CSP Magazine

Foodservice: Frozen/Refrigerated Foods 2014

Where the Gains Are: Refrigerated

C-store sales, 52 weeks ending Dec. 29, 2013

C-store milk sales fell again in 2013, with unit sales of skim and low-fat off more than 8% and whole milk down 4.6%, according to IRI. Elsewhere in the dairy case, segments such as natural cheese, butter and sour cream saw modest increases. Yogurt unit sales leveled off after a nearly 11% jump in 2012, according to IRI figures.

In refrigerated meals, breakfast entrees posted a more than 4% jump in unit sales, while hand-held entrees fell more than 5%.

Refrigerated Dairy    
Dairy segmentC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Skim/low-fat milk$905.6-5.9%306.4-8.4%
Whole milk$597.0-2.2%207.1-4.6%
Flavored milk/eggnog/buttermilk$366.3-0.5%222.4-3.5%
Natural cheese$126.33.4%95.92.3%
Fresh eggs$77.61.3%37.7-1.3%
Creams/creamers$75.50.3%30.5-0.4%
Yogurt$62.91.5%40.20.7%
Milkshakes/nondairy drinks$17.3-14.5%9.5-16.5%
Butter/butter blends$15.03.8%3.92.6%
Sour cream$9.95.8%4.66.6%
Margarine/spreads$9.1-8.7%3.5-8.9%
Cottage cheese$6.6-9.8%2.8-13.1%
Cream cheese/cream cheese spread$5.73.2%2.0-1.5%
     
Refrigerated Entrées    
Hand-held non-breakfast entrées$714.3-1.2%220.7-5.3%
Breakfast entrées$255.86.3%113.04.2%
Lunches$111.1-2.5%36.3-3.1%
Salad/coleslaw$63.957.1%14.451.6%
Luncheon meats$29.1-5.6%11.1-10.4%
Breakfast meats$26.26.7%5.34.6%
Meat and refrigerated ham$25.4-9.6%14.1-7.5%
Side dishes$20.7-8.3%7.9-12.6%
Frankfurters$19.87.0%9.715.4%

Source: IRI


Distributor Data: Refrigerated and Frozen Shipments

Calendar year 2013

McLane shipments of frozen food rose in 2013 in terms of average shipments per store per week, with pizza, dinners, ice cream/novelties and other frozen items posting gains.

Packaged Deli Products   
SegmentAverage shipments per store per week (in dollars)Average shipments per store per week (dollar growth)PCYA
Lunch packs$12.30-$0.94-7.1%
Luncheon meat$2.52-$0.21-7.6%
Other packaged deli products$5.71$1.0923.6%
Total packaged
deli products
$20.53-$0.06-0.3%
    
Dairy   
Packaged cheese$11.87$0.020.2%
Eggs$6.40$1.9543.9%
Milk/milk product$5.15-$5.10-49.7%
Butter/margarine$1.43-$0.22-13.4%
Other dairy$7.72$1.4723.6%
Total dairy$32.59-$1.87-5.4%
    
Frozen Food   
Frozen pizza$14.64$1.6212.4%
Frozen dinners & entrées$6.59$1.4528.2%
Ice cream and novelties$2.90$0.176.2%
Other frozen foods$33.43$21.21173.5%
Total frozen foods$57.56$24.4473.8%

Source: McLane Co.

Natural-Cheese Brands

C-store sales, 52 weeks ending Dec. 29, 2013

C-store unit sales of natural cheese rose a little more than 2% in 2013, according to IRI, with each of the top five brands posting increases.

BrandC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Polly O string/stick cheese$20.10.9%22.12.7%
Sargento string/stick cheese$8.89.1%9.67.8%
Private-label string/
stick cheese
$8.212.4%7.112.2%
Kraft Cracker Barrel
string/stick cheese
$7.64.7%8.26.0%
Borden chunks$5.51.6%3.91.2%
Total (including brands
not shown)
$126.33.4%95.92.3%

Source: IRI


Market Share: Milk by Type

C-store sales, 52 weeks ending Dec. 29, 2013

Whole milk provided more than 31% of c-store milk sales in 2013, while low-fat and skim supplied 48%, according to IRI.

Source: IRI


Refrigerated Breakfast and Hand-Held Entrées

C-store sales, 52 weeks ending Dec. 29, 2013

Strong sales of private-label refrigerated breakfast entrées helped that segment grow unit sales by more than 4% in 2013, according to IRI, while private-label refrigerated hand-held entrées also gained volume.

