Thanks to their freshness halo, convenience and value proposition, store brand refrigerated entrées and side dishes can look forward to a bright future.

It's hard to beat the quick-cooking convenience of refrigerated pasta. Topped with ready-made pasta sauce and accompanied by bagged salad and fresh bread, it makes for a satisfying entrée at the end of a busy day. Likewise, refrigerated mashed potatoes provide the homemade texture and flavor consumers crave in a side dish companion to store-bought rotisserie chicken — without all that time-consuming peeling, boiling and mashing.

In many consumers' minds, these and other refrigerated entrées and side dishes also are perceived as "fresher" than their freezercase counterparts. And that perception could be related, at least in part, to the products' placement, which typically is within the deli or meat case.

► Do consider comfort food favorites, as well as bolder flavors and ethnic-inspired fare, when it comes to new product development.

"There's a freshness cue within the deli or the meat department," notes Mark Brown, president of Orval Kent, a Wheeling, Ill.-based supplier of refrigerated side dishes, salads and other foods. "Although many of the entrées in the frozen section are ready to microwave, consumers see the combination of convenience, the freshness cue and the overall eating experience, and I think that's why you're seeing an uptick in refrigerated meals and entrées here in the states."

That said, the United States still lags well behind Europe in product development here.

Although the potential for further expansion is significant, supply chain limitations likely will prevent U.S. retailers from catching up with their European counterparts anytime soon, suggests Levon Kurkjian, vice president of marketing for Kettle Cuisine, a Chelsea, Mass., refrigerated soup specialist.

"In Europe, these meals are made fresh multiple times a day and delivered to stores within hours," he explains, "often with two to five days of shelf life. Their supply chain can handle this. Ours, for the most part, still can't."

Price point also has been an obstacle in the past, contends Ryan Sparrow, managing director of Univeg Hot Cuisine America, Swedesboro, N.J., which specializes in fresh-prepared meals.

"They have been more expensive than frozen items in the past," he says. "I think price point is very critical to the American consumer. They are still willing to spend money on a great value or a higher dollar value item, but it better really exceed their expectations to [ensure] a repeat purchase."

Be on-trend — and a value

Retailers hoping to step up product development in the refrigerated entrée and side dish space will want to pay close attention to a number of trends currently playing out. Perhaps the most significant among them is renewed consumer interest in comfort foods.

"The economic downturn had led to resurgence in demand for comfort foods," Kurkjian notes, "and this trend has definitely penetrated the meal segment as well. Consumers occasionally want to indulge in flavors from their childhood or flavors with a little higher fat content than they normally allow themselves."

John McCarthy, sides & entrées category manager for Reser's Fine Foods, a Beaverton, Ore.-based supplier of refrigerated side dishes, entrées and more, agrees, explaining that consumers are looking for entrées they grew up loving and still enjoy. But he also says the definition of comfort food is broadening to include regional favorites and popular ethnic items such as enchiladas.

Price is important, too, McCarthy adds, but the value equation — which considers both quality and price — is even more critical.

"People want products with higher-quality ingredients, special flavors, more ounces, added benefits, etc., while paying the same price," he explains. "An example is adding bacon or using Tillamook branded cheddar cheese in a mac and cheese product, but keeping the price the same."

On the flavor side, McCarthy points to a rise in the use of savory and bold flavors such as bacon, garlic and Buffalo, particularly in nontraditional refrigerated food items. He notes that three of the top 10 bold flavors right now — chili, jalapeno and chipotle — also are spicy.

"People are not only more accepting of spicy foods," he says, "they are actually looking for them."

For his part, Brown sees an untapped side dish opportunity in Hispanic and Asian flavors and spins. He also believes celebrity and restaurant cobranding could bring a bit more "meaningfulness" to the category and add credibility to spur trial.

Kurkjian, too, sees opportunity in ethnic-inspired fare — as well as regional American items.

"Southwest Asian and Hispanic flavors continue to dominate, but Indian, North African and Caribbean cuisines are gaining in popularity," he says. "The trick here, though, is that the majority of consumers want 'Americanized' versions of these meals as opposed to truly authentic recipes."

