Read the latest foodservice news from Red Gold, plus trends and insights important to your business.

Restaurant-Branded Ketchup Is the Smart Choice for a Chain

Have you ever wondered why some of America’s top restaurant chains opt to brand their own ketchup rather that use a national brand of ketchup? It’s simple. They are confident that consumers trust and love their brand and their own branded ketchup only reinforces that fact—not detract from it.

A 2018 independent survey by Datassentials of more than 2,800 consumers found that 87% of consumers embraced the idea of restaurant-branded ketchup or that serving a national brand made no difference in their choice of a restaurant in their dining choice.

The growth in restaurant-branded ketchup is similar to the growth of private label sales growth in supermarkets. Consumers today are confident in the quality of private label products and in a restaurant chain’s bold move to opt for their own restaurant-branded ketchup versus promoting a national brand.

A 2018 independent survey by Datassentials of more than 2,800 consumers found that 87% of consumers embraced the idea of restaurant-branded ketchup or that serving a national brand made no difference in their choice of a restaurant in their dining choice. Survey respondents thought restaurant-branded ketchup meant that they ketchup was either specially formulated to match the restaurant’s menu or that the restaurant was confident of its own brand and wished to promote in on its tables.

Similarly, private label sales growth in supermarkets continues to grow. According to a new report by Nielsen, private label sales growth was at a 2.1% clip in annual growth back in September 2017. By September 2018, private label annualized growth had more than doubled to 4.6%. Meanwhile, top national brand sales in supermarkets were at just .8%. In fact, private label sales have driven over $6.2 billion in growth during the period, up 4.6% in dollars and3.2% in units.

Key to the growth in private label and in restaurants who are willing to switch from a national brand of ketchup to their own is the confidence of consumers that private label no longer means just a cheaper price. Over the last five years Nielsen’s national survey of consumers found an increased willingness to splurge for store brands by paying equal to or even more for store brands versus national brands. Among premium products, private labels are growing sales at twice the rate of name brands.

Restaurant-branded ketchup can offer a premium position for a chain. Through unique label design and messaging that can promote delivery, take-out or social media on the bottle or PC packet, or by offering organic or non-GMO project verified ketchups, a restaurant branded ketchup can send a premium message with every squeeze.

Is it time to make the switch from a name brand ketchup to your own restaurant’s brand? Trends point to now, and Red Gold is the market leader in helping chains grow their own brand through innovative ketchup formulas and support for label design.

Take a look at your current ketchup purchase level. If you are buying 20,000 cases or more per year, then it makes sense to create your own brand! Red Gold can assist you with your brand label design. Request your free sample of any of Red Gold ketchup products now, tell us that you are interested in making the switch to Red Gold and a sales representative will contact you.