By most accounts, 2014 was a pretty good year in the barbecue business. Reports indicate the category was up by about eight percent overall. After a few lean-and-mean recessionary years, followed by a couple of flat-is-better-than-foundering years, we’ll gladly take it.

The growth is fueled, at least in part, by the tremendous interest in grilling, barbecuing, smoking and outdoor living among consumers, the media, and restaurant chefs. More good news: many in the industry expect this upswing to continue in 2015.

Gina Marie Lathrum.

Hearth & Home: How did 2014 turn out for DCS? Was it a good year?

Gina Marie Lathrum: “It was better than we expected. We continued to see substantial growth throughout all categories in 2014. Our year-over-year growth was impressive. The launch of our Outdoor Solutions outdoor kitchen storage products at Expo last year had a solid impact on DCS’s outdoor kitchen sales. Our dealers have been very excited about the line. We also did a lot of research and discovery and learned a lot in 2014. We worked with a number of top chefs and listened to their feedback. It was a seeding process.”

What do you expect for next year? How will the feedback you gathered impact 2015?

Lathrum: “This year our outdoor kitchen storage products will be out a full year ahead of the season. Last year the line wasn’t available until well into the season, but now buyers will see it when making their purchase decisions. We expect that will make a positive difference in 2015, and we’re looking for our third consecutive year of impressive sales growth for DCS. 

“As for feedback, we were happy to work with chefs like Charlie Palmer who understand the importance of cooking performance. They said our heritage of powerful ‘perfect heat’ is the most important feature on our grills. You don’t have to be a professional chef to grill well, you just need quality, professional equipment with consistent performance. This gives you the confidence to cook like a professional.”

Give us a read on the outdoor kitchen category. What are you seeing there?

Lathrum: “The outdoor lifestyle is coming back after the recession. It’s improving in baby steps. Consumers today want quality in their outdoor kitchens. They want good, well-performing grills, storage solutions and bar carts. They don’t want gadgets and gizmos.”

What other trends are you seeing?

Lathrum: “Smoking proteins is a powerful trend. Our grill series includes a dedicated smoker component. We say our consumer is culinary-curious. People buying in the premium segment love to cook and try new foods and techniques, and they want products that give them the confidence to try those techniques. Our smoking feature is an introduction to smoke cooking.”

Do you see charcoal grilling as a significant trend? Any thoughts about introducing a charcoal grill?

Lathrum: “A hybrid that combines gas and charcoal in the same grill is an interesting concept. We are researching it, but we don’t jump into a trend quickly without thoroughly vetting it out. We see just as many people who want separate charcoal and gas grills. It’s like having different equipment for different tasks, like an oven, microwave, cooktop and rice cooker in an indoor kitchen. Every appliance has a different function.”

Will you be introducing any new products in 2015?

Lathrum: “Yes, we will have a lot of new products in the new products pavilion this year. We will be introducing a 30-in. grill without a rotisserie. Our research shows the rotisserie is one of the least-used grill features. This grill will keep the burner performance intact, but without the rotisserie; it will have a more entry-level price point. This grill is an aspirational opportunity for new consumers to come into the DCS family. We believe once they are romanced by the cooking performance, they will be customers for life.

“In 2014 we introduced an aesthetic change to our indoor appliances. Because many consumers want an open concept between indoors and out, in 2015 we will redesign the outdoor appliances so the two lines complement each other. We’ll also introduce new accessory products.”

What about challenges? What are some of the biggest challenges the industry is facing today?

Lathrum: “The weather. We are at the mercy of Mother Nature and inclement weather has a huge affect on outdoor product sales. We have to forecast inventory and sales far in advance and the unpredictable weather makes it very difficult. Some retailers said they had the best December ever; others said it was the worst. It all depended on their weather. As more people grill year-round in places like Chicago or Toronto or in the Northeast, it makes it even more important to have a quality product that can withstand freezing temperatures.”

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Jason Baker with the Daniel Boone.

Hearth & Home: Tell us about 2014. How did the year end up for you?

Jason Baker: “We’re pretty happy with 2014. In past years we saw hyper growth of 50 and 60 percent annually. In 2014 we grew by quite a lot, but we were down from previous levels. Last year was a break-out year for pellet grills with lots of new and formidable players entering the market. But we had a great holiday season, which we believe was a direct reflection from declining oil prices. People had more money in their pockets to spend on gifts.”

Do you think that’s a sign of good things to come, or will increasing competition take a further bite out of sales this year?

