Milling & Baking News Corporate Profiles - 2015 - (Page 26)

Industry PackagedReview: Foods Packaged Foods Packaged foods Acquisitions shake up frozen foods category T he frozen foods aisle lately could be called "Acquisition Alley." Last year General Mills, Inc. acquired Annie's while Pinnacle Foods, Inc. announced plans to buy Garden Protein International, Inc. This year, B&G Foods announced plans to acquire the Green Giant brand from General Mills, and WhiteWave Foods showed interest in becoming a player in frozen foods. While companies are stirring and brands are switching, sales still need a spark. U.S. retail sales fell for single-serve frozen dinners/entrees (3.1%) and multi-serve frozen dinners/entrees (0.3%) in the 52-week period ended Aug. 9, according to Information Resources, Inc. Edging higher were frozen pizza sales (up 1.4%) and frozen handheld entrees (also up 1.4%). Packaged Facts, Rockville, Md., addressed the category's problems in a report released in January called "Frozen Foods in the U.S.: Hot Meals, Sides and Snacks." "Frozen foods of all kinds have been challenged in recent years as a result of the emergence of several trends, especially, but not exclusively, a growing demand for fresh products or, at least, fresher products in refrigerated rather than frozen form," said David Sprinkle, research director of Packaged Facts. "For instance, frozen products identified as natural or organic are having a more positive experience than frozen foods in LEADING SINGLE-SERVE FROZEN LEADING SINGLE-SERVE FROZEN dinner/entree vendors 1 2 3 4 5 6 7 8 9 Nestle USA, Inc. ConAgra Foods, Inc. Bellisio Foods Heinz North America Amy's Kitchen, Inc. Pinnacle Foods Group L.L.C. Windsor Foods, Inc. Atkins Nutritionals, Inc. Birds Eye Foods, Inc. Private label Total Dollar sales $1,214,783,360 $1,194,947,456 $388,800,096 $371,751,488 $225,160,896 $207,881,712 $79,372,152 $75,725,024 $49,629,492 $59,157,320 $4,185,490,944 general. These organic and natural frozen foods appeal to the consumer who is both cost conscious and health conscious." Packaged Facts estimated sales of collective frozen food categories dinners/entrees, pizzas, side dishes and appetizers/snacks will inch up to $23 billion in 2019 from $22 billion in 2014. Increased sales in frozen dinners/entrees, pizzas, side dishes and snacks in the five-year period will be based on how marketers adjust to a changing consumer environment that demands more variety in terms of flavor and serving styles, healthier foods, and better pricing, according to Packaged Facts. Acquisitions might be a way to ignite growth. Released in May of this year, a Rabobank report titled "Dude, Where's My Consumer?" examined how iconic brands owned by America's largest food and beverage companies have hit upon struggling times, including in frozen foods. Innovation is needed. "For those companies who have lost their R.&D. mojo, our advice is to continue to outsource innovation by buying companies, but at an earlier-than-normal stage in the life cycle, thereby reducing the risk of paying too much," the report said. Smaller to mid-size players may appeal more to consumers, too. "Consumers - particularly millennials - are increasingly showing preference for the small, specialized operator dinner/entree brands % change from year ago -8.3% -4.9% 8.5% -13.8% 14.0% 0.7% -5.6% 1.9% 7.0% 10.8% -3.1% 1 2 3 4 5 6 7 8 9 10 Stouffer's Marie Callender's Banquet Weight Watchers Smart Ones Lean Cuisine Culinary Collection Lean Cuisine Simple Favorites Healthy Choice Café Steamers Hungry-Man Healthy Choice Top Chef Café Steamers Michelina's Total Dollar sales $522,116,512 $413,439,584 $305,713,664 $286,828,736 $230,828,656 $216,807,280 $153,088,592 $133,239,560 $118,137,168 $104,461,192 $4,185,490,944 % change from year ago -4.1% 17.9% -6.5% -16.0% -7.3% -8.4% 14.1% -3.0% -1.5% 2.4% -3.1% Data for 52 weeks ended Aug. 9, 2015 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 26 \ October 2015 Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - 2015

Milling & Baking News Corporate Profiles - 2015
Table of Contents
Editorial - With growth elusive, its pursuit only intensifies
Industry Review: Grain-based Foods
Industry Review: Packaged Foods
Can K-Cups kick-start soup?
Industry Review: Beverages
Industry Review: Meat and Poultry
Industry Review: Dairy
Industry Review: Confectionery
Industry Review: Food Service
Industry Review: Clean Label
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - The Hain Celestial Group, Inc.
Company Overview - The Hershey Co.

Milling & Baking News Corporate Profiles - 2015