Milling & Baking News Corporate Profiles - November 2013 - (Page 26)

Prepared Foods Prepared Foods Soup category simmers while frozen foods sales stay cool S uccesses came in one segment of the prepared foods category in 2013. The nation's two leading soup companies, Campbell Soup Co. and General Mills, Inc., reported increased sales. Questions, however, arose in another prepared foods segment. Talk of change warmed up as frozen foods sales stagnated and even declined in 2013. Product innovations involving nutrition soon may be on the way, as might brand divestitures from Nestle S.A. Sales figures from Information Resources, Inc., a Chicago-based market research firm, contained little good news for the frozen foods category. For the 52 weeks ended Sept. 8, U.S. retail sales for multi-serve frozen dinners/entrees were $2.1 billion, down 5.8% from the previous 52-week period. U.S. retail sales for single-serve frozen dinners/entrees were $4.5 billion, down 4.5%. The Nielsen Co., New York, also showed declining frozen foods sales in a "U.S. Retail & Buying Trends" report issued Oct. 18. Frozen foods sales in U.S. supermarkets dipped 1% for the 52 weeks ended Aug. 31 while all departments in total at U.S. supermarkets had sales growth of 1%. Back in May, an issue of "Facts, Figures & the Future," published by The Lempert Report/Consumer Insight, Inc., addressed the U.S. frozen foods category. "If frozen foods are to regain sales momentum that once built the aisle to its vast size, it will come from a marketing campaign that involves major players and is conceived to re-image the aisle for health," the issue of "Facts, Figures & the Future" said. "Ad Age reported that Wal-Mart, the American Frozen Food Institute and the Frozen Food Roundtable (a coalition of brand competitors such as ConAgra Foods, General Mills, H.J. Heinz, Kellogg and Nestle USA) could spend up to LEADING SINGLE-SERVE FROZEN dinner/entree vendors 1 2 3 4 5 6 7 8 9 Dollar sales Nestle USA, Inc. $1,455,118,000 ConAgra Foods, Inc. $1,314,656,000 Heinz North America $505,840,000 Bellisio Foods $259,586,900 Pinnacle Foods Group L.L.C. $206,635,500 Amy's Kitchen, Inc. $164,267,800 Overhill Farms, Inc. $105,475,300 Windsor Foods, Inc. $80,405,770 Atkins Nutritionals, Inc. $44,335,570 Private label $61,540,140 Total $4,534,940,000 % change from year ago -3.8% -8.5% -16.0% -2.4% -0.3% 10.7% 7.6% 6.2% NA -11.1% -4.5% $50 million on the campaign." The issue of "Facts, Figures & the Future" said consumers may perceive that frozen foods are high in sodium, fat or calories. "As c.p.g. (consumer product goods) reformulates with more flash-frozen vegetables and hand-made pastas, fewer preservatives and better ingredients overall, messaging should emphasize how frozen-food quality today often surpasses preconceived perceptions that may exist," the issue of "Facts, Figures & the Future" said. "A campaign that empowers key demographic groups such as boomers, millennials and Hispanics with this information would help solidify frozen's fortunes." Frozen foods category leader Nestle has two nutrition-associated brands in Jenny Craig and Lean Cuisine, but the brands' performances failed to please company executives in 2013. According to I.R.I., Nestle USA, Inc. in the multi-serve frozen dinners/entrees LEADING SINGLE-SERVE FROZEN dinner/entree brands 1 2 3 4 5 6 7 8 9 10 Dollar sales Stouffer's $567,755,600 Weight Watchers Smart Ones $404,332,000 Banquet $341,742,700 Marie Callender's $328,731,000 Stouffer's Lean Cuisine Culinary Collection $259,932,700 Stouffer's Lean Cuisine Simple Favorites $246,845,100 Healthy Choice $178,505,000 Hungry-Man $133,732,200 Healthy Choice Cafe Steamers $111,016,400 Stouffer's Lean Cuisine Chef's Pick $106,250,700 Total $4,534,940,000 % change from year ago 6.9% 0.3% -10.6% -4.3% 47.8% 1.5% -22.1% -3.5% 23.3% 88.5% -4.5% Data for 52 weeks ended Sept. 8, 2013 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 26 \ November 2013 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

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Milling & Baking News Corporate Profiles - November 2013