Carol M. Bareuther
Incorporate dips and spreads into the deli’s prepared food offerings.
Little things can add up. This is especially true of dips and spreads. The value of these palate pleasers spans from an additional basket ring to attracting whole families to the deli for dinner due to restaurant quality offerings. Extra flavor, customization, and a strong satisfaction component are why this category is a dollar driver that deli operators can harness to increase sales.
It’s worth it! Consider that the dips and spreads market is forecast to grow from $98.02 billion in 2023 to $132.1 billion in 2028 at a compound annual growth rate of 6.2%, according to the October 2024-released Dips and Spreads Global Market Report 2024, from The Business Research Company, with U.S. offices in Media, PA.
To create the cha-ching, first look at trends in consumer demand and manufacturer innovation in dips and spreads. Then, consider how shoppers use these products. Finally, consider how to double dollars by selling these both as products and incorporated into deli food service offerings.
UNIQUE FLAVORS, CLEAN INGREDIENTS
Customers shopping for dips and spreads in the deli seek better-for-you, yet flavorful, options that offer a change on the classics, according to Aimee Tsakirellis, executive vice president of marketing for Cedar’s Mediterranean Foods, Inc., based in Ward Hill, MA. “The ‘swicy’ trend of blending sweet and spicy elements to create a flavorful combination has become popular among consumers. We recognized that demand and introduced a 10-ounce Topped Organic Hot Honey Hommus in 2023. It’s quickly become a bestseller and fan favorite.”
Traditional with a twist is one foundation on which Hannah Awada, founder of Hummus Goodness, in Birmingham, MI, built her business. The other is commercial production that starts with soaking dried garbanzo beans and adding tahini, olive oil, real lemon juice, and garlic cloves for an ingredient list that looks like a home recipe.
“Our flavors include Taco Hummus, Balsamic Hummus, Beet Hummus, which is made with Michigan-grown beets that we roast, and Pickle Hummus. These are all sold in 8-ounce containers,” says Awada.
Pickle flavor is popular in other types of dips, too. Pleasant Prairie, WI-headquartered Good Foods Group’s newest product is a Dill Pickle Chip Dip, made from plant-based ingredients, such as cauliflower, dill pickle relish and pumpkin seeds. The company has also introduced a Nacho Cheeze Chip Dip, which is also plant-based. Both dips are free of the top nine major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans and sesame.
“These non-dairy dips are inclusive to a broad audience while still delivering on flavor,” says Briana Voss, senior director of omnichannel marketing.
Pickles also appear in cheese alternative dips by Spread’Em Kitchen Ltd., based in Richmond, British Columbia. Flavors in the line include Dill Pickle & Truffle, Beet & Balsamic, Cilantro & Pumpkin Seed, Jalapeño & Lemon, and Spinach & Artichoke.
“Our bestsellers in the deli are the classic, time-honored favorites, French Onion, and Chives & Garlic,” says Melissa Mills, founder and chief executive officer, who adds the company’s cheese alternative dip sales are up 244%. “Many consumers are cutting back on nonorganic dairy, and cashews provide a silky, creamy base that offers the same rich texture as traditional sour cream or mayo-based dips, but without the downsides of seed oils, starches and gums.”
Dips with real cheese and other dairy ingredients, like Greek Yogurt, especially in novel flavor profiles, are also fan favorites.
Cedar’s Mediterranean Foods’ feta dip line, available in 8-ounce containers, has recently expanded to include Spicy Pepper, Kalamata Olive, and Garlic Chives flavor variations. Likewise, the company’s Tzatziki Dip collection added Artichoke Spinach, Cucumber Garlic, Mediterranean Hot Pepper, and a Tzatziki with Feta this fall.
Southern-favorite pimento cheese is the base of a dozen traditional to trendy-flavored dips from Birdie’s Pimento Cheese, in Spring Hill, VA. These include Smoked Gouda + Roasted Red Pepper, Cream Cheese + Black Pepper, Ghost Pepper, and, in the spring, Onion Dill.
“We’ve built out using everything from seasonal to adventurous flavors for inspiration. Each dip is named so customers know exactly what they are getting,” says Robin Allen, owner.
In order of popularity, the five top-selling dips from Don’s Prepared Foods are Cajun Krab, Buffalo Chicken, Artichoke & Asiago, Taco Bean, and Pimento Cheese.
“Our three newest flavors of cream cheese spreads are Triple Onion, White Truffle, and Honey Fig & Pistachio,” says Carl Cappelli, senior vice president of sales and business development for the Schwenksville, PA-based company.
Castello Cheese, with U.S. offices in Basking Ridge, NJ, introduced its premium imported cheese dips in early 2024.
“The Castello Whipped Dips include bestseller Garlic & Herbs, plus two others, Cracked Pepper and Paprika & Chili, which are not far behind in popularity,” says Kevin Rider, brand manager for Arla Foods, in Viby, Denmark, the parent company of Castello Cheese.
