Mainebiz

W W W. M A I N E B I Z . B I Z 27 J U LY 1 3 , 2 0 1 5 Tanner, vice president of philanthropy, government and industry relations at the National Specialty Food Association. " ey aren't looking for prepared foods with additives. ey're looking for foods that are more natural and pure," he says. " ey are really changing the way they're eating. ey're focusing less on price and looking more for authen- ticity and taste." And it's an appetite that doesn't seem to be dampened by gyrations in the economy. During the last recession, sales of specialty foods slowed, but still grew 4% to 5% on an annual basis, says Tanner. During the downturn, "people couldn't aff ord to go out and buy a new car," he says. "But they certainly could buy a $4 jar of mustard. Food was one of the last aff ordable conve- niences that people will cut back on." Even as the market for specialty foods has become increasingly crowded in recent years, Stonewall has main- tained its appeal by introducing a steady stream of new products and showing customers how to use them, Tanner says. e company has 800 recipes on its website, provides recipe cards and cooking demonstrations in retail shops. Recipes, in fact, are the top item searched on its site. e Stonewall Kitchen cooking school, which opened in 2008, had more than 10,000 students last year. "People need to know how to use your products," Tanner says. "Stonewall has really done a marvel- ous job with educating people about that, particularly in their stores." at's particularly important when you're constantly introducing new products. Stonewall Kitchen intro- duces about 40 new recipes each year. On the road ahead, Stonewall's new product lineup may include frozen foods. Seeing the success of brands like Petaluma, Calif.-based Amy's Kitchen, King and Stiker say they see room in the market for the classic, comfort foods with clean ingredient lists that are ready to heat and serve. "We just want to take how Stonewall does jams and grilling sauces, and take it to the frozen element," says King. Expansion plans e future for Stonewall includes expansion in the wholesale business, which accounts for about 60% of total sales. e company hopes to get more of its products into retailers like grocers where they haven't been before. "Wholesale was really the driving force of our business," says King. "As we began to expand, we realized that our distribution was just not up there. Even though it feels like we're every- where in New England, try fi nding us in Georgia or Louisiana." Supermarkets are devoting increas- ingly more shelf space to specialty foods to satisfy shifting consumer appetites. Indeed, 82% of sales of spe- cialty foods are made at mass retail- ers like supermarkets, club stores and drugstores, according to the National Specialty Food Association. at has grown by 18.6% since 2012. " ere are more stores today that are a fi t for our product than there have been in the past," says Stiker. "So we're in kind of a nice spot to take advantage of that." e company leaders plan to be highly selective about the supermar- ket chains and specifi c store locations where they put their products. "Our products are not going to be right for every store," says King. "If it's a grocery chain it might be right for 10 of their 100 stores." As the company broadens its reach, it will continue to develop specialty products exclusively for their retail and online channels. In the fall, the com- pany plans to roll out a new website, and reach more of Stonewall customers who are die-hard Amazon shoppers. While some Stonewall Kitchen products have long been sold on Amazon through resellers, sometimes those products would be featured in older packaging or with inconsistent pricing. " at's not the customer experi- ence we want them to have," says Stiker. While Stonewall won't ever have its full lineup on Amazon, the company will start beefi ng up its product line there. "It [Amazon] has become one of the world's largest marketplaces." To accommodate the growth on the road ahead, Stonewall is also expanding its distribution capacity. Next April, the company plans to open a new 74,000-square-foot distri- bution center in Dover, N.H. King says he is not worried that broader distribution will dilute the brand's cache. "I don't think growing the brand is a formula for destroying the brand," says King. He points to other home-grown brands like Burt's Bees and Tom's of Maine, which began in Maine but grew their reach to become more widely available throughout upscale groceries throughout the nation. "I think people love those brands as much today as they did 20 years ago." J e n n i F e r Va n A l l e n , a w r i t e r b a s e d i n Ya r m o u t h , c a n b e r e a c h e d a t e D i t o r i a l @ m a i n e B i Z . B i Z Since 1877 we have been committed to your local insurance needs. P E R S O NA L L I N E S Auto Homeowners Personal Umbrella Boat & Snowmobile Inland Marine C O M M E R C I A L L I N E S Property General Liability Commercial Auto Commercial Umbrella Business Owners Go to www.Patrons.com to find an independent Maine agent near you and achieve peace of mind by protecting yourself, your home, auto or business with our products. Insuring Maine People — Insuring Maine Business Subscribe today for $37.95 THAT'S 20% OFF! Get engaged, inspired and connected with a print + digital subscription to Mainebiz. You'll receive bi-weekly issues, special publications and full online access! Know Maine Business. Or call 845-267-3008 and provide the discount code HM15KMB Order online: mainebiz.biz/knowmainebiz

• Cover