Fat reigns supreme in frozen foods, so slow rollout is key for low-carb fare

Drug Store News, March 1, 2004 by Michelle L. Kirsche

While the wellness revolution is firing up low-carb food and beverage sales in chain drug stores, fat still reigns supreme in one area of the store: the freezer section, where better-for-you options live, but bad-for-you foods still sell.

It follows that research shows many consumers are not yet willing to give up the tastes they love, including frozen pizza and ice cream. And while the desire for low-carb foods is a major force in purchasing behavior over a number of product categories, even the most health-conscious consumers continue to buy a balanced mix of products.

Accordingly, attitudes toward health may influence, but do not dictate, purchasingbehavior--evidenced by indulgent products, which represent 50 percent or more of consumer purchases across the board, according to recent Information Resources Inc. data.

With that in mind, chain drug may want to take a crawl, walk, run approach to developing a low-carb frozen foods assortment, rather than a full-throttle rollout, which should be reserved for categories where low-carb has a much stronger foothold, including portable nutritional/wellness snacks or supplemental meals.

May's Drug Stores provides a good example of the tortoise approach versus the hare approach to low-carb food offerings in the freezer section, compared with snack food aisles. John Arundell, foodand beverage buyer for May s, said the chain s strongest-selling frozen food brands across the board are Swanson, Stouffer's, Lean Cuisine, Eggos, Hot Pockets and Totinos pizza.

Kraft Pizza Co. confirmed that frozen pizza is a popular seller in chain drug. Company spokeswoman Renee Zahrey said the DiGiorno and Tombstone brands are Kraft Pizza Co.'s two best sellers in drug stores. The Jack's brand also is gaining popularity in the Midwest.

"We are seeing a trend-up in the channel, particularly as more drug stores see the merits of frozen pizza and are adding freezer cases," Zahrey said. "The most popular choices are pepperoni, cheese, supreme and meat combinations. Those do well in drug store channels because consumers seek their favorites."

IRI data shows frozen pizza growth is driven in part by premium brands that add delivery quality to the convenience factor. Frozen pizza came in ninth out of 45 dinner solution categories, totaling $45.6 million in sales for the 52 weeks ended Oct. 5.

Healthied-up frozen pizza varieties also are gaining popularity. Boca is introducing a new, low-fat, crust-rising frozen pizza, which will fall under the healthier category, compared with other full-fat pizza, which fails under e indulgent category.

The healthier versus indulgent choices perhaps are best illustrated in frozen novelties. Changes from full-fat to low-fat or traditional to low-carb may be gradual with consumers continuing to purchase a high proportion of indulgent desserts balanced by more wellness choices, according to IRI.

At the same time, data show healthier, nutritional eating and weight-loss objectives are driving significant shopper shifts and growth in frozen aisles.

The data show Weight Watchers Smart Ones frozen novelties grew to $40 million in 2003, up 64.5percent. Silhouette frozen novelties hit $26 million, growing at a pace of 25.7 percent. Klondike's Slim-a-Bear, Healthy Choice and Slim Fast added an aggregate of $67 million to the category. In total, frozen novelties hit $116.5 million--5 percent growth over the 52 weeks ended Oct. 5, 2002, per IRI.

Other novelty items in stores now or soon to hit chain drug freezers include LeCarb frozen desserts; new flavors of Velvet Ice Cream Co. s low-carb, no-sugar line retailing for $5.59 to $5.79 for a 56-ounce container; and Kemps low-carb ice cream line, Carb Promise, retailing for a suggested $4.99 per half gallon.