formerly known as CV Finer Foods, World Harbors has seen steady domestic and international growth since being acquired in 2000 by Angostura International, a maker of aromatic bitters located in Trinidad and Tobago. (Angostura is the preeminent brand of bitters for cocktail aficionados.) Each year, the company's products find their way into more and more grocery and specialty food stores, according to Arthurs. "We've built a brand recognition," he says, "and that's probably the biggest need if you want to go national."
And though Arthurs and Foust declined to discuss the company's sales figures, there are signs the company is growing. Most visible is the company's plan to spend roughly $3 million to expand its headquarters in Auburn's Kitty Hawk Industrial Park. The build-out is expected to begin this spring and add more than 20,000 sq. ft. of what Arthurs says is much-needed warehouse and administrative space.
Still, World Harbors is stuck between two markets ˆ the niche-oriented specialty foods sector and the mainstream condiment industry that includes household names such as A.1. Steak Sauce and KC Masterpiece. It doesn't quite fit the specialty foods category, largely because World Harbors' products are distributed in supermarkets around the country and in Europe. At the same time, World Harbors isn't as instantly recognizable as those big names in the marinade-and-sauce market. In short, World Harbors is either a big fish in a small pond or a small fish in a big pond. And therein lies the rub. "We consider ourselves a specialty foods company," says Arthurs. "But our challenge is to compete with the big guys, but maintain our integrity while we grow sales."
Flavor of the month
Whether specialty or mainstream, World Harbors is part of a big slice of the specialty foods market. Nearly $7 billion worth of condiments ˆ from sauces and marinades to salsas and mustards ˆ were sold last year, according to the National Association for the Specialty Food Trade, a New York-based trade organization that counts World Harbors as a member. That figure is 21% of all specialty foods spending ˆ the largest category by far, according to NASFT.
World Harbors also is targeting consumers clamoring for products that offer easy mealtime fixes. After all, why bother making a marinade from scratch when you can drench your beef in Acadia Naturals' Adobo Honey Ancho sauce? "It's a matter of convenience," says Denise Shoukas, NASFT's communications director. "They've got that trend behind them, that's for sure."
Beyond playing off convenience, the company also tries to stay ahead of flavor curve. Its more than two dozen flavors range well beyond run-of-the-mill steak sauce, with names like Cuban Style Mojo and Maui Mountain Teriyaki. It's a strategy that's been in place at the company since it was founded in the early 1990s. "With our Jerk sauce in the early 90s, we were the first one out there on the supermarket shelves," says Foust. "Every time we'd go to a show, people would say, 'Jerk sauceˆ I think I'll get this for my boss.' Now, everybody knows what it is."
It's a good strategy, says Shoukas. While some of the flavors seem to teeter on the edge of epicurean decency (Pacific Fusion Maple Wasabi, anyone?), Shoukas says it's important to try to keep ahead of consumers' changing demands. "Consumers can get really bored," says Shoukas. "The more in tune they are as to what's going to be a hit with the consumer, the better."
Being first to market with a certain flavor can be risky, Foust admits. For starters, competitors can quickly copy you and crowd you out of the market. And if consumers don't bite, it can be an expensive mistake. (The company admits its share of flops. In the Acadia Naturals line, the company is discontinuing its Lemon Peppercorn sauce based in part on some less-than-stellar feedback.)
Arthurs uses some unconventional means to find new flavors. For example, using the Internet to keep tabs on what restaurants across the country are serving led him and his staff to develop in 2004 an Argentine-style Chimichurri sauce. "We constantly toy with our flavor profiles," he says. "We have sauces for everything from meat to nuts."
Natural growth
In addition to changing consumer tastes, the company has had to respond to a changing grocery market. After seeing flat or declining grocery sales during each of the past four years, Arthurs says the company had to rethink how it was selling the sauce. "We needed to go after different customers," says Arthurs.
The company's answer was Acadia Naturals, a line of all-natural sauces and marinades World Harbor launched last year. Thanks to those natural ingredients ˆ and the promise of no preservatives ˆ the products have gotten World Harbors a foothold in the lucrative natural foods sections of supermarkets and specialty stores, where shoppers often are willing to pay a premium. "I can charge a dollar more per jar because of those ingredients," says Arthurs.
Another gambit that's paid off, says Arthurs, has been Kosher certification of all World Harbors' products. It's unusual to see a product like Maui Mountain Sweet 'n Sour sauce labeled Kosher, but Shoukas says the designation has transcended its religious origins and become something that consumers look at as a seal of approval. "It's for purity's sake," she says. "It says, 'This was made with care, and this was made with quality ingredients.'"
