There's a reason, of course, for this spirited pace of innovation. U.S. homeowners, with so-called cocooning all the rage, are investing heavily in their patios and decks, with grills increasingly viewed as a full-fashion accessory. More than ever, grill makers must be attentive to the shifting color palettes employed in casual furniture. Thermos, for one, has taken style to unexpected lengths by offering the first fabric-front grill carts for next year. Competitors are expected to follow suit in short order. Just as important, a savvy new generation of grill buyers has cropped up. The appliances that were sold during the initial boom years for the category in the early 1980s are reaching the end of their useful lives. Shoppers are back looking for replacements.
"We're in a cycle now with people who spent $99 for a grill years ago coming in ready to spend $200 and $300 for models with features they can use. Their big concerns are flare-up and the size of the cooking grid," said Jimmy Alexander, grill buyer for Ace Hardware. "We're noticing that consumers are willing to upgrade," added Tom Welch, president of Sunbeam Leisure Products. "Second- and third-time purchasers are far more sophisticated about what they're shopping for. Most are stepping up to better grills." How pronounced is the step-up trend? Many stores are beginning to de-emphasize their long-held opening price points of $89 and $99. Some are content to open with $119 and $129 units. A few years ago, median price points were in the key $149 to $169 battleground. In 1989, the middle of the category shifted closer to $179 and $199. Thermos said that more than 22 percent of all grill sales were above $200 last season, up from 8 percent three years ago. Many buyers said they still plan their programs around key good-better-best price points, but for most, price is becoming less of an issue as they hunt for compelling features and looks.
Regardless of price, gas grill sales overall were uninspiring in 1989. The weather, as is usually the case with seasonal products, was to blame. "Weather was pretty lousy in April and May in many parts of the country," observed Peter Greb, vice-president of sales and marketing at Charmglow, adding that the spring rains in the Northeast, the biggest market in the U.S., led to flat sales. "Most manufacturers were quick to cut back on their production, so there isn't a lot of surplus inventory at the factory level," Greb said. "But some retailers who weren't quick enough to react are stuck with extra product." The early consensus is that gas grill unit sales were virtually flat in 1989, at the 3.85 million unit level reported the year before. Surprisingly, however, charcoal grill sales, which totaled 13.1 million units in 1988, registered strong gains for most producers. Number one Weber-Stephen said revenues were up between 5 and 10 percent through July. Number two Meco said its sales rose about 4 percent, its first gains in several years. At Sunbeam, which ranks third in charcoal, "revenues were up dramatically in charcoal," according to Welch, who suggested that the faltering economy spurred some consumers to delay big-ticket gas grill purchases, and settle for cheaper charcoal models.
The prognosis is almost better for 1990 sales. Most manufacturers said they expect gas grill unit sales to increase 5 to 10 percent next year. If so, that would come in spite of sizable price increases. Wholesale costs are rising an average of 5 percent, which should translate to higher price points at retail for many models. To hold the line and continue to hit key price levels, retail buyers are already stripping features from some models. Imports continue to be just a minor factor in full-size grill segments. Hibachi sales are falling steadily, supplanted by table-top charcoal and gas grill sales in price points below $30. Nobody expects a major cart-type gas grill from the Orient to arrive on these shores anytime soon. The closest is Grand Hall Enterprise's Pro-Chef line, which will be assembled in 1990 in Corona, Calif., from parts sourced in both Taiwan (burners and frames) and the U.S. (wood, wheels, igniters). Pro-Chef, in fact, will take a stab at the high end with a $459 model that features brass burners with lifetime warranties and a cast iron Flame Tamer that inhibits flare-up.
"Most gas grills are made of cast aluminum, which is actually more expensive in the Orient than in the U.S.," observes Jeff Volante, a regional sales manager for Midas-Lin, a Far Eastern importer that concentrates on charcoal kettles and mini-grills. "Gas grills don't require intensive labor. They're more assembly operations than anything. So the Orient can't really take advantage of its cheaper labor costs." What's new for next year? A good place to start is Thermos, which has dropped its sister Structo line for virtually all retail channels. The company has introduced new fashion colors, notably a taupe and sandalwood combination, and window graphics. Most significant, however, is the industry's first fabric front panel, a durable jacquard in contemporary designs advertised to hold up against the elements and to be easy to clean.
"The fabric is a feature that ties our grills more closely to outdoor patio furniture," says James Oster, product manager at Thermos. "It gives consumers the chance to create a real fashion ensemble. People are entertaining more outside, and they're increasingly concerned about presenting a nice image." Lava rocks, which were first installed in grills to remind consumers of charcoal, are due to disappear eventually. Companies are adding porcelain pans and grids and shutters and other systems that pre-empt the rocks while providing more even heat coverage. Anti-flareup has assumed top priority in research and development, with a mounting realization that lava rocks are the chief culprits.
