Spur Tree Spices
Document for Tomato Ketchup Line
Prepared by: Craslyn Benjamin, FSPCA, PCQI , Product and Business Development Architect
This document outlines the developmental process of barbeque sauces from idea conception to market launch recommendation
Product Concepts | Rationale
PHASE 1
The product idea involves developing a base product for a tomato ketchup from which two flavour variations will then be developed from the original base product to go to market. The base products will serve as source formulation for further product development and enhancement, however, the base will be so developed as a finished product that can be launched as is. i.e. Classic Tomato Ketchup.
The main reasons driving the need for developing additional SKUs are new innovation and market demand for consumers (young adventurous eaters/change of lifestyle). There is huge market for ketchup, locally and Spur Tree spices sees this as an opportunity to add a reoccurring product to their production line that can generate consistent revenue.
The opportunity also exist for the Spur Tree brand to capture a significant market share in the domestics trade space as they have the manufacturing capability and capacity to produce an authentic Jamaican line of Ketchup that taste great and is affordable.
These are the variants developed and tested:
Product Description - Tomato Ketchup
Base Ketchup - Jamaican Classic
Development includes formulation of a traditional base condiment using key ingredients such as tomato paste, water, vinegar, sweeteners, salt, and spices.
The below outlines variations developed from the base ketchup
DESCRIPTION
SKU VARIATIONS
DESCRIPTION
RATIONALE
DESCRIPTION
Scotchie Ketchup - Siracha Style
A combination of the original Ketchup base product mix with Caribbean red peppers, scotch bonnet and sweetener to balance the heat
Spicy ketchup is one of the most versatile condiments on the market and the demand continues to increase. Combining the Jamaican scotch bonnet and Jamaican tomato ketchup gives a unique product offering, flavour, heat and sweetness suitable for both the local and export market.
Smoked Garlic & Herb Ketchup
Smoky Sweet balsamic flavour
The market research shows strong demand for Flavoured ketchup where customers in the North American region shows preference in flavored ketchup. This will do well on the local market as there isn't a Flavoured ketchup to compete with SKU on the market.
PHASE 2
Market Analysis
Global Forecast 2022 to 2029 - Original Ketchup | Flavoured Ketchup
Product Validity
Three countries lead the global export market of ketchup: United States, the Netherlands, and Italy. These three alone provided more than half (52%) of the worlds supplies to the industry, supported by few other countries i.e., Germany Spain and Poland for a total of about (15%). The United Kingdom, Canada, France, and others are some the crucial imports destinations for Ketchup.
The changing lifestyles of consumers also includes growing preferences for ready-to-eat fast food items or quick bites which provides a boost to the market growth, the quick-service restaurant (QSR) joints offer varieties of ketchup to improve the flavour of their dishes. There is also an increment in consumer tendency towards organic ketchup because consumers are becoming more health conscious. This trend drives the manufacturers to use chemical free tomatoes and add natural sweeteners to form ketchups that rich in antioxidants, such as polyphenols, which help to reduce the risk of Alzheimer’s and heart disease.
Although tomato ketchup is one condiment found and loved by people, the alarming part is that most of the store-bought ketchup are unhealthy because they contain too much sugar, salt, and unhealthy fats. There are various healthier alternatives in the market like tomato salsa which is a Mexican dip and can be made by using simple veggies, most brands of salsa have little to no sugar. Sriracha, a spicy tomato-base sauce, and tomato paste, an inexpensive tomato concentrates without any added sugar or sodium, these low-cost substitutes are believed to restraint the growth of the ketchup market.
Competitive and Geographic Analysis
The global tomato ketchup market reached a value of US$ 18.3 Billion in 2021 and is expected to reach US$ 22.5 Billion by 2027, exhibiting a CAGR of 3.4% during 2022-2027.
