Refrigerated & Frozen Foods Retailer

As consumers skip restaurant meals, they indulge in home-baked bakery products.

Frozen bread and dough climbed 1.7% to $167.4 million in U.S. supermarkets for the 12 weeks ended March 22, according to Information Resources, Inc., the Chicago-based market research firm. Units dipped 4.0% (see chart). For the year, sales rose 6.1% to $682 million, with units up 0.1% to 250.8 million.

 

The slow economy makes value key, suppliers agree, noting that busy shoppers with tightened budgets want convenient, inexpensive products.

“Frozen bread products are filling at a fair cost, a great complement to almost any meal, especially now that more families are preparing meals at home,” says Schrade Radtke, senior marketing manager at T. Marzetti Company (614-846-2232), the Columbus, Ohio-based marketer of frozen garlic bread, dinner rolls and biscuits. He adds that weaker brands will be pressured by private label, especially those priced near store brands.

“Due to the recession, consumers are baking more at home and looking for value,” says Ken Farnsworth Jr., CEO of Rhodes Bake-N-Serv, Salt Lake City, Utah, (801-327-7400). There is also comfort appeal to “saving money and enjoying the aroma and flavor of home-baked bread," Farnsworth says.

 

Consumers will often accept premium prices if convenience is in the equation. “People are sacrificing some convenience for price; if you can give them both, it increases the compelling nature of the product,” says Doon Wintz, president, Wholly Wholesome, Chester, N.J. (908-879-0880), a subsidiary of The Run-A-Ton Group, Inc.

 

Health and wellness trends continue to drive strong interest in whole grain, natural, organic and unrefined breads. Despite the slow economy, Wintz believes natural and organic products will continue to grow more quickly than conventional foods. Families, in particular, are shifting from refined grain, “squishy” white breads to whole grain products as party of healthy lifestyles.

 

Widespread foodservice menu expansions include whole grain bread and translate to consumer acceptance and frozen aisle demand, Wintz explains, adding that “Consumers want to eat whole grains, but it does require modification of taste and expectation.”

 

The all natural, pita-like Wholly Wholesome Pocket Breads line in Wheat and White varieties is getting new attention from retailers following its March packaging update to pre-printed plastic. 

 

Wintz likens Pocket Bread to the hardy pita bread and notes 6-inch and 3-inch minis’ suitability for cold or Panini press sandwiches or as snacks to cut up and serve with dip. He says it has thickness, and doesn’t break apart.

T. Marzetti Company is rolling out new graphics for its Sister Schubert’s Frozen Rolls product line. The brand is also being supported by a major public relations campaign, Radtke says.

 

To keep sales growing, suppliers urge retailers to include comfort items that evoke tradition. Attention to mix and value-added items are helping drive sales. Rhodes is running high-value coupons in FSI’s to introduce its Warm-N-Serv Line, and running spots to build sales of frozen dough. 

 

Secondary displays before holidays are essential to avoid out of stocks, since more people bake when they have guests for holidays, Farnsworth says. He believes retailers with variety will continue to experience sales increases. “Frozen dough provides not only value, but aroma and delicious taste,” he adds, noting many consumers use frozen dough as a base for pizza, calzones, stromboli, bread sticks, and other baked items.