Siete Looks to Beans to Build Share of Plate
Mexican-American food maker Siete announced on Monday the launch of canned beans, a move that takes the brand from snacks, sides and condiments squarely into the center of the plate.
The two-SKU line, which is currently rolling out to stores, will help the company expand to new parts of the store while continuing to marry its founders’ heritage with a better-for-you positioning.
“We always knew that this was a space we wanted to enter,” Miguel Garza, Siete co-founder and CEO, said. “As we’ve had massive distribution increases over the past several years, there’s a growing familiarity with our brand that allows us to innovate in new product categories. The canned bean category hasn’t seen a boost in recent years and we’re excited to bring our own version to market.”
The beans will join Siete’s lineup of over 60 products across tortillas, tortilla chips, potato chips, hot sauces, seasonings and, most recently, grain-free cookies, with the launch coming as the company said it is approaching $250 million in retail sales. The line is available in two flavors, Refried Pinto Beans and Refried Black Beans, in 16 oz cans for $2.49 each.
Beans are a staple ingredient in Mexican cooking and core to his family’s heritage, Garza said, but the company had wanted to wait on entering the category until it had strong brand recognition and a solid grasp of its consumers. Historically Siete has debuted products in the natural channel before moving into grocery and mass, but this launch will roll out simultaneously in Whole Foods, Sprouts, on the brand’s own website and in select Walmart locations.
“There’s been a lot of excitement from retailers as we’ve further developed our meals portfolio and beans are a great example of something that many of our retail partners were excited to launch,” Garza said. “Since the product category is familiar to the consumer, we saw beans as an opportunity to launch broadly.”
The bean category will find Siete competing against large incumbents such as Goya and Old El Paso, as well as numerous low-priced private label options, for limited space in consumers’ baskets. However Siete faced a similar situation when initially launching its flagship tortilla line, Garza noted, and its positioning as an authentic, better-for-you offering allowed for a higher price point, while also bringing new shoppers to the set.
According to SPINS data, Siete saw 45% dollar growth for the year ending Oct 31, 2022, while Old El Paso, Ole and Mission only saw 4% growth rate, the brand reported. While bigger players have seen slower growth rates, among emerging brands the bean set has proved to be fertile ground for new product launches. A Dozen Cousins and Fillo’s both have launched their own South and Central American- inspired bean products, while Somos has also introduced Mexican-American options. Brands like Maya Kaimal, Tasty Bite and Saffron Road also are trying to appeal to shoppers with globally influenced, legume-based side dishes and meals.
Many of these brands are also seeking to target conventional shoppers, but at $3.29 to $3.99 for a 10 oz pouch, Garza said Siete’s beans are more affordable (at $2.49), while the larger size is easier for families and the cans allow for more facings per shelf than pouches.
“We like creating products that are familiar enough to the end consumer, while being differentiated enough for them to be pulled off the shelf. Bringing better ingredients in the can format is important to us, as customers are still shopping for refried beans in cans… When we bring products to life we’re often pulling from our heritage as a family and we appreciated the familiarity and nostalgia that came with cans.”
