Thaw Out Sales

We’ve all grabbed items from the freezer cases in the grocery store, but when we are looking for better-for-us foods, it may be one of the last aisles we visit. According to the recently released “Frozen Foods in the U.S.: Hot Meals, Sides, and Appetizers/Snacks” report published by the Packaged Facts division of Rockville, Md.-based MarketResearch.com, overall sales of frozen dinners, pizzas, side dishes and appetizers reached close to $22.3 billion in 2014, but that number is actually down from sales in 2009.

“In the last few years, sales of frozen foods have hit a wall as a result of a growing demand from consumers for fresh foods, perceived as being healthier than frozen,” Packaged Facts states.

On top of that, the report notes, the frozen food aisles are facing increased competition from other areas of the store such as the prepared foods section that offer a fresher take on convenience.

Some more bad news for retailers trying to sell store brand frozen meals is that, for the most part, shoppers aren’t choosing the store brand. Category sales for 2013 show private label getting only 2.9 percent of the pie, with branded products capturing the rest.

So how could retailers break the proverbial wall down for their store brand frozen dinners? By paying more attention to consumer trends and offering the benefits that shoppers are wanting from the frozen foods section.

Stress fresh

One trend retailers can’t afford to ignore is the desire for frozen meals and entrées with better-for-you ingredients.

“Consumers want healthy choices, with cleaner ingredients and less processing,” says Bryan Barton, retail product sales specialist for Boise, Idaho-based Simplot Food Group, which manufactures a range of frozen food products.

While it is true that many frozen foods have traditionally been heavily processed, the good news for retailers is that store brand frozen meals with cleaner labels could successfully work to lessen concerns about the health quotient of frozen meals. Messaging that could particularly resonate with shoppers interested in more healthful frozen foods is “natural” and “organic,” according to Packaged Facts.

“Consumer concerns about preservatives and other ingredients are alleviated by the notion that if the products are natural or organic, they must be fresher or, at least, healthier,” the report states.

The market research firm also notes that the recent acquisition of Berkeley, Calif.-based Annie’s Homegrown Inc. by Minneapolis-based General Mills is a sign of the attention frozen food manufacturers need to be paying to consumers’ desire for more healthful ingredients, even in the frozen food aisles.

Go ethnic

With one of the biggest consumer food trends, particularly among millennials, being the desire for more ethnic and global cuisine, retailers have the opportunity to make enjoying those flavors easy with the right store brand frozen meal and entrée offerings.

While Packaged Facts notes that Hispanic products “proliferate” in the frozen meal and entrée section, many other new ethnic frozen meals and entrées are Asian-inspired. The U.S. Asian food segment overall (which includes Indian offerings), reached $3.4 billion in 2013, representing 27 percent growth since 2008, according to “Ethnic Foods — US,” a January 2014 report from global market research firm Mintel.

Get your store brand noticed

When it comes to frozen meals and entrées, retailers have to work harder at getting their store brand products noticed than they might with other categories. After all, it’s usually the last section of the store that shoppers visit, and everything is behind glass doors. Also, according to Barton, many shoppers will not actively peruse the different products on sale.

“The frozen product consumer is usually ‘on a mission’; they will not shop the category — so they need to be clearly guided toward new products for them to try and fall in love with,” he says.

That means retailers need to educate consumers about their store brand frozen offerings.

“The right product location and an effective in-store demand-generation program with signage and demos to make the shopping experience intuitive [are] critical,” Barton says.

So is product appearance. He recommends having “good product photography to attract the consumer eye, and good packaging selectability,” adding that claims about the amount of protein per serving and the ease of preparation are effective ones to have on the box or bag.

Do consider using fewer ingredients and preservatives in frozen meal and entrée formulation.

Don’t discount the importance of great product photography and easy-to-read on-pack claims.

Do use signage and demos to attract attention in the crowded frozen aisles.

Don’t overlook the popular ethnic foods space.