The Kosher designation also had the unintended effect of helping World Harbors make inroads into international markets like the United Kingdom. A turning point in the company's efforts to boost its export business came when World Harbors' European distributor started bringing the sauces to Kosher butcher shops, says Foust, where they found a niche. "That's where all the growth was in the first year," she says.
As the company expanded into more U.S. and foreign markets, Arthurs and Foust say World Harbors had to do a better job marketing itself. The primary problem, they say, was that World Harbors' products weren't properly branded, with five or six different names on each label, causing confusion among consumers.
So the company two years ago redid all of its packaging, adding distinctive labels that clearly identified World Harbors as the source of the Island Mango or Jamaican Style Jerk Sauce. "We've tried to build an identity of, 'This is World Harbors, this is what we're about,'" Arthurs says. "The more you can get the name out there, the better off you'll be."
These days, Foust says World Harbors is seeing the benefits of a more coherent branding strategy. The company's products are available in supermarkets and specialty food stores in all 50 states, and its export markets are steadily growing. "More national chains have taken an interest," she says. "It's what's really helping us grow."
Arthurs says the company also has worked to build its name recognition outside of the distribution chain. World Harbors launched a regional advertising campaign last year targeting consumers in Chicago and Florida with ads in magazines such as Redbook and newspapers like the Chicago Tribune and the Orlando Sentinel. Meanwhile, World Harbors has targeted the most discerning customers ˆ restaurant chefs. The company this month began peddling its sauces and marinades to restaurants and food-service companies, launching a line of sauces and marinades in industrial-size containers.
While it's unclear whether those efforts will help World Harbors match the brand recognition of an A.1. or KC Masterpiece, the dividing line between specialty and mass-market foods just might be a comfortable place for the company to stay. After all, there are benefits to being a big fish. "A lot of companies still make their product by hand in tubs," Arthurs says. "We're fully automated."
But beyond grazing in test kitchen, Arthurs has plenty on his plate at World Harbors. The company has expanded its product lines in recent years to include a wider assortment of World Harbors sauces and marinades, as well as a line of all-natural products marketed under the name Acadia Naturals. The company has a handful of new flavors in development and in November launched a food service division targeting restaurants and other industrial kitchens. Meanwhile, World Harbors has ramped up its advertising, targeting grocery buyers and consumers alike with a campaign touting its brands. "We've tried to build the image of the brand much more than we used to," says Karen Foust, vice president of finance and administration.
Formerly known as CV Finer Foods, World Harbors has seen steady domestic and international growth since being acquired in 2000 by Angostura International, a maker of aromatic bitters located in Trinidad and Tobago. (Angostura is the preeminent brand of bitters for cocktail aficionados.) Each year, the company's products find their way into more and more grocery and specialty food stores, according to Arthurs. "We've built a brand recognition," he says, "and that's probably the biggest need if you want to go national."
And though Arthurs and Foust declined to discuss the company's sales figures, there are signs the company is growing. Most visible is the company's plan to spend roughly $3 million to expand its headquarters in Auburn's Kitty Hawk Industrial Park. The build-out is expected to begin this spring and add more than 20,000 sq. ft. of what Arthurs says is much-needed warehouse and administrative space.
Still, World Harbors is stuck between two markets ˆ the niche-oriented specialty foods sector and the mainstream condiment industry that includes household names such as A.1. Steak Sauce and KC Masterpiece. It doesn't quite fit the specialty foods category, largely because World Harbors' products are distributed in supermarkets around the country and in Europe. At the same time, World Harbors isn't as instantly recognizable as those big names in the marinade-and-sauce market. In short, World Harbors is either a big fish in a small pond or a small fish in a big pond. And therein lies the rub. "We consider ourselves a specialty foods company," says Arthurs. "But our challenge is to compete with the big guys, but maintain our integrity while we grow sales."
Flavor of the month
Whether specialty or mainstream, World Harbors is part of a big slice of the specialty foods market. Nearly $7 billion worth of condiments ˆ from sauces and marinades to salsas and mustards ˆ were sold last year, according to the National Association for the Specialty Food Trade, a New York-based trade organization that counts World Harbors as a member. That figure is 21% of all specialty foods spending ˆ the largest category by far, according to NASFT.
World Harbors also is targeting consumers clamoring for products that offer easy mealtime fixes. After all, why bother making a marinade from scratch when you can drench your beef in Acadia Naturals' Adobo Honey Ancho sauce? "It's a matter of convenience," says Denise Shoukas, NASFT's communications director. "They've got that trend behind them, that's for sure."
