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A SNACK IN TIME

DES MOINES, Iowa -- Demand for convenience foods is evident in this market, where retailers give heavy play to frozen pizza, snacks and ice cream.Area retailers are meeting the needs of time-pressed consumers by devoting significantly more space to frozen pizza and snacks, including stuffed "poppers," nachos and pastry pouches, SN found during a market profile late last month."The pizza category is

DES MOINES, Iowa -- Demand for convenience foods is evident in this market, where retailers give heavy play to frozen pizza, snacks and ice cream.

Area retailers are meeting the needs of time-pressed consumers by devoting significantly more space to frozen pizza and snacks, including stuffed "poppers," nachos and pastry pouches, SN found during a market profile late last month.

"The pizza category is on the uprise," Dick Rissman, produce director and frozen food manager at Dahl's Food Markets here, told SN. "And snacks, pockets and pizza rolls are also doing well. They're exploding with new items that are better quality."

At the same time, stores give plenty of room to another treat -- ice cream -- especially Iowa brands like Blue Bunny and Anderson Erickson. Consumers are just as loyal to regional companies in other frozens categories, such as pasta from Reames, based in the suburb of Clive; Orlondo's, a local two-unit restaurant company, and Aunt Vi's, by Warren Foods, Altoona.

Frozen food sales in the metro area here increased 8.4% to $58.1 million for the 52 weeks ended Sept. 8, 1996, according to Information Resources Inc., Chicago. This increase is significant because it's the highest of all 64 major cities IRI tracks. During the same 52 weeks, unit sales rose 1.7% to 30.2 million, which also is noteworthy because they slipped in 51 of the 64 other major cities during the same period, according to IRI.

The main reason for the sales and unit increases isn't clear, though some industry observers say it's due to larger sections and more promotions, particularly heightened advertising by the market leader, West Des Moines-based Hy-Vee Food Stores. Dahl's, the second-largest retailer, advertises in the newspaper several times a year but honors its competitors' coupons.

Hy-Vee controls nearly 70% of the market, while Dahl's holds about 50%. Other players include Fareway Stores, based in Boone; Super One Foods, Hermantown, Minn., and Aldi, a 400-unit limited assortment Batavia-based retailer that merchandises items in pallets. There's also one Easter Foods store in the area, along with a Target, though it doesn't carry frozens. Of the larger chains, only Dahl's agreed to speak with SN.

Though retailers differ when it comes to store size and layout of the frozens section, they all are similar in that they give special attention to pizza and snacks.

Dahl's is expanding its frozens departments as it remodels its stores. Depending on the size of the store, the retailer is replacing coffins with uprights and is using endcap space better.

"Frozens are becoming more important in the minds of our executives. There's a feeling that stores that don't expand will be left behind," Rissman said.

The pizza section at a Dahl's unit located at 4343 Merle Hay Road was expanded by 6 feet as part of a recent remodel, Rissman said. Pizza is now merchandised in three uprights without doors, while another upright is filled with snacks. And Rissman said he would have liked to see the pizza/snack section even larger.

"I could devote an entire aisle to pizza and it would sell," Rissman said. Dahl's offers plenty of variety in its snack foods. Along with popular brands, it carries a wide array of lesser-known names, such as quiche from Nancy's, Newark, Calif., and poppers by Roadkill, Tulsa, Okla. Dahl's special-orders products that are in demand, said Rissman.

"We're always adding a variety of different types of foods, not just the well-known brands," he said. "We've pushed the competition to carrying more variety as well."

Variety is evident in a popular shopping area in this market -- the intersection of 86th and Douglas, where a Hy-Vee is located directly across the street from a Super One Foods and an Aldi store.

During SN's visit, Hy-Vee had specials on pizza rolls and pastry pouches, including 7.5-ounce packages of Totino's pizza rolls, which were on sale at four for $5; 7-ounce packages of Totino's stuffed nachos, four for $5; and Red Barron deli pouches, assorted varieties, three 9-ounce packages for $7.