The key companies operating the global ketchup market are Nestle S.A., ConAgra Foods Inc., The Kraft Heinz Company, Unilever, General Mills Inc., Del Monte Food Inc., Kagome, Sky Valley Foods, Red Gold, COFCO Tunhe Co., LTD, Red Duck Foods, GD Foods, and Chalkis Health Industry Co. LTD.
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By product type, it is primarily split into original ketchup and Flavoured ketchup. Though both original and flavored ketchup contains the same ingredients to be deemed “Flavoured”, certain United States Department of Agriculture (USDA) qualifications must be met, which must ultimately meet grade A standard.
The ketchup market is divided into food service and household consumption. The food service segment is predicted to grow at a considerable paste in the upcoming years due to the increasing number of restaurants, cafes, and small eateries worldwide, especially in developing countries. The increased consumer interest in creating a similar culinary experience at home and high compatibility of ketchup with a lot of homemade and packaged or prepared foods items are predicted to contribute to escalating the market size of the product.
Competitive and Geographic Analysis
Distribution
By distribution channel, the market is separated into supermarkets/hypermarkets, online retail stores, departmental stores, and others. The offline channels like supermarkets/hypermarkets and departmental stores have emerged as a major sales channel for the ketchup market and they have a strong market share in the distribution channel. With increase in the demand for ketchup, major manufacturers and retailers are increasing their market share online by connecting directly with customers. Advances in technology have led to an increase in online retailing and the segment is expected to grow at an impressive CAGR during the forecast period.
Asia Pacific market is projected to witness high growth in terms of revenue owning to consumers tendency towards western culture and increasing fast-food consumption. North America market holds a major revenue share in the global market due to the popularity of many quick-service restaurants (QSRs), and the people of countries in this region also prefer ketchup variants. Moreover, presence of giant market players such as ConAgra Foods, General Mills and others in North America and their continuous innovation is further fueling the sales of ketchup in the region.
The Jamaican Market
A recent market report dated July 2022, shows the revenue in the Tomato Ketchup segment amounts to US$23.30m in 2022. The market is expected to grow annually by 2.12% (CAGR 2022-2027). Offline sales channels such as supermarkets and hotels continues to dominate the trade. The impact of the 2019 COVID pandemic also cause an upsurge in the demand for ketchup locally. Consumers see this condiment as the go-to product for adding to may dishes. The demand for Flavoured ketchup also surges as consumers require new flavours and taste from products they are familiar with.
Below shows Tomato Ketchup segment amounts to US$23.30m in 2022
PHASE 3
Raw Material Description - Standards that Govern the Product
INGREDIENTS
onion powder, garlic powder, pimento powder, stabitex, tomato paste, vinegar, brown sugar, liquid smoke, scotch bonnet pepper mash, paprika, water, salt, thyme powder
According to the standards that govern ketchup, the following parameters are to be met for the ketchup to be considered stable and satisfactory:
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Total solids - The lowest grade of the product shall have a total solids of content of not less than 25%
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Acidity - Acidity shall not be less than 1.2% of acid expressed as acetic acid by weight
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Salt - The salt content shall not be less than 1.5% expressed as sodium chloride by weight
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Brix - Brix shall not be less than 26°
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pH value - The pH value shall not be greater than 4.0
Formulation | Research and Development | Product Specification
PHASE 4
Research and Development Report
The below reports shows data gathered from the developmental process done for each SKU.
