TAKING SIDES 2011

JENNA TELESCA

Hot or cold, shoppers are still reaching for store-prepared sides as an alternative to fast food, or to add to home-cooked meals or store-cooked entrees.

Some companies have experimented with better-for-you side dishes.

Sides allow retailers to capture more meal occasions, and the convenience of easy home preparation appeals to shoppers, said Jenny Anderson, program director of the RMS monitor program for Technomic, a foodservice consulting firm in Chicago. “Customers don't have to worry as much about spoilage and can pick up quick, easy items for multiple future meals, not just one in the immediate future.”

These factors have lead to reliable growth for the category, which enjoyed a 2.7% increase in unit sales during the 52 weeks ending Oct. 2, according to the latest data from SymphonyIRI Group, a Chicago-based research firm.

“We are pleased with the performance of our refrigerated side dish category, and we believe it is attributed to customers' preferences for quick, easy meals,” said Food Lion spokeswoman Tenisha Waldo.

Refrigerated appetizers and snack rolls, including many Asian-inspired items, lead the boost in category unit sales with a 6.1% jump, followed by refrigerated prepared salad/fruit/coleslaw at 4% and refrigerated potato side dishes at 3.53%, according to SymphonyIRI.

Other portions of this category didn't fare as well, with frozen sides, refrigerated sauerkraut and “other” refrigerated sides that don't fall into any of the above specific categories all losing unit sales.

“Overall, this category has steady growth and strong consumer appeal,” said Nick Sabala, director of Boise, Idaho-based Strategic Marketing and Analytical Research Team. “Retailers are doing a good job but need to continue watching the overall food and health trends and catering their offerings to consumers needs.”

At Schenectady, N.Y.-based Price Chopper Supermarkets, Manager of Food Service John Mazzacco keeps the presentation fresh by incorporating ideas that work well in restaurants, such as seasonal items. He keeps track of the latest trends and then makes sure he's ready to market those items when the season comes.

“I can't run pumpkin bisque in July, it just doesn't make sense,” he explained. “But, we did run lobster rolls — New England lobster roll sandwiches — because that makes sense. In December, I'll run Manhattan clam chowder, or we do lobster mac and cheese.”

Although items like lobster mac and cheese have a higher price tag, customers don't necessarily shy from higher-end sides.

“Even though it's a higher-end product, they seem to like to want to indulge every once in a while,” Mazzacco told SN. “It might be a little bit more than they're used to paying at the grocery store, but it's a better price than what they would have at a restaurant.”

The incorporation of regional flavors, ethnic influences and premium ingredients into house-made side dishes is becoming a growing trend, with upscale and regional retailers typically leading these innovations, according to Anderson at Technomic.

For example, the Whole Foods Market in the Chelsea neighborhood of Manhattan offers ethnic-inspired sides infused with high-quality ingredients. In the refrigerated section, the retailer offers single-portion mushroom goat cheese quesadillas and pork and mango quesadillas for $3.99.

Served in a plastic cup, Whole Foods' Health Starts Here “shakers” also nod to ethnic influences, but incorporate other popular healthy ingredients. For example, the “Asian Shaker” contains layers of wheatberries, quinoa, barley, zucchini, squash and carrot ginger dressing for $5.29.

Due to the small portions, the store can keep the premium side dish prices affordable for customers looking to add the side to a lunch or dinner, such as the individual portion heirloom bean salad for $3.99 or the seitan cacciatore for $4.99.

While variety can drive sales, retailers should be careful not to let innovations overshadow traditional favorites.

Six months ago, after customers requested healthier options, Price Chopper added seven sides with high scores on the NuVal nutritional rating system, including steamed broccoli, corn roasted on the rotisserie, and whole potatoes and sweet potatoes.

The healthier options didn't take off as expected.

“It did OK. We weren't real happy with all the sales because they still wanted the [traditional] sides,” Mazzacco said. “They still wanted the mac and cheese, the lobster mac, the bacon mac or mashed potatoes, gravy and stuffing.”

Price Chopper moved to a balanced approach, now offering one high NuVal score side at all times, as well as offering a second vegetable dish that might not have a high NuVal score — like Dill Carrots with butter, dill and honey — in addition to other starchy sides. One challenge is that the high-score NuVal items can't necessarily be put out in the cold and hot self-service cases because products like steamed broccoli don't always keep well in those conditions.

The broadly appealing and kid-friendly comfort food side dish category has been taking interesting turns, Anderson noted.

“There are several twists on classic sides, like potato cakes or macaroni and cheese with specialty cheeses or different herbs or spices, for example,” Anderson said. “And also some newer options for starchy sides, like polenta and rice, that still have that hearty appeal.”

In the winter, Price Chopper runs limited-time offers featuring new takes on comfort-food sides, like bacon mac and cheese, and veggie mac with cheese with pasta, broccoli, and tomato.

The allure of hearty comfort food sides is especially strong during the holidays, when shoppers turn to traditional meals that often celebrate sides.

In fact, when thinking about holiday meals, 51% of shoppers look forward to the sides more than the main entree, according to a recent consumer survey conducted by Kelton Research for Hormel Foods.

“Refrigerated potatoes, vegetable side dishes, pre-made soufflés and other traditional comfort food items have high seasonality during the holiday season,” Sabala said, adding that this indicates that “consumers may be spending their time on making the main courses from scratch and utilizing pre-made refrigerated side-dishes to accompany it.”

For the holiday season, Food Lion expands its everyday assortment category of Southern favorites like macaroni and cheese and mashed potatoes and gravy, Waldo said.

“While we do see a spike in this category during the holiday season, our offerings are designed to meet the needs of our customers every day,” Waldo said.

Retailers are becoming more savvy about marketing sides as part of a complete meal, Anderson said. “Multiple chains now have individual and multi-portion meals that include the entree and accompaniments for one price.”

And, many retailers are promoting bundled meals for the holidays.

For Thanksgiving, Winn-Dixie Stores is promoting five different meal combinations that range in price from a small meal for four to six guests for $39.99 to a larger meal for eight to 10 guests for $69.99.

The deluxe turkey dinner for $54.99 for eight to 10 guests includes 10 to 12 pounds of cooked turkey, gravy, cranberry orange salad and 2 pounds of sides of the customer's choosing such as sweet potato soufflé, bread pudding, green bean casserole, spiced apples or seasoned mashed potatoes.

Winn-Dixie spokesman Eric Barnes said that offering customers prepared items during the holidays is one of the key features of Winn-Dixie's new “transformational” remodels. (See “Winn-Dixie Remodels Drive Sales Gains, Fast Returns,” Sept. 5, 2011).

Pairing sides with entrees seems to drive sales, Mazzacco said. On Wednesdays, Price Chopper offers bundled meals of one entree with two 24-ounce sides. For Thanksgiving, shoppers can get a 24-ounce side, turkey breast and cranberry sauce for $10.

Mazzacco said these convenient meals tend to be popular with couples, elderly customers, and small families who aren't cooking for a large group.

For the refrigerated side dish category in general, Sabala said the customer base varies, but “commonly tend to be highly educated, middle-aged people with disposable income.”

“These consumers are used to getting what they want, but do not always have the time necessary to make meals at home,” he said.