Baker: “We’re pegging 2015 at about 35 to 40 percent growth, which is about what we did in 2014. The upside of competition is increased consumer awareness. It has actually helped us. We hired more employees in 2014, hired new sales reps and signed on a lot of new dealers, so we are expecting good things this year.”

Some pellet companies are now selling through mass merchants. Do you think that’s where the category is heading?

Baker: “We believe pellet grills need a brick-and-mortar store behind them with experienced dealers involved in the sales and education process. Some companies don’t believe it, but we do. And we think consumers do, too. Our dealer locator searches were up 60 percent over 2013. People want to go to a dealer to learn more, see the product and touch it.

“A pellet grill has a computer, a motor, a fan and thermosensors. If a consumer buys this in a Big Box store and doesn’t have the patience to figure it out, they will end up taking it back to the retailer. A dissatisfied customer doesn’t do anyone any good. But a satisfied customer will keep coming back for fuel and accessories.”

Sixty percent growth in dealer searches is quite amazing.

Baker: “People do their research online first and, in doing so, learn about the product and where to find it. The website drives consumers to the dealers. Our strongest regions are Nebraska, Iowa and Kansas, but the Pacific Northwest, California, Florida and New York are also growing for us. We can see where the clicks are coming from and we’re seeing 200 percent growth in the Dakotas, Hawaii and Alaska.”

Some have identified pellet cooking as one of the hottest trends in the past year, and this would seem to support the theory. True?

Baker: “We don’t like the word trend because it means it will ultimately fade away. We believe interest in wood pellet cooking is here to stay. People like the smoke flavor profile and are clamoring for it. A pellet grill simplifies the process of cooking over wood. It adds fuel automatically and keeps temperatures consistent. You can easily control the amount of smoke flavor from mild to intense.”

How about outdoor kitchens? Are you seeing a call for Green Mountain Grills in built-in applications?

Baker: “We don’t make a built-in model; we haven’t seen enough interest from our dealers yet. Realistically, when people are going for an outdoor kitchen, they are going for top-of-the-line equipment and are spending a minimum of $10,000 on their kitchen. We are not in that space. Our base model is $349 and all our grills are under $1,000. We see the outdoor kitchen market expanding, however, so we might someday consider it. For now, there are already some companies who do built-in pellet grills well.”

What are some of the other challenges you face?

Baker: “The most challenging thing for us is the Internet. Internet retailers are getting bigger and bigger and it’s tough for a manufacturer to turn it down. The biggest challenge is how do we keep up with the competition and stay away from Internet sales? We’re even getting a lot of pressure from some of our dealers telling us they would love to sell online.”

Do you think the Internet will overtake the specialty channel soon for pellet grill sales?

Baker: “I’m 36 years old and I find myself clicking a lot more often when buying things. Amazon is easy. But from our standpoint, we believe in our model and our dealers. One common theme among dealers who are doing well and growing is that they remember the ‘special sauce.’ They create a warm and welcoming environment for customers with knowledgeable and exceptional salespeople. These dealers get it and are doing it right. If dealers are just order takers, small business will be irrelevant and won’t survive.”


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Kim Lefko.

Hearth & Home: How was 2014? Was it up or down over 2013 and have we finally turned the corner from the recession?

Kim Lefko: “Weber is a privately-held company and we don’t share our financial results. However, as we look at the total grill market from 2014, we estimate eight percent growth in total sales. This is a great indicator that love for grilling isn’t slowing down. Overall, dollar sales are up but unit sales are flat.”

Are any products or price points doing particularly well?

Lefko: “The sales increases are due to significant growth in charcoal grill sales, and from gas grills priced over $1,500 in the specialty channel.”

We’ve been hearing about growing interest in charcoal for the past couple of years but haven’t really seen the sales numbers to back it up. What evidence are you seeing?

Lefko: “Overall, we see a real spike in interest in the charcoal category. According to our new 26th annual Weber GrillWatch Survey, charcoal grill ownership is at its highest level ever at 56 percent. For comparison, gas grill ownership is at 59 percent. Also, more than one-quarter of grill owners now own multiple grills, so people who already own a gas grill are adding a charcoal grill to their collection.”

Do you expect this trend to continue in 2015?

Lefko: “There is a very nice momentum coming out of the past three years for Weber. There is a real love for charcoal, and this category will continue to grow. Weber started in 1952 with the introduction of the first-ever covered charcoal grill, and it’s still one of our most popular grills today.”  

What other industry trends are you seeing?

Lefko: “E-commerce is really growing as more consumers get comfortable with buying grills online. Although consumers would prefer getting a grill preassembled, they like the convenience of buying online. While online vendors won’t replace brick-and-mortar retailers, trends like ‘brick and click’ or ‘showrooming,’ where consumers either order online and pick up in a store, or view the product in the store and order online, are not going away.”