Beyond playing off convenience, the company also tries to stay ahead of flavor curve. Its more than two dozen flavors range well beyond run-of-the-mill steak sauce, with names like Cuban Style Mojo and Maui Mountain Teriyaki. It's a strategy that's been in place at the company since it was founded in the early 1990s. "With our Jerk sauce in the early 90s, we were the first one out there on the supermarket shelves," says Foust. "Every time we'd go to a show, people would say, 'Jerk sauceˆ I think I'll get this for my boss.' Now, everybody knows what it is."
It's a good strategy, says Shoukas. While some of the flavors seem to teeter on the edge of epicurean decency (Pacific Fusion Maple Wasabi, anyone?), Shoukas says it's important to try to keep ahead of consumers' changing demands. "Consumers can get really bored," says Shoukas. "The more in tune they are as to what's going to be a hit with the consumer, the better."
Being first to market with a certain flavor can be risky, Foust admits. For starters, competitors can quickly copy you and crowd you out of the market. And if consumers don't bite, it can be an expensive mistake. (The company admits its share of flops. In the Acadia Naturals line, the company is discontinuing its Lemon Peppercorn sauce based in part on some less-than-stellar feedback.)
Arthurs uses some unconventional means to find new flavors. For example, using the Internet to keep tabs on what restaurants across the country are serving led him and his staff to develop in 2004 an Argentine-style Chimichurri sauce. "We constantly toy with our flavor profiles," he says. "We have sauces for everything from meat to nuts."
Natural growth
In addition to changing consumer tastes, the company has had to respond to a changing grocery market. After seeing flat or declining grocery sales during each of the past four years, Arthurs says the company had to rethink how it was selling the sauce. "We needed to go after different customers," says Arthurs.
The company's answer was Acadia Naturals, a line of all-natural sauces and marinades World Harbor launched last year. Thanks to those natural ingredients ˆ and the promise of no preservatives ˆ the products have gotten World Harbors a foothold in the lucrative natural foods sections of supermarkets and specialty stores, where shoppers often are willing to pay a premium. "I can charge a dollar more per jar because of those ingredients," says Arthurs.
Another gambit that's paid off, says Arthurs, has been Kosher certification of all World Harbors' products. It's unusual to see a product like Maui Mountain Sweet 'n Sour sauce labeled Kosher, but Shoukas says the designation has transcended its religious origins and become something that consumers look at as a seal of approval. "It's for purity's sake," she says. "It says, 'This was made with care, and this was made with quality ingredients.'"
The Kosher designation also had the unintended effect of helping World Harbors make inroads into international markets like the United Kingdom. A turning point in the company's efforts to boost its export business came when World Harbors' European distributor started bringing the sauces to Kosher butcher shops, says Foust, where they found a niche. "That's where all the growth was in the first year," she says.
As the company expanded into more U.S. and foreign markets, Arthurs and Foust say World Harbors had to do a better job marketing itself. The primary problem, they say, was that World Harbors' products weren't properly branded, with five or six different names on each label, causing confusion among consumers.
So the company two years ago redid all of its packaging, adding distinctive labels that clearly identified World Harbors as the source of the Island Mango or Jamaican Style Jerk Sauce. "We've tried to build an identity of, 'This is World Harbors, this is what we're about,'" Arthurs says. "The more you can get the name out there, the better off you'll be."
These days, Foust says World Harbors is seeing the benefits of a more coherent branding strategy. The company's products are available in supermarkets and specialty food stores in all 50 states, and its export markets are steadily growing. "More national chains have taken an interest," she says. "It's what's really helping us grow."
Arthurs says the company also has worked to build its name recognition outside of the distribution chain. World Harbors launched a regional advertising campaign last year targeting consumers in Chicago and Florida with ads in magazines such as Redbook and newspapers like the Chicago Tribune and the Orlando Sentinel. Meanwhile, World Harbors has targeted the most discerning customers ˆ restaurant chefs. The company this month began peddling its sauces and marinades to restaurants and food-service companies, launching a line of sauces and marinades in industrial-size containers.
While it's unclear whether those efforts will help World Harbors match the brand recognition of an A.1. or KC Masterpiece, the dividing line between specialty and mass-market foods just might be a comfortable place for the company to stay. After all, there are benefits to being a big fish. "A lot of companies still make their product by hand in tubs," Arthurs says. "We're fully automated."
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