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Brisk sales of frozen snacks show no signs of abating, as retailers better identify items that are in high demand by a core consumer -- the teenager."There are new items, but fewer stockkeeping units," said Terry Falkenham, frozen-food category manager for the Maritimes at Sobeys, Stellarton, Nova Scotia.While many adult varieties, such as Tex-Mex, have been launched over the last two years in the

Marryellen Lo Bosco

August 4, 1997

4 Min Read
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MARYELLEN LO BOSCO

Brisk sales of frozen snacks show no signs of abating, as retailers better identify items that are in high demand by a core consumer -- the teenager.

"There are new items, but fewer stockkeeping units," said Terry Falkenham, frozen-food category manager for the Maritimes at Sobeys, Stellarton, Nova Scotia.

While many adult varieties, such as Tex-Mex, have been launched over the last two years in the handheld pocket category, some manufacturers are now concentrating on what their younger customers prefer: meat and/or cheese, said Falkenham.

"Instead of having a whole range of adult tastes, it's getting back to be a teenager food," Falkenham said.

Handheld entrees are Sobeys' most popular snack items. A private-label sandwich called "Pizza Kins," marketed under the "Our Best" banner, is also doing very well, according to Falkenham.

Pillsbury Canada, Markham, Ontario, did a study a few years ago that showed teenagers prefer more standard pizza tastes, like cheese and pepperoni, in their handheld entrees, and that they want a lot of "stuff" inside, according to Peter Townsend, Pillsbury Canada's category manager for frozen snacks.

The company has responded by successfully marketing a re-engineered and redesigned Pillsbury Pop directly to teenagers. The program has been promoted with the help of a humorous, offbeat ad campaign that appeals to the target group and stresses how much filling is in the Pillsbury Pop over its competitors, said Falkenham. Pillsbury Pops are not available in the United States.

According to Townsend, Pillsbury is working with Sobeys on a category management plan for the chain's snack segment. The plan is expected to be completed sometime this year.

All the retailers SN polled are pleased with the snack category.

"In units, it's grown over 8%," said Falkenham. The snack category is increasing, both in sales and in items, at Big V Supermarkets, Florida, N.Y., said Mark Capicotto, director of frozen food and dairy/deli.

"Even though there are drop offs, there's a net gain. There are about two new lines of product a year, with about 10 items," he said.

Big V's most popular items are also handheld entrees, which he said are often eaten as an after-school snack. Similarly, pocket pouches are the No. 1 snack item for Food Giant Supermarkets, Sikeston, Mo., according to Tom Schmutz, division manager.

Both Falkenham and Capicotto attributed much of the category growth to the convenience of microwavable snacks, which can be easily prepared by children or teenagers.

David Gerdes, vice president of grocery and frozen at Jerry's Enterprises, Edina, Minn., cited after-school consumption as the largest use of snacks, followed by their use as hors d'oeuvres, and then as a replacement for dinner.

The total category of frozen handheld, nonbreakfast entrees had dollar sales of $745 million, up 4.6% from the previous period, according to Information Resources Inc., Chicago, for the 52-week period ended June 22. Unit sales were up 3.3% to 473 million.

A second category tracked by IRI is "frozen appetizers," which had dollar sales of $354 million, up 10.6% from the previous year. Unit sales were up 3.6% to 164 million.

Catering to snack consumers isn't always easy for retailers because the category is not well-defined. As a result, snacks often are merchandised in several different areas of the department.

Though it depends on the department size and each store's demographics, Big V generally does not merchandise snacks together.

"Like items tend to go together. The oddball player is pretzels, which comes just before the ice cream lineup, next to the dessert category," he said.

Handheld entrees are merchandised together at Big V, directly next to the pizza. Capicotto said that private-label pockets from Wakefern are currently under development.

At Sobeys, some snacks are grouped together in a six-door lineup with pizza. Pizza appears on top and snacks are on the bottom. Sobeys also puts certain hors d'oeuvres with like products and has a section for party foods.

Three other retailers -- Food Giant, Jerry's Enterprises and a small West Coast chain -- integrate or separate snacks according to the size of the store and/or frozen-food department.

Gerdes said that in some of his large stores, a separate snack section can take up to 20 feet and include "Anything from pizza rolls, frozen nachos, pocket sandwiches and hors d'oeuvres."

Snacks stay together, for the most part, in two doors, at Highland Park Markets, Glastonbury, Conn., according to Kevin Dukett, frozens and dairy manager.

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