Shoppers continue to reward food manufacturers that pack convenience or perceived health benefits into their products.
ategory review. Refrigerated foods, including entrees, side dishes, and teas and coffee, posted sizeable increases in sales. No longer a novelty to consumers, packaged salads also grew though at a much slower pace. Offering nutrition and convenience in one package, salads have become a top category for food retailers.
Foods with not-so-wholesome images, including margarine, frankfurters and breakfast meats, showed the sharpest drops in sales.
Meanwhile, drug stores continued to take sales away from conventional food retailers. Many fresh food categories saw increases in sales at drug stores, even as sales declined in the conventional channels.
LARGEST SALESPAGE 60
DOLLAR SALES: % CHANGE FROM LAST YEAR
Milk: $10.4B; -5.3
Fresh Bread & Rolls: $8.1B; -0.4
Natural Cheese: $5.9B; -1.2
Refrigerated Juices/Drinks: $3.9B; -0.2
Refrigerated Salad/Coleslaw: $3.3B; 3.8
TOP SALES GAINERSPAGE 64
DOLLAR SALES: % CHANGE FROM LAST YEAR
Refrigerated Side Dishes: $949.0M; 20.2
Refrigerated Teas/Coffee: $187.3M; 19.1
Other Refrigerated Products: $170.6M; 8.8
Refrigerated Spreads: $209.0M; 8.6
Refrigerated Entrees: $1.0B; 6.8
TOP SALES DECLINERSPAGE 68
DOLLAR SALES: % CHANGE FROM LAST YEAR
Processed Cheese: $2.1B; -7.4
Breakfast Meats: $2.8B; -6.6
Refrigerated Fresh Eggs: $2.3B; -5.3
Margarine/Spreads/Butter Blends: $1.2B; -4.9
Frankfurters: $1.6B; -4.3
52 weeks ending May 21, 2006
LARGEST SALES
Milk
Greater supplies of lower-priced milk outpaced demand in supermarkets due in part to increased sales in the drug channel. More consumers reached past cartons of whole milk - which took the most substantial dip of all subcategories - for healthier options, as evidenced by smaller declines in the skim and low-fat subcategories. Health benefits also spurred sales of traditional milk substitutes including Kefir, a dairy beverage containing probiotic strains found in yogurt, and soy milk, which is thought to lower cholesterol and reduce the risk of heart disease. Flavored milk experienced the smallest losses of all the milk subcategories. Studies have shown that flavored milks, and chocolate milk in particular, are popular with schoolchildren.
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Rfg Skim/Low-Fat Milk: $6.3B; -4.2%
Rfg Whole Milk: $2.8B; -9.3%
Rfg Flavored Milk/Eggnog/Buttermilk: $689.8M; -1.9%
Rfg Kefir/Milk Substitutes/Soy Milk: $402.8M; 2.3%
Rfg Milkshakes/Non-Dairy Drinks: $57.9M; -6.9%
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $10.4B; -5.3
Drug: $411.5M; 12.3
F/D/MX: $10.9B; -4.5
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES: % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $10.128B; -0.7; $10.757B; 6.2; $10.576B; -1.7
Drug: $260.2M; 7.7; $328.9M; 26.4; $414.1M; 25.9
F/D/MX: $10.530B; -0.7; $11.245B; 6.8; $11.164B; -0.7
LARGEST SALES
Fresh Bread & Rolls
The fresh bread category has slipped a bit in the past year. It's possible that in the recent flurry of activity to get trans fats out and whole grains in, some newly formulated products missed the flavor mark, and lost some customers in the process. Perhaps consumers, in their quest for whole grains and all-natural products, could be favoring in-store bakeries or other sources over the commercial aisle. IRI's figures include only the Top 26 vendors, and do not include buns and rolls. The only brand that is up appreciably, 13.7%, from last year is La Brea. The leading U.S. producer of partially baked artisan breads, La Brea Bakery Holdings supplies restaurants and food stores throughout the country.
*Calendar year sales for fresh bread only.
