Specialty-food makers hope to cook up some sweet deals

NEW YORK -- Jennifer Korb's hands are going to be tired.

After three days of slicing her specialty coffeecakes for potential distributors and retail buyers at the Summer Fancy Food Show, she has yet another task to complete: Handwrite more than 120 notes to those who tasted samples of her cakes and left contact information at her booth.

Korb, founder of Jennifer's Kitchen, wants to do all she can to secure distribution at a retail store. Right now, she only sells her confections online. She spent Sunday through Tuesday with 25 other fledgling food creators chasing similar dreams: getting their first big break in the culinary world.

Their opportunity came as part of a new program by the National Association for the Specialty Food Trade, which ran the convention that put the start-ups' products among 180,000 more-established brands at the largest marketplace for specialty foods and beverages in North America. The dream-makers: more than 24,000 supermarket representatives, catering companies, gift-bag makers and other gourmet goods buyers.

The start-ups — among them a gemologist-cum-cookie baker and a maple-syrup-making duo — received free marketing, packaging and flavor tips, as well as legal advice from NASFT members. In addition, if their application was accepted, they could purchase space at the culinary confab for $1,500. The other 2,300 food firms there shelled out $3,300 to more than $39,000 apiece to display their more well-known products.

The fledgling firms' booths, with sparse décor and staffed by moms, sisters and spouses of founders, faced tough competition. Bigger players such as shortbread king Walkers and jellybean giant Jelly Belly had huge, more elaborately decorated spaces filled with representatives.

"This is the place to be," said peanut and satay sauce-maker Wan Fischer from her understated booth. She came from Indianapolis, and to save money, was sleeping on her New Yorker son's couch at night.

Next to Fisher, Wes Ward promoted salsa created by his wife, Sarah Beth. The goal of the Greensboro, N.C., couple: "To learn more about the industry and pick up leads for (potential) supermarket sales," he says.

Farther away, in a far back corner of the show, stood Korb.

Korb, who sells frozen meals to make extra money, hoped to get her big baking break.

Her booth was co-worked by Korb's good friend Lori Snider and Snider's daughter, Kate. The three wore brightly colored aprons and talked up each cake's moistness and flavor.

Korb's back story, like that of many other firms at the show, isn't entirely upbeat. During the financial crisis, she is spending thousands of dollars on an unproven business.

She shelled out about $5,000 on Fancy Food-related expenses alone. That outlay doesn't include the money she spent to outfit an 800-square-foot commercial kitchen back home in Evansville, Ind.

Her husband, a consultant, doesn't have consistent work, so she has big dreams that her $25.95 cakes can help fund their retirement as well as cover college costs for her 18-year-old son.

"I'm not looking to become a millionaire," Korb says. She just wants financial security.

Many other dream-chasers had similar stories: They talked passionately about their products — but also fretted about the thousands in small-business loans they took to get their businesses going. Some of the start-up costs estimates ranged from $15,000 to $80,000.

These folks should be concerned, says Bruce Mattel, an associate professor at the Culinary Institute of America. "It's very, very challenging to launch a new luxury-type item," he says.

Start-ups not only have to produce a good product, they also have to deal with a slew of "red tape," such as getting the right licenses and complying with government food rules. In addition, they also have to factor in often-big marketing costs, he says.

While the specialty business is growing — retail sales alone rose 8.4% to $48 billion last year, according to the NASFT — it's incredibly competitive, Mattel says.

Already, there are signs that new brands are suffering. Last year, 2,349 specialty foods were introduced, down from 3,158 in 2007, according to NASFT.

But at the convention, there were some early signs of success: Sweets-maker Sara Snacker Cookie sold eight cases of her product to a gift-bag maker.

For others, a game of aggressive follow-up starts.

Korb didn't get any sales but knows it's up to her to "sell her dream," starting with the follow-up notes.

"I've really worked hard to get here," she says. And besides, "My product tastes good."