Packaged deals 2018-01-01 (2)

New entrants, better-for-you options and expanded varieties are revitalizing the boxed dinner kit category. Think of them as comfort food for the soul—and the bottom line. Whether it is classic macaroni & cheese, beef stroganoff, instant rice dishes or a hearty soup mix, packaged dinner meal kits are making a comeback with line extensions for existing brands and major entries from new manufacturers. Take Horizon, for example. The brand has been a pioneer in developing the organic dairy case with its Horizon Organic milks and cheeses. Now it has entered the packaged dinner aisle with a line of shelf-stable boxed macaroni & cheese dinners. “We looked at the category and found that it is a large, high household penetration category,” says Mike Ferry, president, Horizon, a division of White Wave Foods, based in Broomfield, Colo. “But moms are not completely satisfied with the products that are out there today. We saw an opportunity to apply the strengths of Horizon to a category where we saw an opportunity for great tasting products. With Horizon Organic cheese as a main ingredient in our mac & cheese it gives us a really nice point of difference.” The dry packaged dinner category is big indeed. According to IRI, a Chicago-based market research firm, category sales for the 52-weeks ended April 20 were $2.45 billion with unit sales of almost 798 million. Both were down slightly—about 2% each—with General Mills and its Betty Crocker Helper and Kraft the two biggest players. The two major players are adding line extensions and products, but new entrants are also creating excitement in the category. Excitement will likely build further once the cool fall weather sets in and consumers turn their attention to inexpensive, easy-to-prepare, hearty, stick-to-the-ribs meals. Officials at L. H. Hayward & Co. say that is exactly what consumers will get with their Camellia Brand Classic Cuisine line. Available in eight varieties—Cajun Dirty Rice, Jambalaya, Spicy Chicken Sausage & Lentil Soup Mix, Louisiana Bean Soup Mix, Slow Cooked Tomato & Herb White Beans, Cajun Creole Spice Red Beans and Rice, Chipotle Black Bean Soup Mix and Creole Chicken Red Beans with Rice Soup Mix—the line contains no artificial ingredients, is gluten-free, kosher and requires no more than four additional ingredients. An 18-ounce package has a suggested retail of $4.99 to $5.99. “These are all high-value flavor profiles that we’ve done a lot of research and development on to create something that is staying in alignment of producing our authentic Louisiana/New Orleans cuisine,” says Vince Hayward, CEO of Harahan, La.-based L.H. Hayward & Co. “We’re really proud with how these turned out. They are at home not only in gourmet sets, but in mass retail as well.” Hayward says the line can be prepared with a minimum number of ingredients and still retain a strong flavor profile. “We feel it is a competitive advantage to bring something to the table that is not only unique but user friendly,” he says. “Basically you just have to add your protein and a liquid. They are all-natural and gluten-free, so if you are looking to eat clean this is an easy way to do it.” The line will be merchandised in the dry soup, pasta and rice mix set, where it will be going head-to-head with Bear Creek Country Kitchens, a manufacturer of dry soup, pasta and rice mixes. Bear Creek recently launched a line of Macaroni & Cheese pasta mixes in Regular, Family Style and Bear-Shaped varieties, giving the brand greater presence year-round, say company officials. “Traditionally the dry soup category is highly driven by seasonal demand, with all leading brands seeing a slowing during the warmer weather months,” says Joe Villiano, senior brand manager for Bear Creek, which was recently acquired by Parsippany, N.J-based B&G Foods. “However, there is a loyal consumer who purchases Bear Creek soups year-round because it is a hearty and filling meal. Additionally, our pasta and rice mixes are not subject to the same seasonal demands as soups, with greater appeal throughout the entire year.” During the peak season, Bear Creek supports its lines with off-shelf merchandising, including corrugated displays and end caps, says Villiano. The popularity of the dry mix category has prompted B&G to develop a macaroni & cheese line