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $8.1B; -0.4
Drug: N/A
F/D/MX: N/A
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES: % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
*Supermarkets: $5.826B; N/A; $5.823B; 0.0; $5.828B; 0.1
Drug: N/A; N/A; N/A
F/D/MX: N/A; N/A; N/A
LARGEST SALES
Refrigerated Salad/Coleslaw
Packaged and prewashed salads and lettuce blends are mainstays for busy shoppers who want to get salad on the table in record time. The category is a sales leader for many food stores and supercenters. New salad blends continue to hit the market, appealing to consumers who want a nutritious and tasty dish that's ready to eat. Yet the category is showing signs of maturity. Unit sales were down in some categories posting modest sales increases. In the past year, the industry may have been hurt by reports of foodborne illness linked to bagged salads.
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Fresh-Cut Salad: $2.7B; 4.6%
Uniform Weight Fresh Lettuce: $561.8M; 1.6%
Uniform Weight Fresh Spinach: $71.7M; -8.2%
Uniform Weight Fresh Cabbage: $3.2M; 0.6%
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $3.3B; 3.8
Drug: $333,319; -6.3
F/D/MX: $3.4B; 3.9
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $2.957B; 7.8; $3.128B; 5.8; $3.322B; 6.2
Drug: $354,142; -42.2; $413,823; 16.9; $340,530; -17.7
F/D/MX: $2.976B; 7.8; $3.148B; 5.8; $3.348B; 6.3
LARGEST SALES
Refrigerated Juices
Refrigerated juices continue to be top sellers, with fortified, functional juices leading the way. Grouped under the "refrigerated all other fruit juice" subcategory, the products are up double digits in all channels, and new varieties are hitting the shelves every day. Marketers tout the antioxidants and other healthful attributes of the juices. Meanwhile, grape juice, with its own category, is leaping forward with triple-digit increases. Recent studies have shown drinking grape juice bolsters cardiovascular health. At the same time, orange juice has suffered setbacks with unit sales down despite promotions. Sales may have been affected by a federal ruling that put a clamp on some health claims marketers had previously been making. Consumer awareness of carbohydrates also could be hindering growth.
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $3.9B; -0.2
Drug: $47.6M; 5.6
F/D/MX: $4.0B; 0.1
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $3.924B; -3.3; $3.811B; -2.9; $3.892B; 2.1
Drug: $41.2M; 3.7; $42.7M; 3.4; $47.2M; 10.6
F/D/MX: $3.996B; -3.3; $3.886B; -2.7; $3.980B; 2.4
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Rfg Orange Juice: $2.5B; -3.6%
Rfg Fruit Drink: $663.7M; 0.6%
Rfg Blended Fruit Juice: $208.7M; 3.8%
Rfg Lemonade: $126.3M; 22.3%
Rfg All Other Fruit Juice: $99.8M; 41.6%
Rfg Juice/Drink Smoothies: $64.4M; 34.9%
Rfg Grapefruit Juice: $63.9M; -13.9%
Rfg Cider: $48.2M; 4.7%
Rfg Vegetable Juice/Cocktail: $29.6M; 24.1%
Rfg Fruit Nectar: $18.0M; 13.9%
Rfg Pineapple Juice: $12.5M; 5.2%
Rfg Apple Juice: $8.1M; -0.1%
Rfg Lemon/Lime Juice: $6.1M; 19.3%
Rfg Cran. Cocktail/Drink: $5.2M; 8.9%
Rfg Grape Juice: $3.4M; 137.9%
Rfg Cran. Juice/Cran. Juice Blend: $1.1M; -7.7%
Rfg Juice/Drink Concentrate/Syrup: $949,720; 156.1%
Rfg Grapefruit Cocktail/Drink: $159,734; -86.8%
Rfg Cocktail Mixes: $92,130; -41.9%
LARGEST SALES
Natural Cheese
The cheese market may soon become fully mature with growth potential limited to increases in population, according to projections made by a U.S. Department of Agriculture study released last month. After three consecutive years of growth, the category is beginning to plateau in the traditional channels. It experienced slight unit and dollar sales losses in supermarkets, a sharp contrast to its strong sales growth in the drug channel. Wider availability of a greater assortment of cheeses coupled with increased use of natural cheese as an ingredient in cooking has more than doubled per capita consumption since 1980, with mozzarella and cheddar responsible for most of the growth since 1995. A large portion of the past year's sales increases are attributed to crumbled cheese, followed by natural slices and string cheese.