Spur Tree Tomato Ketchup – Jamaican Classic Report
Date: August 23, 2022 Batch Code: BC- KP01
INGREDIENT
QUANTITY / LB
Water
Tomato Paste
Brown Sugar
Vinegar
Onion powder
Paprika
Pimento powder
Salt
Stabitex
2.45
1.08
0.92
0.38
0.002
0.02
0.01
0.08
0.08
TEST PARAMETERS
Note - Test batch was carried out for a 5 lbs. Sample
Brix before Cooking: 28:28
Temperature before cooking: 39°C
Start time for cooking: 3:13 PM
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Brix after Cooking: 27:27
Temperature after Cooking: 95°C
pH after Cooking: 3.82
End Time for Cooking: 3:34 PM
Spur Tree Scotchie Ketchup – Siracha Style
Date: August 23, 2022 Batch Code: BC- KP02SS
INGREDIENT
QUANTITY / LB
Water
Tomato Paste
Brown Sugar
Vinegar
Garlic Powder
Paprika
Pimento powder
Scotch Bonnet Mash
Salt
Stabitex
2.40
1.08
0.83
0.38
0.002
0.02
0.01
0.15
0.06
0.08
TEST PARAMETERS
Note - Test batch was carried out for a 5 lbs. Sample
Brix before Cooking: 26:26
Temperature before cooking: 30°C
Start time for cooking: 1:45 PM
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Brix after Cooking: 28:28
Temperature after Cooking: 105°C
pH after Cooking: 3.80
End Time for Cooking: 2:15 PM
Spur Tree Tomato Ketchup – Garlic & Herb
Date: August 23, 2022 Batch Code: BC-KP03GH
INGREDIENT
QUANTITY / LB
Water
Tomato Paste
Brown Sugar
Vinegar
Onion powder
Paprika
Pimento powder
Salt
Liquid Smoke
Garlic Powder
Thyme powder
Stabitex
2.40
1.10
0.90
0.38
0.002
0.02
0.01
0.08
0.03
0.02
0.01
0.08
TEST PARAMETERS
Note - Test batch was carried out for a 5 lbs. Sample
Brix before Cooking: 25:25
Temperature before cooking: 29°C
Start time for cooking: 4:00 PM
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Brix after Cooking: 29:29
Temperature after Cooking: 80°C
pH after Cooking: 3.83
End Time for Cooking: 4:20 PM
Product Formula/Recipe
Below outlines the final formulations for SKUs to go to market.
Spur Tree Tomato Ketchup – Jamaican Classic Formulation
Water
Tomato Paste
Brown Sugar
Vinegar
Onion powder
Paprika
Pimento powder
Salt
Stabitex
Total
49.00
21.50
18.31
7.50
0.05
0.50
0.15
1.50
1.50
100
INGREDIENT
Composition/%
Spur Tree Scotchi Ketchup – Siracha Style Formulation
Water
Tomato Paste
Brown Sugar
Vinegar
Garlic Powder
Paprika
Pimento powder
Scotch Bonnet Mash
Salt
Stabitex
Total
48
20.50
16.60
7.50
0.05
0.50
0.15
3.00
1.20
1.50
100
INGREDIENT
Composition/%
Spur Tree Scotchi Ketchup – Garlic and Herbs Formulation
Water
Tomato Paste
Brown Sugar
Vinegar
Onion powder
Paprika
Pimento powder
Salt
Liquid Smoke
Garlic Powder
Thyme powder
Stabitex
Total
48.00
21.90
18.00
7.50
0.05
0.35
0.10
1.50
0.60
0.40
0.10
1.50
100
INGREDIENT
Composition/%
Product Specification
Below outlines product specification sheets for products developed
Product Specification Sheet Base Ketchup
Water, Tomato paste, brown sugar, vinegar, stabitex, salt, paprika, pimento powder, onion powder
INGREDIENTS
Colour
Salt
pH
acidity
Total Carbohydrate %
Total Ash %
Moisture %
Protein %
Total Sugar %
Total fat %
Sodium, mg/100g
Potassium, mg/100g
Calcium, mg/100g
Iron, mg/100g
Calories, Kcal/100g
Calories from fat, Kcal/100g
Extraneous matter %
Total Aerobic plate count (/g)
Yeast
Mould
Coliform
Faecal coliform
Package Type
Net Weight per container
Country of Origin
Wine Red
1.5%
<3.8
>1.2%
14.87
12.8
69.3
2.28
5.96
0.75
4694
283
137
4.57
75.4
6.75
0
1.0*106
1.0*103
1.0*103
1.0*101
absent
Bottles
10oz
Jamaica
Product Description:
Wine red smooth mix (may contain less than one percent extraneous matter). Ketchup is packaged in 10oz bottles.
