instore - Nov + Dec 2015 - (Page 46)

Whole pizzas account for over 50% of deli pizza sales. pizza cheeses by John Unrein N inety-three percent of Americans eat at least one pizza a month, according to Nielsen research, and they're consuming a large portion of them in the comfort of their own homes. Notably, the popularity of America's No. 1 meal choice translates into about $3 billion in annual sales for grocery retailers, whose offerings are split between the in-store deli and frozen foods departments. At the grocery store, pizza dynamics are changing as the effects of the recent recession dissipate. For example, when economic conditions are tight, some consumers would likely opt for frozen over deli pizza as a means of feeding a craving for pizza while being cost conscious. Since the recession, however, sales dynamics have shifted, spurring growth in the deli department and declines in the frozen aisles. Frozen pizza, however, has a much higher penetration rate than deli pizza does (55 percent vs. 15 percent, according to Nielsen). One innovative way to answer the call for greater pizza variety starts with cheese. The Wisconsin Milk Marketing Board offers one recipe for a Fall Harvest Pizza that calls for Wisconsin Colby-Monterey Jack cheese, along with crumbled Wisconsin blue cheese. Also, keep in mind the trend of consumers wanting bolder flavors and more snack foods. One creative idea for the instore deli is to make jalapeno cheese popper sticks, which can feature four types of cheeses. The Wisconsin Milk Marketing Board suggests a recipe with softened cream cheese, mozzarella and cheddar and, for a topping, grated parmesan. With an average price of $6.37, grocery deli pizza became a more affordable alternative to pizzerias during the recession. During the recession, deli pizza sales reflected consumer attitudes toward discretionary spending. When consumer confidence hit its low in 2011, sales of deli 46 * NOV + DEC 2015 * instore pizza sales skyrocketed. Despite a frugal mentality during the recession, pizza buyers were still willing to spend more for deli-prepared pizza than frozen pies. Deli pizza maintained a 30 percent price premium over frozen pizza and consistently gained sales over the past three years, while sales of frozen pizza declined. Now in a recovering economy, deli pizza sales are still rising while frozen pizza sales continue to decline. Sales aren't growing for all types of deli pizza, however. Shrinking household sizes are affecting growth of small sizes in deli pizza. Whole pizzas account for over 50 percent of deli pizza sales, but whole pizza sales declined 4 percent over the past three years. Deli pizza slices and calzones-both viable options as dinner for one-saw improved sales during the same time. Beyond the toppings, instore delis and manufacturers can do more to liven up the deli pizza category. According to a June 2014 report on pizza by Mintel, Chicago, pizza at the retail level experienced flat sales between 2009 and 2014. Frozen pizzas controlled 82% of the market in 2014, but Mintel forecasted those sales would decline into 2019. Analysts at Mintel attribute all of this to a recovering economy and growing consumer confidence. When consumers have the money, they will splurge for restaurant pizza rather than "settling" for store-bought. In order to gain some ground in sales, bakers have to get creative with new products to gain consumer attention. "We're also seeing category growth resulting from more experimentation with a variety of types and styles of pizza doughs, crusts and flatbreads," says Donna ReevesCollins, director of marketing for pizza and flatbreads, Rich Products Corp., Buffalo, NY. "Innovation continues to characterize the category and is being driven by authenticity, ethnic varieties and flavors from around the globe."

Table of Contents for the Digital Edition of instore - Nov + Dec 2015

instore - Nov + Dec 2015
Editor's Note - Channel Blurring
What's Ahead
Table of Contents
News - On Our Radar
Shopper Demographics - Cookies
Deli Prepared Foods
Smaller Households
Commissary Insider - Insight Insider
Preserving Color in Ready-To-Eat Meats
Big Gains for Ancient Grains
Proactive Defense
Deli & Cheese Slicers
Metal Detection
Deli Trends - Clean Eating
Adapting to Change - Foodservice Trends
Growing Movement - Free-form category explodes
Specialty in the Bakery - Artisan bread displays
Be Competitive - Lunchtime
Product Spotlight - Cookies, candies & sweets
Specialty Cheese - Pizza cheeses
Product Trends - First to Market
Product Showcase
Next Up/Ad Index

instore - Nov + Dec 2015