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $5.9B; -1.2
Drug: $7.8M; 19.2
F/D/MX: $6.0B; -1.0
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Natural Chunks: $2.1B; -3.0%
Natural Shredded Cheese: $2.0B; -3.0%
Natural Slices: $636.4M; 6.3%
Natural String Cheese: $426.1M; 2.9%
SS Grated Cheese: $211.8M; 0.2%
Ricotta Cheese: $171.7M; -3.1%
Natural Crumbled: $165.2M; 18.7%
Rfg Grated Cheese: $79.3M; -5.5%
Natural Cube: $73.6M; -13.6%
Natural All Other Forms: $6.5M; -2.0%
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES: % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $5.222B; 6.3; $5.832B; 11.7; $5.921B; 1.5
Drug: $4.5M; -3.3; $5.4M; 21.7; $7.4M; 36.2
F/D/MX: $5.260B; 6.3; $5.881B; 11.8; $5.985B; 1.8
TOP SALES GAINERS
Refrigerated Side Dishes
Convenience and the desire to serve complete and wholesome homecooked meals boosted unit sales of higher-priced refrigerated side dishes in all channels for the 52 weeks ending May 21, 2006. The most dramatic growth took place in the traditional channel and was spurred by the popularity of refrigerated prepared dishes like macaroni and cheese and mashed potatoes as well as prepared salads, fruit and coleslaw. Supermarkets capitalized on demand with cross-merchandising strategies focusing on the stores' perimeter. The drug channel experienced more modest growth in the category due to expanded fresh cut fruit and prepared salad selections.
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES: % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $679.8M; 6.9; $734.1M; 8.0; $895.3M; 22.0
Drug: $638,223; 354.0; $886,933; 39.0; $872,257; -1.7
F/D/MX: $682.3M; 7.0; $736.8M; 8.0; $900.1M; 22.2
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $949.0M; 20.2
Drug: $886,201; 4.5
F/D/MX: $954.5M; 20.4
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Rfg Prepared Salad/Fruit/Coleslaw: $388.9M; 12.5%
Rfg Side Dishes: $265.1M; 63.2%
Rfg Appetizers/Snack Rolls: $264.0M; 5.6%
Rfg Sauerkraut: $30.9M; -2.4%
TOP SALES GAINERS
Refrigerated Entrees
Consumers are looking for shortcuts in the kitchen, and that's fueling the growth of refrigerated entrees. Manufacturers have rolled out many new products to nourish the demand for convenient, easily prepared food. Refrigerated soup sales are especially hot. It could be an indication shoppers want a healthier alternative to canned, salty soup. Many new lines of soup have been introduced recently.
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $1.0B; 6.8
Drug: $6.9M; 27.1
F/D/MX: $1.0B; 6.9
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Rfg Dinners/Entrees: $741.8M; 5.1%
Rfg Fresh Soup: $125.3M; 39.8%
Rfg Handheld Non-Breakfast Entrees: $81.1M; 6.6%
Rfg Breakfast Entrees: $54.8M; -15.6%
Rfg Chili: $9.1M; -15.2%
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES: % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $917.7M; 5.6; $916.2M; -0.2; $988.7M; 7.9
Drug: $4.4M; 35.8; $5.3M; 22.4; $5.9M; 10.5
F/D/MX: $929.4M; 5.9; $930.4M; 0.1; 1.004B; 7.9
TOP SALES GAINERS
Other Refrigerated Products
Sales of refrigerated baked beans, peanut butter and especially meat and seafood seasoning mix took a nosedive, while growth in the lucrative refrigerated sauce, gravy and marinade category made up the difference and then some to increase overall category sales in the supermarket channel. The trend was driven by the desire on the part of consumers to make quick but wholesome homecooked meals combined with increased cross-merchandising strategies.