Instructions for use:
If all the contents from one container is not to be used at once, the following steps should be taken:
-
Shake before removing any of the content
-
Reseal what was not used.
Shelf life: One (1) year
Storage Conditions: Store at room temperature (20-25°C or 70°F). Do not store in warm places.
Product Specification Sheet Scotchie Ketchup - Siracha Style
Water, Tomato paste, brown sugar, vinegar, scotch bonnet mash, stabitex, salt, paprika, pimento powder, garlic powder
INGREDIENTS
Colour
Salt
pH
Acidity
Total Carbohydrate %
Total Ash %
Moisture %
Protein %
Total Sugar %
Total fat %
Sodium, mg/100g
Potassium, mg/100g
Calcium, mg/100g
Iron, mg/100g
Calories, Kcal/100g
Calories from fat, Kcal/100g
Extraneous matter %
Total Aerobic plate count (/g)
Yeast
Mould
Coliform
Faecal coliform
Package Type
Net Weight per container
Country of Origin
Wine Red
>1.5%
<3.8
>1.2%
14.87
12.8
69.3
2.28
5.96
0.75
4694
283
137
4.57
75.4
6.75
0
1.0*106
1.0*103
1.0*103
1.0*101
absent
Bottles
10oz
Jamaica
Product Description:
Wine red smooth mix (may contain less than one percent extraneous matter).
Ketchup is packaged in 10oz bottles.
Instructions for use:
If all the contents from one container is not to be used at once, the following steps should be taken:
-
Shake before removing any of the content
-
Reseal what was not used.
Shelf life: One (1) year
Storage Conditions: Store at room temperature (20-25°C or 70°F). Do not store in warm places.
Product Specification Sheet Smoked Garlic and Herb Ketchup
Water, Tomato paste, brown sugar, vinegar, stabitex, liquid smoke, salt, garlic powder, paprika, thyme, pimento powder, onion powder
INGREDIENTS
Colour
Salt
pH
Total Carbohydrate %
Total Ash %
Moisture %
Protein %
Total Sugar %
Total fat %
Sodium, mg/100g
Potassium, mg/100g
Calcium, mg/100g
Iron, mg/100g
Calories, Kcal/100g
Calories from fat, Kcal/100g
Extraneous matter %
Total Aerobic plate count (/g)
Yeast
Mould
Coliform
Faecal coliform
Package Type
Net Weight per container
Country of Origin
Wine Red
>1.5%
<3.8
>1.2%
14.87
12.8
69.3
2.28
5.96
0.75
4694
283
137
4.57
75.4
6.75
0
1.0*106
1.0*103
1.0*103
1.0*101
absent
Bottles
10oz
Jamaica
Product Description:
Wine red smooth mix (may contain less than one percent extraneous matter).
Ketchup is packaged in 10oz bottles.
Instructions for use:
If all the contents from one container is not to be used at once, the following steps should be taken:
-
Shake before removing any of the content
-
Reseal what was not used.
Shelf life: One (1) year
Storage Conditions: Store at room temperature (20-25°C or 70°F). Do not store in warm places.
PHASE 5
Sensory Analysis
A team of persons were selecting to evaluate the sensory characteristics of aroma, salt, colour, consistency, taste, texture, flavour, and overall acceptability for all three ketchup SKUs developed. A series of testing was carried out over the course of three weeks and feedback gathered to assist with finalizing the best formulations to go to market.
