August 1st 2003 >> Source: Progressive
Grocer Magazine
Cool ideas in frozens
By Richard Turcsik
It's one of those sultry July nights when it's just
too hot to cook, so diners are streaming into ike, a popular
restaurant on Second Avenue in the East Village. The menu
includes such delicious fare as crispy coconut chicken with
curried rice and mango-roasted pepper salsa ($12); whole
wheat goat cheese ravioli with spinach, tomato, white wine,
and basil ($11); and spicy seared tuna in coconut-wasabi
sauce, and sauteed baby bok choy ($17).
But the most popular items on the menu are the classic fried
chicken, mashed potatoes, and sweet corn; the Angus beef Salisbury
steak with mushroom and onion gravy, green bean and carrot
medley, and mashed potatoes; and the roast carved turkey breast
with gravy, stuffing, and mashed potatoes with carrot and snap
peas medley. At $6 each, these entrees are a steal--courtesy
of Swanson. The restaurant lists them on the menu simply as "Classic
TV Dinners."
Yes, trendy Manhattanites have discovered what the heartland
has known for years: TV dinners make for mighty fine eating.
But judging from the glacier that is slowly taking over the
Swanson case at the neighboring Met Foodmarket, they still
haven't quite figured out that the same meal can be had at
home for about half the price.
TV dinners trace their roots back 50 years to 1953, when Swanson
introduced its first TV dinner—turkey, cornbread dressing,
and gravy; buttered peas; and sweet potatoes. The privately
held company was eventually acquired by Campbell Soup Co.,
and today is owned by Pinnacle Foods Corp. of Mountain Lakes,
N.J. Turkey remains among Swanson's bestsellers, along with
fried chicken and Salisbury steak. The brand is so much a part
of American culture that in 1986 its aluminum TV dinner tray
was inducted into the Smithsonian Institution. An even bigger
honor was bestowed in 1999, when Swanson received a star on
the Hollywood Walk of Fame.
In recent years TV dinners—manufacturers now prefer
the term "frozen meals"—have undergone a radical
change, bringing them out of the rabbit-ears era and into the
high-definition plasma screen age. Gone are the aluminum partitioned
trays and, in most instances, the brownie dessert. Swanson
eliminated desserts in 2001, after finding that most consumers
no longer follow a meal with dessert, preferring to eat it
later in the evening, and want a bigger portion of meat instead.
Frozen meal solutions
In are individually boxed family-size and single-serve microwavable
and/or oven-ready entrees featuring braised short ribs, chicken
Marsala, grilled white meat chicken with penne in basil cream
sauce, angel hair pasta and seafood, vegetable lasagna, and
side dishes including twice baked potatoes, sweet potato casserole,
and spinach soufflé.
" What we've seen in the evolution of the TV dinner is
a change from the traditional tray with compartments to frozen
meal solutions that are ready-to-bake full meals with a center
dish, as well as side items that are microwavable and/or oven-ready," says
Brian Frey, marketing assistant at Giant Eagle in Pittsburgh.
Look for low-carbohydrate offerings to be the next big trend.
At last month's Fancy Food Show in New York, one of the biggest
buzzes centered on the Mike's LowCarb Gourmet booth, where
the six-month-old company was promoting its line of low-carb
frozen entrees, including vegetable lasagna (14g net carbs),
roasted catfish (10g), and old-fashioned meatloaf (13g).
In a new twist on the TV dinner, buyers from the QVC television
shopping network stopped by the booth to investigate the possibility
of selling the line on the air. LowCarb Gourmet was also highlighted
by Good Morning America when it singled out about a dozen products
out of some 1,000 booths at the show, giving the brand about
a minute of airtime.
" We meet the requirements for all of the popular diets,
including Atkins," says Mike Caruana, president of Destin,
Fla.-based LowCarb Gourmet. The meals achieve low carbs by
reducing the amount of sugars and starches.
" We did extensive market research with focus groups
and found that more consumers hated the taste of diet meals,
which is one reason why they could not stay on a diet," says
Steve Goodman, director of sales and marketing. "We found
that men in particular found diet meals to not be very fulfilling,
so when we went to recipe development, we created a line that
keeps a certain amount of transparency between us and gourmet
or restaurant-quality food, so people don't know they're eating
diet food, even though they're on a diet."
The meals retail between $5.99 and $6.99, while the cheesecakes range from
$12.99 to $14.99, depending on the variety. "We have plans to further
develop both lines, add more SKUs and more flavors, and possibly go into other
aspects of low carb as well," Goodman says.
Oriental express
According to ACNielsen, for the 52 weeks ended May 17, 634.6
million frozen dinners were sold, a 7.1 percent increase over
the 592.5 million during the same period in 2002. Sales reached
$7.4 billion, a 2.7 percent increase over last year. Dominating
the field are ConAgra, the industry leader with its Banquet,
Marie Callender's, and Healthy Choice brands; Swanson; Nestlé's
Stouffer's; Heinz with Boston Market; and Luigino's Foods with
the Budget Gourmet and Michelina's. There are also scores of
regional, organic, and ethnic brands fighting for shelf space.
One of the fastest-growing subcategories is two-food Oriental
dishes, which exhibited a 21.4 percent unit increase to 17.3
million boxes, coming off a 95.5 percent increase in 2002.