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $149.3M; -2.5; 152.9M; 2.4; $163.8M; 7.2
Drug: $11,626; 29.5; $22,63294.7; $17,262; -23.7
F/D/MX: $150.1M; -2.5; $153.7M; 2.4; $165.0M; 7.4
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $170.6M; 8.8
Drug: $15,948; -21.3
F/D/MX: $171.9M; 9.0
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Rfg Sauce/Gravy/Marinade Mixes: $159.3M; 11.1%
Rfg Baked Beans: $7.2M; -5.4%
Rfg Peanut Butter: $2.8M; -10.9%
Rfg Mustard: $1.1M; -48.3%
Rfg Meat/Seafood Seasoning Mixes: $167,475; -70.6%
TOP SALES GAINERS
Refrigerated Spreads
Refrigerated spreads joined the ranks of top sales gainers this year for the first time, with flavored spreads leading the way. That subcategory, made up almost entirely of hummus and hummus-like products, increased in units as well as sales dollars in all channels except drug stores. The whole category has grown gradually over the last three years, but the flavored subcategory jumped significantly this year. Media coverage of Mediterranean diets and the public's constant quest for convenience have stirred a lot of activity among hummus producers. They've added varieties, all-natural versions, and new, attractive and convenient packaging. All that has helped the products stand out, especially in supermarkets.
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Flavored Spreads: $130.5M; 14.5%
Meat Spread/Salad: $56.3M; 0.7%
Horseradish/Horseradish Sauce: $21.7M; -1.0%
Honey: $453,402; -21.6%
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $209.0M; 8.6
Drug: $205,134; 5.2
F/D/MX: $210.1M; 8.8
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $172.5M; 7.0; $189.1M; 9.6; $199.8M; 5.6
Drug: $62,711; -11.5; $134,460; 114.4; $209,740; 56.0
F/D/MX: $173.0M; 6.9; $189.7M; 9.7; $200.8M; 5.8
TOP SALES GAINERS
Refrigerated Teas/Coffee
It's been a sweet year for makers of ready-to-drink tea. Dollar and unit sales of refrigerated tea posted double-digit growth. Consumers are aware of the health benefits of tea, and now the beverage can be enjoyed with no mixing required. Ready-to-drink tea is convenient for consumers on the go. The growth spurt likely will continue as beverage companies roll out new brands and flavors in single-serve glass bottles and larger containers.
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $187.3M; 19.1
Drug: $5.5M; 56.6
F/D/MX: $194.8M; 20.0
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Rfg Teas: $186.3M; 21.3%
Rfg Ready-to-Drink Coffee: $554,923; -80.9%
Rfg Coffee Concentrate: $454,204; -41.1%
2003: DOLLAR SALES; % CHANGE
Supermarkets: $131.3M; 9.3
Drug: $2.9M; 36.0
F/D/MX: $136.2M; 10.5
2004
Supermarkets: $148.0M; 12.8
Drug: $3.4M; 16.8
F/D/MX: $152.8M; 12.2
2005
Supermarkets: $174.8M; 18.1
Drug: $4.6M; 35.3
F/D/MX: $181.3M; 18.7
TOP SALES DECLINERS
Margarine/Spreads/Butter Blends
Consumers have heard the bad news about trans fats. On Jan. 1, the U.S. Food and Drug Administration required food companies to start listing trans fat content separately on the Nutrition Facts panel of all packaged foods. Therefore, it's not surprising that fat-filled margarines, spreads and butter blends are losing customers. Dollar and unit sales continued to decline in food stores and supercenters. In the drug store channel, dollar sales grew, though unit sales fell.
52 weeks ending May 21, 2006: DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $1.2B; -4.9
Drug: $2.8M; 8.2
F/D/MX: $1.2B; -4.7
CALENDAR YEAR; 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $1.185B; -2.0; $1.224B; 3.3; $1.198B; -2.2
Drug: $2.0M; -11.0; $2.4M; 20.1; $2.7M; 11.6
F/D/MX: $1.194B; -2.1; $1.234B; 3.3; $1.209B; -2.0
TOP SALES DECLINERS
Breakfast Meats
It shouldn't come as a surprise that bacon, ham and sausage sales have slid significantly in all channels this year when polls show as many as four out of 10 Americans skip breakfast altogether. Those who sit down for breakfast are favoring cold cereal. Meanwhile, impressive increases in sales of granola bars and breakfast bars in the last couple of years show people may be eating on the run more often. Eggs with bacon, ham or sausage have long been relegated to the weekend, and then are eaten out at a restaurant. Meanwhile, consumers in a hurry on weekday mornings are apt to eat whatever is handy. Indeed, an ABC news poll last year showed 48% of respondents under 45 occasionally eat cold pizza for breakfast. In supermarkets, unit sales, off just 1.6%, have not suffered as much as dollar sales, possibly because discount promotions have been used to move the products.
