Italian pasta and sauce maker De Cecco has very positive expectations for 2016 after an excellent growth in 2015 both in terms of revenues and profitability. In the United States the group generates revenues of around $60 million which are estimated to have grown 13% in 2015, thanks to growing demand for imported quality food, continued focus on the premium segment and new distribution deals.
HIGH END MARKET ON THE RISE – “Despite a slight slowdown in the low-end of the market, there is dynamism in the highend segment,” Marco de Ceglie, outgoing chief executive of De Cecco Usa, told Italianfood.net. “Sales of imported pasta are growing significantly in the Us. American food lovers have realized that pasta products are not the same. There is interest in quality products. Consumers are willing to spend one dollar more on average on a good product”.
FROM NORTHWEST TO NORTHEAST – De Cecco, that generates most of its US sales in California and the Northwest, sees growth also in the Southeast, thanks to recent distribution agreements. Since 2014 De Cecco is present in Florida at the grocery store chain Publix and expects in 2016 to take full benefits of a new distribution deal with Winn-Dixie and Bilo, which operates in Alabama, Florida, Georgia, Louisiana and Mississippi. Despite the Midwest remaining a challenging market, Chicago is also growing. The pasta maker, which has a commercial office in New York and ships its products to two warehouses in New York and California, is looking to increase direct control of the retail distribution.
THE LONG-TERM STRATEGY – “This is a long-term strategy, which becomes possible as the company keeps growing,” de Ceglie said. De Cecco already distributes directly at supermarket groups like Safeway and Kroger but relies on distributor for larger retail store chains.