Refrigerated Breakfast-Entrée Brands    
BrandC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Private label$172.217.4%78.620.5%
Deli Express$31.53.4%11.9-7.0%
Don Miguel$12.2-2.2%5.1-4.9%
Jimmy Dean$11.7-2.1%4.7-4.8%
Landshire$10.5-17.7%4.4-17.5%
Total (including brands not shown)$255.86.3%113.04.2%
     
Refrigerated Hand-Held Entrée Brands    
Private label$272.47.1%79.97.9%
Deli Express$136.5-7.2%43.0-13.1%
Landshire$55.8-19.0%18.6-21.3%
Don Miguel The Bomb$31.2-17.2%9.914.3%
Great American Deli$18.02.2%6.0-3.2%
Total (including brands not shown)$714.3-1.2%220.7-5.3%

Source: IRI

Where the Gains Are: Frozen

C-store sales, 52 weeks ending Dec. 29, 2013

C-store unit sales of frozen novelties fell more than 6% in 2013, while ice cream was off 1.4%, according to IRI. In frozen snacks and entrées, none of the biggest segments grew dollars and units, figures show.

Frozen Desserts    
SegmentC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Frozen novelties$675.9-3.1%361.7-6.1%
Ice cream$476.41.6%120.9-1.4%
Frozen yogurt/tofu$7.6-8.8%1.6-1.4%
Sherbet/sorbet/ices$5.82.9%2.22.5%
     
Frozen Snacks and Entrées    
Frozen hand-held entrées$184.6-1.5%94.38.5%
Frozen appetizers/snack rolls$140.5-0.6%115.5-4.7%
Frozen pizza$110.5-0.8%21.5-1.9%
Frozen breakfast food$94.1-2.8%43.20.2%
Single-serve frozen dinners/entrées$20.4-5.1%5.6-5.1%

Source: IRI


Frozen Dinner/Entrée Trends

C-store sales, 52 weeks ending Dec. 29, 2013

C-store sales of frozen dinner entrées reached nearly $185 million in 2013, led by Nestlé USA’s Hot Pockets brand of hand-held meals, according to IRI. Among multi- and single-serve frozen dinners, Nestlé’s Stouffer’s led the ranking. Sales in the final quarter of 2013 for this segment rose 1.1%, with units up more than 7%.

BrandC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
Hot Pockets$39.2-2.6%15.3-6.3%
Private label$26.510.4%16.99.4%
El Monterey$16.7-1.6%7.7-1.9%
Pierre Big AZ$16.55.9%4.86.3%
Chef Choice$13.5-9.5%6.6-9.7%
Total (including brands not shown)$184.6-1.5%94.38.5%

Source: IRI


Frozen-Dessert Trends

C-store sales, 52 weeks ending Dec. 29, 2013

In the frozen-novelty segment, No. 1 brand f’real—self-serve blended milkshakes and smoothies—posted a double-digit increase in dollar and unit sales, according to IRI. Among the top ice-cream brands, Ben & Jerry’s, Häagen-Dazs and private label grew both c-store dollar and unit sales in 2013, IRI reports.

Frozen-Novelty Brands    
BrandC-store sales
($ millions)
PCYAUnit sales
(millions)
PCYA
f’real$91.614.6%33.913.7%
Snickers$60.6-9.9%30.7-10.8%
Nestlé Drumstick$58.9-3.9%22.0-5.7%
Nestlé Tollhouse$29.01.2%9.9-0.1%
Blue Bell$28.4-7.7%34.5-7.6%
Häagen-Dazs$27.3-6.8%9.6-8.2%
Wells Blue Bunny$24.65.3%16.10.7%
Good Humor$23.0-12.1%13.3-13.4%
Nestlé$22.6-14.3%14.9-19.2%
Magnum$22.3-1.1%7.5-3.8%
Total (including brands not shown)$675.9-3.1%361.7-6.1%
     
Ice-Cream Brands    
Ben & Jerry’s$147.55.4%27.74.0%
Blue Bell$70.52.7%27.9-0.9%
Häagen-Dazs$50.75.0%10.34.5%
Breyers$25.8-10.8%6.5-16.2%
Private label$23.55.2%7.09.1%
Total (including brands not shown)$476.41.6%120.9-1.4%

Source: IRI


Cross-Category Opportunity

According to research by Management Science Associates that examined point-of-sale data from three midsized c-store chains, frozen foods were most often part of multi-category baskets. Indeed, 87% of transactions with frozen foods also included other categories, and more than one-half of frozen-food baskets included three or more categories. Frozen was also a relatively small part of the total basket.

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