Frozen Convenience Foods in the U.S.

CHAPTER 1: EXECUTIVE SUMMARY

Introduction
  Market Definition: Frozen Convenience Foods
    SymphonyIRI Product Categories
  Exclusions
  Report Methodology
Market Size and Composition
  Retail Sales Will Approach $19 Billion by 2015
  Figure 1-1: U.S. Retail Sales of Frozen Convenience Foods: 2005, 2010 and 2015 (in millions of dollars)
  SymphonyIRI-Tracked Sales Virtually Unchanged
  Supermarkets the No. 1 Retail Channel
Competitive Trends
  Food Conglomerates Dominate
  Important Niche Marketers
  Ruiz the Leading Marketer of Mexican-Style Specialties
  Marketers of Asian and Other International Specialties
  Amy’s Stands Out Among Natural, Organic, Vegetarian and Gluten-Free Marketers
  Restaurant Spin-Offs Have Long Frozen Food Tradition
  Regional Marketers Serve Regional Tastes
  A Dozen $175 Million Plus Marketers
  Nestlé, ConAgra and Kraft Control Almost Half the Market
  Bottom Tier Is Home of Entrepreneurial Niche Marketers
Marketing and New Product Trends
  New Product Launch Rate Slows with Recession
  A Vast Diversity of New Products
  Ethnic and Regional Specialties Crossover
Consumer Trends
  Though Time-Pressed, Most Americans Try to Eat Healthier
  Decline in Restaurant Traffic a Plus for Convenience Groceries
  72% of Americans Eat Frozen Prepared Foods
  Slight Uptick in Demand for Frozen Prepared Food
  Frozen Prepared Convenience Food Considered a Top Value
  Figure 1-2: Responses to Question, “Which Prepared Meal Items Provide a Better Value for the Dollar?”: Store-Made Hot, Store-Made Refrigerated, or Packaged Frozen, Fall 2010 (percent of U.S. adults)
  Retail Purchasing Patterns for Frozen Prepared Meal Items
  Two-Thirds of Households Use Frozen Pizza

CHAPTER 2: THE MARKET

Introduction
  Market Definition: Frozen Convenience Foods
    SymphonyIRI Product Categories
  Exclusions
  Report Methodology
  The Great Recession
Market Size and Composition
  Retail Sales at $16.8 Billion in 2010
  Table 2-1: U.S. Retail Sales of Frozen Convenience Foods, 2005-2010 (in millions of dollars)
  SymphonyIRI-Tracked Sales Virtually Unchanged
  Table 2-2: SymphonyIRI-Tracked Dollar Sales of Frozen Convenience Foods by Category: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
  Single-Serve Dinners/Entrees, Pizza Lead a Three-Tiered Pack
  Hand-Held Breakfast Entrees and Prepared Vegetable Categories Are Sales Growth Leaders
  A Tale of Two Markets
  Table 2-3: SymphonyIRI-Tracked Dollar Sales of Frozen Convenience Food Sales Growth Categories, 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
  Table 2-4: SymphonyIRI-Tracked Dollar Sales of Frozen Convenience Food Sales Decline Categories, 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
  Shifts in Category Share: Pizza Up/Single-Serve Down
  Table 2-5: Share of SymphonyIRI-Tracked Dollar Sales of Frozen Convenience Foods by Category, 52 Weeks Ending July 11, 2010 vs. Year-Ago (percent)
  Supermarkets the No. 1 Retail Channel
  Table 2-6: Share of U.S. Retail Sales of Frozen Convenience Foods: By Channel, 2007 vs. 2010 (percent)
  Winter Favors Sales of Frozen Convenience Foods
  Even Obscure Holidays Can Yield Results
Market Outlook
  Overall Market Dynamics
  Retail Channels Compete with Each Other and with Foodservice
    Case in Point: Legal Sea Foods Covers Frozen and Fresh Supermarket, Restaurant and Online Bases
    The Freshness of Frozen
  Fine Dining at the Supermarket
  Illustration 2-1: Carrabba’s Italian Grill in Publix Supermarket, Sarasota, Florida
  Illustration 2-2: Kroger In-store Bistro, Columbus, Ohio
  Effects of Recession
  Taking Dollars Away from Other Markets
  Fresh Prepared Vegetables Compete on Basis of Technological Advances
  Illustration 2-3: Birds Eye Frozen Vegetable Steamfresh Technology Web Page
  Illustration 2-4: “Frozen Food Master” Commenting on Green Giant’s Simply Steamed Frozen Vegetables
  Frozen Pizza Takes Share from Pizza Chains
    The Enemy Within
  Illustration 2-5: Papa Murphy’s Website Banner for Take ‘N’ Bake Pizza
  Hand-Held Breakfast Entrees Taking Hold
  Frozen Appetizers/Snacks Hold Dual Appeal
  Convenience Today = Faster
  Blurring Between Meals and Snacks
  Tapping into the Global Palate
  Natural, Organic and Even Vegan Foods Going Mainstream
  Illustration 2-6: Kashi Mayan Harvest Bake Frozen Meal Packaging (Back)
  Retail Sales Will Approach $19 Billion by 2015
  Table 2-7: Projected U.S. Retail Sales of Frozen Convenience Foods, 2010-2015 (in millions of dollars)

