There's a bigger slice out there
By Kathie Canning
When it comes to convenient meals, it’s hard to beat a ready-to-bake retail pizza. The quality of today’s refrigerated and frozen pizza offerings comes close to — or in some cases is on par with — takeout and delivery options.
But U.S. sales of frozen pizza still trail those tied to takeout and delivery offerings, global market research firm Mintel notes in its September 2016 “Pizza — US” report. Sales in the overall U.S. retail pizza and pizza crust segment (frozen, refrigerated and shelf-stable) did increase modestly in 2015 and 2016, Mintel reports, buoyed by consumers’ growing interest in pizzas that skew premium.
Trinity of trends
Private brands already rule the refrigerated pizza segment, with data from Chicago-based IRI showing they have a 71.7 percent dollar share. But private brands represent only 11.9 percent of sales in the frozen pizza category, so retailers have much room to grow. A product development focus on current and emerging trends could be the shot in the arm they need.
Amy Lotker, owner and president of Better For You Foods in Delray Beach, Fla., points to a trinity of trends worthy of retailers’ attention: natural and organic, free-from and gourmet.
“Consumer trends are not mutually exclusive,” she stresses. “Frequently, the gluten-free consumer is also a natural and/or organic consumer — and most consumers desire innovative gourmet toppings, whether they’re cured meats, roasted vegetables or zesty Mediterranean flavors.”
Anthony Russo, president of Houston-headquartered Russo’s Retail LLC, suggests that these trends overlap with those tied to consumers’ desire for homemade-type pizza with better, fresh ingredients. Driving the trends is the reality that consumers are more conscious than ever before about the ingredients in their food.
“The new generations are developing a strong connection to the more natural or healthier food they can get in all categories, including pizza,” he says. “These generations are growing [up] now in an environment where they have access to all types of media, mobile technology and useful gadgets to select just what they are interested in. That’s why continued innovation is critical.”
And size need not be an obstacle to innovation. Scott Ashby, president of Lucia’s Pizza Co. in St. Louis, says his company has seen smaller chains, those with 75 to 200 outlets, start to offer innovative, trendy and healthier pizzas “to appeal to the growing number of health-conscious customers and the all-elusive millennial who is willing to try new products.”
Pizza innovation need not be limited to lunch and dinner occasions, either. Shahnawaz Hasan, president of American Kitchen Delights Inc. in Harvey, Ill., points to breakfast pizzas as an emerging trend.
Beyond thick and thin
On the pizza crust side, artisanal variations are trending, notes Tobias Goercke, executive vice president with Morris Plains, N.J.-based Freiberger USA Inc.
Shahnawaz agrees, adding specialty crusts such as naan and flatbreads and specialty shapes such as square to the list of crust trends. And ultra-thin is still in here, he says.
Another emerging trend — this one aligned with the gluten-free slant — is the use of ancient grains and sprouted grains, Lotker says. She says her company produces a line of frozen pizzas in its USDA certified organic and certified gluten-free facility with a gluten-free crust made from sprouted grains.
“For our private label customers, we offer a delicious new 100 percent vegan gluten-free thin pizza crust that serves as a natural starting point for creating pizzas in line with the emerging free-from trend,” she adds. “Made with all-natural non-GMO ingredients, this new pizza crust is gluten-, wheat-, egg-, milk-, nut-, soy- and corn-free.”
Also aligned with the slant toward healthful eating and gluten-free offerings are new vegetable-based pizza crusts. Joe Tedeschi, president of Venice Bakery in Torrance, Calif., says his company debuted a cauliflower crust at this year’s International Pizza Expo to “rave reviews.” Squash and broccoli also have potential in crust product development, he adds.
Gain trial
On-trend product development certainly can help retailers bolster sales of own-brand pizza and pizza crusts, but a little effort on the packaging and marketing fronts couldn’t hurt, either.
Russo believes it is critical to list all of the specialty ingredients on the front of the package in an attractive and easy-to-read format.
“What we do is a full-color box with a real pizza photo cover so the consumer will know immediately that our product is different,” he says, “and that it is a gourmet pizza, not just the typical pepperoni one. We add callouts like awards and highlights for our fresh and premium ingredients such as imported olive oil, Wisconsin cheese logo, hand-topped, etc.”
Consumers also want transparency when it comes to packaging, Lotker notes. A clean design, coupled with appealing and accurate images of the product or ingredients, has the best chance of attracting consumers’ attention.
“The emerging packaging trend is adherence to a stricter code of honest portrayal,” she adds, “with callout copy that touts product benefits without overstatement.”
With fresh ingredients a current emphasis, windowed boxes are on trend, too, Tedeschi notes.
To gain trial for store brand pizzas — for chef-driven and other higher-price-point offerings, in particular — retailers will want to invest in more tastings, Russo says.
And those tastings don’t necessarily have to take place in store. Food trucks could be an attention-getter, Goercke suggests. Store brand pizza should be treated like a brand, too, getting its fair share of promotions and ad campaigns, he adds.
Social media and blogs also present potential marketing tools for private brand pizza, Russo says.
“Also work with public relations agencies and keep planning special promotions and coupons online to generate traffic to stores,” he advises. “A new trend is geo-targeting using mobile platforms like cell phones and tablets.”
But perhaps the most important thing retailers can do to market pizzas — or private brands in any other category — is invest in employee education related to trends and product differentiation, Lotker suggests. For example, ancient grains are popping up as callouts on packaging in categories throughout the store, so employees should be prepared to answer shoppers’ questions pertaining to them.
“Progressive markets can also gain favor by including store signage that helps educate consumers as well,” she adds.
Canning is a freelance writer from Libertyville, Ill.