Supermarket sales of frozen dessert/topping and pie dollars dipped by 1% in the 12-weeks ended May 18, but there were plenty of ups and downs within the categories, according to Information Resources Inc., the Chicago-based market research firm.
 Single-serve items, “healthy decadence” and convenience are still strong trends. But whipped toppings, the largest category, tumbled 4.6% in dollars as all leading brands took a hit. Frozen pies, the next largest, saw dollars dip by 1.0%, but double-digit gains were still reported by two of the top five brands – Marie Callender’s and Sara Lee Signature Selections.
The “frozen sweet goods-no cheesecakes” segment gained 3.9% in dollars and 3.8% in units, driven by strong showings from Pepperidge Farm Three Layer Cake (the category leader, up 7% in dollars) and private label.
Pepperidge Farm and private label both helped drive pie/pastry shells to a 1% dollar gain, as they gained 3.3% and 5.9% respectively. Frozen cheesecakes, down by 3.5% in dollars, still saw double-digit gains from The Father’s Table and private label. Sara Lee Bites, a new product launched in February, has skyrocketed to own more than 6% of the cheesecake category.  
“Consumers can keep frozen desserts on hand as ‘inventory’ without having to worry about the clock ticking (toward expiration),” says Travis Bautz, vp of product strategy for Bloomington, Minn.-based Schwan’s Consumer Brands North America (952-832-4300). “That’s always been the advantage of frozen over non-frozen,” he explains, “and it remains a key selling point.”
“Thaw-and-serve desserts in particular continue to enjoy strong growth,” adds sales and marketing vp Angela Rosenquist of Stockton, Calif.-based Boboli International (209-473-3507). After all, she asks, “What’s easier than taking a dessert out of the freezer and setting it on the counter?”

EAT 'EM ANYTIME

Over the past 20 years, the percent of evening meals that include dessert has dropped from more than 20% to 14-15%. So manufacturers are repositioning frozen desserts as snacks that can be eaten anytime, shifting more focus to single-serve and bite-size products that also meet growing consumer demand for portion-control.
“We found that consumers enjoy full-size cheesecake primarily during holidays and special occasions, but they tend not to be routine purchases,” confirms senior brand manager Tracy Ayres of Downers Grove, Ill.-based Sara Lee (630-598-6000), which rolled out a bite-size version of its flagship product in February. At just 20 calories each, “Sara Lee Cheesecake Bites allow consumers to indulge – but in small doses,” says Ayres, who calls the product “the first truly snackable item Sara Lee has introduced to the sweet goods category” (though plans for similar items are in works).  
Portion control is picking up steam. Schwan’s has introduced New York style cheesecake and fudge brownies in 100-calorie portions, reports Bautz. The company also offers single-slice pies under both its Edwards and Mrs. Smith’s brands, making it easy for consumers to sample a wide variety of flavors – a trend that started with restaurants offering three or four “shooter-size” portions of different desserts.
In fact, says vp of sales Chris Carpenter, one of the fastest growing SKUs at Kennesaw, Ga.-based Atlanta Cheesecake Co. (800-554-8891) is a quarter-cake “sampler” that features one slice each of four different cheesecake flavors, offering both portion control and variety.  
Few of the new single-serve desserts promise reduced calories. “Consumers still want a high quality, decadent dessert,” explains Michael Goldstein, vp of R&D and national sales at Freeport, N.Y.-based Love & Quiches (800-525-5251). The goal is good-tasting items with healthy ingredients. For example, says Goldstein, “We were able to work pomegranate into a chocolate cake.” That’s exactly the kind of product today’s consumers seem to prefer, he adds: Something they remember from their childhood – but with a slight twist that makes it new and exciting.
Another trend: Ready-to-bake frozen dessert batters similar to Duncan Hines’ new Oven Ready Homestyle Brownies. Only on the market for a couple of months, that product has already jumped to number-seven on the list of top-selling frozen sweet goods. If it continues to grow, watch for pre-formed frozen cookies, already a big seller on the school fundraiser circuit.

TWEAKING THE MIX

Vendors say retailers can boost category sales by tweaking assortments to better reflect how consumers are eating frozen desserts today. Bautz suggests giving more space to single-serves as well as ultra-convenient crème pies, which now represent a bigger portion of frozen pie sales than fruit pies. In fact, he reports, after several decades at the top, Mrs. Smith’s apple pie recently yielded the number-one frozen pie spot to Edward’s key lime pie.
Bautz also recommends grouping single-serve items behind one door to create a destination. “Single-serve products are intended for everyday consumption,” he explains. “But folks just don’t travel to the frozen dessert section on a regular basis.”
And, since today’s consumers are shopping more by occasion than anything else, “It might be interesting to group frozen desserts that way as well,” says Ayres. So instead of putting, say, whole pies with single-serve pies, retailers could try putting them alongside gallons of ice cream, frozen cakes and other full-size desserts. The single-serve pies could then be grouped with half-pints of ice cream, and the cheesecake bites could be merchandised with ice cream bites and other snacks.
Proper display is key. “Few categories are as impulse-driven as this one,” says Bautz. “And impulse categories really benefit from displays,” especially with a hot retail. But don’t get carried away with price cuts, warn manufacturers, especially during the holidays when shoppers aren’t averse to paying full price.
Carpenter says promo funds are better spent on demos than on TPRs. “People not thinking about desserts can absolutely be swayed by a taste,” he explains. But a dollar off a product they have no intention of buying doesn’t do much to spur sales. Moreover, frozen desserts is one of those categories where price isn’t nearly as important as quality, he notes.

BUNDLING PAYS

Consider meal deals to appeal to a broad range of consumers. “One account put our frozen pizzas and single-serve pies together in a bunker program at a single price point and saw triple-digit increases in sales of both,” reports Bautz. More important, the retailer reported a 20% increase in base volume of single-serve slices weeks after the promotion.
But just because products can’t be merchandised next to each other doesn’t mean you can’t promote them together. When strawberries are at their peak, advertise them with frozen pound cake and whipped cream. Or pair frozen fruit pies with vanilla ice cream,  frozen brownies with shelf-stable frosting, or frozen cake with coffee.