Frozen Pizza

Upscale ingredients and rising crust have made frozen pizza just as desirable as take-out. Contributing to sales growth during the 52 weeks ending June 13 was also price, as shoppers justified the cost of frozen varieties by comparing prices with pizzas obtained at a restaurant. The drug channel, with its expanding selection of groceries, posted the most dramatic growth at 12.3%, but on a smaller

Upscale ingredients and rising crust have made frozen pizza just as desirable as take-out. Contributing to sales growth during the 52 weeks ending June 13 was also price, as shoppers justified the cost of frozen varieties by comparing prices with pizzas obtained at a restaurant. The drug channel, with its expanding selection of groceries, posted the most dramatic growth at 12.3%, but on a smaller base than traditional supermarkets.

Also gaining momentum as shoppers experiment with preparing foods at home is frozen pizza crust/dough. But ready-to-heat varieties and the convenience they provide still reign supreme. A particularly popular brand is DiGiorno, which in 2009 experienced a 16% sales increase over the previous year. DiGiorno was formerly owned by Kraft Foods, but sold to Nestlé in January for $3.7 billion, along with frozen pizza brands Tombstone, California Pizza Kitchen, Jack's and Dellisios. The brands generated an estimated $1.6 billion in net revenue in 2009, according to Kraft.

52 WEEKS ENDING JUNE 13, 2010 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $3.1B 4.4
Drug $48.1M 12.3
F/D/Mx $3.2B 4.7
CALENDAR YEAR 2007 2008 DOLLAR SALES 2009
Supermarkets $2.8B $2.9B $3.0B
Drug $31.5M $37.9M $46.4M
F/D/Mx $2.9B $3.0B $3.2B

Sponsored by: Tyson Deli

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