Q&A with ITALPASTA – Western Grocer

Interview with Piero Luciano, Director of Retail Sales, North America

NOV 1, 2023

1 – How is the category performing?

In the L52W period ending April 23, 2023, the Total Pasta category is valued at $381M dollars and experiencing inflationary growth in dollars (+1%) with declines in tonnage at -4%. The average retail has increased 10% to $2.02, with 44% of sales volume sold on TPR. With the category tonnage in decline, it suggests that consumers are consuming slightly less pasta, despite the growing population.

The West holds a 28% share of the total category. In the same period, the Total Pasta category in the West is valued at $127M dollars and is experiencing inflationary growth at +16% with declines in tonnage at -2%. The average retail in the West has increased by 16% VYA, to $2.83.

I’m pleased to say that Italpasta is outpacing the category with +58% growth in dollars, and +19% growth in tonnage. And we’re the fastest growing brand in the West, with a +167% dollar share change.

SOURCE: NIELSEN– NATIONAL GR+DR+MASS L52W – PE APRIL 23, 2023.

2 – What big shifts/trends have you seen in the pasta category in the last year or so – and what’s driving them?

• Diversification of pasta shapes: During covid, manufacturers were forced to limit production to a handful of shapes to meet the over-whelming demand for pasta. As we continue to rebound from covid, offering a variety of shapes provides some novelty for consumers, helping to elevate the sophistication of a pantry-staple. The yearning for familiar and nostalgic foods will influence meal choices. Simple, no fuss, home cooking will continue to ride the tide post- pandemic.
• Rise in plant-based and vegan options: As plant-based diets continue to gain in popularity, we have seen a surge in the availability of alternative plant-based pasta options like lentils, chickpeas, and quinoa. These alternatives offer a source of protein and cater to the needs of individuals who follow this lifestyle. However, these options often come with a larger price tag, which could be an obstacle in today’s economy. Traditional semolina pasta continues to meet the needs of those seeking plant-based options in an economical way.
• Emphasis on sustainability: Environmental consciousness has also influenced the pasta industry, leading to a larger emphasis on sustainable practices. Some brands are focused on reducing their carbon footprint, using sustainable packaging options, or ethically sourcing of ingredients.

3 – What goes into manufacturing a premium pasta?

Since Italpasta was founded in 1989, we have been focused on perfecting the art of manufacturing the finest pasta in Canada. We have accomplished this by manufacturing a thick-walled pasta that stands up to the toughest kitchens, by using only the highest quality durum semolina available in Canada, and by having full control of the manufacturing process.

From hand-selecting the highest quality durum semolina, to the mixing and extruding stages of production, and the strict control of the temperature during the drying process, our process is a delicate balance of using only the finest Canadian durum semolina, the newest Italian technology and applying the utmost care. It takes exceptional skill to ensure that each pasta product that leaves our facility is perfect every time. This is, and has always been, our primary focus.

4 – Import vs Domestic debate – preference in the West?

Price is often a significant factor for consumers when choosing between Imported Italian pasta and Domestic pasta. Imported pasta may be more expensive due to transportation costs, which can influence some consumers to opt for domestic pasta, especially if they are on a tight budget. Perceptions of quality can also be a significant factor. Some consumers may perceive imported pasta as higher quality or more authentic. However, when you consider that Italian pasta manufacturers are often purchasing Canadian durum wheat semolina, it stands to reason that domestic pasta is of equal or superior quality. Our commitment to quality is upheld by our refusal to use any lower grade or blended semolina in our pasta production. Using a lower quality raw material will result in a darker, greyish tinge to the pasta. We only use 100% Canadian durum semolina and that is why our pasta has a bright, golden colour to it.

Lastly, consumers in the West, have shown a growing interest in purchasing pasta that is made in Canada. Buying Canadian helps to support local businesses, reduce the carbon footprint associated with transportation and helps to boost our economy.

5 – How does pasta fit into today’s economic reality?

• Versatility: Pasta is an incredibly versatile food, which makes it suitable for a wide variety of dishes and cuisines. It can be prepared in numerous ways with almost endless combinations of sauces, vegetables, and proteins.
• Convenience: Pasta is convenient and easy to cook – a favourite among those new to cooking and a staple for those experienced cooks who like to draw on their creativity. Because it is a pantry staple, it is often the go-to-meal for those families with busy schedules.
• Affordability: Pasta is a relatively inexpensive way to feed a family compared to other food options. It is a budget-friendly choice for consumers looking to provide a healthy and satisfying meal for a wide range of people.
• Comfort food appeal: Pasta has a comforting and satisfying quality that resonates with many people. It is often associated with childhood memories and home-cooked meals shared with family and friends. At Italpasta, it’s not just pasta…
• Nutritional value: A pasta meal can contribute to a well-balanced diet when paired with nutritious sauces, a variety of vegetables and protein options. It is a good source of complex carbohydrates; and contains essentials vitamins and minerals like B vitamins and iron.