Progressive Grocer - May 2009 - (Page 88)

Grocery Holding On The variety and quality of hand-held frozen entrees continue to grow as consumers grab ’em and go. By D. Gail Fleenor B urritos, egg rolls, flatbread sandwiches, pizza slices . . . frozen handheld entree options continue to grow, fueled primarily by on-the-go families. Sales for non-breakfast portable entrees in 2008 were $1.4 billion excluding WalMart (Information Resources, Inc.), but relatively flat from the year before. Sales of hand-held meals are expected to increase as consumers eat out less often and new items crowd freezer doors for space. broccoli, whole grain pockets, or sandwiches on panini bread. Mike Sullivan, category manager, dairy/frozen food for K-VA-T Food Stores, a 100-plus-store chain based in Abingdon, Va., believes the economy is helping drive the hand-held entree category due to less eating out and more meals prepared at home or the office. “Sales trends on hand-held entrees indicate that ‘better for you’ and natural items are doing very well, in spite of the economy,” he notes. “Improvements in taste, quality and variety have stimulated sales in the category,” Sullivan says. “In addi- Progressive Grocer asked grocers what’s hot in hand-held entrees and spoke with manufacturers about new items, marketing tips for retailers, and the economy’s effect on the category. Grab-and-Go Growth When frozen hand-held entrees were originally introduced, the portable meals were designed as a quick snack for kids, observes Dan Nilsson, VP for independent New England grocer Geissler’s Supermarkets, based in East Windsor, Conn. “The trend of the hand-held entree seems to be shifting more toward adults now because of their fast-paced lifestyle.” Nilsson notes another trend is more healthy items such as hot pockets with chicken and 88 • Progressive Grocer • May 2009 tion, sales of both flatbread and Stromboli-style hand-helds are very strong. Panini hand-helds, which were hot last year, have softened.” Dennis Curtin, spokesman for Sunbury, Pa.-based Weis Markets says his company has also noted the interest in flatbreads and will be adding more of these items from Kraft Pizza, Tony’s Pizza and Stouffer’s in the coming months. Weis operates over 150 stores, mostly in Pennsylvania. The economy may be one factor responsible for growth in frozen hand-helds, but Michael Norton, spokesman for Scarborough, Maine-based Hannaford Supermarkets, thinks it’s not the only factor. “The number of SKUs in this area has been growing — both in 2008 and continuing in 2009. The quality of these items has improved so we think it is the value for the money. People are getting better quality and more choices.” The 160-plus-store grocer is a subsidiary of Delhaize. Slicing it Up The introduction of El Monterey 2-Pack Burritos was influenced by customers. “The economy represents an opportunity for retailers to demonstrate that frozen pizzas are on par with restaurant pizzas and to position themselves to retain the incremental pizza occasions they capture now when the economy rebounds,” says Giacomo Fallucca, president and CEO of Milwaukee-based Palermo’s Pizza. Fallucca points to total pizza category dollar sales, which are up 3 percent (Information Resources, Inc., 52 weeks ending Dec. 30, 2008). “This growth has largely been driven by an increase in sales of ‘premium’ frozen pizza (retailing with an average price of $4 or more) as well as growth in the ‘value’ segment, including private label, which has seen an increase of 28.3 percent over this same period,” he notes. Palermo is expanding its premium product lineup with new flavors of Hearth Italia, made with a “one-of-akind” crust and “restaurant-quality” ingredients. The company is entering a new day part as well with its new Breakfast Pizza, which offers flavors like scrambled eggs, cheese and bacon in pizza form. www.progressivegrocer.com A H E A D O F W H AT ’ S N E X T http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - May 2009

Progressive Grocer - May 2009
Contents
Nielsen's Shelf Stoppers/Spotlight: Candy/Chocolate Candy
Market Snapshot: Tampa-St. Petersburg, Fla.
The 76th Annual Report of the Grocery Industry: Opportunity Knocking
Industry Ranking: The Super 50
Independents Report: IGA's Stores Down Under Are Experts at Giving Back
Lempert Report: Sustainable Agriculture is the Key to Feeding the World
Store of the Month: Angels in the City
United Fresh Product Forecast: Save-A-Lot Savors Suite Life at United Fresh
Meat/Seafood: A Signature Cut
Show Preview: IDDBA's Dairy-Deli-Bake 2009
Beverage Alcohol: A Heads-Up for Hops
Confectionery: Eye Candy
Hand-Held Frozen Entrees: Holding On
Coffee: Bean Counters
Private Label Trends: Private Practice
HBC: A Healthy Boost
Technology Case Study: Employ Automated Hiring
Equipment: Reach for Safety
What's Next Editors' Picks for Innovative Products
General Merchandise Taking Stock

Progressive Grocer - May 2009