for one of its other leading brands—Pirate’s Booty. “Mac & cheese is a family favorite, and Pirate’s Booty has been around for more than 20 years in the salty snack category,” says Eric Berniker, vice president, consumer engagement and innovation at B&G Foods. “We’ve always been a family favorite where moms and kids can agree, so this is targeted as another favorite for folks looking to upgrade their mac & cheese staple with a product that they can not only feel good about, but that tastes great and has a fun personality.” Initially available at Target, Kroger and Ahold-owned stores, the brand is gearing up for national distribution. It is available in four varieties: Mild Cheddar in Elbow Shape, Aged White Cheddar in Shells, Aged White Cheddar Elbows and Anchors & Cheese Aged White Cheddar in pirate shapes. “They are all made with organic pasta and have ‘better’ attributes, including no artificial flavors, colors or preservatives, a good source of protein and zero grams of trans fat per serving,” Berniker says. Pirate’s Booty is one of an increasing number of brands touting organic offerings. “Health and wellness is a trend that is here to stay and not going away,” Berniker says. “We wanted to provide a product moms will feel good about and trust, and organic wheat pasta is the right place to start.” Ferry says Horizon is looking to fill an organic niche in the packaged dinner category that has not been met by Kraft, Helper or other mainstream brands. “If you look at the category, the organic and better-for-you are the segments where you are seeing growth,” he says. “We’re excited about the potential of this business to really build on Horizon’s heritage.” The Horizon line is available in six varieties: USDA Certified Organic Mac & Cheese – Shells & White Cheddar Cheese and Macaroni & Mild Cheddar Cheese; and Made-with-Organic Pasta Cows & Mild Cheddar Cheese, Shells & White Cheddar Cheese, Macaroni & Mild Cheddar Cheese and SuperMac & Cheese – Macaroni & Mild Cheddar Cheese. The packaging clearly differentiates between the organic and made-with-organic offerings, which require at least 70% organic ingredients, Ferry says. “For us it was just a matter of wanting the organic message to be affordable to a broader range of consumers,” Ferry says. “The made-with-organics have a bit more attractive opening price point.” A leader in the organic and made-with-organic packaged dinner category is Annie’s, which is celebrating its 25th year. “We focus on just using simple real ingredients that would be found in your pantry at home and not artificial colors or flavors or things that come out of a lab,” says Sarah Bird, chief marking officer/chief mom officer, at Annie’s, based in Berkeley, Calif. Bird, who sits on the board of the Organic Trade Association, says that 80% of consumers are now buying organic and organic industry sales reached $35 billion, up 11% in the past year. “It is a wonderful growing spot in food. Consumers are looking for it because they have started to connect with what they eat to their overall wellness. They are looking for cleaner ingredient statements and more purity in food,” she says. In addition to its flagship white cheddar cheese and shells and bunny-shaped macaroni & cheese mixes, Annie’s is introducing a Mini Meal Kits line that is targeted to children, but also makes a great adult lunch option, Bird says. “About a year ago we launched a line of microwavable mac & cheese and that is the centerpiece of our Mini Meal Kits,” Bird says. The kits also contain an organic fruit snack and premium cookies or crackers. “We have three different SKUs and one of them is gluten-free.” When it comes to macaroni & cheese kits, the industry leader by far is Kraft Foods, which has more than 50 varieties available in its Blue Box, Shapes, Organic, Restaurant-Inspired, Cups and Deluxe lines. Its latest additions are Kraft Macaroni & Cheese Deluxe Original Cheddar & Garden Veggie, Sharp Cheddar & Jalapeno, and White Cheddar & Garlic & Herbs. “Boxed meals are continuing to evolve to meet changing consumer preferences by diversifying offerings,” says Jessica Gilbertson, senior associate brand manager for Kraft Mac & Cheese, at Kraft Foods, based in Northfield, Ill. “For example, in Kraft Mac & Cheese, we offer Organic and Whole Grain to satisfy consumers looking for a new