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The frozen dinner/entrée category, with sales of more than $8.6 billion in 2005, continues to be the largest within the frozen market, comprising roughly 31 percent of total retail sales. Within the category are frozen handheld entrees (non breakfast), multi-serve frozen dinners and single-serve items, the largest segment.
Frozen dinners have a big price advantage over take-out foods, their biggest competition, according to Packaged Facts. Fresh entrees are usually for immediate consumption, while frozen foods are purchased to eat at the consumer’s convenience on another day. Evidence suggests that frozen dinners/entrees sell best during cold weather, when consumers want a hot, hearty meal. Diet-oriented frozen varieties traditionally sell better at the beginning of the year, driven by consumers’ New Year’s resolutions to lose weight.
Dollar sales of frozen prepared meals rose 5 percent for the 52 weeks ended April 22, according to ACNielsen Strategic Planner. It’s notable that frozen dinners (they stopped calling them TV dinners in 1962), including three or more food items ala the Swanson model, fell 1.4 percent, but individual entrees and two-course items heated up the category.
Among one-item entrees, seafood soared 31.7 percent, Italian increased 10.4 percent, and Mexican rose 6.4 percent; Asian was down 0.1 percent. Numbers increased even more when two courses were included: seafood up 52 percent, Italian up 18.1 percent, Mexican up 11.9 percent and Asian up 23.8 percent.
Some 300 companies market frozen foods. Key players in traditional family style frozen entrees include: Nestle USA’s (Solon, Ohio) Stouffer’s brand; ConAgra’s (Omaha, Neb.) Banquet Home-style Bakes, Kid Cuisine, Crock-Pot Classics and Marie Callender’s; Luigino’s (Duluth, Minn.) Michelina’s and Budget Gourmet; On-Cor‘s (Northbrook, Ill.) two-pound Classic, Traditional and Dinner Partners; and Pinnacle Foods’ (Cherry Hills, N.J.) Hungry Man and Swanson. Incidentally, turkey is still the most popular Swanson TV dinner, except in Fort Worth-Dallas, where fried chicken is the favorite.
Nestle has extended the Stouffer’s brand in several directions with such spinoffs as Lean Cuisine One-Dish Favorites, Café Classics, Comfort Classics, Spa Cuisine, Dinnertime Select and Skillets.
|Sales ($ millions)||Market Share|
|Stouffer’s Lean Cuisine Cafe Classics||261||7.3|
|Weight Watchers Smart Ones||246||6.8|
|Marie Callender’s Complete Dinners||149||5.8|
|Stouffer’s Lean Cuisine Everyday Favorites||137||3.8|
|Stouffer’s Lean Cuisine Comfort Classics||104||2.9|
|Stouffer’s Lean Cuisine One Dish Favorites||103||2.9|
|Weight Watchers Smart Ones Bistro||90||2.5|
|Healthy Choice Familiar Favorites||86||2.4|
|Stouffer’s Lean Cuisine Spa Cuisine||81||2.2|
Source: Information Resources Inc. (U.S. supermarket sales for 53 weeks ended June 18)
Frozen fare allows for ethnic flair. Gourmet Dining, San Antonio, Texas, targets individual demographic groups (Spanish, Cuban, Puerto Rican and Mexican) within the Hispanic market. On-Cor engages Hispanic consumers with its Sonora-Style Enchilada.
With Thai foods’ recent popularity, it’s no surprise to find it in frozen boxes from Amy’s Kitchen, Schwan’s Asian Sensations, Birds Eye, Stouffer’s Lean Cuisine and even Heinz’s T.G.I.Friday’s. Ethnic Gourmet by Hain Celestial, Boulder, Colo., offers Vietnamese Thit Go Kho Tieu (chicken and vegetables) and Indian-styled Chicken Vindaloo.
Grace’s Kitchen, Seattle, expanded its gourmet frozen meals with Mustard-Crusted Ahi Tuna Nicoise. And, after two years of development, Unilever’s Bertolli launched Dinner for Two, a line of eight frozen, chef-inspired, restaurant-quality Italian dinners (in a bag) with easy, one-step skillet preparation. It’s the only frozen dinner to gain unprecedented recognition from the prestigious Federation of Italian Chefs of America.
If there’s a bigger demographic than any ethnic group, it’s Americans trying to eat healthy. Frozen dinners make it easy for consumers to watch portion size; few people eat more than one TV dinner at a time.
Healthier frozen entrees took center stage in 1985 when ConAgra Foods’ then-CEO Charles "Mike" Harper suffered a mild heart attack. Although he made a full recovery, he re-evaluated his eating habits. When his search for frozen foods that satisfied both his health and taste needs proved futile, he took it upon himself to bring to market the Healthy Choice brand.
Amy’s Kitchen, Petaluma, Calif., makes it simple to serve dinner to a vegetarian in the family. Birds Eye’s (Rochester, N.Y.) Voila entrees include anywhere from 2.5 to 6 servings of vegetables, along with varieties for reduced carb aficionados.
Kashi Co., La Jolla, Calif., recently forayed into the frozen food aisle with a line of frozen entrees. "Our All-Natural Entrees combine wholesome ingredients and a complete balance of fiber, protein and healthy fats to leave you feeling full and fulfilled," says Jeff Johnson, Kashi brand manager and nutritionist.
As if all the Stouffer’s spinoffs weren’t enough, Nestle is fortifying its healthier frozen fare with the recently announced deal to buy weight management firm Jenny Craig.
Similarly, other processors are teaming prepared meals with popular exercise and diet programs, including Dr. Sears Zone from Cedarlane Natural Foods Foods, Carson, Calif., and Heinz’s Weight Watchers Smart Ones. Last year, Kraft Foods Inc., Northfield, Ill., partnered with Dr. Arthur Agatston, creator of The South Beach Diet, for a line of products under that diet’s name. Frozen entrees include Mediterranean Style Chicken with Couscous, Garlic Herb Chicken with Green Beans Almondine, Savory Pork with Pecans & Green Beans, and Caprese Style Chicken with Broccoli & Cauliflower.
For seniors, ConAgra offers Golden Cuisine, formulated by product development specialists and registered dietitians specifically to meet the needs of seniors.
Several marketers, including Luigino’s Michelina’s and Amy’s Kitchen, are testing dedicated vending machines for frozen foods installed in office buildings. Kraft recently launched three frozen South Beach Diet breakfast omelets for vending.
Among one-item entrees, sales of Italian dishes increased more than 10 percent.
According to Datamonitor’s Product ScanOnline, “quick” and “microwaveable” were the descriptors used most often for frozen entrees in 2002-2005, followed by “upscale” and “natural.” The term “fresh” moved into fifth place, followed by “organic,” and “no trans-fat.” It’s notable that more than 100 items in the Stouffer’s line now carry a “No Preservatives” flag.
“A recent AFFI member survey found that manufacturers emphasize the following health and wellness innovations: portion control, trans fat reduction or elimination, reduced saturated fat, reduced sugar and sodium and the addition of whole grains and fiber in new products,“ says Leslie Sarasin, president and CEO of AFFI. “And ethnic cuisine continues to be a popular trend.”
But it’s not just about health. “In open-ended, small group discussions online, conducted by Harris Interactive, we found that participants consider the quality and taste of today’s frozen foods to be significantly improved compared with the products of several years ago,” adds Sarasin.
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