Business Opportunities Weblog

January 31, 2007 by Rich Whittle | 1 Comment

The Wall Street Journal:

Instant ramen noodles, long hawked as a cheap, quick food for college kids and others with lean budgets, are going gourmet.

Last fall, Union Foods Newcorp. of Irvine, Calif., launched several ramen-noodle products, including Gourmet Snack Noodles Soup and Mamma Mia microwaveable noodles, that are low in sodium, have no monosodium glutamate and no trans fats. The company also is pushing new noodle lines infused with vegetables, as well as ones with spices and sauces that appeal to different ethnic tastes.

The company is hoping to lure, among others, people who once feasted on ramen noodles in their youth but are now looking for a healthier alternative.

In addition to taking the unhealthy ingredients out of its noodles, Union Foods is putting good stuff into a more diversified line of products. For instance, it’s injecting noodles with vegetables like spinach and beets. It offers a line of “picante,” or spicy, noodles called Enchilosa, and came out in October with a higher-end product called Fiesta that comes in a biodegradable container, not the traditional Styrofoam. Both target Hispanic consumers.

Instant ramen noodles — which typically come in a cup or a square package that costs 10 cents to 50 cents a pop — is well entrenched as a cheap, quick meal: just add hot water, some packaged ingredients and let it sit for three minutes. But it’s also known for being chock-full of savory but unhealthful ingredients, such as trans fats, sodium and monosodium glutamate, or MSG.

The U.S. is the world’s fourth-largest consumer of ramen noodles, with 3.9 billion packages sold in 2005, according to the Japan-based International Ramen Manufacturers Association. China is No. 1. But U.S. ramen sales have been sliding due to the explosive growth of ready-to-serve soups that are more convenient for consumers.

Photo by Union Foods Newcorp..

In Ideas, Niche, Sales, Strategy | 1 Comment