RETAILERS FINDING FROZEN, ORGANIC FOODS HOT

BARBARA MURRAY

In response to the growing demand for frozen and organic natural foods, savvy retailers are devoting more space to these products and carrying a greater variety of stock-keeping units.

As reported in SN last month, Wild Oats Community Markets, Boulder, Colo., rolled out a 23-item private-label organics line that includes vegetables, french fries, juice concentrates and waffles. The company is also looking into creating a private-label line of frozen entrees.

The frozens category is showing strong growth, according to the Manufacturers' Market Survey done for the Organic Trade Association, Greenfield, Mass., and released in December 1998. As reported in SN, the survey found that organic frozen foods -- defined as frozen vegetables, juices and entrees -- grew an estimated 69% in 1998, and are expected to grow at an average annual rate of 40% until the year 2002.

Moreover, an analysis of frozen organic vegetables done by the USDA shows supermarket sales volume increased steadily, and at times dramatically, from 1990 through 1996. For example, on average, sales of organic broccoli, sweet corn, green beans and peas increased 58.4% per year in volume and 67.8% in value.

Among the factors fueling growth are consumer demands for healthier products that fit busy, on-the-go lifestyles, as well as the growing number of manufacturers who are entering the frozen organics category with new products.

SN recently visited Bread & Circus units in greater Boston and found that the chain is paying a lot of attention to frozens. Ice cream in particular makes a strong showing, even in small stores such as the one in Wellesley Hills, which has three of its 12 doors devoted to ice cream and sorbets.

Bread & Circus, which is a banner in a division of Whole Foods, Austin, Texas, gives Whole Foods' private label "365" brand prominent placement. At the Wellesley Hills unit, SN saw chocolate, coffee, chocolate chip and vanilla varieties. Nonetheless, other brands, such as Ben & Jerry's, are also available.

Next in the frozen lineup are vegetables, mostly from Cascadian Farm. The brand occupies nine shelves. Seven SKUs were on sale during SN's visit.

Additional doors are labeled "Entrees," "Vegetarian," and "International." Product mix includes veggie pockets and pot pies, soy and grain burgers and enchiladas and burritos. Brand names include the more well known Amy's and Cedarlane, as well as Senor Felix's and Elka's.

Hain's Vegetarian Classics are in the International frozens section, along with items like Goodwives Feta Sundried Tomato Fillo rolls and Crab Puff Pastries, and Health Is Wealth Jalapeno and Pizza Tofu Munchies. Also here are Tabatchnick frozen soups in pea, minestrone, vegetable, barley and mushroom, and Tuscany lentil.

An Asian door contains Ethnic Gourmet Teriyaki Chicken and other flavors and products from The Thai Chef and Taj Gourmet. Additional doors hold snacks, pizza, pasta, waffles, juices and breads. Tofurkey, at $19.99, was described in a shelf tag as "a delicious vegan feast, just heat & serve." It weighed 3 pounds, 4 ounces.

In Brighton, the frozens aisle is 30 feet long, with 5 doors devoted to ice cream and sorbets. The section marked with stickers or decals from Blue Moon Sorbet, Cascadian Farm and Stonyfield Yogurt is labeled "organic treats." There are separate sections for sorbets and frozen bars. Other doors are labeled Breads, Waffles and Berries, Juice and Ice, Veggies (with mostly Cascadian Farm products, but also "365," Birds Eye and SnoPac). Additional doors stock Nuggets and Fish Sticks, Frozen Entrees, Veggie Burgers, Burritos and Enchiladas, Munchies, Pasta, Lasagna & Shells, and Pizza.

Separately from the frozens aisle, a small bin at the front end of the dairy aisle holds Cascadian Farm frozen vegetables in 10-ounce bags, organic peas for $1.79 and all other varieties for $1.69. The Symphony Bread & Circus, in a mixed business and residential area in downtown Boston near Symphony Hall, uses 23 feet of open shelving in the frozens section rather than doors. The section, located at the rear of the store, shares a 7-foot wide aisle with dairy foods.

This store stocks a variety of pizzas, including Farm Foods Pizsoy pizza, Nature's Hilights Rice Crust Pizza, soy cheese style, $4.99 for 11 ounces and Bravissimo Spice/Thai Vegetable and Roasted Vegetable Pizza, $4.99 for 14 ounces. In the vegetable category, SN saw "365" brand, Cascadian Farm and Birds Eye.

Whole Foods in not the only natural foods chain augmenting its frozens section. Joe DeSilva, assistant manager of Erewhon Natural Foods, West Los Angeles, said that frozen foods is one of his leading categories, along with deli and nutrition products. Erewhon was one of the units visited on a natural foods store tour sponsored by Natural Products Expo West, held in Anaheim, Calif., last month.

The 10,000-square-foot store has 11 doors of frozen foods. "Our customers are on-the-go people," said DeSilva. Since the store is located on Beverly Boulevard near CBS' Television City, entertainment industry people shop there on breaks or before and after work, DeSilva noted.

Cascadian Farm products are big sellers for Erewhon, including the new line of frozen entrees. Gardenburgers and Boca Burgers are also very popular, DeSilva said, as well as frozen dinners from Gloria's Kitchen.

In response to growing retail sales and consumer demand for organic frozen foods, Cascadian Farm, Sedro-Woolley, Wash., is providing its top customers with stand-alone freezers that will be strategically placed in areas closer to the checkout line. Raley's Supermarkets, West Sacramento, Calif., will be the first chain to get the new freezers, according to Bonnie Tawse, a public relations representative for Cascadian Farm.

The freezers, measuring 35 by 24 by 36 inches, will begin to appear in stores this month, Tawse said. Designed as "knowledge centers," the freezers have built-in racks for information and recipes.