How about accessories? What’s happening with that area of the business?

Lefko: “The grill accessory business is very strong. Over the next two to three years we expect to see 15 to 20 percent growth in accessory sales. The growth is happening in both mass merchants and in specialty channels.

“We’re seeing the biggest increases in the replacement parts and outdoor cookware segments. We’re tailoring cookware to model food and cooking trends, so people can make these foods on the grill. For instance, our pizza accessories and Elevations rack systems have been very popular.”

What are the key challenges facing the barbecue industry today?

Lefko: “Since grill dollar sales are up but unit sales are flat in this mature category, the challenge is how do we attract new users? We are introducing an addition to our line of Q1200 portable grills with color hoods to try to do exactly that. The Color Q grills come in six fun colors including fuchsia, orange, purple, green, blue and black, and are targeted to Millennials and women with the hope of attracting them as new grillers. These groups want simplicity, fewer bells and whistles, convenience, and a smaller-footprint grill.  

“With 83 million Millennials today, they are a big target. Though they consider themselves foodies, less than 15 percent of them grill because they think a grill is too expensive, too big a commitment, and something you only buy when you own a house. The Q has very few components and parts, is easy to light and use, is reasonably priced at $219 ($79 more for the optional folding, wheeled cart), and compact, but is big on performance and creates a good sear.”

Does that mean stainless steel is on the way out?

Lefko: “According to our surveys, interest in color finishes is up. Fifty percent of grill owners say they want their next grill to have color. The figure is 61 percent for those under age 35, and 54 percent for women (compared with 46 percent of men). Only 23 percent of people request stainless steel for their next grill finish. When we showed Millennials the product in color, 74 percent said they would buy.”

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Jim Ginocchi with the Centaur Hybrid grill.

Hearth & Home: What kind of year did you have in 2014?

Jim Ginocchi: “It was great! It was our fourth year of double-digit growth. We added two new distributors and will add another in 2015. We had phenomenal growth fueled by new products and expansion into new territories.”

To what do you attribute that success?

Ginocchi: “Several reasons. Our price point is resonating well. We offer value, features and benefits with lifetime warranties on the stainless steel and burners, and lots of bells and whistles, but our grills cost less. It’s the best quality at the best price. Also, last year we introduced our ‘Grill in a Box,’ a two-burner grill fully assembled on a cart base for $1,199. We’ve previously been more geared to built-ins for outdoor kitchens, but our dealers were asking for an affordable cart option to compete with the mass merchants, and this product delivered.

“We definitely see there is a market for cart-based grills for those with limited space or who might want a mobile grill. An advantage to our unit is that the cart is fully vented so you could later build an island base around the cart or unbolt the head and build it into an island. Finally, we’re finding a lot of new growth in the builder market. Initially, a lot of our dealers were retail-driven, but as the housing market rebounds, Coyote is gaining a foothold in the builder market.”

Can you tell us more about what you see happening in the outdoor kitchen market?

Ginocchi: “We see 2015 as being a pivotal year for outdoor kitchens. The building industry is coming back and builders are adding outdoor kitchens as a standard feature on higher-end homes and as an option on mid-priced and entry-level homes. We strive to provide an outdoor kitchen for every homeowner.

“With that in mind, we offer the C Series, or Contractor Series, a grill with no sear zone or rotisserie, which allows it to be entry-level priced for mid-priced homes and active adult communities. For food techies there is the S Series, which includes a 36- and 42-in. cooking surface, multiple burners, a sear zone, backlit knobs and a rotisserie.”

What are you doing to reach the builder market?

Ginocchi: “We will be going to trade shows that reach builders. We will be at the Kitchen and Bath Show and International Builders Show. We will also do HPBExpo and the Architectural Digest Show, the premiere show for architects, designers and other specifiers.”

You recently partnered with countertop manufacturer Cosentino on outdoor kitchens. Tell us about that.

Ginocchi: “Cosentino is the largest manufacturer of man-made countertops. Their Dekton material is the first outdoor-specific counter that is food safe and impervious to color changes. They have a number of design centers that will display our grills and appliances built into Brown Jordan outdoor kitchen cabinets with Dekton counters.

“It’s great to have partners to share the costs of displays, but mostly to present the complete picture of an outdoor kitchen. We only sell stainless-steel components, but when they are displayed together with the cabinets and counters, it shows how great an outdoor kitchen could be on someone’s patio. It’s aspirational.”

