Frozen Foods in North America

Quick Frozen Foods International Featured Article
Frozen Foods in North America - April 2007
Retail Frozen Bake-Off Falling Flat,
With Newcomers Pursuing Niches
By SHARON J. WISHNOW, QFFI Correspondent
Overall sales lag, despite efforts of market leaders. But that
gives smaller start-ups a chance to get in on the action.
Bridgford, meanwhile, monkeys around with Monkey Bread.
While the greatest inventions in life are often compared to sliced
bread, it doesn’t seem that frozen bread is the greatest invention
since its fresh cousin – at least not on the retail scene.
Chicago, Illinois-based Information Resources, Inc. (IRI) reports
that for the 52 weeks ending November 5, 2006 unit sales of
frozen bread products fell 1.4%. The entire baked goods
category, which includes pastry and frozen cookies, saw a 2.6%
unit sales drop.
Grocery stores are devoting more freezer space to quick bake
products, and consumers do like the convenience and quality.
Still, newer products don’t seem to be translating to higher sales.
Has the frozen bake-off category reached maturity?
Alexiaâ ™s Ciabatta bread became the
companyâ ™s number one seller after it
was marketed by foodservice chains like
Panera Bread.
Pepperidge Farm’s Artisan bread line and Pillsbury’s Oven
Baked range have effectively introduced the consumer to freshbaked bread at home, while industry pioneer La Brea Bakery has
filled in-store orders for years. This is good news for smaller
companies such as Alexia Foods of Brooklyn, New York.
Jack Acree, Alexia’s national sales manager told Quick Frozen
Foods International that the “other” product factor has been a
boon to them. He explained that Alexia released a large product
line (Ciabatta, French, 3 Cheese, Whole Grain, and Garlic
Baguette) to offer more choice to consumers.
What has surprised Alexia the most is that Ciabatta has been its
number one seller. This is attributed to marketing by foodservice
chains such as Panera Bread that have brought the product to the
attention of consumers. Alexia breads are available nationwide
in major retail supermarkets and in natural food stores such as
Whole Foods. Another interesting sales twist is that the
company’s “basic” whole grain rolls sell well in natural food
stores.
Acree said that when consumers shop for frozen bread in natural
food stores, they are most likely to find frozen sliced sandwich
bread products. In a traditional retail setting the Alexia rolls go
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head-to-head against brand giants such as Pillsbury. At natural
Whole grain rolls like Alexiaâ ™s sell
food stores, they become the top shelf item. Consumers try them,
well in natural foods stores as well as
mainstream market outlets. This 340-gram like them, and buy them again.
pack retails for $3.59.
Frozen bread and dough is categorized with “other” frozens.
Packaged Facts, the publishing division of MarketResearch.com, reports that “frozen bread and dough
dominates the ‘other’ frozen foods category, representing 55.5% of category sales in 2005.” This is attributed
to both growth in the bread category and to a decline in sales of frozen pasta and frozen side dishes.
But the truth is Americans love bread. A survey conducted by the Grains Food Foundation, a group sponsored
by the baking and milling industry, reports: “When asked, half of adults in the USA indicate they love eating
bread. And, 50% also indicate they eat bread almost every day.”
Survey results also showed that people associate the
smells and tastes of bread with positive memories.
This is good news for frozen bread bakers, as
freshly-baked bread coming from an in-store bakeoff operation or from a consumer’s oven can
translate into steady sales.
At the moment consumers are seeking whole
grains. Campbell Soup Co., producer of the
Pepperidge Farm brand of frozen breads, has
introduced a garlic whole grain Texas Toast and
Whole Grain Garlic Bread Baguette. Packaging
states that there are zero grams of trans fats and the
product is preservative free. Additionally,
packaging text restates the US 2005 dietary
guidelines for Americans recommending three
grams of whole grains per day.
Whole Grain Wheat Garlic Texas Toast is new from
Pepperidge Farm. Eight slices come per 319-gram box,
which retails for $3.19.
T. Marzetti Company, which serves up the New York brand, has redesigned packaging with new product
photos and updated colors. The newest product is a pre-sliced loaf of Lite Garlic Bread, produced by its
Columbus, Ohio-based New York Frozen Foods, Inc. unit.
T. Marzetti also manufacturers the Mamma Bella and Sister Shubert lines of frozen bread found in both retail
and foodservice outlets.
Other new products include a line extension from Pillsbury with Oven Baked Mini Crusty French loaves and
garlic flavored dinner rolls.
Lorene Salcido, a company spokesperson for
Anaheim, California-based Bridgford, says that the
entire frozen bread category gets a boost during the
winter holiday season starting at Thanksgiving.
“People are home cooking more meals and frozen
bread is convenient and easy to make,” she
commented.
Bridgford’s newest product, Monkey Bread, is
especially popular during the festive season.
Salcido explained that the company created this
item upon realizing that it was one of the most
requested recipes. In providing a product that
consumers already wanted, it also offered a
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microwaveable bread that is ready to serve in less
than three minutes.
Bridgford formulated a special dough that is said to
actually cook better in the microwave oven. After
test marketing in 2005, the product began entering
stores throughout the country during 2006. The pullapart bread is ideal for breakfast, snaking, and
during the holidays.
Salcido told QFFI that Bridgford is looking to
expand the Monkey Bread line, as well as debut
other products based on consumer recipe requests.
Monkey Bread from Bridgford is a hit with consumers
because it gives them just what they want – flavor,
convenience and zero trans fats.
So even though the sales numbers indicate a stall in
the “other” category as it relates to frozen bread,
manufacturers are optimistic. No matter how you
slice it, consumers love bread. Whether purchased
at a retail in-store bakery or in the frozen food
section, the comfort food later fills their homes
with pleasant aromas good eating.
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