The key persons participated in the sensory are listed below:
The key persons participated in the sensory are listed below:
Position/Company
Name
Danien Reynold
Shawn Roberts
Fiona Downs & Odane Lodge
Geomar Palmer, Danielle Strachand, Dane Wakefield
Chef Jason Lawrence
Craig Rose
Joy-Ann Johnson
Dalion Blake
Albert Bailey
Rani Badaloo
Food Scientist and Product Development Specialist (Florida)
Restauranteur & Supermarket Owner
Spur Tree Spices - Quality Assurance Unit
Spur Tree Spices - Production Unit
Private Chef
Entrepreneur and Foodie
Creative and Marketing Entrepreneur
Marketer and Foodie
Managing Director - Spur Tree Spices
Marketing Director - Spur Tree Spices
A series of external sensory was also conducted simultaneously to gather feedback from regular consumers, housewives, food entrepreneurs, restaurant owners, retailers and foodies across Jamaica.
Sensory Analysis/Results
The 9- point hedonic scale was rated as 1=dislike extremely 2=dislike very much 3=dislike moderately 4=dislike slightly 5=neither like nor dislike 6=like slightly 7=like moderately 8=like very much 9=like extremely. The individual scores were averaged and analyzed.
The sensory attributes evaluated of the ketchup variants reveals that the products have a good sensory quality and overall acceptability.
Analysis
Product Acceptance (% Rate )
Product
Spur Tree Tomato Ketchup – Jamaican Classic Formulation
The original base formulation was developed only using salt and vinegar as preservatives.
A new formulation was developed using stabitex to increase the consistency for trading on the local market. The product was well received and sensory showed need for base ketchup that taste like quality.
95%
Spur Tree Scotchi Ketchup – Siracha Style Formulation
Spur Tree Tomato Ketchup – Garlic and Herbs Formulation
Persons were excited about this variant and ketchup with spice is often paired in Jamaican dishes. The colour and taste were well accepted .
Persons were sceptic to try but loved the flavours of herbs and garlic with 95% saying they would buy the product
85%
95%
Please see detailed sensory results for your reference.
PHASE 6
Costing | Launch
Cost of Goods Sold
The cost analysis for the product development will cover the main materials directly used in developing the product to include raw material, packaging, and labels. Al other cost outside of costs related to actual product development such as insurance, labour, factory rental, electricity etc to be calculated and established by Spur Tree costing unit.
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A low pricing penetration strategy is recommended for launch this line. The product cost should remain fixed and should be affordable for middle and lower customer segment.
Below outlines the minimum cost associated with developing the SKUs
Product Acceptance (% Rate )
Product
Size
Targeted Margins
Total Cost
Suggested Selling Price
ST Tomato Ketchup – Jamaican Classic
12x10oz
127.96 J$
TBC
TBC
ST Scotchi Ketchup – Siracha Style
12x10oz
128.73 J$
TBC
TBC
ST Tomato Ketchup – Garlic and Herbs
12x10oz
130.09 J$
TBC
TBC
Cost Breakdown
Tomato Ketchup – Jamaican Classic
Ingredient
Composition %
5lb Sample
Cost/10oz
Cost/lb
Cost/5lb
Water
Tomato Paste
Brown Sugar
Vinegar
Onion powder
Paprika
Pimento powder
Salt
Stabitex
Bottle
Seal
Total
49.00
21.50
18.31
7.50
0.05
0.50
0.15
1.50
1.50
$ 100.01
2.45
1.08
0.92
0.38
0.00
0.02
0.01
0.08
0.08
$ -
$ 169.65
$ 99.57
$ 102.12
$ 341.52
$ 261.44
$ 583.00
$ 21.86
$ 144.83
$ 83.32
$ 2.63