When it comes to regional American fare, Sparrow notes that retailers and suppliers really need to understand what works where.

"A spaghetti and meatball that works in the mid-Atlantic states is completely different from what works up in North Jersey or New York City,' he maintains, "and it's completely different from what's up in the Northeast."

Many consumers also are looking for better-for-you refrigerated entrées and side dishes, Sparrow notes. Top of mind are lower-calorie and gluten-free items, as well as products with cleaner ingredient statements and less sodium.

Rethink the package

The packaging, too, plays a critical role in attracting consumers to the sale. McCarthy recommends that retailers invest in packaging that is dual-ovenable, which gives the consumer added convenience and flexibility.

Portable-type or easy-to-hold packaging also is a plus, he adds, for people on the go. And innovations that allow packaging reductions or use biodegradable or recyclable materials help appease the growing number of consumers who want more sustainable packaging.

Still, one of the easiest ways to attract consumer interest is by showing them the food — literally — through the inclusion of a clear window on the packaging.

"Consumers want to be able to see what the actual food looks like before purchasing it, not just a photograph," Kurkjian says. "This is unique to refrigerated foods."

Although the 20-ounce and 24-ounce sizes remain the drivers of the side dish category, Brown sees expansion routes through even larger family sizes, as well as smaller single-serve packages.

Look What's New

Signature Cafe Shepard's Pie from Canada Safeway Ltd., Alberta, Canada, is said to be a traditional beef pie with peas, carrots, corn and onions topped with parmesan mashed potatoes. Fully cooked, the multi-serving microwavable entrée goes from refrigerator to table in minutes. It retails in a 400g paperboard-covered PET tray.

Said to contain no preservatives or artificial ingredients, the Artisan Fresh Grilled Chicken & Four-Cheese Ravioli from Sam's club, Bentoville, Ark., consists of fresh semolina pasta filled with grilled white meat chicken; real mozzarella, Swiss, ricotta and parmesan cheeses; and a hint of garlic. The multi-serving product is ready in five minutes and retails in a 32-oz. pouch.

Wegmans Food You Feel Good About Garlic and Chive Mashed Potatoes are said to be free from gluten, artificial colors, flavors and preservatives. This microwavable multi-serving product from Rochester. N.Y.-based Wegmans Food Markets retails in a 24-oz. plastic tray encased in a paperboard sleeve.

Source: Mintel's Global New Products Database.

Sitting pretty

Although retailers differ in regard to their placement of refrigerated entrées and side dishes, some locations work better than others in attracting consumer attention. Sparrow believes that merchandising such items within the deli — specifically, close to the rotisserie chicken for retailers that have it — makes the most sense. By doing so, the retailer subtly suggests refrigerated potatoes and other side dishes as rotisserie chicken accompaniments, while providing entrée alternatives to that chicken at the same time.

Brown notes that many retailers also have had success within the deli with meal deals and combos that rely on store brand refrigerated entrées and side dishes. Such offerings meet time-pressed consumers' need for speed and convenience.

Whether merchandised in the deli, in the meat case or in multiple locations, refrigerated entrées and side dishes also stand to benefit from dividers, signage and/or color-coding systems that help the consumer shop by section, McCarthy stresses.

He recommends having at least one national brand so consumers are able to comparison shop and understand the store brand's value proposition. But he cautions against promoting such items at the same time.

"Branded products drive traffic to the sections with their consumer advertising programs," McCarthy adds, "as well as increase product variety, which is important to customers."

► Don't hide a great-looking side dish or entrée from view — add a clear window to the products' packaging.

Sampling, too, is an important tactic in this segment, Kurkjian says, as is co-promotion with products in other parts of the store.

"Traditional features in store flyers also work, as more consumers have gravitated back to trying to plan purchases more diligently," he says.

When it comes down to it, refrigerated offerings really give retailers and their store brands a chance to shine, Kurkjian adds.

"Fresh foods are the one place that shoppers really evaluate the quality of a retailer," he says.