Satisfy Their Snack Attacks

Americans are nibbling and noshing more than ever before. This reality likely explains the increased consumption of frozen snacks and appetizers in recent years.

According to “Frozen Snacks — US,” an April 2014 report from Mintel, a global market research firm, sales of frozen appetizers, snack rolls and pretzels grew 15 percent from 2008 through 2013, reaching sales of $2 billion. And the segment is predicted to grow an additional 13 percent from 2013 through 2018, benefitting from a high household penetration rate.

“The frozen snack category is positioned for future growth as consumers continue to increase their number of snacking occasions per day, moving away from three square meals,” Mintel says. “The convenience and ease of preparing frozen snacks, coupled with perceptions that smaller, more frequent snacks are healthier than traditional meals, can only help increase consumption as consumers seek products to help them fill up both at home and on the go.”

Keep it healthful

However, while most retailers recognize the increase in consumer snacking, they still are “light” on the number of frozen snacks and appetizers they offer, says Al Greenwood, vice president of sales with Water Lilies Food Inc., New York. Retailers have a prime opportunity to grow their store brand selection here.

But if retailers want to get serious about catering to their snacking shoppers with their own-brand frozen snacks and appetizers, then they first need to understand what people truly desire from these products. Perhaps the most important concern to address is product healthfulness.

Mintel notes that future growth will depend on the development of products with improved nutrition profiles. Consumers are concerned about frozen snacks’ processed nature and their often high levels of fat, calories and sodium. Therefore, brands will need to offer products featuring minimal processing and natural ingredients, but not compromise on taste in the process.

Greenwood agrees, noting that consumers are looking for higher-quality products — organic and natural items, in particular. And the frozen department has fallen behind other departments in this regard.

“And this is especially important for the frozen department,” he states, which “has to overachieve on quality items and offerings to overcome negative preconceived consumer perceptions.”

Favor flavor

Also important is flavor. According to Mintel, brands need to improve their frozen snacks and appetizers selection by increasing the variety of flavor options.

Greenwood also sees a demand for more variety, which explains why many consumers are increasingly gravitating toward ethnic options. And as consumers watch more cooking shows, try new restaurants and visit cooking websites, this demand is going to only increase.

In particular, he is seeing increasing popularity of Asian frozen snacks and appetizers, including spring rolls and dumplings.

Denise LeBrun, executive vice president with The Fillo Factory Inc., Northvale, N.J., also sees increasing demand for a variety of ethnic frozen snacks and appetizers, pointing to Indian and vegetarian options as examples of products currently in vogue. To help meet this demand, her company offers organic vegetarian samosas, filled with a savory recipe of organic potatoes, onions, peas, corn and carrots and accented by a blend of Eastern spices.

Spicy products, too, are in demand, LeBrun adds.

“The buying public is increasingly more adventurous to try new flavor combinations,” she states. “Appetizers and snacks can be a bit more creative than the entrée category.”

And one way retailers could get a bit more creative is by partnering with an ingredient supplier to specify flavors and work with a manufacturer partner. Mel Mann, director of flavor innovation with Wixon, a St. Francis, Wis.-based flavor and ingredient supplier, notes that a good ingredient supplier can provide expertise in regard to how its seasonings, coatings or flavors will react during manufacturing and home preparation. Since many frozen snacks and appetizers are partially or fully fried by the manufacturer — and then reheated in the microwave or refried by the consumer — seasonings or flavors in coatings could be diminished as a result.

“Ingredient suppliers can recommend ways to modify seasonings or flavors in order to deliver the full flavor expected from the product,” he says. “In addition, they are best suited to provide procedures for handling seasonings or flavors in the manufacturing process to minimize flavor loss.”

Don’t dismiss the basics

Despite the increase in demand for unique, flavorful and ethnic options, a number of consumers still seek national-brand-equivalent versions of the basics. Wayne Garnes, vice president, new revenue initiatives with City Line Foods Manufacturing Co., the private label arm of Lancaster, Pa.-based Auntie Annie’s, notes that the greatest area of opportunity he sees for store brand frozen snacks and appetizers lies in staples. Such products offered by his company include soft pretzel sticks and nuggets, pretzel dogs, cheese and pepperoni pretzel pockets, and more.

“These are the products that a consumer will not draw a distinction between a name brand versus a store brand,” he explains.

But make sure these products are of good quality, Garnes warns.

“Retailers should avoid thinking that price alone is the driver for consumers,” he explains.

Package, place appropriately

Packaging, too, is critical. And when looking to package store brand frozen snacks and appetizers, retailers should consider clean, modern designs, LeBrun says. Ingredients also must be clearly listed.

“The demand is there for an easy ‘what’s in this and what isn’t in this’ statement,” she states.

On the merchandising front, a bit more creativity might go a long way, LeBrun says. For instance, retailers could encourage shoppers to purchase a frozen snack or appetizer by displaying new and creative ways to serve the item in advertising materials.

“They may use an appetizer as an ingredient to make an entrée,” she gives as an example.

And dedicating a special space to cuisine — including frozen snacks and appetizers — from a particular ethnic group could help spur sales. Greenwood says he believes in building an Asian section and generating critical mass to more effectively attract consumers.

“Of course, it also makes promotion — grouping in a flyer, for example — more effective, not to mention in-store demonstrations or signage,” he says.

Speaking of signage, Greenwood points to San Antonio-based H-E-B as one retailer that gets creative here to drive sales of its frozen snacks and appetizers. At its upscale Central Market banner, the retailer clearly marks the different sections of the frozen foods department and, to the outside of freezer doors, attaches signage that minimally impacts consumers’ ability to see the products inside.

“And they are not just communicating ‘deals,’” he says. “They are highlighting organic items/sections, ethnic sections, etc.”

Do keep your assortment interesting by offering unique flavors and exotic varieties.

Don’t limit offerings to differentiated products — some shoppers still want basic NBE items.

Do respond to consumers’ demand for better-for-you frozen snacks and appetizers.

Don’t rely on price alone to sell frozen snacks and appetizers — quality also counts.