The Oriental category is really set to take off, now that
Kahiki is introducing its Bowl & Roll Combo line. The 12-ounce
meals consist of a 9-ounce entree and three-ounce egg roll
packaged in a patented tray with a susceptor sleeve that crisps
the egg roll in the microwave. They retail for $3.99 and are
available in six SKUs: General Tso's Chicken, Sesame Orange
Chicken, Tropical Sweet & Sour Chicken, Teriyaki Chicken,
Beef & Broccoli, and Mango Chicken. "We also include
a little packet of sweet and sour sauce, which was our restaurant's
signature sauce," says Alan L. Hoover, s.v.p., sales and
marketing, of Columbus, Ohio-based Kahiki Foods, Inc.
Kahiki traces its roots back to 1961, when the Kahiki Supper
Club opened in Columbus. Famous for its egg rolls, the Polynesian
restaurant got into the frozen food business when executives
from Kroger's Columbus KMA suggested that owner Michael Tsao
manufacture the appetizers and sell them in Kroger stores.
The egg rolls were initially made in the basement of the restaurant,
named one of the Top 100 restaurants of the 20th century, as
well as the most beautiful Polynesian restaurant in the world,
thanks to its soaring peaked roof, actual rain forest, tropical
aquariums, carved tiki gods, and hula dancers. Tiki gods may
be able to garner dining awards, but they can't stop progress,
and on Aug. 26, 2000, the Kahiki Supper Club was torn down
to make way for another Walgreens.
Thankfully Kahiki lives on in the frozen food aisle. In September,
the company will move from a 22,000-square-foot factory to
a 119,000-square-foot facility in neighboring Gahanna, which
Hoover believes will be the largest Asian food manufacturing
facility under one roof in the United States. "As a small
company, it's always tough for us to get shelf space, but where
we feel we really have an edge is on the quality of our product
and our authenticity," Hoover says. "A large number
of our employees and our president are of Chinese descent.
You can't get more authentic than that."
Indian cuisine
Consumers seeking authentic Indian foods are asking for products
from Deep Foods, the manufacturer of the Deep, Curry Classics,
and Green Guru brands. Products include Chicken Curry, Kofta
Curry with Rice, Paneer Tikka Masala, and Channa Masala.
Deep was founded in 1977, providing mom-and-pop Indian stores
with snacks and ice creams, and eventually expanding to frozen
foods. A visit to the New York Fancy Food Show landed the Kings
Super Markets account, giving the company a foothold in the
traditional supermarket industry. Today the company has more
than 65 SKUs of frozen Indian dishes. "I would say 80
percent of our customers are still Indian," says Archie
Amin, v.p., marketing at Deep Foods in Union, N.J. "But
the mainstream stores are expanding their ethnic offerings
because of the growing Indian population and because the taste
profile for mainstream clients has changed somewhat. Everyone
has their Italian night and their Mexican night, and I think,
little by little, they're having an Indian night, as well."
Most Deep products are packaged in one-dish, microwavable boxes. "What
you want to do, if you want an Indian night, is take a bag of samosas, a box
of a chicken item, and a pilaf, and line the boxes up on the table and make
a buffet out of it," Amin says.
Deep's Green Guru line is all-natural vegetarian and vegan,
meaning it contains no animal byproducts. It's getting some
competition from Amy's Kitchen, which has just introduced Amy's
Indian Mattar Paneer.
" This is our first Indian meal, and it is just flying," says
Andy Berliner, president of Amy's Kitchens in Santa Rosa, Calif. "It
is one of the fastest-growing segments and we will be introducing
a second one in a few months."
Berliner says Amy's sales in mainstream supermarkets have been growing about
25 percent this year, and the company recently introduced several gluten-free
products, including rice macaroni and cheese, rice crust pizza, and rice pasta
garden vegetable lasagna.
Amy's has only one traditional multi-compartment offering,
its Country Dinner, a vegetarian Salisbury steak with potatoes,
string beans, and dessert. "With our entrees, we have
been focusing more on the bowls and on whole meals, which is
a main course and vegetables," Berliner says.
That's also been the focus of private label, which has received
a renewed emphasis of late. In February, Albertsons introduced
its new Essensia line of frozen main meal entrees and side
dishes. Packed in sleek sliver boxes, Essensia is made in Canada
and includes braised short ribs in a Polynesian sauce, fully
cooked hamburger patties, lasagna, ravioli, and side dishes
like twice baked stuffed potatoes and spinach soufflé.
Giant Eagle is marketing its frozen dinners under the Homemade
Helpings sub-brand. "The brand title is a play on words," Frey
says. "'Homemade' gives the connotation of quality ingredients,
and 'Helpings' can mean side dishes, as well as the convenience
of saving time in the kitchen to allow for more quality family
time."
The line includes center plate dishes, such as macaroni and
cheese, meatloaf, lasagna, and vegetable lasagna, as well as
complementary sides like spinach soufflé, sweet potato
casserole, and mashed potatoes. "We pick dishes and flavors
that are comfort food that consumers are used to and have either
been brought up with or have prepared in the past," Frey
says, adding that Giant Eagle works closely with its vendors
to create line extensions. About two to four new items are
added to the frozen line annually.
" The biggest trend is offering a full, convenient meal
so we can get back to the traditional setting where the family
will eat dinner together," Frey says. "You don't
have to spend time slaving over a hot stove. You just pop it
into the microwave and spend more time catching up with the
family."
Now that concept is sure to score blockbuster ratings.
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