Heat up frozen meal sales
Since 2007, American consumers have steadily cut back on their purchases of frozen meals and entrées, and this decline within the market is predicted to continue through 2017, states global market researcher Mintel in its May 2013 report titled “Frozen Meals — US.” Part of this decline is due to the improvement of the economy and consumers’ willingness to go out to eat at restaurants rather than prepare a meal at home. However, negative perceptions regarding the nutritional content of frozen meals and entrées are also playing a large role in the decline of this market.
For retailers looking to boost sales of store brand frozen meals and entrées, understanding and combating these negative perceptions could make the difference between a consumer who buys and a consumer who walks away.
Provide more healthful options
According to Mintel, consumers perceive frozen meals to be highly processed, high in fat and high in sodium. To combat this perception, retailers would do well to listen to consumer concerns and revamp current store brand products or introduce new ones to address these concerns.
In an Internet survey Mintel conducted in February of 2013, six out of 10 respondents said reduced sodium and fat were important qualities in a frozen meal. Additionally, seven out of 10 respondents said they felt it was important for a frozen meal to provide a full serving of vegetables. However, few brands market their products as containing a full serving of vegetables, Mintel reports.
Do offer and market to consumers frozen meals that contain a full serving of vegetables.
Additionally, some consumers believe frozen meals and entrées lack the vitamins and antioxidants found in fresh foods. Consumers may need to be reminded that fruit and vegetables can now be and often are harvested in season and then flash-frozen, providing the same nutrition as can be found in the produce section, states Anthony Serino, sales manager for Schaumburg, Ill.-based Provita Cuisine.
And when it comes to nutrition, many consumers are beginning to equate organic and all-natural products with “healthful.” For retailers looking to increase store brand frozen meals and entrée penetration, this may be a trend worth noting. Consumers are really beginning to care about the quality of their food, and they’re interested in purchasing sustainably sourced all-natural or organic meals, states Marc Brennet, vice president of retail brands, Cuisine Solutions, Sterling, Va.
Denis Renuart, president and CEO of Miami-based Neptune’s Gold Inc., believes so strongly in the all-natural and organic market for frozen entrées that his company is beginning to focus all of its efforts on this market whenever possible. His company wants to create a healthful middle ground for consumers so that they can have a high-quality product at a reasonable cost.
However, Renuart warns retailers to be careful with how they use the term “all-natural.”
“For years, I’ve been a proponent of ‘all-natural’ because I grew up eating that way, but now the term has become so overused that people seem to have become almost numb to that phrase,” he says. “I think that now you almost have to get to the organic level to attract people.”
Here, private brands could have a leg up on the national brand competition and a real opportunity to create new and loyal customers. Currently, prices for organic items are typically much higher than for conventional items, so a shopper would likely be very interested in saving money and trying a store brand version, Serino states.
Don't ignore consumers' desire for organic and all-natural frozen meals.
Of course, as consumers shop the frozen aisle looking for healthful items, the messaging on product packaging can impact their purchase decisions. In a February 2014 Harris Poll, phrases such as “high in,” “a good source of,” “low in,” and “free from” were found to be the most helpful and to resonate the most with consumers, states Fred Martino, vice president of sales for Aurora, Ill.-based On-Cor Frozen Foods LLC. If retailers offer store brand meals and entrées that lend themselves to the use of these terms or revamp current offerings to accurately include these claims, they could possibly see an increase in sales.
When the packaging conveys the benefits of the product on the label, it helps to make the consumer feel more comfortable about purchasing the brand, states Mike Keeland, general manager for Santa Fe Springs, Calif.-based Day-Lee Foods. Additionally, he recommends that retailers create a brand name for their frozen entrée products instead of simply calling them by the store’s name.
“[Using a custom-made brand name] might give the consumers the feeling that the store has worked with someone to create a special good quality brand just for them,” Keeland says.
And if retailers offer organic or all-natural options, the packaging should match that positioning.
“Packaging in the frozen meals and entrées [category] is still very pedestrian,” Serino says. “I am still waiting to see the first brown non-bleached container look. I would like to see more earthy and natural colors.”
Taste matters
Of course, no matter how healthful a frozen entrée may be, if it tastes terrible, the consumer won’t purchase it a second time. And increasingly, taste appeal refers to variety, with more ethnic options, as well as new twists on old standbys.
For Cuisine Solutions, increased consumer interest in frozen ethnic meals has motivated the company to make the creation of ethnic meals a priority. Its chefs are continuously exploring new dishes from around the world, Brennet says. For example, the company recently sent some of its research and development chefs to Peru to learn more about the regional dishes, flavors and cooking techniques that are currently growing in popularity in the United States.
Do consider offering consumers a variety of ethnic meals, as well as new twists on old favorites.
Besides ethnic meals, consumers are continuing to look for their traditional favorite “comfort foods,” Martino states. However, these favorites might require some freshening up. For example, macaroni and cheese could turn into whole grain macaroni and cheese with pancetta. He also mentions that retailers that can stay on top of consumer trends — for example, using quinoa, kale and other trendy ingredients in their store brand frozen meals and entrées — will likely garner much more consumer attention and trial. Even offering products that are vegetarian or vegan could make a huge difference to consumers, especially if the national brand doesn’t offer that type of product.
And retailers shouldn’t be afraid to offer a store brand product using high-quality ingredients that make a difference in the taste, Renuart says. He gives the example of a lobster ravioli product his company is currently working on that uses panko bread crumbs instead of a chemical binder, as well as a vodka sauce that uses a highly refined good-quality U.S. vodka instead of a cheap, bitter one.