Say yes to private brand pizza
Good news for retailers: A large chunk of U.S. consumers think pretty highly of store brand pizzas. In fact, "Pizza at Retail – US," a July 2013 report from global market researcher Mintel, says more than 40 percent of respondents to a survey agree that store brand pizzas are just as good as those of the national brands.
"This indicates that a significant portion of pizza buyers sees little difference between the taste and quality of private label compared to national brands," the report states, "and that private label makers should play up the comparable quality and taste of their products."
Consumers between the ages of 18 and 34 are most likely to see no difference in quality between store brand and national brand pizzas, the report explains. Younger shoppers have yet to reach their earning potential and may be shopping on limited household budgets. Therefore, value products – such as store brand goods – likely will appeal to many of these people.
Look to healthful ingredients
Its well known that many consumers today are looking for ways to eat better. In response to this trend, retailers and private label manufacturers alike are focusing on creating more healthful options – such as products made from wheat dough – and pizzas for people with gluten sensitivity in the retail pizza space, says Greg Caloia, marketing coordinator with DeIorio Foods Inc., Utica, N.Y.
Kevin Kollock, executive vice president of sales for Frozen Specialties Inc., Perrysburg, Ohio, also sees increasing demand for pizzas that appeal to shoppers with a sensitivity to gluten, although he questions how big the opportunity is here.
"Demand for gluten-free pizza options continues to grow," he says, "although total market size for this demand is yet undetermined and still trails traditional wheat-based-crust pizzas by a large margin."
Low-calorie pizzas also are experiencing a rise in popularity – especially at a time when more pizzerias are posting nutritional info on their menus, says Sarah Odde, director of specialty marketing and strategic development with Sioux Falls, S.D.-based Orion Food Systems, which manufactures pizzas for retailers foodservice operations.
"Weve been testing [some] low-calorie pizzas at Sanford Healths Dakota Food Court and are seeing a sizeable lift on their overall pizza sales," she states. "Weve also developed proprietary pizza products meeting very stringent health guidelines for clients targeting low sodium, low calorie and low fat content. Consumers continue to want pizza while on a special diet."
Do
consider offering whole-wheat-crust pizzas for pizza lovers seeking better-for-you options.
Dont
"pancake" pizzas on top of each other in the freezer case.
Variety matters
Turning to flavor profiles, Kollock points to unique toppings – such as barbecue chicken and feta cheese – as trending.
On his end of business – which mostly involves the manufacture of prepared pizzas for convenience stores – Dana Evaro, marketing director with Milford, Iowa-based Land Mark Products, says varieties such as Philly cheesesteak; chicken, bacon and ranch; and Hawaiian-style are becoming more common. His company also is testing flatbread pizzas on the prepared side.
Flatbread pizzas also are in vogue on the frozen side, Kollock says. In addition to French bread pizzas, his company is introducing flatbread offerings for retailers store brand programs. Other offerings for which his company sees growth potential include single-serve and microwavable pizzas.
But even with all the unique toppings and crust styles out there, retailers need to make sure theyre still carrying classics such as cheese, pepperoni and supreme. Kollock notes that the "keep it simple" principle still applies to 80 percent of the volume in the frozen pizza space.
"The top-selling flavors have held their positions for years," he points out. "Retailers should take a close look at trends and at their own data to determine just how far outside the box they want to go with their private label line extensions. Dedicating additional shelf space to winners will always generate more profit and volume than over-SKU-ing the assortment."
Outside the freezer case, the biggest opportunity in the grocery, drug and club channels lies in turnkey programs that provide "total pizza solutions," Odde states.
"We recently implemented a program with a regional grocery distributor, including [a] take-and-bake, hot-case and made-to-order pizza program, coupled with eye-catching, engaging branding and marketing," she says. "Its set up in modules so stores can take advantage of one part of the pizza program – or all three – for a complete pizza solution in the deli."
Communicate goodness
On the packaging side, retailers will want to make sure that products communicate their unique attributes effectively. For example, Caloia notes that packaging for better-for-you pizza products should prominently feature healthful attributes in a "simple and, most importantly, legible" manner. And Odde says freshly made pizza should sell in packaging that communicates the products freshness.
Freshness also applies to a packages graphics, so imagery should be of high quality and up to date, Kollock offers.
Do
make sure packaging looks fresh and communicates the attributes of the product inside.
Dont
short the classic cheese, pepperoni and supreme store brand pizza assortment in terms of shelf space.
"In addition, retail-ready-packaging display cases should be utilized whenever possible," he adds.
Also helpful on the merchandising front is thoughtful product placement. Kollock states that in the freezer case, facing the products toward the shopper – versus "pancake stacking" – is the best way to get shoppers attention.
"And suppliers need to be working with retailers to make this a priority," he stresses.
Offering combo deals that pair a pizza with a beverage and a side option is another way retailers could sell more store brand pizzas – whether theyre frozen, take-and-bake or freshly prepared, Caloia states.
And because frozen pizzas boast a long shelf life, Kollock says retailers should consider offering multi-count promotions that allow consumers to stock up.
"Multiple-count sales create private label opportunities to fill the freezer before a competing product can," he explains.
|
| C-stores: Ponder prepared pizza "This indicates that a significant portion of pizza buyers sees little difference between the taste and quality of private label compared to national brands," the report states, "and that private label makers should play up the comparable quality and taste of their products." The real growth opportunity for c-stores in the pizza category, Evaro states, is in products that are prepared on-site. "You dont see the large brands – the Dominos, the Pizza Huts, the Papa Johns – you dont see them out of convenience stores," he explains. "So at a time when consumers are just beginning to build their trust and perception of fresh food out of a convenience store, theyre willing to give any brand a chance." To help c-stores out here, Land Mark offers its Piccadilly Circus Pizza program, which provides store operators with everything they need to run their own mini pizzeria on site. "We provide all the ingredients to the operator," Evaro says. "We show them how to make the pizza, how to market the program [and] provide all the operations back-office tools, prep, training – its like a little Pizza Hut Express." As long as the product being prepared is of pizzeria quality, consumers will want to try – and come back for more of – the pizza, Evaro states. |
| Look whats new |
| New from Trader Joes, Monrovia, Calif., is Trader Giottos Vegetarian Pizza. Said to be handmade and cooked in wood-burning ovens, the frozen microwavable pizza is made with organic wheat flour, tomatoes and mozzarella cheese. It retails in a 17-oz. carton. |
| Now available from Walmart, Bentonville, Ark., is Sams Choice Flatbread Loaded Baked Potato Pizza. The frozen flatbread comprises hardwood smoked bacon, cheddar cheese sauce, cheddar cheese, potato, onion and sour cream sauce on a flatbread. The product is prepared in an Italian marble oven and retails in a 12.6-oz. carton. |
| Source: Mintels Global New Products Database |