Frozen Foods Heat Up Sales
Fire-roasted Tomato, Mozzarella & Basil Girasol is one of the upscale specialties under the Simply Enjoy brand at Giant and Stop & Shop.
From seafood, pizza and snacks to steamable vegetables and Asian specialties, retailers are finding new ways to appeal to consumers tastes - and budgets.
Consumers are still tightening their belts as the nation continues to battle the recession. As consumers cut back on their food bills they still want time saving, healthy and affordable meal options. One solution is in the freezer case and retailers investing in their private labels stand to benefit.
Chicago-based Information Resources, Inc. (IRI) states in a recent report, Americanism Study, that “44% of shoppers seek out and purchase store brands in order to save money and 52% expect to do so in the coming year.”
Stores are capturing more of these purchases by increasing private label products throughout stores and especially in all categories of frozen food. These days, a consumer can find almost everything needed for a week’s worth of meals from breakfast, lunch, snacks, dinners, side dishes and even party fare without leaving the freezer aisle.
A look inside the freezer cases at Target, Minneapolis, MN; and Trader Joe’s, Monrovia, CA, reveals a variety of products that offer a frozen buffet for consumers.
Target’s two tiered line, Archer Farms and Market Pantry, offer shoppers both value and innovation. In an effort to keep pace with consumer requests, shoppers can now find more food options including frozen food in stores. As shoppers move toward the center frozen aisle they will see in-store signage promising low prices and “All you crave. Priced to save.”
Hungry families can shop for breakfast with frozen waffles and pancakes or more upscale Archer Farm breakfast sandwiches. The busy office worker looking to bring lunch from home can choose from traditional frozen entrees or a lean meal. Looking for the popular steam-in-the-bag vegetables at a lower than national brand price, you’ll find them. Shoppers wanting restaurant quality appetizers to enhance meals or for a party will find a huge international selection of Asian, Hispanic, and American Fare such as popular mini hamburgers. Consumers looking for healthier options can find organic pizzas and organic frozen vegetables.
Target is also pairing items together to help enhance sales. For example, frozen fruit is a popular smoothie ingredient. Shoppers can find both Market Pantry fruit and Archer Farm fruit sold along side Market Pantry frozen yogurt, 1.5 quart at $2.99, that is pictured with a blender and fruit for an instant recipe. Overall, Target shoppers can find private label frozen products well positioned next to more expensive branded items allowing shoppers to make easy comparison. But in some cases, there is no comparison to the Archer Farms brand exclusive products and recipes.
Consumers with a taste for international flavors, or who have special dietary needs, will find products from breakfast to late night bites at Trader Joes. The all-private-label-grocery chain stocks its cases with organic frozen vegetables, international snacks, value-priced frozen meat and seafood as well as harder to find food. Consumers looking to avoid gluten, a complex protein found in most grains, and therefore baked goods, can buy frozen gluten free Trader Joe’s waffles and pancakes at $2.99 or crustless bacon and feta cheese quiche at $2.99.
Shoppers looking for a more upscale easy breakfast can find frozen chocolate or plain croissants. The Reduced Guilt line offers low cost meals at 250 calories or less. One serving of the new fillet of sole is 190 calories and $2.99. If you’re not concerned about calories, the new smoked salmon and spinach filled crepe may be more appealing. Ten crepes are sold at $3.69. The stores are also encouraging shoppers to fill their baskets by selling 8-gallon insulated bags displayed in the freezer aisle. Shoppers can fill up on family restaurant style meal too like smoke house pork ribs at $6.49 and braised beef short ribs at $8.99.
Fishing for Health
Seafood is appearing in more meals. The National Marine Fisheries Service reports that Americans on average eat 16 pounds of seafood each year. As consumers learn more about the health benefit of seafood, they are seeking out new sources. However, fresh seafood is not available in all markets and can be costly. Private label frozen options offer both convenience and value.
Many retailers offer a private label seafood option, such as Wegmans. Rochester, NY, with its value packs of salmon, tilapia, yellow fin tuna, Chilean sea bass and several varieties of cooked and raw shrimp under the Food You Can Feel Good About slogan/sub-brand.
Yet for the consumers who want more than the plain protein, there’s Safeway, Pleasanton, CA, with its new Waterfront Bistro line to fill the need. The line has 10 varieties of full fillets, seven heat and serve, three plain (Alaskan cod, halibut steak and sockeye salmon) sold in stand-up 12-ounce bags. Also available are seven frozen shrimp options sold in two pound bags and a 24-oz. bag of frozen scallops. The line is complemented by two seafood cocktails and a tartar sauce. Seafood lovers looking for shellfish can find upscale offerings through Target’s Archer Farms with frozen lobster tails ($23.99) Alaskan king crab legs ($19.99) and wild caught snow crab ($14.99). And not to be outdone by Target’s shellfish, Trader Joes sells boxes of frozen steamer clams.
Pizza and Snacks
The Nielsen group reports that in this down economy private label growth is up 4.7% this year and “top dollar growth categories were frozen pizza and snacks by 38%. And it’s no wonder. Consumers are eating out less but still craving comfort foods like pizza and snacks. Once again, private label fills the need. In a PLMA study conducted in the first quarter of 2009, it was found that store brand pizzas were 23% cheaper than national brands.
Frozen pizza varieties are on the rise as is in-store signage. Wegman’s six bake & rise pizza are advertised at $3.99 and include novel flavors such as chicken parmesan and roasted vegetable. Ahold USA, Boston, MA, is tossing its new crust and new color segmented logo into the game at their Giant Food and Stop & Shop stores. New pizzas include individual pizzas: cheese, deluxe, and pepperoni priced at ten pizzas for $10. It also has new individual sized lean pizzas: four cheese, reduced fat pepperoni, garlic chicken, and BBQ chicken all priced at two for $5.00.
Consumers looking for more upscale slices can try Ahold’s Simply Enjoy line, still bargain priced at $5.49 for mushroom, tomato, onion; sliced mozzarella; spinach and goat cheese or Italian garden. Entrees under the same brand include Fire Roasted Tomato, Mozzarella & Basil Pesto Girasaol, a variation on ravioli. And just a little outside of the pizza neighborhood are Simply Enjoy flatbreads topped with ham, jalapenos and cheddar; three cheese and tomatoes, and basil pesto, 9-oz. packages at $2.99.
Market research firm Packaged Facts has predicted that Asian flavors and healthy options such as brown rice will continue to move into mainstream markets. Wegmans offers consumers two Asian-inspired options with the Travels of Asia line, complete meals at $6.49 to include spicy orange beef with brown rice, Shanghai stir fry and brown rice, and stir fry beef with udon noodles. Also available are Asian Classics boxes of tofu, pot stickers (vegetable and vegetable and chicken, wontons, udon noodles, and lo mein noodles priced from $3.69 - $3.99.
Can hamburgers be dainty? Both Target and Delhaize Group U.S., Salisbury, NC – the latter under the Taste of Inspirations brand – offer mini burgers that can be downed in one or two bites. Target’s Archer Farms versions are Bacon & Cheddar Cheese; Delhaize’s Caramelized Onion & Gorgonzola. As the recession continues, consumers will seek out more such private label options. Retailers who capture consumer tastes today with options, high quality, and value will reap the benefits for years to come.
