Appetite For Success

Frozen snacks and appetizers build sales in a mature category.

It's that time of year when people start to make lists of top food trends.

Foods like wasabi-flavored anything, savory popcorn and antioxidant-rich berries may have their places on such hot lists, but on an everyday level, one of the noteworthy and ongoing happenings is the continued popularity of snacking.

In a new report released in December, for example, the Bellevue, Wash.-based Hartman Group cited snacking or eating solo as a top trend for the past year, reporting that consumers eat an average of 2.53 snacks a day. As they snack, many consumers are pressing buttons on their microwaves or heating up their ovens. The frozen snack and appetizer market, estimated by Chicago-based research firm Mintel at $1.6 billion, has been growing even at a time when the overall frozen food market is stagnant, if not slightly declining. Mintel predicts moderate future growth through 2016.

Frozen snack and appetizer manufacturers are trying to turn a potential big chill in sales into a welcome thaw with new products. Many of those new products tap into shopper clamor for ethnic fare, whether driven by the authentic consumer or by shoppers who enjoy new and different flavors.

For example, the growing Hispanic population in the United States, along with a concurrent general interest in Mexican cuisine among other Americans, is driving R&D and sales of Mexican-style snacks and appetizers.

"Frozen Mexican food totals $1.1 billion, a 2.2 percent increase from a year ago," notes Rachel Cullen, president and CEO of Dinuba, Calif.-based Ruiz Food Products Inc., who notes that the company's El Monterey brand has a 32.7 percent share of frozen Mexican food. Ruiz has been busy in new product development to address growing interest in Mexican frozen snacks and appetizers, recently launching single-serve El Monterey Supreme and Classic Burritos.

Along with the appeal of Mexican flavors, Cullen says frozen snacks have done well in this subcategory because of the value and convenience factors. "In general, the frozen handheld food segment appeals to a younger, less affluent consumer base, making it accessible to many consumers," she points out, adding that the consumer base is likely to prepare fewer meals from scratch and eat more frozen handheld foods.

Another brand with new Mexican-style offerings is Houston-based Windsor Foods, which recently introduced Posada-Butcher Boy Antojitos Baja Shrimp Mini Empanadas, Pork Chili Verde Mini Empanadas and Adobo Steak Mini Empanadas.

New Asian-style offerings also reflect the evolution of frozen snacks and appetizers, as well as the power of leveraging a strong foodservice brand. Case in point: Omaha, Neb.-based ConAgra Foods recently launched a line of appetizers under its P.F. Chang's brand, including varieties of spring rolls and dumplings packaged in high-impact standup pouches. Windsor Foods, for its part, has done well with its Tai Pei Frozen Egg Rolls and Asian-Style Wraps.

A parallel trend (especially at peak diet and health resolution time around the New Year) is demand for better-for-you frozen snacks and appetizers.

Cullen agrees that even when snacking, consumers want myriad product attributes and benefits. "What's also interesting to note is that a high percentage of frozen handheld food consumers likely look for value-added properties in addition to convenience. For example, they most always indicate they look for products that have a high fiber or high protein content, or contain whole grains," she says. "This suggests that today's frozen handheld-food consumer wants much more from their products: full flavor; indulgent taste; an expectation that they still deliver in terms of added benefits, with nothing taken away; and affordability."

"Today's frozen handheld-food consumer wants much more from their products."

—Rachel Cullen, Ruiz Food Products Inc.