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BOUILLON PRODUCTS
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PRODUCT HISTORYHERB-OX0 brand bouillon was introduced in 1918 by the Pure Food Company of Mamaroneck, New York. This company, a private concern dedicated to the manufacture of bouillon, was acquired by Reckitt & Colman Inc. in 1986. Seven years later, Reckitt & Colman decided to divest several branded product lines in an effort to focus upon their core brand asset, the FRENCH'S trademark. As a result, Hormel Foods Corporation acquired HERB-OX0 brand bouillon on July 5, 1993. PRODUCT DETAILThere are 14 different HERB-OX0 SKU's included in the Grocery Products Division product line. These SKU's are a combination of three different product forms (cubes, powders, packets) and three different flavors (chicken, beef, and vegetable). Beyond the traditional retail market, HERB-OX0 is sold through vending, military, foodservice, and specialty product channels as well. Each distribution channel has its own unique and specialized products and pack size. PRODUCT USESBouillon is primarily used in recipes as a flavor enhancer and secondarily as a broth/hot beverage. Gravies, marinades, soups, stews, rice dishes, pasta dishes, and stir fry are just a sample of the broad spectrum of recipe applications. JO OCR ERROR Bouillon is a French term meaning "to boil", referring to the product's most common preparation practice. However, bouillon is also used in its dry form as a flavor enhancer, much like a seasoning or spice. Consumers regard bouillon as a kitchen staple, much like coffee, sugar, ketchup, or flour. Bouillon is a substitute for homemade stock, canned broth, and dry soups. CATEGORY OVERVIEWThe bouillon category is $100 million and growing. It is a very well defined category with significant competition from Borden (Wyler's) and CPC International (Knorr). Category volume is spread relatively even throughout the United States, with slightly higher than average indices in regions with large ethnic populations. HERB-OX0 ranks among the Top 3 national brands and is the leading brand throughout the Northeast and select Western markets. Although HERB-OX0 has a national ACV of 60%, nearly 50% of brand volume comes from the Northeast. Bouillon sales are seasonal and highest in the October-March cold weather months. Bouillon category volume is equally split between the cube and powder forms. The target market consists of females in the 18-64 age range who cook. Consumers appear to favor chicken flavored bouillon over beef by almost a two-to-one margin. MARKETING SUPPORTIn the past, there was very little national advertising support in the bouillon category. Sales were promoted via offinvoice price promotions, trade funding, and couponing. Typically, coupons were dropped during the seasonal peaks, most commonly around the winter holidays. Today HERB-OX0 Bouillon fields an integrated marketing plan including television, in-store couponing, FSI's, direct mail, recipe programs, on-shelf recipe programs, and prepack displays. HERB-OX0 Bouillon's positioning is best summarized as: "HERB-OX0 Bouillon makes common food taste uncommonly good". PRODUCT BENEFITSHERB-OX0 is a trusted and familiar brand name with a lOO year old image. Consumers who use HERB-OX0 know it not only as the brand their mothers use, but their grandmothers as well. HERB-OX0 has a very distinct and unique flavor. It has been appropriately described as having a roasted note in its flavor profile. Research shows that consumers appreciate HERB-OX's unique flavor, and that it ranks equally with the competition in preference. HERB-OX0 is available in the cube, granule, and packet forms, and is the only major bouillon brand to offer a Low Sodium Broth & Seasonings Packet product. HERB-OX0 is value priced versus the market leader, up to 20% lower depending on pack and size. |
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