EVERYDAY-EVERYWAY & ENTERTAINING
The versatile use of dips and spreads drives growth in the category, according to The Good Foods Group’s Voss. “With food prices remaining high, this category shows its value through multiple applications such as pre-made recipe ingredients and as a companion to a gourmet sandwich. Products like our 2-ounce cups of Avocado Mash show the versatility of perfectly portioned convenience.”
Allen says Birdie’s Garlic Parmesan Pimento Cheese stirred into pasta is a quick meal maker. “All of our products are great as baked potato toppers.”
Beyond bagels and breakfast, cream cheese spreads can double on wraps, sandwiches and burgers, says Don’s Prepared Foods’ Cappelli. “Consumers seek solutions and ideas. The deli can sell more by showing this via use in-store, in-ad, or online.”
Entertaining occasions are a huge opportunity to promote dips and spreads.
Dips and sauces topped Deli Entertaining with 52% of category sales, according to 52-week Circana data ending Nov. 26, 2023, published in the International Deli Dairy Bakery Association’s What’s In Store 2024. Add spreads, which increases to 71%, with trays, pickles and relish, and holiday meals making up the remainder.
“Our newest globally inspired cream cheese spread flavors, such as Honey Fig & Pistachio, marries well with meats, cheeses, olives, and nuts on a charcuterie platter,” Cappelli says. “Also, delis can use six dips and create a sampling platter, paired with a unique cracker or bread, for easy entertaining or something shoppers can take to a party.”
Seasonal flavors are well-suited to winter holiday gatherings. Cedar’s Foods introduced its Organic Pumpkin Hommus a decade ago, and it’s been in demand each fall ever since, says Tsakirellis. “It goes great with all desserts, sweet crackers, and chips and can be incorporated in savory items like salad dressings and soups. Most consumers can’t picture hommus in soup, but, with proper shelf talkers and utilizing endcap displays to highlight other recipe ingredients like olive oil, chicken stock, lemons and more, consumers can visualize how to create a tasty meal, enticing them to give it a go and purchase these products.”
The Good Foods Group launched its Pumpkin Spice and Cranberry Jalapeño dips this season as a limited-time offer, while Birdie’s Olive Pimento Cheese, with its flecks of green olives, is a hit for the holidays.
SELL THE PRODUCTS
Sales in dips and spreads continue to boom as increased basket sizes grow amongst consumers, says Tsakirellis. “Expanding offerings and continually innovating with the introduction of new products is essential to catch the eye of the consumer.”
Introducing new products in the deli and prepared foods set is most effective through strategic in-store placements and promotional activities, says the Good Foods Group’s Voss. “Positioning these items prominently in the supermarket will catch the eye of busy consumers looking for convenient, flavorful and versatile choices.”
Create displays that function as “mini occasions,” suggests Spread’Em Kitchen’s Mills. “These displays bundle everything a customer would need to make a meal or host a small gathering. By grouping complementary items — dips, cheeses, crackers, baguettes, cut veggies — you give them the confidence to explore while surprising and delighting them with an effortless solution.”
“Deli operators can capitalize on popular diet trends by displaying pita chips on an endcap display next to refrigerated offerings like the Feta Dips, Labne Dips and hummus products,” says Tsakirellis. “Use shelf talkers to say something like ‘everything you need to create the perfect mezze platter,’” says Tsakirellis.
SELL A MEAL
Sell dips and spreads by incorporating them into the deli’s prepared food offerings.
“We’ve seen excellent results when retailers incorporate our dips into feature sandwiches,” says Mills. “For instance, a Green Goddess sandwich featuring our spinach cashew dip became a bestseller, and the success of that sandwich drove increased sales of the dip itself, as customers were inspired to recreate the sandwich at home and experiment with the product in new ways.”
Another great application is incorporating our dips into party platters, Mills adds. “Offering customers the option to upgrade the standard veggie dip to one of our unique cashew-based dips for a small additional cost can add value. This customization taps into the growing consumer demand for personalized options, enhancing customer satisfaction and loyalty.”
Delis can rival QSR and Fast Casual restaurants with hot and cold food selections paired with dips. Ken’s Foodservice, Inc., in Marlborough, MA, offers its dipping cups line spanning familiar flavors like ranch dressing to cult classics such as Boom Boom Sauce.
Other popular flavors include Buffalo NY Style Blue Cheese Dressing, Dijon Honey Mustard Dressing, Cannonball Barbecue Sauce, Cocktail Sauce and Tartar Sauce. The cups come in 1-, 1.5-, 2- and 3-ounce portions. Operators can tuck ranch dressing, for example, into pre-made salads for grab-and-go merchandising, and Boom Boom Sauce with orders of fried chicken wings, onion rings and egg rolls.
“We also sell gallon sizes of our sauces for behind-the-glass preparations of dressed wings or to make a differentiated coleslaw,” says Serenity Maxwell, foodservice brand manager. “Some 60% of consumers purchase prepared foods, and these products can help to entice shoppers to do so from the supermarket deli.”