CHAPTER 3: COMPETITIVE OVERVIEW

Food Conglomerates Dominate
Important Niche Marketers
Ruiz the Leading Marketer of Mexican-Style Specialties
Marketers of Asian and Other International Specialties
Amy’s Stands Out Among Natural, Organic, Vegetarian and Gluten-Free Marketers
Premium vs. Value Positioning
Restaurant Spin-Offs Have Long Frozen Food Tradition
Regional Marketers Serve Regional Tastes
Some Marketers Focus on Non-Supermarket Channels
Some Items Retailed in both Frozen and Refrigerated Formats
Marketer and Brand Shares
  A Dozen $175 Million Plus Marketers
  Nestlé, ConAgra and Kraft Control Almost Half the Market
  Table 3-1: Top 12 Frozen Convenience Food Marketers and Private Label by SymphonyIRI-Tracked Sales and Market Share, 52 Weeks Ending July 11, 2010 (in millions of dollars)
  Bottom Tier Is Home of Entrepreneurial Niche Marketers
  Private Label Has Yet to Fully Capitalize on Recession
  Table 3-2: SymphonyIRI-Tracked Sales and Market Share of Private Label Frozen Convenience Food by Category: 52 Weeks Ending July 11, 2010 (in millions of dollars)
Single-Serve Dinners/Entrees
  Nestlé Leads Category
  Natural Food/Gluten-Free Specialist Amy’s Kitchen Comes on Strong
  Table 3-3: Top Ten Single-Serve Dinners/Entrees Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Pizza
  Kraft Pizza Unit Rolls Over Competition
  Schwan Finishes a Strong Second
  Table 3-4: Top Ten Pizza Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Hand-Held Non-Breakfast Entrees
  Nestlé Controls Category Despite Sales Drop
  Table 3-5: Top Ten Hand-Held on-Breakfast Entree Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Multi-Serve Dinners/Entrees
  Nestlé’s Stouffer’s Dominates
  Table 3-6: Top Ten Multi-Serve Dinners/Entrees Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Appetizers/Snack Rolls
  General Mills Overtakes Heinz
  Table 3-7: Top Ten Appetizers/Snack Rolls Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52
  Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Breakfast Entrees
  Jimmy Dean Is Category King
  Table 3-8: Top Ten Breakfast Entree Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Hand-Held Breakfast Entrees
  Jimmy Dean Also King
  Table 3-9: Top Ten Hand-Held Breakfast Entrees Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Pot Pies
  Three-Quarters of Sales Belong to ConAgra
  Table 3-10: Top Pot Pie Breakfast Entrees Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)
Prepared Vegetables
  Green Giant Towers Over Category
  Table 3-11: Prepared Vegetable Marketers and Their Brands by SymphonyIRI-Tracked Sales and Share: 52 Weeks Ending July 11, 2010 vs. Year-Ago (in millions of dollars)

