Frozen Food Aisle
F reezers are the straight-jackets of frozen commerce, greatly limiting facings no matter how large the store. Remarkably, despite a frosty economy and declining sales, grocers are making shelf space for signifi cant numbers of SKUs of frozen yogurt, tofu, gelato, sorbet and exotic-fl avored ice cream. No one can aff ord to add expensive freezers, this sleight of hand is possible because of an industrywide move from 64-ounce to 56- and 48-ounce bulk packaging and the introduction of 3.5 ounce single-serve containers. Th e new sizes were introduced to hold down unit prices in the $12.1 billion at-home ice cream and novelties market. Unit volume in the category declined 2.3 percent overall but a shift to private label has helped preserve profi ts. A 1.6 percent dollar sales increase in bulk ice cream earned grocers $4.5 billion in the 52 weeks ending May 16, as reported by Supermarket Guru Phil Lempert. Store brands gained 32.4 percent last year according to Th e Nielsen Company's measure of sales at Food, Drug and Mass Merchandiser stores, including Wal-Mart, (See Grocers Warm to Frozen Off erings, Pg. 9) Frozen foods buyer Kathy Sirriana at Sickles Market, a gourmet grocery in Little Silver, NJ, now has 100 ice cream SKUs in her freezer. She reports strong demand for gelato that is natural and locally produced. She stocks Blackwell's Organic, Ciao Bella, Capogiro Gelato Artisans and Adirondack Ice Cream. It's not all natural and organic, we search for best in category, says Sirriana, who has broadened her off erings to include soy-based, yogurt, frozen Greek yogurt and exotic ice cream fl avors like Black Mission Fig and Mango Champagne. Although category growth is stagnant, according to the market researchers at Mintel International, the market is very trend driven and those manufacturers able to move most quickly to associate themselves with the most compelling consumer trends of the day will likely see success. A Mintel analysis of 1,876 adult respondents to an Experian Simmons NCS/ NHCS online survey last spring shows nearly everyone (92 percent women and 89 percent men) had ice cream in the past year with 57 percent also eating frozen novelties and one third sorbet. Manufacturers are experimenting with a broad range of fl avors including savory options (salty chocolate or caramel, bacon, olive oil or avocado) which are preferred by 12 percent of gelato consumers. Two thirds of M ak e W ay for Gel ato S H R IN K IN G C O NT AIN E R SIZES INCREA SE FR EE Z ER F A C IN G S Na tu ral Fo od N et w or k Ed it or By Da n B ol to n FROZEN FOOD AISLE 16 Natural Food Network