SupplySide

Vegetarian Dishes Go Mainstream

May 1, 2003 Deborah Silver Comments

Posted in Articles, Vegetarian, Topics

For years, vegetarian cooking languished as the entrée stepchild. Neglected, unwanted and considered more troublesome than their worth, vegetarian dishes historically were relegated to the lesser position of side dish.

But the times, they are a-changin’. Amid the shifting currents of culinary fashion, vegetarianism has sharpened its image, gained a following and become a powerful force in the industry.

“Companies are confronting several new realities,” says Ray Sierengowski CCE/CCC, corporate research chef and lead scientist of culinary development with Kellogg Company in Battle Creek, MI. “There’s slow growth in many of their core businesses. People are adopting healthier eating habits as part of a lifestyle change, not a fad. And vegetarianism of one sort or another is spreading. The food industry, from manufacturers to independent restaurateurs, has had to stand up and take notice.”

Vegetarian cuisine clearly translates into good business. According to Mintel Consumer Intelligence, a Chicago-based market-research firm, the total vegetarian-food market segment is worth about $1.25 billion today, and sales of meat-alternative products (retail and foodservice) alone have surged nearly 40% annually for the past eight years, reaching $500 million per year.

The bottom line: Items once considered part of a small product current are now part of the main product stream. And it’s a powerful one, given the number of consumers who claim to be total or partial vegetarians.

Based on a 2000 survey of 968 adults by the Vegetarian Resource Group (VRG) in Baltimore, 2.5% never eat meat, poultry or fish, the classic definition of a vegetarian — which translates into some 5 million vegetarian adults in the United States. Many more, 4.5%, eschew only meat and/or poultry. Young people are also taking up vegetarianism in growing numbers. A survey of 1,240 6- to 17-year-olds indicated that 2% — about 1 million school-age kids — do not eat meat, poultry or fish. In fact, the Centennial, CO-based National Cattlemen’s Beef Association is so concerned with the trend that it has responded by launching a website, www.cool-2b-real.com, encouraging teenage girls to “Keep It Real” by eating beef.

But don’t be fooled by those statistics: The market for vegetarian products is even higher than the numbers would indicate. As a result of today’s health and wellness focus, vegetarian products are not just for vegetarians anymore, and an increasing number of carnivores are purchasing meat-alternative products. According to another VRG poll, 57% of the population “sometimes,” “often” or “always” orders a vegetarian item when dining out. These vegetarian-wannabes-when-they-want-to-be are helping push meatless cuisine to the forefront. Gardenburger, Inc., Portland, OR, whose soy-based meat alternative products garner a 22% market share, estimates that four-fifths of its customers are not vegetarians.

“There are large numbers of equal-opportunity consumers who eat stir-fry with tofu one day and steak the next day,” says Terry Trice, vice president of marketing for Riceland Foods Inc. in Little Rock, AR.

Company line
A wide array of vegetarian items are currently available in supermarkets and are being marketed by some of America’s largest food companies, such as Kraft, Kellogg, ConAgra, General Mills, Heinz, Unilever and Dean Foods. These names join well-established vegetarian food companies such as White Wave, Nasoya, Eden Foods, Vitasoy, Westbrae and LightLife in bringing the vegetarian message to the masses.

Kellogg took an early stand in the growing vegetarian movement, buying Worthington Foods, Inc. in 1999. Worthington’s Morningstar Farms brand is the country’s largest manufacturer of soy-based meat alternatives, dominating the field with an almost 50% share. Since its purchase, Morningstar Farms has increased its product line with such frozen-food items as vegetarian stuffed sandwiches and bite-sized corndogs. Acquisition, however, is only one way in which Kellogg is embracing the trend. Sierengowski now spends about 20% of his time developing vegetarian products, such as the soy (or veggie) burger sold at Burger King units, and mock-chicken dishes currently under development for several quick-service operators.

Other companies are hot on the acquisition trail. In 2000, Kraft Foods International Inc., Northfield, IL, acquired Boca Burger Inc., a manufacturer of soy-based meat alternatives with an 11% market share. Kraft views the purchase as a platform for a greater presence in soy-based products. General Mills Inc., Minneapolis, has purchased Small Planet, a producer of organic foods, and Pittsburgh-based H.J. Heinz Co. invested nearly $100 million for a minority stake in The Hain Celestial Group Inc., Garden City, NY, whose brands include Arrowhead Mills cereals, DeBole’s pastas, Terra Chip snacks and Westsoy soy beverages. Heinz also acquired the U.K.-based Linda McCartney brand of frozen vegetarian meals. MasterFoodServices in Vernon, CA, now owns Seeds of Change, an organic line of frozen and shelf-stable products. The company also markets vegetarian rice bowls under the umbrella of its Uncle Ben’s product line.

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