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CONSUMERS LEAD EVOLUTION OF HMR, CONSULTANT SAYS

MINNEAPOLIS -- The leaders in home meal replacement will be responding quickly to changing consumer wants and needs, according to an industry consultant who has worked with Boston Chicken.Among their likely moves in the near future are changing the menus, injecting more kid appeal and even starting delivery services, according to M. Jay Heilbrunn, a consultant with Clinton Associates, Deerfield, Ill.Heilbrunn

MINNEAPOLIS -- The leaders in home meal replacement will be responding quickly to changing consumer wants and needs, according to an industry consultant who has worked with Boston Chicken.

Among their likely moves in the near future are changing the menus, injecting more kid appeal and even starting delivery services, according to M. Jay Heilbrunn, a consultant with Clinton Associates, Deerfield, Ill.

Heilbrunn spoke to a packed house for a seminar entitled "Home Meal Replacement -- Threat or Opportunity," given during the International Dairy-Deli-Bakery Association's convention here earlier this month.

He pointed out that Boston Market -- whom he dubbed the clear leader in the home meal replacement business -- is in the process of installing computers in each unit to collect instant customer feedback.

"You must keep asking the customer over and over again what they want. Their fickleness will change directions rapidly and it is solid, on-going research that will help to keep you and your company ahead of the power curve."

Heilbrunn, who has been a consultant for Boston Chicken, the company that operates and franchises Boston Market outlets, noted that Boston Market's menu board is designed for easy change and that the menu format gives the customer ultimate choice.

"It features meals for different sizes of party. There are meals to serve two to three and

four to six people, but the meals don't lock the customer into particular sides," he said.

He pointed out that the successful home meal replacement players like Boston Market and Kenny Rogers are constantly evolving in order to mirror their customers' profile.

"In home meal replacement's future, look for further menu expansion, new variations of meatloaf, new chicken items. There will also be more emphasis on entertaining and satisfying children, and marketing reach will be expanded to include such things as delivery to the home and the workplace. Companies will make the most of catering opportunities, too," Heilbrunn said.

He said that, change notwithstanding, the HMR phenomenon is here to stay, and represents an opportunity for supermarket delis.

"Supermarkets already have the elements of home meal replacement. The question is whether they can market it as well as the food-service industry can," he said.

Heilbrunn defined home meal replacement as food you would cook at home if you had the time and wanted to make the effort. High levels of quality and taste will be the constants necessary for successful home meal replacement, he said.

He advised supermarkets involved in HMR to look for new ways to use flavor and different ways to appeal to the increasingly sophisticated tastes of consumers.

Heilbrunn also noted that products that hold up well and travel well will be the winners.

Finally, he advised supermarket chains to take advantage of the HMR trend because it will continue to grow. It is the fastest- growing segment of the food-service industry, and the profit margins -- despite the labor that goes into preparation -- are good, he said.