Market leader HAK’s targeted promotional campaigns and product innovations have recently put pulses back on the menu. This has made not only the brand but also the entire product category of preserved vegetables more relevant to new and existing users. It has also resulted in a sharp rise in the company's market share. Nicole Freid, Director of Marketing & Innovation at HAK, reveals how one of Europe’s largest producers of preserved fruit and vegetables is tying in with the latest dietary trends.
HAK’s preserved fruit and vegetables fall within the dry grocery category, which has seen very little growth for years. Isn't that problematic for a company with growth ambitions?
“‘Dry groceries’ is an umbrella term that includes many product categories. When it comes to preserved vegetables, there are actually more possibilities than ever before. This is especially true in HAK’s case. As people include more fruit and vegetables in their diet, we are seeing increasing consumption of vegetables in all forms. This applies in particular to pulses, which represent 25% of the preserved vegetables category and are mostly sold in tin or jars. Pulses are a trend at the moment. With people wanting to reduce their intake of meat and carbohydrates, pulses are the perfect ingredient in today's menu. The Health Council of the Netherlands and Voedingscentrum, which advises consumers on healthy, safe and sustainable food choices, both regard beans as a food that should be eaten every week because they contain high levels of vegetable protein, vitamins, amino acids and fibre. So there has been a significant rise in sales of various types of beans in recent months: supermarket sales are nearing double-digit growth and, as the market leader driving the trend, HAK is showing an even faster growth rate of 15%. This is an exciting development for us. Our 35% market share in pulses is increasing rapidly. And this is just the start. Five years from now I think beans will account for 40% of the preserved vegetables category.”
HAK has also innovated its packaging. Has that contributed to the success?
“Our existing customers are still very attached to our iconic glass jars. For them, HAK continues to stand for ‘Dutch’, ‘local’ and ‘trusted’ – concepts that are increasingly relevant. However, for new, often younger, consumers the new packaging is part of the appeal. A while ago we started presenting our preserved vegetables in standing pouches, which have a more modern feel for this target group. The special in-bag cooking process gives the beans a lovely firm bite, and, because there is no liquid to drain off, the pouch makes things very easy. The beans can simply be added to a salad or one-pot meal as they are. This is very much in tune with the way ethically conscious young consumers choose to eat.”
What role did the adverts featuring Herman den Blijker play in the success story?
“The ‘add beans’ campaign with Herman was right on the money - partly because Herman’s authority and love of Dutch tradition make him the perfect fit for our brand. But it was also partly because we did a great deal of research on the best way to approach the campaign. The Dutch like to stick to a certain menu and find it difficult to suddenly start preparing entirely new dishes. Then there’s the fact that many Dutch people don’t know how to turn beans into a great meal. They don’t know where to start. So we came up with the idea of ‘add beans’. You don't have to completely change what you eat. You can make dishes you eat every week richer, more nutritious and more varied by adding beans. This is proving very popular as an accessible and inspiring suggestion that can be applied daily. The success of the campaign has made us the main driving force behind the category growth.”
What else is HAK planning to do this year, besides adding beans?
“We have a number of innovations in the pipeline. Unfortunately, I can’t say much about it at this stage. We will certainly continue our ‘add beans’ commercials with Herman. We’re also planning a major online media campaign. And there will be ‘add beans’ displays in the fresh and chilled food sections in stores to inspire consumers. Such as, ‘Salad? Add beans!’ We’re also persuading our retailers of the logic of displaying preserved vegetables at the front in the store next to the fresh vegetables, rather than throughout the store. Consumers associate certain types of vegetables with particular packaging: you buy endive lettuce and chicory fresh, but you always buy peas and beans in a jar or tin. Nevertheless, fresh and preserved vegetables belong together in the shopper's mind and displaying them next to each other ensures 100% confrontation in the store. An growing number of retailers are coming round to this way of thinking and some, including some of the Albert Heijn stores, are already implementing it – or plan to in the near future.”
The United Nations has declared 2016 the International Year of Pulses. Is HAK going to tie in with that?
“Absolutely. We’re one of the supporters of ‘De Blije Boon’ (‘the happy bean’), a category initiative that aims to make beans more popular in the Netherland. It sounds a bit like guerrilla warfare on behalf of the bean, but we’re confident that there is still room for growth within the category. We want to bring about a fundamental change in people's behaviour through strong advertising campaigns, innovation and close cooperation with influencers, such as food bloggers and retailers. We want our beans to make us maximally relevant on the consumer’s plate.”
Does HAK also have plans for foreign markets?
“We definitely see opportunities in foreign markets. Pulses are seldom eaten in Belgium and Germany, where we have established markets, yet the Mediterranean diet, which includes pulses, is rapidly gaining popularity in both countries. In years to come we will undoubtedly realise a greater percentage of our revenues across the border. And beans will certainly be part of the picture.”
