Milling & Baking News Corporate Profiles - October 2012 - (Page 24)

Prepared Foods Frozen meals Innovation may boost a stagnant category espite an essentially stagnant market for frozen meals, ConAgra Foods, Inc., Omaha, hopes to drive growth of its frozen business through its recent purchase of the P.F. Chang’s and Bertolli brands. The ConAgra developments come at a time when the market has been ﬂat to declining with nearly all dollar sales gains attributable to inﬂation or new products rather than growing consumer demand for existing products, according to Packaged Facts. Packaged Facts said the market for frozen dinners and entrees was at $6.1 billion in mass-market channels during the 52 weeks ended June 10, a decrease of 2.4% from the previous year. Packaged Facts said U.S. retail sales of all frozen foods (excluding ice cream, novelties, yogurt and beverages) at retail channels will reach $44 billion in 2012, up a slight 0.4% from the previous D year and dragged down by decreases in frozen dinners/entrees and frozen pizza. ConAgra acquired the P.F. Chang’s and Bertolli brands from Unilever North America in August for $265 million. The agreement included a license for the use of the Bertolli brand name on the frozen meals and the transfer of the Unilever license with P.F. Chang’s for the use of the P.F. Chang’s Home Menu brand. Gary Rodkin, chief executive ofﬁcer for ConAgra, said the brands represent about $300 million in annual sales, and are brands targeted at a higher income segment. As a result, the brands will bring the company new eating occasions. To support the brands, ConAgra is investing $100 million to expand a plant in Arkansas to manufacture the meals. In May, ConAgra also acquired Odom’s Tennessee Pride, a producer of frozen and refrigerated breakfast sandwiches and sausage with annual revenue of more than Leading single-serve frozen dinner/entree Banquet unit sales by brand 227,431,800 Stouffer's 149,123,300 Weight Watchers Smart Ones 133,293,600 Marie Callender's 83,980,220 Stouffer's Lean Cuisine 79,779,180 Simple Favorites 60,729,460 Healthy Choice Stouffer's Lean Cuisine 47,267,500 Culinary Collection Hungry-Man 36,803,080 Stouffer's Lean 34,771,070 Cuisine Cafe Cuisine Healthy Choice 33,292,580 Cafe Steamers Source: SymphonyIRI 52 weeks ended Aug. 12, 2012 $190 million, giving the company more exposure in the breakfast space. Mintel also offered views on the frozen food market in 2012. Mintel said pot pies are a fast-growing frozen product, rising LEADING SINGLE-SERVE FROZEN LEADING SINGLE-SERVE FROZEN dinner/entree vendors 1 2 3 4 5 6 7 8 9 Nestle USA, Inc. ConAgra Foods, Inc. Heinz Frozen Food Bellisio Foods Pinnacle Foods Corp. Amy’s Kitchen, Inc. Overhill Farms, Inc. Heinz USA Kashi Co. Private label Total Dollar sales $1,194,619,000 $992,349,600 $394,050,500 $172,104,100 $150,668,400 $126,987,800 $62,600,440 $39,877,170 $38,116,090 $63,707,220 $3,450,993,000 % change from year ago -2.0% -7.2% 1.2% 1.8% -3.4% 9.2% -14.9% 136.4% 11.6% 9.6% -1.0% dinner/entree brands 1 2 3 4 5 6 7 8 9 10 Dollar sales Stouffer’s $415,622,300 Weight Watchers Smart Ones $293,634,200 Banquet $233,304,400 Marie Callender’s $229,748,200 Stouffer’s Lean Cuisine Simple Favorites $178,703,800 Healthy Choice $137,812,700 Stouffer’s Lean Cuisine Culinary Collection $124,627,100 Hungry-Man $103,320,000 Stouffer’s Lean Cuisine Cafe Cuisine $94,350,460 Healthy Choice Cafe Steamers $91,016,200 Total $3,450,993,000 % change from year ago -5.6% 5.2% -12.4% 4.3% 46.5% 9.7% NA -13.6% -49.2% -37.0% -1.0% Data for 52 weeks ended Aug. 12, 2012 Total U.S. - Supermarkets, Drugstores and Mass Merchandisers excluding Wal-Mart Source: SymphonyIRI 24 \ October 2012 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2012

Milling & Baking News Corporate Profiles - October 2012