CHAPTER 4: COMPETITOR PROFILES

Competitor Profile: Nestlé USA, Inc.
  Company Overview
  Nestlé Acquisition of Kraft Pizza Unit Consolidates Supremacy
    2006 Acquisition of Jenny Craig Gives Nestlé an Advantage in Unmonitored Outlets as Well
  Stouffer’s and Stouffer’s Lean Cuisine
  Corner Bistro Competes with Hot Pockets and Restaurants
    Stouffer’s Dinner Club Stretches Consumer Wallets While Compiling Data
  Illustration 4-1: Stouffer’s Dinner Club Banner Link from NestléUSA.com Website
  Illustration 4-2: Stouffer’s Dinner Club Banner Link from the Stouffers.com Website
    Easy Express Skillets Are Sizzling
  Illustration 4-3: Stouffer’s Easy Express Skillet Cheesy Meatball Rigatoni
  Hot Pockets on the Web
  Illustration 4-4: Wall Posting Dialog from Hot Pocket’s Facebook Page
  Hot Pockets Deal with Major League Gaming
    Mixing Gaming and Facebook
  Illustration 4-5: Facebook Comments on Hot Pockets National Gaming Day
    Hot Pockets: Just Another Facebook Buddy
  Illustration 4-6: Hot Pockets Facebook Fan Photo Posting and Comments (Sept. 2010)
    Hot Pockets Online Satire Is No Laughing Matter
Competitor Profile: Kraft Foods, Inc.
  Corporate Background
    Goodbye Pizza, Hello Cadbury
  South Beach Diet Brand Leaves Frozen Field
  Illustration 4-7: Kraft South Beach Products
  DiGiorno Is the Jewel in the Pizza Crown
  Recession Aids DiGiorno’s Fight with Pizza Chains
    Advertising Makes Targeting of Pizza Chains Crystal Clear
  California Pizza Kitchen: Suffering from Neglect, or the Recession?
  Jack’s Pizza Virtually Unchanged
    Tombstone Pizza Knows How to Work Facebook
Competitor Profile: ConAgra Foods, Inc
  Corporate Background
    No. 2 in Frozen Convenience Foods
  ConAgra Recasts Healthy Choice, Again
    Marie Callender’s: Still Cooking Away
  Banquet Reformulates and Holds Line with $1 Price Point
  Youngsters Bug Out on Kid Cuisine
Competitor Profile: The Schwan Food Company
  Corporate Background
  Illustration 4-8: Schwan’s Home Delivery Truck
  Pizza Is Schwan’s Cash Cow
  Red Baron: New Products and Hockey Mom Recognition
    Red Baron Squadron Shot Down
  Illustration 4-9: The Red Baron Pizza Squadron in Flight
  Schwan’s Yellow Trucks Go Green
  Schwan’s Asian Flagship Is Asian Sensations
Competitor Profile: General Mills
  Corporate Background
    General Mills’ Mission Statement Reflects Convenience Food
  Totino’s Is General Mills’ Largest Frozen Convenience Food Brand
    The Box Tops Program
  Illustration 4-10: Totino’s Double Box Tops Program “Get Involved” Website Banner
  Child Spokespersons Reinforce “Kid’s Most Favorite Thing” Positioning
  Illustration 4-11: Totino’s “Kid’s Most Favorite Thing” Television Spot (Screenshot)
    Totino’s: An Adult-Free Zone
  Green Giant Controls Prepared Vegetables Category
    Award-Winning Technology Gives Green Giant’s Fresh Steamers an Edge
  Just For One Line Courts Weight Watchers Consumers
  Birds Eye Coming on Strong

