Lots of potential

Despite making modest sales gains in recent years, frozen snacks and appetizers hold great potential for future growth — if manufacturers and retailers correctly and quickly meet evolving consumer demands for more innovative, healthful products.

Total frozen snack sales climbed a modest 6 percent since 2009 and should gain more than $5 billion in sales by 2019, states global market researcher Mintel in its April “Frozen Snacks – US” report. Snacking continues increasing in the United States, and more consumers, particularly younger ones, are eating snacks/appetizers as meal components and replacements.

But store brand frozen appetizers/snack rolls grew a respectable 14.0 percent to reach $136.3 million during the 52 weeks ending Aug. 9, according to data from Chicago-based market research firm Information Resources Inc. (IRI). Total category sales hit $1,917.3 million, up only 1.4 percent vs. year-ago sales.

Retailers offering store brand frozen snacks could consider positioning these items as mealtime options, including as an entrée, appetizer or side dish, Mintel says. Since the line between meals and snacking has blurred almost into obscurity, consumers could choose frozen snacks/ appetizers as a quick, easy way to experiment with new flavors and cuisines.

Keep it clean

Key trends driving the frozen snack/appetizer category include innovative flavor options, innovative packaging and enhanced ingredients, says Sally Lyons Wyatt, executive vice president and practice leader, IRI. She cites Totino’s Bold Cheddar Blasted Crust Pepperoni Rolls, a 2014 IRI New Product Pacesetter winner with flavors baked into the crust, as one example of category innovation.

“Innovation using interesting ingredients is being well-received in both branded and private label [frozen snacks/appetizers],” says Teri Valentine, CEO of Glendale, Calif.-based The Perfect Bite Co., producer of fresh/frozen foods, including appetizers. “[We’re also] seeing a cleaner, nopreservative direction at all store levels.”

Parents expect better ingredients and quick- and easy-to-prepare products for their children to snack on after school, Valentine adds. And consumers who look to frozen appetizers for entertaining purposes expect a product that will not only bake up beautifully and taste delicious, but will also be something they are proud to serve to their guests. This leaves little room for artificial flavors and colors or preservatives.

Scott Bennett, president and CEO of Golden Platter Foods, Newark, N.J., a producer of frozen gluten-free chicken nuggets, patties and tenders, agrees.

“The market today is quickly moving towards cleaner, healthier labels with ingredients consumers can easily identify or find in their kitchen,” he says. “The days of the long ingredient statement tucked away on the package in fine print [are] over. Healthier alternatives are pushing those products aside.”

Frozen natural and/or organic snacks/appetizers could become store brand winners since they are often perceived as fresher or more healthful by consumers.

Lancaster, Pa.-based Auntie Anne’s Inc., a frozen soft pretzel product producer, and Focus Brands Inc. launched protein product extensions that can be eaten during various day-parts. Products made from pretzel dough versus other snacks or light meal offerings could be viewed as more nutritious options to incorporate into consumers’ daily dietary needs, says Doug Harris, vice president of manufacturing and logistics for Auntie Anne’s. Soft pretzel products have surged in popularity in recent years.

“We have seen strong demand for [further valueadded] items ranging from pretzel dogs and mini pretzel dogs to pretzel sandwiches,” Harris says.

Package for attention

Packaging also plays a critical role in the category’s growth. Some of the more common packaging changes within the frozen snacks category include front-of-pack nutrition claims, larger sizes, and bilingual communication.

“Many category items now call out nutrition benefits such as containing protein, calcium, fiber and ‘made with real cheese’ on the front of package,” Wyatt says.

Larger package sizes have grown more popular this past year, she continues. The pricevalue proposition plays a major role in snacking, and larger sizes address this need.

But at-home frozen storage space is an issue for some consumers, so larger bag and smaller box options provide a nice mix of alternatives for consumers, Wyatt notes.

The right on-pack messaging, too, could lure shoppers to store brand products. Retailers could convey the benefits of their items within the frozen snack/appetizer section of their store.

“Use the package to call out ingredients and/or nutritional benefits,” Wyatt says.

And when it comes to packaging design, many store brands could do a better job, Bennett relays.

“Store brands typically extend across multiple product categories, yet often have very formulaic approaches to their packaging design,” he says. “This is one reason for a very dull, generic look to [some] products.”

Retailers should not take a “one-size-fits all” approach with store brand products. But maintaining brand identity across the full range of own-brand offerings still is important, Bennett says.

“It is also important to develop packaging and package design that effectively positions and communicates the appropriate messaging for each category,” he adds. “Cereal boxes are very different than hamburger buns and need a completely different design approach. Store brands need to step out of the box and find ways to inject their packaging with something that will help them stand out and get noticed.”

Continue to innovate

Frozen snacks and appetizers continue to resonate with consumers.

“Retailers are doing a good job with their frozen snacks/appetizers assortment, aligning to consumer needs and demand moments,” Wyatt testifies.

But retailers must continue to monitor trends and talk with consumers, Wyatt says. By reviewing store and market trends, they could continue to identify what is currently appealing to most shoppers, plus emerging trends.

“From there, they will gain additional ideas for the innovation and assortment that will hit the mark,” Wyatt predicts.

All too often, retailers make the mistake of trying to make store brand products exactly like the national brands instead of creating “destination items” that match regional flavor profiles, Valentine cautions.

“It’s critical to be innovative to capture the imagination of kids and parents,” Bennett agrees. “What is the purpose of offering something that everyone else is already doing?”

To develop relevant new store brand products, retailers also could contact research and development businesses, Bennett says.

“It is critical to find ways for brands to distinguish themselves as categories are crowded with choices,” he adds. “Consumers resonate with brands that have their interests and needs in mind. The challenge is to find new ways to get their attention.”

The next store brand frontier is to innovate and take risks that brands can’t or won’t take, Bennett continues.

“Store brands can’t do this on their own; they need to work with companies willing to help them think ‘out of the box’ and be innovative.”

But new products have to make economic sense.

Breakfast can be a price-sensitive category, Valentine cautions. So bite-sized snacks designed for breakfast, might be too expensive in consumers’ eyes.

But the category is ideal for occasion-based promotions throughout the year.

“Movie night, game night, parties and holidays could be more fun with [frozen snacks/appetizers],” Valentine says. “Don’t just wait for ‘Frozen Food Month.’ Set up promotions that include frozen snacks/appetizers, and there will be more traffic down those aisles.” Retailers offering store brand frozen snacks/appetizers could offer money-off coupons, product sales, in-store sampling and standalone displays to help drive sales, Valentine adds.