Frozen in place: frozen food sales inch upward in 2004, but units fall as promotional spending, fails to move some big segments.(2004 YEAR IN REVIEW)

Frozen Food Age, April, 2005 by Wellman, David

Frozen food sales in supermarkets rose 0.7% in calender 2004, according to Chicago-based Information Resources Inc. But the improvement appears mostly due to price hikes, as unit movement declined nearly a percentage point over the same period. Suppliers worked to counter higher prices with a boost in promotional spending--up 0.4 percentage points over 2003--but consumers either didn't respond to the promotions, or pantry-loaded during the sales, depressing their purchasing in the category in the ensuing weeks.

However, price did not completely rule the year, as evidenced by some drops in private label sales. For example, ice cream sales were up 1.7% overall, but private label ice cream sales (the biggest private label category in the department) fell by...