CHAPTER 5: MARKETING, NEW PRODUCT, AND RETAIL TRENDS

Marketing and New Product Trends
  New Product Launch Rate Slows with Recession
  Table 5-1: Number of U.S. Frozen Convenience Food Product Introductions, 2007-2010
  Table 5-2: Number of U.S. Frozen Convenience Food Product Introductions: By Category, 2007-2010
  A Vast Diversity of New Products
  Ethnic and Regional Specialties Crossover
  Table 5-3: Frozen Convenience Food Products Introduced Between October 1, 2009 and October 1, 2010: Brand, Product, and Number of SKUs
  The Top Package Tag/Label Claim: Quick
  Table 5-4: Top 20 Frozen Convenience Food Introductions by Number of Package Tags/Claims, 2007-2010 (Year-End October 1)
  Restaurant Quality at Home
    Stouffer’s Seeking Restaurant Mojo in Corner Bistro
    The Power of Packaging
  Light Saucing
  Packaging Form Versus Function/Cooking Process
  Marketing Gourmet/Superpremium During a Recession
    Cheaper Than Restaurant Fare
    General Mills & Unilever’s Chinese Takeout Menus
    General Mills Italian Restaurant Offering
    Targeting Consumers and Foodservice
  Natural and Organic Options Continue to Proliferate
  Table 5-5: U.S. Organic Food vs. Total Food Sales Growth and Penetration 2000-2009 (in millions)
  Table 5-6: Companies That Introduced Organic and/or Natural Frozen Convenience Products, October 2009-October 2010
      Packaged Prepared Foods Account for 14% of Organic Market
  Figure 5-1: U.S. Organic Food Sales by Product Type, 2009 (percent)
  Gluten-Free Frozen Convenience Foods
    What Is Gluten?
    Why a Gluten-Free Diet?
    Medical Opinion vs. Consumer Opinion
    Amy’s Leads the Pack in Therapeutic Foods and Info
  Illustration 5-1: “Special Diets” Page from Amy’s Website
    Amy’s Interactive Marketing Strategy
    Gluten-Free Frozen Convenience Food Takes on Healthy Halo
  Pizza: Thin Crust Is Hot
  Michelina’s Green Marketing
  The Local Foods Movement
    Informal Focus Group Reflects Packaged Facts’ 7 Aspects of Local Food Appeal
    Local Action in Frozen Convenience Foods
  Major Frozen Convenience Food Marketers Including Nestlé Embrace Low Sodium Trend
Retail Trends
Introduction
  Retail Distribution Methods
    Direct Delivery Advantages
    The Cost of Face-to-Face Business
    Advantages of Warehouse Delivery
    Smaller Marketers Work Through Brokers
    Frozen Convenience Food Also Shipped Direct to Consumers
  Trade Shows Introduce New Products to Market
  Types of Retail Channels
  Channel Blurring
  Focus on Supermarkets
    Natural/Organic Frozen Convenience Food Presents Placement Challenge
    Giant Eagle Takes Flexible Approach
  Focus on Small Marts: Fresh and Not So Easy
  Focus on Health & Natural Food Stores: Retailers Moving Mainstream
  Focus on Supercenters/Mass Merchandisers, and Warehouse Clubs
    Warehouse Clubs: A Party of Three
    Frozen Convenience Foods a Key to BJ’s Recent Success
    Warehouse Clubs Have Tradition of Alternative Frozen Convenience Food
  Focus on Vending: Downsized Workforce Halts Growth
    Vending Machines Benefit from Brand Recognition
  E-tailers and Mail Order
    Specialty E-tailers Have Advantages Over Brick-and-Mortar
  Table 5-7: Celiac Links & Gluten-Free Frozen Convenience Food Bestsellers from Gluten Free Mall.com
    Diet Centers Are Also E-tailers