This store devotes nearly five of its 12 coffins to pizza, including Totino's, Tombstone, Jack's and its Hy-Vee brand, which was on sale at two for $6 for a 22-ounce package. Signs also promoted new self-rising pizza from Tombstone and DiGiorno, among others.

Super One Foods, located across the street from Hy-Vee, featured eight coffins and 48 uprights. This store devotes nearly 13 uprights and three endcaps to pizza. Numerous pizza specials were available: Red Barron, 21- to 24-ounce/premium, three for $11, regularly $4.49 each; and Tombstone, 18- to 23-ounce, $3.79, regularly $4.39.

The Aldi Store located next to Super One had 17 uprights, two of which were devoted to pizza, though there were no major brands. Mama Cozzi-brand premium sausage pizza retailed at $1.99 for a 23-ounce package. During SN's visit, most people shopping the frozens section picked up pizza.

Despite the limited offerings, snacks were also represented, including Hot Pockets, which retailed for $1.99 for a 9-ounce package.

Even smaller frozens sections devote a significant amount of space to pizza/snacks. Immediately upon entry to a Fareway store located at 8450 Meredith Drive, customers are greeted by a two-door upright filled with Totino's Pizza, which was on sale for 99 cents for a 10.7-ounce package in assorted varieties. The rest of the frozens department at this location consisted of two banks of coffins, each of which was comprised of six 14-foot-long units.

Along with pizza and snacks, the popularity of ice cream is evident in this market. Hy-Vee's Fleur Drive store, for instance, devotes 18 doors to ice cream and novelties.

The Super One located at 86th Street and Douglas allocates 20 doors to ice cream and another eight to novelties. A 5-quart pail of Blue Bunny ice cream sold for $5.35, while a half-gallon of its private label, Flavorite, was offered for $1.67 on sale, down from $1.97.

One of Dahl's newer stores, located at 9999 University Ave. in Clive, featured two banks of coffins flanked by two rows of uprights without doors. Each coffin bank has 12 units that run about 10 feet long. Both banks are used exclusively to hold ice cream. Ice cream also fills three endcaps, one of which held special limited-edition holiday selections, including Kemp's Frosted Trees and Blue Bunny Santa's Cookies and Milk and Blue Bunny Cinnamon. The banks are separated by special shelving units that hold cones, syrups and toppings.

"Ice cream sells year-round," Rissman said.

Ice cream and novelties filled all but one of the 10 coffins at Dahl's Fleur Drive store. The other coffin is used for quiche and bread dough. At its 35th Street store, located near Hy-Vee, six coffins and two endcaps are filled with ice cream, another six stock novelties and an endcap holds toppings.

Hy-Vee's 35th Street store had the most impressive frozens section of all the stores SN visited. A full 80 feet, or 28 uprights, are given to ice cream/novelties and toppings.

Hy-Vee's 86th and Douglas store devotes five coffins to ice cream and nearly two others to novelties. Almost two coffins are devoted to Hy-Vee brand ice cream and novelties. Also, two uprights are filled with whipped toppings, while another features frozen berries.

Meanwhile, most retailers here, particularly Hy-Vee, make good use of shelf and door signs. Hy-Vee's Fleur Drive store, for instance, heavily promoted its store-brand frozens. "For a Delicious Change, try Hy-Vee Frozen Vegetables," "Hy-Vee Vegetables, Compare Quality, Compare Price," and "Hy-Vee Orange Juice, 100% Florida Oranges," three signs read.

Signs promoted quick, easy frozen-food selections, both branded and private label: "Green Giant Create a Meal, Just Add Meat," "Tyson Meal Kits, Everything Included" and "Frozen Soups, Microwavable!" were among the signs SN noticed.

Hy-Vee also uses door signs as a cross-merchandising strategy. In the french fry/potato section at its 86th Street store, a sign read, "Put Fries With That Burger." In the frozen turkey/meat section, another recommended "Burritos, a Meal the Kids Can Fix." On the door of a section that contained Aunt Vi's, a regional pasta brand, was a sign that said, "Precooked Pasta, Just Heat 'n Serve."