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What’s Cooking… Updating Trends and Techniques in Cookware and Bakeware. An IHA Webinar—October 24, 2012. Our Second Webinar for IHA. An IHA Webinar—October 24, 2012. Hugh J. Rushing Executive Vice President Cookware Manufacturers Association. On the webinar today….
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What’s Cooking… Updating Trends and Techniques in Cookware and Bakeware An IHA Webinar—October 24, 2012
Our Second Webinar for IHA An IHA Webinar—October 24, 2012
Hugh J. Rushing Executive Vice President Cookware Manufacturers Association On the webinar today… An IHA Webinar—October 24, 2012
14 years as a manufacturer • 21 years with the CMA as executive vice president • 12 years as adjunct professor of marketing and management, University of Alabama/Birmingham • Youthful experience in retail An IHA Webinar—October 24, 2012
The Magic Pan… An IHA Webinar—October 24, 2012 By Dolores Hycock
In a word:THE CMA’s Mission & Publics The Cookware Manufacturers Association promotes the optimal and appropriate design, manufacture, sale, use and servicing of cookware and bakeware through quality standards development, information sharing, education, and impartial communication to members of the association, their trade partners and to consumers.
SOME BRANDS YOU KNOW… A complete list at: www.cookware.org/membership.php
The results please…. • CMA has gathered and reported statistics for more than 80 years. • CMA members report their shipments and CMA also monitors each and every import record for cookware and bakeware. • Statistics represent shipments to all portions of the market, not a single or a few channels of distribution.
For full year 2011 • Aluminum cookware $807 million • 4.6% over 2010 shipments
For full year 2011 • Aluminum cookware 1.003 billion • up 4.6% over 2009 shipments • Stainless steel cookware $624 million up 29% over 2010 shipments
For full year 2011 • Aluminum cookware 1.003 billion • *up 4.6% over 2010 shipments • Stainless steel cookware $534 million • *up 29% over 2010 shipments • Cast iron/POS/Copper $387 million • up 18% over 2010
For full year 2011 • Aluminum cookware 1.003 billion • *up 4.6% over 2010 shipments • Stainless steel cookware $534 million • *up 29% over 2010 shipments • Cast iron/pos/copper $426 million • up 18% over 2010 • Bakeware (metal) $396 million • up 20%over 2010
For full year 2011 • Aluminum cookware 1.003 billion • *up 4.6% over 2010 shipments • Stainless steel cookware $534 million • *up 29% over 2010 shipments • Cast iron/pos/copper $426 million • up 18% over 2010 • Bakeware (metal) $464 million • up 20% over 2010 • Kitchenware $612 million • up 13%over 2010
For full year 2011 • Aluminum cookware 807 billion • *up 4.6% over 2010 shipments • Stainless steel cookware $534 million • *up 29% over 2010 shipments • Cast iron/pos/copper $426 million • up 18% over 2010 • Bakeware (metal) $464 million • up 20% over 2010 • Kitchenware $572 million • up 13% over 2010 • Tea Kettles $43 million • up 17% over 2010
Interestingly… Private label and imported cookware shipments increased 33% in 2011 over 2010 as retailers restocked, particularly with house brands. Much of this increase was due to restocking due to very low level inventory following 2010’s holiday season.
So far in 2012… Branded shipments are down slightly through eight months of 2012. Not suprising, considering 2011. Large retailers are cautious. Election year traditionally breeds caution in consumers and retailers alike. Opportunities for fast moving independents. Be alert. Could be a busy November/December with season later than usual.
Specific consumer preferences Aluminum cookware
Specific consumer preferences • Aluminum cookware • Anodized 38% of $ business • Colored exterior 56% of $ • Polished exterior 6% • Nonstick roughly 80% of $ and 90% of units
Specific consumer preferences • Aluminum cookware • Anodized 38% of $ business • Colored exterior 56% of $ • Polished exterior 6% • Nonstick roughly 80% of $ and 90% of units FACT: Majority of consumers cannot identify the metal used in cookware (other than cast iron). Polished pans are all “stainless steel” to consumers.
Specific consumer preferences Stainless Steel cookware
Specific consumer preferences • Stainless Steel cookware • Multi-ply (3 to 9 ply) 66% $ but 40% of units… • Fabricated bottom 32% of $ but 58% of units… • Single wall 2% of $ FACT: Well built fabricated bottom stainless units can perform as well as tri-ply/multi-ply units do.
