Milling & Baking News - November 2, 2004 - 23

FROZEN

GRAIN-BASED

FOODS

industry

Sara Lee Signature Selections soared 66.1%
on a dollar-sales basis in the 52 weeks ended
Oct. 3, 2004.

grabbed a 3.5% market share of the category.
The line, available in supreme, pepperoni,
four cheese, four meat, and grilled chicken
with tomato and spinach, was created with
this mind-set: About 40% of consumers surveyed by DiGiorno indicated a crispy crust
was key with thin pizza, while more than
a third of respondents cited generous toppings as important.
Kraft's innovation in the DiGiorno line
was not limited to just the Thin Crispy
Crust Pizza, though, as the company in late
August launched DiGiorno Microwave Rising Crust Pizza, the first and only pizza that
rises and bakes golden brown in the microwave in just five minutes.
"We know consumers love the convenience
of using the microwave, but not the taste and
texture of many microwave pizzas," said John
Boswell, vice-president of marketing, Kraft
Pizza Co. "In fact, only 17% of frozen pizzas
are made in the microwave. ... Thanks to our
unique cooking tray and crisping ring, the
crust bakes up crispy and golden brown on
the outside yet tender on the inside."
Mr. Boswell said that by bringing the
new microwavable pizza to market, Kraft
has "raised the bar once again."
DiGiorno Microwave Rising Crust is
making progress toward full national distribution and should impact fourth-quarter
sales favorably, the company said. The new
line is available in four cheese, pepperoni,
supreme and three meat. The suggested
retail price is $3.49.
Kraft hopes that the new innovations will
build on the company's already categoryleading 9.3% unit share of the frozen pizza

24 / Milling & Baking News, November 2, 2004

perspective

FROZEN

GRAIN-BASED

segment. In the 52-week period ended Oct.
3, DiGiorno, which also leads in dollar
sales, posted a 1.7% year-over-year gain in
dollar sales, while unit sales rose 4%.
Another company that has capitalized
on strength in the frozen pizza category
is Schwan's Consumer Brands North
America, Inc., a division of The Schwan
Food Co., a privately owned company
based in Marshall, Minn.
Makers of Tony's, Red Baron and Freschetta pizza brands, Schwan registered
year-over-year unit sales and dollar sales
gains in each of its three brands in the year
ended Oct. 3. In fact, carry-over success
from several new products introduced in
2003 under the Freschetta brand helped
drive a 12.1%-dollar sales increase to
$198.2 million in the 52 weeks ended Oct. 3,
according to I.R.I.
Much of the success has come from the
popularity of Freschetta Brick Oven pizza,
which features a thin, fire-baked crust and
rectangular shape. Selling for about $7 a
pizza, the product receives little promotional
support, but that has not stopped the product from grabbing consumers' attention.
Another of Schwan's brands, Tony's, has
rebounded behind some new initiatives
within the line. Even while consumers have
traded up from the value segment - including Tony's, Kraft's Jacks Original and General Mills' Totino's and Jenos brands - Tony's
found a way to register the largest year-overyear increase (7.8%) in unit sales among the
top 10 frozen pizza brands. The brand also
grew 2.8% on a dollar-sales basis.

Pie in the sky
Falling leaves and temperatures are not
the only signs that the holiday season is approaching - so to is the sight of expanded
freezer shelf space to frozen pies. Even
while consumers gradually shift toward

FOODS

industry

perspective

fresh bakery purchases, frozen pies still
hold a place in many consumers' hearts.
In the 52-week period ended Oct. 3, frozen
pie unit sales totaled 142,019,300, down 0.6%
from the same year-ago period, according to
I.R.I. But dollar sales during the same period
totaled $434,838,600, a gain of 2.3%.
That total, which included $323,824,500
in frozen pie sales and $111,014,100 in
frozen pie/pastry shell sales, gives frozen
pie manufacturers reason for hope that,
given high-quality products, consumers
will pay the price for health and wellness,
convenience and indulgence - factors that
continue to play out as important trends in
the frozen pie category.
With the exception of category-leading
Mrs. Smith's frozen pies, which sustained
a 4.6% decline in dollar sales during the
most recent 52 weeks, the other top five pie
brands showed year-over-year gains, led by
a 66.1% dollar share jump for Sara Lee Signature Selections.
The Sara Lee Signature Selections brand
has been a boon for Sara Lee Corp. since it
first hit the market in the fall of 2000. Generating a shade better than $12 million during
the 52-week period ended Oct. 3, the brand
relies on a unique mix of flavors to grab
consumers' attention.
Signature Selections are gourmet high pies,
also called deep dish, stuffed with an abundance of fruit filling that creates a bumpy top.
Varieties include Fruits of the Forest, which
contains apples, strawberries, blackberries,
raspberries and rhubarb; and Caramel Applenut, an apple pie with pockets of brown
sugar and walnuts that comes with a packet
of caramel to drizzle over the top.
In addition, the company's traditional
frozen pies and Sara Lee Oven Fresh pies
have maintained a solid growth pattern.
Schwan continues trying to build its presence in the frozen pie category, as well, but

Top-selling frozen pies

Mrs. Smith's
Edwards
Marie Callender's
Sara Lee
Sara Lee Signature Selections
Mrs. Smith's Special Recipe
Sara Lee Oven Fresh
Pet Ritz
Mrs. Smith's Soda Shoppe
Edwards Sundae Creations

Dollar sales
$95,094,700
$57,199,360
$47,637,200
$44,909,520
$12,126,590
$11,384,860
$10,680,570
$6,554,360
$5,541,124
$5,198,146

Dollar sales
% change from
year ago
-4.6
12.1
14.9
5.3
66.1
-17.5
4.3
-5.5
-15.2
-2.4

Unit sales
25,368,480
14,805,330
9,400,783
14,913,540
2,372,016
2,013,729
3,473,204
2,914,525
1,275,033
820,204

Unit sales
% change from
year ago
-6.3
7.8
14.6
8.3
58.0
-22.0
5.2
-5.4
-17.8
-3.0

Data for 52 weeks ended Oct. 3, 2004, in U.S. supermarkets with annual sales of $2 million or more, excluding Wal-Mart
Source: Information Resources, Inc.

bakingbusiness.com / world-grain.com

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Milling & Baking News - November 2, 2004

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