FANCY FROZENS

Oct 15, 2007 12:00 PM, BY KELLY GATES

Healthy, restaurant-style frozen meals lift sales for retailers


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Frozen meals are hotter than ever.

Fancy frozens

Today's iced entrees are healthier, more sophisticated blends that rival the best restaurant cuisine. Some are made with whole grains and packed full of veggies and legumes. Others are certified organic.

The most popular varieties are infused with flavors from around the world. Asian and Italian ingredients are highly popular, but food-makers are also experimenting with more exotic varieties like Moroccan and Turkish fare.

The newest frozen meals at Boyer's Food Markets, Orwigsburg, Pa., are from Kashi and Tastee Choice. According to Anthony Gigliotti, vice president of sales and marketing for the 17-store chain, chilled choices from these brands touch on all the latest trends.

“Frozen meals right now include healthier foods that are restaurant- or bistro-style,” said Gigliotti. “We have Kashi's new boxed line of frozen meals that emphasize ‘7 whole grains’ on each package. We also carry the new Corner Bistro panini sandwiches from Nestlé.”

The new Kashi varieties at Boyer's include palate-pleasing mixes of Lime with Cilantro and Shrimp, Lemon Rosemary with Chicken, Sweet & Sour Chicken and Southwest Style Chicken — each mixed with multi-grain pilaf.

Kashi also makes other frozen pilaf meals like Black Bean Mango, Lemongrass Coconut Chicken and Chicken Florentine. In addition, the health-focused company has two pasta-based dishes: Chicken Pasta Pomodoro and Pesto Pasta Primavera.

Boyer's assortment of Tastee Choice meals all have shrimp as the main protein along with combinations of rice and vegetables, Asian vegetables and rice, primavera pasta or Mediterranean-style pasta.

“There are a lot of different brands in this category already, and I just had another presentation for a new line called Culinary Delights,” said Gigliotti. “[Culinary Delights] is another higher-quality, gourmet line that is made in America, which is good, because more consumers are looking for gourmet items.”

Gigliotti has not yet decided if he will pick up the new line, but he admits it piqued his interest.

One high-end line he did say yes to a few years ago is made by Bertolli. Varieties include Chicken Alla Vodka & Farfalle, Spicy Shrimp Fra Diavolo & Penne and Meatballs Pomodoro & Penne, among others.

The chain's shoppers like Bertolli's bagged dinners, but Gigliotti believes these and other gourmet entrees are priced a little too high. If manufacturers can find a way to produce gourmet frozens at more reasonable prices, they'll attract more consumers, he said.

“There are several levels of frozen meals. Those that cost $.99 and often sell at two for $3; meals that sell at two for $4 or two for $5; and some that sell at two for $6 or two for $7,” said Gigliotti. “Then there's the upper tier at $4.99 or $5.99 each. Once you get into the $4.99 or higher range, movement goes down dramatically.”

Manufacturers would get a lot more trial if they lowered the price a dollar or so without compromising quality, he added.

Indeed, consumers have expressed an interest in higher-quality frozen dinners and entrees, said Ted Taft, managing director, Meridian Consulting Group, Westport, Conn.

“As quality continues to improve with restaurant-style meals, this further takes advantage of the innate strengths of frozens, like their convenience and the fact that they are as close to fresh food as it gets,” he said. “This also gives retailers another weapon to further leverage in competition with restaurants.”

Jim Wisner, president, Wisner Marketing Group, Libertyville, Ill., agrees that there's a frigid fight going on between retailers and restaurants. But fast-food joints aren't the only contenders anymore. All types of eating establishments are stepping into the ring to compete, he told SN.

“Nearly every new restaurant out there offers carryout now, even many of the sit-down restaurants,” he said. “Most of the new restaurants being built — and some of the older ones, too — have put in accommodations for carryout, whether it's a drive-through window or special curbside parking and a carryout-only entrance.”

Wisner expects more retailers to ratchet up their frozen promotion campaigns to keep their share of the dinner market. He also recommends cross-merchandising things like frozen lasagna with frozen garlic bread and frozen desserts to boost sales throughout the category.

Another strategy lies outside the freezer aisles.

“Retailers could compete more directly by putting in their own drive-through windows or separate registers in the deli and prepared-food departments,” he said. “This, coupled with creative frozen promotions, would certainly help.”

Earlier this year, Publix Super Markets took a page out of the books of Outback Steakhouse and Chili's when it began testing curbside service for deli items in its Fort Myers, Fla., location.


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