HMR specialists rule

Prepared Foods, April, 1997

According to Datamonitor USA's Meal Solutions Survey, HMR specialists are expected to grow by as much as 19% by the year 2000 (see chart), while supermarkets will grow 16%. The prediction is fueled by the tremendous strides that continue to be made by HMR specialists, starting with forerunner Boston Market.

Supermarkets and their food processor partners will continue to peck away at the leaders. Data-monitor states it expects supermarkets to "rise to the challenge" of meal solutions. Tyson Foods, Springdale, Ark., recently threw its hat into the HMR ring with the introduction of its Gourmet Selections line (see pg. 35), and Sara Lee, which has launched its Sandwich Shoppes, has been discussing launching an HMR line at the supermarket level.

Meanwhile, the fast food business has "already peaked and is now reaching a plateau," states the survey. Key aspects of fast food, such as convenience and consistency, will "ensure the success of this genre, given that the business effectively adapts to the HMR market."

Unlike other channels that are concentrating on "the center-of-the-plate" food items, the growth within the HMR specialist category will apply to all the items that constitute meal options, such as main meal, side dish and soups and starters.

Both the main and side dish categories will grow by more than 20%, Datamonitor found. The soup and starter portion is also expected to grow by almost 16%. This speculation is grounded in the fact that the main focus of HMR specialists is to provide increased meal options for the consumer.