Frozen foods. better for you. can actually be. than take out. FROZEN
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- Winfred Berry
- 5 years ago
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1 Frozen foods can actually be better for you than take out. Dollar Sales % Chg Yr Ago Frozen Sub Category Frozen Category Novelties 11.9% 10.2% F or years, frozen foods have gotten a bad rap they ve been thought of as highly processed and simply not fresh. Category- Ice Cream/Sherbet Category- Frozen & Dry Ice Dinners/Entrees Appetizers/Snack Rolls Pizza Breakfast Food All Other 2.9% 10.4% 10.3% 12.6% 21.9% 21.6% 17.3% Source: ConAgra Frozen Category Data However, in recent months and years, the leading frozen food manufacturers have been working diligently to help change the perception of their products, and that hard work is finally paying off! It seems that foods in the Frozen category are growing in popularity and acceptance, and with those changes come opportunities for healthy Frozen profits in your c-store! Overall, the Frozen category is up 11.8% versus last year with frozen dinners up 10.4%, frozen appetizers up 21.6% and frozen pizza up 10.3%. These are very healthy gains and signify a shift in thinking by your c-store customer. Your customer, who is often looking to purchase foods that taste great but also have healthy attributes, has been educated to the point that he or she understands that Frozen doesn t have to mean unhealthy. In fact, Frozen foods often offer a lower calorie intake coupled with a higher intake of vegetables, whole grains and total protein. In addition, freezing food preserves nutrients, locks in flavor and reduces waste. As part of their initiative for change, Nestle, one of the leading Frozen manufacturers, has created a program meant to inform the 48 CATEGORY INSIGHTS
2 consumer of the healthy changes they have made and will continue to make in their Frozen offering. As we take a closer look at the categories of frozen dinners, frozen appetizers and frozen pizza, we will search for ways to promote your Frozen offering in a way that gives the customers what they need, while also setting your c-store up for success. Frozen Dinners/Entrees At 9% share of the total category, frozen dinners and entrees are a big player, and as we stated earlier, are trending in a positive way with 10.4% growth. Within this segment, both single-serve and regular-sized meals are represented but single-serve is the leader in the convenience channel with approximately two-thirds of the sales. Also, the customer who purchases from this segment is looking for easy meal solutions either for themselves or their family. Some of the leading brands in this segment are certainly recognizable: Stouffer s, Banquet, and Lean Cuisine are all popular. However, as you make your determination as to which products to offer, be sure to consider not only item popularity, but margin and regional flavor favorites as well. Frozen Appetizers Frozen appetizers are another sizeable sub-category at 8% of the total market share and they are up an impres- At 9% share of the total category, frozen dinners and entrees are a big player and are trending in a positive way with 10.4% growth. 2nd Quarter
3 The Frozen Perception 55% of consumers feel food production in the US is on the wrong track Over 70% of consumers believe Frozen meals are highly processed Consumers desire fresh quality and believe it is healther than processed packaged foods The Frozen Reality Lower calorie intake Higher total Healthy Eating Index (HEI) Higher intake of total vegetables Higher intake of greens and beans Higher intake of whole grains Higher intake of total protein foods Lower intake of refined grains Lower intake of empty calories Source: eurekalert.org, Frozen meal eaters get more vegetables including greens, beans and whole grains but with lower total calories vs. fast food restaurant eaters Up 10.3%, frozen pizzas are gaining ground in the convenience channel, and once customers are aware that you offer their favorite frozen pizza brands, they ll definitely be coming back for more. sive 21.6%! Items in this segment are eaten in multiple day parts and are utilized as both snacks and as stand-alone meals. And similar to frozen dinners, the top items are immediately recognizable by name: White Castle, Hot Pockets, Totino s and TGI Friday s consistently lead in this segment. New product innovation in this sub-category will continue to drive sales with items such as Hot Pockets Bites. Frozen Pizza Coming in just below frozen dinners and frozen appetizers, we have frozen pizza with 7% share in this category. Up 10.3%, frozen pizzas are gaining ground in the convenience