$ 1,809.94
$ -
$ 182.37
$ 91.16
$ 38.30
$ 0.85
$ 6.50
$ 4.37
$ 1.64
$ 10.86
$ 83.32
$ 2.63
​
$ 422.00
$ -
$ 22.80
$ 11.39
$ 4.79
$ 0.11
$ 0.81
$ 0.55
$ 0.20
$ 1.36
$ 83.32
$ 2.63
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$ 127.96
Scotchie Ketcup - Siracha Style
Ingredient
Composition %
5lb Sample
Cost/10oz
Cost/lb
Cost/5lb
Water
Tomato Paste
Brown Sugar
Vinegar
Garlic Powder
Paprika
Pimento powder
Scotch Bonnet Mash
Salt
Stabitex
Bottle
Seal
Total
48.00
21.50
16.60
7.50
0.05
0.50
0.15
3.00
1.20
1.50
$ 100.00
2.38
1.01
0.80
0.38
0.00
0.02
0.01
0.25
0.08
0.08
$ -
$ 169.65
$ 99.57
$ 102.12
$ 341.52
$ 261.44
$ 583.00
$ 100.00
$ 21.86
$ 144.83
$ 83.32
$ 2.63
​
$ 1,909.94
$ -
$ 171.09
$ 79.66
$ 38.30
$ 0.85
$ 6.50
$ 4.37
$ 25.00
$ 1.64
$ 10.86
$ 83.32
$ 2.63
​
​
$ 424.22
$ -
$ 21.39
$ 9.96
$ 4.79
$ 0.11
$ 0.81
$ 0.55
$ 3.13
$ 0.20
$ 1.36
$ 83.32
$ 2.63
​
​
$ 128.73
Smoked Garlic and Herb Ketchup
Ingredient
Composition %
5lb Sample
Cost/10oz
Cost/lb
Cost/5lb
Water
Tomato Paste
Brown Sugar
Vinegar
Onion powder
Paprika
Pimento powder
Salt
Liquid Smoke
Garlic Powder
Thyme powder
Stabitex
Bottle
Seal
Total
48.00
21.90
18.00
7.50
0.05
0.35
0.10
1.50
0.60
0.40
0.10
1.50
$ 100.00
2.40
1.10
0.90
0.38
0.00
0.02
0.01
0.08
0.03
0.02
0.01
0.08
$ -
$ 169.65
$ 99.57
$ 102.12
$ 341.52
$ 261.44
$ 583.00
$ 21.86
$ 402.78
$ 327.38
$ 144.83
$ 83.32
$ 2.63
$ 2,540.10
$ -
$ 185.77
$ 89.61
$ 38.30
$ 0.85
$ 4.58
$ 2.92
$ 1.64
$ 12.08
$ 6.55
$ -
$ 10.86
$ 83.32
$ 2.63
​
$ 439.10
$ -
$ 23.22
$ 11.20
$ 4.79
$ 0.11
$ 0.57
$ 0.36
$ 0.20
$ 1.51
$ 0.82
$ -
$ 1.36
$ 83.32
$ 2.63
​
$ 130.09
Developing a strong demand for product launch
While there is room for new entrant in the local ketchup market the industry is very noisy with lots of ketchup brands offering low quality. To succeed in the local ketchup market, the new product offerings must possess key differentiation features to capture market share. The product was developed on these features and so can be branded and positioned accordingly:
-
Usage - Use as Sauce, Dip or Glaze
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Highlight key ingredients – e.g., Garlic and fresh Herbs
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No artificial Flavours| No Preservative
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Consumers are looking for functionality and convenience and so packaging is key in launching new product. The below packaging is recommended for launching the ketchup line.
PHASE 7
Conclusion and Recommendations
Product development has grown more and more important as a necessity to stay competitive, especially with global competition. Target costing must be negotiated and established before development starts so that proper marketing, positioning and targeted selling prices can be determined.
The Spur Tree brand must focus on low pricing strategy, geographic distribution and offering flavorful and tasty products are differentiation features.
The overall acceptability of characteristic and sensory evaluation of all three Ketchup SKUs graded as acceptable for consumption and shows high potential for market dominance as the feedback from the markets demonstrates demands for flavourful ketchup variants.
Product differentiation is critical for success in this market. The packaging must be functional and convenient for the consumers of this product as such I am recommending packaging that are easy to use and can be reused.
Brand positioning is also a critical key to success for launching this line.