What other trends are you noticing in the barbecue marketplace?

Ginocchi: “Charcoal grilling is growing in popularity because of the flavor it brings to food. We introduced a dual-fuel hybrid grill two years ago that’s doing very well. It’s a 50-in. grill split into two hoods, one a dedicated charcoal grill and one a two-burner gas grill. It can be built-in or on a cart, and it offers the best of both worlds.

“Another trend is that people want to use their barbecue or outdoor kitchen for more than just grilling hamburgers and hot dogs. They want outdoor appliances that replicate indoor appliances and offer cooking versatility. So, for instance, we introduced a 24-in., 60,000 Btu power burner. It’s more powerful and has more intense heat than a side burner. It can boil a big pot of water for lobsters, and accommodate a wok or teppanyaki attachment.”

Sounds as if things are going very well overall. Are there any issues you’re concerned about?

Ginocchi: “Online competition is becoming a big deal in outdoor living. Coyote has a strict Internet policy with set minimum pricing to protect our dealers. We only allow Internet sales by dealers who have brick-and-mortar stores. Another issue is that, because barbecuing is becoming more of a year-round activity, it’s hard for dealers to keep a full display of product on the floor year-round when they have counter-seasonal products and limited floor space.”

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Rich Graham.

Hearth & Home: Please tell us how your barbecue sales fared last year.

Rich Graham: “It was a good year for us. We were pretty close to 2013 thanks to solid growth in the U.S., Europe and New Zealand. We’ve had year-over-year growth in Canada for the past 15 years, but that is a very mature market for us now.

“Interestingly, if you compared sales in the first few months of 2014 with the first few months of 2013, we would have been off significantly. In 2013 we had an early start to the season with good weather, which helped us. In 2014, winter seemed to last forever, but over the course of the year, it all evened out.”

Is the recession officially over? What are you expecting for 2015?

Graham: “Yes, I think we’re turning the corner. However, I think people are still interested in being fiscally responsible – which is not a bad thing. People are looking for quality. They want a solid investment and good value for their money. For 2015 we’re looking at continued growth in Canada, but see much more potential in the U.S. where there are far more people and retail stores.”

So, would you say interest in grills at value price points will continue to trend?

Graham: “Yes. Our bread and butter is grills priced at $400 and up. These are quality grills that perform well and are value-priced. Our top-of-the-line grill is between $1,899 and $1,999 and it offers more features and a much better value than comparable grills priced at $3,000. Consumers will continue to look for quality, durability and value.

“That being said, there are still a lot of people who buy at least one cheap grill before realizing it is not a wise investment. But the door is open for manufacturers making a quality product to catch these people when they’re ready to upgrade. Another sought-after selling feature is ‘Made in North America.’”

Is “Made in North America” a growing trend? Do you promote it and how?

Graham: “We estimate 80 percent of consumers would buy a product made in North America if all things were equal. We promote that our grills are made in North America through hangtags on grills and other point-of-sale materials. Our packaging also tells why we are proud to be Made in North America.”

What other trends are you seeing in the industry?

Graham: “The number of people who own multiple grills is growing year over year. Many of those second grills are charcoal grills or smokers. We believe part of the reason for the growth in charcoal grills is that people become evangelists and spread the gospel about products like our charcoal-fueled Broil King Keg. It has a very loyal following. It’s very convincing when someone reads positive product reviews or posts on the online forum about it. It perpetuates the positive charcoal vibes.”

What about outdoor kitchens? What are you seeing there?

Graham: “It’s not a space we participate in at this point. We are pretty focused on stand-alone grills. We have considered it, but we’re not ready to jump in yet.”

Do you see any outside forces that could impact the barbecue industry this year?

Graham: “Declining fuel costs will free up disposable income. This could be a challenge as well as an opportunity. With money freed up, people might be able to travel or dine out at restaurants more. Rather than a staycation, they may be able to take an actual vacation. But they might also have more money to upgrade their grill. It’s all conjecture at this point but it might have an impact. We’ll have to see.”

What can we expect new from Onward Manufacturing this year?

Graham: “We’ll continue to expand our line of commercial-quality grilling accessories for 2015. Our pizza-related accessories continue to be popular and the paella pan we introduced last year sold quite well. We have some really neat, new stuff coming that will help cooks try more things on the grill. Having an extensive accessory offering builds brand credibility and is a benefit to retailers because we can be a single-source supplier of quality barbecue products.

“On the grill side, we will just make subtle tweaks and improvements. For instance, the Broil King Keg will now have an ash clean-out drawer so you don’t have to shovel out the ashes. These small changes add value to our products.”

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