52 weeks ending May 21, 2006; DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $2.8B; -6.6
Drug: $3.5M; -12.3
F/D/MX: $2.8B; -6.5
Subcategories: Supermarket Sales 52 weeks Ending May 21, 2006
Bacon: $2.0B; -7.3%
Sausage/Ham: $853.1M; -5.0%
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $2.906B; 8.4; $3.036B; 4.5; $2.893B; -4.7
Drug: $4.2M; 15.5; $4.1M; -1.1; $3.5M; -15.9
F/D/MX: $2.926B; 8.3; $3.057B; 4.5; $2.914B; -4.7
TOP SALES DECLINERS
Frankfurters
Frankfurters took a hit this year, which may reflect consumers' growing interest in eating healthy food that's low in fat. In a national poll, nearly half the respondents - 48% - said the quality they most often seek in food is low fat, according to survey results released by novaQuant, an Oakland, Calif.-based research company. Nevertheless, sales of hot dogs in drug stores are up double digits this year, and that's been the trend since at least 2003. Many drug chains have added refrigerated cases stocked with hot dogs and other chilled, convenient foods to trigger impulse purchases.
DOLLAR SALES; % CHANGE
2003
Supermarkets
$1.656B; 1.3
Drug
$1.6M; -1.9
F/D/MX
$1.667B; 1.2
2004
Supermarkets
$1.644B; -0.7
Drug
$1.9M; 20.4
F/D/MX
$1.656B; -0.7
2005
Supermarkets
$1.601B; -2.7
Drug
$2.1M; 9.4
F/D/MX
$1.614B; -2.6
52 weeks ending May 21, 2006; DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $1.6B; -4.3
Drug: $2.2M; 11.6
F/D/MX: $1.6B; -4.2
TOP SALES DECLINERS
Processed Cheese
Consumers have acquired a taste for gourmet, specialty and ethnic cheeses with sharp, interesting flavors. At the same time, shoppers have turned up their noses at cheese in a can, the pre-wrapped slices and other forms of bland processed cheese. Sales continued to slide in conventional food stores and supercenters, while drug stores posted gains.
52 weeks ending May 21, 2006; DOLLAR SALES; % CHANGE FROM LAST YEAR
Supermarkets: $2.1B; -7.4
Drug: $6.3M; 11.2
F/D/MX: $2.2B; -7.2
Subcategories: Supermarket Sales 52 weeks ending May 21, 2006
Processed Slices: $1.3B; -8.7
Cheese Spreads/Balls: $311.3M; -1.6
Processed Loaf: $261.5M; -4.7
All Other Processed Cheese: $162.6M; -10.2
Aerosol/Squeezable Cheese Spreads: $73.4M; -4.0
Imitation All Other Forms: $23.0M; -17.6
American All Other Forms: $17.2M; -10.6
Processed Shredded Cheese: $9.0M; -18.2
CALENDAR YEAR: 2003; 2004; 2005
DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE; DOLLAR SALES; % CHANGE
Supermarkets: $2.254B; -3.0; $2.320B; 2.9; $2.219B; -4.3
Drug: $3.9M; -14.8; $5.5M; 39.8; $5.9M; 6.8
F/D/MX: $2.277B; -3.2; $2.345B; 3.0; $2.247B; -4.2
TOP SALES DECLINERS
Refrigerated
Fresh Eggs
Supermarket egg sales cracked for the second consecutive year along with the popularity of protein-based diets. Although overall consumption is down, demand for specialty eggs sold at a premium - including eggs fortified with omega-3s and those produced by cage-free and free-range hens - helped stabilize the category. Supermarket unit sales dropped slightly below dollar sales for the 52 weeks ending May 21, 2006, despite an oversupply of eggs. Convenience played a role in egg purchases as evidenced by the solid growth in the drug channel, which was responsible for part of the dip in egg sales at food stores.
