Private Label Gaining Ground In Prepared Food All Around
Retailers respond to changing tastes and a changing economy at the same time by offering consumers variety value in everything from canned pasta and soups to skillet dinners, potato mixes, frozen side dishes and take-out food from the deli. Sometimes they're called convenience foods, sometimes prepared foods. Whatever you call them, and whether they come canned or packaged, fresh or frozen, they're out there to save consumers time and trouble fixing meals. Maybe it has to do with the economy, but some of the staples of prepared food seem to be making a comeback in private label. Canned luncheon meats are up 15.2% to $31.6 million, according to Information Resources, Inc. (IRI), Chicago, IL. "Helper" dinner mixes are up 21.2% to $29.1 million. Doing Can Can
Even in a mature category, there is always room for innovation. Take canned pasta, for example. Beef macaroni and spaghetti rings with meatballs are as old as the hills, but in just the past year, branded line extensions have offered new opportunities for private label. But where to jump first? Wal-Mart, Bentonville, AR, has introduced meat tortellini under its Great Value brand, pricing it at 76 cents a can against 93 cents for Chef Boyardee, just like all its 15-ounce canned pasta items-line pricing is the rule for private label. Food Lion, Salisbury, NC, on the other hand, has opted for overstuffed ravioli at 89 cents, versus 99 cents for the brand. Another novelty in canned pasta is cartoon character tie-ins. Fleming Companies, Lewisville, TX, now features the Peanuts gang on its BestYet brand, although the new design hasn't reached all stores yet. Wakefern Foods, Elizabeth, NJ, has added its own mascot, Scrunchy the Bear, to ShopRite canned pasta. Value packs are also gaining. In premium baked beans, Food Lion has come out with its own Brown Sugar & Bacon variety in both 16 oz and 28 oz cans at 69 and 99 cents, versus 80 cents and $1.29 for Bush's. But Wegmans, Rochester, NY, has gone with 28 oz. Original and Homestyle at $1.19, versus $1.49 for the brand; while Acme Markets, Malvern, PA, has gone with Onion as well as Original and Homestyle at $1.39 versus $1.59. Loaded with Soup Canned soup has been around for a long time in private label, but while condensed soups still do most of the volume, with Wal-Mart and others offering 26-oz family sizes, it is ready-to-heat soups that are sparking the growth. Chunky soups, positioned against Campbell, have been around for quite a while; but new varieties like Chicken Corn Chowder have joined first-generation ones like Sirloin Burger at a number of chains. Homestyle soups and regional, quasi-ethnic specialty soups are the cutting edge today. Price spreads against leading brands can be pretty thin: at Food Lion, for example, private label homestyle Vegetable, Chicken Noodle, Clam Chowder are $1.59, versus $2.69 for Progresso. Acme does better: $1.69 versus $2.18 for Minestrone, Creamy Potato, Lentil, and Chicken with Broad Egg Noodles. But in specialty soups, usually Italian, retailers can have the field to themselves-as with Big Y, Springfield, MA, which offers Wedding, Hearty Penne and Cheese Tortellini under the World Classics La Cucina D'Italia brand from Topco Associates, Skokie, IL, as prices ranging from $1.79 to $1.99. Safeway Stores, Pleasanton, CA, may have the most to do with the jump in private label dry soup mixes with its Safeway Select Enligten line in self-serve cups rather than packets. Priced at 79 cents versus $1.19 for Nile, it includes Tomato Basil Pasta, Black Bean, Couscous Lentil, Tex Mex Rice & Beans, and Split Pea. Boxing Day Macaroni and cheese still dominates the dry packaged dinner segment, but the category itself is stagnant, according to IRI, with overall sales down despite attempts to jazz it up with line extensions like Deluxe shells and cheddar. Yet Wild Oats Markets, Boulder, CO, has found something really novel to do with boxed pasta and cheese dinner: a garlic basil Alfred Pasta Shells that boasts it's made with "real Vermont white cheddar." It's not any pricier than standard macaroni and cheese dinners you can find anywhere: just 79 cents. In skillet dinners, positioned against Hamburger Helper and its spin-offs for tuna and chicken, line extensions and a softer economy have evidently combined to boost private label sales. Skillet dinners for chicken at Safeway, for example, include Cheddar & Broccoli and Fettuccine Alfredo; while Food Lion offers Creamy Broccoli for tuna, Alfredo for chicken and a raft of items like Stroganoff for hamburger, all at $1.49. Butter & Herb mashed potato mix under Fleming's BestYet brand at Funar's Thriftway, Gibbstown, NJ; along Roasted Garlic, it retails at $1,69, versus $1.69 for Betty Crocker. Food Lion offers Hash Brown, Scalloped, Julienne and Au Gratin potato mixes at $1,29, versus $1.69 for the brand, plus a Sour Cream & Chives version against Hungry Jack at $1.39. Safeway markets not only mashed potato mixes at $1.79, but stuffed mashed potatoes in 1.5 oz cups at 99 cents, with varieties including Roasted Garlic, Buttermilk Ranch, Three Cheese Broccoli, Sour Cream & Chives and White Cheddar & Honey Cured Bacon. Frozen and Fresh Frozen and fresh prepared foods are the new kids on the block in private label. Some frozen items duplicate dry packaged counterparts, only are fully prepared, as with 32 oz scalloped potatoes at $6.19 and 20 oz orzo pilaf, both at Wegmans. Under the Meals Made Simple sub-brand, Kroger, Cincinnati, OH, has gone beyond the usual frozen beef patties to offer charbroiled Beef Cheeseburgers in 24 oz. eight-count resealable packs. The Master Choice line at A&P, Montvale, NJ, includes items like Piggies in a Blanket. Meal Solutions, a fancy name for take-out prepared food, has been taking the industry by storm, and Albertson's, Boise, ID, has taken it further than most. Its Quick Fixin' Ideas line includes items like stuffed shells, turkey breast, pot roast, deli wrap sandwiches, and even ethnic items like beef & chicken enchiladas and kung pao chicken.
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