-By Bob Ingram

When shopping for gifts, many consumers are going for a more tasteful approach — they're giving food.

Between 2004 and 2006, the latest period for which sales figures are available, edible gift sales increased 47 percent to almost $16 billion, according to "Food Gifting in the U.S.," a report from market research publisher Packaged Facts, based in Rockville, Md. Furthermore, sales are expected to grow another 45 percent by next year, to more than $23 billion.

Granted, a full-fledged recession has occurred since 2006, but the case for continued food gift growth is a convincing one. "In recessionary times, specialty food purchases have been strong because they are viewed as affordable luxuries," notes Stephen F. Hall, CEO of consulting firm Food Marketing International, based in Tucson, Ariz.

While overall gift sales have decreased in recent years, food gift sales have accelerated. Consumer interest in food-giving is booming in part because of frustration with traditional gifting and the desire to give a gift that's unique, personal, indulgent, convenient, fun to share and almost sure to please. In short, food gifts are a no-brainer for many shoppers.

A rising interest in gourmet, natural and organic, and other specialty foods is also fueling demand, and these kinds of food gifts not only mean premium pricing, but also brand image enhancement and a profitable trial-use segment, which are all excellent reasons for manufacturers and retailers to feed the trend.

Where the Sales Are

As far as where consumers are buying food gifts, brick-and-mortar retailers account for 47 percent of edible gifts, while online and direct marketers account for 32 percent, with independents, franchises and distributors making up the remainder, according to the Packaged Facts report.

The growth of food as gifts has certainly not been lost on specialty retailers. New York-based Dean & DeLuca, a chain of upscale stores that sells food, wine and kitchenware, has long been a leader in this category. The retailer has a sophisticated gifting program that lets shoppers choose gifts by price, occasion and theme. Gift cards are also a popular option — which, incidentally, along with gift certificates, is the only gift segment that grew faster than food (a 59 percent jump) in the Packaged Facts report.

Even before the escalation of food gifting, premium chocolates had long been a popular edible present at Dean & Deluca and other retail outlets. For its part, Dean & Deluca features a "Chocolate of the Month" gift program with prices ranging from $720 for 12-month delivery to $180 for a three-month program.

Medford, Ore.-based Harry and David is another specialty retailer that takes food gifts seriously, deriving about 70 percent of its gift food sales from catalogs. Beyond the catalog business, its online and direct-marketing sales have recently jumped more than 14 percent, while its wholesale business, through outlets like Costco, Target and Macy's, has grown steadily as well.

Gift Baskets

Gift baskets are another growing segment of food gifts that are estimated to account for about $4 billion in sales. David Porat, owner of Chelsea Market Baskets, one of the Outstanding Retailers of 2008 selected by the members of the National Association for the Specialty Food Trade (NASFT), observes, "The success of our business is partly attributable to the focus on quality gift baskets or specialty food gifts, yet I like the idea that we are selling more than a pretty basket, but a well-thought-out design that is made up of products that have integrity and a story behind them." Chelsea Market Baskets opened in 1997 in Manhattan's Chelsea Market.

One of the fastest-growing gift basket ideas is "cause" baskets, which raise money for specific charities or cater to socially conscious consumers. Health food gift baskets, meanwhile, are a new and growing trend, as well as a means of giving a friend or loved one a nudge toward a healthier lifestyle.

Joe Leone's in Point Pleasant Beach, N.J., another NASFT Outstanding Retailer, has magnificent Italian-themed baskets that are available in more than 25 themes ranging from "Farewell" to "Engagement," as well as standard "From the Italian Pantry" baskets ranging in price from $75 to $200. Joe Leone's can customize any basket from $100 to any denomination of choice.

NASFT Outstanding Retailer The Pasta Shop in Berkeley, Calif., has a collection of gifts and gift baskets, and has also added a line of four gift packs such as the Cheese & Salami Emergency Kit for $45 and the Pasta Dinner Gift Pack for $60.

As long as retailers continue to be inventive in their offerings, it looks like food will be a gift that keeps on giving.


The Season for Giving

A report released in December 2008 from The NPD Group in Port Washington, N.Y., substantiates the food-giving trend, showing that 52 percent of consumers report giving food gifts at Christmas, far and away the largest season for giving presents.


Incredible Edibles

As the world of food gifts grows larger, companies are branching out with some rather nontraditional products. Here are a few examples:

Edible Arrangements: These bouquets of fresh fruits from the company of the same name, which started in 1999, are available at 879 stores worldwide, online or via phone. Fruit bouquets can be complemented with chocolate-dipped fruit Edible Wedding Favors: While photo frames, wine bottle stoppers, and candles are still popular, couples now frequently choose edible wedding favors. Candy is a traditional option, dating back to Renaissance times in Italy when candy-coated Jordan almonds were given as favors. Others include coffee and cocoa mixes, along with a truly unusual favor from Tiny Tin Edible Flowers — precious tins filled with seeds of edible flower
More Online

Learn more about the latest trends in specialty foods by visiting the U.S. Foodlink Web site at www.usfoodlink.com.