Food Business News - June 21, 2011 - (Page 50)

New Product Trends licensing Heinz leads the way in co-branding to drive growth in the single-serve market he H.J. Heinz Co., Pittsburgh, is finding strength in its T.G.I. Friday’s brand despite the fact the overall market for frozen meals declined during the recession — a true showing of the strength of co-branding. Consumers became so costconscious during the recession they often turned away from single-serve frozen meals, according to a September 2010 Frozen Meals report from Mintel International, Chicago. After all, cooking from scratch is almost always less expensive. Additionally, while the products are modestly priced, because these products do not produce leftovers many consumers consider them to be more expensive in the long-run. Mintel estimated sales of single-serve frozen meals reached $3,675 million in 2009, down more than 3% from the previous year, and came in at $3,468 million in 2010, down more than 5% from the previous year. David Browne, senior analyst with Mintel, said 52% of consumers prefer to cook from scratch. He said the multiserve frozen food segment is performing better than the single-serve market because consumers wanted leftovers during the recession. Single-serve T ALLISON GIBESON agibeson@sosland.com “These products are seen as not very good tasting and not premium quality,” Mr. Browne said. “Because of that, it’s actually led to some of these innovations … co-branding such as restaurant/retail brands is a viable option.” Mr. Browne said co-branding is effective, and the T.G.I. Friday’s option by Heinz is doing especially well in the current environment. Overall, he said it is a good strategic move on the part of the company to introduce such products. In 2008, Heinz announced it would open a frozen food production facility in Florence, S.C., and the facility is scheduled to come on line later this year. “This new factory aligns with our plans to aggressively grow the T.G.I. Friday’s branded line of products, which … are under way to becoming our next U.S. mega-brand,” said William R. Johnson, president and chief executive officer, during the Consumer Analyst Group of New York conference this past February. “Importantly, we plan to introduce the brand’s first line of premium singleserve entrees during the fourth quarter of this fiscal year, building on the success of its restaurant-quality snacks and multi-serve skillet meals. “This is our most important news in frozen since the introduction of Smart Ones. Our initial launch features nine single-serve s.k.u.s — five bag meals and four tray meals — all of which have been tested extensively and tested with great results. The new single-serve line features great-tasting varieties ranging from Sizzling Steak Fajitas and Grilled Chicken and Mac and Cheese to Prime Rib Stroganoff and Chicken and Broccoli Alfredo.” Mr. Browne said part of the reason such products are successful despite the overall climate of the market is due to the brand recognition the restaurants often have. “Consumers may be eating out less at some of these restaurants during the recession, and they recognize the brand and they have a certain trust with it,” he said. “But when they go to the supermarket and they see that name appearing somewhere else in the frozen aisle, they may be inclined to choose it as a trade-down from going out to eat, but they also believe the product has a certain quality that is appealing.” onAdditionally, he said contersumers are increasingly intercts ested in more premium products ter that have a perception of better quality and fresh taste. Lucinda Wisniewski, group vice-president of marketing and client solutions with the National Food Lab, Livermore, Calif., said in these products it is important to emphasize wholesomeness and natural ingredients, including more whole grains and vegetables. “Consumers really strive for variety in this category,” Ms. Wisniewski said. “You see this proliferation of flavor varieties. I think the challenge is coming out with something unique because it’s a pretty crowded category now.” Both Ms. Wisniewski and Mr. Browne said single-serve freshstable products such as meal kits as well as products in the perimeter of the grocery store are becoming an important part of the market. Mr. Browne said macaroni and cheese has especially been successful when it comes to meal kits. FBN 50 FOODBUSINESS NEWS ® June 21, 2011

Table of Contents for the Digital Edition of Food Business News - June 21, 2011

Food Business News - June 21, 2011
C.D.C. report fi nds increase in salmonella infections
General Mills sees ‘robust’ growth opportunities in global yogurt category
Following Jimmy
Contents
Web Contents
Editorial - German E.coli outbreak underscores need to fund F.S.M.A.
ConAgra acquires Marie Callender’s trademarks
Kraft investing to eradicate malnutrition
Perkins & Marie Callender’s fi les for bankruptcy
Snack food sales reach $64 billion in 2010, may top $77 billion by 2015
Recession seen triggering sharp drop in food product introductions
Cargill opens Latin American innovation center
John Bilbrey to helm at Hershey
ICL Performance to acquire Cosmocel Quimica
Sugar bull
Smithfield terminates Campofrio bid
Omega-3 food, beverage market grows 11%
Roark Capital ups presence in food industry
Calavo earnings decline due to higher costs
Mountaire Farms acquiring bankrupt poultry company
Diamond Foods returns to profi tability in third quarter
Nestle water efforts recognized
C.D.C. report points to increase in salmonella infections
Consumers await full impact of higher food prices
A difficult disappearing act
Innovation honored by the I.F.T.
Mintel: Functional foods ‘on life support’
Allergen labeling guidance needed
Creating a defi nition of sustainable nutrition
German E. coli outbreak may lead to changes
Chronic inflammation: The next opportunity?
ConAgra Mills unveils food safety system for flour
Finding fiber everywhere
Spicy fl avors moving beyond heat
Dairy Business News
Commission clears Lactalis acquisition of Parmalat
New texture system replaces milk fat in dairy products
Researchers target sodium redution in cheese
General Mills sees ‘robust’ growth opportunities in global yogurt category
Saputo fiscal year earnings rise 18%
New Danisco system targets artisan ice cream
Researchers target sodium reduction in cheese
Single-serve licensing
Quiznos adds three concepts to menu
Flax USA introduces Flaxmilk
Johnsonville Sausage adds chicken varieties
General Mills adds brownies to Fiber One line
Farley’s & Sathers updates Tree Top line
Ingredient Market Trends
Senate vote to end ethanol support seen as symbolic
Ingredient Markets
New container may hold two compatible products
Solbar names president of U.S. business
Sensient launches naturally-sourced colors in dry state
Comax develops fl avors for energy drinks
Puratos launches bake-stable chocolate fi llings
DSM completes U.S. innovation center
Sea salt assists in sodium reduction
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - June 21, 2011

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