Frozen Food Category is Suddenly Hot

The Food Marketing Institute released a survey last week showing that 71% of respondents say they are cooking at home more and eating out less at restaurants.  Meanwhile, there’s evidence that consumers may be reaching for frozen dinners to “cook” at home more frequently than in the past.  Earlier this month, notes Brandweek.com, JP Morgan analyst Pablo Zuanic wrote a note to clients saying that Heinz’s entire frozen dinners platform – which includes Smart Ones and Boston Market – was up a “remarkable” 42% in the prior four weeks.

Some analysts who follow the segment say that Heinz’s success more likely stems from its recent innovations, such as a new wave of “steamer” products which offer better taste results than prior microwaveable dinners. 

Frozen pizza, with sales growth of 5.3% last year, is another frozen category bright spot, says Jamie Mattikow, Vice President for Kraft Pizza Company.  “We’re seeing a lot of growth in new products,” Mattikow said, adding that more growth was expected in the company’s Digiorno For One pizza line and its newest offering, Digiorno Ultimate Focaccia pizza products, which was introduced just this month.

Traffic at casual dining restaurants such as TGI Friday’s and Applebee’s fell 0.3% in the first quarter of 2008, reports Brandweek.com.