CHAPTER 6: CONSUMER TRENDS

Introduction
  Methodology
  Though Time-Pressed, Most Americans Try to Eat Healthier
  Figure 6-1: Consumer Attitudes About Healthy Foods and Time Constraints, Spring 2010 (percent of U.S. adults)
  Decline in Restaurant Traffic a Plus for Convenience Groceries
  Figure 6-2: Consumer Usage of Restaurants vs. Cooking at Home, Summer 2010 (percent of U.S. adults)
  Table 6-1: Level of Agreement with Statement, “I Am Spending Less on Groceries These Days Because of the Economy,” Summer 2010 (percent of U.S. adults)
  NGA Survey Confirms Shift from Restaurants to Groceries
  Opportunities Remain to Make Gains at Expense of Restaurants
  Table 6-2: Responses to Question, “In Comparison to Right Now, How Much Money Do You Plan to Spend on Meals Eaten at Full-Service Restaurants During the Following 3 Months?” Summer 2010 (percent of U.S. adults)
  Table 6-3: Responses to Question, “In Comparison to Right Now, How Much Money Do You Plan to Spend on Meals Eaten at Fast-Food Restaurants During the Following 3 Months?” Summer 2010 (percent of U.S. adults)
  Table 6-4: Responses to Question, “In Comparison to Right Now, How Much Money Do You Plan to Spend on Takeout/Delivery/Drive-Thru Meals Eaten at Full-Service Restaurants During the Following 3 Months?” Summer 2010 (percent of U.S. adults)
  72% of Americans Eat Frozen Prepared Foods
  Figure 6-3: Responses To Question, “Have You Used Any Store-Made Hot Prepared Meal Items In The Last 3 Months?” Fall 2010 (percent of U.S. adults)
  Figure 6-4: Responses To Question, “Have You Used Any Store-Made Refrigerated Prepared Meal Items In The Last 3 Months?” Fall 2010 (percent of U.S. adults)
  Figure 6-5: Responses To Question, “Have You Used Any Packaged Frozen (Not Store-Made) Prepared Meal Items In The Last 3 Months?”Fall 2010 (percent of U.S. adults)
  Slight Uptick in Demand for Frozen Prepared Food
  Figure 6-6: Responses to Question, “Since The Recession Began, Has The Amount of Packaged Frozen Prepared Meal Items That You Use Decreased, Stayed About the Same, or Increased?” Fall 2010 (percent of U.S. adults)
  Consumers Who Are Eating More Frozen Food: What Are They Eating Less Of?
  Figure 6-7: Responses to Question, “Given That You Are Eating More Packaged Frozen Prepared Meal Items, Are You Doing Any Of The Following?” Fall 2010 (percent of U.S. adults)
  Taste of Store-Prepared Hot Food Preferred Over Frozen
  Figure 6-8: Responses to Question, “Which Prepared Meal Items Taste Better?”: Store-Made Hot, Store-Made Refrigerated, or Packaged Frozen Fall 2010 (percent of U.S. adults)
  Frozen Prepared Convenience Food Considered a Top Value
  Figure 6-9: Responses to Question, “Which Prepared Meal Items Provide a Better Value for the Dollar?”: Store-Made Hot, Store-Made Refrigerated, or Packaged Frozen, Fall 2010 (percent of U.S. adults)
  From The I Hate to Cook Book to Sandra Lee
  How Many Consumers Are Mixing and Matching?
  Table 6-5: Percent of Adults Who Have Eaten a Meal Composed Solely or Composed Partially of Store-Bought Frozen Prepared Food Items in the Last 3 Months: By Daypart Fall 2010 (percent of U.S. adults)
  Retail Purchasing Patterns for Frozen Prepared Meal Items
  Table 6-6: Where Have You Purchased Packaged Frozen Prepared Meal Items In The Past 3 Months? (percent of U.S. adults)
  What Percent of Consumers Often Eat Frozen Dinners?
  Table 6-7: Levels of Agreement/Disagreement with Statement, “I Often Eat Frozen Dinners,” 2009/10 (percent of U.S. adults)
  Downscale Singles Are Heavy Consumers of Frozen Dinners
  Table 6-8: Above-Average Demographics for Agreement with Statement: “I Often Eat Frozen Dinners,” 2009/10 (index among U.S. adults)
  Table 6-9: Below-Average Demographics for Agreement with Statement: “I Often Eat Frozen Dinners,” 2009/10 (index of U.S. adults)
  Attitudes on Nutritional Value of Frozen Dinners
  Table 6-10: Levels of Agreement/Disagreement with Statement, “Frozen Dinners Have Little Nutritional Value,” 2009/10 (percent of U.S. adults)
  Table 6-11: Above-Average Demographics for Disagreement with Statement: “Frozen Dinners Have Little Nutritional Value,” 2009/10 (index among U.S. adults)
  Table 6-12: Above-Average Demographics for Agreement with Statement: “Frozen Dinners Have Little Nutritional Value,” 2009/10 (index among U.S. adults)
  Two-Thirds of Households Use Frozen Pizza
  Table 6-13: Usage Levels for Frozen Pizzas, 2007/08 through 2009/10 (percent of U.S. households)
  Table 6-14: Usage Levels for Top Pizza Brands, 2007/08 through 2009/10 (percent of U.S. households)
  Over Half of Households Buy Frozen Dinners Regularly
  Table 6-15: Usage Levels for Frozen Complete Dinners, 2007/08 through 2009/10 (percent of U.S. households)
  Table 6-16: Usage Levels for Top Frozen Dinner Brands, 2007/08 through 2009/10 (percent of U.S. households)
  Table 6-17: Usage Levels for Top Frozen Dinner Brands, 2007/08 through 2009/10 (percent of U.S. households)
  46% of Households Use Frozen Hot Snacks
  Table 6-18: Usage Levels for Frozen Hot Snacks, 2007/08 through 2009/10 (percent of U.S. households)
  Table 6-19: Usage Levels for Top Frozen Hot Snack Brands, 2007/08 through 2009/10 (percent of U.S. households)
  One-Fourth of Households Use Frozen Breakfast Entrees/Sandwiches
  Table 6-20: Usage Levels for Frozen Breakfast Entrees/Sandwiches, 2007/08 through 2009/10 (percent of U.S. households)
  Table 6-21: Usage Levels for Top Frozen Breakfast Entree/Sandwich Brand Lines, 2007/08 through 2009/10 (percent of U.S. households)
  Motivations for Buying Ready-to-Eat and/or Heat-and-Eat Food from Food Stores or Convenience Stores
  Table 6-22: Reasons for Getting Ready-to-Eat and/or Heatand-Eat Food from a Grocery Store/Supermarket, 2009 (percent)
  Table 6-23: Reasons for Getting Ready-to-Eat and/or Heatand-Eat Food from a Convenience Store/Gas Station, 2009 (percent)
  Wegmans’ Survey Shows Customers Want Easy, Healthy and Affordable Meals

APPENDIX: ADDRESSES OF SELECTED MARKETERS AND RETAILERS