take on an old favorite, we refresh our Shapes annually to ensure our properties are popular with consumers, we continue to look at more convenient offerings and we’re offering bolder flavors with different noodles in our Restaurant-Inspired and recipe-inspired lines.” This year’s Shapes include Nickelodeon Teenage Mutant Ninja Turtles and How to Train Your Dragon 2, to capitalize on popular TV shows and summer movies. Many retailers offer private label versions of macaroni & cheese. Topco Associates, for example, offers a broad assortment of sizes, flavors and cooking options under its private labels. “When we look at our data, we find core macaroni & cheese flavors in the 7.25-ounce singles, family size and multi-packs represent approximately 50% of the business in the boxed segment,” says Linda Severin, vice president of marketing, at Topco Associates, based in Skokie, Ill. They are great to feature on deal, such as a 10 for $10.00, or during back-to-school and holiday promotions, she says, adding that Topco’s Value Time/Clear Valu brands are sold at even lower price points. “Many of our members employ a multi-tier brand strategy for macaroni & cheese dinners, and for consumers seeking a good balance of value and quality, Topco offers great solutions,” she says. “In addition, Topco has developed great-tasting mac & cheese with the added benefits of organic and gluten-free varieties in its Full Circle brand.” General Mills continues to evolve its popular Helper line to encompass three types of protein: beef, chicken, tuna and four flavor camps, American Classics, Mexican, Italian and Asian. “We have responded to consumers’ desire for premium flavors with the introduction of Ultimate Helper, a line of eight SKUs that come with both a delicious sauce pouch and a savory blend of premium seasonings,” says Ally Delgado, associate marketing manager for Helper, at Minneapolis-based General Mills. “Consumer feedback has been fantastic. We are glad we have something in our portfolio that helps our consumers take weeknight dinners to the next level.” Extending  A helping hand With beef and pork prices skyrocketing, Chicken Helper has been expanded with Sweet & Sour Chicken, Crispy Parmesan Chicken and Crispy Cheddar Bacon Chicken. “Chicken is the number-one most consumed protein in America and is growing rapidly, particularly in the wake of rising ground beef prices,” Delgado says. General Mills has also introduced Helper Bold. “Consumers today are seeking adventure in their eating experiences, and one of the ways to do that is by turning up the heat,” Delgado says. The latest in the Helper Bold portfolio are Crispy Buffalo Chicken, Spicy Chipotle Chicken Enchilada and Firehouse Chili Macaroni. “Many consumers are telling us these are the best Helper flavors yet!” Delgado says. Packaged dinner manufacturers have always played off the fact that they are easy to prepare, but in today’s time-pressed society for some consumers that is just not good enough, prompting officials at Quaker Oats to develop Rice-A-Roni Quick Serve and Roni Cups. “While we know families love the taste of Rice-A-Roni, mom doesn’t always have the 20 minutes that it takes to prepare Roni,” says Lesley Butler, senior director of marketing at Quaker Foods North America, based in Chicago. Rice-A-Roni Quick Serve—available in Chicken, Beer and Cheddar & Broccoli—can be made in only six minutes by microwaving the rice, water and butter. Available in both Rice-A-Roni and Pasta Roni varieties, Roni Cups are portable, quick cook cups that consumers simply fill with water and microwave for 3½ minutes. “Roni cups are a compelling value, and mom can drop one in her purse to take to the office for lunch or enjoy as a snack on-the-go,” Butler says. While Rice-A-Roni and Pasta Roni are traditionally thought of as side dishes, more consumers are using them as holistic meal kits—a one-dish meal to which protein and/or vegetables can be added, Butler says. “Roni is a center store staple item, but it does very well on secondary displays,” Butler says. “Retailers that place Roni on end caps or our shippers see the greatest return with value incentives or communication that provides meal ideas or recipe inspiration. Placement of display vehicles in the meat/deli section or near the rotisserie chicken is also an effective tactic.”