Specific consumer preferences Bakeware -Evenly split between metallic and glass as materials FACT: Demand for silicone bakeware generally has fallen off dramatically in the past two years.
Specific consumer preferences • Bakeware -Evenly split between metallic and glass as materials • Popularity of items by rank: • Cakepans • Cookie sheets • Meat/roasters • Muffin pans • Loaf pans • Pie pans
Where do consumers shop? • For Cookware • Mass merchants including clubs: 33% • (down a bit from year earlier) • Big Box including outlet & gourmet 20% • TraditionalDepartment stores 13% • (up a bit from year earlier) • Moderate Department Stores 14% • Odd markets/military/direct sales 3% • Internet merchants 7% (up 2%) • Outliers: grocery/drug/television
Where do consumers shop? • For Bakeware • Mass merchants including clubs: 42% • Big Box including outlet & gourmet 20% • National moderate department 13% • Grocery/Drug 6% • Traditional department stores 3% • Internet 8.5% • More traditional and older consumers buying bakeware
Demand factors based on 80 years of statistical correlations New household formation: marriage, divorce, graduation. Fairly steady year-to-year.
Demand factors based on 80 years of statistical correlations New household formation: marriage, divorce, graduation. New home construction
Demand factors based on 80 years of statistical correlations New household formation: marriage, divorce, graduation. New home construction Substantial remodeling, particularly of kitchen/eating area
Demand factors based on 80 years of statistical correlations New household formation: marriage, divorce, graduation. New home construction Substantial remodeling, particularly of kitchen/eating area General economic uncertainties
Demand factors based on 80 years of statistical correlations New household formation: marriage, divorce, graduation. New home construction Substantial remodeling, particularly of kitchen/eating area General economic uncertainties The more entertaining the consumer does, the more likely they are to buy/expand and use cookware/bakeware in the home. A social product.
Demand factors based on 80 years of statistical correlations New household formation: marriage, divorce, graduation. New home construction Substantial remodeling, particularly of kitchen/eating area General economic uncertainties The more entertaining the consumer does, the more likely they are to buy/expand and use cookware/bakeware in the home. A social product. Cookware demand negatively correlated with restaurant visits.
Consumer preferences should drive Retailing Strategies • They want to feel the product • (we know..then they want one in the box!)
Consumer preferences and Retailing Strategies They want to feel the product.Strategy: Display cookware outside of the box so consumer can heft and feel
Consumer preferences and Retailing Strategies They want to feel the product They seek information
Consumer preferences and Retailing Strategies They want to feel the product They seek informationStrategy: Utilize educational materials to help train sales staff to prompt for and answer questions.Resource: www.cookware.org/tools_introduction.php
Consumer preferences and Retailing Strategies They want to feel the product They seek information They seek affirmation
Consumer preferences and Retailing Strategies They want to feel the product They seek information They seek affirmationStrategy: Seek to build consumers confidence that good cooking is a combination of the right tools and fresh food along with simple techniques and instructions. Retailers have all three!
Advances in materials and coatings Non-stick coatings are better than ever
Advances in materials and coatings Non-stick coatings are better than ever Longer lasting
Advances in materials and coatings Non-stick coatings are better than ever Longer lasting More scratch and heat resistance
Advances in materials and coatings Non-stick coatings are better than ever Longer lasting More scratch and heat resistance Concerns about PFOA don’t penetrate “Ceramic non-sticks” are a mixed bag Look for some potentially revolutionary coatings that may be ready for market in 2013!
Advances in materials and coatings Non-stick coatings are better than ever Quality of manufacturing has increased
Advances in materials and coatings • Non-stick coatings are better than ever • Quality of manufacturing has increased • Value equation has increased
Advances in materials and coatings • Non-stick coatings are better than ever • Quality of manufacturing has increased • Value equation has increased • More options than ever
Advances in materials and coatings • Non-stick coatings are better than ever • Quality of manufacturing has increased • Value equation has increased • More options than ever • More manufacturers have taken niche positions. Specialized products
Advances in materials and coatings Non-stick coatings are better than ever Quality of manufacturing has increased High fashion melds with utility
Advances in materials and coatings • Non-stick coatings are better than ever • Quality of manufacturing has increased • High fashion melds with utility • The art of the handle • Color both durable and beautiful • The pan as “art” New vs. Old
Looking to the future…. 1. More sophisticated alternatives in non-stick
Looking to the future…. • More sophisticated alternatives in non-stick • More US-made product as manufacturers return to domestic manufacturing and more European manufacturers entering US market