A Twist On Tradition
The United States is a snack-loving nation. In fact, snacks now account for more than 25 percent of Americans' caloric intake each day — an average of about 580 calories — according to research presented by Richard D. Mattes, Ph.D., professor of foods and nutrition at Purdue University, during the 2011 Institute of Food Technologists Annual Meeting & Food Expo.
As for Canadians, they eat even more snacks than Americans do, a 2010 study by The NPD Group, Port Washington, N.Y., reveals. But Canadians are more conscious of the nutritional value of their food choices than Americans are, notes Joel Gregoire, food & beverage industry analyst for NPD.
No matter what their preferences, snack-craving North American consumers will find plenty of alternatives to the salty-snack and cheese-and-cracker standbys. In fact, many of today's most tasty and exciting options can be found in the grocery freezer case — from microwavable "sliders" for a hungry teen's afterschool snack to bacon-wrapped shrimp for an elegant holiday party.
Moreover, consumers increasingly are warming up to these convenient frozen nibbles. Forty-six percent of respondents to a 2009/2010 survey from the Packaged Facts division of Rockville, Md.-based MarketResarch.com indicated they had purchased frozen hot snacks. And the percentage of households that used 10 or more packages monthly increased from 8.5 percent in a 2007/2008 survey to 9.8 percent in the 2009/2010 survey.
More than mozzarella sticks
Although breaded mozzarella sticks, chicken nuggets and the like probably always will have a following, today's consumers want more appetizer variety from the freezer case. And savvy retailers will consider this reality in new product development.
"Versatility is the key trend for appetizers," stresses Frank Benso, vice president of Great American Appetizers, Nampa, Idaho. "Whether it be mainstream ethnic flavors like Italian, Mexican [and] Asian, or a fusion combination of ethnic flavors, you are seeing a more unique twist on core favorites to enhance the category," he adds, noting that his company has created some very interesting flavor spins on core appetizer items.
Keith Chen, president of Toronto-based Culinary Destinations Ltd., agrees that new spins on old favorites represent a big opportunity for store brands.
"It's almost a case of consumers saying, 'I want something new and exciting, and at the same time, I want something that's comfortable and that I'm used to,'" he says. "I think store brands could lead if they took a leap on that, to differentiate who they are."
The younger generation's ethnic and cultural diversity, as well as its high level of acceptance when it comes to store brands, really opens up opportunity here, adds Greg Evans, senior director of marketing, U.S. retail for McCain Foods, Lisle, Ill.
"I think it provides a lot of opportunity for those unique twists on concepts they've known for a long time," he says.
Today's unsettling economy also means consumers are gravitating to comfort foods — and frozen appetizers are no exception, Chen says. And if the appetizer fits in with the health and wellness trend as well, even better.
"I think health and wellness are definitely taking on a greater relevance — with more natural, preservative-free [products]," he notes. "You're seeing more gluten-free items also."
Products boasting premium-quality ingredients, too, are of high interest, as are appetizers that are unique and customized to the demographics of the store, adds Teri Valentine, president and CEO of The Perfect Bite, Glendale, Calif. She advises retailers to avoid knocking off the "national belly-fillers" with the decision based on price instead of quality or "clean" ingredients.
" Traditional with an upgrade' is a perfect opportunity to build on something familiar, yet have the store brand be the 'one up' in terms of quality and flavor," Valentine says.
Get 'em to nibble
Once retailers have the appropriate store brand frozen appetizer assortment in place for their stores, they need to employ the right marketing strategies to get those tidbits into shoppers' mouths. That marketing message, of course, should fit the products' positioning.
On the premium side, Valentine points to Safeway, which made changes within its Safeway Select appetizer assortment in 2011, as one retailer that is making the right marketing moves.
"The demo program and Safeway Select advertising are also very high end, which carries the customer through the story of premium entertaining," she says.
She also recommends that retailers communicate the "stories" behind their products via traditional media and other vehicles.
"When there is a story behind finding the product and developing it just for the customer, everyone wants in on it," she stresses. "A number of retailers do a great job with this, [but] unfortunately, some still don't see the value of making a cohesive story throughout the store."
Packaging, too, can help in the marketing arena. And Benso believes Kroger is a trend-setter with the packaging for its appetizers.
"They are amongst the leaders in packaging innovation, with resealable gusset poly packaging," he says. "Kroger is also offering unique flavor profiles in their own brands as a real point of difference instead of matching a like national brand."
Speaking of packaging, Evans sees no "middle ground" — the best opportunities can be found in small and large package sizes. The small sizes meet the need for individual or one-occasion consumption, while the large sizes not only promote economies of scale for the retailer, but also help shoppers consolidate shopping trips and make fewer choices around how they are spending their grocery dollars.
On the merchandising front, Chen suggests teaming different culinary "concepts" and creating some excitement around them.
"I hate to use the word 'ethnic' because ethnic is becoming mainstream," he says. "But take a range of products from similar 'families' and cross-merchandise them. For example, blend appetizers and entrees for Indian, Mexican, Asian [fare]. Put meal ideas together."
Benso adds that a couple of retailers include store brand appetizers in a promotional bundle labeled as a "meal deal." He stresses that retailers must "advertise for volume and merchandise for profit."
Frozen appetizer segment performance
Finally, show some enthusiasm about your own frozen appetizers, Chen suggests.
"I think it's an exciting time," he says. "You're looking at comfort foods; you're looking at nouvelle food; you're looking at traditions."
Do teach an old appetizer new tricks by adding a unique filling or flavor twist.
Don't neglect the mega trend of health and wellness; today's consumers want clean ingredient decks.
Do communicate to shoppers the "stories" behind own-brand frozen appetizers.
Don't concentrate on packaging's "middle ground" — success will be found in small and large package sizes.
Look what's new
Described as tender bites of seasoned beef wrapped in applewood-smoked bacon, premium Archer Farms Bacon-Wrapped Sirloin Bites from Minneapolis-based Target are said to be easy to prepare. They retail in a 6.2-oz. box containing approximately 10 sirloin bites.
Sprinkled with candied pecans and free from artificial colors, flavors and preservatives, Trader Joe's Sweet Potato Pie Bites are packaged on an ovenable tray. The appetizers, from Monrovia, Calif.-based Trader Joe's, retail in a 7-oz. box containing 12 pieces.
President's Choice Creamy Havarti Shrimp Puffs from Loblaw Companies, Brampton, Ontario, are said to combine rich cream cheese and creamy havarti with succulent wild coldwater shrimp in a crispy panko-style breading. The shrimp comes from a fishery certified to the Marine Stewardship Council's standard for a well-managed and sustainable fishery. The appetizers retail in a 220g box containing 12 pieces.