channel, and once customers are aware that you offer their favorite frozen pizza brands such as DiGiorno, Jack s, Tombstone and Totino s, they ll definitely be coming back for more. It s important to note that 83% of the frozen pizza volume in c-stores is for multi-serve pizzas and customers tend to purchase them after 4:00 pm. The top four flavors are pepperoni, meat, cheese and supreme. Similar to the other Frozen sub-categories, be sure to merchandise frozen pizzas near other products they would likely buy at the same time, such as frozen appetizers or beverages. It s best to merchandise multi-serve pizza along the bottom rows of shelves while arranging items such as single-serve pizzas, pizza bites and pizza rolls above. Within these arrangements, block by brand and flavor to increase brand recognition and sales. Planning for Profits With some of the hard work being done for you by the Frozen manufacturers, it s up to you to seal the deal for healthy profits in your c-store. Now that customers know that Frozen items can taste great and offer a healthy eating option, you simply need to be certain they know they can purchase those items right in your store, saving them a trip to another merchant. First, be certain that your Frozen section is promoted within the store with POS signage and other eye-catching displays. And once they locate the Frozen section, make it quick and easy for them to find what they want by utilizing proven merchandising strategies. Second, reinforce value perceptions by offering promotions such as meal deals. This type of promo is especially helpful with frozen pizza because it can easily be bundled with a beverage, ice cream or candy. Finally, look for food sales events where you can capitalize and make the most of your Frozen section. These events might include the Superbowl, March Madness, Halloween and New Year s. By leveraging these occasions, you can bring more shoppers into the store and increase the basket size. As always, consult your Eby-Brown representative for assistance regarding available promotional partnerships, or for assistance in planning your Frozen set. Sources: 2011 & 2013 Realities of the Aisle Study; AC Nielsen, TTl US Convenience, 2013; Frozen Foods Foundation: EurekAlert!; Nielsen Scantrack Total US Conv latest 52 ending ; ConAgra Frozen Category Data; Nestle Frozen Foods; Pinnacle Foods Frozen Analysis. 50 CATEGORY INSIGHTS
4 1 Door Frozen Planogram Implement the Eby Brown recommended 1 Door Frozen planogram to maximize your category dollars. 1 Door Frozen Planogram ITEM # DESCRIPTION TOP SHELF BGL BITES PEPPRONI 7Z BGL BITES THRE CHS 7Z TOTINO PEPR PIZ/RL 7Z TOTINO COMB PIZ/RL 7Z SECOND SHELF TGIF MOZZA CHS STK11Z HOTPCKT SNK BITE PEPP HOTPCKT HAM&CHS 2PK HOTPCKT PEP PIZZA 2PK THIRD SHELF TGIF BUFFALO WINGS 9Z BANQ SALSBRYSTK11.88Z BANQ FRIED CHCK 29Z BANQ CHKN POT PIE 7Z FOURTH SHELF WH CASTLE CHSBRGR 6PK STF MACARONI&CHSE 12Z STF LASAGNA SS 10Z STF F/B PEPR PIZA 10Z FIFTH SHELF DIGIORNO PEP 6.5Z 12 JACKS PEPPRNI 12IN JACKS PEPRNI/SGE 12IN BOTTOM SHELF R/BARON DD PIZ/PEP11Z DIGIORNO PEPPRNI 12IN DIGIORNA SUPREME 12IN 2nd Quarter
5 Implement the Eby Brown recommended 2 Door Frozen planogram to maximize your category dollars. 2 Door Frozen Planogram ITEM # DESCRIPTION ITEM # DESCRIPTION TOP SHELF - LEFT DOOR TOP SHELF - RIGHT DOOR SECOND SHELF - LEFT DOOR SECOND SHELF - RIGHT DOOR TOTINO PEPR PIZ/RL 7 OZ TOTINO COMB PIZ/RL 7 OZ TOTINO SAUS PIZ/RL 7 OZ TOTINO PZ/RL CHEESE TGIF POTATO SKINS 7.6 OZ TGIF BUFFALO WINGS 9 OZ TGIF MOZZA CHS STK 11 OZ TGIF CHN&CHS QUE RL 9 OZ ORE TATER TOTS 2 LB BGL BITES THRE CHS 7 OZ BGL BITES PEPPRONI 7OZ BGL BITES SGE/PEP 7 OZ HOTPCKT SNK BITE PEPP HOTPCKT PEP PIZZA 2 PK HOTPCKT HAM&CHS 2 PK HOTPCKT PHILCHZSTK2PK FOURTH SHELF - LEFT DOOR FOURTH SHELF - RIGHT DOOR FIFTH SHELF - LEFT DOOR FIFTH SHELF - RIGHT DOOR SMT ONE 3 CHS ZITI 9 OZ STF MACARONI & CHSE 12 OZ BANQ CHICKEN STRP 8.9 OZ BANQ SALSBRYSTK OZ WH CASTLE CHSBRGR 6 PK STF F/B PEPR PIZA 10 OZ STF F/B DLX PIZZA 10 OZ STOUFFER HMSTYL MEATLOAF/POT STF LASAGNA SS 10 OZ TOTINO SAUS PIZZA 10 OZ TOTINO COMBO PZA 10.5 OZ TOTINO PEPRNI PIZA 10 OZ R/BARON PEPPERONI 12 IN DIGIORNO PEP 6.5 OZ 12 DIGIORNO MW SUPM 6.5 OZ THIRD SHELF - LEFT DOOR THIRD SHELF - RIGHT DOOR BANQ FRIED CHCK 29 OZ BANQ CHKN NUGGETS 15 OZ BANQ BEEF POT PIE 7 OZ BANQ CHKN POT PIE 7 OZ STF-LC SESAME CHKN STF-LC SPAG&BEEF 11 OZ BOTTOM SHELF - LEFT DOOR BOTTOM SHELF - RIGHT DOOR COLES MINI GARLIC BRD JACKS PEPPRNI 12 IN JACKS PEPRNI/SGE 12 IN DIGIORNA SUPREME 12 IN DIGIORNO PEPPRNI 12 IN R/BARON DD PIZ/PEP 11 OZ 52 CATEGORY INSIGHTS
6 2 Door Frozen Planogram FROZEN 2nd Quarter
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